To: Honorable Mayor and Members of City Council
From: Julie Lucido, Public Works Director
Prepared By: Matthew Price, Maintenance Superintendent
TITLE:
Title
Fleet Replacement Schedule
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution (1) approving an Amendment No. 2 to Appendix E from the Mid Cycle Budget Fiscal Year 2024/25,Fleet Replacement Schedule, and (2) authorizing the City Manager or Public Works Director to execute contracts and agreements on behalf of the City for the purchase of replacement vehicles and equipment based on the descriptions and dollar amounts identified on the Amendment No. 2 to Appendix E in the total amount of $6,167,000 in FY2024/25, and (3) amending the Equipment Replacement Fund Reserves (66013100), Fleet Replacement General Fund (61030910), and Fleet Management Admin (61030900) Fiscal Year 2024/25 budgets as documented by Council Budget Amendment No. 95P10.
Body
DISCUSSION:
On June 20, 2023 the City Council approved the Fiscal Years 2023/24 & 2024/25 Operating & Capital Budget, including the Fleet Replacements Schedule (Appendix H in the two-year budget document). The Fiscal Year 2024/25 Fleet Replacement Schedule was revised as part of the City of Napa Mid Cycle Budget Fiscal Year 2024/25, adopted by City Council via Resolution No. 2024-061 on June 4, 2024. The revisions were included as Appendix E in the Mid Cycle Budget. Exhibit E was further revised and approved by City Council on November 19th, 2024.
The proposed action will:
- Amend the Mid Cycle Budget Fiscal Year 2024/25’s Appendix E: Fleet Replacement Schedule. The recommended revisions are incorporated in Exhibit A to the resolution attached to this report. Amendment No. 2 to Appendix E requests a $70,000 increase to the Fleet Replacement General Fund budget to reflect the Increased purchase price of two (2) Toro Mowers for the Parks and Recreation Department. Due to a significant rise in equipment costs, the previously approved authorization is insufficient to cover the replacement costs; and
- Approve a $60,000 transfer from the Equipment Replacement Fund Reserves (66013100) to the Fleet Management Admin Operating Budget (61030900) is recommended. These funds will be used to procure new tools and equipment to support fleet operations as outlined in the City of Napa Fiscal Policy relating to the Fleet Equipment Replacement Fund. Specifically, the funds will be used to procure hand and power tools to replace existing aging equipment and diagnostic tools to further expand shop capabilities; and
- Authorize the City Manager or Public Works Director to purchase vehicles and equipment identified in the attached Resolution’s Exhibit A (Amendment No. 2 to Appendix E: Fleet Replacement Schedule from the Mid Cycle Budget Fiscal Year 2024/25) in an amount not to exceed the approved updated amount for each vehicle. The purchases must comply with the provisions of Napa Municipal Code Chapter 2.91 Contracting Ordinance. This delegation of authority is important due to difficulty in procuring vehicles due to factors such as limited availability, high demand, and specific design and compatibility requirements. The delegation allows the city to expedite purchasing to be able to hold the bid prices and secure the orders. This is especially true in situations where delays could result in missed opportunities or increased additional costs to the city.
FINANCIAL IMPACTS:
The attached Resolution and Council Budget Amendment No. 95P10 includes funding for the revised Fleet Replacement Schedule and funding to procure new tools and equipment to support fleet operations:
• The total amended Fiscal Year 2024/25 Appendix E costs are $6,167,000 resulting in a net increase of $70,000 compared to the previously approved Amendment No. 1 to Appendix E (approved by City Council on November 19th, 2024). An obligation of $70,000 from the Fleet Replacement General Fund reserves (61030910) to increase the FY25 expenditures budget is recommended to fund the increased Appendix E costs.
• A $60,000 transfer from the Equipment Replacement Fund Reserves (66013100) to Fleet Management Admin Operating (61030900) is requested to procure new tools and equipment to support fleet operations.
The Equipment Replacement Fund Reserves (66013100) and Fleet Replacement General Fund (61030910) reserves each have adequate balances to cover the recommended budget amendments.
CEQA:
The Public Works Director has determined that the recommended action described in this staff report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060 (c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - Amendment No. 2 Appendix E: Fleet Replacement Schedule
EX B - Council Budget Amendment No. 95P10
NOTIFICATION:
None.