Title
Department of Transportation recommending the Board approve and authorize the Chair to sign the First Amendment to Agreement for Services 5188 with Holt of California, increasing the not-to-exceed amount by $150,000 for a total not-to-exceed amount of $400,000, with no changes to the rates or the term of the contract, to provide equipment rentals.
FUNDING: Transit Occupancy Tax (50%) and Road Fund (50%).
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DISCUSSION / BACKGROUND
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 Department of Transportation, Maintenance and Operations Division (Maintenance) requested and received approval from the Board of Supervisors on November 17, 2020, to enter into agreement #5188, with Holt of California in the amount of $250,000, with a three-year term beginning on February 8, 2021 through February 5, 2024. Maintenance rents equipment when it is more cost effective than it would be to own, such as equipment that is only needed for short periods for specialized or emergency projects and snow removal. 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, loaders, grader, excavators, paving rollers, sand blasting equipment and power tool equipment.
Transportation is requesting a First Amendment to increase the not to exceed amount by $150,000 for a new total not-to-exceed amount of $400,000 to cover rentals necessary for Transportation operations through the remainder of the agreement term.
ALTERNATIVES
The Board could choose not to approve the First Amendment to Agreement. Transportation would then not be able to rent equipment that is determined to be necessary to complete road maintenance activities.
PRIOR BOARD ACTION
#20-0893, 11/17/2020
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Procurement and Contracts
CAO RECOMMENDATION / COMMENTS
Approve staff recommendation.
FINANCIAL IMPACT
Funding is available within the Department of Transportation Maintenance and Operations Division budget FY 2022-23. Funding for rentals in future fiscal years will be included in Transportation's annual budget proposals.
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.
2) The Clerk of the Board will return one (1) of the signed originals of the First Amendment to Agreement to Procurement and Contracts Division, for further processing.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Rafael Martinez, Director
Department of Transportation