TITLE
Recommendation to adopt resolution authorizing City Manager to execute a contract with Leader Emergency Vehicles, of South El Monte, CA (not an MBE, WBE, SBE or Local), for the purchase of seven (7) ambulances, on the same terms and conditions afforded to the City of Newport Beach, in the amount of $1,826,162 plus a 5 percent contingency of $91,308, for a total amount not to exceed $1,917,470. (Citywide)
DISCUSSION
City Council approval is requested to authorize the City Manager to enter into a contract with Leader Emergency Vehicles (Leader) for the purchase of seven ambulances.
The Long Beach Fire Department (LBFD) provides emergency medical services throughout the City for a wide range of life-threatening and non life-threatening injuries and illnesses. Services are provided by Firefighter/Paramedics and Ambulance Operators, who provide assessment, treatment and transport of patients utilizing ambulances. Currently, the LBFD has an aging fleet of 18 ambulances. Six of the ambulances are over nine years old with over 100,000 miles. An additional seven ambulances are more than six years old, and four of these have over 100,000 miles. Due to the age and mileage of these vehicles, maintenance costs and repair time are increasing and vehicle reliability is compromised. Based on the above information, it is necessary at this time to replace seven of these ambulances. The cost for each ambulance is $260,880, including tax, plus a 5 percent contingency that is recommended to cover potential unexpected costs for specialized equipment and modifications that may occur during the build process.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment and labor with other governmental agencies by purchasing under their contracts on a voluntary and selective basis when authorized by a Resolution of the City Council.
The Purchasing Division investigated procurement options and learned that the City of Newport Beach had recently completed a Request for Proposals process for the purchase of ambulances, and has a contract with Leader that meets the City's needs. This cooperative purchase agreement will allow the City to obtain competitive pricing due to increased buying power.
This matter was reviewed by Deputy City Attorney Amy Webber on December 16, 2013 and Budget Management Officer Victoria Bell on December 18, 2013.
TIMING CONSIDERATIONS
City Council action is requested on January 7, 2014 to expedite the purchase of the ambulances and ensure that the new ambulances can be placed into service by October 2014.
FISCAL IMPACT
The FY 14 budget for the Fleet Fund (IS 386) in the Financial Management Department (FM) contains sufficient funding set aside for the replacement of fire engines that will be shifted to cover the purchase of the seven ambulances at a cost not to exceed $1,917,470. The ambulances proposed for replacement were originally acquired with lease-purchase financing that spread the cost over several years, at a time when funding was not available for a full cash purchase. Since these ambulances were leased, funds were not set aside for future replacement. Therefore, funding set aside for replacement of fire engines is proposed to be used for the purchase of the new ambulances. The funding for fire engine replacement will be addressed separately.
The operating costs associated with the purchase are budgeted in the General Fund (GP) in the Fire Department (FD) for FY 14. Increased General Fund costs to set aside funding for future replacement will be addressed during the FY 15 budget preparation process.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH HALCORE GROUP, INC. DBA LEADER EMERGENCY VEHICLES FOR THE PURCHASE OF SEVEN AMBULANCES THROUGH THEIR CONTRACT WITH THE CITY OF NEWPORT BEACH IN AN AMOUNT NOT TO EXCEED $1,917,470
Respectfully Submitted,
MICHAEL A. DuREE
FIRE CHIEF
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER