Title
Supplement 5 - Elk Grove Ford New and Replacement Vehicle Purchases [Published for 10-Day Review 07/16/2025]
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FileID
File ID: 2025-01334
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the Interim City Manager or designee to execute Supplement No. 5 to Contract No. 2023-0564 with Elk Grove Ford for the purchase of new and replacement Ford light-duty vehicles increasing the amount of the contract by $2,100,000 for a revised total contract not-to-exceed amount of $7,000,000.
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Contact
Contact: Stacey Chatman, Program Specialist, (916) 808-6711, schatman@cityofsacramento.org; Alison Kerstetter, Fleet Manager, (916) 808-1163, akerstetter@cityofsacramento.org;
Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Supplement Contract No. 5
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Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works, Fleet Management Division, regularly procures vehicles to adhere to annual replacement schedules or to purchase new additional units as requested by Departments and approved by City Budget. When units near the end of their useful lifespan, they are identified and budgeted for replacement after approval by the department and City Council. To streamline the replacement process and operations, the Fleet Management Division has standardized Ford products, facilitating easier repairs and equipment compatibility. Elk Grove Ford was approved by City Council May 23, 2023 to suspend competitive bidding (Motion No. 2023-0127) as Elk Grove Ford was the only vendor at the time that had sufficient inventory which allowed the City to replace units that reached the end of life. They continue to be able to provide in stock units allowing the City to replace more inventory while helping to expedite vehicle delivery, which reduces excessive maintenance costs and high mileage on the units being replaced. Their inventory availability as well as rebate options are the best purchase option for the City. To continue use of this contract, additional contract expenditure authority is needed.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with Sacramento City Code Chapter 3.56 and Sacramento City Council Rules of Procedure, Chapter 7, Section E.2.d, which requires additional posting time for labor agreements and agreements greater than $1 million. This item was published for 10-Day review on July 16, 2025, in compliance with City Code.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase of vehicles and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
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Sustainability
Sustainability: The recommended purchases are consistent with the Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478).
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The Fleet Management Division has completed thorough research to explore alternatives for procuring replacement vehicles. However, due to challenges such as limited order banks and supply chain disruptions, vehicle availability has declined over the last five years. Current vehicle orders are experiencing prolonged fulfillment times, leading to delays in delivery while in-stock vehicles are immediately available. To mitigate the impact of manufacturing issues, a multi-year contract was awarded to Elk Grove Ford. This contract ensures consistent purchase availability until the challenges surrounding vehicle production subside. Moreover, the contract aligns with the division’s objective of standardizing the fleet with Ford products, thereby promoting consistency and efficiency.
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FinancialConsiderations
Financial Considerations: This supplemental contract for an amount of $2,100,000, provides a new contract not-to-exceed amount of $7 million. Potential purchases for this supplemental contract will be made by the Department of Public Works Fiscal Year (FY) 2025/26 operating budget (Fleet Fund, Fund 6501) and charged to the appropriate multi-year operating projects (MYOPs) when procured. Sufficient funding currently exists in the Department’s FY2025/26 operating budget and the MYOP projects and is anticipated for FY25/26. No purchases will be authorized unless an available budget exists.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Elk Grove Ford is not an LBE. Goods contracts over $250,000 do not have a minimum LBE requirement.
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Background
Background On May 23, 2023, the City received approval to enter contract 2023-0564 with Elk Grove Ford through suspension of competitive bidding. This contract has a not to exceed amount of $900,000 for a one-year contract period with four potential one-year extensions. The contract has been supplemented since approval as follows:
Supplemental Contract 1, June 14, 2023, new not-to-exceed amount of $2,900,000.
Supplemental Contract 2, March 20, 2024 extended through May 15, 2025.
Supplemental Contract 3, May 28, 2024, new not-to-exceed amount of $4,900,000.
Supplemental Contract 4, June 6, 2025 extended through May 16, 2026.
Proposed Supplemental Contract 5, new not-to-exceed amount of $7,000,000.
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