COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

 

DATE:

February 8, 2005

BOARD MEETING DATE:

March 1, 2005

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Maureen D. Borland, Director, Human Services Agency

Glen H. Brooks, Jr., Director, Central Region

   

SUBJECT:

Agreement with Monarch

 

RECOMMENDATION:

Adopt a Resolution authorizing the execution of a five year Agreement with Monarch for truck leasing services in the amount of $88,826 and for the term of March 15, 2005 through March 14, 2010.

 

VISION ALIGNMENT:

Commitment: Create opportunities for every household to participate in our prosperity.

Goal (17): All households experience real gains in income.

 

This Agreement contributes to this commitment and goal by allowing the County to continue providing paid job training experience for participants in assembly work, shipping and delivery services, while benefiting businesses in the Bay Area who pay minimal fees for the services provided. In FY 2003-04, twenty nine percent of the participants successfully completed job training in assembly work, shipping and delivery services. It is anticipated that 160 participants or 32% will complete this training in FY 2004-05, which is a three percent increase from FY 2003-04.

 

Performance Measure:

Measure

Actual

FY 2003-04

FY 2004-05

Projected

Number of participants successfully completing job training:

29%

32%

 

Performance measures have not been determined for future fiscal years. However, it is anticipated that there will be an increase of five percent each fiscal year.

 

BACKGROUND:

Vocational Rehabilitation Services, Work Center, which is a component of the Human Services Agency, provides packaging and delivery services for various businesses through the Bay Area. Over the past five years, the Human Services Agency has leased a truck through Penske Truck Leasing in order to provide delivery services. The Agreement with Penske expired November 30, 2004. A new short-term Agreement with Penske was written and executed by the Human Services Agency Director, since an amendment to the existing Agreement could not be executed by the Board of Supervisors before it was set to expire. The new short term lease allowed the Work Center to continue services, while a new long-term lease was negotiated.

 

DISCUSSION:

The Work Center researched vendors in the area that could provide them with a lease for the type and size truck necessary for its delivery services. A description of the type of truck and terms needed were sent to four vendors in the area. One vendor did not respond. Quotes were obtained through three Vendors based on the description submitted by the Work Center. The Vendors who submitted quotes are: Penske in the amount of $1,436.42 monthly for a five year lease; Ryder in the amount of $1,198 for a seventy-eight month lease and Monarch in the amount of $1,087.56 for a five year lease. Based on these quotes, a long term Agreement is being awarded to Monarch.

 

It is in the County’s best interest to approve a five year Agreement with Monarch. Truck leasing companies give rate discounts based on the length of a lease Agreement. An Agreement shorter than five years would cost significantly more.

 

FISCAL IMPACT:

The amount of this Agreement is $88,826 for the term of March 15, 2005 through March 14, 2010. This Agreement is funded by Work Center revenue, which is included in the Adopted Budget for FY 2004-05. There is no Net County Cost.