Title
Resolution to Approve the Purchase of One Mid Size Car and One Mini Cargo Van from Bill Snethkamp's Lansing Dodge (State of Michigan $37,607.70)
Memorandum
The attached resolution authorizes the purchase of one 2013 Dodge Avenger mid-size car at $16,218.00 and one 2013 Dodge Caravan CV mini cargo van at $21,389.70 for a total of $37,607.70 from Bill Snethkamp's Lansing Dodge, Lansing, 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 this is done 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, a two step evaluation process is used. 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 a point value that is 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, the 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, a more accurate assessment of the wear and tear the engine and drive train receive in the "stop and go" city environment is determined. Staff estimates that city driving accounts for 90 to 95 percent of the hours put on City vehicles. Some older vehicles, not originally serviced by Fleet Services, were not equipped with hour-meters and only mileage information is available on these units.
Of the eighty-two light vehicles scheduled for evaluation this year, forty-one have met the requirements for replacement. Two of these vehicles are include on this resolution.
The Fire Department uses Car # 1010, a 2004 Chevrolet Impala, for Fire Inspector transportation. The car has been in service for over 9 years and has 3,349 hours of uses. It averages 0.28 repair work order per month and the cost of repairs has exceeded 110% of its purchase price. The Fleet Service Supervisor rated this vehicle a 3.
The Field Operations Unit of the Public Service Area uses van # 4244, a 2002 GMC Safari minivan, for its Technical Services group to transport staff and equipment. The van has been in service for 10 years and has 5,963 hours of operation. It averages 0.35 repair work orders per month and the cost of repairs has exceeded 120% of its purchase price. The Fleet Service Supervisor rated this vehicle a 4.
This purchase follows the guidelines of the City's Green Fleet Policy to reduce the amount of fuel used and to pay a premium for "greener" vehicles if necessary.
The Fleet and Facilities Unit reviewed the bids of the Cooperative Purchasing Programs of the State of Michigan, Oakland County, and Macomb County. Bill Snethkamp's Lansing Dodge was the lowest responsive bidder to State of Michigan.
Adequate funds for these purchases have been included in the Motor Equipment budget for fiscal year 2013
Bill Snethkamp's Lansing Dodge received Human Rights approval on February 13, 2013.
Staff
Prepared by: Thomas A Gibbons, Financial Analyst Fleet & Facility Unit
Reviewed by; Matthew J. Kulhanek, Fleet & Facilities Manager
Craig Hupy, Public Services Area Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, The Fleet and Facilities Unit needs to purchase replacement vehicles for the City's fleet;
Whereas, Bill Snethkamp's Lansing Dodge, Lansing, MI, is the lowest responsive bidder to the State of Michigan's Cooperative Bid program; and
Whereas, Bill Snethkamp's Lansing Dodge received Human Rights approval on February 13, 2013;
RESOLVED, That City Council approve the issuance of a purchase order to Bill Snethkamp's Lansing Dodge for the purchase of one 2013 Dodge Avenger mid-size car at $16,218.00 and one 2013 Dodge CV mini cargo van at $21,389.70 for a total amount of $37,607.70;
RESOLVED, That funds for the purchase come from the 2013 Motor Equipment budget with funds to be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (nos. 1010 and 4244) be sold at the next City vehicle auction; and
RESOLVED, That the City Administrator is authorized to take the necessary actions to implement this resolution.