DATE:
February 1, 2022
TO:
Mayor and City Council Members
Chair and Board Members, Hesperia Water District
FROM:
Nils Bentsen, City Manager
BY:
Jeremy McDonald, Director of Public Works
Robert Worby, Fleet/Warehouse Supervisor
SUBJECT:
Increase to Contract with Apex Rentals
RECOMMENDED ACTION
It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to approve an amendment of $40,000 to the existing contract with Apex Rentals, for a total revised not-to-exceed amount of $90,000, for off-road heavy vehicles and equipment maintenance.
BACKGROUND
Preventative and corrective maintenance is required for the twenty-three (23) off-road heavy-duty vehicles and equipment in the fleet of which fifteen (15) are thirteen years and older.
ISSUES/ANALYSIS
On February 18, 2021, Public Works requested bids (RFB 2020-21-007) from local vendors located in the High Desert that could provide maintenance and a public bid opening was held on March 2, 2021. The City received two (2) bids, with Apex Rentals (Apex) of Hesperia deemed the lowest responsible/responsive bidder at $98.00 an hour with a 25% material / parts markup. A contract was executed during Fiscal Year (FY) 2020-21 for $15,000. The original agreement was increased by $35,000 as Apex held pricing during FY 2021-22. Unfortunately, as vehicles and equipment age, they start experiencing more frequent and expensive repairs. Although Apex offers a favorable labor rate and material markup, outdated spare parts are costly, resulting in higher than anticipated repair costs.
FISCAL IMPACT
Funding for fleet services has been included in the FY 2021-22 City and Water District’s Budgets.
ALTERNATIVE(S)
1. Provide alternative direction to staff.
ATTACHMENT(S)
None
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT