FROM: Robert Thompson, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
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FLEET MOBILE EQUIPMENT REPLACEMENT PURCHASES
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve the purchase of replacement mobile equipment for Orange County Sanitation District’s fleet as initially approved in the adopted Fiscal Year 2025-26 Budget in the amount of $761,300; and
B. Delegate to the General Manager and Purchasing Manager the authority to purchase replacement mobile equipment during the fiscal year in the not to exceed amount listed above, utilizing the method of procurement determined by the General Manager to be in the best interest of OC San, to include cooperative contract, competitive solicitation, or sole source.
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BACKGROUND
Orange County Sanitation District (OC San) maintains a fleet of mobile equipment necessary to meet business needs and support emergency operations. The fleet comprises portable pumps and generators, forklifts, loaders, and a multitude of trailer-mounted equipment, totaling 96 units.
OC San’s Fleet Services Division replaces equipment based on expected useful life and disposes of units utilizing a third-party auction service. The replacement action is based on the current unit’s ability to meet the assigned departmental needs, age, maintenance cost, condition, compliance with environmental regulations, and profiled emergency response capability. All proposed replacement units were identified as required for business needs during the fiscal year 2025-26 budget preparation process.
The replacement of mobile equipment is proposed annually during budget preparation. The Board subsequently approves equipment procurements under the capital equipment section of the budget in June of each year. OC San enters into purchase order agreements with entities that allow adherence to internal specifications thus eliminating unnecessary options in the retail market.
RELEVANT STANDARDS
• Participate in local, state, and national cooperative purchasing programs
• Ensure the public's money is wisely spent
• Maintain a proactive asset management program
PROBLEM
The mobile equipment identified for replacement is nearing the end of economically useful life. Maintenance costs continue to increase, and the physical condition of the assets warrant significant restoration. Additionally, these older units lack modern safety features which are key to keeping staff safe and are terming out due to more stringent air emissions regulations.
PROPOSED SOLUTION
Authorize the General Manager and Purchasing Manager to utilize the method of procurement determined to be in the best interest of OC San, to include cooperative contract, competitive solicitation, or sole source. This will allow staff to obtain equipment in markets where inventory is readily available and meet the operational needs of the organization.
TIMING CONCERNS
OC San’s internal process requires additional committee and board action time, jeopardizing the ability to replace equipment with external deadlines beyond OC San’s control. Granting authority to the General Manager and Purchasing Manager to target the most appropriate method to obtain the replacement units ensures the most optimal and cost-effective way to source the replacement equipment.
RAMIFICATIONS OF NOT TAKING ACTION
The equipment selected for replacement is costly to maintain, requires significant overhaul to maintain reliability, and is facing limited operating hours annually as air emission regulations become more stringent. Unscheduled maintenance costs are increasing, and equipment reliability will compromise the ability to meet business needs.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
The requested equipment type composition is shown in the table below, but may be substituted depending on the actual condition of the equipment being replaced and market availability:
|
Purchase Type |
Vehicle Type |
Quantity |
Cost |
|
Replacement |
Forklift |
2 |
$170,000 |
|
Replacement |
Portable Diesel Bypass Pump |
1 |
$152,000 |
|
Replacement |
Portable Diesel Air Compressor |
2 |
$105,200 |
|
Replacement |
Portable Diesel Electrical Generator |
2 |
$225,100 |
|
Replacement |
Scissor Lift - Man Lift |
2 |
$109,000 |
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with the authority levels of OC San’s Purchasing Ordinance. This item has been budgeted (Budget Update FY 2025-26, Page A-15, Fleet Services: Other Mobile Equipment) and the budget is sufficient for the recommended action.
|
Date of Approval |
Contract Amount |
Contingency |
|
03/25/2026 |
$761,300 |
0% |
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
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