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ITEM: |
consent calendar |
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4. |
CONSIDER RECOMMENDATION TO
AUTHORIZE CONTRACT WITH FREEWAY TOYOTA OF HANFORD FOR PURCHASE OF TWO TOYOTA RAV4S |
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Meeting Date: |
December 15, 2025 |
Budgeted: |
Yes |
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From: |
David J.
Stoldt, |
Program/ |
Budget Book |
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General
Manager |
Line Item No.: |
xx-02-914000 |
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Prepared By: |
Nishil
Bali |
Cost
Estimate: |
$37,190 each |
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General Counsel Review: N/A |
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Committee Recommendation:
The Finance and Administration Committee reviewed this item on December 8,
2025, and recommended approval. |
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CEQA Compliance: This action does not constitute a
project as defined by the California Environmental Quality Act Guidelines
Section 15378. |
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SUMMARY:
The Fiscal Year 2025–26 Budget, approved
in June 2025, includes $55,000 for replacing a 2003 Dodge Ram 1500 that has
been used by the Environmental Resources Division, and the vehicle is now
inoperable. Recently, the Water Demand Division has also requested the replacement
of its 2010 Honda Insight EV due to recurring mechanical issues and safety
concerns. The divisions need reliable, multipurpose vehicles capable of
transporting staff and equipment for inspections, outreach activities, and
travel to District facilities and the State Capitol.
Staff
identified key criteria for replacement vehicles, including versatility,
elimination of EV range limitations, proven durability, low maintenance costs,
and strong customer satisfaction. Based on this analysis, staff recommends
replacing both existing vehicles with hybrid compact Sport Utility Vehicles
(SUVs) that meet these operational needs.
To
achieve competitive pricing and ensure compliance with state performance and
environmental standards, staff proposes purchasing the vehicles through the
Statewide Contracts for Fleet Vehicles under the District’s cooperative
purchasing authority. Specifically, staff recommends acquiring two Toyota RAV4
Hybrid vehicles under State Contract 1-22-23-23C. The RAV4 offers strong
performance, high fuel efficiency, and a comprehensive five-year/75,000-mile
maintenance plan. The District expects to finalize the purchase when 2026
model-year pricing becomes available in early 2026.
RECOMMENDATION: The Finance and Administration Committee recommends forwarding
this item to the Board with a recommendation to purchase two 2026 Toyota RAV4
vehicles using State Contract #1-22-23-23C at the price listed in Attachment A
of the contract for 2026 models if available, or the current quoted dealer price
of $37,190 (adjusted using a 2025 model year) plus a 3% contingency. Staff
further recommends approving a budget adjustment to increase the Fiscal Year
2025–26 vehicle purchase budget to cover the price difference for the
additional unbudgeted vehicle.
BACKGROUND:
In June 2025, the Board approved the FY
2025–26 Budget, which included an allocation of $55,000 to replace a 2003 Dodge
Ram 1500 used by the Environmental Resources Division. The vehicle is
inoperable due to a failed battery and has been out of service for several
years. Staff recommends replacing this truck with a gas or hybrid vehicle
suitable for travel to District facilities and for trips to the State Capitol
for meetings with legislative staff, with the latter replacement being used by
staff in the General Manager’s office.
The
Water Demand Division (WDD) currently utilizes a 2010 Honda Insight Electric
Vehicle for District inspections. WDD has requested replacement of this vehicle
due to persistent mechanical and safety concerns, including a failing battery,
reduced acceleration on inclines, and significant interior and exterior wear.
WDD seeks a replacement vehicle that is multipurpose, capable of transporting
staff and equipment, and suitable for conservation and outreach activities. To
meet these needs, staff identified the following criteria for replacement
vehicles:
·
Versatility for a wide
range of District activities, including transport groups and equipment.
·
Elimination of “range
anxiety” commonly associated with current electric vehicles.
·
Demonstrated
durability, low maintenance costs, and strong warranty coverage.
·
Reasonable purchase
price, good fuel economy, and high customer satisfaction ratings.
Based
on these criteria, staff proposes replacing the Dodge Ram and Honda Insight
with two hybrid compact SUVs. Staff recommends utilizing the cooperative
purchasing authority under Section 2.6.3 of the District’s Purchasing Policy
and procuring the vehicles through the Statewide Contracts for Fleet Vehicles.
The Statewide contracts provide local agencies with competitively bid pricing,
reduced administrative burden, and access to vetted vehicle specifications that
meet state performance, warranty, and emissions standards.
State
Contract 1-22-23-23C allows the purchase of approved vehicle categories from
Original Equipment Manufacturers that meet defined technical and performance
specifications. The contract incorporates a scored evaluation framework
addressing vehicle performance, sustainability features, pricing, predelivery
inspection requirements, warranty terms, and compliance with state
environmental standards.
Staff
recommends purchasing two Toyota RAV4 Hybrids - five-passenger hybrid-electric
vehicles that meet specification 2310-4181 under Contract 1-22-23-23C. Compared
to most other hybrid SUVs available through the contract, the Toyota RAV4
offers:
• A
longer driving range (approximately 550 miles),
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Higher standard horsepower (219 HP),
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Superior towing capacity (up to 1,750 pounds),
• An efficient plug-in hybrid
powertrain (up to 94 MPGe with a 42-mile all-electric range), and
• Enhanced off-road capability due to increased ground clearance and
maneuverability.
Purchasing
through the State contract ensures a lower, competitively bid price relative to
local dealer pricing. The contract also includes a maintenance plan covering
all regularly scheduled services for at least five years or 75,000 miles,
including manufacturer-recommended inspections and service items such as oil,
filter, and fluid changes, lubrications, tire rotations, and equipment and
safety checks.
The
District anticipates executing the purchase once 2026 model-year pricing is
released in early 2026, with vehicle delivery expected by August 2026, as
indicated by the contract dealer.
EXHIBITS
4-A State Contract 1-22-23-23C
with attachments A-D
4-B Quotation
U:\staff\Boardpacket\2025\121525\Consent
Calendar\04\Item-4.docx