TITLE
Recommendation to adopt Specifications No. ITB FS15-040 and authorize City Manager to execute a contract with Kovach Mobile Equipment Corporation, dba KME Fire Apparatus, of Nesquehoning, PA, for the purchase of six fire pumper trucks, in a total amount not to exceed $3,400,463 inclusive of taxes and fees; and
Increase appropriations in the Fleet Services Fund (IS 386) in the Financial Management Department (FM) by $1,134,803. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Kovatch Mobile Equipment Corporation for the purchase of six fire pumper trucks. The new pumpers will replace four leased units approved for replacement in Fiscal Year 2015 (FY 15) and two additional pumpers that have exceeded their useful life. Capital funding in the amount of $2,265,660 is currently budgeted in the General Fund to replace the four previously leased units. The non-recurring funds were provided through the FY 15 budget process using Ground Emergency Medical Transportation (GEMT) State revenues. The additional two pumpers are to replace budgeted units based on a request by the Fire Department (FD) and will be funded by replacement capital funds previously collected in the amount of $1,134,803. The units being replaced are 20 years old and have exceeded their 16-year recommended life cycle.
The bid was advertised in the Press-Telegram on December 23, 2014, and 959 potential bidders specializing in automotive or transportation services were notified of the bid opportunity. Of those bidders, 18 downloaded the bid via our electronic bid system. The bid document was made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division's website at www.longbeach.gov/purchasing. A bid announcement was also included in the Purchasing Division's weekly update of Open Bid Opportunities, which is sent to 30 local, minority, and women-owned business groups. Four bids were received on January 22, 2015. Of those four bidders, none were Minority-owned Business Enterprises (MBEs), none were Women-owned Business Enterprises (WBEs), one was a certified Small Business Enterprise (SBE), and none were Long Beach businesses (Local). Kovatch Mobile Equipment Corporation of Nesquehoning, PA (not an MBE, WBE, DBE, SBE or Local), was the lowest responsible bidder.
Local Business Outreach
In an effort to align with our outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the Bids Online database to download the bid specifications. Through outreach, 147 Long Beach vendors were notified to submit bids, of which none downloaded or submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Kendra L. Carney on March 17, 2015 and by Budget Management Officer Victoria Bell on March 20, 2015.
SUSTAINABILITY
The new fire trucks are compliant with the State of California and local district air quality regulations.
TIMING CONSIDERATIONS
City Council action to adopt Specification No. ITB FS15-040 and award a contract concurrently is requested on April 7, 2015 to ensure that the contract is in place with sufficient lead time to allow for delivery time of 365-420 days.
FISCAL IMPACT
The total purchase amount will not to exceed $3,400,463, inclusive of taxes and fees, of which $2,265,660 will be funded through a one-time transfer from the General Fund (GF) in the Citywide Activities Department (XC). The remaining amount has been collected through regular capital replacement charges to the Fire Department. An appropriation increase of $1,134,803 is required as these replacements were not originally planned for FY 15 and are not included in the Fleet budget. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER