Title
Resolution to Approve the Purchase of Two Mini Vans from Bill Snethkamp's Lansing Dodge (State of Michigan $40,235.00)
Memorandum
The attached resolution authorizes the purchase of two 2009 Dodge Grand Caravans at $20,117.50 each for the total amount of $40,235.00 from Bill Snethkamp's Lansing Dodge, Lansing, 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. Some older vehicles that were not originally serviced by Fleet Services were not equipped with hour meters so only mileage information is available on these units.
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. Two 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 Systems Planning Unit of the Public Services Area uses mini van number 3272, a 1997 Dodge Caravan. We are requesting it be replaced with the same type of vehicle, a 2009 Dodge Grand Caravan. The vehicle is used to transport staff from multiple units for offsite meetings, including seminars, training and other meetings outside of the city. This includes transportation of presentation material like 'story boards'. This van is used by multiple units when larger numbers of persons attend an offsite appointment. The van is used to carry short ladders and other materials to service and maintain the rain gauge network. Additionally, the vehicle is used to transport equipment used to monitor potable water system performance. This van allows staff to consciously car pool or combine trips when multiple persons are attending the same meetings. This van has been is service for 12 years and has 53312 miles. Prior to the opening of the Wheeler Service Center, this vehicle was not maintained by Fleet Services. A limited service history for this vehicle is available for work done prior to the mid-2007 transition to Fleet Services. Since this time the van has been in for service or repair 8 times of which 2 repairs (25.0%) have been for breakdowns. The Supervisor of Fleet Services has reviewed this vehicle and has rated the general condition as 'fair'. Mechanically this mini van needs power steering lines, engine block freeze plugs, camshaft oil seal, engine mount, valve cover gasket, and axle shaft constant velocity joint assembly for an estimated cost of $3,040.00. It has the potential to need replacement of front struts and rear shocks for an estimated cost of $1,060.00 making a total estimated cost anticipated repairs over the next 12 months of $4,100.00. This vehicle is recommended for replacement due to reliability and economic considerations.
The Field Operations Unit of the Public Services Area uses full size van number 4270, a 1997 GMC Savana. We are requesting that this vehicle be replaced with a mini van, a 2009 Dodge Grand Caravan. This vehicle is used to transport staff, tools, parts and test equipment to various locations around the City. The vehicle is used for maintenance and installation of radios, civil defense sirens, and fiber optic. This van has been in service for 12 years and has 3025 hours of operation. The total cost of repairs performed on this vehicle exceeds 60 percent of the original purchase price. Over the last two years this car has been in for service 11 times of which 3 repairs (27.3 %) have been for breakdowns. The general condition of this vehicle was rated 'fair' by the Supervisor in Fleet Services. Mechanically this truck needs a crankshaft main bearing seal, front crankshaft seal, oil pan gasket, water pump, and thermostat for an estimated cost of $1,680.00. It has the potential to need replacement of the radiator hoses, power steering pump, front shocks, rear shocks, front brakes, and rear leaf springs for an estimated cost of $4,290.00 making a total estimated cost of $5,970.00. This vehicle is recommended for replacement due to reliability, operational and economic considerations. This van needs to be replaced with another van because some of the tasks that are performed need to be done in the rear of the van, such as programming radios, programming civil defense sirens, and splicing fiber. By reducing the size of this van we will save on the cost of fuel used throughout the years and still be able to perform the work that needs to be completed using this vehicle.
Emissions information from the www.fueleconomy.gov <http://www.fueleconomy.gov> web site for mini vans shows that the Dodge Grand Caravan produces the same greenhouse gas and has the same fuel economy of all the vehicles in their category for the vehicles bid to the cooperative purchasing programs used by the City. In addition the Dodge Caravan is equipped with an engine that is approved to use E-85 fuel.
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. Bill Snethkamp's Lansing Dodge, Lansing, MI, was the lowest responsive bidder under the State of Michigan Bid. (See attached tabulation sheet)
Bill Snethkamp's Lansing Dodge 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, Bill Snethkamp's Lansing Dodge, Lansing, MI, is the lowest responsive bidder to State of Michigan; and
Whereas, Signature Ford received Human Rights approval on January 30, 2009;
RESOLVED, That City Council approve the issuance of a purchase order to Bill Snethkamp's Lansing Dodge in the amount of $40.235.00 for the purchase of two 2009 Dodge Grand Caravans;
RESOLVED, That funds for these purchases come from the 2009 Motor Equipment budget and the 2009 Sewage Disposal System budget, with funds to be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (nos. 3272 and 4270) 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.