Title
[Contract Amendment] Original Equipment Manufacturer (OEM) Parts and Services
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FileID
File ID: 2026-00933
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute Contract Amendment No. 1 to Contract PRC004024 with Municipal Maintenance Equipment, Inc. (MME) for the purchase of Original Equipment Manufacturer (OEM) parts and services for Schwarze, VacCon, Tiger and Pipehunter equipment, increasing the contract amount by $500,000 for a revised contract total not-to-exceed amount of $700,000.
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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-Contract Amendment No. 1
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Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works, Fleet Management Division, manages all City fleet assets from acquisition through maintenance and final decommissioning. To reduce costs and simplify repairs, Fleet standardizes equipment whenever possible and prioritizes the use of local vendors for parts and services.
The City’s fleet includes one Schwarze street sweeper, twelve VacCon sewer cleaning units, one Tiger mower, and six Pipehunter sewer jetters. A single vendor-MME-is the authorized parts and service provider for all these manufacturers, as reflected in Agreement PRC004024 for OEM support. Although the City is transitioning away from the Schwarze and Tiger lines, continued support for these units remains necessary.
Contract PRC004024, executed on February 1, 2026, established a five-year, $200,000 not-to-exceed amount for parts and services. However, after reviewing equipment usage and customer needs, Fleet has determined that the current budget is insufficient due to the high cost of parts and repair work for these specialized units.
Additionally, MME is the only vendor offering rental VacCon equipment, which is essential when units are out of service or when short-term operational demands increase. To ensure uninterrupted sewer maintenance capacity, staff recommend expanding the contract scope to include rental services and increasing the not-to-exceed amount.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with City Code
Chapter 3.56, which requires that the City Council approve any activities of $250,000 or more.
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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 fleet equipment and related services which 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: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: In February 2026, the Fleet Management Division entered into a sole-source agreement with MME in the amount of $200,000 for the purchase of parts and services for Schwarze, VacCon, Tiger, and Pipehunter equipment. MME is the only local authorized dealer supporting all four manufacturers.
Since execution of the agreement, additional operational needs have been identified. Rental VacCon units are required when equipment is out of service for repairs outside of warranty and during periods of increased operational demand. MME is the only local authorized vendor that provides rental VacCon equipment.
To ensure the continued availability of parts, service, and rental equipment necessary to support sewer maintenance operations, an amendment to expand the contract scope and increase the not-to-exceed amount by $500,000 for a new not-to-exceed total of $700,000 is recommended for the remainder of the five-year term, ending January 31, 2031.
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FinancialConsiderations
Financial Considerations: Sufficient funding exists in the Department of Public Works, Fleet Management Division, FY2025/26 Approved Operating Budget (Fleet Fund, Fund 6501) to execute the contract supplement. Purchases made after June 30, 2026, are subject to funding availability in the adopted budget of the applicable fiscal year.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Municipal Maintenance Equipment, Inc. (MME) is an LBE.
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