City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00972 9/5/2023 Consent Item 12.
Contract: Construction, Safety, and Other Rental Equipment [Published for 10-Day Review 8/23/2023]
File ID: 2023-00972
Location: Citywide
Recommendation: Pass a Motion: 1) approving the use of the cooperative agreement between the City of Charlotte and Herc Rentals, Inc. (Contract No. 2019000318) for equipment rentals and related products and services in an amount not to exceed $1,500,000 through September 23, 2025, or until the contract is no longer available for use; 2) authorizing the City Manager or the City Manager’s designee to execute purchases according to the agreement specified above provided that sufficient funds are available in the adopted budget for the applicable fiscal year.
Contact: Bobbie Small, Program Specialist, (916) 808-6711, [email protected]; Alison Kerstetter, Fleet Manager, (916) 808-1163, [email protected], Department of Public Works
Presenter: None.
Attachments:
1-Description/Analysis
2-Contract
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division has an ongoing requirement to provide rental equipment to all City departments, including construction equipment, pumps, generators, safety equipment and other goods and services. These rentals are used when the City does not have the equipment available, when the equipment is needed only for a short-term purpose, and to assist during supply chain delays and emergency events.
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.56 and Sacramento City Council Rules of Procedure, Chapter 7, Section E.2.d, which requires additional posting time for labor agreements and agreements greater than $1 million. This item shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on August 23, 2023, in compliance with the City Code.
File ID: 2023-00972 9/5/2023 Consent Item 12.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase of rental equipment and are not considered to be a project in accordance with Section 15378(b)(2) of the guidelines.
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: City operations do not require specific equipment all the time, therefore, the city rents equipment to avoid purchasing equipment that is not used on a consistent basis. Rental equipment is also used in times of emergencies. After reviewing the available purchase options, Fleet Management has determined that using the cooperative purchase agreement between US Communities and Herc Rentals, Inc. represents the most advantageous purchasing strategy. The contract was competitively bid, and the cooperative purchasing agency receives greater discounts from the manufacturer due to a higher purchase volume than the City would receive if issuing its own bid.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement method increases pricing competitiveness and lowers capital costs through volume buying. When comparing the administrative costs of procurement, staff considers product research, source selection, specifications, advertising, staff reports, awarding, protest, and administration of the contract.
The city has used both regional and national cooperative purchase agreements to complement its own contracting initiatives. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing also leverages internal and external resources to maximize cost savings opportunities for the city.
Financial Considerations: Purchases under the recommended cooperative purchase agreement will be made from the Department of Public Works Fiscal Year (FY) 2023/24 operating budget (Fleet Fund, Fund 6501) and charged to the operating budget of the customer. Sufficient funding is available in the Department’s FY2023/24 operating budget for purchases made through June 30, 2024. Purchases made after June 30, 2024, are subject to funding availability in the adopted budget of the applicable fiscal year.
File ID: 2023-00972 9/5/2023 Consent Item 12.
Local Business Enterprise (LBE): The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.