DATE:
June 3, 2025
TO:
Mayor and City Council Members
Chair and Board Members, Hesperia Water District
FROM:
Rachel Molina, City Manager
BY:
Cassandra Sanchez, Director of Public Works / City Engineer Brian Blackwell, Streets Operations Manager
SUBJECT:
G & M Automotive Center, Inc. Contract Amendment
RECOMMENDED ACTION
It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to increase the contract with G & M Automotive Center, Inc. for $50,000 for a new not-to-exceed amount of $925,000 for vehicle maintenance and repairs through the remainder of Fiscal Year (FY) 2024-25, ending June 30, 2025.
BACKGROUND
Preventative and corrective maintenance is required for the City’s eighty-three (83) light-duty vehicles and thirty-four (34) super-duty and heavier on-road vehicles and equipment. Preventive maintenance supports fleet reliability, extends vehicle life, and reduces long-term repair costs.
While a concerted effort has been made to modernize the fleet, thirty-five vehicles—approximately 30%—were manufactured before 2010. For example, vehicles assigned to Building Maintenance average 20 years old, while those in Streets and Traffic average 13 and 12 years old, respectively. Vehicles used by Code Enforcement and Animal Control have a median age of 11 years, with several animal carrier service bodies exceeding 20 years. The City added 17 new or replacement vehicles during the previous fiscal year to address this issue, marking a key step toward fleet modernization.
ISSUES/ANALYSIS
Public Works issued requests for bids (RFBs) for FY 2022-23 to local High Desert vendors capable of providing vehicle maintenance services. The fleet was divided into three categories to encourage broad participation and bid separately. G & M Automotive Center, Inc., a Hesperia-based business, was the lowest responsive and responsible bidder in each category and has continued to provide contracted maintenance services.
While G & M has held its labor rate steady at $75/hour throughout the contract term, the cost of parts has increased approximately 10% due to inflation. Additionally, older vehicles demand more frequent and costly repairs. Maintenance costs typically comprise roughly 65% parts and 35% labor.
A review of FY 2014-15 maintenance expenditures shows a ten-year average of approximately $350,000 annually. The three highest expenditure years—FY 2016-17 ($390,544), FY 2017-18 ($545,804), and FY 2018-19 ($448,952)—reflect the operational and financial burden of maintaining an aging fleet. Since that period, the City has implemented strategic fleet replacement efforts, including the addition of 17 new or replacement vehicles in the prior fiscal year, which has contributed to a downward trend in maintenance costs. For FY 2024-25, expenditures are projected at approximately $240,000, significantly below the historical average. This trend highlights the importance of ongoing fleet modernization, although continued reliance on older vehicles is expected to lead to increased maintenance needs over time.
Vehicle maintenance and repairs will be rebid for services during FY 2025-26, beginning July 1, 2025, to ensure competitive pricing and broad vendor participation in the future.
CITY GOAL SUPPORTED BY THIS ITEM
Public Safety - Ensure that public safety resources adequately protect our community.
Financial Health - Maintain a balanced budget and adequate reserves.
FISCAL IMPACT
Sufficient funding has been included in the Fiscal Year 2024-25 Budget.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENTS
None.
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and City Council Members, Chair and Board Members, Hesperia Water District G & M Automotive Center, Inc. Contract Amendment
June 3, 2025