15-I
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Len Gorecki, Assistant City Manager/Director of Public Works Sarah Ho, Public Works Manager
SUBJECT: Consideration and possible action to authorize the City Manager to execute Amendment No. 3 to Agreement File No. 553.2, in a form approved by the City Attorney, with Transdev Fleet Services, Inc., for maintenance and repair services for the City’s fleet vehicles and equipment.
Date: January 12, 2026
EXECUTIVE SUMMARY
This action would authorize the City Manager to execute Amendment No. 3 to Agreement File No. 553.2 with Transdev Fleet Services, Inc., (“Transdev”), for continued maintenance and repair services for the City’s fleet vehicle s and equipment.
RECOMMENDATION TO CITY COUNCIL
1) Authorize the City Manager to execute Amendment No. 3 to Agreement File No. 553.2, in a form approved by the City Attorney; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
Amendment No. 3 would increase the annual cost by $18,582.35, to a total not-to-exceed amount of $288,513.81 retroactively for the contract year from November 13, 2024 to November 14, 2025 and it will increase the annual cost by an additional $13,175.69, to a not-to-exceed amount of $301,689.50 for the contract year from November 13, 2025 to November 12, 2026. Funding for these services is included in the Public Works Maintenance and Operations Budget Budget for FY2025-26 under Account Nos 010- 42054-3100 and 100-42054-3520.
DISCUSSION
On November 13, 2018, the City entered into an agreement with First Vehicle Service, Inc., now Transdev Fleet Services, Inc. for maintenance and repair services for the City’s fleet vehicles and equipment. Amendments No. 1 and No. 2 authorized Consumer Price Index (“CPI”) increases, subject to established not-to-exceed limits.
Staff Report – Amendment No. 3 to AFN 553.2
January 12, 2026
DISCUSSION – Continued
Services provided by Transdev fall into two categories: (1) routine maintenance, such as oil changes, minor repairs, and tire rotations; and (2) additional services outside the scope of routine maintenance, including major accident repairs or services that Transdev cannot perform and must be referred to a vehicle dealer.
Amendment No. 3 proposes two changes to the agreement. First , it would retroactively increase the previous contract year’s not-to-exceed amount to account for additional out- of-scope services that exceeded the original contractual limit. Second, it would update the current year’s not-to-exceed amount to reflect the Contractor’s requested CPI increase as permitted by the agreement. Approval of Amendment No. 3 will allow the City to reconcile prior-year additional service costs and implement the updated fee schedule moving forward.