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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: FEBRUARY 11, 2025
FROM: FINANCE DEPARTMENT
SUBJECT: APPROVE CITYWIDE MASTER AGREEMENTS FOR THE
RENTAL OF CONSTRUCTION SUPPORT VEHICLES,
EQUIPMENT AND TOOLS
ATTACHMENT (Y/N): YES ITEM # 03
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, approve Citywide Master Agreements for the rental of construction support vehicles, equipment and tools: Contract Number MA# 106-498338 with Sunbelt Rentals, Inc., in an annual amount not-to-exceed $700,000 plus a 30% contingency per year, effective until January 25, 2026 with one optional one-year renewal; Contract Number MA# 106-498337 with Herc Rentals Inc., in an annual amount not-to-exceed $300,000 plus a 30% contingency per year, effective until October 31, 2025 with one optional two-year renewal; and authorize the Purchasing Agent, or designee, to execute the agreements including optional renewals.
DISCUSSION:
The proposed contracts with Sunbelt Rentals, Inc. and Herc Rentals Inc. are essential to support the operational needs of the Public Works, Public Utilities, and Convention, Sports and Entertainment departments. These departments frequently require access to specialized construction equipment, such as lifts, trucks, and trailers, to complete a variety of projects across the City of Anaheim (City). The ability to rent equipment on an as-needed basis ensures operational flexibility and eliminates the significant costs associated with purchasing and maintaining such equipment. This approach allows the City to address short-term project demands, emergency repairs, and unplanned needs efficiently, while avoiding long-term storage and maintenance expenses. These contracts are vital to maintaining high service levels, minimizing downtime, and ensuring that the City’s infrastructure, facilities, and public spaces are well-maintained for residents and visitors.
Sunbelt Rentals, Inc. and Herc Rentals Inc. have been providing the City with the rental of construction support vehicles, equipment, and tools under existing master agreements.
As the current agreements are approaching their expiration date, the Central Purchasing Office is seeking approval to establish a Citywide Master Agreement (CMA) to streamline the procurement process for departments. This new CMA will encompass the rental needs of all City departments for future rentals of constructions support vehicles, Approve Citywide Master Agreements for the Rental of Construction Support Vehicles, Equipment and Tools February 11, 2025
equipment and tools. With a combined not-to-exceed amount of $1,000,000, this CMA will provide a more flexible, long-term solution, accommodating both expected increases in demand and the City’s need for timely access to a wide range of rental equipment.
A 30% contingency fee is essential to effectively accommodate potential urgent or emergency needs when utilizing specialized construction equipment for City projects.
Unforeseen circumstances, including weather-related damages, infrastructure failures, or immediate safety concerns, often require rapid deployment of equipment and resources.
This contingency allows the City to respond promptly without compromising public safety or project timelines, ensuring availability of the necessary equipment under time- sensitive conditions. By proactively allocating a contingency fee, the City can mitigate risks, avoid project delays, and maintain operational readiness in addressing unexpected challenges.
The City has no minimum obligation to utilize the CMA but will be able to rent the equipment and tools needed from the vendor that offers the most advantageous price and availability.
The proposed agreement is fully compliant with City Council Policy 4.0 and purchasing regulations, leveraging a cooperative agreement to ensure the best value for the City.
IMPACT ON BUDGET:
Sufficient funds are available in the Anaheim Public Utilities Department’s Restricted Utility Enterprise Fund, the Public Works Department Funds, and the Convention, Sports and Entertainment Department Fund for Fiscal Year 2024/25. Subsequent years’ renewals will be subject to Council approval of budget appropriations.
Respectfully submitted, Concurred by,
Kari Bouffard Deborah A. Moreno
Purchasing Agent Finance Director
Attachments:
1. Contract MA# 106-498338 with Sunbelt Rentals, Inc.
2. Contract MA# 106-498337 with Herc Rentals, Inc.