Title
Resolution to Approve the Purchase of Vehicles from Todd Wenzel GMC (Oakland County Bid - $84,753.00)
Memorandum
The attached resolution authorizes the purchase of one 2021 Chevrolet Tahoe 4x4 at $37,353.00, one 2021 Chevrolet Silverado 1500 4x2 pickup truck at $22,925.00, and one 2021 Chevrolet Silverado 1500 4x2 double cab pickup truck at $24,475.00 for a total of $84,753.00 from Todd Wenzel 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 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 Supervisors score, we insure that vehicles that have been is service for a long time or that have had one exceeding high repair charge but are otherwise in very good condition, are not replaced.
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.
Of the twenty five light vehicles scheduled for evaluation this year, four have met the scoring requirements for replacement. Of the four vehicles scheduled for replacement, three of these vehicles are included in this resolution.
The Fire Department uses truck # 1054, a 2013 Chevrolet Silverado 2500 4x4 pickup truck, for its fire protection operations. The truck has been in service for 7 years and has 3,544 hours of operation. It averages 0.36 repair work orders per month and the cost of repairs has exceeded 119% of its purchase price. The Fire Department has requested that this truck be upgraded to a Chevrolet Tahoe 4x4. The department is transitioning the use of this vehicle to serve as an incident command vehicle for the battalion chief at fire scenes. The department determined their operational needs and evaluated both the Chevrolet Tahoe and the Ford Utility vehicles to meet those needs. They presented the transition plan to the City Administrator’s Office and were approved for the upgrade in early 2020.
The Engineering Unit of the Public Services Area uses minivan # 4240, a 2009 Dodge Grand Caravan, for its civil engineering service operations. The minivan has been in service for 11 years and has 2,705 hours of operation. It averages 0.19 repair work orders per month and the cost of repairs has exceeded 77% of its purchase price. The Engineering Unit has repurposed this vehicle from right-of-way maintenance purposes to capital project inspection work; therefore, has requested that this minivan be upgraded to a two wheel drive half-ton pickup truck to allow them to easily carry equipment and traverse difficult construction work sites. Since, the use of this vehicle has changed, the funding source will be updated to reflect the appropriate intended use.
The Engineering Unit of the Public Services Area uses minivan # 4241, a 2013 Ram C/V Tradesman, for its communications, traffic signs and signals operations. The minivan has been in service for 7 years and has 4,820 hours of operation. It averages 0.34 repair work orders per month and the cost of repairs has exceeded 120% of its purchase price. The Engineering Unit has requested that this minivan be upgraded to a two wheel drive half-ton pickup truck to allow them to transport traffic signals, repair parts and communication equipment as needed.
The Fleet and Facilities Unit reviewed the bids of the Cooperative Purchasing Programs of the State of Michigan, Oakland County, and Macomb County. Todd Wenzel GMC was the lowest responsive bidder to the Oakland County bid (bid #005841) for these vehicles.
Todd Wenzel GMC 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 approved FY21 Project Management and Fleet Services Fund operations and maintenance budgets.
Green Fleet Policy: On October 19, 2020, the Green Fleet Committee approved the need for the replacement of these vehicles, that the proposed replacements are 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: Matthew J. Kulhanek, Fleet & Facilities Manager
Reviewed by: John Fournier, Assistant City Administrator
Approved by: Tom Crawford, City Administrator
Body
Whereas, The Fleet and Facilities Unit needs to purchase replacement vehicles for the City’s fleet;
Whereas, Todd Wenzel GMC, Westland MI, is the lowest responsive bidder to the Oakland County Cooperative Bid program;
Whereas, Todd Wenzel GMC complies with the requirements of the City’s Conflict of Interest and Non-Discrimination ordinances; and
Whereas, Funding for these replacements is available in the approved FY 21 Project Management and Fleet Services fund operations and maintenance budgets;
RESOLVED, That City Council approve the issuance of a purchase order to Todd Wenzel GMC for the purchase of one 2021 Chevrolet Tahoe 4x4 at $37,353.00, one 2021 Chevrolet Silverado 1500 4x2 pickup truck at $22,925.00, and one 2021 Chevrolet Silverado 1500 4x2 double cab pickup truck at $24,475.00 for a total amount of $84,753.00;
RESOLVED, That funds for the purchase of these vehicles in the amount of $84,753.00 be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (nos. 1054, 4240 and 4241) be sold at the next City vehicle auction held after the vehicles are removed from service;
RESOLVED, That the replacement costs for vehicle 4240 will be refunded to the Major Street Fund; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.