Agenda Item No: N.4
AGENDA REPORT
DATE: March 4, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-33 PW Amended Vehicle and Equipment Purchases for Fiscal Year 2024-2025
Approving the Amended Vehicle and Equipment Purchases for Fiscal Year 2024-2025 and Authorizing an Update to the Fiscal Year 2024-2025 Budget
Funding Source: $1,312,063; Vehicle Replacement Fund
Contact: David Renschler, (707) 428-7414
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The Public Works Department needs to replace a specialized utility truck for the Water Division and a VacCon sewer truck for the Sewer Division. While the cost of the two trucks was included in the fiscal year (FY) 2024 -2025 budget, the quotes came back substantially higher than budgeted. The adoption of this resolution would amend the FY 2024-2025 Vehicle and Equipment Purchases list to include the extra funding for these two trucks and provide an update to the FY 2024-2025 Budget.
DISCUSSION
Public Works Unit #13260 is a 2013 International Class 7 truck with a specialized utility body that requires replacement. This specialized truck is used by the Public Works Department Water Division for callouts, such as water main breaks, and is outfitted for these emergency situations.
Public Works Unit #17311 is a 2017 VacCon specialized combination sewer cleaning truck and needs replacement. This truck is a specialized Freightliner chassis with a special VacCon body and outfitting.
On June 4, 2024, the council adopted Resolution No. 2024-137 approving the purchase of these replacement vehicles. When pricing was obtained from vendors for the purchase of the se
replacement vehicles, the quotes were substantially higher than previous purchases. The City purchased a VacCon combo sewer truck in 2017 and again in 2022 with a 23.5% increase over those five years. The difference between the 2022 purchase and now is an increase of 48% in less than three years. Unit #13260 has had a price increase of 2 16.5% since the City last bought one of these specialized trucks 12 years ago. Staff is requesting that the council approve the purchases and amend the budgeted amount for FY 2024-2025.
Staff recommends the adoption of the attached resolution to amend the FY 2024-2025 Vehicle and Equipment Purchases as provided in Exhibit B. Supply chain issues over the past year have caused delays in the procurement of specialty products, such as vehicles, and r aised prices. To account for potential price increases after placing the order, staff recommend a not-to-exceed 20% price contingency. Additional costs shall be paid out of the Public Works D epartment’s operating budget.
FINANCIAL IMPACT
The total cost of the two specialized trucks is for an amount not to exceed $1,312,063 ($1,093,386 base cost + $218,677 contingency). This purchase exceeds the approved FY 2024 - 2025 Budget and requires a budget adjustment to increase appropriations to the Vehicle Replacement Fund (Fund 512) of $141,603 for the Sewer Vehicle Replac ement Fund (Organization Code 51260308) and $118,103 for the Water Distribution Vehicle Replacement Fund (51260602). This will also require a transfer of $118,103 from the Water Utility Fund (Fund 461) into the Vehicle Replacement Fund (Fund 512).
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may reject this acquisition; however, this is not recommended due to the need to provide efficient water and sewer services.
COORDINATED WITH
N/A
STAFF CONTACT
David Renschler, Fleet Division Manager
(707) 428-7414
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Exhibit B