CITY COUNCIL ACTION REQUEST
Department(s):
Finance
CEQA: Not a Project, File
No. Public Project Number
PP17-003,
Agreements/Contracts (New
or Amended) resulting in no
physical changes to the
environment
Coordination:
PW, CAO, CMO - Budget
Office
Dept. Approval:
/s/
Julia H. Cooper
Council District(s):
Citywide
CMO Approval:
8/17/2022
SUBJECT: ACTIONS RELATED TO THE PURCHASE ORDER FOR VEHICLE RENTAL
SERVICES
RECOMMENDATION:
Adopt a resolution authorizing the City Manager to:
1. Amend purchase order OP 60980 with EAN Services, LLC, dba Enterprise Rent-A-Car (St. Louis, MO) to increase the amount of total compensation by $200,000, for a revised maximum compensation not-to-exceed $510,000 for the period ending August 31, 2022; and
2. Execute additional purchase orders for ongoing rentals with EAN Services, LLC, dba Enterprise Rent-A-Car, leveraging the pricing from the State of California cooperative agreement through February 29, 2024, subject to the appropriation of funds.
Desired Outcome: To ensure that the City of San José (City) has adequate rental vehicles to meet various project and service requirements Citywide.
BASIS FOR RECOMMENDATION:
The Fleet Management Division of the Department of Public Works (Fleet) oversees Citywide equipment and vehicle rentals. Due to ongoing supply chain issues and manufacturer delays, staff have experienced significant delays in new equipment purchases, vehicle deliveries, and part deliveries, thereby affecting City Fleet availability. Rental vehicles are utilized to minimize operational impact for various City departments and to provide essential services as required.
The City has been leveraging the pricing from the State of California cooperative agreement with EAN Services, LLC (contract number 5-20-99-24) for vehicle rentals. The State of California contract was competitively solicited, and the City use of this cooperative agreement is consistent with San José Municipal Code section 4.12.225.B.3, Public Agencies Purchases. Approval of this recommendation will ensure that the City has adequate rental vehicles to meet various project and service requirements Citywide.
Climate Smart San José: The recommendation in this memorandum has no effect on Climate Smart San José energy, water, or mobility goals.
Commission Recommendation/Input: There is no commission recommendation or input associated with this action.
This City Council item is consistent with the City’s 2022-2023 Proposed Operating Budget City Service Areas Delivery Framework: “To effectively develop, manage, and safeguard the City’s fiscal, physical, technological, and human resources to enable and enhance the delivery of City services and projects.” COST AND FUNDING SOURCE:
Services provided under this purchase order are managed by the Department of Public Works on behalf of various City departments. Project scope, cost, and funding sources will vary. The Department of Public Works will pay the vendor and charge departments directly for services provided.
FOR QUESTIONS CONTACT: Julia H. Cooper, Director of Finance at (408) 535-7011 or [email protected].
COUNCIL AGENDA: 8/30/2022
FILE: 22-1278
ITEM: 2.9