Public Works Agency
www.santa-ana.gov/pw
Item # 21
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
August 4, 2026
TOPIC: Purchase Order Contract for Fleet Air Compressor System Replacement
AGENDA TITLE
Purchase Order Contract to Premo Construction, Inc. for Fleet Air Compressor System Replacement (Specification No. 26-031) (Non-General Fund)
RECOMMENDED ACTION
1. Approve an appropriation adjustment recognizing $157,960 of spendable fund balance in the Equipment Maintenance-Garage Operation, Prior Year Carryforward revenue account, and appropriate the same amount into the Equipment Maintenance-Garage Operation, Machinery & Equipment expenditure account. (Requires five affirmative votes)
2. Award a purchase order contract to Premo Construction, Inc. to replace the fleet air compressor system for a total estimated cost of $157,960, which includes $143,600 for the purchase order contract and $14,360 for unanticipated or unforeseen work.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The Public Works Agency Municipal Services Division (PWA) is responsible for the acquisition, maintenance, repair, and replacement of City vehicles, trucks, and maintenance equipment. Many of these activities rely on compressed air systems to support routine maintenance and repair operations. Fleet Services utilizes a centralized air compressor system to operate essential shop equipment, including vehicle lifts, pneumatic tools, tire service equipment, and other maintenance devices.
The existing air compressor system has reached the end of its useful life and is experiencing increased reliability and maintenance issues. Replacement of the system is necessary to ensure the continued efficient and reliable operation for the Fleet Services maintenance facility.
Purchase Order Contract for Fleet Air Compressor System Replacement August 4, 2026
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Invitation for Bids (IFB) No. 26-031 was advertised on May 14, 2026 on the City’s online bid management and publication system, PlanetBids (Exhibit 1). A summary of vendor participation and results is as follows:
1373 Vendors notified
2 Santa Ana vendors notified
26 Vendors downloaded the bid packet
4 Bids received
0 Bids received from Santa Ana vendors
Bids were opened on June 11, 2026 and evaluated (Exhibit 2). Four bids were submitted by the IFB deadline and all four were determined to be responsive to the specifications and met the City’s requirements.
Staff recommends awarding a purchase order contract to the lowest responsive bidder, Premo Construction, Inc. Premo Construction, Inc. has successfully completed projects for the City within the past two years, including the Bus Stop Improvements Project. The contractor has also successfully completed construction projects for other public agencies, including a well project for the City of Huntington Beach and a modular temporary housing project for the City of Newport Beach. These projects demonstrate the contractor’s experience working with public agencies and the ability to successfully deliver construction projects of varying scope and complexity. Based on the vendor’s successful project history and positive references, staff has determined that Premo Construction, Inc. is qualified to perform the required work. Award of the purchase order contract will allow for timely replacement of the Fleet Services air compressor system and help ensure the continued reliability of equipment necessary to maintain the City’s fleet.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
With the approval of the requested appropriation adjustment, a portion of the accumulated fund balance will be appropriated for spending in the Equipment Maintenance-Garage Operation, Machinery & Equipment expenditure account (No. 07517100-66400). The spendable portion of the fund balance is estimated at $2,012,170 as of June 30, 2026, which is sufficient to allow for the recommended appropriation of $157,960. Any remaining balances not expended at the end of the fiscal year will be presented to City Council for approval of carryovers into Fiscal Year 2027-28.
Purchase Order Contract for Fleet Air Compressor System Replacement August 4, 2026
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Fiscal
Year
Accounting Unit
– Account No.
(Project No.)
Fund
Description
Accounting Unit,
Account Description Amount
APPROPRIATION ADJUSTMENT
2026-27 07517100-66400 Fleet
Maintenance
Equipment Maint-
Garage Operation,
Machinery &
Equipment
$157,960
TOTAL $157,960
EXHIBIT(S)
1. IFB 26-031 Air Compressor System Replacement
2. Abstract of Bids (No. 26-031)
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director of Public Works Agency Approved By: Alvaro Nuñez, City Manager