Title
Department of Transportation recommending the Board approve and authorize the Chair to sign the first amendment to master rental agreement for equipment rentals 273-O1811, Fenix Contract 2579 with Holt of California, increasing the not-to-exceed amount by $200,000 for a total not-to-exceed amount of $400,000 with no change to the term.
FUNDING: Local Discretionary Funds (Local) and SB1-RMRA (State).
Body
DISCUSSION / BACKGROUND
Department of Transportation, Maintenance and Operations Division (Maintenance) rents equipment when it would be more cost effective to rent rather than it would be to own the equipment. The rented equipment is generally only needed for short periods for specialized or emergency projects. Additionally, Maintenance relies on rental equipment when department-owned equipment is out of service. Types of equipment rentals include, but are not limited to: water trucks, compactors, bulldozers, excavators, paving rollers, sand blasting equipment, and power tool equipment.
The original rental agreement was approved on February 6, 2018, Legistar #18-0035, Item #12, with an initial not-to-exceed amount of $200,000 and a three-year-term. The County currently maintains three agreements for as-needed equipment rentals, utilizing whichever company offers the lowest price for a given rental. Since the approval of the agreement in February 2018, Maintenance has used approximately $170,000 of the contract with Holt since they have often provided rentals at the lowest cost. This leaves the contract with a balance of $30,000 for the remaining term. Maintenance has the need to continue equipment rentals for items that are not department-owned and will need the additional available funds on the Agreement to ensure Maintenance is able to get the necessary equipment to complete projects.
ALTERNATIVES
The Board could choose to not approve the amendment. Maintenance would be unable or limited to perform necessary road maintenance.
PRIOR BOARD ACTION
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