Title
Resolution to Authorize the Purchase of Vehicles from Lunghamer Ford (State of Michigan MiDeal - $326,137.00)
Memorandum
The attached resolution authorizes the purchase of seven 2026 Ford Police Interceptor Utility Hybrid at $46,591.00 each, for a total of $326,137.00 through the State of Michigan MiDeal cooperative purchasing program (#240000001208) from Lunghamer Ford, Owosso, 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 use a two-step evaluation process. 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 supervisor’s score, we ensure that vehicles that have been in service for a long time or that have had one exceeding high repair charge but are otherwise in very good condition, are not replaced.
Most 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.
Of the 43 light vehicles scheduled for evaluation this year, fifteen have met the scoring requirements for replacement. Of the fifteen vehicles scheduled for replacement, 7 of these vehicles are included in this resolution.
The Police Department of the Safety Services Area uses car #0041, a 2020 Ford Interceptor Utility Hybrid, as a patrol vehicle in the Police fleet. This vehicle will be replaced by a 2026 Ford Police Interceptor Utility Hybrid.
The Police Department of the Safety Services Area uses car #0044, a 2020 Ford Interceptor Utility Hybrid, as a patrol vehicle in the Police fleet. This vehicle will be replaced by a 2026 Ford Police Interceptor Utility Hybrid.
The Police Department of the Safety Services Area uses car #0045, a 2020 Ford Interceptor Utility Hybrid, as a K-9 patrol vehicle in the Police fleet. This vehicle will be replaced by a 2026 Ford Police Interceptor Utility Hybrid.
The Police Department of the Safety Services Area uses car #0050, a 2020 Ford Interceptor Utility Hybrid, as a Command patrol vehicle in the Police fleet. This vehicle will be replaced by a 2026 Ford Police Interceptor Utility Hybrid.
The Police Department of the Safety Services Area uses car #0051, a 2020 Ford Interceptor Utility Hybrid, as a patrol vehicle in the Police fleet. This vehicle will be replaced by a 2026 Ford Police Interceptor Utility Hybrid.
The Police Department of the Safety Services Area uses car #0055, a 2020 Ford Interceptor Utility Hybrid, as a patrol vehicle in the Police fleet. This vehicle will be replaced by a 2026 Ford Police Interceptor Utility Hybrid.
The Police Department of the Safety Services Area uses car #0092, a 2020 Ford Interceptor Utility Hybrid, as a patrol vehicle in the Police fleet. This vehicle will be replaced by a 2026 Ford Police Interceptor Utility Hybrid.
Lunghamer 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 FY2026 Fleet Services Fund Operations and Maintenance budget.
The Police department will be responsible for the Fleet replacement cost each year. This Fleet replacement cost covers the future cost of replacing the vehicles purchased under this resolution.
Green Fleet Policy:
The Green Fleet Committee approved the need for the replacement of these vehicles, that the proposed replacement is consistent with the Green Fleet Policy and recommended the approval of this resolution. The Sustainability and Innovations Manager has concurred with the actions of the Committee.
Staff
Prepared by: CJ Stegink, Fleet Supervisor
Carl Konopaska, Fleet & Facilities Unit Manager
Reviewed by: Mariah Walton, Deputy City Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Fleet & Facilities Unit needs to purchase replacement vehicles for the City’s fleet;
Whereas, Competitive bids were received by the State of Michigan MiDeal cooperative purchasing program and Lunghamer Ford, Owosso, MI, was the lowest responsive bidder under contract #240000001208 for these replacement vehicles; and
Whereas, Lunghamer Ford complies with the requirements of the City’s Conflict of Interest and Non-Discrimination Ordinances; and
RESOLVED, That City Council approve the issuance of a purchase order to Lunghamer Ford for the purchase of seven 2026 Ford Police Interceptor Utility Hybrid at $46,591.00 each for a total of $326,137.00;
RESOLVED, That funds for the purchase of these vehicles comes from the FY2026 Fleet Services Fund Operations and Maintenance budget with funds to be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (nos. 0041, 0044, 0045, 0050, 0051, 0055, and 0092) be sold at the next City auction after the asset is removed from service; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.