DATE: October 8, 2019
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Retroactive Amendment to Agreement with Quinn Company, Inc., dba Quinn Rental Services
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a retroactive First Amendment to Agreement No. 16-655 with Quinn Company Inc. dba Quinn Rental Services, for heavy equipment rental, to remove the annual maximum, allowing the Department of Public Works and Planning to utilize the remaining funds from prior contract years, effective November 15, 2016, with no change to the compensation amount or term of November 15, 2016 through November 15, 2021 ($1,250,000).
REPORT
Approval of the recommended action will remove the annual maximum payable for rental of heavy equipment for County road maintenance and disposal site operations. The recommended amendment will allow for more flexibility in allocating and spending funds, based on immediate needs, through the remainder of the five-year term. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, the Department of Public Works and Planning may return to the Board, to be determined in each contract year, with a request to increase the annual maximums for the remaining three years. The amendments would be to cover unanticipated needs due to weather related incidents, equipment failures, or accidents, to ensure the contract maximum is not exceeded.
RETROACTIVE AGREEMENT:
The recommended amendment is retroactive to November 15, 2016 to allow the Department the flexibility to allocate and spend funds that remained in prior contract years, an estimated $4,534 for the Road Maintenance & Operations (RM&O) Division and $92,520 for the Resource Division.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The five-year maximum will remain unchanged. The recommended amendment will remove the annual maximums and combine the five-year maximums of the RM&O and Resources Division into one lump sum, allowing the Department to allocate and spend funds through the remainder of the agreement. Since November 15, 2016, the Department has expended $691,615 and $62,013, for the RM&O and Resources Divisions, respectively. The total remaining agreement funds are $496,372. Sufficient appropriations and estimated revenues are included in the Department’s Roads Org 4510, Southeast Regional Disposal Site Org 9020, American Avenue Disposal Site Org 9026, and Coalinga Disposal Site Org 9028 FY 2019-20 Adopted Budget and will be included in future budget requests for the term’s duration.
DISCUSSION:
On November 15, 2016, the Board approved Agreement No. 16-655 with Quinn Company Inc. dba Quinn Rental Services, for the rental of heavy equipment as needed for County road maintenance and disposal site operations. Heavy equipment includes, but is not limited to, excavators, pavement rollers, pavement milling machines, and various other types of specialty equipment.
The agreement was for a potential five-year term with a three-year base and two optional one-year extensions and included annual maximums for the RM&O Division of $200,000 and $50,000 for the Resources Division.
The recommended amendment will remove the annual maximums and combine the five-year maximums of the RM&O and Resources Divisions into one lump sum payable for services, retroactive to November 15, 2016 allowing the Department flexibility to allocate and spend funds for the rental of heavy equipment from prior years. Flexibility is essential as the Department has outstanding invoices that it is holding as last year’s heavy snow and rainy season required the Department to rent extra equipment for extended periods of time. With your Board’s approval of the recommended action, the Department will cover unanticipated needs due to weather related incidents, equipment failures, or accidents.
All other terms will remain unchanged.
REFERENCE MATERIAL:
BAI #50, November 15, 2016
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - First Amendment to Agreement No. 16-655 with Quinn Company Inc. dba Quinn Rental Services
CAO ANALYST:
Sonia M. De La Rosa