Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Nicole Pollack, Director, Human Services Agency
Subject: Extension of the Vocational Rehabilitation Services Workcenter 2013 Freightliner lease with Penske
RECOMMENDATION:
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Adopt a resolution authorizing:
A) The Human Services Agency Director to execute a four (4) month lease extension with Penske for a 2013 Commercial Freightliner, to July 31, 2018 or sixty-four (64) months in total; and
B) The Human Services Agency to pay up to $15,000 to cover outstanding lease and service costs in addition to the four (4) month lease extension for a total amount not to exceed $115,000.
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BACKGROUND:
The Human Services Agency ("HSA") Vocational Rehabilitation Services ("VRS") Workcenter provides shipping and delivery services to local businesses to and from its warehouse located at 550 Quarry Road in Belmont. On March 8, 2013, HSA entered into a lease with Penske for a 2013 Freightliner (commercial truck) for the term of March 8, 2013 through March 31, 2018. The monthly lease cost is $1,445, plus mileage fees of nine (9) cents per mile, as well as maintenance, license and registration fees, and various taxes that comply with state and federal requirements for leased commercial vehicles. HSA anticipated that the amount of the lease would not exceed $100,000 for the term of the Agreement; however, due to unanticipated maintenance costs, the Agreement will exceed the authorized amount of $100,000.
In December 2017, HSA obtained quotes from three commercial truck leasing companies to lease a 2019 Freightliner for the term of 60 (sixty) months, and Penske was selected as the provider who could best meet the County's truck leasing needs with the most competitive pricing. The new lease was scheduled to commence upon April 1, 2018 upon expiration of the old lease. Penske requires that all new business Freightliners are custom built to the needs o...
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