Agenda Item Wording:
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Approval of a citywide equipment rental contract - Approve a citywide contract with United Rentals for equipment rental utilizing Sourcewell Contract No. 040924-URI with an annual not-to-exceed amount of $205,000, for an initial term through June 11, 2028, which may be extended for up to three additional one-year terms, to align with the terms of the Sourcewell contract, with a maximum contract amount of $1,025,000 over the life of the contract, including any extensions; however, actual contract duration and expenditures shall not exceed the City’s five-year contracting limit, and any extension beyond that limit would require separate approval.
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Agenda Date: 04/06/2026
Prepared by: Rehana Cale, Senior Project Manager, 559-713-4176, rehana.cale@visalia.gov Nick Bartsch, Public Works Director, 559-713-4052, nick.bartsch@visalia.gov
Department Recommendation: Staff recommends that the City Council approve a contract with United Rentals for equipment rentals utilizing Sourcewell Contract No. 040924-URI with an annual not-to-exceed amount of $205,000, for an initial term through June 11, 2028, which may be extended for up to three additional one-year terms, to align with the terms of the Sourcewell contract, with a maximum contract amount of $1,025,000 over the life of the contract, including any extensions; however, actual contract duration and expenditures shall not exceed the City’s five-year contracting limit, and any extension beyond that limit would require separate approval.
Summary:
Approval of this item will establish a citywide cooperative purchase contract for the rental of construction, maintenance, and specialty equipment, streamlining procurement and ensuring compliance with competitive purchasing requirements through Sourcewell’s competitively bid and awarded contract.
Background Discussion:
In the case of the breakdown of City-owned equipment that cannot wait for an untimely repair, or the need for infrequently utilized specialty equipment, City departments periodically utilize rental equipment to support routine maintenance activities, capital improvement projects, and emergency response operations. Equipment commonly utilized includes aerial lifts, rollers, loaders, excavators, tractors, compact equipment, pumps, generators, trench safety systems, temporary HVAC units, forklifts, and other specialty equipment necessary to maintain City infrastructure and facilities.
Sourcewell competitively solicited and awarded Contract No. 040924-URI to United Rentals in October 2024 for Rental Equipment, Products, and Related Services. The contract is available for use by public agencies nationwide through cooperative purchasing provisions and is scheduled to expire on June 11, 2028.
Utilizing the Sourcewell contract will streamline procurement processes, ensure compliance with competitive purchasing requirements, and provide departments with timely access to competitively priced rental equipment. The proposed agreement will be co-terminous with the Sourcewell contract term ending June 11, 2028.
Cooperative Purchasing (Piggyback) Authority
Sourcewell issued a public competitive solicitation and awarded Contract No. 040924-URI in accordance with cooperative purchasing best practices. The contract expressly permits participation by other eligible governmental entities.
The contract includes a “Participation by Other Agencies” provision allowing eligible public agencies to purchase under the contract’s pricing and terms without conducting a separate competitive solicitation.
California Public Contract Code Section 20652 authorizes local agencies to purchase equipment through contracts awarded by other public agencies following competitive bidding. The City’s Purchasing Policy similarly permits cooperative purchasing (“piggybacking”) when:
• The original solicitation was publicly advertised;
• The contract was awarded through a competitive process;
• The goods and services are substantially the same; and
• The cooperative agreement permits use by other public agencies.
Staff has reviewed the Sourcewell procurement documentation and confirmed that these requirements have been satisfied.
Accordingly, staff recommends approval of the proposed cooperative purchasing agreement pursuant to California Public Contract Code Section 20652 and the City’s Purchasing Policy, having confirmed that the Sourcewell solicitation was publicly advertised, competitively awarded, and expressly permits participation by other public agencies.
Department Input and Proposed Authorization
Department directors were requested to provide anticipated annual rental needs based on historical usage and projected operational demands. Confirmed responses indicate estimated aggregate annual usage ranging from approximately $105,000 to $205,000.
To provide sufficient operational flexibility and avoid the need for future amendments during the contract term, staff recommends establishing an annual not-to-exceed (NTE) amount of $205,000. Consistent with City policy limiting contract terms to five years, the proposed contract establishes a maximum authorization of $1,025,000 over a five-year period, while maintaining alignment with the Sourcewell contract term and pricing structure.
Participating departments include:
• Streets
• Water Reclamation Facility (WRF)
• Fleet
• Solid Waste
• Parks & Trails
• Convention Center
• Airport
Department-Confirmed Citywide Annual NTE
• Low-End Aggregate: ~$105,000
• High-End Aggregate: ~$205,000
Multi-Year Contract Planning (Through June 11, 2028)
For planning consistency with the remaining Sourcewell term (~3 years):
• Conservative Total NTE (3-year): ~$315,000
• Upper-Bound Total NTE (3-year): ~$615,000
Fiscal Impact including annual maintenance and operating costs: Expenditures will be funded through participating departments’ existing operating budgets. No additional appropriation is requested. All expenditures will remain subject to annual budget approval and Purchasing controls.
Annual Not-to-Exceed (NTE): $205,000
Maximum Contract Authorization (including extensions): $1,025,000 (not to exceed five years of expenditures without additional Council authorization)
Prior Council Action: N/A
Alternatives: Decline approval and continue to follow the City’s Purchasing Policy procurement processes for every individual occurrence. This is not recommended as it requires additional time to obtain multiple quotes and leads to delays in procuring the equipment needed. As an already competitively bid contract, there is no guarantee there would be any additional savings beyond what is already offered under the Sourcewell contract.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to approve a contract with United Rentals for equipment rentals utilizing Sourcewell Contract No. 040924-URI with an annual not-to-exceed amount of $205,000, for an initial term through June 11, 2028, which may be extended for up to three additional one-year terms, to align with the terms of the Sourcewell contract, with a maximum contract amount of $1,025,000 over the life of the contract, including any extensions; however, contract duration and expenditures shall not exceed the City’s five-year limit without further Council approval.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 04/06/2026
Attachments: Attachment 1: Sourcewell RFP and Addendums for Rental Equipment Attachment 2: Sourcewell Vendor Contract Summary - United Rentals Attachment 3: United Rentals Contract 040924-URI Attachment 4: Sourcewell Pricelist effective 6.11.2024 for 040924-URI
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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