AGENDA TITLE:
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Adopt a Resolution Approving the Updated City of Lodi Fleet Policy
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MEETING DATE:
November 18, 2026
PREPARED BY:
Jennelle Baker-Bechthold, Budget Manager
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RECOMMENDED ACTION:
Adopt a resolution approving the updated City of Lodi Fleet Policy.
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BACKGROUND INFORMATION:
The City’s Fleet Policy was last updated in 2008 (Attachment 1). Since that time, vehicle purchasing costs, available technologies, operational needs, and fleet management practices have changed substantially. The existing policy requires modernization to provide consistent direction for acquiring, assigning, operating, maintaining, and replacing the vehicles and equipment used to deliver City services.
On July 1, 2026, the City Council approved Purchasing Policy revisions that increased the City Manager’s authority to purchase vehicles with a total value of up to $100,000. This change prompted the need to update the Fleet Policy to align the two policies and provide clear, consistent purchasing authority. The proposed Fleet Policy, included as Attachment 2 (Exhibit A), incorporates the $100,000 threshold and clarifies that the purchase price includes a complete, service-ready vehicle, including essential equipment, modifications, and technology. Purchases exceeding this threshold continue to require City Council approval. Any increase in the authorized size of the City’s fleet also continues to require Council approval, regardless of the purchase amount.
The addition of electric vehicles to the City’s fleet further highlighted the need for updated policy direction. Traditional replacement criteria based primarily on age and mileage do not fully address electric vehicle performance, battery condition, charging requirements, or long-term ownership costs. The proposed policy establishes a framework for evaluating electric vehicles based on battery health, usable range, operational suitability, warranty coverage, maintenance needs, and the cost of continued operation compared with replacement.
The updated policy also addresses charging infrastructure and the authorized home charging of assigned take-home electric vehicles. It establishes documentation requirements for electricity reimbursement, provides for Finance Department review of the reimbursement rate, and clarifies responsibilities for charging equipment and installation costs. These provisions support consistent administration as electric vehicles are incorporated into City operations.
In addition to purchasing authority and electric vehicles, the proposed policy addresses the following areas:
• Definitions and scope: Identifies covered vehicles, trailers, and mobile equipment and distinguishes fleet assets from tools, portable equipment, and stationary machinery.
• Fleet management and utilization: Clarifies administrative responsibilities and requires periodic review of utilization, condition, replacement needs, and opportunities for reassignment, pooling, or reduction.
• Take-home vehicle assignments: Establishes eligibility criteria, written approval requirements, annual review, restrictions on personal use, and applicable tax-reporting responsibilities.
• Vehicle care and operator responsibilities: Establishes expectations for safe operation, cleanliness, preventive maintenance, damage reporting, security, unauthorized modifications, tolls, and parking citations. Smoking, vaping, and tobacco use are prohibited in City vehicles and equipment.
• Mutual aid reimbursements: Directs an amount equal to reimbursements specifically received for vehicle and equipment response to the applicable replacement fund, while excluding separately identified operating, personnel, administrative, and other incident costs. Payments designated for damage, loss, repair, or replacement must be applied to their intended purpose.
• Acquisition and zero-emission planning: Requires consideration of operational needs, charging or fueling availability, infrastructure readiness, lifecycle costs, and applicable regulatory or grant requirements before acquisition.
• Replacement planning: Updates vehicle and equipment review benchmarks and establishes service-life phases to guide maintenance and replacement decisions. Benchmarks trigger evaluation rather than automatic replacement, allowing continued use when supported by condition, safety, reliability, and cost.
The proposed revisions provide a consistent framework for protecting publicly funded assets supporting dependable City services, and planning for future replacement needs. Staff recommends approval of the updated Fleet Policy.
FISCAL IMPACT:
Adoption of the policy does not authorize individual vehicle purchases or appropriate additional funds. Vehicle and equipment acquisitions, replacement contributions, charging infrastructure, and authorized charging reimbursements will be managed through approved budgets and applicable purchasing procedures.
The policy also directs qualifying mutual aid vehicle and equipment reimbursements to the applicable replacement funds, supporting future replacement needs. The amount credited will depend on eligible deployments and reimbursements received.
FUNDING AVAILABLE:
No additional appropriation is requested with this action. Implementation costs will be funded through applicable approved departmental, fleet replacement, or capital budgets. Any additional funding needs will be brought forward through the budget process or a separate Council action.