Summary Sheet- RFCA SUMMARY

CITY OF TEMPE
Meeting Date: 5/14/2026  
REQUEST FOR COUNCIL ACTION
Agenda Item: 8A3
ACTION:  Approve the utilization of one-year, State of Arizona cooperative contracts with Courtesy 
Auto of Mesa, Courtesy Chevrolet, Sanderson Ford, Larry Miller Toyota (Bell Road), Midway Chevrolet, 
O’Reilly Chevrolet, PFVT Motors DBA Peoria Ford, San Tan Auto Partners, LLC – Ford and Sands 
Chevrolet for the purchase of 55 vehicles.
FISCAL IMPACT:  The total cost of these contracts will not exceed $3,600,000. Sufficient funds have 
been appropriated in the General Fund, Cost Centers, 1871 (Facilities Services), 1976 (IT Training and 
Print Shop), 1977 (IT: System Administration), 2210 (Office of the Chief), 2241 (Criminal Investigation), 
2248 (Central City),  2271 (Field Operations Admin), 2727 (Code Compliance), 2923 (Care 7), 3251 
(Park Asset Management Program), 3254 (Parks Maintenance Rio Salado), 3255 (North Parks), 3258 
(South Parks), 3321 (Fleet Services), 3342 (Tech Services/Utilities) and 3345 (CIP Construction), Fire 
Medical Resue Fund, Cost Center 2363 (Apparatus Maintenance), Arts and Culture Fund, Cost Center 
3762 (TCA Art Park), Highway User Revenue Fund, Cost Centers 3813 (Construction), 3823 
(Operations-Transportation), and Water and Wastewater Fund, Cost Centers 3022 (Water Distribution 
System), 3044 (Environmental-Hazardous Material) for anticipated expenditures during the current fiscal 
year and the next fiscal year, contingent upon City Council approval of the City’s annual budget.
RECOMMENDATION:  Approve utilization of the contracts.
 
BACKGROUND INFORMATION:  (CTR059314 – CTR059325) The State of Arizona solicited bids 
and awarded contracts to Courtesy Auto of Mesa, Courtesy Chevrolet, Sanderson Ford, EMV 
Automotive, Larry Miller Toyota, Midway Chevrolet, O’Reilly Chevrolet, PFVT Motors, San Tan Auto 
Partners and Sands Chevrolet which contain cooperative language allowing the use by other 
governmental agencies for the purchase of sedans, light duty, medium duty and heavy-duty vehicles. 
The State of Arizona utilized a competitive bid process that established pricing based on purchase 
volumes anticipated for the State and other utilizing governmental agencies. City personnel participated 
in the State’s planning meeting and provided the City’s forecasted quantities by type of vehicle. The 
quantity of vehicles purchased under the State contract far exceeds the number of vehicles that would 
be purchased individually by any utilizing entity thereby leveraging cost savings for the City.
Municipal Fleet Industry Best Practices
In keeping with municipal fleet industry best practices, the City’s vehicle replacement strategy is 
centered on asset protection and lifecycle cost analysis for each category of vehicle and equipment. 
Lifecycle analysis considers capital costs, depreciation costs, operating and maintenance costs and 
residual value at auction. Tempe’s Public Works Department, Field Operations Division, Fleet Services 
Section, determines the lowest annualized cost of equipment by category to establish replacement 
guidelines utilizing industry best practice that provides the lowest overall cost of the City’s fleet. Replaced 
vehicles will be sold at auction to recover residual value.
Analysis of Tempe Fleet

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Industry best standard practice for the average age of a municipal fleet is five and one-half to six years. 
The average age of Tempe’s fleet is just over five and one-half years. As a vehicle ages, the 
maintenance requirements, including labor and replacement parts costs, increase and the residual value 
of the vehicle at auction decreases. Therefore, timely replacement of vehicles is the most cost-effective 
approach to controlling overall fleet costs. The maintenance hours required by Tempe’s older fleet 
vehicles exceed the number of hours Fleet Services staff has available to maintain these vehicles. To 
address this, Fleet Services is working with departments to “right size” the fleet, implement a timely 
vehicle replacement schedule and remove or repurpose vehicles that are underutilized. This review will 
ensure that the City achieves the most cost-effective approach to reducing overall vehicle costs.
Alternative Fuel Vehicles
When new or replacement vehicles are purchased, Fleet Services coordinates with departments to 
purchase alternative fuel vehicles whenever possible to include electric and hybrid electric vehicles 
based on the department’s needs.
Budgeted Vehicles
It is expected that these contracts will be utilized for the purchase of 55 replacement vehicles, which 
have been budgeted in Fiscal Year 2026-2027, as indicated in the following tables. The exact class of 
vehicles and their respective costs to be purchased may vary depending on final budgeting decisions 
for Fiscal Year 2026-2027. As part of the overall estimated cost, staff is including a contingency budget 
of a total of $133,000, which may be used to purchase new vehicles that have not been identified at 
present. The total cost, including sales tax will not exceed the requested amount of $3,600,000
Class of vehicle
Quantity
Cabs and chassis
12
SUVs
25
Trucks/Pickups
12
Vans
6
Total
55
Department/Division
Quantity
Estimated 
Cost
Arts and Culture
1
$60,000
Community Development
4
$244,000
Community Health & Human Services
1
$65,000
Community Services
7
$410,000
Facilities
2
$135,000
Fire
1
$55,000
Information Technology 
3
$195,000
Police
22
$1,505,000
Public Works - Engineering
3
$169,000
Public Works - Fleet 
5
$240,000
Public Works - Water Utilities 
4
$269,000
Transportation and Sustainability - 
Streets
1
$60,000
Transportation and Sustainability - 
Transportation
1
$60,000
Contingency
-
$133,000 
Total
55
$3,600,000

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ATTACHMENTS:  N/A 
STAFF CONTACT(S):  David Tavares, Deputy Public Works Director - Field Operations, (480) 350-
2819
Department Director:  Laura Calder, Financial Services Director  
Legal review by:  Dave Park, Senior Assistant City Attorney
Prepared by:  Alicia Ruiz, Procurement Officer