____________________________________________________________________________________
FOR CITY CLERK ONLY
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: April Miller
Director, Public Works
Ryan Montes
Operations & Maintenance Manager
City Manager Approval: ______
TOPIC: FLEET REPLACEMENT FISCAL YEAR 2026-2027
SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO PURCHASE NINE (9) VEHICLES IN AN AMOUNT NOT TO EXCEED $590,000, REASSIGN TWO (2) UNDERUTILIZED VEHICLES, DECOMMISSION FOUR (4) VEHICLES FROM THE CITY FLEET, AND APPROVING AN ADDITIONAL APPROPRIATION OF $60,000
FROM THE VEHICLE REPLACEMENT FUND
RECOMMENDATION:
Staff recommends that the City Council adopt a resolution authorizing the City Manager to purchase nine (9) vehicles to replace aging, obsolete, and operationally inadequate vehicles for the City’s vehicle fleet in a cumulative amount not to exceed $590,000 and approving an additional appropriation of $60,000 from the Vehicle Replacement Fund (621).
BACKGROUND:
In Fiscal Year (FY) 2025-2026, Department of Public Works (DPW) staff established a 5-year fleet replacement plan that aligns with the City's updated Fleet Management Policy and the Pacific Gas & Electric (PG&E) Fleet Electrification Program. The central objective of this replacement plan is to systematically project and manage the capital required for vehicle lifecycles, recognizing that the internal vehicle replacement fund is currently underfunded.
The updated Fleet Management Policy emphasizes a rigorous verification process, shifting from department-driven procurement requests to Fleet Management-driven replacement recommendations.
This systematic review is vital to determining the explicit operational "needs" versus localized "wants" of City departments, ensuring City resources are deployed responsibly. Fleet Management utilizes four core policy pillars to determine all annual replacement recommendations:
1. Need and Function
2. Environmental Impact
3. Lifecycle Cost
4. Occupant Safety
To optimize inventory, actions may include purchasing replacement vehicles, internally reassigning underutilized units, deferring lifecycle timelines, or permanently eliminating obsolete equipment from service. Fleet Management maintains a rolling 5-year replacement schedule alongside a comprehensive deferred replacement list (units fully amortized but kept in active service). Fleet Management reviews Agenda Item No: 2.i
Meeting Date: August 17, 2026
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
both lists annually to determine which vehicle replacements, reassignments, or retirements to recommend for City Council approval.
During the baseline FY 2025-2026 cycle, the City replaced three (3) vehicles citywide at a cost of $374,686, including one Police Department vehicle and two DPW vehicles. No zero-emission vehicle transitions occurred during that cycle.
For the FY 2026-2027 cycle, Fleet Management’s data analysis recommends the replacement of nine (9) vehicles, the internal transfer of two (2) vehicles, and the permanent elimination of four (4) vehicles from the City's active ledger.
Public Works Department
The Department of Public Works replacement recommendations include three (3) Chevrolet Silverado electric vehicles (EVs) and one (1) Ford E-Transit Van. These units comprise two (2) administrative pool vehicles and two (2) utility trucks utilized by the Streets and Facilities maintenance divisions. This specific asset group has been selected to satisfy Year 1 requirements of our active PG&E EV Fleet contract.
Under this agreement, the City committed to transitioning ten (10) public works assets to EVs within a strict 5-year timeline in exchange for PG&E constructing major electrical charging infrastructure at the vehicles’ primary location.
Police Department
The San Rafael Police Department (SRPD) replacement recommendations include three (3) hybrid passenger/patrol vehicles and two (2) patrol motorcycles:
1. Patrol SUV (Ford Police Interceptor Hybrid): One frontline patrol car that has reached mileage thresholds where major mechanical failures are common, escalating operating expenses and vehicle downtime. This patrol replacement bridges the division into a much larger, comprehensive replacement cycle projected to return to Council in the next 12 to 24 months.
2. Admin Sedan (Toyota Camry Hybrid) & Admin SUV (Toyota Highlander Hybrid): Two administrative and detective assets that have reached structural end-of-life thresholds and experience high cumulative downtime.
3. Patrol Motorcycles (BMW R1200RT-P): The police fleet currently consists of six (6) motorcycles that have a low average annual mileage, with most being 2015 BMW R1200RT-P models. The Police Department currently has four active officers who regularly use motorcycles and plan to expand the unit in the near future. To maintain operational readiness and meet utilization goals, staff recommend replacing two aging motorcycles.
Internal Transfer & Fleet Reduction Recommendations
To eliminate unnecessary capital spending, staff analyzed vehicle utilization citywide. Vehicles driven fewer than 3,000 miles annually are flagged as underutilized. The following reassignments and permanent decommissioning actions are recommended to right-size operations:
• Parking Services Reassignments: Parking Services requires two hybrid compact sedans for daily enforcement. Fleet Management identified two identical, underutilized hybrid sedans within the Public Works pool. These units will be transferred directly to Parking Services to serve as active assets #7 and #20. Because Parking Services operates as an Enterprise Fund, it will absorb the one-time mechanical equipment transfer costs to migrate existing License Plate Reader (LPR) hardware onto the incoming chassis.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
• Decommissioning and Liquidation (Asset Nos. 37, 19, 132, and 83): Upon successful transfer of the hybrid units to Parking Services, the vacated assets #37 and #19 will be permanently eliminated from the fleet, dissolving $70,000 in future replacement liabilities.
Additionally, Community Development SUV #132 (which has seen near-zero use over the past 36 months) and Public Works Van #83 (a legacy recreation loaner vehicle no longer required) will be permanently retired and sent to public auction. Combined, these asset eliminations permanently erase $155,000 in future replacement funding liabilities.
Vehicle Replacement Deferments
Currently, 55 fleet vehicles have had their replacements deferred based on vehicle utilization standards set in the Fleet Management Policy. While keeping these units in service preserves immediate capital, it represents an outstanding deferred replacement backlog of approximately $3,255,000 across all city departments. Staff assess deferred vehicle replacements annually and will recommend replacement when necessary.
Per San Rafael Municipal Code 2.55.100 (E), the City intends to optimize procurement timelines and capture competitive pricing by utilizing state and national cooperative purchasing programs (such as Sourcewell, State of California Multiple Award Schedule (CMAS), or Placer County piggyback agreements), which are fully exempt from localized competitive bidding requirements.
City's Commitment to Zero-Emission Vehicles
The City maintains a firm commitment to transition its fleet to zero-emission vehicles over the next several years as part of the Electric Vehicle Acceleration Strategy Workplan adopted by Council in 2023.
Whenever possible, when a vehicle meets operational and functional needs, the City will purchase electric vehicles. In many cases, zero-emission options are not yet available to serve specialized emergencies or heavy-duty functionality. In those cases, procurement is delayed if possible until an EV option becomes viable.
In addition, when EVs are purchased, the City must maintain adequate electrical infrastructure and EV chargers, and PG&E must have grid infrastructure capable of handling the additional electrical load. By executing the Public Works EV purchases reported in this report, the City satisfies the Year 1 requirements of the PG&E EV Fleet contract, securing substantial utility-funded electrical infrastructure upgrades at primary municipal facilities, as well as $16,000 in vehicle rebates. The City is currently completing an electric vehicle charger project at the Public Works facility, which will provide 8 chargers for Citywide use, each capable of fast charging for emergency needs.
To further offset procurement costs, Fleet Management will actively apply for regional and state incentive opportunities, including local vehicle rebates through the Transportation Authority of Marin (TAM) and point-of-sale vouchers via California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) for eligible medium- and heavy-duty battery-electric units.
ANALYSIS:
Table 1 summarizes the recommended vehicle actions and verified cost projections for the FY 2026- 2027 cycle. The costs below include vehicle acquisition, specialized utility outfitting, and a 5% structural contingency buffer.
The City will purchase the identified vehicles using the following cooperative purchasing contracts:
• Four (4) Public Works vehicles:
o Sourcewell Cooperative Purchasing Contract held by National Auto Fleet Group:
• Three (3) Police Department vehicles and two (2) Police Motorcycles SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
o California Department of General Services statewide purchase contracts held by:
Folsom Lake Ford
Long Beach BMW Motorcycles
Freeway Toyota
Cooperative purchasing programs through the State or other organizations that are exempt from competitive bidding per San Rafael Municipal Code 2.55.100 (E).
Table 1- Summary of Recommended Fleet Actions and Project Costs Department Fund Vehicle to be
Affected
Recommended Action Total Anticipated Cost /
Liability Impact
Public Works Utility Truck Replace - Chevrolet
Silverado EV
$65,000
Public Works Utility Truck Replace - Chevrolet
Silverado EV
$65,000
Public Works Utility Truck Replace – Chevrolet
Silverado EV
$65,000
Public Works Van Replace - Ford E-Transit $85,000
Police Department 2016 Patrol
SUV
Replace - Ford Police
Interceptor Hybrid
$100,000
Police Department Admin Sedan Replace - Camry Hybrid $35,000 Police Department Admin SUV Replace – Highlander
Hybrid
$60,000
Police Department Patrol
Motorcycles
Replace – BMW R1200RTP $86,000
Parking Services DPW Pool
Assets
Internal Transfer -
Reassign 2 Pool Units
$0
Public Works Assets #37, #19,
#83
Fleet Reduction -
Permanent Auction
Decommission
-$120,000 (Liability
Erased)
Community Dev. Midsize SUV
#132
Fleet Reduction -
Permanent Auction
Decommission
-$35,000 (Liability
Erased)
BASE SUBTOTAL Procure 9 Units/Retire 4
Units
$561,000 (Base
Acquisition & Outfitting)
5% CONTINGENCY Buffer for unexpected cost
increases
$29,000
TOTAL REQUEST Cumulative Not-to-Exceed
Allocation
$590,000 (Cumulative Net
Request)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
FISCAL IMPACT:
Funding for these expenditures is partially supported by the approved FY 2026-27 Vehicle Replacement base budget (Fund 621) allocation of $530,000. To cover total estimated base acquisition costs ($561,000) plus a 5% structural contingency ($29,000) for unexpected price increases or specialized outfitting surcharges, staff requests an additional appropriation of $60,000 from the fund balance of the Vehicle Replacement Fund (621). Unused contingency funds will remain in the fund balance upon completion.
While the internal vehicle replacement fund has historically been underfunded, the permanent retirement and liquidation of underutilized assets (#37, #19, #83, #132) will successfully erase $155,000 in longterm fleet replacement liabilities, helping optimize future fund sustainability. Costs for electric vehicles will also be partially offset by $16,000 in PG&E rebates and $10,000 from the Transportation Authority of Marin.
OPTIONS:
The City Council has the following options to consider relating to this item:
1. Adopt the resolution authorizing the City Manager to execute the nine (9) vehicle purchases, internal reassignments, and fleet reduction liquidations, and approve an additional appropriation of $60,000 from the Vehicle Replacement Fund balance.
2. Do not authorize the fleet plan and provide alternate direction to staff regarding public safety vehicle lifecycles and ZEV infrastructure compliance.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt a resolution authorizing the City Manager to purchase nine (9) vehicles to replace aging and operationally inadequate vehicles for the City’s vehicle fleet in a cumulative amount not to exceed $590,000 and approving an additional appropriation of $60,000 from the Vehicle Replacement Fund (621).
ATTACHMENTS:
1. Resolution Approving the FY 2026-2027 Fleet Management Plan
2. Comprehensive FY 2026-2027 Departmental Vehicle Deferment & Cost Schedule RESOLUTION NO.
RESOLUTION AUTHORIZING THE CITY MANAGER TO PURCHASE NINE (9) VEHICLES IN AN AMOUNT NOT TO EXCEED $590,000, REASSIGN TWO (2) UNDERUTILIZED VEHICLES, DECOMMISSION FOUR (4) VEHICLES FROM THE CITY FLEET, AND APPROVING AN ADDITIONAL APPROPRIATION OF $60,000 FROM THE VEHICLE REPLACEMENT FUND WHEREAS, various departments operate a fleet of over 300 vehicles; and WHEREAS, the management and replacement of the City’s fleet of vehicles and equipment is governed by the guidelines set forth in the City of San Rafael’s Fleet Management Policy 2025 document; and
WHEREAS, the Department of Public Works recommends the replacement of nine (9) vehicles, including four (4) for Public Works (three (3) utility trucks and one (1) van), five (5) for the Police Department (one (1) patrol SUV, one (1) admin SUV, one (1) admin sedan and two (2) motorcycles); and
WHEREAS, the Department of Public Works recommends the transfer of two (2) underutilized Public Works vehicles to Parking Services; and
WHEREAS, the Department of Public Works recommends the removal of four (4) vehicles from the City fleet, including three (3) underutilized Public Works vehicles and one (1) underutilized Community Development vehicle; and
WHEREAS, the City intends to purchase the referenced replacement vehicles through available cooperative purchase agreements, thus satisfying the requirements set forth in Section 2.55.10 of the San Rafael Municipal Code; and
WHEREAS, the proposed cost estimate of the vehicles includes vehicles acquisition, upfitting costs, and necessary contingencies; and
WHEREAS, appropriations for vehicle replacement were included in the FY 2026-2027 Budget approved by the City Council on June 15th, 2026, and included in the Vehicle Replacement Fund (Fund #621) in the approved budget; and
WHEREAS, unexpected cost increases have necessitated an additional appropriation from the vehicle replacement fund in the amount of $60,000 to be added to the existing fiscal year 2026-2027 vehicle replacement budget of $530,000 for a total budget of $590,000; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael hereby approves and authorizes the City Manager to purchase nine (9) vehicles for a cumulative amount not to exceed $590,000 and appropriate an additional $60,000 from the Vehicle Replacement Fund (Fund #621) to the Fiscal Year 2026-2027 vehicle replacement budget to account for unexpected price increases.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 17th day of August 2026, by the following vote, to wit:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
____________________
Lindsay Lara, City Clerk
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Vehicle Replacement Deferment Charts FY26-27
Department of Public Works- Approximately $800,000 Deferred Replacement Costs Vehicle
#
Make Model Year Use Type Current
Mileage
Average
Annual
Mileage
Year Fully
Amortized
Deferment Notes
10 Toyota Prius 2007 Pool 47,627 2,506 2021 Low Utilization 128 Toyota Prius 2007 Pool 41,472 2,182 2021 Low Utilization 45 Ford F-450 2009 Painting 36,531 2,148 2022 Usable Life Remaining 138 Ford E-350 2013 Pool Van
(city wide
use)
13,837 1,064 2026 Low Utilization
25 Ford Fusion 2015 Pool 26,862 2,442 2026 Low Utilization 77 Chevrolet 2500 2015 Work Truck 40,991 3,726 2026 Usable Life Remaining 53 Chevrolet 2500 2015 Work Truck 65,985 5,998 2026 Usable Life Remaining 91 Chevrolet 2500 2015 Work Truck 52,011 4,728 2026 Usable Life Remaining 70 Chevrolet 2500 2015 Work Truck 41,814 3,801 2026 Usable Life Remaining 21 Chevrolet 2500 2015 Work Truck 23,434 2,130 2026 Usable Life Remaining 65 Chevrolet 3500 2015 Utility Truck 43,502 3,954 2026 Usable Life Remaining 40 Chevrolet 3500 2015 Utility Truck 39,586 3,598 2026 Usable Life Remaining 34 Chevrolet 3500 2015 Garage
Service
Truck
17,920 1,629 2026 Usable Life Remaining
37 Ford CMAX 2015 Pool 18,268 1,660 2026 Transfer vehicle to Parking Services #7, eliminate #37 from fleet.
19 Ford CMAX 2015 Pool 23,144 2,104 2026 Transfer to Parking Services #20, eliminate #19 from fleet.
5 Ford CMAX 2015 Pool 26,937 2,448 2026 Low Utilization 2 of 6
Police Department -Approximately $740,000 Deferred Replacement Costs Vehicle # Make Model Year Use Type Current
Mileage
Average
Annual
Mileage
Year Fully
Amortized
Deferment Notes
303 Ford E-350 2006 Special Command 142,144 7,107 2025 Approx. 300 miles of use in 2025. Crisis Negotiation
Command Vehicle.
251 Chevrolet G3500 2007 Special CSI 8,108 426 2020 Low Utilization. Crime Scene Investigation.
159 Ford F-350 2012 Training 24,401 1,742 2023 Low Utilization 269 Ford Fusion 2014 Admin 73,495 6,124 2023 Usable Life Remaining 197 Ford Escape 2014 Admin 96,368 8,030 2023 Usable Life Remaining M2 BMW R1200 2015 Traffic Motorcycle 29,168 2,651 2021 Motorcycle fleet historically underutilized. M1 and M2
replaced in 2024 and major
services done to older
motorcycles recently. Utilization
is increasing, re-evaluate in
FY28.
M3 BMW R1200 2015 Traffic Motorcycle 31,569 2,869 2021
M5 BMW R1200 2015 Traffic Motorcycle 32,417 2,947 2021
M6 BMW R1200 2015 Traffic Motorcycle 32,560 2,960 2021
272 Ford Taurus 2015 Admin/Detective 82,655 7,514 2027 Usable Life Remaining- reevaluate in FY28 241 Ford PIU 2020 Patrol 79,437 13,239 2026 Usable Life Remaining- reevaluate in FY28 226 Ford PIU 2020 Patrol K9 63,972 10,662 2026 Usable Life Remaining- reevaluate in FY28 3 of 6
Fire Department-Approximately $390,000 Deferred Replacement Costs Vehicle # Make Model Year Use Type Current
Mileage
Average
Annual
Mileage
Year Fully
Amortized
Deferment Notes
72 Ford CMAX 2014 Admin 33,696 2,808 2025 Low Utilization 18 Ford CMAX 2014 Admin 41,559 3,463 2025 Low Utilization 123 Ford CMAX 2014 Admin 35,423 2,951 2025 Low Utilization 127 Ford CMAX 2014 Admin 22,168 1,847 2025 Low Utilization 101 Chevrolet 1500 2015 Deputy Fire
Chief
65,215 5,928 2025 Usable Life Remaining
124 Chevrolet 1500 2015 Battalion Chief
Spare
92,870 8,442 2025 Usable Life Remaining (spare
vehicle)
13 Ford Explorer 2016 Fire Inspector 58,062 5,806 2026 Usable Life Remaining 4 of 6
Community and Economic Development Department-Approximately $335,000 Deferred Replacement Costs Vehicle # Make Model Year Use Type Current
Mileage
Average
Annual
Mileage
Year Fully
Amortized
Deferment Notes
89 Ford Fusion 2014 Code
Enforcement
19,166 1,597 2025 Low Utilization
2 Ford Fusion 2014 Code
Enforcement
24,601 2,050 2025 Low Utilization
143 Ford Escape 2014 Building 64,835 5,402 2025 Usable Life Remaining 119 Ford Escape 2014 Building 83,792 6,982 2025 Usable Life Remaining 27 Ford CMAX 2015 Code
Enforcement
22,363 2,033 2026 Low Utilization
116 Ford Escape 2015 Building 30,575 2,779 2026 Low Utilization 102 Ford Escape 2016 Pool 15,808 1,580 2027 Low Utilization 126 Ford Explorer 2016 Building 19,398 1,939 2027 Low Utilization 5 of 6
Parking Services-Approximately $45,000 Deferred Replacement Costs Vehicle # Make Model Year Use Type Current
Mileage
Average
Annual
Mileage
Year Fully
Amortized
Deferment Notes
75 Toyota Tacoma 2007 Maintenance 75,606 3,979 2019 Useful Life Remaining 6 of 6
Library and Recreation Department –Approximately $145,000 Deferred Replacement Costs Vehicle # Make Model Year Use Type Current
Mileage
Average
Annual
Mileage
Year Fully
Amortized
Deferment Notes
16 Chevrolet 2500 2001 Pickup Truck 28,160 1,126 2014 Low Utilization 96 Toyota Prius 2008 Admin 22,409 1,244 2020 Low Utilization 99 Toyota Prius 2008 Admin 24,330 1,351 2020 Low Utilization 4 Ford CMAX 2015 Admin 27,995 2,545 2026 Low Utilization