FINANCE AND ADMINISTRATION COMMITTEE
ITEM:		ACTION ITEM
4.	CONSIDER RECOMMENDATION TO AUTHORIZE CONTRACT WITH FREEWAY TOYOTA OF HANFORD FOR PURCHASE OF TWO TOYOTA RAV4S
Meeting Date:			December 8, 2025	Budgeted:	Yes
From:			David J. Stoldt,	Program/	Budget Book
			General Manager	Line Item No.:	xx-02-914000
Prepared By:			Nishil Bali	Cost Estimate:	$37,190 each
General Counsel Review: N/A
Committee Recommendation: The Finance and Administration Committee reviewed this item on December 8, 2025, and recommended _____________.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

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: Staff recommends that the Finance and Administration Committee forward 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),

• Higher standard horsepower (219 HP),

• 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\Board_Committees\FAC prev Admin\2025\128025\Action Items\04\Item-4.docx