Item 11 - Annual Purchase and Replacement of Various City Vehicles

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Annual Purchase and Replacement of Various City Vehicles March 17, 2026 Page 2 GOVERNMENT CODE 484308 APPLIES: No DISCUSSION The Public Works Agency (PWA) routinely acquires, maintains, repairs, and replaces City vehicles and equipment. In prior years, staff presented multiple individual staff reports throughout the year with recommendations for individual vehicle purchases after the City has underwent a competitive bidding process. This process requires a longer lead time and has consistently fragmented the City's purchasing power. It has also hampered the City's ability to act in a timely manner and take advantage of market conditions, immediate inventory availability, and lower pricing opportunities when offered by manufacturers and dealerships, as these private entities are less likely to hold inventory or commit to lower price for extended periods. On January 20, 2026, City Council approved the first reading of an ordinance amending Chapter 2, Article II of the Santa Ana Municipal Code (SAMC) to specify the procurement and contracting procedure for vehicle and vehicle related equipment purchases. The new process allows City Council to pre -authorize the City Manager to procure and execute contracts and purchases for vehicles and vehicle -related equipment immediately following completion of competitive bidding or through justified non -bid purchases within City Council -approved not -to -exceed amounts. This procurement model accelerates contracting and delivery, improves efficiency, and positions the City to secure competitively -priced vehicles and equipment in a timely manner, and with appropriate control measures in place ensuring the integrity and transparency of the purchasing approval and budget allocation process. On February 3, 2026, City Council conducted the second reading and adopted the ordinance. The City's Equipment Replacement Policy (Exhibit 1) establishes the guidelines and criteria for the replacement of City vehicles to ensure a strategic approach to fleet management. This policy prioritizes safety, cost effectiveness, fuel efficiency, and compliance with State and Federal public fleet regulations. These guidelines are established by the American Public Works Association (APWA), National Association of Fleet Administrators (NAFA), and Municipal Equipment Maintenance Association (MEMA). Replacement determinations are based on industry -standard criteria, including excessive mileage, vehicle age, maintenance costs, unit hours, maintenance history, safety, and overall life expectancy. For Fiscal Year 2025-2026, a total of 87 vehicles are included in the purchase plan to replace units that have reached the end of their useful life, replace leased vehicles, and to meet additional operational needs (Exhibit 2). Of these, staff identified 62 vehicles that meet established replacement guidelines, totaling $3,326,804, serving the Planning and Building Agency, Police Department, and Public Works Agency (Exhibit 3).