CITY COUNCIL MEETING AGENDA PACKET

Page 2 of 4 Plan. This plan identified all assets scheduled for replacement, taking into account factors such as installation year, useful life, condition, condition rating, and risk rating. The F-250 and F- 550s (Units 308, 120, and 109) and the F-150s (Units 304, 102, and 103) were prioritized and ranked as high-risk, requiring immediate replacement. The City’s fleet replacement plan is scheduled to retire vehicles reaching the end of their service life by 2025, making these replacements timely and necessary. The City’s aging fleet includes one modified F-250 and two F-550 trucks (Units 308, 120, and 109), all of which are more than 20 years old. These vehicles frequently break down, have surpassed their useful life, and require immediate $20,000 engine replacements. The plan, which consolidated more than 191,000 municipal assets into a unified database for lifecycle tracking and long-term budgeting, further determined that the City faces an estimated $15.7 million in fleet replacement costs for Fiscal Year 2025/26. Given available resources, staff is prioritizing the recommended vehicles. This data-driven approach reinforces the need to prioritize replacement of critical vehicles and infrastructure before failure, ensuring operational reliability and financial sustainability. DISCUSSION Continuing to operate the existing aged F-250 and two F-550s (Units 308, 120, and 109 vehicles) will have the following risks: • Financial Impact: To remain in service, each vehicle requires a $20,000 engine replacement, in addition to annual maintenance costs averaging $10,000 per unit. These costs exceed the value of extending the vehicles’ lives. • Operational Risk: Frequent breakdowns increase downtime, causing inefficiency in operation and the inability to deliver services to the residents and community. • Safety and Liability: Operating outdated vehicles increases the risk of roadside breakdowns and heightens the City’s liability exposure. Failures during active service could endanger employees and the public, and result in complaints about delayed or disrupted services. • Regulatory Risk: Noncompliance with California’s Advanced Clean Fleets regulation could result in fines of up to $10,000 per vehicle per day, DMV registration holds, or restrictions on fleet operations. To support Public Works’ maintenance and repair operations, the standard F-350s and the F- 550s are needed to provide critical towing and load-handling capacity for heavy operations in which ZEVs are not an available option. As required by California's Advanced Clean Fleets to meet the State’s 50 percent ZEV mandate, three F-150 Lightning vehicles are required as part of this purchase. These vehicles will replace the existing, aging fleet (Units 304, 102, and 103), which have high maintenance costs, for a total of six (6) vehicles purchased. Page 41 of 200