Title
[Contract Supplement] Replacement Fleet Asset Cooperative Purchases [Published for 10-Day Review 09/10/2026]
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FileID
File ID: 2026-01571
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute Supplement Agreement No. 1 to City Agreement No. PRC003697 with Pape Machinery, Inc. to allow the purchase of construction equipment, increasing the amount of the contract by $875,000, for a new contract not-to-exceed amount of $1,500,000.
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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-Supplemental Contract No. 1
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Description/Analysis
IssueDetail
Issue Detail:
The Fleet Management Division regularly purchases vehicles and heavy equipment to support essential City operations. Maintaining established contracts for these purchases allows the City to replace aging fleet assets in a timely manner, helps prevent service interruptions and excessive maintenance costs, and supports the operational needs of City departments.
Public Works utilizes cooperative purchasing agreements that have been competitively solicited and awarded by other public agencies. Use of these agreements can provide favorable pricing, reduce administrative burden, and expedite the procurement of vehicles and equipment.
On July 1, 2025, the City entered into City Agreement No. PRC003697 with Pape Machinery, Inc., the local John Deere dealer, utilizing a competitively awarded Sourcewell cooperative purchasing agreement for heavy construction equipment, including backhoes, skid steers, and similar equipment. The existing City agreement has a not-to-exceed amount of $625,000.
Additional contract capacity is needed to support anticipated fleet replacement purchases in FY27 and through the remaining term of the cooperative agreement. Staff recommend increasing the contract amount by $875,000, from $625,000 to $1,500,000, to allow the City to continue purchasing the heavy construction equipment needed without interruption.
The cooperative agreement expires on April 14, 2027.
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PolicyConsiderations
Policy Considerations:
The recommendations in this report are in accordance with Sacramento City Code Section 3.56.240, cooperative purchasing, Sacramento City Code Section 3.56.090 which requires any agreement of $250,000 or more to be approved by City Council, and with Sacramento City Code Section 4.04.020 and City Council Rules of Procedure, Chapter 7, Section E.2.d, which requires additional posting time for labor agreements and all agreements greater than $1 million. This item was published for 10-day review on September 10, 2026, in compliance with the 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 proposed activity 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 and is therefore not subject to CEQA Guidelines Section 15060(c)(3).
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Sustainability
Sustainability: The recommended purchase agreement amendment is consistent with the updated Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478) and California Air Resources 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: The Sourcewell cooperative purchasing agreement was established through a competitive procurement process. Sourcewell issued Request for Proposals No. 011723 for Heavy Construction Equipment, received 18 responses, and awarded 15 contracts. The City subsequently entered into a cooperative purchasing agreement with Pape Machinery, Inc., the local John Deere dealer, effective July 1, 2025.
Use of the competitively awarded cooperative agreement provides the City access to favorable pricing based on higher purchasing volumes while reducing the time and administrative costs associated with conducting separate City solicitation.
Additional heavy equipment purchases are anticipated in FY27 and potentially FY28. Increasing the contract's not-to-exceed amount by $875,000 will provide sufficient contract capacity to make necessary fleet replacement purchases during the remaining term of the cooperative agreement while ensuring that individual purchases remain subject to available budget authority and applicable City purchasing requirements.
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FinancialConsiderations
Financial Considerations: Purchases under this contract will be made from the Department of Public Works FY27 operating budget (Fleet Fund, Fund 6501) and charged to the applicable customer department Fleet Projects for replacement vehicles and equipment.
Sufficient funding is available in the Department's FY27 operating budget and applicable customer department Fleet Projects to support anticipated FY27 purchases. Approval of the contract supplement does not appropriate additional funding. Purchases will be made only to the extent sufficient budget authority is available in the Fleet Fund and applicable customer department Fleet Projects.
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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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