Annual Fleet and Equipment
Purchase Authorization
July 9, 2025
Agenda
• Background
• Catch-Up Strategy & Advanced Clean Fleet Compliance
• FY 2025/26 Purchasing Plan
• Budget Summary
• Funding Opportunities
• Staff Recommendation
2 Background
3 Annual review of vehicle
replacement schedule
Flexible purchasing strategy
Process enhancement
Alignment
• Life Expectancy
• Age
• Mileage
• Direct dealer negotiations
and cooperative purchasing
for better value and faster
delivery
• Purchases brought to
Council in multiple approvals
throughout the year
• Sustainability Master Plan
• California Advanced Clean
Fleet (ACF) regulations
Catch-Up Strategy & ACF Compliance
4 Historical:
ü 27 vehicles/equipment acquired in FY 2025
Current request:
ü 19 vehicles/equipment to complete catch-up
ACF regulatory context:
ü ACF rules impose increasing limits on internal
combustion engine (ICE) purchases
ü Local governments will lose flexibility to offset ICE with Zero-Emission Vehicles (ZEVs) if behind schedule
Objective:
ü Maximize replacements before stricter rules apply
ü Achieve predictable, balanced future replacement
schedule
2018 2019 2020 2021 2022 2023 2024 2025
0 5
10 15
20 25
30 Purchased Vehicles
Purchased Vehicles
FY 2025/26 Purchasing Plan
5 • 19 - vehicles and equipment to be purchased
• 8 - zero-emission vehicles
• 16 years - average age of vehicles being
replaced
• Flexible procurement approach
ü Cooperative pricing (Sourcewell)
ü Local dealerships
8 2
3 6
Replacement Breakdown
Zero-Emission Equipment Public Safety Gasoline Powered
FY 2025/26 Budget Summary
6 • FY 2025/26 Budget - $1,831,000
• Requested Authorization-$1,940,400
ü Includes 10% contingency
• Recommended Appropriation- $109,400
• Economic uncertainty
ü Recent price increases
ü Impact of tariffs
ü Inventory
Budget Summary
Current Cost Estimate $1,764,000
10% Contingency 176,400
Total Authorization 1,940,400
FY 2025/26 Budget 1,831,000
Recommended
Appropriation
$109,400
Funding Opportunities
7 • Clean Power Alliance (CPA) Pathways to Electrification Program up to $250,000
ü Fully funds E-Transit Van
ü Cost differential of ZEVs
ü No City match required
• Department of Energy Clean Vehicle Credit Program
ü Up to $7,500 credit per vehicle
• Ongoing monitoring of other grant programs and
incentives
Recommendations:
1. Find purchasing vehicles exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 15061(b)(3).
2. Approve the purchase of vehicles and equipment in the amount of $1,764,000 and authorize contingency in the amount of $176,400 for a total not to exceed amount of $1,940,400; and
3. Authorize an appropriation of $109,400 in Account No. 540-5540-455.91-33 from available Vehicle & Equipment Fund Balance; and
4. Authorize the City Manager to execute future amendments or documents up to the not to exceed amount.
9 Questions?
Heavy Duty ZEV vs Combustion
10 $364 K
$273 K
Vehicle List
11 Key Checkouts
12 Fiscal & Operational Benefits
• Flexible procurement leads to better pricing
and faster delivery
• Aligns with Sustainability Master Plan
• Supports operational continuity
• Positions City ahead of full ZEV mandate in
2027
• Final phase of replacement catch-up
13 Overview
• Annual update on City vehicle replacement
schedule
• Advanced Clean Fleet (ACF) regulation
overview
• City’s compliance approach and sustainability
focus
• Fiscal & operational considerations
ü Funding opportunities
14 How does ACF affect our fleet?
• 35 vehicles impacted, ~ 45% of fleet
• Types of vehicles affected:
ü Medium duty (F-350 & F-550)
ü Heavy duty
• Extremely limited availability of zero-
emission, medium duty trucks
• 2 implementation options available
15 Advanced Clean Fleet (ACF)
• California Air Resources Board (CARB)
regulation accelerating fleet electrification
• 2024-26: ≥ 50% zero-emission vehicle
purchases, offsets required
• 2027+: 100% zero-emission purchases
mandatory
• Exemptions allowed for:
ü Public Safety
ü If no zero-emission equivalent exists
16 City’s ACF Compliance Strategy
• Staff recommendation to pursue
implementation Option 2:
ü Purchase non-Zev medium duty trucks
ü Offset with ZEVs (e.g. F-150 Lightnings)
• Ongoing monitoring
• Pursuing exemptions
17 Background
18 Annual review of vehicle replacement
schedule
Life expectancy, age, mileage, maintenance costs
Flexible purchasing strategy
Direct dealer negotiations and cooperative purchasing for better value and faster delivery
Process enhancement
Purchases brought to Council in multiple approvals throughout the year
New approach consolidates into one authorization
Alignment
Sustainability Master Plan
California Advanced Clean Fleet (ACF) regulations
Catch-Up Strategy & ACF Compliance
19 2018 2019 2020 2021 2022 2023 2024 2025
0 5
10 15
20 25
30 Purchased Vehicles
Purchased Vehicles
Last fiscal year:
ü 27 vehicles/equipment acquired
Current request:
ü 19 vehicles/equipment to complete catch-up
ACF regulatory context:
ü ACF rules impose increasing limits on internal
combustion engine (ICE) purchases
ü Local governments will lose flexibility to offset
ICE with Zero-Emission Vehicles (ZEVs) if
behind schedule
Objective:
ü Maximize replacements before stricter rules
apply
ü Achieve predictable, balanced future
replacement schedule
FY 2025/26 Purchasing Plan
• 19 - vehicles and equipment to be purchased
• 8 - zero-emission vehicles
• 16 years - average age of vehicles being
replaced
• Flexible procurement approach
ü Cooperative pricing (Sourcewell)
ü Local dealerships
20 8
2 3
6 Replacement Breakdown
Zero-Emission Equipment Public Safety Gasoline Powered