Title
Resolution to Approve the Purchase of Four Compact Cars, One Mid-Size Car, One Police Detective Car, One ¾ ton Pickup Truck with the box deleted and Six ¾ ton Pickup Trucks from Signature Ford (Macomb County $276,434.00)
Memorandum
The attached resolution authorizes the purchase of four 2015 Ford Focus compact cars at $16,660.00 each, one 2016 Ford Fusion mid-size car at $19,106.00, one 2015 Ford Taurus at $21,543.00, one 2016 Ford F-250 ¾ ton Pickup Truck with the box deleted at $23,765.00 and six 2016 Ford F-250 ¾ ton Pickup Trucks at $24,230.00 each for a total of $276,434.00 from Signature Ford, Owosso, Michigan.
The City's labor contracts with the Ann Arbor Police Officers Association and the Ann Arbor Police Supervisors require that vehicles used by their members will not be driven more than 80,000 miles or 6 years, whichever comes first.
The police detective vehicle listed on this resolution will replace a vehicle that will have reached the 80,000 miles limit in the next year.
The Police Unit of the Safety Services Area requires that the fleet of detective vehicles consist of a variety of makes, models, and body styles. The fleet includes cars, pickups, and SUVs. To maintain the variety of vehicles needed in this operation, the Fleet and Facilities Unit develops a list of vehicles that were awarded a contract under one or more of the cooperative purchasing programs from the State of Michigan, Macomb County, and Oakland County. The vehicle list is given to the Police Department and their staff selects vehicles from it that fit their needs. Although greenhouse gas emissions and fuel economy are major factors in the decision, maintaining a diverse fleet of detective vehicles is the overriding factor in choosing vehicle for this operation.
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 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, 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. Some older vehicles, which were not originally serviced by Fleet Services, were not equipped with hour-meters and only mileage information is available on these units.
Of the seventy-eight light vehicles scheduled for evaluation this year, fifty-one have met the requirements for replacement. Twelve of these vehicles are include on this resolution plus one vehicle assigned to the Police Department. Police vehicle replacement is mandated by contract and therefore not run through the evaluation process.
The Community Standards Unit of the Safety Services Area uses car # 0507, a 2007 Ford Focus, for transportation of its staff. The car has been in service for 8 years and has 4,405 hours of operation. It averages 0.27 repair work orders per month and the cost of repairs has exceeded 86% of its purchase price. The Fleet Service Supervisor rated this vehicle a 3.
The Community Standards Unit of the Safety Services Area uses car # 0508, a 2007 Ford Focus, for transportation of its staff. The car has been in service for 7 years and has 5,477 hours of operation. It averages 0.30 repair work orders per month and the cost of repairs has exceeded 115% of its purchase price. The Fleet Service Supervisor rated this vehicle a 3.
The Community Standards Unit of the Safety Services Area uses car # 0509, a 2007 Ford Focus, for transportation of its staff. The car has been in service for 7 years and has 7,072 hours of operation. It averages 0.41 repair work orders per month and the cost of repairs has exceeded 144% of its purchase price. The Fleet Service Supervisor rated this vehicle a 3.
The Community Standards Unit of the Safety Services Area uses car # 0510, a 2008 Ford Focus, for transportation of its staff. The car has been in service for 6 years and has 5,756 hours of operation. It averages 0.34 repair work orders per month and the cost of repairs has exceeded 101% of its purchase price. The Fleet Service Supervisor rated this vehicle a 3.
The Fire Department uses car # 1012, a 2004 Chevrolet Malibu, for transportation for its Fire Prevention staff. The car has been in service for 11 years and has 1,553 hours of operation. It averages 0.26 repair work orders per month and the cost of repairs has exceeded 96% of its purchase price. The Fleet Service Supervisor rated this vehicle a 4.
The Field Operations Unit of the Public Services Area uses van # 3225, a 2007 Ford E-150 cargo van, as a service vehicle for its Customer Service staff. The van has been in service for 7 years and has 11,363 hours of operation. It averages 0.39 repair work orders per month and the cost of repairs has exceeded 211% of its purchase price. The Fleet Service Supervisor rated this vehicle a 4. It is requested that this vehicle be upgraded to a ¾ ton pickup truck to increase its capabilities to the service unit.
The Field Operations Unit of the Public Services Area uses truck # 3263, a 2001 Ford F-250, to service the water utility system. The truck has been in service for 13 years and has 1,192 hours of operation. It averages 0.22 repair work orders per month and the cost of repairs has exceeded 98% of its purchase price. The Fleet Service Supervisor rated this vehicle a 4.
The Field Operations Unit of the Public Services Area uses truck # 3265, a 2003 Ford F-250, to service the water utility system. The truck has been in service for 11 years and has 3,181 hours of operation. It averages 0.18 repair work orders per month and the cost of repairs has exceeded 45% of its purchase price. The Fleet Service Supervisor rated this vehicle a 4.
The Field Operations Unit of the Public Services Area uses truck # 4272, a 2006 GMC Sierra 2500, in its street maintenance operation. The truck has been in service for 8 years and has 4,359 hours of operation. It averages 0.29 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.
The Natural Area Preservation Unit of the Community Services Area uses truck # 6250, a 2003 Ford F-250, for transportation of its staff. The truck has been in service for 11 years and has 1,969 hours of operation. It averages 0.13 repair work orders per month and the cost of repairs has exceeded 89% of its purchase price. The Fleet Service Supervisor rated this vehicle a 4.
The Field Operations Unit of the Public Services Area uses truck # 6281, a 2004 Ford F-250, in its park maintenance operation. The truck has been in service for 10 years and has 4,806 hours of operation. It averages 0.30 repair work orders per month and the cost of repairs has exceeded 139% of its purchase price. The Fleet Service Supervisor rated this vehicle a 3.
The Field Operations Unit of the Public Services Area uses truck # 6283, a 2006 GMC Sierra 2500 with service body, in its park maintenance operation. The truck has been in service for 8 years and has 4,424 hours of operation. It averages 0.24 repair work orders per month and the cost of repairs has exceeded 71% of its purchase price. The Fleet Service Supervisor rated this vehicle a 4. After this vehicle is received it will have a service body installed, at an estimated cost of $10,000.00, for a total vehicle cost of $33,765.00
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. Signature Ford was the lowest responsive bidder to Macomb County.
Adequate funds for these purchases have been budgeted in the Water Fund O&M budget and Fleet Services budget for fiscal year 2015
Signature Ford complies with the requirements of the City's non-discrimination ordinances.
Staff
Prepared by: Thomas A Gibbons, Financial Analyst Fleet & Facility Unit
Reviewed by; Matthew J. Kulhanek, Fleet & Facilities Manager and 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 replacement vehicles for the City's fleet;
Whereas, Signature Ford, Owosso MI, is the lowest responsive bidder to Macomb Counties Cooperative Bid program; and
Whereas, Signature Ford complies with the requirements of the City's Non-Discrimination Ordinances;
RESOLVED, That City Council approve the issuance of a purchase order to Signature Ford for the purchase of four 2015 Ford Focus at $16,660.00 each, one 2016 Ford Fusion at $19,106.00, one 2015 Ford Taurus at $21,543.00, one 2016 Ford F-250 Pickup truck with its box deleted at $23,765.00 and six 2016 Ford F-250 Pickup trucks at $24,230.00 each for a total amount of $276,434.00;
RESOLVED, That funds for the purchase of the four Ford Focus, one Ford Fusion, one Ford Taurus, one Ford F-250 with box deleted, and three Ford F-250s come from the FY15 Fleet Services budget with funds to be available without regard to fiscal year;
RESOLVED, That funds for the purchase of three Ford F-250s come from the FY15 Water Fund O&M budget with funds to be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (nos. 0148, 0507, 0508, 0509, 0510, 1012, 3225, 3263, 3265, 4272, 6250, 6281 and 6283) be sold at the next City vehicle auction; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.