Title
Recommendation to Authorize the Purchase of One Pierce Manufacturing, Inc. Fire Rescue Vehicle from Golden State Fire Apparatus in an Amount Not-to-Exceed $1,925,115.57 and Two Medix Vehicles, Inc. Ambulances from Republic EVS in an Amount Not-to-Exceed $843,349.38; and
Adoption of Resolution Amending the Fiscal Year 2025-26 Budget by Transferring $1,825,023 of Public Safety Development Impact Fee Fund (Fund 308) Balance to the Vehicle Replacement Fund (Fund 601) and Increasing Authorized Expenditure in the Vehicle Replacement Fund (Fund 601) Operating Budget by $2,768,465. (Public Works 60141581)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda Fire Department (Fire Department) operates one fire rescue vehicle, which differs from a traditional fire truck by carrying specialized tools and equipment for technical rescues and life-saving operations beyond firefighting. The Fire Department’s current rescue vehicle, placed in service in 2012, has exceeded its 12-year frontline service life expectancy and requires replacement. Staff recommends the purchase of one Pierce Manufacturing, Inc. fire rescue vehicle from Golden State Fire Apparatus in an amount not-to-exceed $1,925,115.57, including contingency. Pricing is based on Sourcewell Contract #113021-OKC-1CAT, a cooperative purchasing agreement established through a competitive public procurement process in compliance with state statutes.
The Fire Department also operates four frontline ambulances, supported by four reserve units. Two frontline ambulances placed in service in 2019 will reach the end of their six-year service life in 2025. To maintain service reliability, staff recommends purchasing two replacement ambulances from Republic EVS in an amount not-to-exceed $843,349.38, including contingency. Pricing is based on Houston-Galveston Area Council (HGAC) Contract 11139, a cooperative purchasing agreement established through a competitive public procurement process in compliance with state statutes.
The purpose of the Public Safety Development Impact Fee Fund (Fund 308) is to cover the costs of public safety services across the island, including new developments. City Council approved a similar amendment to the Fiscal Year 2024-25 Budget to transfer available funding from Fund 308 to the Vehicle Replacement Fund (Fund 601) to replace a Fire Department vehicle through Resolution #2025-4960. Likewise, this proposed budget resolution authorizes this transfer and appropriations to ensure sufficient funding for the acquisitions through amending the Fiscal Year 2025-26 Budget.
BACKGROUND
The Fire Department and Fleet Services are responsible for replacing fire apparatus, vehicles, and equipment according to the City of Alameda's (City) Vehicle and Equipment Replacement Policy. This policy establishes criteria based on age, mileage (or hours), and usage. While also considering safety history and operating performance. Units scheduled for replacement are evaluated to determine whether they should be replaced, deferred or retired out of the fleet.
The Fire Department operates one fire rescue vehicle, which differs from a traditional fire truck by carrying specialized tools and equipment for technical rescues and life-saving operations beyond firefighting. The Fire Department’s existing rescue vehicle (AFD-55) has exceeded its 12-year frontline service life expectancy. Replacement is necessary to ensure continued reliability and safety.
The Fire Department also operates four ambulances with reserve units. Two frontline ambulances placed in service in 2019 are approaching the end of their six-year frontline service life. Replacing these units now will allow them to transition to reserve status while ensuring reliable frontline service.
Prior to Fiscal Year 2020-21, fire apparatus were not depositing an annual depreciation amount into the Vehicle Replacement Fund. Historically, fire apparatus were leased and the City was only paying the lease payment and not the depreciation amount into the replacement fund. Starting in Fiscal Year 2020-21, all apparatus now pay depreciation into the fund. Additionally, the cost of ambulances has risen significantly above projected inflation since the depreciation schedules were established for the existing units. These factors have created shortfalls in the Vehicle Replacement Fund.
Under City Administrative Instruction Number 5 (Purchasing Policy), vehicles may be procured via competitive bidding or through cooperative purchasing agreements. Purchases in excess of $75,000 require City Council approval.
DISCUSSION
The Fire Department requires a dependable fleet to maintain operational readiness. Staff recommends replacing the fire rescue vehicle and two ambulances at this time. To address the funding shortfall in the Vehicle Replacement Fund, staff proposes using the available fund balance in the Public Safety Development Impact Fee Fund (Fund 308).
Fire Rescue Vehicle
Pierce Manufacturing, Inc. (Pierce) has been a leading manufacturer of fire apparatus since 1913 and recognized for its reliability and quality. The Fire Department has purchased all its fire apparatus from Pierce since 1991. Pierce holds a Sourcewell Contract #113021-OKC-1CAT, which was awarded through a competitive public procurement process compliant with state and local statutes. As a Sourcewell member, the City is eligible to utilize this pricing.
Golden State Fire Apparatus is the northern California dealer for Pierce. They offer a discount for full payment at contract signing, credited to the final purchase price. With the discount and associated sales tax savings, the City will realize $290,952 in total savings by paying in full up front. As noted in the proposed agreement with Golden State Fire Apparatus (Exhibit 1), they issue a performance bond as part of the purchase to protect the upfront payment. The total not-to-exceed amount for the fire rescue vehicle with upfront payment is $1,925,115.57, which includes an estimated 7% contingency to address potential change orders, unforeseen items, or necessary work that may arise during the contract.
Ambulances
Medix Specialty Vehicles, Inc. is a reputable ambulance manufacturer, and Republic EVS is its authorized dealer. Republic EVS holds HGAC Contract 11139, awarded through a competitive procurement process compliant with state and local statutes. As a participating HGAC member, the City can access this pricing. Staff recommends purchasing two ambulances at a total not-to-exceed amount of $843,349.38, which includes a 5% contingency for potential change orders or unforeseen fabrication needs.
Funding Shortfall
The combined possible purchase costs of these three vehicles total $2,768,465. The existing fire rescue vehicle has contributed $392,386 into the Vehicle Replacement Fund, and the two ambulances have contributed a combined $551,056. To close the funding gap between available Vehicle Replacement Fund and total purchase costs, staff recommends transferring $1,825,023 from the Public Safety Development Impact Fee Fund (Fund 308) to the Vehicle Replacement Fund (Fund 601). This requires City Council approval of the proposed budget resolution.
Fleet Electrification
While electric fire apparatus are now entering the market, their cost is currently more than double that of conventional units, and electric fire apparatus will require significant facility upgrades (estimated at $150,000-$400,000 per station) to support charging infrastructure. The technology continues to evolve and is not yet proven across the wide range of operational demands. For these reasons, staff recommends purchasing Clean Diesel vehicles at this time. The proposed units will comply with the U.S. Environmental Protection Agency’s heavy-duty emission standards.
ALTERNATIVES
• Approve the recommended purchases using cooperative purchasing contracts.
• Direct staff to issue competitive solicitations for the rescue vehicle and ambulances. This would delay procurement, risk increased downtime and repair costs for the current units while not guaranteeing better pricing for the replacement units.
FINANCIAL IMPACT
Sufficient funds are available in the Vehicle Replacement Fund and the Public Safety Development Impact Fee Fund’s fund balance. The proposed budget resolution authorizes transferring $1,825,023 from the Public Safety Development Impact Fee Fund (Fund 308) to the Vehicle Replacement Fund (Fund 601) and increases authorized expenditure in the Vehicle Replacement Fund (Fund 60141581) by $2,768,465. The purpose of Public Safety Development Impact Fee Fund is to cover the costs of public safety services across the island. City Council approved a similar amendment to the Fiscal Year 2024-25 Budget to transfer available funding from Fund 308 to Fund 601 to replace a Fire Department vehicle through Resolution #2025-4960. There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code and the City’s Strategic Plan Priorities to Enhance Community Safety and Services as well as to Practice Fiscally Responsible, Equitable and Inclusive Governance. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in CEQA Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
The Fleet Replacement Policy is consistent with the City’s recently adopted Climate Action and Resiliency Plan and emphasizes greenhouse gas emission reductions. The revised policy includes a focus on right-sizing the City fleet, the purchase of electric vehicles when feasible, and lowering the fleet’s greenhouse gas emissions through acquisition of low emission vehicles.
All replacements will be equipped with “Clean Diesel Technology” and will meet or exceed all current state and federal emission requirements. These “Clean Diesel” vehicle purchases confirm the City’s commitment to a green fleet. The new vehicles will cut carbon dioxide and diesel particulate matter in emissions by nearly 50% from the vehicles they replace.
RECOMMENDATION
Authorize the purchase of one Pierce Manufacturing, Inc. fire rescue vehicle from Golden State Fire Apparatus in an amount not-to-exceed $1,925,115.57 and two Medix Vehicles, Inc. ambulances from Republic EVS in an amount not-to-exceed $843,349.38; and adopt a resolution amending the Fiscal Year 2025-26 budget by transferring $1,825,023 of Public Safety Development Impact Fee Fund (Fund 308) balance to the Vehicle Replacement Fund (Fund 60141581) and increase authorized expenditure in the Vehicle Replacement Fund (Fund 60141581) by $2,768,465.
Respectfully submitted,
Erin Smith, Director of Public Works
By,
Carlo Balboni, Fleet Supervisor
Financial Impact section reviewed,
Ross McCarthy Finance Director
Exhibits
1. Golden State Fire Apparatus Agreement for Fire Rescue Vehicle
2. Republic EVS Quote for Two Ambulances