TITLE
Recommendation to adopt resolution authorizing the City Manager, or designee, to execute a contract, and any necessary documents, including any necessary subsequent amendments, with 72 Hour, LLC, dba National Auto Fleet Group, of Watsonville, CA, for the purchase of four Ford E-450 Ambulances, with related equipment and accessories, on the same terms and conditions afforded to Sourcewell, in a total amount not to exceed $1,321,756, inclusive of taxes and fees. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with 72 Hour, LLC, dba National Auto Fleet Group for the purchase of four Ford E-450 Ambulances. The proposed units will be used by Long Beach Fire Department (LBFD), Emergency Medical Services (EMS) Division, as 9-1-1 emergency response rescue units. EMS provides critical emergency response to fire, medical, beach, and waterway crises for all residents and businesses in the City of Long Beach (City).
The proposed units are replacing four ambulances that are six years old. The current units are nearing the end of their useful life and are becoming increasingly more expensive to maintain. The City’s ambulances see heavy use and accumulate high mileage quickly. Purchasing the replacement units now will minimize repair downtime and ensure the lowest net operational costs for the City. Timely replacement of emergency equipment is critical for successful operations, which are essential to the health of the community at large and will assist in providing public safety services to all residents and businesses in Long Beach. These units are approved in the Fiscal Year 2023 (FY 23) Fleet replacement plan. Sufficient funds have been collected to replace these units.
The Fleet Services Bureau of the Department of Financial Management researched procurement options for ambulances and discovered other agencies had completed an open, fair, transparent, and competitive procurement process. The City reviewed the cooperative agreement options and determined that the contract between Sourcewell and National Auto Fleet Group provided the best value to the City. All Sourcewell contracts are competitively bid and offer the best available pricing. Sourcewell is a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to its members.
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. This alternative procurement method can save time and reduce costs through economies of scale by purchasing under existing contracts from other government agencies on a voluntary and selective basis, when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Taylor Anderson on May 24, 2023, Purchasing Agent Michelle Wilson on May 23, 2023, and by Revenue Management Officer Geraldine Alejo on May 30, 2023.
SUSTAINABILITY
These new ambulances are compliant with the State of California and local district air quality regulations
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on June 20, 2023, to ensure that the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $1,321,756, inclusive of taxes and fees. Sufficient funding for the purchase is budgeted in the Fleet Services Fund Group in the Financial Management Department. Annual ongoing maintenance, fuel, and replacement costs for each unit are estimated at $113,020 and will be billed to the General Fund Group in the Fire Department through the Fleet Services Bureau Memorandum of Understanding (MOU) process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN RIPER
DIRECTOR
FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER