DATE: January 8, 2019
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Second Amendment to Agreement with Enterprise Rent-A-Car
RECOMMENDED ACTION:
TITLE
Approve and authorize the Chairman to execute a Second Amendment to Purchasing Agreement No. P-16-130-C with Enterprise Rent-A-Car, a subsidiary of EAN Services, LLC., to increase the maximum allowable amount for products and services of the County’s vehicle rental services, effective upon execution, extending the term through February 28, 2021 and increasing the maximum by $400,100 to a total of $500,000.
REPORT
Approval of the recommended action will increase the maximum agreement amount by $400,100, for the provision of rental vehicles through fleet services during required County vehicle servicing periods and the provision of rental vehicles to staff following air travel to out-of-County locations. In addition, the term of the Purchasing Agreement will be extended to expire February 28, 2021 if the two one-year optional extension periods are exercised. This amendment is necessary to fulfill vehicle needs by user departments. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, service requests for non-County owned rental vehicles would go unfulfilled.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. Approval of the recommended action will increase the maximum agreement cost to $500,000. The Internal Services Department recuperates Enterprise Rent-A-Car invoicing through pass-through billing to individual departments. Sufficient appropriations are included in the Department’s FY 2018-19 Fleet Org 8910 Adopted Budget.
DISCUSSION:
On March 23, 2016, the County utilized a vetted agreement through the State of California’s Department of General Services, Agreement #5159905, in conjunction with County Purchasing Agreement No. 16-130-C, for vehicle rental services through Enterprise Rent-A-Car. Purchasing Agreement No. 16-130-C was amended on February 28, 2018 to extend the Agreement for one year. Use of this Purchasing Agreement has exceeded anticipated use, due to the expansion of individual departments’ fleet vehicle needs and extra-County travel. Current County department rental expenditures have prompted this Purchasing Agreement conversion process.
Staff is recommending the current Purchasing Agreement with Enterprise Rent-A-Car be amended and converted into a Board Agreement, as the maximum amount allowable for services will now exceed the Purchasing Manager’s authority of $99,900. Approval of the recommended action will increase the maximum agreement amount by $400,100, for a new maximum potential five-year total cost of $500,000. This amount is necessary to be able to fulfill the increase in vehicle rental requests and temporary vehicle replacements by user departments. The term of the agreement will also be extended to expire February 28, 2021 if the two one-year optional extension periods are exercised. All other terms and conditions of the Agreement, as Amended will remain unchanged.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Second Amendment to Procurement Agreement No. P-16-130-C
On file with Clerk - First Amendment to Procurement Agreement No. P-16-130-C
On file with Clerk - Procurement Agreement No. P-16-130-C
CAO ANALYST:
Yussel Zalapa