Title
Resolution to Approve the Purchase of Vehicles from Signature Ford (State of Michigan MiDeal and Macomb County Cooperative Purchasing - $627,019.00)
Memorandum
The attached resolution authorizes the purchase of three 2023 Ford Police Interceptor Utility Hybrid patrol vehicles at $46,171.00 each, two 2023 Ford F-150 Extended Range Lightning SSV all electric pickup trucks at $55,047.00 each, two 2023 Ford F-150 Lightning all electric pickup trucks at $43,511.00 each, one 2023 Ford F-150 Extended Range Lightning all electric pickup truck with tow package at $58,397.00, one 2023 Ford F-150 Lightning all electric pickup truck at $44,726.00, one 2023 Ford F-150 Lightning all electric pickup truck at $43,656.00, one 2023 Ford F-150 4x4 pickup truck at $38,148.00, one 2023 Ford E-Transit 350 all electric cargo van at $56,749.00 and one 2023 Ford Transit 350 15 passenger van at $49,714.00 for a total of $627,019.00 from Signature Ford, Owosso, Michigan. This resolution includes both police vehicles and other City vehicles.
One of these thirteen vehicles has already been ordered at a cost of $38,148.00 because of manufacturer cut-off deadlines. That purchase did not require City Council approval. In adding the twelve extra vehicles to this order, the overall purchase increases above the $75,000.00 threshold for Council consideration.
While electric pickup trucks are now entering the commercial market, their suitability for municipal operations is limited based on the manufacturer’s offerings. The only trucks currently being offered are crew cab, short box (5.5’ versus the normal 8’) configurations and they can’t be used for plowing snow. Based on conversations with the major manufacturer’s, the City does not expect to see a true “work truck” for several years. Achieving sustainability goals is important but ensuring that staff have the appropriate vehicles to provide services to the public is imperative.
Police Vehicles: The City’s labor contracts with the Ann Arbor Police Officers Association and the Ann Arbor Police Supervisors require that vehicles used by their members will not be driven more than 80,000 miles or 6 years, whichever comes first. The four police vehicles listed on this resolution will replace vehicles that will have reached the contractual limit in the next year.
The pursuit-rated Interceptor Utility Hybrid patrol car uses a large battery pack to power the vehicle’s law enforcement equipment including lights, sirens, computers, radio, printer, and the heating and AC for the cabin. When the vehicle’s engine is at idle, which is a significant amount of time for a patrol vehicle, the engine shuts down and the battery powers the equipment. If the battery gets low, the engine automatically starts to recharge the battery. The City has experienced significant improvements in fuel economy for our existing fleet that has this hybrid system.
Other City Vehicles: One of the primary objectives of the Fleet and Facilities Unit is to ensure that the City maintains a fleet that is reliable and affordable. One of the ways that we do this is by establishing a replacement schedule for each class of vehicle. This does not mean that once a vehicle hits the preset age that it is automatically replaced. When a vehicle comes up on the replacement schedule, we use a two-step evaluation process. The first step looks at five categories, including the vehicle’s age, miles/hours of use, type of service, reliability, maintenance and repair cost. The second step consists of the Fleet Service Supervisor’s review of the vehicle repair history and general condition. Each category has point values that are assigned as follows:
AGE - one point for each year the vehicle is in service
MILES/HOURS - one point for each 10,000 miles or 330 hours of service
TYPE of SERVICE - one point for light duty use to five points for severe duty use
RELIABILITY - average # of work orders per month (1 <.25, 2 =.25 to .50, 3 =.50 to .75, 4=.75 to 1, and 5 = over 1 per month)
MAINTENANCE COST - repair cost as a percentage of purchase price (1 = 20 to 40%, 2 = 40% to 60%, 3 = 60% to 80%, 4 = 80% to 100%, and 5 = Over 100%)
SUPERVISOR REVIEW - based on a review of work order history and the Supervisor’s experience (1 = very good condition to 5 = very poor condition)
Vehicles with a total score of 22 or below are considered to be in good condition and are not scheduled for replacement. When the total score is between 23 and 27 the vehicle must have a Supervisor rating of 4 or 5 before qualifying for replacement. A vehicle with a total score of 28 and above still needs a Supervisor rating of 3 or above to qualify for replacement. By weighting the Supervisors score, we insure that vehicles that have been is service for a long time or that have had one exceeding high repair charge but are otherwise in very good condition, are not replaced.
The majority of the City’s fleet usage is tracked by hours used instead of miles driven. By tracking hours, we get a more accurate assessment of the wear and tear the engine and drive train receive in the “stop and go” city environment. We estimate that city driving accounts for 90 to 95 percent of the hours put on City vehicles.
Of the seventy-three light vehicles scheduled for evaluation this year, twenty-four have met the scoring requirements for replacement. Of the twenty-four vehicles scheduled for replacement, thirteen of these vehicles are included in this resolution.
The Fire Department Unit of the Safety Services Area uses vehicles #1056 and #1058, both 2016 Chevrolet Equinox, in its fire administration area. These are take-home vehicles utilized by the Assistant Fire Chiefs who have emergency response requirements. The current vehicles do not meet the performance standards necessary for the department. By converting these to all electric, extended range pickups, the department can respond to emergency situations quickly and the extended range battery provides a longer vehicle operating time while at an emergency scene.
The Public Works Unit of the Public Services Area uses pickup #2297, a 2015 GMC Sierra 1500, for its stormwater utilities operations. This is a take-home vehicle utilized by the stormwater supervisor who has after hour responsibilities. The vehicle is used for the daily activities of overseeing work crew maintenance and repair of the City’s stormwater system. This vehicle will be replaced with an all electric pickup truck.
The Public Works Unit of the Public Services Area uses pickup #2298, a 2015 GMC Sierra 1500, for its sanitary sewer utilities operations. The vehicle is used by utility crews for the daily activities of overseeing maintenance and repair of the City’s sanitary sewer system. This vehicle will be replaced with an all electric pickup truck.
The Public Works Unit of the Public Services Area uses pickup #3296, a 2016 Ford F-250, for its water utilities operations. The vehicle is used by utility crews for the daily activities of overseeing maintenance and repair of the City’s water system. This vehicle is transitioning from a pickup to an all electric cargo van which will allow tools and equipment to be readily available in a secure environment.
The Parks and Recreation Unit of the Community Services Area uses van #6220, a 2011 Chevrolet Express 3500 15 passenger van, for its recreation operations. The vehicle is used to transport customers and tow trailers for canoe/kayak/tubing livery operations from both liveries. The size and use of the vehicle do not match up with any current manufacturer’s electric vehicle offerings so it will be replaced with a gas powered 15 passenger van.
The Forestry Unit of the Community Services Area uses pickup #6241, a 2016 GMC Sierra 1500 4x4, for its forestry operations. The vehicle is used by crews to manage and maintain the City’s forestry resources. This vehicle is also a plow truck and will be replaced by a gas powered, 4x4 pickup truck.
The Forestry Unit of the Community Services Area uses pickup #6266, a 2016 Ford F-250 4x4, for its forestry operations. The vehicle is used by crews to manage and maintain the City’s forestry resources. Additionally, this truck frequently tows the Unit’s trailered equipment and will be replaced with an all electric, extended range pickup truck with a tow package.
The Engineering Unit of the Public Services Area uses van #9257, a 2016 Ford Transit cargo van, for its engineering right of way operations. The vehicle is used by staff to oversee and manage contract work being performed within the City’s right of ways. This vehicle is transitioning from a van to an all electric pickup truck.
The Fleet and Facilities Unit reviewed the bids of the Cooperative Purchasing Programs of the State of Michigan, Oakland County, and Macomb County. Signature Ford was the lowest responsive bidder to the Macomb County bid (bid #21-18) for patrol vehicles and vans. They were also the lowest responsive bidder to the State of Michigan MiDeal cooperative purchasing program (bid #071B7700180) for pickup trucks.
Signature Ford complies with the requirements of the City’s Conflict of Interest and Non-Discrimination ordinances.
Budget/Fiscal Impact: Adequate funding for the purchase of these vehicles is available in the FY23 Fleet Services Fund Operations and Maintenance budget, the FY23 Major Streets Fund (Engineering) Operations and Maintenance budget, the FY23 Water Supply Fund Operations and Maintenance budget, the FY23 Sanitary Sewer Fund Operations and Maintenance budget, the FY23 Stormwater Fund (Forestry and Utilities) Operations and Maintenance budget and the FY23 General Fund (Police, Fire and Parks/Recreation) Operations and Maintenance budget.
The owning department of each vehicle will be responsible for the Fleet replacement cost each year. This Fleet replacement cost covers the future cost of replacing the vehicles purchased under this resolution. Fuel and maintenance savings for those electric and hybrid drivetrain system vehicles purchased will recoup some of this additional expense based on the usage of the vehicle.
Green Fleet Policy: The Green Fleet Committee approved the need for the replacement of these vehicles, that the proposed replacements are consistent with the Green Fleet Policy and recommended the approval of this resolution. The Sustainability and Innovations Manager has concurred with the actions of the Committee.
Staff
Prepared by: Matthew J. Kulhanek, Fleet & Facilities Manager
Reviewed by: John Fournier, Deputy City Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Fleet and Facilities Unit needs to purchase replacement vehicles for the City’s fleet;
Whereas, Signature Ford, Owosso, MI, is the lowest responsive bidder to the State of Michigan MiDeal program and the Macomb County Cooperative Bid program for these replacement vehicles; and
Whereas, Signature Ford complies with the requirements of the City’s Conflict of Interest and Non-Discrimination Ordinances;
RESOLVED, That City Council approve the issuance of a purchase order to Signature Ford for the purchase of three 2023 Ford Police Interceptor Utility Hybrid patrol vehicles at $46,171.00 each, two 2023 Ford F-150 Extended Range Lightning SSV all electric pickup trucks at $55,047.00 each, two 2023 Ford F-150 Lightning all electric pickup trucks at $43,511.00 each, one 2023 Ford F-150 Extended Range Lightning all electric pickup truck with tow package at $58,397.00, one 2023 Ford F-150 Lightning all electric pickup truck at $44,726.00, one 2023 Ford F-150 Lightning all electric pickup truck at $43,656.00, one 2023 Ford F-150 4x4 pickup truck at $38,148.00, one 2023 Ford E-Transit 350 all electric cargo van at $56,749.00 and one 2023 Ford Transit 350 15 passenger van at $49,714.00 for a total of $627,019.00;
RESOLVED, That funds for the purchase of these vehicles in the amount of $382,642.00 comes from the FY2023 Fleet Services budget, in the amount $55,901.00 comes from the FY2023 General Fund Fire Department budget, in the amount of $75,808.00 comes from the FY2023 General Fund Police Department budget, in the amount of $25,109.00 comes from the FY2023 General Fund Parks/Recreation budget, in the amount of $13,433.00 comes from the FY2023 Major Streets Fund Engineering budget, in the amount of $15,152.00 comes from the FY2023 Stormwater Fund Forestry budget, in the amount of $12,676.00 comes from the FY2023 Stormwater Fund Utilities budget, in the amount of $20,872.00 comes from the FY2023 Water Supply Fund Utilities budget and in the amount of $25,426.00 comes from the FY2023 Sanitary Sewer Fund Utilities budget with funds to be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (nos. 0038, 0042, 0093, 0171, 1056, 1058, 2297, 2298, 3296, 6220, 6241, 6266 and 9257) be sold at the next City vehicle auction held after the vehicles are removed from service; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.