Title
Staff Report for a Resolution of the City of San Leandro City Council to Authorize the City Manager to Execute a Rental Agreement with Nixon-Egli Equipment Company for a Cold Milling Machine at an amount not to exceed $27,632.50.
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council authorize the City Manager to execute a 1-month rental agreement for lease of a cold milling machine at a total cost of $27,632.50.
BACKGROUND
With last year’s passage of Senate Bill 1 (SB1) by the California Legislature, the City is the recipient of State monies (issued monthly) for use in approved maintenance projects located within the right-of-way. In anticipation of expanding the amount of asphalt maintenance work able to be completed by staff, last year the City Council also approved purchase of a new asphalt paver.
In May of this year, the City Council approved a 3-month rental agreement with Nixon-Egli for a cold milling machine (grinder).
Analysis
As this year was the first time that Public Works staff (outside of the Paving Supervisor) had utilized a large grinder in the field, a conservative approach was taken in estimating how much work could be accomplished. Work in the field has progressed extremely well and Public Works staff have been able to complete the grinding work associated with the identified SB1 projects. Because a large back-log of road maintenance work exists, Public Works conferred with Engineering & Transportation staff on including additional grind work to this year’s SB1 projects and an additional month of the grinder rental became necessary.
The original 3-month rental did not include a provision for administratively extending the contract, and even if it did, the amount of the 1-month rental extension exceeds the normal 25% typically allowed under change orders. The City Manager executed the 1-month rental extension, and brings this action before the City Council to confirm authority to execute.
Budget Authority
Existing monies in the Gas Tax Fund (140-31-056-5240) are available to pay for the 1-month rental.
ATTACHMENT(S)
Attachment(s) to Staff Report
• Nixon-Egli Equipment Company Rental Agreement
PREPARED BY: Debbie Pollart, Director, Public Works Department