Title
Department of Transportation, Maintenance and Operations Division, recommending the Board approve and authorize the Chair to sign the First Amendment to Agreement for Services 286-O1811, Fenix Contract No. 2582 with Herc Rentals Inc. amending Exhibit A, Rate Schedule, with no increase to contract term or the not-to-exceed amount.
FUNDING: Local Discretionary Funds, SB1-RMRA (State), and Road Fund.
Body
DISCUSSION / BACKGROUND
Department of Transportation, Maintenance and Operations Division (Transportation), rents equipment when it would be more cost effective to rent than it would be to own the equipment such as equipment that is only required for a short period for specialized or emergency projects. Additionally, Transportation relies on rental equipment when Department-owned equipment is out of service.
On February 6, 2018, the Board approved two (2) on-call agreements for equipment rentals with Herc Rentals Inc. and Holt of California. Transportation continues to utilize both contracts. Herc Rentals recently reached out to Transportation and requested to amend their fee schedule. Transportation authorized the increase under Article III, Compensation of Agreement #286-O1811. The First Amendment only modifies Exhibit A, Rate Schedule. There is no increase to the contract term or the not-to-exceed amount of the Agreement.
ALTERNATIVES
The Board could choose to not approve the First Amendment; however, this would contradict language under Article III, Compensation of the Agreement which authorizes the vendor to update their fee schedule annually if approved by the County's Contract Administrator.
PRIOR BOARD ACTION
#18-1094
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel, Risk Management and Human Resources
CAO RECOMMENDATION / COMMENTS
It is recommended that the Board approve this item.
FINANCIAL IMPACT
There is no change to Net County Cost associated with the proposed action. Sufficient appropriations are included in the Fiscal Year 2019-20 adopted budget for equipment rental charges.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair's signature on two (2) originals of the First Amendment to Agreement for Services.
2) The Clerk of the Board will return one (1) fully-executed original of the First Amendment to Agreement for Services to the Chief Administrative Office, Procurement and Contracts Division, for further processing.
STRATEGIC PLAN COMPONENT
Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation