Title
Transportation Department recommending Chairman be authorized to sign the Master Rental Agreement AGMT 07-1618 with Holt of California in an amount not to exceed $90,000 for a term to expire February 28, 2011 for the rental of various equipment for said Department.
RECOMMENDED ACTION: Approve.
FUNDING: Road Fund.
Body
BUDGET SUMMARY:
Total Estimated Cost $90,000.00
FUNDING:
Budgeted $30,000.00
New Funding
Savings
Other ** $60,000
Total Funding Available $90,000.00
Change to Net County Cost $0.00
** to be included in subsequent year budgets
Fiscal Impact/Change to Net County Cost:
Based on prior usage of rental equipment and anticipated needs for future rentals, it is estimated that $30,000 of the contract amount will be used each year for the next three years. Sufficient funding for equipment rental is included in the Road Fund budget for fiscal year 2007/2008 and will be included in the proposed budgets for the ensuing fiscal years. There is no net County cost.
Background:
The Department of Transportation Maintenance Division rents equipment when County-owned equipment is out of service, when it is more cost effective to rent equipment than to own it, or when efficiency of road maintenance work is increased by adding more equipment to an operation.
Agreements have been established with several vendors to facilitate rental of equipment. They are blanket agreements with not to exceed dollar amounts that are used to rent equipment as necessary for operations. The Department has had a blanket agreement for equipment rental with Holt of California since July 1, 2002, which has been amended four times. The current agreement with Holt of California expires February 28, 2008. Your Board's approval of a new agreement with Holt of California using the County's standard form rental equipment agreement is submitted here for approval.
Reason for Recommendation:
The ability to rent equipment provides the Department with the flexib...
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