HomeMy WebLinkAboutStaff Report 2509-5246CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, February 09, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
4.Adoption of a Resolution Authorizing the City Manager to Negotiate and Execute
Purchase Orders with To-Be-Determined Vendor(s) to Procure Nine Vehicle/Equipment
Purchases for a Total Not-to-Exceed Amount of $1,430,000; Approval of a Fourth
Amended and Restated Purchase Order Number 4521000199 with Altec Industries, Inc.,
to Increase the Purchase Order Amount by $94,911 to a New Not-to Exceed Amount of
$1,167,986 for Two Vehicle/Equipment Purchases; and Amend the FY 2026 Budget in the
Vehicle Replacement and Maintenance Fund and Electric Funds; CEQA Status – Not a
Project
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: February 9, 2026
Report #:2509-5246
TITLE
Adoption of a Resolution Authorizing the City Manager to Negotiate and Execute Purchase
Orders with To-Be-Determined Vendor(s) to Procure Nine Vehicle/Equipment Purchases for a
Total Not-to-Exceed Amount of $1,430,000; Approval of a Fourth Amended and Restated
Purchase Order Number 4521000199 with Altec Industries, Inc., to Increase the Purchase Order
Amount by $94,911 to a New Not-to Exceed Amount of $1,167,986 for Two Vehicle/Equipment
Purchases; and Amend the FY 2026 Budget in the Vehicle Replacement and Maintenance Fund
and Electric Funds; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt a resolution to authorize the City Manager or their designee to:
a. Negotiate and execute a purchase order in an amount not to exceed $300,000
with a to-be-determined vendor for the purchase of One Cable Handling Trailer;
b. Negotiate and execute a purchase order in an amount not to exceed $430,000
with a to-be-determined vendor for the purchase of One CAT Wheel Loader;
c. Negotiate and execute a purchase order(s) in an amount not to exceed $700,000
with a to-be-determined vendor(s) for the purchase of 7 patrol vehicles; and
2. Approve and authorize the City Manager or their designee to amend Purchase Order No.
451000199 with Altec Industries, Inc., to increase the previously approved Purchase
Order amount by $94,911, for a new total not-to-exceed amount of $1,167,986, which
includes a 5% contingency in the amount of $55,618 for unforeseen cost increases, for
the purchase of two 2025 Peterbilt 548 Hydraulic Digger Derricks, utilizing a cooperative
purchase agreement via Sourcewell, a cooperative purchasing agency serving
government and not-for-profit organizations; and
3. Amend the Fiscal Year 2026 Budget Appropriation (by a 2/3 vote) for
a. The Utilities Electric Fund by:
i. Increasing the transfer to the Vehicle Replacement and Maintenance
Fund in the amount of $94,911; and
ii. Decreasing the Electric Distribution Reserve in the amount of $94,911;
and
b. The Vehicle Replacement and Maintenance Fund by:
i. Increasing the transfer from the Utilities Electric Fund by $94,911; and
ii. Increasing the expense appropriation for the Scheduled Vehicle and
Equipment Replacement Fiscal Year 2020 project (VR-20000) by $94,911.
EXECUTIVE SUMMARY
This report seeks City Council authorization for the purchase of essential fleet equipment
previously approved as part of the Fiscal Year 2026 Capital Budget, including one cable reel
trailer, one Caterpillar wheel loader, and seven police patrol vehicles. Delegating purchase
authority to the City Manager will enable staff to secure these units within rapidly changing and
often narrow industry ordering windows, ensuring timely replacement and continued
operational reliability. The report also requests approval of a fourth amended and restated
purchase order with Altec Industries, Inc., to increase funding by $94,911 for two hydraulic
digger derricks, correcting a sales tax omission identified from the prior Council action in Staff
Report #2504-45671. Budget amendments are included to align appropriations with updated
costs. Together, these actions support continuity of critical City services, maintain compliance
with the fleet replacement policy, and advance the City Council’s long-term sustainability and
fleet electrification goals where feasible.
BACKGROUND
The Vehicle and Equipment Use, Maintenance, and Replacement Policy section 4-1 provides for
the on-going replacement of City fleet vehicles and equipment. Replacements are scheduled
using guidelines based on age, mileage accumulation, and obsolescence. Policy 4-1 prescribes a
replacement interval of 5 years or 100,000 miles for full-size police patrol vehicles and 5-15
years or 5,000 hours for trailers and miscellaneous construction equipment.
Over the last several years, the City has experienced limited vehicle availability, rising costs, and
very narrow ordering windows due to ongoing supply chain challenges in the automotive and
equipment industries. These constraints have made it increasingly difficult to complete fleet
replacements in a timely manner, as ordering windows often close before staff can complete
1 City Council, September 15, 2025; Agenda Item #7; SR #2509-4567,
https://portal.laserfiche.com/Portal/DocView.aspx?id=225740&repo=r-704298fc&searchid=cd6a53fb-c52b-40ae-
819a-afdfa2b3f9e0
the standard procurement and Council approval process. These replacements were previously
reviewed and approved by City Council as part of the adopted Fiscal Year 2026 Capital Budget.
ANALYSIS
amended and restated purchase order, with an increase of $94,911 to correct for this error.
This adjustment will enable the City to proceed with the purchase as intended and maintain
operational continuity for utility field operations.
Police Patrol Vehicles (7 units): Two of the seven vehicles will be fully electric Rivian R1S
vehicles, expanding the use of zero-emission vehicles in the Police Department. Five
patrol vehicles will be hybrid gasoline-electric models, selected to provide emissions
reductions while maintaining the range, refueling flexibility, and reliability required for
multi-shift patrol operations. EV charging capacity at the Public Safety Building
continues to be evaluated and expanded.
Caterpillar Wheel Loader (1 unit): There is no commercially available electric wheel
loader that can reliably meet the City’s operational requirements. The replacement will
be diesel-powered and is necessary to ensure continuity of critical Utilities and Public
Works operations.
Hydraulic Digger Derricks (2 units): The hydraulic digger derricks are diesel-powered; no
electric or hybrid alternatives perform the necessary utility line work. Staff will continue
to monitor advancements in zero-emission utility truck technologies for future
replacements.
authorized may utilize a cooperative purchasing agreement, such as Sourcewell, in lieu of
conducting competitive solicitations, allowed under PAMC section 2.30.360 (j), and/ or may
include formal solicitations as would otherwise be required by PAMC section 2.30.310 (b). The
procurement method for the vehicles will also be determined at a later date. As the order
window is often short, this delegation to the City Manager allows staff to move quickly with the
dealer to secure the vehicles whether through bidding or a cooperative purchasing agreement
process.
FISCAL/RESOURCE IMPACT
also be increased by $94,911. As a result of the adjustments, the average cost of each truck is
now estimated at over $556,000, when originally, they were estimated at $316,933 in 2021.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
Quote Number:1512085
Opportunity Number:23081082
Sourcewell Contract #:110421-ALT
Date:9/26/2025
REFERENCE ALTEC MODEL
Sourcewell
Price
(A.)
1 DH50-E 50' Electric / Hydraulic Derrick, Rear Mount (DH50E)$5,451
(A1.)
1 RADIO RADIO REMOTE CONTROLS (Required with Platfrom)$16,414
2 BOSL Boom Out of Stow Indicator for Lower Boom $385
3 UHPP UHPP – Hydraulic pole puller. Used to pull poles for replacement.Comes with 7’ of
1/2” high tensile chain and a base. Powered bylower tool circuit at 8 gpm. $2,592
4
HRS
HOSE REEL. Spring Loaded for Mounting 25’ Conductive Hoses with HTMA Quick
Couplings that Come with the Lower Tool Circuit. When it is an available option,
Lower Tool Circuit Must be Ordered Separately.
$2,088
5 POP1 Plastic Outrigger Pad, 24" x 24" x 1" (Pair)$597
6 SPOT4 SIX (6) POINT STROBE SYSTEM (LED)$1,220
7 DLB2 Directional Light Bar (Amber, 42"L, Super-LED)$2,254
8 SPOT6 Remote Spot Light, LED, Permanent Mount, With Wireless Dash Mounted Controls
And Programmable Wireless Remote $1,066
PSWI2 Inverter with minimum 3000W 120V @ 25A pure sine wave output, hardwired to
outlets and 12VDC input.$3,766
BATSTOR Deep Cycle Auxiliary Battery for Vented Applications & Remote Steel Enclosure $2,154
VRI 120 Volt GFCI Receptacle, Includes Weather-Resistant Enclosure (3)$1,095
VCAM Backup Camera System $1,313
SOURCEWELL OPTIONS TOTAL:$370,532
(B.)
1 UNIT Custom Unit Options $13,151
2 UNIT & HYDRAULIC ACC Unit/Hydraulic Custom options $8,163
3 BODY Custom body ILO standard body $27,938
4 BODY & CHASSIS ACC Custom body & chassis accessories $10,867
5 ELECTRICAL Custom electrical options $6,223
6 FINISHING Paint, Non-skid, Inbound Freight, & Inspection $25,436
7 CHASSIS MY27 Peterbilt 548 $55,095
8 OTHER $0
OPEN MARKET OPTIONS TOTAL:$146,873
SUB-TOTAL FOR UNIT/BODY/CHASSIS:$517,405.00
Delivery to Customer:
Estimated Taxes (Delivery non-taxable):
FET:
CA Doc/Admin/Tire Fees:
$715.00
$47,213.21
TBD
$542.50
Extended Warranty: $12,160.00
Sentry Training $4,552.96
TOTAL FOR UNIT/BODY/CHASSIS: $582,588.67
BUILD LOCATION: TBD
WARRANTY: Standard Altec Warranty for Aerials and Derricks - One (1) year parts warranty One (1) year labor warranty Ninety (90)
TRADE-IN:Please ask your Altec Account Manager for more information
CHASSIS: Per Altec Commercial Standard
DELIVERY: No later than ___24__months ARO, FOB Customer Location
TERMS: Net 30 days
BEST VALUE: Altec boasts the following "Best Value" features: Altec ISO Grip Controls for Extra Protection, Only Lifetime Warranty on
Structural Components in Industry, Largest Service Network in Industry (Domestic and Overseas), Altec SENTRY Web/CD Based
Training, Dedicated/Direct Gov't Sales Manager, In-Service Training with Every Order.
TO ORDER: To order, please contact the Altec Account Manager listed above.
**Pricing valid for 45 days**
NOTES
PAINT COLOR: White to match chassis, unless otherwise specified
Quoted by: Allyson Day
Altec Account Manager: Michael Russell
Email: allyson.day@altec.com
PRICING: Altec will make every effort to honor this quotation, subject to the following provisions. Prices for equipment with production
start dates 12 months and beyond are budgetary only due to irregular cost inflation and market volatility. These prices will be reviewed
based on market conditions and confirmed closer to the production date. Quotes and orders with chassis model year beyond the current
open order bank, should be considered estimates only. Altec's turn-key pricing is subject to change in accordance with chassis pricing
received from the OEM. Chassis model year, specifications and price will be reviewed and confirmed when specific model year
information becomes available from the OEM and that chassis price difference will be passed through to the customer.
Altec Industries, Inc.
SOURCEWELL OPTIONS ON CONTRACT (Unit)
SOURCEWELL OPTIONS ON CONTRACT (General)
OPEN MARKET ITEMS (Customer Requested)
DH50
Quoted for: City of Palo Alto
Customer Contact: Danitra Bahlman
Phone: / Email: 650-496-5920 / danitra.bahlman@cityofpaloalto.org
City of Palo Alto DH50E Sourcewell Q1512085-7- Peterbilt Chassis
Quote Number:1666173
Opportunity Number:24118673
Sourcewell Contract #:110421-ALT
Date:9/26/2025
REFERENCE ALTEC MODEL
Sourcewell
Price
(A.)
1 D3060E-JIB 10ft. Material Handling Jib $1,584
(A1.)
1 BOSL Boom Out of Stow Indicator for Lower Boom $385
2 BOSU Boom Out of Stow Inficator for Upper Boom $385
3 MCR1 JIB ADAPTER. Jib adapter is for Altec 4.1" x 4.1" Square Jibs (Square to Round
Conversion)$871
4 UA18 18” Diameter Dirt Auger Full Flight $1,912
5 UHPP UHPP – Hydraulic pole puller. Used to pull poles for replacement.Comes with 7’ of
1/2” high tensile chain and a base. Powered bylower tool circuit at 8 gpm. $2,592
6 RBS Rubber Belted Step $546
7 POP1 Plastic Outrigger Pad, 24" x 24" x 1" (Pair x2)$1,194
8 CH-R Cone Holder,Ring Style (qty 2)$628
9 SPOT4 SIX (6) POINT STROBE SYSTEM (LED)$1,220
10 DLB2 Directional Light Bar (Amber, 47"L, Super-LED)$2,254
11 SPOT6 Remote Spot Light, LED, Permanent Mount, With Wireless Dash Mounted Controls
And Programmable Wireless Remote $1,066
12 VCAM Backup Camera System $1,313
13 PSWI2 Inverter with minimum 3000W 120V @ 25A pure sine wave output, hardwired to
outlets and 12VDC input.$3,766
14 BATSTOR Deep Cycle Auxiliary Battery for Vented Applications & Remote Steel Enclosure (2)$4,308
15 VRI 120 Volt GFCI Receptacle, Includes Weather-Resistant Enclosure (3)$1,095
16 PTO-HM PTO Hour Meter Digital with 10,000 Hour Display $182
SOURCEWELL OPTIONS TOTAL:$379,042
(B.)
1 UNIT Custom unit options $8,130
2 UNIT & HYDRAULIC ACC Unit/Hydraulic Custom options $11,278
3 BODY Custom body ILO preferred body $15,244
4 BODY & CHASSIS ACC Custom body & chassis accessories $6,336
5 ELECTRICAL Custom electrical options $4,879
6 FINISHING Paint, non-skid, inbound freight, & inspection $27,251
OPEN MARKET OPTIONS TOTAL:$94,141
SUB-TOTAL FOR UNIT/BODY/CHASSIS:$473,183.00
Delivery to Customer:
Estimated Taxes (Delivery non-taxable):
FET:
CA Doc/Admin/Tire Fees:
$715.00
$43,177.95
TBD
$542.50
Extended Warranty: $12,160.00
TOTAL FOR UNIT/BODY/CHASSIS: $529,778.45
Altec Industries, Inc.
SOURCEWELL OPTIONS ON CONTRACT (Unit)
SOURCEWELL OPTIONS ON CONTRACT (General)
OPEN MARKET ITEMS (Customer Requested)
D3060E
Quoted for: City of Palo Alto
Customer Contact: Danitra Bahlman
Phone: / Email: 650-496-5920 / danitra.bahlman@cityofpaloalto.org
**Pricing valid for 45 days**
NOTES
PAINT COLOR: White to match chassis, unless otherwise specified
Quoted by: Allyson Day
Altec Account Manager: Michael Russell
Email: allyson.day@altec.com
PRICING: Altec will make every effort to honor this quotation, subject to the following provisions. Prices for equipment with production
start dates 12 months and beyond are budgetary only due to irregular cost inflation and market volatility. These prices will be reviewed
based on market conditions and confirmed closer to the production date. Quotes and orders with chassis model year beyond the current
open order bank, should be considered estimates only. Altec's turn-key pricing is subject to change in accordance with chassis pricing
received from the OEM. Chassis model year, specifications and price will be reviewed and confirmed when specific model year
information becomes available from the OEM and that chassis price difference will be passed through to the customer.
BUILD LOCATION: TBD
WARRANTY: Standard Altec Warranty for Aerials and Derricks - One (1) year parts warranty One (1) year labor warranty Ninety (90)
TRADE-IN:Please ask your Altec Account Manager for more information
CHASSIS: Per Altec Commercial Standard
DELIVERY: No later than ___24__months ARO, FOB Customer Location
TERMS: Net 30 days
BEST VALUE: Altec boasts the following "Best Value" features: Altec ISO Grip Controls for Extra Protection, Only Lifetime Warranty on
Structural Components in Industry, Largest Service Network in Industry (Domestic and Overseas), Altec SENTRY Web/CD Based
Training, Dedicated/Direct Gov't Sales Manager, In-Service Training with Every Order.
TO ORDER: To order, please contact the Altec Account Manager listed above.
City of Palo Alto Sourcewell - D3060E -Q1666173-2
*NOT YET APPROVED*
1
0013_20260121_mv30
Resolution No. ____
Resolution of the Council of the City of Palo Alto Authorizing the City Manager to
Negotiate and Execute Purchase Orders with To-Be-Determined Vendor(s) to
Procure One Cable Handling Trailer, One Caterpillar Wheel Loader, and Seven
Police Patrol Vehicles for a One-Time Purchase with a Total Not-to-Exceed
Amount of $1,430,000
R E C I T A L S
A. The Vehicle and Equipment Use, Maintenance, and Replacement Policy, Section 4-1, provides
for the on-going replacement of City fleet vehicles and equipment, and prescribes
replacement intervals based on age, mileage accumulation, hours of use, and obsolescence,
including a replacement interval of five (5) years or 100,000 miles for full-size police patrol
vehicles, and five (5) to fifteen (15) years or 5,000 hours for trailers and miscellaneous
construction equipment.
B. The City’s fleet includes one cable handling trailer, one Caterpillar wheel loader, and seven
police patrol vehicles that meet or exceed the applicable replacement criteria and are
programmed for replacement in Fiscal Year 2026.
C. Over the last several years, the City has experienced limited vehicle and equipment
availability, rising costs, and very narrow ordering windows due to ongoing supply chain
challenges in the automotive and heavy equipment industries, making it increasingly difficult
to complete fleet replacements in a timely manner through the standard procurement and
Council approval process.
D. Delegating authority to the City Manager, as permitted under the Municipal Code, to
negotiate and execute purchase orders for the replacement equipment described above will
allow the City to act efficiently and expeditiously when ordering windows become available,
while remaining consistent with Council policy and adopted fleet replacement plans.
NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The City Manager or their designee is hereby authorized to negotiate and
execute purchase orders with vendors, yet to be determined, to procure one (1) cable handling
trailer, one (1) Caterpillar wheel loader, and seven (7) police patrol vehicles, for a one-time
purchase in a total amount not to exceed $1,430,000.
//
//
*NOT YET APPROVED*
2
0013_20260121_mv30
SECTION 2. The Council finds that adoption of this resolution is not a project under the
California Environmental Quality Act (CEQA) Guidelines section 15378(b)(5), as it is an
organizational or administrative activity that will not result in direct or indirect physical changes
in the environment, and therefore no environmental review is required.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________
Assistant City Attorney City Manager