STAFF REPORT
City of Lancaster
CC 13
10/14/2025
TN
Date: October 14, 2025
To: Mayor Parris and City Council Members
From: Marissa Diaz, Director - Public Works
Michael Harne, Assistant Director – Maintenance Services Subject: Fleet Program Single Vendor Expenditure Authority Increase and Appropriation Recommendation:
1. Increase the City Manager’s, or his designee, single-vendor expenditure authority to the budgeted amount for the fleet fund capital asset purchase and lease accounts through the end of FY 2025-2026, and require the City Manager to report purchases in excess of the purchasing authority to the City Council in writing.
2. Authorize the City Manager, or his designee, to execute and sign all documents.
G.C. Section 84308: No
Fiscal Impact:
Sufficient funds are available in the City Council-approved appropriations for the FY 2025-2026 Maintenance Services Operating Budget under account numbers 111-44000-5330, 111-44000- 6201, 111-44000-8100, 111-44000-8200, 111-44097-8100, and 111-44097-8200.
Background:
The City’s annual vehicle and equipment needs often coincide with a highly competitive market, where inventory is limited and build times can be extensive. Maintenance Services staff actively monitor availability and move quickly to secure vehicles, often navigating this process 10–20 times each year.
The City Manager’s current expenditure authority places limits on the number of vehicles that can be purchased from a single dealership. In some cases, this can prevent the City from completing a purchase even when favorable pricing is available. Because dealerships rarely hold vehicles while the City’s internal approval processes are completed, this expenditure authority helps the City secure inventory, lock in competitive pricing, and reduce the risk of vehicle downtime.
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To address this, the Maintenance Services Division is proposing an increase in the City Manager’s expenditure authority for single-vendor vehicle and equipment purchases. This increase would align with the approved capital asset budget for fleet funds and allow staff to act quickly when working with vendors to secure the best possible deals. The proposed adjustment would streamline the vehicle procurement process while maintaining compliance with the City’s purchasing policies. Maintenance Services staff will continue to follow the requirements of the Lancaster Municipal Code, as well as the Purchasing Department’s approved procurement methods, such as quotes, cooperative agreements, or solicitations, to ensure the vendor offering the best value is selected. Once identified, staff will work with the selected vendor to finalize the purchase. If the City Manager approves purchases from a single vendor that exceeds his established expenditure authority (currently $125,000.00, as set by ordinance), he will notify the City Council in writing for each such transaction in accordance with Council policy.
We respectfully request that the Council approve this increase in single-vendor expenditure authority.
HA:sm