TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 34822 with HERC Rentals, Inc., of Carson, CA; Contract No. 34823 with Sunbelt Rentals, of Fort Mill, SC; and, Contract No. 34860 with United Rentals (North America), of Long Beach, CA, for as-needed rental and delivery of heavy-duty equipment, to increase the annual contract amount by $400,000, for a revised annual aggregate amount of $850,000, and authorize a 15 percent contingency in the amount of $127,500, for a revised annual aggregate amount not to exceed $977,500, for the remaining term of the contracts. (Citywide)
DISCUSSION
On November 14, 2017, the City Council authorized contracts to three vendors, HERC Rentals, Inc., Sunbelt Rentals, and United Rentals (North America), for as-needed rental of heavy-duty equipment, in an annual aggregate amount of $450,000, with a 15 percent contingency of $67,500, for a total annual aggregate amount not to exceed $517,500. The contract is currently in the first year of the initial two-year term, with the option to renew for three additional one-year periods.
City Council authorization is requested to amend Contract No. 34822 with HERC Rentals, Inc., Contract No. 34823 with Sunbelt Rentals, and Contract No. 34860 with United Rentals, to increase the annual aggregate amount of the contracts by $400,000, and adjust the 15 percent contingency to $127,500, for a revised total annual aggregate amount not to exceed $977,500. The rental equipment is needed to meet operational needs citywide when equipment is not assigned or when assigned units are out of service or on order.
The Fleet Services Bureau coordinates rental of seasonal and special needs of heavy-duty equipment citywide. The Parks, Recreation and Marine Department is the primary user of temporary heavy-duty equipment and regularly rents tractors and articulating dump trucks to assist with removal of debris and sand displacement during the winter storm season. The Public Works Department also rents large aerial bucket trucks to assist with regular operations or special projects. These rental trucks are used in place of vehicle enhancements or pending replacement vehicles that are on order.
This matter was reviewed by Deputy City Attorney Amy R. Webber on July 23, 2018 and by Revenue Management Officer Geraldine Alejo on July 19, 2018.
SUSTAINABILITY
All equipment rented from contracted vendors must comply with the State of California emissions standards. 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 August 7, 2018, to ensure the contracts are amended expeditiously to allow for payment of invoices and expenditures through December 31, 2018.
FISCAL IMPACT
The revised annual amount of the three contracts is $850,000 with a 15 percent contingency of $127,500, for a total annual aggregate contract amount not to exceed $977,500. Contract expenses are budgeted in the Fleet Services Fund (IS 386) in the Financial Management Department (FM), and are reimbursed through the monthly billing process to multiple funds and departments. These contracts provide continued support to our local economy by assisting in the preservation of employment for 59 full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER