Title
Resolution to Authorize the Purchase of Vehicles from Lunghamer Ford and Appropriate Funding (State of Michigan MiDeal - $538,797.00) (8 Votes Required)
Memorandum
The attached resolution authorizes the purchase of three 2025 Ford Police Interceptor Utility Hybrid at $48,548.00, one 2025 Ford Police Interceptor Utility Hybrid at $48,188.00, three 2025 Ford F-150 Lightnings at $48,754.00 each, one 2025 Ford F-250 4x4 at $49,730.00, one 2025 Ford F-350 Crew Cab 4x4 at $55,607.00, two 2025 Ford F-250 4x2 at $46,683.00 each, for a total of $538,797.00 through the State of Michigan MiDeal cooperative purchasing program (#071B7700180) 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.
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 fifty light vehicles scheduled for evaluation this year, twenty-one have met the scoring requirements for replacement.
The Public Works Unit of the Public Services Area uses pickup #3299, a 2016 Ford F-250 4x2 with liftgate for its utility’s operations. The vehicle is used by the water utilities crew for the daily activities of overseeing maintenance and repairs of the City’s underground water pipes. The size and use of this vehicle do not match up with any current manufacturer’s electric vehicle offerings so it will be replaced with a gas powered 2025 Ford F-250 4x2 pickup truck with a liftgate. The purchase price of this vehicle is only for the truck and the liftgate will be added after the vehicle is delivered.
The Engineering Unit of the Public Services Area uses vans #9258 and 9259, both 2016 Ford Transit 250s, for its engineering operations. These vehicles are used by engineers and surveyors for their daily operations of overseeing and planning of projects going on within the City. Both these vans will be replaced with all-electric Ford F-150 Lightnings.
The Park Operations Unit of the Community Services Area uses van #6230, a 2018 Ram Promaster Van for its park operations. This vehicle is used by parks staff members to go to parks and clean the facilities. This vehicle will be replaced with an all-electric Ford F-150 Lightning.
The Public Works Unit of the Public Services Area uses pickup #4506, a 2016 Ford F-450 4x2 dump body for its street’s operations. The vehicle is used by the streets crew for the daily activities of overseeing maintenance and repairs of the City’s roads and snow removal in the wintertime. The streets department has chosen not to replace this truck with another dump body truck. Due to the department using hot box trailers for asphalt pothole repairs they deemed it not necessary to have this vehicle as a dump body. This vehicle is also a plow truck, the size and use of this vehicle do not match up with any current manufacturer’s electric vehicle offerings and will be replaced by a gas powered 2025 Ford F-350 Crew Cab 4x4 pickup truck. The purchase price of this vehicle is only for the truck and the plow will be added after the vehicle is delivered.
The Police Department of the Safety Services Area uses car #0169, a 2018 Chevy Traverse. Due to the nature of work and miles driven on this vehicle the Police Department is unable to replace this with a full electric vehicle so it will be replaced with a 2025 Ford Police Interceptor Utility Hybrid.
The Police Department of the Safety Services Area used patrol car #0042, a 2020 Ford Interceptor Utility Hybrid, that was involved in an accident and was totaled out. Fleet had to use a patrol car that had already been purchased to replace another car in order to make up for the totaled car. Fleet now needs to purchase another patrol car to make up for this. The vehicle being purchased is a 2025 Ford Police Interceptor Utility Hybrid.
The Police Department of the Safety Services Area used patrol car #0052, a 2021 Ford Interceptor Utility Hybrid, that was involved in an accident and was totaled out. Fleet does not currently have a new car in stock to replace this totaled car and Police will be short a patrol car. The vehicle being purchased is a 2025 Ford Police Interceptor Utility Hybrid.
The Police Department of the Safety Services Area used patrol car #0053, a 2021 Ford Interceptor Utility Hybrid, that was involved in an accident and was totaled out. Fleet had to use a patrol car that had already been purchased to replace another car in order to make up for the totaled car. Fleet now needs to purchase another patrol car to make up for this. The vehicle being purchased is a 2025 Ford Police Interceptor Utility Hybrid.
The Fleet & Facilities Unit of the City Administration Services Area uses pickup #7206, a 2014 Ford F-250 4x4 for its airport operation. This vehicle is used by the airport crew to maintain the airport grounds and plow snow in the wintertime. The size and use of this vehicle do not match up with any current manufacturer’s electric vehicle offerings so this vehicle will be replaced by gas powered 2025 Ford F-250 4x4 pickup truck. The purchase price of this vehicle is only for the truck and the plow will be added after the vehicle is delivered.
The Engineering Unit of the Public Services Area uses pickup #4248, a 2017 Ford F-250 4x2 with liftgate for its signs and signals operations. This vehicle is used by the sign and signals crew for the daily activities of overseeing maintenance and repairs of the City’s signs and signals infrastructure. The size and use of this vehicle do not match up with any current manufacturer’s electric vehicle offerings so it will be replaced with a gas powered 2025 Ford F-250 4x2 pickup truck with a liftgate. The purchase price of this vehicle is only for the truck and the liftgate will be added after the vehicle is delivered.
Lunghamer Ford complies with the requirements of the City’s Conflict of Interest and Non-Discrimination ordinances.
Budget/Fiscal Impact: Vehicle purchase prices have increased significantly over the last few years due to inflationary pressures and vehicle supply issues. As such, replacement funding targets made many years ago do not cover the costs of these replacement vehicles, especially with the additional costs associated with purchasing electric vehicles.
Supplemental funding is necessary, and the following one-time FY25 capital contributions were made to the Fleet Services Fund:
• Engineering Unit (Fund 49) - $34,701.00
• Engineering Unit-Signs/Signals (Fund 21) - $3,295.00
• Police Department (Fund 10) - $105,599.00
• Public Works Unit-Water Utilities (Fund 42) - $6,323.00
• Park Operations Unit (Fund 71) - $28,937.00
• Fleet & Facilities-Airport (Fund 48) - $5,687.00.
With the appropriation of this $184,542.00 of capital contribution from Fleet revenue, adequate funding for the purchase of these vehicles is available in the FY25 Fleet Services Fund Operations and Maintenance budget.
The owning department of each vehicle 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: Commercially available electric pickup trucks are not currently able to be used to plow snow. After discussions with the primary manufacturers of electric pickups, they have stated that it may be several years before an electric pickup truck is available that has snow plowing capabilities.
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
Matthew J. Kulhanek, Fleet and Facility Unit Manager
Reviewed by: Marti Praschan, Interim 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 #071B7700180 for these replacement vehicles;
Whereas, Lunghamer Ford complies with the requirements of the City’s Conflict of Interest and Non-Discrimination Ordinances; and
Whereas, Upon approval of the appropriation requests from Fleet revenue adequate funding for the purchase of these vehicles is available in the FY2025 Fleet Services Fund Operations and Maintenance budget;
RESOLVED, That City Council approve the issuance of a purchase order to Lunghamer Ford for the purchase of three 2025 Ford Police Interceptor Utility Hybrid at $48,548.00, one 2025 Ford Police Interceptor Utility Hybrid at $48,188.00, three 2025 Ford F-150 Lightnings at $48,754.00 each, one 2025 Ford F-250 4x4 at $49,730.00, one 2025 Ford F-350 Crew Cab 4x4 at $55,607.00, two 2025 Ford F-250 4x2 at $46,683.00 each, for a total of $538,797.00;
RESOLVED, That $184,542.00 be appropriated to the FY2025 Fleet Services Fund Operations and Maintenance budget with the source of revenue being capital contributions from the Project Management Fund ($34,701.00), the Major Streets Fund ($3,295.00), the General Fund ($105,599.00), the Water Fund ($6,323.00), the Park Maintenance & Capital Improvement Millage Fund ($28,937.00) and the Airport Fund ($5,687.00); thereby, increasing both the Fleet Services Fund revenue and expenditure budgets;
RESOLVED, That funds for the purchase of these vehicles comes from the FY2025 Fleet Services Fund Operations and Maintenance budget with funds to be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (nos.0042, 0052, 0053, 0169, 3299, 4248 4506, 6230, 7206, 9258, and 9259) 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.