FROM: Robert Thompson, General Manager
Originator: Riaz Moinuddin, Director of Operations and Maintenance
SUBJECT:
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FLEET VEHICLE 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 vehicles and electric utility carts for Orange County Sanitation District’s fleet as initially approved in the adopted Fiscal Year 2026-27 Budget in the not to exceed amount of $1,844,000; and
B. Authorize the General Manager and Purchasing Manager to purchase replacement vehicles and carts during the fiscal year in the not to exceed amount listed above, utilizing the method of procurement determined by the Purchasing Manager to be in the best interest of the Orange County Sanitation District.
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BACKGROUND
Orange County Sanitation District (OC San) maintains a fleet of vehicles and utility carts necessary to meet business needs. The fleet is comprised of 7 heavy-duty equipment trucks, 1 bus, 43 medium-duty trucks, 59 light-duty trucks, 20 sedans, 22 SUVs, and 21 vans totaling 173 vehicles, and 163 electric utility carts.
OC San’s Fleet Services Division replaces vehicles as part of a fleet right-sizing and modernization strategy. Replacement decisions are based on each unit’s ability to meet operational needs, as well as its age, mileage, condition, reliability, and maintenance cost. All proposed replacement vehicles and carts were identified as required for business needs during the fiscal year 2026-27 budget preparation process.
The replacement vehicles are proposed annually during budget preparation. The Board subsequently approves vehicle procurements under the capital equipment section of the budget in June of each year. OC San evaluates available cooperative contracts, competitive solicitations, manufacturer ordering programs, and other authorized procurement options to obtain favorable pricing and vehicles that meet operational specifications.
OC San evaluates electric, hybrid, compressed natural gas, and other lower-emission technologies for each replacement purchase based on operational requirements, available technology and infrastructure, lifecycle cost, and applicable regulations.
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 vehicles and carts identified for replacement are approaching the end of their economically useful lives. Their maintenance costs are increasing, their reliability and physical condition are declining, and several units would require significant repairs to remain in service. The older units also lack safety features available on current models.
PROPOSED SOLUTION
Authorize the General Manager and Purchasing Manager to purchase the budgeted replacement units using a procurement method that provides the best value to OC San while meeting operational requirements and applicable purchasing requirements. This flexibility will allow staff to quickly respond to limited inventory, manufacturer ordering windows, and varying lead times without exceeding the Board-approved amount.
TIMING CONCERNS
Vehicle inventory and manufacturer ordering windows can change before an item completes an additional Committee and Board approval cycle. Delegating procurement authority within the approved budget will allow staff to act when suitable units and favorable pricing are available, reducing the risk of extended lead times or higher costs.
RAMIFICATIONS OF NOT TAKING ACTION
Without approval, OC San would continue operating units that have been identified for replacement because of age, condition, maintenance cost, or reliability. This would increase the risk of unscheduled repairs, service interruptions, higher operating costs, and reduced availability of vehicles needed by staff. Delayed replacement would also postpone the introduction of current safety features.
PRIOR COMMITTEE/BOARD ACTIONS
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ADDITIONAL INFORMATION
Typical procurement methods for vehicles and carts have been competitive low bids and utilizing cooperative contracts through the State of California Department of General Services or other organizations meeting the same procurement requirements as OC San.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with the authority levels of OC San’s Purchasing Ordinance. This item has been budgeted (Budget FY 2026-27 and 2027-28, Section 8, Page 86, Capital Equipment - Fleet Services) and the budget is sufficient for the recommended action.
|
Date of Approval |
Contract Amount |
Contingency |
|
09/23/2026 |
$1,844,000 |
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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