HomeMy WebLinkAbout021726-08.5
ADMINISTRATIVE STAFF REPORT 8.5
TO: Mayor and Town Council February 17, 2026
SUBJECT: Resolution No. 10-2026, amending and extending a contract for fleet
maintenance with Ace Auto Repair & Tire Center, Inc.
BACKGROUND
At their June 15, 2021 meeting, the Town Council awarded a contract for fleet maintenance
services to Ace Auto Repair & Tire Center, Inc. (“Ace”) of San Ramon, California, who has
performed fleet maintenance for the Town since 2011. The contract was for a three-year
period, with two potential one-year extensions, and the amount of compensation was
$85,000 for the first year of the contract, with a provision for Consumer Price Index
adjustments each year.
DISCUSSION
Following the COVID-19 pandemic, supply chains were disrupted and it became
increasingly challenging to purchase new vehicles for the Town, including in the Police
Department. The residual effect of this has resulted in an aging fleet that has required more
maintenance to ensure vehicles remain operable and can be depended on to provide services
and keep the Town safe. As such, this year’s purchase order with Ace for $85,000 has nearly
been exhausted and a contract amendment is needed for an additional $30,000 to ensure the
ongoing dependability of the fleet through the end of the 2025/26 fiscal year.
Looking ahead, the Town’s current contract with Ace is set to expire on June 30, 2026. The
size of the Town’s fleet and scale of services required limit the potential vendors for fleet
maintenance services, evidenced by the last time the Town went to bid for these services in
2021 and Ace was the solitary bidder to submit a proposal. In light of these factors,
staff entered into discussions with Ace about the potential of extending the existing contract.
Ace would be agreeable to extending the contract with updated rates for a period of three
years, with two potential one-year extensions and an annual provision for Consumer Price
Index (CPI) increases, which are the Town’s standard contract parameters. Staff considers
this advantageous for the Town, securing cost assurance for up to the next five years in a
market that has seen prices increase dramatically in recent years. If approved, the extended
contract would begin July 1, 2026 and be set at $115,000 for the first year, with the annual
CPI provision referenced above for subsequent years.
Fleet Maintenance Contract Amendment 2 February 17, 2026
PUBLIC CONTACT
Posting of the meeting agenda serves as notice to the general public.
FISCAL IMPACT
There is sufficient funding within the 2025/26 Maintenance Services Department Operating
Budget to fully fund this contract amendment. Sufficeint funding will be appropriated in
the 2026/27 Maintenance Services Department Operating Budget for the contract extension.
RECOMMENDATION
Adopt Resolution No. 10-2026, amending and extending a contract for fleet maintenance
with Ace Auto Repair & Tire Center, Inc.
Prepared and reviewed by:
Dave Casteel
Assistant Town Manager and
Maintenance Services Director
Attachment: Resolution No. 10-2026
RESOLUTION NO. 10-2026
AMENDING AND EXTENDING A CONTRACT FOR FLEET MAINTENANCE
WITH ACE AUTO REPAIR & TIRE CENTER, INC.
WHEREAS, the Town awarded a contract to Ace Auto Repair & Tire Center, Inc. of San
Ramon, California for fleet maintenance services in 2021; and
WHEREAS, the contract commenced on July 1, 2021 for a period of three years with two,
one-year extensions; and
WHEREAS, the contract amount was $85,000 for the first year of the contract, with a
provision for Consumer Price Index adjustments each year; and
WHEREAS, the COVID-19 pandemic disrupted supply chains, making it difficult to
purchase new vehicles; and
WHEREAS, this resulted in an aging fleet that requires more maintenance to maintain
operations and safety; and
WHEREAS, a contract amendment is needed to ensure necessary fleet maintenance will
continue to be performed; and
WHEREAS, the current fleet maintenance contract is set to expire June 30, 2026; and
WHEREAS, the Town has negotiated an extension with Ace Auto Repair & Tire Center,
Inc. for a period of three years with two potential one-year extensions; and
WHEREAS, the contract would commence on July 1, 2026; now, therefore, be it
RESOLVED, that the Danville Town Council hereby authorizes the Town Manager to
amend, on behalf of the Town, the contract with Ace Auto Repair & Tire Center, Inc. for
an additional $30,000 in the 2025/26 fiscal year; and, be it further
RESOLVED, that the Danville Town Council hereby authorizes the Town Manager to
execute, on behalf of the Town, a three year contractual agreement with options to extend
for up to two additional one-year periods with Ace Auto Repair & Tire Center, Inc. for
an annual cost of $115,000 in the form as lodged with the City Clerk, together with such
changes as may hereafter become necessary, provided such changes do not materially
increase the obligations of the Town thereunder.
Docusign Envelope ID: 33914974-9A45-4429-A2AA-FFE4E715DE8D
PAGE 2 OF RESOLUTION NO. 10-2026
APPROVED by the Danville Town Council at a regular meeting on February 17, 2026 by
the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
________________________________
MAYOR
APPROVED AS TO FORM: ATTEST:
__________________________ ________________________________
CITY ATTORNEY CITY CLERK
Docusign Envelope ID: 33914974-9A45-4429-A2AA-FFE4E715DE8D