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Department of Transportation recommending the Board approve and authorize the Chair to sign the following on-call agreements for equipment rental:
1) Agreement 5189 with California Compaction Equipment Inc. in the not-to-exceed amount of $250,000 for a term beginning November 30, 2020 and expiring three (3) years thereafter;
2) Agreement 5187 with Herc Rentals Inc. in the not-to-exceed amount of $250,000, for a term beginning February 6, 2021 and expiring three years thereafter; and
2) Agreement 5188 with Holt of California in the not-to-exceed amount of $250,000, for a term beginning February 6, 2021 and expiring three years thereafter.
FUNDING: Road Fund/SB1 (50%), County Service Area 3 funds for snow removal equipment (45%), Tribe Funds (5%)
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DISCUSSION / BACKGROUND
The Department of Transportation's Maintenance and Operations unit (Maintenance) rents equipment when it would be more cost effective to rent than it would be to own the equipment, such as equipment which is 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.
In August 2020, at the request of Maintenance, the Procurement and Contracts Unit of the Chief Administrative Office (CAO) issued a Request for Proposal (RFP) for short-term equipment rental. Proposals were received from five (5) companies. After review of the proposals, Transportation decided to issue multiple on-call agreements with established firms that offer a wide selection of inventory in the local area.
The County Contracting Out Ordinance, Section 3.13.020, "Purpose", provides that the Board may enter into contracts for the performance of work by independent contractors under certain criteria. Since these three agreements are for the rental of equipment and are considered Goods and Materials, the Contracting Out requirements do not apply.
ALTERNATIVES
The Board could choose to not approve the Agreements. Maintenance would be unable, or have reduced capacity, to perform necessary road maintenance.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management have reviewed and approved the Agreements.
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
There is no change to net County cost associated with these Agreements. Maintenance has included rental equipment charges in the FY 2020-21 Adopted Budget.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair's signature on two (2) originals of each Agreement.
2) The Clerk of the Board will forward one (1) original of each Agreement to the CDS Contracts and Procurement Unit for further processing.
STRATEGIC PLAN COMPONENT
Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation