Amended City Council Regular


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  ITEM 3.       
Meeting Date: 02/09/2021  
Submitted For: Michelle Woytenko
Department: Field Operations  

Subject
AUTHORIZATION TO ENTER INTO LINKING AGREEMENT WITH HERC RENTALS, INC. FOR CONSTRUCTION MACHINERY AND EQUIPMENT RENTAL OR LEASING SERVICES
Presented by: Michelle Woytenko, Director, Field Operations
Purpose and Recommended Action
This is a request for City Council to authorize the City Manager to enter into a Linking Agreement with HERC Rentals, Inc., for construction machinery and equipment rental or leasing services in an amount not to exceed $100,000 for the full term of the Agreement, and to authorize the City Manager to renew the agreement, at the City Manager’s discretion, for an additional three, one-year renewals. The initial term of the agreement is effective until August 31, 2021.
 
Background
The agreement with HERC Rentals, Inc. will be used for construction machinery and equipment rental or leasing services on city facilities on an as needed basis.
 
HERC Rentals Inc. was awarded a bid by Arizona State Office of Procurement Services to provide goods and services described in the Construction Machinery and Equipment Rental or Leasing Services Contract. Staff is requesting to utilize association of local municipalities, in which Glendale and Arizona State are members. Contract No. ADSPO19-213369 was awarded on September 3, 2018 with an initial term effective until August 31, 2021 and includes an option to renew the contract for an additional three, one-year renewals, allowing the contract to be extended through August 31, 2024.

Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.

 
Analysis
The agreement with HERC Rentals will be utilized for short term and/or emergency equipment rentals.  Use of a short term rental provides for the necessary equipment when it is needed without buying the equipment.  The contract may also be used for responses related to weather or other emergencies.
 
Community Benefit/Public Involvement
Maintenance and repair of the city facilities is necessary for the safety and comfort of employees who work at and individuals who visit these public facilities.
 
Cooperative purchasing typically produces the lowest possible volume prices and allows for the most effective use of available funding. The bids are publicly advertised an all Arizona firms have an opportunity to participate.
 

Fiscal Impact
Fiscal Year: FY2020-21
Fiscal Year Amount Requested: $100,000
Budgeted Y/N?: Y
Account: VARIOUS
Transfer Required? Y/N: N
If Yes, what account will be used?:
Budget and Financial Impacts:
Funding is available in the fiscal year 2020-21 Building Maintenance Reserve Fund, Operating and Maintenance, and in the Capital Improvement Plan Budgets. Expenditures with HERC Rentals, Inc. are not to exceed $100,000 for the entire term of the agreement. Expenditures beyond the current fiscal year are contingent on Council Budget approval.
 
Attachments
Linking Agreement


    

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