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Assistant Public Works Director Brian Yanes recommends one-year rental agreement for refuse trucks
Summary
Assistant Public Works Director Brian Yanes told the Public Works and Transportation Committee that staff recommends the City Council approve a one-year rental agreement with Acre Equipment Company beginning July 1, 2026, not to exceed $2.8 million for the first year and $8.4 million if two one-year options are exercised; funding is included in the FY 2026–27 ER fund budget.
Assistant Public Works Director Brian Yanes told the Public Works and Transportation Committee on June 12 that staff recommends the City Council approve and authorize the mayor to execute a rental agreement with Acre Equipment Company to rent refuse collection vehicles beginning July 1, 2026, with an initial one-year term and two optional one-year extensions through June 30, 2029.
Yanes said the initial year cost would not exceed $2.8 million and the total contract value if all extensions are exercised would not exceed $8.4 million. "The transition is projected to yield an annual savings of approximately 150,000," he said, and staff also cited an immediate initial delivery-charge savings of $9,250 per vehicle.
The recommendation responds to an aging city fleet and regulatory and maintenance pressures that reduce vehicle availability. Yanes said the city currently maintains 74 city-owned collection vehicles but many have exceeded their optimal service life, increasing mechanical failures and downtime. He noted U.S. Department of Transportation regulations require comprehensive safety inspections every 90 days, which contributes to scheduled downtime.
Staff described the procurement as a dual-path approach: renting vehicles now to ensure uninterrupted six-day collection service while concurrently working with a separate vendor to procure a permanent city-owned fleet of site loaders, front-end loaders and roll-off vehicles. The proposed Acre agreement includes an optional buy option at the end of the rental period; Yanes said staff will conduct a cost–benefit and feasibility analysis before exercising any buy option.
The agreement is structured to leverage the Sourcewell cooperative purchasing contract as a single-source procurement vehicle. According to staff pricing assumptions, the annual cost estimate is based on an average of 21 rental vehicles per month at $11,000 per vehicle per month. Staff also noted that Acre's rental vehicles operate on compressed natural gas (CNG), which the presentation cited as providing lower fuel cost and reduced emissions compared with gasoline and diesel vehicles.
Funding for the initial year is included in the FY 2026–27 Environmental Resources fund (fund 631) and will be considered by the City Council in June; subsequent fiscal-year funding would be requested through the annual budget process. The transcript records staff recommendation and financial details but does not record a formal council vote on the agreement in the provided text.
