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Texas City May Outsource Utility Due to High Fleet Costs

April 6, 2018

The City of Gonzales, Texas, plans to issue a request for proposals (RFP) to take over day-to-day operations and maintenance for its city utility due to the significant equipment costs required.

According to city documents, the city recently experienced significant equipment failure due to a lack of sufficient vehicle repair and replacement. In order to serve its customer base, the city would have to spend a significant recurring cost to replace and repair its utility fleet, and the interim city manager gas recommend that an RFP is issued to determine whether the work is best kept in-house or outsourced.

Bringing the city’s electric truck fleet up to safety standards would cost an estimated $700,000, reports the Gonzales Inquirer. Although the City Council voted to issue an RFP, it does not mean outsourcing is imminent. City officials stressed that this will help determine the options available, and that they will try and find a way to allow utility employees to keep their jobs.

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