Title
Resolution to Approve the Purchase of One Compact Car, Three ¾ ton Four Wheel Drive Pickup Trucks, and One Sports Utility Vehicle from Varsity Ford (Macomb County Bid $94,827.00)
Memorandum
The attached resolution authorizes the purchase of one 2008 Ford Focus at $12,490.00, one 2008 Ford F-250 four wheel drive pickup at $20,280.00, one 2008 Ford F-250 four wheel drive pick up with power windows at $20,810.00, one 2008 Ford F-250 four wheel drive pickup with extended cab at $22,176.00, and one 2008 Ford Escape at $19,071.00 for the total amount of $94,827.00 from Varsity Ford, Ann Arbor, Michigan.
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 (except for certain police vehicles). When a vehicle comes up on the replacement schedule, we use a six category evaluation, which includes the vehicles age, miles/hours of use, type of service, reliability, maintenance and repair cost, and general condition. A point score is given in each category and any vehicle with a total score over 23 is then brought in for inspection by a team of Fleet mechanics.
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.
The inspection process insures that the mechanics look for required and potential repairs. Required repairs are items that have excessive wear and must be replaced if the vehicle is retained in service. Potential repairs are items that our experience tells us will likely fail within the next year of use. Potential repairs may include items such as starters, alternators, water pumps, shocks and struts that have not already been replaced.
Of the forty-nine light vehicles scheduled for evaluation this year, thirty-nine had total scores high enough to qualify them for the mechanic's inspection. Based on the inspection we are recommending a total of twelve vehicles be replaced. Four of the twelve vehicles recommended for replacement are listed on this resolution along with a police detective vehicle. Police vehicle replacement is mandated by contract and therefore they are not run through the evaluation process.
The results of our evaluation and the Fleet mechanic's inspections are as follows:
The Community Standards Unit of the Safety Services Area uses car number 4154 for its compliance officers. This vehicle has been in service 7 years with 4000 hours of operation. The total cost of repairs performed on this vehicle exceeds 74 percent of the original purchase price and it has averaged 0.56 repairs per month over its life. Mechanically this car needs a center console, driver's seat, power steering pressure switch, catalytic converter, water pump, composite headlamps lens, and the transmission fluid replaced. It has the potential to need replacement of the air conditioning compressor and condenser, drive belt, front and rear brakes, and the coolant hoses. These repairs come to an estimated cost of $4,200.00.
The Fleet and Facility Unit of the Public Services Area uses pickup number 1256 for its facility maintenance operations. The truck has been in service 8 years with 4095 hours of operation. The total cost of repairs performed on this vehicle exceeds 79 percent of the original purchase price and it has averaged 0.49 repairs per month over its life. Mechanically this truck needs a bench seat, power steering pump, air conditioning compressor clutch, and rear tires. It has the potential to need replacement of drive belts, belt tensioner, battery, and water pump. These repairs come to an estimated cost of $2,300.00. In order to improve operational efficiency, this vehicle will be upgraded to a four-wheel drive truck at a price of $20,280.00. A snowplow and salt spreader will be added for an estimated cost of $7,000.00 for a total vehicle cost of $27,280.00.
The Field Operation Unit of the Public Services Area uses truck number 3260 in its Utilities Field operation. The truck has been in service for 8 years and has over 88,000 miles of use. Mechanically this truck needs a bench seat, rear shocks, an idler arm, water pump, drive belt tensioner, and a mass airflow sensor. It has the potential to need replacement of the drive belt and ignition coil. These repairs come to an estimated cost of $2,100.00. During the snowstorm in December of 2007 the Street Maintenance Supervisor was unable to investigate problem areas because his currently assigned vehicle is a two-wheel drive mini pickup, which was unable to maneuver in the snow-covered streets. We are therefore upgrading this truck to a ¾ ton, four wheel drive with power windows and re-assigning it to the Street Maintenance Supervisor. The mini pickup will be assigned to the Utilities Field crew.
The Field Operations Unit of the Public Services Area uses truck number 6274 for the Forestry Area Supervisor. The truck has been in service for 7 years and has 3225 hours of operation. The total cost of repairs performed on this vehicle exceeds 78 percent of the original purchase price and it has averaged 0.53 repairs per month over its life. Mechanically this truck needs an oil pan gasket, water pump, steering gear box, and front springs. It has the potential to need replacement of belts and rear brakes. These repairs come to an estimated cost of $3525.00. This truck will be upgraded to a four-wheel drive with extended cab and be re-assigned to the Park Maintenance crew. The truck being used by this crew will then be assigned to the Forestry Supervisor.
The Ford Escape sports utility vehicle will replace a police detective vehicle that will have reached its 6-year age limit in the next year. 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 Unit of the Safety Services Area requires that the fleet of detective vehicles be made up of a variety of makes, models, and body styles. The fleet includes cars, pickups, and SUV. Because of the need to maintain the mix of body styles in the fleet the Ford Escape was the sole vehicle on the Cooperative Purchasing Programs that met our requirements.
Emissions information from the www.fueleconomy.gov <http://www.fueleconomy.gov> web site for compact cars show that the Ford Focus produces the least amount of greenhouse gas and has the best fuel economy of all the vehicles in their category bid under the cooperative purchasing programs used by the City. Emissions information on the ¾ ton pickup truck was not available. Comparing the same engine in a ½ ton truck showed that the Ford F-250 produced the same amount of greenhouse gas emissions and had the same fuel economy as the other full size pickups bid under the cooperative purchasing programs used by the City
The Green Fleet Committee has reviewed and recommended this purchase per the goals and 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. Varsity Ford, Ann Arbor, MI, was the lowest responsive bidder under the Macomb County Bid. (See attached tabulation sheet)
Varsity Ford received Human Rights approval on October 9, 2007.
Staff
Prepared by: Matthew J. Kulhanek, Fleet & Facilities Manager
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, The Fleet and Facilities Unit needs to purchase replacement vehicles for the City's fleet;
Whereas, Sufficient funds are available in the approved FY08 Motor Equipment budget;
Whereas, Competitive bids were received by the State of Michigan, Oakland County, and Macomb County's Cooperative Bid programs;
Whereas, Varsity Ford, Ann Arbor, MI, is the lowest responsive bidder to Macomb County; and
Whereas, Varsity Ford received Human Rights approval on October 9, 2007;
RESOLVED, That City Council approve the issuance of a purchase order to Varsity Ford in the amount of $94,827.00 for the purchase of one 2008 Ford Focus compact car, three 2008 Ford F-250 ¾ ton four wheel drive pickups, and one 2008 Ford Escape sports utility vehicle from the 2008 Motor Equipment budget with the funds to be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (nos. 0128, 1256, 3260, 4154, and 6274) be sold at the next City vehicle auction; and
RESOLVED, That the City Administrator is authorized to take the necessary actions to implement this resolution.