September 8, 2026
Agenda Item No. 10
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Zachary Gentry, Municipal Operations Director - 949-644-3055, [email protected] PREPARED BY:
Kyle Brodowski, Municipal Operations Superintendent - 949-718-3464, [email protected] TITLE:
Approval of Budget Amendment for Replacement of Utilities Department Vehicle Unit 9296 ABSTRACT:
The Municipal Operations Department requests the City Council’s approval of a budget amendment to fund the immediate replacement of vehicle Unit 9296. The vehicle, a Ford F-150 assigned to the Utilities Department, was involved in an accident and determined to be a total loss. Deferring this replacement to the next budget cycle would severely disrupt critical utility operations.
RECOMMENDATIONS:
Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and Approve Budget Amendment No. 2027-014 appropriating $50,000 in increased expenditure appropriations from the Equipment Replacement Fund unappropriated fund balance to the Rolling Equipment account in Municipal Operations Account 7529032-911016.
DISCUSSION:
The City of Newport Beach (City) maintains a fleet of vehicles managed in accordance with City Council Policy F-9 - City Vehicle/Equipment Replacement Guidelines, which establishes definitive standards for the replacement of City vehicles and provides a systematic funding mechanism through the Equipment Replacement Internal Service Fund. Each year, departments work with the Municipal Operations and Administrative Service Departments to identify vehicles meeting replacement criteria – based on age, mileage, maintenance costs, and condition – and those vehicles are included in the adopted budget for replacement.
Unit 9296, a Ford F-150 in the Utilities Department, was not scheduled for replacement in the current fiscal year. However, the vehicle was involved in an accident and has been declared a total loss, creating an immediate need for replacement. The vehicle performed an essential operational function, and its absence directly impacts the department’s ability to deliver services. Therefore, staff is seeking City Council approval of a budget amendment to appropriate additional funds for the purchase of a replacement vehicle.
Sourcewell Cooperative purchasing contract 081325-NAF was utilized by National Auto Fleet Group for the following quote: National Auto Fleet Government Quote 44156, for one 2026 Ford F-150 2wd, total cost $46,977.
Cooperative agreements are compliant with federal and state purchasing requirements and the City’s Administrative Services Department staff found the cooperative agreement and bidding process with Sourcewell met the minimum requirements of the City’s administrative procedures.
FISCAL IMPACT:
Budget Amendment No. 2027-014 appropriates $50,000 in increased expenditure appropriations to fund the emergency replacement of Unit 9296 at $46,977 plus a 5% contingency of $2,348 to cover unforeseen changes to the current quote. The appropriation is drawn from the Equipment Replacement Internal Service Fund (Fund 752) unappropriated fund balance. Fund 752 is sufficiently funded to absorb this request without adversely impacting other planned equipment replacements or the overall fund balance.
The Water Enterprise Fund has already contributed to the cost of this replacement through its annual contribution as part of the City’s standard internal service fund cost recovery methodology. As such, the Utilities Department has effectively pre-funded a portion of this replacement over the life of the vehicle, and no additional contribution from the Water Enterprise Fund is required at this time.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – Budget Amendment 2027-014
Attachment B – National Auto Fleet Group Quotation Number 44156 Approval of Budget Amendment for Replacement of Water Enterprise Fund Vehicle Unit 9296 September 8, 2026
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