Title
[Contract Supplement] Fleet Vehicle Purchases [Published for 10-Day Review 04/24/2026]
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FileID
File ID: 2026-00864
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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 No. 6 to Contract No. 2023-0564 with Elk Grove Ford for the purchase of fleet Ford light-duty vehicles, increasing the amount of the contract by $3,000,000 for a revised total contract not-to-exceed amount of $10,000,000 and extending the contract term to May 15, 2028.
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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-Supplement Contract No. 6
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Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works, Fleet Management Division, procures vehicles to meet annual replacement schedules and to fulfill new unit requests approved through the City’s budget process. When fleet units reach the end of their useful life, they are identified and budgeted for replacement with department and City Council approval. While we continue to proactively evaluate fleet needs and ensure operational readiness, no funding has been identified and no unit replacements are being initiated at this time.
To streamline operations and reduce maintenance downtime, the Fleet Management Division has standardized the fleet with Ford products due to parts compatibility and ease of repair. On May 23, 2023, City Council suspended competitive bidding (Motion No. 2023-0127) because Elk Grove Ford was the only vendor with sufficient inventory to support timely replacement of end-of-life units. They continue to offer in-stock vehicles, enabling the City to replace aging units more quickly, reduce excessive maintenance costs, and avoid high-mileage wear. Elk Grove Ford also provides advantageous rebate options and has expanded its reach by partnering with additional dealers within a 100-mile radius, increasing available inventory.
To continue purchasing vehicles under this contract and maintain timely replacement of critical fleet units, additional contract expenditure authority is required.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with Sacramento City Code Section 3.56.090, which states that all contracts involving an expenditure of $250,000 or more require approval by City Council, and Section 4.04.20, which requires additional posting time for labor agreements and agreements greater than $1 million. This item was published for 10-Day review in compliance with 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 recommendations 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.
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Sustainability
Sustainability: The recommended purchases support the updated Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478) and comply with California Air Resources Board (CARB) regulations. The City will prioritize zero-emission vehicle models as they become available and when they meet operational needs.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The Fleet Management Division has completed thorough research to explore alternatives for procuring replacement vehicles. However, due to challenges such as limited order banks and supply chain disruptions, vehicle availability has declined over the last five years. Current vehicle orders are experiencing prolonged fulfillment times, leading to delays in delivery while in-stock vehicles are immediately available. To mitigate the impact of manufacturing issues, a multi-year contract was awarded to Elk Grove Ford. This contract ensures consistent purchase availability until the challenges surrounding vehicle production subside. Moreover, the contract aligns with the division’s objective of standardizing the fleet with Ford products, thereby promoting consistency and efficiency.
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FinancialConsiderations
Financial Considerations: Potential purchases for this supplemental contract will be made by the Department of Public Works Fiscal Year (FY) 2025/26 operating budget (Fleet Fund, Fund 6501) and charged to the appropriate multi-year operating projects (MYOPs) when procured. Sufficient funding currently exists in the Department’s FY2025/26 operating budget and the MYOP projects and is anticipated for FY25/26. No purchases will be authorized unless an available budget exists.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Elk Grove Ford is not an LBE. Goods contracts over $250,000 do not have a minimum LBE requirement.
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Background
Background: On May 23, 2023, the City received approval to enter into Contract 2023-0564 (Council File ID 2023-00519) with Elk Grove Ford through suspension of competitive bidding. The contract was initiated with a not-to-exceed amount of $900,000 for a one-year term with four optional one-year extensions. Since approval, the contract has been amended as follows:
• Supplemental Contract No. 1 (June 14, 2023 - Council File ID 2023-00848): Increased the not-to-exceed amount to $2,900,000.
• Supplemental Contract No. 2 (April 3, 2024: Extended the contract term through May 15, 2025.
• Supplemental Contract No. 3 (May 28, 2024 - Council File ID 2024-00903): Increased the not-to-exceed amount to $4,900,000.
• Supplemental Contract No. 4 (June 6, 2025): Extended the contract term through May 16, 2026.
• Supplemental Contract No. 5 (July 22, 2025 - Council File ID 2025-01334): Increased the not-to-exceed amount to $7,000,000.
Proposed Supplemental Contract No. 6 would increase the not-to-exceed amount to $10,000,000 and extend the contract through the remaining term ending May 15, 2028.
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