AGENDA REPORT
Meeting Date: October 20, 2026
Item Number:
To: Honorable Mayor & City Council
From: Daren Grilley, Assistant Director of Public Works/City Engineer Robert Sahagun, Street Services Manager
Subject: REQUEST FOR A ONE-TIME FISCAL YEAR 2026-27 GENERAL FUND APPROPRIATION OF $250,000 FOR STORM PREPARATION
AND EMERGENCY RESPONSE EQUIPMENT RENTALS; AND
WAIVE FORMAL BIDDING REQUIREMENTS PURSUANT TO
BEVERLY HILLS MUNICIPAL CODE SECTION 3-3-204(D); AND
APPROVE A FISCAL YEAR 2026-27 CHANGE PURCHASE ORDER
WITH PDQ ENTERPRISES, INC. IN THE AMOUNT OF $250,000,
INCREASING THE EXISTING $15,000 PURCHASE ORDER TO A
TOTAL NOT-TO-EXCEED AMOUNT OF $265,000; AND
AUTHORIZE THE CITY MANAGER OR DESIGNEE TO EXECUTE
RELATED RENTAL DOCUMENTS, AND TAKE THE
ADMINISTRATIVE ACTIONS NECESSARY TO IMPLEMENT THIS
AUTHORIZATION
Attachments: 1. Storm Preparedness Purchase Order Justification Memorandum, dated September 28, 2026
RECOMMENDATION
Staff recommends that the City Council approve a one-time General Fund appropriation of $250,000 for Fiscal Year 2026-27 for storm preparation and emergency response equipment rentals; waive competitive bidding requirements pursuant to Beverly Hills Municipal Code Section 3-3-204(D); approve a Fiscal Year 2026-27 change purchase order with PDQ Enterprises, Inc. in the amount of $250,000, increasing the existing $15,000 purchase order to a total not-to-exceed amount of $265,000; and authorize the City Manager or designee to execute related rental documents and take other administrative actions necessary to implement this authorization.
BEVERLY
HILLS
id
Meeting Date: October 20, 2026
INTRODUCTION
As part of its Fiscal Year 2026-27 storm preparedness efforts, the Public Works Department identified $15,000 within its existing operating budget to establish an initial purchase order with PDQ Enterprises, Inc. for vehicle and heavy-equipment rentals. The purchase order provides limited immediate rental capacity; however, no additional funding for this purpose has been identified within the Department's current operating budget.
Staff are requesting a one-time General Fund appropriation of $250,000 to increase the existing purchase order to a total not-to-exceed amount of $265,000. The additional capacity would allow Public Works to supplement City resources as needed for roadway clearance, debris removal, movement of barricades and palletized sandbags, and other storm preparation and response activities. The requested amount establishes the maximum purchasing authority and does not oblige the City to spend the full amount.
DISCUSSION
2026-27 Storm Preparedness
The National Oceanic and Atmospheric Administration's (NOAA) Climate Prediction Center (CPC) reports that El Niño is strengthening, with a greater than 90 percent chance of a very strong event during the Northern Hemisphere fall and winter of 2026-
27. CPC's current seasonal outlook also favors above-normal precipitation across Southern California during portions of the 2026-27 rainy season. Seasonal outlooks do not predict the timing or intensity of individual storms, and El Niño conditions do not guarantee specific rainfall amounts or impacts in Beverly Hills.
Because individual storm impacts cannot be determined far in advance, Public Works is preparing for a range of potential conditions while maintaining flexibility to adjust resources as forecasts and field conditions develop. Significant rainfall may result in localized flooding, fallen trees, mud and debris in roadways, street closures, drainagerelated issues, and other conditions requiring field response. Multiple incidents occurring simultaneously or over consecutive days may also require equipment beyond the City's immediately available resources.
Rental equipment supplements City-owned equipment when additional units or specialized equipment are needed. Equipment availability may also become limited regionally as significant storms approach, making advance purchasing authority beneficial for timely deployment.
Equipment Rental Capacity
The existing $15,000 purchase order provides limited rental capacity. Increasing the purchase order to $265,000 would allow Public Works to rent forklifts, loaders, skid steers, mini-excavators, dump trucks, and similar vehicles and heavy equipment based on operational needs.
Rental equipment may be used to move and deploy barricades, K-rail, palletized sandbags, and other storm-response materials; remove mud, sediment, and debris; clear roadways; maintain emergency access; and support other storm preparation and response activities.
Meeting Date: October 20, 2026
The specific equipment, quantity, delivery location, and rental period would be determined by forecast conditions and operational requirements. The not-to-exceed amount includes rental charges and related delivery, pickup, applicable taxes, and vendor fees.
PDQ Enterprises, Inc. has previously provided rental equipment to the City and is familiar with City facilities and delivery requirements. Maintaining an active purchase order allows staff to obtain and mobilize available equipment as conditions warrant.
Procurement Requirements and Bid Waiver
Beverly Hills Municipal Code Section 3-3-107 classifies purchases exceeding $100,000 as Level 4 purchases requiring City Council approval. Section 3-3-204 generally requires competitive written bidding for Level 4 purchases. Section 3-3-204(D), however, allows the City Council, by motion or resolution, to waive those procedures upon determining that compliance would be impractical or contrary to the City's best interests.
The proposed $250,000 increase would bring the total Fiscal Year 2026-27 purchase order with PDQ Enterprises, Inc. to a not-to-exceed amount of $265,000 and therefore requires City Council approval.
Staff recommend waiving competitive bidding because storm-related equipment needs will depend on forecast and field conditions, and the specific equipment, quantities, and rental periods cannot be reliably determined in advance. Additionally, regional demand may reduce equipment availability as significant storms approach. Establishing sufficient purchasing authority in advance would allow Public Works to secure available equipment based on operational needs without relying on emergency purchasing procedures after conditions develop. The rental rates provided by PDQ Enterprises, Inc. were analyzed and found to be better than or competitive with equipment rental rates available to the City under various cooperative agreements such as the Omnia Partners cooperative purchasing network. The vendor has also agreed to hold the current equipment rental pricing offered to the City until the end of the El Nino season (March/April of 2027), ensuring the pricing associated with the purchase order remains consistent.
This action does not declare an emergency or authorize expenditures outside the approved purchase order. Public Works will obtain rentals only as needed and within the authorized not-to-exceed amount.
FISCAL IMPACT
Public Works has committed $15,000 from its existing Fiscal Year 2026-27 operating budget to establish the current purchase order with PDQ Enterprises, Inc. No additional funding for this purpose has been identified within the Department's current operating budget. Public Works released approximately $418,000 in unused appropriated funds from FY 2025-26 back to the General Fund.
Approval of the recommended actions would appropriate $250,000 from the General Fund and authorize a corresponding $250,000 increase to the existing purchase order, resulting in a total not-to-exceed amount of $265,000 for Fiscal Year 2026-27.
Meeting Date: October 20, 2026
Actual expenditure will depend on operational needs, the equipment rented, and the duration of each rental. The not-to-exceed amount represents maximum purchasing authority; any amount not required will remain unspent. No state or federal reimbursement is assumed.
Jeff S. Muir,
Director of Finance
Michael V. Hensley,
Interim Director of Public Works
Finance Approval Approved By
Attachment 1
CITY OF BEVERLY HILLS
PUBLIC WORKS
MEMO FOR BIDDING EXCEPTION
TO: Tatiana Szerwinski, Assistant Director of Finance
FROM: Robert Sahagun, Street Services Bureau Manager
DATE: September 28, 2026
SUBJECT: PDQ Rentals for Storm Preparedness and Response AMOUNT: $15,000
The Street Services Bureau must be positioned to respond rapidly to anticipated El Niño-related storm impacts, including flooding, debris, downed trees, roadway obstructions, and impaired trafficcontrol devices. These conditions may require the immediate placement or repositioning of K-rail, barricades, and other heavy traffic-control equipment to protect the public, maintain emergency access, and support safe field operations. An initial $15,000 purchase order with PDQ Rentals represents all initial funding that could be assembled at this time and should be established before significant storms arrive. This initial amount will provide immediate, limited rental capacity while additional funding is identified. The purchase order will be increased as more funding is secured to support broader storm-response needs.
Reasons for Choosing PDQ Rentals:
1. Immediate Storm Response Capability:
PDQ Rentals offers equipment capable of safely handling the weight and dimensions of the City's K-rail, other traffic-control devices, palletized sandbags, and other storm impact mitigation supplies and equipment. An active purchase order will allow equipment to be mobilized promptly before, during, and after storm events, reducing delays in securing hazardous areas and reopening affected streets.
2. Equipment Availability During Peak Demand:
Major storms create simultaneous demand for forklifts and heavy equipment throughout the region. Establishing the initial purchase order now, rather than waiting until the full anticipated funding need is available, will improve the City's ability to obtain equipment before vendor inventories are committed elsewhere.
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3. Knowledge of City Requirements:
PDQ Rentals has demonstrated an understanding of the City's delivery, access, and heavy-haul vehicle requirements. This familiarity supports compliant mobilization without the avoidable delays associated with identifying and onboarding a vendor during an active storm response.
4. Proximity and Rapid Mobilization:
PDQ Rentals' proximity allows for faster delivery, equipment replacement, and response as field conditions change. Rapid access is essential when flooding, debris, or traffic control failures require immediate action to preserve public safety and access.
5. Demonstrated Responsiveness:
PDQ Rentals has previously provided responsive and professional service to the City.
Using a proven vendor through a pre-established purchase order will support continuity of operations and reduce administrative delays during time-sensitive storm work.
Establishing an initial $15,000 purchase order using all initial funding that could be secured at this time is a time-sensitive operational necessity. This amount does not represent the City's full anticipated storm-response need; it provides immediate capacity to begin renting equipment while additional funding is assembled. The purchase order will be increased as further funding is secured.
Waiting to establish the purchase order until the full amount is available could leave the City competing for limited equipment, delay roadway protection and debris-response activities, extend closures, and increase risk to the public and City infrastructure. Approval of the initial amount is therefore requested now so the City can act when forecasts, field conditions, or emergency operations require deployment.