Title
Resolution to Authorize the Purchase of Vehicles from Lunghamer Ford and to Appropriate $40,295.00 in Funding from the General Fund Balance (State of Michigan MiDeal - $538,721.00) (8 Votes Required)
Memorandum
The attached resolution authorizes the purchase of three 2023 Ford F-250 4x4 pickup trucks at $49,390.00 each, one 2023 Ford F-450 4x2 pickup truck w/ dump body at $80,050.00, one 2023 Ford F-450 4x4 pickup truck w/ service body and snow plow at $99,782.00, one 2023 Ford F-450 4x4 pickup truck w/ service body and snow plow at $101,172.00, and one 2023 Ford F-450 4x4 pickup truck w/ dump body, snow plow, and tailgate spreader at $109,547.00 for a total of $538,721.00 from Lunghamer Ford, Owosso, Michigan.
The City has experienced unprecedented vehicle price increases this year due to several factors outside of the City's control. Additionally, many of these vehicles have dump or service bodies that have also seen a significant increase in labor and materials costs. In most cases, the City Unit was able to address the shortfall in funding from their current operating budget. The Parks and Recreation General Fund budget was unable to absorb this cost and an appropriation from fund balance in the amount of $40,295.00 is necessary.
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 ...
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