Title
Resolution to Approve the Purchase of Vehicles from National Auto Fleet Group (Sourcewell Bid - $60,640.00)
Memorandum
The attached resolution authorizes the purchase of two 2022 Chevrolet Bolt electric vehicles at $30,320.00 each for a total of $60,640.00 from National Auto Fleet Group, Watsonville, California.
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 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.
Of the thirty-one light vehicles scheduled for evaluation this year, five have met the scoring requirements for replacement. Of the five vehicles scheduled for replacement, two of these vehicles are included in this resolution.
The Police Community Standards Unit of the Safety Services Area uses vehicles #0517 and #0518, both 2015 Ford Focus sedans, in their parking and code enforcement efforts throughout the City.
The Chevrolet Bolt is an all-electric plug-in vehicle with approximately 240 miles of range on a single charge. Based on expected usage, the vehicle will be able to handle the normal driving activities of a work shift and can fully recharge overnight using a Level 2 (240v) charger. Community Standards is successfully utilizing several Chevrolet Bolts for their operations currently.
The Fleet and Facilities Unit reviewed the bids of the Cooperative Purchasing Programs of the State of Michigan, Sourcewell, Oakland County, and Macomb County. National Auto Fleet Group was the lowest responsive bidder to the Sourcewell cooperative purchasing program (Sourcewell contract #120716-NAF) for the Chevrolet Bolts.
National Auto Fleet Group complies with the requirements of the City’s Conflict of Interest and Non-Discrimination ordinances.
Budget/Fiscal Impact: Adequate funding for the purchase of these vehicles is available in the approved FY22 Fleet Services Fund Operations and Maintenance budget and the FY22 approved General Fund Operations and Maintenance budget. Replacement costs paid to the Fleet Fund for these vehicles in the amount of $39,786.00 covered the anticipated replacement with a traditional internal combustion engine. Supplemental funding to upgrade these vehicles to all electric in the amount of $20,854.00 was included in the approved FY22 General Fund Police Services Operations and Maintenance budget.
The owning department of each electric vehicle will be responsible for the increased Fleet replacement cost each year. This Fleet replacement cost covers the future cost of replacing the vehicles purchased under this resolution. Fuel savings and reduced maintenance expenses will recoup some of this additional expense based on the usage of the vehicle.
Each vehicle will also require a Level 2 charger. The purchase and installation of the charging infrastructure is not part of this resolution and has been budgeted separately in the FY22 Fleet Services Operations and Maintenance budget.
Green Fleet Policy: On October 6, 2021, the Green Fleet Committee approved the need for the replacement of these vehicles, that the proposed replacements are 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: Matthew J. Kulhanek, Fleet & Facilities Manager
Reviewed by: John Fournier, Assistant City Administrator
Approved by: Milton Dohoney Jr., Interim City Administrator
Body
Whereas, The Fleet and Facilities Unit needs to purchase replacement vehicles for the City’s fleet;
Whereas, National Auto Fleet Group, Watsonville CA, is the lowest responsive bidder to the Sourcewell cooperative purchasing program;
Whereas, National Auto Fleet Group complies with the requirements of the City’s Conflict of Interest and Non-Discrimination Ordinances; and
Whereas, Adequate funds for the purchase of these vehicles are available in the FY22 Fleet Services Fund and FY22 General Fund Operations and Maintenance budgets;
RESOLVED, That City Council approve the issuance of a purchase order to National Auto Fleet Group for the purchase of two 2022 Chevrolet Bolt electric vehicles at $30,320.00 each for a total of $60,640.00;
RESOLVED, That funds for the purchase of these vehicles in the amount of $39,786.00 come from the FY22 Fleet Services Fund budget and $20,854.00 from the FY22 Police Services General Fund Operations and Maintenance budget with funds to be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (nos. 0517 and 0518) be sold at the next City vehicle auction held after the vehicles are removed from service; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.