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HomeMy WebLinkAboutResolutions - 1970.11.19 - 16573November 19, 1970 RESOLUTION NO, 5538 RE: VEHICLE PURCHASING POLICY -Mr. 1-knighten BY: FINANCE COMMITTEE TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS MR, CHAIRMAN, LADIES AND GENTLEMEN: WHEREAS, Miscellaneous Resolution No. 5508 was re- ferred to the Finance Committee; and WHEREAS, your Finance Committee has reviewed the Vehicle Purchasing Policy for Oakland County, a copy of which is attached hereto; and WHEREAS, your Committee recommends that the present Policy be continued. NOW THEREFORE BE IT RESOLVED that the Vehicle Pur- chasing Policy for Oakland County, a copy of which is attached hereto, be and the same is hereby continued. MR. CHAIRMAN, on behalf of the Finance Committee, move the adoption of the foregoing resolution. FINANCE COMMITTEE Fred D. Houghten,chairman Mary Mead Bawden Albert F. -Szabo Total # of Employees 36,257 83% % Living in Oakland County 5,572 20% --yEHICLE PURCHASING POLICY ' FOR OAKLAND COUNTY , The County policy has been to purchase cars and trucks, /2 for the County fleet, in such a manner as to realize the lowest fleet operational costs, considering both factors of acquisition and maintenance. Basic to this consideration, has been the practice of confining our purchases to a single brand of vehicle and to the benefits realized from our relationship with that manufacturer, as described later in this report. This particular brand has proven to be operationally economical, and, over the years, provided exceptional performance capabilities. As a result of the Above, all vehicles purchased by the County are produced by the Pontiac Motor Division or the GMC Truck & Coach Division. In addition, since the General Motors Corporation is the major automobile manufacturing taxpayer in the County, all purchases are made through their .dealers. The latest information on assessed valuations of plant property, owned by vehicle manufacturers in the County, are shown below: Real Property Personal Property TOTALS General Motors Corporation $105,341,822 $212,869,610 $318,211,432 • (85.3%) Ford Motor Company $23,163,114 $31,6 20 ,247 $54,783,361_ (14.7%) Chrysler Corporation None None -0- As you can see, over 85% of the tax dollar, paid by automotive firms, is received from General Motors. In addition, General Motors employs a greater number of County residents, who also pay direct taxes to support County government. These resident employees also spend a major portion of their income locally, which in turn adds more tax dollars to the support of County government. The breakdown of County residents, who are employed by the above named manufacturers, within the County, are as follows: General Ford Motor Chrysler Motors Corporation - Company Corporation PURCHASE PROCEDURE The purchase of all County vehicles, follows a normal bid procedure. Invitations to bid and specifications are sent to a minimum of three (3) authorized dealers and the subsequent purchase order is placed with the lowest responsible bidder. BENEFITS TO THE COUNTY DERIVED FROM THE CURRENT PRACTICE (A) -Product Testing Due to the nature of the travel of County patrol cars, Pontiac Motor Division provides test parts such as, engin-s, radiator cores, brake-, transmission, shock absorbers, fans, batteries, etc., for use in patrol vehicles. These items are removed and replaced by the factory, at no charge to the County. Undoubtedly, there are reciprocal advantages to this program. On the one hand, it allows Pontiac Motor to test components under actual driving conditions, and on the other hand allows the County to use component parts, at no cost. When the testing is completed, new components are installed by Pontiac Motor, at no charge to the County. As a. result of the testing program, replacements of many parts are not subject to normal warranty conditions and it is not necessary to return the vehicle to the selling dealer for repairs. (B) Defective Replacement Parts If vehicle parts prove to be defective, the factory ' will replace all such parts, immediately, at no charge to the County. Representatives of Pontiac Motor Division Product Reliability are in constant - communication with Central Garage personnel, to assist the. County with any problems relating to product failure. If the County were required to return vehicles to the selling dealer, for warranty repairs, more time 'would be spent on negotiating warranty settlements and vehicles could be tied up for long periods of -time, subject to the dealer's repair schedule. (C) Parts Availability. - If non-warranty parts are not available at the local dealership, parts can be obtained immediately from the factory. (D) Travel Time Under present circumstances, if it is necessary to return vehicles to the factory for repairs, it is only a matter of minutes for Garage personnel to . transport the vehicles to the factory and return. (E) Mechanic Training • • - Whenever component parts of vehicles are updated or changed, General Motors provides formal repair trai.,ling for our mechanics, a...; the GM 'Zechnical .Center, at no charge to the County. (F) Driver Training General Motors provided several thousands of dollars worth of driver training for the Sheriff's deputies, last year, at the GMC Proving Grounds, at no cost to the County. Those drivers exposed to that training have had an accident rate of approximately one-third (1/3) of those that did not take the training. PROBABLE RESULTS OF POLICY CHANGE (A) Will require the purchase of duplicate sets of "special tools" needed for the repair and maintenance of transmissions, differentials, engines, etc. Each manufacturer's product requires its own special tools. (B) Will require the County to pay the cost of specialized training for mechanics, for the maintenance and repair of new or changing equipment for each different manufacturer's vehicle. (C) When mechanics must move from one brand of vehicle to another, there is a loss of efficiency, due to a changing of tools, different maintenance specifications, additional set-up time, etc. (D) Will result in increased lost time by Garage personnel in transporting vehicles to various dealerships, or to factories located long distances from the Service Center. (E) Will result in the necessity to negotiate warranty repairs with dealers and the tie-up of vehicles for long periods of time while repairs are being made. In turn, this may require the purchase of additional vehicles to be used as replacements, while dealers hold cars for repairs. (F) Will result in the loss of thousands of dollars worth of parts, now supplied by General Motors for test purposes. Will require additional space in the County Garage, for the storage of parts needed for avarety of manufacturers vehicles. In summary, it would appear that any change in County policy, at this time, can only result in higher fleet operational' costs. - (G Moved by Houghten supported by O'Donoghue the resolution be adopted. Discussion followed. AYES: Houghten, Kasper, Mainland, O'Donoghue, Olson, Patnales, Powell, Szabo, Wilcox, Bawden, Benson. (11) NAYS: Coy, Edwards, Gabler, Grba, Horton, Mastin, Perinoff, Richards, Walker, Aaron, Brennan. (11) A sufficient majority not having voted therefor, the motion lost. Moved by Kasper supported by Brennan the resolution be referred back to the Committee. Discussion followed. Moved by Walker supported by Olson the motion be amended by inserting "Committee on Committees" instead of "Committee". Discussion followed. Vote on amendment: A sufficient majority having voted therefor, the motion carried. Vote on main motion, as amended: AYES: Edwards, Gabler, Grba, Horton, Kasper, Mainland, Mastin, O'Donoghue, Olson, Patnales, Perinoff, Powell, Richards, Walker, Aaron, Benson, Brennan, Coy. (18) NAYS: Houghten, Szabo, Wilcox, Bawden. (4) A sufficient majority having voted therefor, the motion carried.