Title
Resolution to Approve the Purchase of Two Vehicles from Gorno Ford (MiDeal Bid - $93,926.00)
Memorandum
The attached resolution authorizes the purchase of two 2021 Ford Mach-E AWD sedans at $46,963.00 each for a total of $93,926.00 from Gorno Ford, Woodhaven, Michigan
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 police vehicles listed on this resolution will replace two vehicles that will have reached the contractual limit in the next year.
The Mach-E is an all-electric, small crossover vehicle that is new on the market. The City will be purchasing AWD models to address winter weather concerns. The vehicle is rated at approximately 210 miles per charge with AWD.
Production of the basic (Select trim) Mach-E is not expected to begin until February or March 2021. With uncertainty on how many vehicles have been pre-ordered, staff does not expect to receive the vehicles until next fall, well after the contractual replacement deadlines for the two outgoing vehicles. The Police Department has reached out to the union to request a Memorandum of Understanding to extend the contractual replacement deadlines for the two outgoing vehicles.
As a fully electric vehicle, this purchase is consistent with many of the City’s established sustainability efforts including the Green Fleets Policy and the A2 Zero Plan.
The Fleet and Facilities Unit reviewed the bids of the cooperative purchasing programs of the State of Michigan, Oakland County, and Macomb County. Only the State of Michigan MiDeal program currently has the vehicle available and Gorno Ford was the lowest responsive bidder to that cooperative purchasing program (MiDeal contract #071B7700181).
Gorno 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 FY21 Fleet Services Fund budget and the FY21 Office of Sustainability and Innovations Operations budget.
The Sustainability and Innovations Office will fund $30,549.00 towards the initial purchase price of these electric vehicles. The Police Department will be responsible for the increased Fleet replacement cost each year. This Fleet replacement cost covers the future cost of replacing the vehicles purchased under this resolution. Fuel savings from operating these electric vehicles will offset some of this additional expense based on the usage of the vehicle.
These vehicles will also require Level 2 chargers at an estimated cost of $5,000.00. The purchase and installation of this charging infrastructure is not part of this resolution and will be funded separately through the Fleet Services Fund.
Green Fleet Policy: On November 16, 2020, 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, Assistant City Administrator
Approved by: Tom Crawford, City Administrator
Body
Whereas, The Fleet and Facilities Unit needs to purchase replacement vehicles for the City’s fleet;
Whereas, Gorno Ford, Woodhaven MI, is the lowest responsive bidder to the State of Michigan MiDeal cooperative purchasing program; and
Whereas, Gorno 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 Gorno Ford for the purchase of two all-electric Ford Mach-E AWD sedans at $46,963.00 each for a total amount of $93,926.00;
RESOLVED, That funds for the purchase of these vehicles in the amount of $63,377.00 comes from the FY 2021 Fleet Services budget and in the amount of $30,549.00 comes from the FY2021 Office of Sustainability and Innovations budget with funds to be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (nos. 0163 and 0164) 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.