Title
Resolution to Approve the Purchase of One Police Detective Vehicle, One Heavy Duty 4X4 Pickup, and Six Compact Cars from Signature Ford (State of Michigan and Macomb County $143,803.00)
Memorandum
The attached resolution authorizes the purchase of one 2013 Ford Explorer at $26,951.00, one 2013 Ford F-350 4X4 at $22,556.00, and six 2013 Ford Focus at $15,716.00 each for a total of $143,803.00 from Signature Ford, Perry, 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 detective vehicle listed on this resolution will replace a vehicle that will have reached the 80,000 miles limit in the next year.
The Police Unit of the Safety Services Area requires that the fleet of detective vehicles consist of a variety of makes, models, and body styles. The fleet includes cars, pickups, and SUVs. To maintain the variety of vehicles needed in this operation, the Fleet & Facility Unit develops a list of vehicles that were awarded a contract under one or more of the cooperative purchasing programs from the State of Michigan, Macomb County, and Oakland County. The list is given to the Police Department and their staff selects vehicles from it that fit their needs. Although green house gas emissions and fuel economy is a major factor in the decision, maintaining a diverse fleet of detective vehicles is the overriding factor in choosing vehicle for this operation.
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, a two step evaluation process is used. 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, 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, a more accurate assessment of the wear and tear the engine and drive train receive in the "stop and go" city environment. Staff estimates that city driving accounts for 90 to 95 percent of the hours put on City vehicles. Some older vehicles, not originally serviced by Fleet Services, were not equipped with hour-meters and only mileage information is available on these units.
Of the eighty-two light vehicles scheduled for evaluation this year, forty-one have met the requirements for replacement. Eight vehicles are included on this resolution including one vehicle assigned to the Police Department. Police vehicle replacement is mandated by contract and therefore not run through the evaluation process.
The Water Treatment Plant uses truck # 3203, a 1999 F-250 pickup, to plow and salt its facilities. The truck has been in service for over 13 years and has 954 hours of use. It averages 0.31 repair work order per year and the cost of repairs has exceeded 182% of its purchase price. The Fleet Service Supervisor rated this vehicle a 5.
The Community Standards Unit of the Safety Services Area uses car # 0500, a 2002 Neon, for transportation of staff. The car has been in service for 9 years and has 7,268 hours of operation. It averages 0.45 repair work orders per month and the cost of repairs has exceeded 227% of its purchase price. The Fleet Service Supervisor rated this vehicle a 4.
The Community Standards Unit of the Safety Services Area uses car # 0503, a 2003 Focus, for transportation of staff. The car has been in service for 10 years and has 6,929 hours of operation. It averages 0.43 repair work orders per month and the cost of repairs has exceeded 158% of its purchase price. The Fleet Service Supervisor rated this vehicle a 4.
Car # 1112 is a Motor Pool car used by staff at the Municipal Center. It is a 2003 Neon that has been in service for 9 years and has 4,475 hours of operation. It averages 0.43 repair work orders per month and repair costs have exceeded 208% of the purchase price. The Fleet Service Supervisor rated this vehicle a 4.
Car # 1113 is a Motor Pool car used by staff at the Municipal Center. It is a 2002 Focus that has been in service for 10 years and has 5,864 hours of operation. It averages 0.35 repair work orders per month and repair costs have exceeded 130% of the purchase price. The Fleet Service Supervisor rated this vehicle a 4.
Car # 1116 is a Motor Pool car used by staff at the Municipal Center. It is a 2000 Focus that has been in service for 12 years and has 56,653 miles of operation. This vehicle was never outfitted with an hour meter. It averages 0.35 repair work orders per month and repair costs have exceeded 132% of the purchase price. The Fleet Service Supervisor rated this vehicle a 4.
The Community Standards Unit of the Safety Services Area uses car # 4030, a 1999 Malibu, for transportation of staff. The car has been in service for 13 years and has an estimated 3,300 total hours of operation. An hour meter was not installed on this car until February of 2011, since that time it has had 1,313 hours of operation. It averages 0.25 repair work orders per month and the cost of repairs has exceeded 162% of its purchase price. The Fleet Service Supervisor rated this vehicle a 4.
This purchase follows the guidelines of the City's Green Fleet Policy to reduce the amount of fuel used and to pay a premium for "greener" vehicles if necessary.
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 State of Michigan on the Ford Focuses and they were the lowest responsive bidder to Macomb County on the Ford Explorer and F-350 pickup.
Adequate funds for these purchases have been budgeted in the Water O&M budget and Fleet Services budgets for fiscal year 2013
Signature Ford received Human Rights approval on February 13, 2013.
Staff
Prepared by: Thomas A Gibbons, Financial Analyst, Fleet & Facility Unit
Reviewed by: Matthew J. Kulhanek, Fleet & Facilities Manager and Craig Hupy, Public Services Area Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, The Fleet and Facilities Unit needs to purchase replacement vehicles for the City's fleet;
Whereas, Signature Ford, Perry, MI, is the lowest responsive bidder to the State of Michigan's and Macomb Counties Cooperative Bid programs; and
Whereas, Signature Ford received Human Rights approval on February 13, 2013;
RESOLVED, That City Council approve the issuance of a purchase order to Signature Ford for the purchase of one 2013 Ford Explorer at $26,951.00, one 2013 Ford F-350 4X4 pickup at $22,556.00, and six 2013 Ford Focus at $15,716.00 each for a total amount of $143,803.00;
RESOLVED, That funds for the purchase of the Ford Explorer and six Ford Focus come from the 2013 Motor Equipment budget with funds to be available without regard to fiscal year;
RESOLVED, That funds for the purchase of the Ford F-350 pickup come from the 2013 Water Fund O& M budget with funds to be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (nos. 0150, 0500, 0503, 1112, 1113, 1116, 3203, and 4030) be sold at the next City vehicle auction; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.