Title
Resolution to Approve the Purchase of Two Fifteen Passenger Vans from Red Holman GMC - Oakland County bid ($50,320.00)
Memorandum
The attached resolution authorizes the purchase of two 2014 GMC Savana 15 Passenger vans at $25,160.00 each for a total of $50,320.00 from Red Holman GMC, Westland, Michigan.
The City of Ann Arbor Canoe Liveries have experienced growth in the number of boat rentals and is now the State of Michigan's largest canoe livery operation with over 500 boats and 56,000 people renting boats in 2013. From 2012 to 2013 there was an increase of 22% in boat rental revenue. The current fleet of six 15-passenger vans is unable to keep up with the shuttle transportation demands of the City's river trips. The river trip boat rental customers have either had to wait in long queues to have a shuttle ride back to Argo or they have been turned away due to all shuttles being full for the day. To accommodate this growth, the purchase of two additional 15-passenger vans is needed which will increase the livery fleet total to eight 15-passenger vans. The two vans will be purchased out of the FY 2014 approved Parks & Recreation Services General Fund budget
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. Red Holman GMC was the lowest responsive bidder to State of Michigan and Oakland County.
Adequate funds for this purchase are available in the FY14 approved Parks & Recreation Services General Fund budget as a result of operational expenditure savings year to date
Red Holman GMC received Human Rights approval on January 17, 2014.
Staff
Prepared by: Thomas A Gibbons, Financial Analyst Fleet & Facility Unit
Reviewed by; Matthew J. Kulhanek, Fleet & Facilities Manager
Craig Hupy, P.E., Public Services Area Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, The Fleet and Facilities Unit needs to purchase vehicles for the City's fleet;
Whereas, The Canoe Livery experienced a 22% growth in rental from fiscal year 2012 to 2013 which requires additional vans to shuttle customers;
Whereas, Red Holman GMC, Westland MI, is the lowest responsive bidder to the State of Michigan's and Oakland County's Cooperative Bid program; and
Whereas, Red Holman GMC received Human Rights approval on January 17, 2014;
RESOLVED, That City Council approve the issuance of a purchase order to Red Holman GMC for the purchase of two 2014 GMC Savana 15 passenger vans at $25,160.00 each for a total amount of $50,320.00;
RESOLVED, That funds for this purchase come from the FY14 Canoe Livery budget with funds to be available without regard to fiscal year; and
RESOLVED, That the City Administrator is authorized to take the necessary actions to implement this resolution.