Title
Resolution to Approve the Purchase of Three Extended Cab, Two Wheel Drive Mini Pickup Trucks and One Regular Cab Four Wheel Drive Mini Pickup Truck from Red Holman Pontiac-GMC (Oakland County and the State of Michigan Bids $56,700.00)
Memorandum
The attached resolution authorizes the purchase of two 2009 GMC Canyon extended cab two wheel drive mini pickup trucks at $13,741.00 each, one 2009 GMC Canyon extended cab two wheel drive mini pickup trucks at $14,141.00 and one 2009 GMC Canyon four wheel drive regular cab mini pickup at $15,077.00 for the total amount of $56,700.00 from Red Holman Pontiac-GMC, Westland, 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. When a vehicle comes up on the replacement schedule, we conduct a six category evaluation which considers the vehicle's 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 ensures 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 fifty-nine light vehicles scheduled for evaluation this year, fifty-seven had total scores high enough to qualify them for the mechanic's inspection. Based on these inspections, we are recommending that eighteen vehicles be replaced, two vehicles be transferred and six vehicles be removed from the fleet. Four of the eighteen vehicles recommended for replacement are listed on this resolution.
The results of our evaluation and the Fleet mechanic's inspections are as follows:
The Planning and Development Unit of the Community Services Area uses truck number 5213, a 2002 Chevrolet S-10 mini pickup truck. We are requesting it be replaced with the same type of vehicle, a 2009 GMC Canyon. The vehicle is used to provide transportation for a development services inspector to conduct inspections. This truck has been in service for 7 years and has 1641 hours/42677 miles of operation. The total cost of repairs performed on this vehicle exceeds 56 percent of the original purchase price. Over the last two years this truck has been in for service 6 times of which 1 repair (16.5 %) has been for a breakdown. The general condition of this vehicle was rated 'fair' by the Supervisor in Fleet Services. Mechanically this truck needs a water pump, starter, steering gear seal, timing cover gasket, transmission pan gasket, and front oil seal on the transmission for an estimated cost of $2,025.00. It has the potential to need replacement of the serpentine drive belt, belt tensioner, alternator, front brakes, rear shocks, and an exhaust system for an estimated cost of $2,225.00 making a total estimated cost of $4,250.00. This vehicle is recommended for replacement due to reliability and economic considerations.
The Planning and Development Unit also uses truck number 5214, a 2002 Chevrolet S-10 mini pickup truck. We are requesting it be replaced with the same type of vehicle, a 2009 GMC Canyon. The vehicle is used to provide transportation for a development services inspector to conduct inspections. This truck has been in service for 7 years and has 3317 hours/42711 miles of operation. The total cost of repairs performed on this vehicle exceeds 63 percent of the original purchase price. Over the last two years this truck has been in for service 9 times of which 1 repair (11.0 %) has been for a breakdown. The general condition of this vehicle was rated 'fair' by the Supervisor in Fleet Services. Mechanically this truck needs a timing cover gasket, transmission pan gasket, front oil seal on the transmission, and idler arm for an estimated cost of $910.00. It has the potential to need replacement of the serpentine drive belt, belt tensioner, water pump, and A/C compressor for an estimated cost of $1,990.00 making a total estimated cost of $2,900.00. This vehicle is recommended for replacement due to reliability and economic considerations.
The Field Operations Unit of the Public Services Area uses truck number 6210, a 2002 Chevrolet S-10 mini pickup truck. We are requesting it be with the same type of vehicle with an upgrade of power windows, a 2009 GMC Canyon. This vehicle is used to deliver new, replace and repair damaged or stolen refuse, recycling and compost carts, totes and wire crates; respond to residential and commercial customer complaints; investigate and set-up commercial refuse/recycle dumpster repairs and customer meet/greet; respond to requests for new service (i.e. food waste program, recycling); respond to customer needs for Solid Waste special assistance program (set-out service); respond and clean-up of trash or fluid spills, AAPD vehicle accident clean-up; community standards pick-up of tree limbs, Christmas trees and debris; investigating and repair of property damage caused by Solid Waste vehicles; respond and assist route drivers in field conditions; and servicing streets inaccessible by route drivers due to weather conditions. Many of these tasks require a larger truck bed then this mini pickup truck has. Therefore once the new vehicle is received we will transfer the Solid Waste Supervisors truck, a 2007 Ford F-150 full size pickup, into this operation and will place the new truck into services the Supervisors Truck. It is our standard practice to equip supervisor's vehicles with power windows. This truck has been in service for 7 years and has 3,725 hours/49,813 miles of operation. The total cost of repairs performed on this vehicle exceeds 90 percent of the original purchase price. Over the last two years this car has been in for service 21 times of which 8 repairs (38.1 %) have been for breakdowns. The general condition of this vehicle was rated 'poor'. Mechanically this truck needs an A/C compressor, power steering pump, idler arm, rear shocks, and front tires for an estimated cost of $2,790.00. It has the potential to need an alternator, and front and rear brakes for an estimated cost of $1,140.00 making a total estimated cost of $3,930.00. This truck needs to be replaced because it performs a vital role in our customer service response for our Solid Waste operations.
The Field Operation Unit of the Public Services Area uses truck number 6276, a 2002 GMC C-2500, full size two wheel drive pickup truck. We are requesting it be replaced with a four wheel drive mini pickup, 2009 GMC Canyon This vehicle is used to transport staff, materials and supplies for spring, summer and fall activities in our Parks. This truck has been in service for 7 years and has 4840 hours 54,502 miles of operations. The total cost of repairs performed on this vehicle exceeds 83 percent of the original purchase price. Over the last two years this car has been in for services 23 times of which 10 repairs or 43.5 % has been for breakdowns. The general condition of this vehicle was rated 'fair' by the Supervisor in Fleet Services. Mechanically this truck needs oil cooler lines, spark plugs, and ignition wires for an estimated cost of $1,020.00. It has the potential to need replacement of the water pump, thermostat, front shocks, and front brakes for an estimated cost of $3,030.00 making a total estimated cost of $4,050.00. This truck needs to be replaced because it currently does not meet our operational needs. By upgrading this truck we will be able to improve our response time in clearing paths and sidewalks. The GMC Canyon is a smaller vehicle and necessary to perform snow clearance without destroying the turf. In addition, this vehicle is narrow enough to clear paths over bridge decks that currently posses railings. In addition, this will allow us to have better traction and it will reduce our need to repair and restore our turf as the 2 wheel drive vehicles lose traction in the Spring and during high soil moisture content periods. It will also allow us to be able to haul our mowing trailer, snow removal equipment and materials into our park which have varied terrain, slope and varied turf conditions while minimizing the impact the vehicle has on the turf. Lastly, during inclement weather this vehicle is unable to effectively transport staff and equipment through the City. After the truck is received a front snow plow will be added. The estimated cost of the plow is $3,800.00, bringing the total cost of the truck with plow to $18,877.0.
After a review of their operations, the Parks Maintenance group has determined that they can reduce their fleet of mini pickups by one. Truck number 6209 qualified for replacement but will be removed from service and sold at the next City auction.
Emissions information from the www.fueleconomy.gov <http://www.fueleconomy.gov> web site for mini pickups show that the GMC Canyon produce the least amount of greenhouse gas and has the best fuel economy of all the vehicles in their category for the vehicles bid to the cooperative purchasing programs used by the City. Although the Ranger mini pickup offered by Gorno Ford has a purchase price that is $1,002 below the price of the Canyon, the Ranger will produce 1.2 tons more greenhouse gas emission (gge) and cost an additional $236 in fuel per year. Over the 7 year expected life of the trucks, the Ranger will produce 8.4 tons more gge and cost an additional $1,652 in fuel at today's price.
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. Red Holman Pontiac-GMC, Westland, MI, was the lowest responsive bidder under the Oakland County and State of Michigan Bids. (See attached tabulation sheet)
Red Holman Pontiac-GMC received Human Rights approval on January 30, 2009.
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, Competitive bids were received by the State of Michigan, Oakland County, and Macomb County's Cooperative Bid programs;
Whereas, Red Holman Pontiac-GMC, Westland, MI, is the lowest responsive bidder to Oakland County for extended cab, two wheel drive mini pickup trucks;
Whereas, Red Holman Pontiac-GMC, Westland, MI, is the lowest responsive bidder to the State of Michigan for regular cab, four wheel drive mini pickup trucks; and
Whereas, Red Holman Pontiac-GMC received Human Rights approval on January 30, 2009;
RESOLVED, That City Council approve the issuance of a purchase order to Red Holman Pontiac-GMC in the amount of $56,700.00 for the purchase of two 2009 GMC Canyon extended cab, two wheel drive mini pickup trucks and one 2009 GMC Canyon regular cab, four wheel drive mini pickup truck;
RESOLVED, That funds for these purchases come from the 2009 Motor Equipment budget, with funds to be available without regard to fiscal year;
RESOLVED, That the vehicle being removed from the fleet (nos. 6209) be sold at the next City vehicle auction;
RESOLVED, That the vehicles being replaced (nos. 5213, 5214, 6210 and 6276) 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.