DATE: May 26, 2020
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: First Amendment to Agreement with EAN Services, LLC
RECOMMENDED ACTION:
TITLE
1. Approve and authorize the Chairman to execute a First Amendment to Agreement No. 19-012 with EAN Services, LLC, to modify and update the Enterprise Rent-A-Car vehicle rental rates, with no change to the term of March 1, 2016 to February 28, 2021, or compensation maximum of $500,000; and
2. Authorize the Director of the Internal Services Department/Chief Information Officer to retroactively execute rate adjustment documents with EAN Services, LLC, to March 2020.
REPORT
Approval of the recommended actions are necessary to ensure the County’s agreement is consistent with the terms and conditions of the State of California, Department of General Services (DGS) Agreement #5159905. On March 23, 2016, the County utilized a vetted agreement through the State for vehicle rental services through Enterprise Rent-A-Car (Enterprise), which now requires an amendment to the County’s agreement. In addition, approval will allow the Director of Internal Services Department to retroactively execute rate adjustments to March 2020. This item is countywide.
ALTERNATIVE ACTION:
There are no viable alternative actions; the agreement used for the rental services is tied to the State’s agreement. In addition, non-approval would result in the inability to fulfill service requests beyond the County-owned motor pool vehicles.
RETROACTIVE AGREEMENT:
This recommended amendment is retroactive to February 27, 2020, the effective date of DGS’s third amendment to their Agreement #5159905. The Department became aware of the amendment on February 2020.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum compensation for the agreement will remain unchanged at $500,000 for the term. The Internal Services Department - Fleet Services recovers all costs associated with usage of rental vehicles by chargebacks to user departments. Sufficient appropriations and estimated revenues are included in the Department’s Fleet Services Org 8910 FY 2019-20 Adopted Budget.
DISCUSSION:
On March 23, 2016, the County utilized a vetted State of California, Department of General Services Agreement (#5159905) to establish County Purchasing Agreement No. 16-130-C for vehicle rental services from Enterprise. The Purchasing Agreement was amended on February 28, 2018 to revise certain exhibits and extend the agreement for a year to February 28, 2019.
Due to increased usage of vehicle rental services, on January 8, 2019, the Board approved the conversion of Purchasing Agreement to Agreement No. 19-012, with a total maximum not to exceed $500,000. The conversion ensured there would not be an interruption to County services that require the use of vehicle rental services.
In February 2020, Enterprise informed the County that DGS had approved a rate increase to their agreement, and required the County to execute the same rate adjustment to Agreement No. 19-012.
Approval of the recommended actions would execute the rate adjustment and authorize the Department Director to retroactively execute the rate adjustment documents to March 2020. The average rental rate increase on all vehicle types is approximately 3%. All other terms and conditions of the agreement remain unchanged.
REFERENCE MATERIAL:
BAI #41, January 8, 2019
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - First Amendment to Agt. No. 19-012 with EAN Services, LLC
CAO ANALYST:
Sonia M. De La Rosa