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HomeMy WebLinkAboutItem 18 - Amend Contracts for Equipment Rentals Public Works Agency https://www.santa-ana.org/pw Item # 18 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 7, 2023 TOPIC: Amend Blanket Order Contract for Equipment Rentals AGENDA TITLE Amend Blanket Order Contracts for Equipment Rentals with Sunbelt Rentals, United Rentals, and Herc Rentals for a Revised Total Amount not to Exceed $2,550,000 (Specification No. 22-045) (General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an amendment to the Blanket Order Contracts for equipment rentals to increase the annual aggregate amount by $290,000, for a revised total annual amount not to exceed $568,000, and a total contract amount not to exceed $2,550,000 for the remainder of the current term expiring April 19, 2024, and three remaining one-year renewal periods, subject to non-substantive changes approved by the City Manager and City Attorney. GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION The Public Works Agency’s (PWA) Water Resources Division oversees and maintains the daily operations of the City’s water and sanitary sewer systems and associated facilities, while PWA Parks, Fleet, and Facilities Division is responsible for the maintenance and repair of the City parks and trails. Overall, PWA relies on rental services to provide the necessary equipment to assist with operations and special projects. The Santa Ana Police Department will use rental services to assist the Police Department’s Cannabis Enforcement team for various cases, as needed. On November 15, 2022, the City Council awarded a contract to Herc Rentals and amended contracts with Sunbelt Rentals and United Rentals for equipment rental services through the use of competitively bid cooperative contracts awarded by Sourcewell, a government organization. The need for rental equipment has increased due to the City’s continued increase in its projects at city facilities including reservoir inspections and improvements at Central Stores and Corporate Yard. Staff has reviewed equipment rental services history and has begun purchasing equipment that is critical to operations and as an effort to reduce rental equipment charges. Staff recommends increasing the blanket purchase order contract for equipment rentals by the amount of $290,000, for a revised annual amount not to exceed $568,000, for the remainder of the contract term, including any remaining renewal periods. Amend Contracts for Equipment Rentals November 7, 2023 Page 2 3 8 2 9 FISCAL IMPACT The total contract increase for the term including renewals is $1,160,000. Funding is available in the FY 23-24 budget and funding for subsequent fiscal years will be included in the proposed budgets for City Council consideration. The following table summarizes the funds budgeted and available for expenditure to deliver agreement services. Fiscal Year Accounting Unit- Account # Fund Description Accounting Unit, Account Description Amount 06017640- 63001 Water Water Utility Water Production and Supply, Miscellaneous Operating Expenses $240,000 2023-24 01117651- 62320 General Fund Park Maintenance Service Enhancement, Maintenance & Repair Buildings & Ground $50,000 Renewal Options 06017640- 63001 Water Water Utility Water Production and Supply, Miscellaneous Operating Expenses $240,000 2024-25 01117651- 62320 General Fund Park Maintenance Service Enhancement, Maintenance & Repair Buildings & Ground $50,000 06017640- 63001 Water Water Utility Water Production and Supply, Miscellaneous Operating Expenses $240,000 2025-26 01117651- 62320 General Fund Park Maintenance Service Enhancement, Maintenance & Repair Buildings & Ground $50,000 06017640- 63001 Water Water Utility Water Production and Supply, Miscellaneous Operating Expenses $240,000 2026-27 01117651- 62320 General Fund Park Maintenance Service Enhancement, Maintenance & Repair Buildings & Ground $50,000 Total: $ 1,160,000 Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Steven A. Mendoza, Acting City Manager