TITLE
Recommendation to authorize City Manager, or designee, to increase Blanket Purchase Orders No. BPFM14000026 with HERC Rentals, Inc., of Carson, CA, and No. BPFM14000057 with United Rentals (North America), Inc., of Long Beach, CA, for the rental and delivery of heavy equipment, by $200,000, for a total aggregate amount not to exceed $400,000 for the period ending January 14, 2018. (Citywide)
DISCUSSION
City Council approval is requested to authorize the City Manager to execute amendments to add $200,000 to the current BPOs with HERC Rentals and United Rentals (North America) to cover the rental of heavy equipment needed through January 14, 2018 when the contracts expire.
On August 14, 2013, the City advertised for bids for the rental of heavy duty equipment. This equipment is needed to meet City operational needs when departments do not have equipment assigned, or when assigned units are down for repairs, taken out of service, or on order. Two vendors were selected to provide the required equipment, and purchase orders were issued for a two-year period starting January 15, 2014, with the option to renew the purchase orders for two additional one-year periods. The annual amount awarded was $200,000.
Currently, the Public Works, Technology and Innovation, and Parks, Recreation and Marine Departments are renting large aerial bucket trucks to assist with regular operations. These trucks are being used in place of vehicle enhancements or pending replacement vehicles that are on order. Additionally, Beach Maintenance regularly rents tractors and articulating dump trucks to assist with removal of debris and sand displacement during the winter storm season.
The Purchasing Division recently completed revisions to the prior bid specifications and advertised the new bid on September 12, 2017. The bid closed on October 3, 2017. The Fleet Services Bureau (Fleet Services) anticipates the new contract award will be presented to the City Council during the month of December 2017.
This matter was reviewed by Deputy City Attorney Monica J. Kilaita on October 9, 2017 and by Assistant Finance Director Lea Eriksen on October 4, 2017.
SUSTAINABILITY
All equipment rented from contracted vendors, for either short-term or long-term use, must comply with the State of California emissions standards for the fuel type, engine size, and equipment model year. Staff from Fleet Services carefully reviews the equipment available to ensure it complies with State of California standards.
TIMING CONSIDERATIONS
City Council action is requested on October 24, 2017, to allow for payment of invoices and expenditures through January 14, 2018.
FISCAL IMPACT
The total amount will not exceed $400,000 for the 12-month term of the contract. These costs are currently budgeted in Fleet Services Fund (IS 386) in the Financial Management Department (FM). Costs are billed to user departments through the monthly Fleet billing process.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER