Title
Resolution to Approve the Purchase of Vehicles from Signature Ford (MiDeal - $240,585.00)
Memorandum
The attached resolution authorizes the purchase of five 2022 Ford F-150 Lightning electric pickup trucks at $37,790.00 each and one 2022 Ford F-150 Lightning (extended range battery) electric pickup truck at $51,635.00 for a total of $240,585.00 from Signature Ford, Owosso Michigan.
The Fleet and Facilities Unit establishes a replacement schedule for each class of vehicle purchased by the City. Once a vehicle hits the preset age, we use a two step evaluation process to determine which vehicles are actually replaced. That process has been completed for FY22 and all vehicles being replaced have been approved by Council.
The group of vehicles included in this resolution are being targeted for replacement to support multiple sustainability efforts approved by City Council. All six vehicles being replaced will be fully depreciated in FY23 when we expect these replacements to be delivered. These six vehicles were targeted for several reasons. A few pickup truck replacements were deferred earlier in FY22 because the electric pickup truck market was just beginning to emerge. Longer delivery times are expected on all new vehicles, especially electric vehicles, because of current market pressures. The electric pickup truck market is in its infancy and available vehicles have limited functionality. Matching these vehicle limitations to the City’s operational needs allows for a small pool of replacements. As an example, new electric pickup truck manufacturers (Ford, GM, Rivian) are only producing crew cab trucks with short boxes (5’- 6’ long) and no snow plowing capabilities. This is not expected to change for several years so most of the City’s operational needs for pickup trucks will not be met with electric vehicles for some time.
Purchasing this first group of electric trucks will provide Fleet Services valuable operational information about vehicle use, limitations and battery life. Two of these six vehicles are being purchased specifically to measure these criteria.
The Ford F-150 Lightning is an all-electric half-ton pickup truck with approximately 230 miles of range (standard battery) or 300 miles of range (extended range battery) on a single charge. Based on expected usage, the vehicle will be able to handle the normal driving activities of a work shift and can fully recharge overnight using a Level 2 (240v) charger.
The Community Standards Unit of the Safety Services Area uses pickup #0523, a 2016 Chevrolet Colorado, for its enforcement of community ordinances and parking operations.
The Public Works Unit of the Public Services Area uses pickup #3261, a 2015 GMC Sierra 1500, as a take home supervisor vehicle. Charging of the vehicle will be done at City owned chargers at the work site.
The Public Works Unit of the Public Services Area uses pickup #3288, a 2016 Chevrolet Colorado, as a take home vehicle. This vehicle is assigned to the Miss Dig technician who handles call outs and gets significant use. Charging of the vehicle will be done at City owned chargers at the work site.
The Parks & Recreation, Forestry Operations Unit of the Community Services Area uses pickup #6261, a 2016 Ford F-250, as a take home supervisor vehicle. Charging of the vehicle will be done at City owned chargers at the work site.
The Parks & Recreation, Park Operations Unit of the Community Services Area use pickup #6265, a 2016 Ford F-250 Crew Cab, for its park’s maintenance operations. This vehicle frequently tows a trailer with multiple mowers or other pieces of equipment and will give Fleet Services good data on how frequent towing impacts battery range. The electric truck being purchased includes an extended range battery and max towing package.
The Engineering Unit of the Public Services Area uses van #9254, a 2013 Chevrolet Express 2500, for its private development inspection and engineering operations. This is one of eleven full sized vans utilized by the Engineering Unit. This replacement will allow us to evaluate the suitability of an all-electric pickup truck for this type of operation. An all-electric van has been ordered, but not yet received, to allow us to evaluate different electric vehicle types on this segment of the City’s fleet.
The Fleet and Facilities Unit reviewed the bids of the cooperative purchasing programs of the State of Michigan and Sourcewell. Signature Ford was the lowest responsive bidder to the State of Michigan MiDeal cooperative purchasing program (MiDeal contract #071B7700180) for the Ford F-150 Lightnings.
Signature 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 FY22 Fleet Services Fund Operations and Maintenance budget, the FY22 Project Management Fund Operations and Maintenance budget, the FY22 Water Utility Fund Operations and Maintenance budget, the FY22 Major Streets Fund Operations and Maintenance budget, the FY22 Parks Maintenance Millage Fund Operations and Maintenance budget and the FY22 General Fund Police Department Operations and Maintenance budget.
The owning department of each electric vehicle 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 and reduced maintenance expenses will recoup some of this additional expense based on the usage of the vehicle.
Green Fleet Policy: The replacement of these vehicles is consistent with the City’s Green Fleet Policy and 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: Milton Dohoney Jr., Interim City Administrator
Body
Whereas, The Fleet and Facilities Unit needs to purchase replacement vehicles for the City’s fleet;
Whereas, Signature Ford, Owosso MI, is the lowest responsive bidder to the MiDeal cooperative purchasing program; and
Whereas, Signature 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 Signature Ford for the purchase of five 2022 Ford F-150 Lightning electric pickup trucks at $37,790.00 each and one 2022 Ford F-150 Lightning (extended range battery) electric pickup truck at $51,635.00 for a total of $240,585.00;
RESOLVED, That funds for the purchase of these vehicles in the amount of $120,448.00 comes from the FY2022 Fleet Services budget, $23,795.00 comes from the FY2022 Project Management Fund budget, $4,594.00 comes from the FY2022 Water Utility Fund budget, $37,790.00 comes from the FY2022 Major Streets Fund budget, $35,129.00 comes from the FY2022 Parks Maintenance Millage Fund budget and in the amount of $18,829.00 comes from the FY2022 General Fund Police Department budget with funds to be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (nos. 0523, 3261, 3288, 6261, 6265 and 9254) 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.