Title
Adoption of Resolution Amending the Fiscal Year 2025-26 Budget to Increase Authorized Expenditures in the Fleet Internal Service Fund for Fleet Maintenance ($250,000) and Fleet Replacement ($175,000). (Public Works 601)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
Expenditures in the Fleet Internal Service Fund (ISF), specifically within the Maintenance and Replacement divisions, are exceeding projections and are not expected to sustain operations through the end of Fiscal Year (FY) 2025-26. To maintain service levels and ensure operational readiness, staff recommends increasing the Fleet Maintenance division by $200,000 and the Fleet Replacement division by $175,000.
Fleet Services manages the operation, maintenance, and replacement of the City of Alameda's (City) vehicle and equipment fleet. Costs are allocated to departments through the Fleet ISF, which covers both actual maintenance expenses and annual contributions toward vehicle replacement based on depreciation. This structure is intended to ensure sufficient funding is available to maintain the fleet and replace vehicles at the end of their useful life.
The City's fleet includes critical heavy-duty equipment such as fire engines, hydro-vacuum sewer cleaners, public safety boats and street sweepers. Maintaining costs for these assets are inherently variable and have increased due to aging equipment, supply chain constraints and higher parts costs. Several major repairs have already occurred this fiscal year and extended lead times for replacement vehicles, particularly fire apparatus, require continued investment in existing units.
In addition, estimated vehicle replacement costs in the adopted FY 2025-26 budget were understated. Contributing factors include higher costs for electric vehicle models, increased prices for aftermarket equipment, and continued vehicle cost inflation.
BACKGROUND
Fleet Services oversees t...
Click here for full text