Title
[Contract Amendment] Medium Duty Construction Equipment Purchases (PRC003775)
End
FileID
File ID: 2026-00818
End
Location
Location: Citywide
End
Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute Contract Amendment No. 1 to Contract PRC003775 with Volvo Construction Equipment & Services (VCES) for the purchase of medium duty construction equipment, increasing the contract amount by $505,000 for a revised contract total not-to-exceed amount of $700,000.
End
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
End
Presenter
Presenter: None
End
Attachments
Attachments:
1-Description / Analysis
2-Contract Amendment No. 1
End
Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works, Fleet Management Division, is responsible for procuring all fleet assets for the City. This includes vehicles and equipment scheduled for replacement during the annual replacement cycle, new assets approved through the budget adoption process, and early replacements resulting from catastrophic failure when authorized by budget.
To support timely procurement, Fleet Management maintains contracts with multiple vendors to ensure that appropriate equipment can be acquired as soon as the need for purchase is identified to keep costs as low as possible and not affect operations. One such contract is with VCES, which provides medium-duty construction equipment. Medium-duty construction equipment includes assets that fall between light- and heavy-duty categories, such as backhoe loaders, telehandlers, compact excavators, and similar equipment.
Contract PRC003775 was executed with VCES on October 20, 2025, for $195,000 to procure specialized equipment. This contract amendment is needed to allow for other planned equipment purchases through the remaining term of the contract.
End
PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with City Code
Chapter 3.56 and 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.
End
EconomicImpacts
Economic Impacts: None.
End
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.
End
Sustainability
Sustainability: Not applicable.
End
Commission/Committee Action
Commission/Committee Action: None.
End
RationaleforRecommendation
Rationale for Recommendation: In October 2025, the Fleet Management Division entered into a cooperative/piggyback agreement with VCES in the amount of $195,000 to procure a specialized piece of equipment-an Avant Compact Wheel Loader-for the Department of Youth, Parks, and Community Enrichment (YPCE). This equipment could not be acquired through any existing contract, and the cooperative/piggyback agreement allowed Fleet to secure the purchase in a timely and cost-effective manner.
Since that time, Fleet has identified additional fleet assets available through VCES at lower prices than other contracting options. To take advantage of these cost savings and ensure adequate purchasing capacity for anticipated needs, Fleet Management is requesting authorization to execute Contract Supplement No. 1. This supplement would increase the contract’s not-to-exceed amount by $505,000, which is expected to support projected purchases, such as compressors and loaders, through the remainder of the agreement term, ending April 17, 2027. The most immediate purchase Fleet will make upon approval of this amendment is an air compressor for Pavement Maintenance which will replace Unit 11849 in the FY26 replacement cycle.
End
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.
End
LocalBusinessEnterprise
Local Business Enterprise (LBE): Volvo Construction Equipment and Services is an LBE.
End