Title
Resolution to Authorize the Purchase of Vehicles from Lunghamer Ford and Appropriate Funding (State of Michigan MiDeal - $839,023.00) (8 Votes Required)
Memorandum
The attached resolution authorizes the purchase of one 2025 Ford F-150 4x4 at $44,203.00, one 2025 Ford F-250 4x4 at $49,955.00, one 2025 Ford F-350 4x2 with utility body at $87,474.00, one F-250 4x4 with utility body and snow plow at $92,120.00, one 2025 Ford F-450 4x4 with dump body, snow plow and tailgate spreader at $130,110.00, one 2025 Ford Transit 350 15 passenger van at $56,177.00, one 2025 Ford F-450 4x4 with dump body and snow plow at $102,487.00, one 2025 Ford F-550 4x4 with dump body and snow plow at $103,895.00, one 2025 Ford F-450 4x4 with utility body at $97,147.00, one 2025 Ford F-250 4x4 with utility body at $75,455.00 for a total of $839,023.00 through the State of Michigan MiDeal cooperative purchasing program (#MA240000001208) 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 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 weighing the supervisor’s score, we ensure that vehicles that have been in service for a long time or that have had one exceeding the 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 fifty light vehicles scheduled for evaluation this year, twenty-one have met the scoring requirements for replacement. Of the twenty-one vehicles scheduled for replacement, ten of these vehicles are included in this resolution.
The Public Works Unit of the Public Services Area uses pickup #2299, a 2017 Ford F-350 4x2 with dumper insert for its utility’s operations. The vehicle is used by the storm water utilities crew for the daily activities of overseeing maintenance and repairs of the City’s underground storm water infrastructure. The department requested this truck be upgraded to an F-450 4x4 with a dump body and add a snowplow. The current truck is unable to handle the loads that the department needs to carry around and this upgrade will make operations more efficient while also not overworking the truck. The size and use of this vehicle does not match up with any current manufacturer’s electric vehicle offerings so it will be replaced with a gas powered 2025 Ford F-450 4x4 pickup truck with dump body and snowplow. The purchase price of this vehicle includes snowplow.
The Public Works Unit of the Public Services Area uses pickup #2504, a 2017 Ford F-450 4x4 with dump body and snowplow 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. Due to the current trucks condition from being overloaded this truck is being upgraded to an F-550 which has a higher payload capacity. This vehicle is also a plow truck in the winter. The size and use of this vehicle does not match up with any current manufacturer’s electric vehicle offerings so it will be replaced with a gas powered 2025 Ford F-550 4x4 pickup truck with dump body and snowplow. The purchase price of this vehicle includes snowplow.
The Public Works Unit of the Public Services Area uses pickup #3285, a 2017 Ford F-450 4x4 with utility body 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-450 4x4 pickup truck with utility body.
The Parks and Recreation Unit of the Community Services Area uses van #6223, a 2013 GMC Savana 3500 15 passenger van for its park’s operation. This van is used by livery crews to transport customers around and trailer canoes back to the canoe launch. 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 2024 Ford Transit 350 15 passenger van.
The Parks and Recreation Unit of the Community Services Area uses pickup #6240, a 2016 GMC Seirra 1500 4x4 for its park’s operation. This vehicle is used by parks crews to maintain park grounds and open spaces. This vehicle is also a plow truck, and a salt spreader is installed in the winter. 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-150 4x4 pickup truck. The purchase price of this vehicle is only for the truck and the plow and spreader will be added after the vehicle is delivered.
The Parks and Recreation Unit of the Community Services Area uses pickup #6206, a 2016 Ford F-250 4x4 for its park’s operation. This vehicle is used by parks crews to maintain park grounds and open spaces. This vehicle is also a plow truck in the winter. 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 a gas powered 2025 Ford F-250 4x4 pickup truck. The purchase price of this vehicle is only for the truck and the plow and spreader will be added after the vehicle is delivered.
The Parks and Recreation Unit of the Community Services Area uses pickup #6260, a 2013 Ford F-350 4x2 with utility body for its park’s operation. This vehicle is used by parks crews to tow trailers around with mowers on them to maintain park buildings, grounds and open spaces. 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-350 4x2 with utility body pickup truck.
The Parks and Recreation Unit of the Community Services Area uses pickup #6267, a 2016 Ford F-250 4x4 with utility body for its park’s operation. This vehicle is used by parks crews to tow trailers around with mowers on them to maintain park buildings, grounds and open spaces. This vehicle is also a plow truck in the winter. 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 a gas powered 2025 Ford F-250 4x4 pickup truck. The purchase price of this vehicle includes snowplow.
The Parks and Recreation Unit of the Community Services Area uses pickup #6528, a 2016 Ford F-450 4x2 with dump body for its park’s operation. This vehicle is used by parks crews to maintain park grounds and open spaces. This vehicle is also a plow truck, and a salt spreader is installed in the winter. Parks has requested this truck be upgraded to a 4x4 due to it being a plow truck and the current truck struggles with plowing with it only being a 4x2. 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-450 4x4 pickup truck with dump body. The purchase price of this vehicle includes the plow and spreader.
The Water Treatment Plant of the Public Services Area uses pickup #3283, a 2014 Ford F-250 4x4 for its operations. The vehicle is used by the water treatment plant crew for the daily activities of overseeing maintenance and inspections of the City’s drinking water system. 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 with utility body.
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:
• Public Works Unit-Stormwater Sewer (Fund 69) - $60,689.00
• Public Works Unit-Sewage Disposal (Fund 43) - $2,703.00
• Public Works Unit-Water Utilities (Fund 42) - $28,424.00
• Water Treatment Plant-Water Utilities (Fund 42) - $17,658.00
• General Fund (Fund 10) - $71,971.00
• Park Operations Unit (Fund 71) - $93,183.00
With the appropriation of this $274,628.00 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
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 #MA240000001208 for these replacement vehicles; and
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 one 2025 Ford F-150 4x4 at $44,203.00, one 2025 Ford F-250 4x4 at $49,955.00, one 2025 Ford F-350 4x2 with utility body at $87,474.00, one F-250 4x4 with utility body and snow plow at $92,120.00, one 2025 Ford F-450 4x4 with dump body, snow plow and tailgate spreader at $130,110.00, one 2025 Ford Transit 350 15 passenger van at $56,177.00, one 2025 Ford F-450 4x4 with dump body and snow plow at $102,487.00, one 2025 Ford F-550 4x4 with dump body and snow plow at $103,895.00, one 2025 Ford F-450 4x4 with utility body at $97,147.00, one 2025 Ford F-250 4x4 with utility body at $75,455.00 for a total of $839,023.00;
RESOLVED, That $274,628.00 be appropriated to the FY2025 Fleet Services Fund Operations and Maintenance budget with the source of revenue being capital contributions from the Stormwater Sewer Fund ($60,689.00), the Sewage Disposal Fund ($2,703.00), the Water Utilities Fund ($46,082.00), the General Fund ($71,971.00), and the Park Maintenance & Capital Improvement Millage Fund ($93,183.00) ; thereby, increasing both the Fleet Services Fund revenue and expenditure budgets;
RESOLVED, That funds for the purchase of these vehicles come 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.2299, 2504,3283, 3285, 6206, 6223, 6240, 6260, 6267, and 6528) 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.