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Approve contracts for up to $25,000 per fiscal year with Suisun City ($15,000 per fiscal year) and the North Bay Schools Insurance Authority ($10,000 per fiscal year), for the Department of General Services-Fleet Management Division to provide vehicle rental and maintenance services for a three-year period beginning July 1, 2017 and ending June 30, 2020; and Authorize the County Administrator or designee to execute the contracts and any amendments within the approved budget
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Approve contracts for up to $25,000 per fiscal year with Suisun City ($15,000 per fiscal year) and the North Bay Schools Insurance Authority ($10,000 per fiscal year), for the Department of General Services-Fleet Management Division to provide vehicle rental and maintenance services for a three-year period beginning July 1, 2017 and ending June 30, 2020; and
2. Authorize the County Administrator or designee to execute the contracts and any amendments within the approved budget.
SUMMARY:
The Department of General Services is recommending the Board of Supervisors approve renewal contracts with Suisun City (Attachment A) and the North Bay Schools Insurance Authority (Attachment B) for up to $25,000 per fiscal year to provide continuing vehicle rental and maintenance services for a three-year period beginning July 1, 2017. The agreements have been in place with the North Bay Schools Insurance Authority since 2012 and with Suisun City since 1994 as part of an on-going effort to partner with other local public agencies to achieve economy of scale and efficiencies in fleet operations.
FINANCIAL IMPACT:
The County will charge Suisun City up to $15,000 per fiscal year for the use of 1 assigned County-owned vehicle and charge North Bay Schools Insurance Authority up to $10,000 per fiscal year for the use of 1 assigned vehicle and daily rental of County-owned pool vehicles on an as-needed basis. County rental/mileage rates cover the replacement, maintenance, insurance, and operating cost for County-owned vehicles. The rental/mileage rates are adjusted annually to recover in operational, maintenance, and vehicle replacement costs.
DISCUSSION:
Consistent with Board of Supervisors’ direction to support public agency collaboration, the Fleet Management Division of the Department of General Services offers other public agencies the opportunity to contract with the County for fleet management services. By contracting with outside agencies to provide vehicle rental and maintenance services, Fleet Management is able to spread overhead costs of operations over a larger customer base, resulting in lower rates for County departments and participating agencies. Fleet Management has provided rental vehicles to outside agencies since 1994 and currently has 64 vehicles in use by five local agencies. The contracts with Suisun City and North Bay Schools Insurance are for a three-year period beginning July 1, 2017 and ending June 30, 2020. The contracts will automatically renew on July 1 of each fiscal year for the duration of the three-year period and can be canceled by either party with 30-day notice.
ALTERNATIVES:
The Board could choose not to approve the contracts. This action is not recommended as the additional vehicles provided to outside agencies reduces the monthly cost to County Departments and outside agencies by spreading operating costs over a larger customer base.
OTHER AGENCY INVOLVEMENT:
Suisun City and the North Bay Schools Insurance Authority support approval of the contracts. County Counsel provided legal guidance and approved the contracts as to form.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION