The Public Works Department Vehicle Maintenance Division is responsible for maintaining the City’s fleet of vehicles and equipment. On November 10, 2020, the City Council approved a purchase order to Stommel Inc. dba Lehr Auto in the amount of $175,000 per year for three (3) years with the option to extend for two (2) more years for a grand total of $875,000. Due to increased costs in materials and labor, along with an unexpected increase in the number of patrol vehicles needing to be outfitted, the purchase order has been exhausted with open unpaid invoices and vehicles that are still at the vendor being built.

Vehicle Maintenance is projecting an increase of $75,000 for the remainder of the current year's purchase order as well as an increase of the remaining three (3) years that were approved by the City Council.

The financial impact to the Fleet Management Fund would be $75,000, for a total of $250,000. There is no impact to the General Fund.

Due to this increase, an additional $75,000 will need to be appropriated from the Fleet Management Fund to the Fiscal Year 21/22 and 22/23 budget.

It is recommended that City Council:

• Authorize an increase to the current purchase order to Stommel Inc. dba Lehr Auto in the amount of $75,000 for a total of $250,000, and an increase of $75,000 per year for the remaining three (3) years; and

• Authorize the appropriation of $75,000 from the Fleet Management Fund to the Fiscal Year 21/22 and 22/23 Budget.

By: Steve Sudduth, Equipment Maintenance Supervisor