CITY COUNCIL STAFF REPORT
DATE: OCTOBER 14, 2026 CONSENT CALENDAR
SUBJECT: APPROVE THE ISSUANCE OF A PURCHASE ORDER TO VOLVO
CONSTRUCTION EQUIPMENT & SERVICES FOR THE PURCHASE OF
ONE (1) VOLVO WHEEL LOADER
FROM: Scott C. Stiles, City Manager
BY: David McAbee, Director of Public Works
SUMMARY:
This action will authorize issuance of a purchase order for the purchase of one (1) Volvo Wheel Loader in an amount not to exceed $309,579.70, inclusive of a 10% contingency, through the national Sourcewell Cooperative Contract No. 011723-VCE.
RECOMMENDATION:
1) Approve the issuance of a purchase order to Volvo Construction Equipment & Services for the purchase of one (1) new 2026 Volvo Wheel Loader, in an amount not to exceed $309,579.70, inclusive of a 10% contingency. 2) After delivery of the new Wheel Loader, declare the existing Wheel Loader (Unit 6101E) being replaced as surplus, waive the equipment requirements of Chapter
7.07.020 (5) of the Palm Springs Municipal Code and approve the surplus equipment to go directly to auction as authorized by the City Manager or designee. 3) Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment A), Volvo Construction Equipment & Services is registered in the state of California and owned by SABA Holding Company, LLC, a publicly traded company listed on Nasdaq Stockholm.
BACKGROUND:
On June 5, 1996, the City Council adopted Resolution No. 18834 (Attachment B), establishing a new Equipment Replacement Policy. This policy outlined the requirements to replace vehicles depending on the type of vehicle, age, and mileage. A copy of the resolution is included in the attachments to this report. However, in the past economic City Council Staff Report
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Authorize The Purchase of One (1) Volvo Wheel Loader.
recession, the City Council suspended regular vehicle replacements, allowing replacements only on an emergency basis. This created a backlog of vehicles that have higher mileage and worn conditions requiring replacement. In recent years the City Council has authorized the purchase of new vehicles to replace existing vehicles, and to add vehicles for new positions that require a vehicle, helping to reduce the backlog of replacements/purchases.
The Public Works Department currently operates and maintains a 2015 Caterpillar wheel loader (6101E); however, the unit has reached the end of its useful service life. Repair and maintenance costs have continued to increase, resulting in reduced reliability, higher downtime, and increased operational impacts to service delivery. Replacement of this equipment is necessary to ensure safe, efficient, and cost-effective operations.
STAFF ANALYSIS:
As the age of the City’s existing fleet of vehicles increases, the annual cost to maintain these vehicles also increases. Staff monitor the ongoing operational and maintenance cost of its older vehicles and have identified a piece of equipment within inventory that should be replaced with new equipment given the accumulated cost of repairs in comparison to the current value of the vehicle.
In accordance with City of Palm Springs Municipal Code Chapter 7.03.09, “Special Procurement Methods,” Section 5, “Cooperative Purchasing Programs,” the City Council may authorize the acquisition of supplies or services through a joint powers or other cooperative purchasing program with a public entity or association of public agencies or officials, provided that the vendor selected has been selected through a competitive process and the department finds that the competitive process is similar to that contained in Title 7 or adequate to protect the public interest, and that due to economies of scale, the nature of the product, or market conditions, the price of the supplies or services is likely to be less through the cooperative purchase than through the City’s independent purchasing pursuant to Title 7.
Sourcewell is a public agency that conducts competitive solicitations and awards contracts to qualified vendors, allowing participating agencies to benefit from volume pricing and streamlined procurement processes. This cooperative purchasing arrangement provides competitive pricing and efficient procurement to support the operational needs of the Public Works Department utilizing Sourcewell’s Cooperative Contract No. 011723-VCE, to purchase from Volvo Construction Equipment and Services for one (1) new 2026 Volvo Wheel Loader.
Public Works:
Public Works has 1 existing piece of equipment that is 11 years old and requires replacement.
City Council Staff Report
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Authorize The Purchase of One (1) Volvo Wheel Loader.
Existing Unit # Year Make/Model
6101E 2015 Caterpillar Wheel Loader
This equipment is being replaced with the equipment shown below:
Replacement Make/Model Cost
One (1) 2026 Volvo Wheel Loader $281,436.09
Contingency 10% $28,143.61
Total Estimated Cost $309,579.70
*Vehicle Year, Make and Model may change due to availability.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.
FISCAL IMPACT:
Sufficient funding for this purchase is available in the Motor Vehicle fund accounts:
• 5106560-60020
• 2606560-60020
REVIEWED BY:
Assistant Director of Public Works: Daniel Martinez
Director of Public Works: David McAbee
Procurement and Contracting Manager: Tabitha Richards
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
City Council Staff Report
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Authorize The Purchase of One (1) Volvo Wheel Loader.
ATTACHMENTS:
A. Public Integrity Disclosure
B. Resolution No. 18834