REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department BY: DUANE MYERS, Fleet Manager General Services Department, Fleet Management Division MELISSA PERALES, Purchasing Manager General Services Department, Purchasing Division SUBJECT ..Title Actions pertaining to the award of five Requirements Contracts for equipment and vehicle rentals for various departments on an as needed basis in the total aggregate amount of $1,250,000 per year plus annual CPI increases to (Bid File 9673): 1. Enterprise Fleet Management of Fresno, California through April 18, 2026, with one optional one-year extension 2. Caterpillar, Inc. of Fresno, California through August 27, 2024, with one optional one-year extension 3. Altec Inc. dba Global Rental Inc. of Bakersfield, California through August 27, 2024, with one optional one-year extension 4. Sunbelt Rentals Inc. of Fowler, California through August 27, 2024, with one optional one-year extension 5. United Rentals (North America) Inc. of Fresno, California through August 27, 2024, with one optional one-year extension ..Body RECOMMENDATION Staff recommends Council approve the award of five Requirements Contracts for equipment rentals for various departments on an as needed basis in the total aggregate amount of $1,250,000 per year plus annual CPI increases to: 1. Enterprise Fleet Management of Fresno, California through April 18, 2026, with one optional one-year extension 2. Caterpillar, Inc. of Fresno, California through August 27, 2024, with one optional one-year extension 3. Altec Inc. dba Global Rental Inc. of Bakersfield, California through August 27, 2024, with one optional one-year extension 4. Sunbelt Rentals Inc. of Fowler, California through August 27, 2024, with one optional one-year extension 5. United Rentals (North America) Inc. of Fresno, California through August 27, 2024, with one optional one-year extension EXECUTIVE SUMMARY The General Services Department, Fleet Management Division, is recommending cooperative purchase agreements (CPA) with Enterprise Fleet Management, Caterpillar, Altec dba Global Rental, Sunbelt Rentals, and United Rentals for equipment rentals. These contracts will allow the Fleet Management Division to provide service to city departments during situations that require specialized equipment. For instance, renting an extended reach excavator, a specialty machine infrequently used by the Wastewater Division, proves more cost-effective than purchasing it. Additionally, rental equipment becomes necessary when existing equipment encounters downtime due to maintenance or prolonged issues, ensuring efficiency. The cooperative purchase agreements will be authorized through competitively solicited cooperative procurement processes administered by Sourcewell (a State of Minnesota local government agency). Enterprise Fleet Management was awarded a contract via Sourcewell RFP# 030122, which went into effect on May 4, 2022. Caterpillar, Altec dba Global Rental, Sunbelt Rentals, and United Rentals were awarded contracts via Sourcewell RFP# 062320, which went into effect on August 24, 2020. Subsequently, the two different RFP contract effective dates have necessitated the need for two separate contract durations. BACKGROUND The General Services Department, Fleet Management Division is responsible for maintaining approximately 2,600 active vehicles and equipment for the City of Fresno. This includes vehicle acquisitions, whole-life maintenance, fueling, and end-of-life disposal. Fleet Management serves City departments by providing reliable like-new transportation to support their needs and service responsibilities. This is done by scheduling and performing preventative maintenance, identifying repairs, and replacing equipment in a timely manner. Partnering with local equipment rental retailers, Enterprise Fleet Management, Caterpillar, Altec dba Global Rental, Sunbelt Rentals, and United Rentals through cooperative agreements, the Fleet Management Division will benefit by providing cost savings, product availability, consistent quality, and sustainable options when renting equipment for special projects. For instance, the rental of an extended reach excavator, a specialty machine infrequently used by the Wastewater Division, proves more cost-effective than purchasing it. Furthermore, rental equipment becomes necessary when existing equipment encounters downtime due to maintenance or prolonged issues. The four vendors have a wide range of products and supplies that are essential for municipal fleet. Cooperative purchase agreements will ensure that the equipment is readily available to the fleet, reducing downtime and increasing productivity. Currently, the General Services Department, Fleet Management Division has 2,600 vehicles and equipment to maintain and manage. By working together with the vendors through cooperative agreements, the Fleet Management Division can optimize its operations and achieve its goals by continuing to provide excellent customer service to all departments. Utilizing cooperative contracts was determined to be the most cost-effective and overall best value for obtaining equipment rentals. Enterprise Fleet Management was awarded a contract via Sourcewell RFP# 030122, which went into effect on May 4, 2022. Caterpillar, Altec dba Global Rental, Sunbelt Rentals, and United Rentals were awarded contracts via Sourcewell RFP# 062320, which went into effect on August 24, 2020. Subsequently, the two different RFP contract effective dates have necessitated the need for two separate contract durations. The Purchasing Division has approved this contract and recommends Council approval. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a "project" as defined by CEQA. LOCAL PREFERENCE Local preference is not applicable. The City is not issuing a request for proposals for these cooperative purchase agreements. However, Enterprise Fleet Management, Caterpillar, and United Rentals all maintain a place of business within the City of Fresno limits. Additionally, Sunbelt Rentals, maintains a place of business in Fowler, California, which is considered a local business per the Fresno Municipal Code Section 4-108. FISCAL IMPACT No general funds will be used to purchase these items. The funding to cover the annual purchase cost has been included in the FY2024 adopted budget under the operations of the General Services Department, Fleet Management Division. Attachments: Caterpillar Inc. CPA Caterpillar Inc. Contract #062320-CAT Global Rental Inc. CPA Global Rental Inc. Contract #062320-ALT Sunbelt Rentals Inc. CPA Sunbelt Rentals Inc. Contract #062320-SNB United Rentals (North America) Inc. CPA United Rentals (North America) Inc. Contract #062320-URI Original Request for Proposals #062320 Proof of Publication #062320 Proposal Opening Record #062320 Proposal Evaluation #062320 Comment & Review #062320 Enterprise Fleet Management CPA Enterprise Fleet Management Contract #030122-EFM Original Request for Proposals #030122 Proof of Publication #030122 Proposal Opening Record #030122 Proposal Evaluation #030122 Comment & Review #030122