Title
[Contract Supplement] New Way Original Equipment Manufacturer Parts and Services [Two-Thirds Vote Required] [Published for 10-Day Review XX/XX/26]
End
FileID
File ID: 2026-01772
End
Location
Location: Citywide
End
Recommendation
Recommendation: Pass a Motion by two-thirds vote 1) suspending competitive solicitation requirements in the best interest of the City to utilize sole-source procurement for parts and services for City trash collecting equipment; and 2) authorizing the City Manager or designee to execute Contract Supplement No. 1 to Contract PRC004013 with Ray Gaskin Service for New Way OEM parts and services, increasing the contract by an amount not-to-exceed $1,251,000, for a revised not-to-exceed contract amount of $1,500,000.
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 PRC004013 Supplement No. 1
End
Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works, Fleet Management Division, is responsible for maintaining the City’s solid waste collection fleet, which includes heavy-duty refuse trucks equipped with specialized New Way bodies. On February 1, 2026, the City entered into Agreement No. PRC004013 with Ray Gaskin Service for the purchase of Original Equipment Manufacturer (OEM) New Way parts and specialized repair services, with a five-year term through January 31, 2031, and an initial administrative not-to-exceed authority of $249,000.
Initial projections estimated an annual expenditure of approximately $50,000 under this agreement. However, due to an unexpected surge in major component repairs and rising parts costs over recent months, actual spending has significantly exceeded original forecasts. Based on recent repair trends and anticipated fleet maintenance requirements over the remaining contract term, annual expenditures are now projected at approximately $300,000 annually.
To ensure sufficient contract capacity and prevent disruptions to solid waste collection services, staff recommend executing Supplemental Agreement No. 1 to Agreement No. PRC004013 with Ray Gaskin Service. This amendment will increase the contract's total not-to-exceed capacity from $249,000 to $1,500,000 over the five-year term ending January 31, 2031.
End
PolicyConsiderations
Policy Considerations: The recommendations in this report comply with applicable Sacramento City Code provisions and administrative policies:
• Contract Thresholds: Pursuant to Sacramento City Code Section 3.04.020 and Section 15.A of the Administrative Policy for Non-Professional Services, contract amendments that result in a cumulative total of $250,000 or more exceed administrative approval authority and require City Council authorization. Execution of Amendment No. 1 increases the cumulative contract value from $249,000 to $1,000,000, necessitating Council approval.
• Competitive Bidding Suspension: Sacramento City Code Sections 3.56.230, 3.56.120.B and Section IV.3.2.D.3 of the Administrative Policy for Non-Professional Services require competitive solicitation for non-professional services contracts of $250,000 or more, unless suspended by a two-thirds (2/3) vote of the City Council upon finding that an alternative procurement method is in the City's best interest.
o A sole-source award was previously justified under administrative authority ($249,000). Continued sole-source authorization is warranted due to ensuring the warranty for refuse truck bodies stays intact during the life of the vehicle.
• Contracts Exceeding $1 Million Sacramento City Code Section 4.04.020 and City Council Rules of Procedure (Chapter 7, Section E.2.d) require a 10-day public posting period prior to Council action for agreements equal to or exceeding $1,000,000. In compliance with these requirements, this item was published for public review.
End
EconomicImpacts
Economic Impacts: None.
End
EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): No environmental review is necessary because the proposed activities in this report involve the purchase of vehicle maintenance and repair 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).
End
Sustainability
Sustainability: The recommended purchase agreement 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 as there are no comparable zero emission models available for purchase that meet operational requirements.
End
Commission/Committee Action
Commission/Committee Action: None.
End
RationaleforRecommendation
Rationale for Recommendation: Essential solid waste, recycling, and organic waste collection services rely directly on the operational readiness of the City’s refuse fleet. Specialized New Way OEM replacement parts and certified repair services are critical to keeping heavy-duty collection trucks on their routes without interruption. Maintaining a reliable supply of OEM parts and specialized service capacity prevents missed collection routes, reduces fleet downtime, and eliminates neighborhood waste accumulation, thereby safeguarding public health, sanitation, and community cleanliness.
Gaskin Service is the only regional authorized dealer for New Way OEM parts and specialized equipment services. Utilizing non-OEM parts or uncertified service technicians risks voiding manufacturer warranties, causing premature equipment failure, and increasing long-term repair costs. Suspending competitive bidding to execute Amendment No. 1 is in the City's best interest because it secures essential equipment capacity, maintains standardized fleet assets, and prevents operational halts.
Increasing the not-to-exceed contract limit from $249,000 to $1,000,000 provides necessary multi-year contract capacity, but does not obligate the City to spend the full amount. All expenditures under this agreement remain subject to annual City Council budget authorizations and available operational funds
End
FinancialConsiderations
Financial Considerations: Sufficient funding is available in the Department of Public Works, Fleet Management Division’s FY 2026/27 approved operating budget (Fleet Fund 6501) to support purchases through June 30, 2027. Any purchases made after that date will be contingent upon funding availability in the applicable fiscal year’s adopted budget.
End
LocalBusinessEnterprise
Local Business Enterprise (LBE): Ray Gaskin Service is a Local Business Enterprise (LBE).
End