City Council
Report
City Council Meeting: February 11, 2025
Agenda Item: 4.D
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Approval of First Modification to Agreement with Herc Rentals, Inc. for Heavy Duty Vehicle Rentals
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant environmental effects pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Authorize the City Manager to negotiate and execute a first modification to Agreement #4823 in an amount of $200,000 with Herc Rentals, Inc. for heavy duty construction vehicle rentals for the Public Works Department. The term of the contract will remain the same and will result in a five-year amended agreement with a new total amount not to exceed $450,000, with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica’s Water Resources Division operates a fleet of work trucks and heavy construction vehicles, which are used in the maintenance, repair and replacement of the City’s water and wastewater infrastructure. While these vehicles are critical to the City’s ongoing operations to maintain reliable water and wastewater services, they require routine maintenance as they are heavily used in construction activities and can often be out of service for extended periods while they are being repaired. The Water Resources Division contracts for as-needed heavy-duty work trucks and construction vehicle rentals in the event that City-owned fleet equipment is not available. Staff recommends increasing the current Agreement #4823 by an amount of $200,000, for a new five-year total not to exceed $450,000 for as-needed heavy-duty construction vehicle rentals to support water and wastewater operations. 2 of 3
Discussion
The City operates and maintains a fleet of heavy-duty work trucks and construction vehicles that are used daily in the maintenance, repair, and replacement of the City’s water and wastewater infrastructure. Due to long service times needed to maintain these vehicles and supply chain delays in replacement of aging City-owned fleet vehicles that are critical to water and wastewater operations, the Water Resources Division entered into an agreement with Herc Rentals, Inc. for as-needed heavy duty construction vehicle rentals in October 2021.
In March 2021, the City’s Water Resources Division issued Request for Bids #12200032 to solicit heavy-duty work trucks and construction vehicle rental services. Staff reviewed the sole bid received and recommended awarding a five-year agreement to Herc Rentals, Inc. based on price and ability to provide the required equipment. The contract was executed in the amount of $250,000. An additional $200,000 is needed to continue rental of heavy-duty work trucks and construction vehicles that are critical to Water Resources operations as a result of extended supply chain delays in replacing aging City owned vehicles. The term will remain the same and the agreement will end June 30, 2026.
Environmental Review
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines. The action is covered by the commonsense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The rental of work trucks and heavy-duty construction vehicles is used only when City owned fleet vehicles are not in service and thus does not have an increased impact on the environment to operation and maintain the City’s water and wastewater infrastructure.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Water Fund to increase the 3 of 3
amount of contract #4823 with Herc Rentals, Inc. for heavy duty vehicle rentals.
Contract Modification Request
Agreement
#
Current
Authorized
Amount
FY 2024-25
Request
Amount
Future
Year(s)
Amount
Department
Account #
Total
Revised
Contract
Amount
4823 $250,000 $40,000 $160,000 50500001.550010 $450,000 Future year funding is contingent on Council budget approval.
Prepared By: Thomas Poon, Engineering Support Services Administrator Approved Forwarded to Council
Attachments:
A. FY 24-25 Oaks Initaitive (Herc)
B. FY 24-25 Levine Act Disclosure Form (Herc)
C. CT 4823 - Herc - Heavy Duty Vehicle Rentals (Original)