Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute all Documents Required to Purchase a Replacement DM47E Digger Derrick Truck from Altec, Inc. for the Public Works Department for a Total Cost of $392,975 and to Authorize an Increase in Contract Price of up to $47,000 to Account for Any Change in Purchase Price Due to Market Volatility
Staffreport
COUNCIL PRIORITY
• Infrastructure
SUMMARY
Staff recommend that the City Council approve and authorize the City Manager or her designee to execute the purchase of a replacement DM47E Digger Derrick Truck from Altec, Inc. for the Public Works Department to replace a vehicle that has reached the end of its useful life. The action also authorizes a contract increase of up to $47,000 to account for potential market-related price fluctuations, with sufficient funds available in the FY 2026 budget. A DM47E Digger Derrick Truck is a specialized Public Works and utility vehicle that acts like a drill and a crane combined into one machine.
RECOMMENDATIONS
Staff recommend that the City Council approve and authorize the City Manager or her designee to execute all documents and take all actions required to purchase a replacement DM47E Digger Derrick Truck from Altec, Inc. for the Public Works Department for a total cost of $392,975 and to authorize an increase in contract price of up to $47,000 to account for any change in purchase price due to market volatility.
BACKGROUND
The City maintains a fleet of vehicles to provide City services for various department functions. Vehicles are periodically replaced to ensure reliability and minimize costs of operation.
Public Works crews routinely perform work that requires both excavation and heavy lifting. A DM47E Digger Derrick Truck is a specialized Public Works and utility vehicle that acts like a drill and a crane combined into one machine. The truck drills deep holes into the ground, lifts and places heavy poles or equipment such as traffic signals, streetlights, and signage. The truck improves operational efficiency by reducing setup time and minimizing the need for multiple vehicles on-site. It also enhances safety by limiting manual handling of heavy materials, reducing jobsite congestion, and it is particularly valuable during emergency response situations, where timely restoration of damaged infrastructure is critical.
The DM47E Digger Derrick Truck (vehicle #791) is at the end of its useful life and the cost to maintain this unit is rising. Therefore, this vehicle is recommended for replacement.
The California Air Resource Board (CARB) has mandated that state and local government fleets phase out Internal Combustion Engine (ICE) heavy-duty vehicle purchases with interim targets of 50% zero-emission vehicle (ZEV) purchases in 2025 and 2026 and 100% of ZEV purchases in 2027. The vehicle described herein is one of eight (8) heavy-duty ICE vehicles the City will purchase between 2025 and 2026, which will be offset by eight (8) heavy-duty ZEV vehicles.
Analysis
Altec, Inc. participates in the Sourcewell cooperative purchasing and pricing program for government agencies, which satisfies the City’s public bid requirements. Altec, Inc. has provided a quote for a unit that has equal capacity and function to the current unit, #791 DM47E Digger Derrick Truck, for a total of $392,975.
While similar vehicles may appear to be available at lower prices through online listings or retail dealerships, these vehicles are outfitted with specialized equipment and upfitting, that are not included in base retail models. As a result, the total cost reflects a fully equipped, work-ready vehicle designed for long-term public service rather than a standard consumer vehicle.
Vehicle prices are frequently subject to change due to volatile market factors including trade policies, supply chain and inventory limitations, increased demand, etc. To avoid purchasing delays, Staff request authorization to issue contract amendments to the vendor for up to 12% ($47,000) of the original contract amount in case the vehicle’s price suddenly changes or has changed from the initial quotes.
Financial Impacts
This Council action will not impact fund balance because there are sufficient funds available in the FY 2026 adopted budget for this purchase in the Equipment repair & Maintenance Fund 690-16-002:
• Ford F-450 Super Cab XL: $392,975
• 12% contingency for market volatility: $47,000
Total $439,975
ATTACHMENT
A: DRAFT Resolution (Digger Derrick Truck)
B: Quote for Digger Derrick Truck
PREPARED BY: Dana Turner, Management Analyst I, Public Works Department