AGENDA ITEM NO. 8.11

CITY OF ELK GROVE CITY COUNCIL STAFF REPORT

AGENDA TITLE: Adopt resolution dispensing with formal

competitive bidding and authorizing the City Manager to execute a one-year contract with Aba Daba Rents to provide Event Equipment Rental and Services for a total not-to-exceed amount of $60,000

MEETING DATE: March 25, 2015 PREPARED BY: Kristyn Nelson, Interim Public Affairs

Manager DEPARTMENT HEAD: Kara Reddig, Deputy City Manager RECOMMENDED ACTION: Staff recommends the City Council adopt a resolution dispensing with formal competitive bidding and authorizing the City Manager to execute a one-year contract with Aba Daba Rents to provide Event Equipment Rental Services for a total amount not-to-exceed $60,000. BACKGROUND INFORMATION: The City of Elk Grove produces events to showcase the City as a recreational and cultural center that attracts visitors. Between the months of April and December of 2015, the City anticipates producing seven signature event experiences including: GO Fest, the City’s fitness festival; Boots on the Boulevard, a new outdoor concert experience in Old Town; A Salute to the Red, White and Blue; the 4th Annual Elk Grove Multicultural Festival; Art Americana Faire in partnership with the City’s Committee for the Arts (new); an Old Town movie night experience; and potentially a 15th City anniversary / Key to the City event.

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Elk Grove City Council March 25, 2015 Page 2 of 3 COMPLIANCE WITH PURCHASING ORDINANCE The production of major festivals and some smaller events requires the use of tents, tables, chairs, heating and cooling units, generators and power distribution that exceeds the City’s available resources. Staff has previously contracted with providers on an individual event basis for these items. For efficiency and a potential cost savings, staff packaged all seven events into an informal request for quotes in January to cover the event season, anticipating that the total cost of the services would be less than $50,000 (See EGMC § 3.42.186). Currently there are no companies operating in Elk Grove that are capable of fulfilling all of the equipment needs for these events. Complete quotes were submitted by Aba Daba Rents and two other competing businesses from the Sacramento region. All three companies submitted pricing that exceeded the $50,000 threshold for the informal bidding process.

Firm Name Quote

Aba Daba Rents $54,681.29

Celebrations $63,944.27

Classic Party Rents $60,805.31 Aba Daba Rents, Inc. has a satisfactory performance record with City events, having successfully provided the lowest pricing for equipment and services for the Elk Grove Multicultural Festival in both 2013 and 2014. Aba Daba Rents also supplied equipment for Merry Movie Night last December. The company has delivered a consistent level of professional quality and service during these previous events that demonstrates its competency and its ability to meet the City’s insurance requirements. If approved, the City contract shall be made pursuant to Elk Grove Municipal Code Section 3.42.188(B)(3), which provides that the City Council may dispense with formal bidding when, in the judgment of the City Council, conducting formal bidding is not in the best interest of the City. Staff has determined that it is in the City’s best interest to contract with Aba Daba Rents, Inc. based on the results of the informal bid process. The informal process has solicited adequate competitive quotes. Had staff realized that the quotes would have exceeded the $50,000 threshold, staff would have formally bid this contract. However, staff feels that the time

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Elk Grove City Council March 25, 2015 Page 3 of 3 and effort needed to conduct a formal RFP would not produce a result more advantageous to the City. FISCAL IMPACT: The total contract not-to-exceed amount is $60,000 and will be accounted in the General Fund - Public Affairs Department budget. Funding for GO Fest and Boots on the Boulevard will come from the existing events budget in FY 2014-15. The remaining funds will be included in the events budget for FY 2015-16. ATTACHMENTS:

1. Resolution 2. Contract

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ATTACHMENT 1

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK GROVE DISPENSING WITH THE FORMAL COMPETITIVE BID PROCEDURES AND

AUTHORIZING THE CITY MANAGER TO EXECUTE A ONE-YEAR CONTRACT WITH ABA DABA RENTS TO PROVIDE EVENT EQUIPMENT RENTAL AND

SERVICES ASSOCIATED WITH THE PRODUCTION OF CITY EVENTS FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $60,000

WHEREAS, the City of Elk Grove (City) has determined that it is necessary to

retain a Supplier to provide event equipment rental services including but not necessarily limited to tents, tables, chairs, heating and cooling units, power and power distribution services associated with the production of seven City organized events for 2015; and

WHEREAS, the production of quality City events supports the Council goal of

promoting Elk Grove as a cultural and recreational center that attracts visitors; and WHEREAS, the City secured estimates from three competing companies for

equipment and services through an informal process that all exceeded $50,000; and

WHEREAS, the City Council may dispense with the formal Competitive Bid Procedure under the Elk Grove Municipal Code, where, as here, it is in the City’s best interest to contract directly with Aba Daba Rents allowing for contracting with the lowest responsible bidder as determined through the informal bid process.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk

Grove:

1) Dispenses with the Formal Competitive Bid Procedure pursuant to Elk Grove Municipal Code Section 3.42.188(B)(3) and:

2) Awards the contract for Event Equipment Rental and Services to Aba Daba

Rents for a term of one year for a total not to exceed amount of $60,000 and:

3) Authorizes the City Manager to execute all related documents. PASSED AND ADOPTED by the City Council of the City of Elk Grove this 25th day of March 2015. GARY DAVIS, MAYOR of the

CITY OF ELK GROVE ATTEST: APPROVED AS TO FORM: JASON LINDGREN, CITY CLERK JONATHAN P. HOBBS,

CITY ATTORNEY

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