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Home My WebLink AboutAgenda Report - November 19, 1997 (94)to OF •DI COUNCIL COMMUNICATION OL AGENDA TITLE: Replacement of Ford Tauruses for Various City Departments MEETING DATE: November 19, 1997 PREPARED BY: Public Works Director RECOMMENDED ACTION: That the City Council adopt the attached resolution allowing the City Manager and the Fleet Management Committees to proceed with a fleet -wide replacement of Ford Taurus sedans. BACKGROUND INFORMATION: The Equipment Maintenance Division is responsible for maintaining and repairing almost all of the City's vehicles and equipment. In early 1996, it became evident that the eleven Ford Tauruses the City owned, in four different departments, were incurring higher than normal repair and maintenance costs. Regardless of age or mileage, most of the Tauruses had experienced transmission repairs or problems. Several had transmissions replaced two or three times. A Capital Improvement Budget Request was prepared in March 1996 requesting that the Tauruses be replaced in a two-year process (copy attached as Exhibit A). At that time, it was estimated that $103,250 would be needed the first year, and $110,750 the second year, to replace ten sedans (the eleventh Taurus was a car donated to the Police Partners program, which would be the responsibility of the Police Department to replace). The City Manager requested that the Taurus replacement program not be included in the budget until the Fleet Policies and Procedures, which were then under development, were completed. Since affected departments knew that a request had been submitted for these vehicles to be replaced on a systematic basis, most departments did not submit duplicate budget requests for the 1997/1999 budget years. Some departments did, however, and those requests have already been approved by the City Council with the adoption of the 1997/1999 Financial Plan and Budget. These include two by the Police Department (vehicles #05-001 and #05-039 at $24,000 each) and one by the Electric Department (vehicle #09-008 at $15,000). Now that a year and a half has passed since the original request was made, several things have occurred: One Police Department Taurus, the donated Partners car #05-101, has already been removed from service. The accumulated repair and maintenance costs for the ten Tauruses still in service have continued to grow. Attached as Exhibit B is an updated summary that includes the number of transmission rebuilds each has had (please note that repair costs do not include dollars or cost of lost time when cars were out of service for warranty repairs). APPROVED: H. Dixon Flynn -- City anager Tauruses.doc 11112197 Replacement of Ford Tauruses for Various City Departments November 19, 1997 Page 2 • Several cars that would not have met the replacement criteria adopted in the Fleet Policies and Procedures now do. • The amount of moneys the City might receive for selling these sedans has been reduced due to higher mileage and increased age. The Fleet Management Committees have discussed, and concur, that the Ford Tauruses need to be replaced fleet wide. The recommendation to the City Council is that the Fleet Management Committees and the City Manager be authorized to consider and recommend replacement of Ford Tauruses on an individual basis, in exception to the replacement criteria adopted in the Fleet Policies and Procedures, if necessary, and authorize additional replacement funds as outlined below. FUNDING: Funding for the Ford Taurus replacement sedans should be authorized from multiple Enterprise Fleet equipment replacement funds (since the Water/Wastewater and Electric utilities have three sedans) and the General Fleet Fund, utilizing moneys carried over from 1996/1997, 199711998, and 1998/1999. All Ford Tauruses should be replaced by fiscal year 1998/1999. Total Funding Needed Water/Wastewater $ 41,300 $ -0- Electric Utility -0- 22,150 General Fleet Fund 61,950 88,600 Less amount currently approved in budget (24,000) (39,000) Additional funds needed $ 79,250 71,750 Funding Availableyti A `04-0�� F' ance Dire for Ja L. Ronsko Publi Works Director Prepared by Dennis J. Callahan, Building and Equipment Maintenance Superintendent JLR/DJC/lm Attachments cc: City Attorney Purchasing Officer Finance Director Electric Utility Director Police Chief Parks and Recreation Director Water/Wastewater Superintendent Equipment Maintenance Supervisor General Fleet Management Committee Enterprise Fleet Management Committee Tauruses.doc 11/04/97 EXHIBIT A 1995-97 Financial Plan and Budget - CAPITAL IMPROVEMENT BUDGET REQUEST ACTIVITY: Equipment Maintenance REQUEST TITLE: Fleet -Wide Taurus Replacements Project Description Purchase ten used replacement sedans to eliminate all Ford Taurus sedans from the Fleet. Project Objectives Enact a two-year plan to replace all ten (10) Ford Taurus four -door sedans from the Fleet. Five will be replaced in 1996/97 and five more in 1997/98. Replaced units will be disposed of by trade-in or sale at auction. Existing Situation There are eleven Ford Taurus sedans in the City Fleet. Ten have been purchased and one was donated to the Police Partners Program. All of the Taurus sedans, regardless of year produced, have had transmission repairs or problems. Some vehicles have had transmissions replaced two or three times. Fortunately, much of the work has been covered under warranties. However, as these vehicles age and accumulate miles, they are becoming greater liabilities to the City. A planned replacement program needs to be enacted to anticipate earlier -than -normal replacement. Attached as Exhibit A is a spreadsheet with information on all of the Taurus sedans to date. This capital expenditure was reviewed by the Fleet Policies and Procedures Committee and they agree —with the recommended program for replacement. Project Costs Recommended Funding Sources for 1996197 Equipment Replacement Funds 20% Water 20% Wastewater 60% General Cost Detail 1996/97 1997/98 (5) sedans each $20,000* $ 100,000 $ -0- (5) sedans each $21,500* -0- 107,500 Miscellaneous costs to transfer radios and/or cellular phones 3,250 3,250 TOTAL $ 103,250 $110,750 *NOTE: Resale values are not included so that adequate monies are budgeted for purchase of vehicles. Alternatives 1. Do not replace these vehicles. This is not advised. The age and condition of these Taurus sedans (all are now past the mileage/age warranty coverages) will result in numerous expensive repairs, down time, and inconvenience to stranded staff. 2. Pay employees mileage and require them to use personal vehicles. If considered, liability insurance needs must be evaluated. This is not advised. 3. Replace the cars on an individual basis as they fail through emergency special allocations of funds. This is not good planning and is not advised. The City can realize higher resale value by selling or trading the Taurus sedans before they break down. Project Effect on Operating Budget Repair costs will be eliminated. C r�c�ce� ng 8, Equip ent Maintenance Superintendent CIBTAURMOC 3111196 FORD TAURUS SUMMARY VER. NO. DEPARTMENT IYEAR MAKE MODEL LICENSE IN SERVICE SATE PURCHASE COST ACCUM CURRENT REPAIR/PM MILEAGE COSTS TRANSMISSION REBUILDS 04-025 PW-WATER/WASTEWATER 1989 FORD TAURUS I 107422 i 7/24190 $ 10,842 80201 $ 5,404.69 2 04-030 PW-WATERMASTEWATER 1989 FORD TAURUS 107421 7/24190 $ 10,842 59714 $ 5,356.77 2 04-047 PW -BUILDING MAINT 1990 FORD TAURUS 289684 9126/90 $ 13,466 35950 $ 1,396.79 0 04-068 PW -STREETS 1989 FORD TAURUS 336627 7123190 $ 11,155 55478 $ 8,185.10 3 04-090 PW -ENGINEERING =1991. FORD TAURUS 289741 10/30/91 $ 13,000 36396 $ 1,702.04 1 05-001 POLICE 1986 FORD TAURUS 2GGG018 8/13/87 $ 10,322 76159: $ 6,867.28 1 05-028 POLICE 1989 FORD TAURUS 2VFA3951 9!26/90 $ 10,650 • 61245 $ 2,906.42 1 05-039 POLICE 1990 FORD TAURUS 2YED5841 3122191 $ 12,050 61202 $ 3,276.57 1 05-101 POLICE -Donated Vehicle 1988 FORD TAURUS 294527 12/6/94 $ 6,465 138507 $ 4,304.78 0 07-039 PARKS & RECREATION 1989 FORD TAURUS 269783 9126190. $ 10,809 47666 $ 3,063.10 2 09-008 UTILITIES 1990 FORD TAURUS 289728 4118191 $ 11,824 60336 $ 3,250.08 0 TAURUSAS amtm y a FORD TAURUS SUMMARY VEH. NO. DEPARTMENT YEAR MAKE MODEL LICENSE IN SERVICE DATE PURCHASE CURRENT COST METER ACCUM REPAIR/PM COSTS TRANSMISSION REBUILDS 04-025 PW-WATERMASTEWATER 1989 FORD TAURUS 107422 7/24/90 $ 10,842 92794 $ 6,947.74 2 04-030 PW-WATERWASTEWATER 1989 FORD TAURUS 107421 7/24/90 $ 10,842 69586 $ 8,360.03 2 04-047 PW -BUILDING MAINT 1990 FORD TAURUS 289684 9/26/90 $ 13,466 42399 $ 3,051.38 0 04-068 PW -STREETS 1989 FORD TAURUS 336827 7/23/90 $ 11,155 68947 $12,448.27 3 04-090 PW -ENGINEERING 1991 FORD TAURUS 289741 10/30/91 $ 13,000 44246 $ 2,624.26 1 05-001 POLICE 1986 FORD TAURUS 2GGG018 8/13/87 $ 10,322 84572 $ 8,819.57 1 05-028 POLICE 1989 FORD TAURUS 2VFA395 9/26/90 $ 10,650 80098 $ 5,723.80 1 05-039 POLICE 1990 FORD TAURUS 2YED584 3/22/91 $ 12,050 72893 $ 4,461.49 1 45-101 POLICE -Donated Vehicle 1988 FORD TAURUS 294527 12/6/94 $ 6,465 145429 $ 5,418.73 0 07-039 PARKS & RECREATION 1989 FORD TAURUS 269783 9/26/90 $ 10,809 55999 $ 3,597.40 2 09-008 UTILITIES 1990 FORD TAURUS 289728 4/18/91 $ 11,824 74524 $ 5,655.89 0 TAURUSALS Page 1 10/30/97 RESOLUTION NO. 97-189 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER AND THE FLEET MANAGEMENT COMMITTEES TO PROCEED WITH A FLEET -WIDE REPLACEMENT OF FORD TAURUS SEDANS RESOLVED, that the Lodi City Council does hereby authorize the City Manager and the Fleet Management Committees to proceed with a fleet -wide replacement of Ford Taurus Sedans. Dated: November 19, 1997 I hereby certify that Resolution No. 97-189 was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 19, 1997 by the following vote: AYES: Council Members — Land, Mann, Sieglock, Warner and Pennino (Mayor) NOES: Council Members - None ABSENT: Council Members - None ABSTAIN: Council Members - None ALICE M. �� IMG�s,C/ City Clerk 97-189