Title
Contract: Replacement Fleet Asset Cooperative Purchases [Published for 10-Day Review on 07/16/2025]
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FileID
File ID: 2025-01350
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion: 1) approving the use of cooperative purchase contracts from the State of California, and Sourcewell with various vendors for the purchase of sedans, vans, sport utility vehicles, trucks and specialty equipment in a total amount not to exceed $29,450,000 (as shown on the Cooperative Purchase Contracts Summary) during the terms of each respective contract or until the contracts are no longer available for use; 2) authorizing the Interim City Manager or designee to execute the purchases specified above; 3) authorizing the Interim City Manager or the designee to execute all necessary documents to effectuate the purchases specified above, including but not limited to the execution of cooperative/piggybacking agreements.
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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-Cooperative Purchase Contracts Summary
3-Contracts
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Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works, Fleet Management Division, has an ongoing requirement to purchase vehicles to support mission critical operations performed by City departments. These vehicles are needed to replace vehicles that have reached the end of their useful life or are added to the department’s fleet due to changes of operation or staffing. Time is of the essence when purchasing vehicles to prevent interruptions in service and avoid higher repair and maintenance costs associated with keeping assets beyond their scheduled replacement. To expedite this process, this report recommends using the cooperative purchase agreements identified in the Cooperative Purchase Contracts Summary to purchase the needed sedans, vans, sport utility vehicles, trucks and specialty equipment. In sum, staff is requesting that City Council vest the Interim City Manager or designee with the power to effectuate individual purchases under the identified cooperative contracts, on an as-needed basis, without having to seek City Council authorization on each individual purchase. The types of purchases allowed under the cooperative contracts are extremely time sensitive.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with Sacramento City Code Section 4.04.020 and Council Rules of Procedure, Chapter 7, Section E.2.d, which mandate that unless waived by a two-thirds vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action. (See also, Sacramento City Code section 3.56.090). This item was published for 10-day review on July 16, 2025, in compliance with City Code. The recommendations in this report are also in accordance with Sacramento City Code Section 3.56.240 which provides for the use of cooperative purchase agreements as an exception to the requirement for competitive bidding.
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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 is 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 updated Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478) and California Air Resource Board (CARB) regulations. Purchases of zero emission models will be purchased as made available from the vendors and if they comply with operational needs.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: Each of the recommended cooperative purchase contracts has been competitively bid, meets the needs of the City’s fleet, offers better pricing than the City would receive through its own bid process due to a higher purchase volume, and eliminates the lengthy process of bidding. The quantities listed in the Cooperative Purchase Agreements Summary are estimates based on the current purchasing needs for Fiscal Year 2025/2026 (FY26). Actual purchases may vary based on department needs at the time of the purchase and availability by vendor. The sum of all purchases for the 14 vendors shall not exceed $29,450,000.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement method increases pricing competitiveness and lowers capital costs through volume buying. When comparing the administrative costs of procurement, staff consider product research, source selection, specifications, advertising, staff reports, awarding, protests, and administration of the contract.
The City has used both regional and national cooperative purchase contracts to complement its own contracting initiatives. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing also leverages internal and external resources to maximize cost savings opportunities for the City.
Staff is requesting that Council vest the Interim City Manager or Designee with the power to effectuate purchases under the identified cooperative contracts, on an as-needed basis.
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FinancialConsiderations
Financial Considerations: Purchases under the recommended cooperative purchase contracts will be made from the Department of Public Works Fiscal Year 2026 operating budget (Fleet Fund, Fund 6501) and charged to the using department’s Fleet Project for replacement vehicles and equipment. Sufficient funding is available in the Department’s FY26 operating budget and customer department Fleet Projects to support the recommended purchases for FY26.
The Fleet Management Division compared the replacement vehicles and equipment to be purchased against the budgeted amount and vendors who carry the desired replacement to determine the recommended spending authorization as noted in the Estimated Cost column below. The requested contracts amount were rounded up where reasonable as noted in the Requested Contract Amount column, for a cumulative contract total amount of $29,450,000. This is further broken down in the Cooperative Purchase Contracts Summary where historical spending was reviewed and compared with current need to determine appropriate amounts to contract with for each vendor.
|
Historical Vendor |
Unit Count |
Estimated Cost |
Requested Contract Amount |
|
Sedan (Various Vendors) |
21 |
$ 2,200,000.00 |
$ 2,200,000.00 |
|
SUV (Various Vendors) |
8 |
$ 800,000.00 |
$ 800,000.00 |
|
Van (Various Vendors) |
11 |
$ 1,100,000.00 |
$ 1,100,000.00 |
|
Truck (Various Vendors) |
74 |
$10,200,000.00 |
$10,200,000.00 |
|
Downtown Ford |
50 |
$ 5,900,000.00 |
$ 6,000,000.00 |
|
Riverview International |
4 |
$ 1,500,000.00 |
$ 1,500,000.00 |
|
MME |
2 |
$ 1,020,000.00 |
$ 1,100,000.00 |
|
Autocar |
7 |
$ 4,410,300.00 |
$ 4,500,000.00 |
|
PB Loader |
4 |
$ 835,000.00 |
$ 900,000.00 |
|
Holt |
2 |
$ 271,000.00 |
$ 300,000.00 |
|
Pape |
3 |
$ 601,000.00 |
$ 625,000.00 |
|
Safeware (this contract does not require Council approval. It is included for transparency of purchase plan) |
6 |
$ 220,000.00 |
$ 225,000.00 |
|
Vendors TBD |
21 |
$ 350,000.00 |
|
|
Grand Total |
213 |
$29,407,300.00 |
$29,450,000.00 |
The last line item of “Vendors TBD” are purchases that need to made that could go to multiple vendors depending upon some decisions that will need to be made by Departments. That money was distributed amongst the vendors to come up with the appropriate total.
The goal by establishing these contracts at the outset of the year is to allow for quick response time in ordering. Some vendors may discontinue carrying certain items or the manufacturer may halt production which requires a quick response to fulfill the operational need of the replacement. Having these contracts in place allows flexibility in using vendors to fulfill the City’s need for their fleet assets while not limiting departments on selection.
This will also allow the Fleet Management Division to respond quickly to the critical needs of City departments that stem from replacements being needed due to vehicle accidents, or augmented quantities due to grant funding or increased service demands. Customer departments are required to obtain Finance Department approval, and provide funding for purchases above and beyond what is included in the planned replacement schedule.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.
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