Title
Recommendation to Authorize the Interim City Manager to Negotiate and Execute an Agreement for the Purchase of One Horton F-550 Type I Ambulance in an Amount Not to Exceed $385,178. (Fire 3200)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The adopted Fiscal Year 2018-19 Budget includes an expenditure for the purchase of one ambulance. In accordance with the City of Alameda’s Fleet Replacement Criteria, the Fire Department recommends purchasing a Horton F-550 Type I Ambulance in the amount of $385,178.
BACKGROUND
The Fire Department is responsible for replacing Fire Apparatus, vehicles and equipment according to the City’s Vehicle (Fleet) and Equipment Replacement Policy. The replacement policy is based on the City of Alameda’s Fleet Replacement Criteria, which considers the useful life of vehicles and equipment in terms of age, mileage (or hours), and usage. Vehicles and equipment scheduled for replacement are also reviewed and analyzed for safety history and operating performance to determine if a vehicle or equipment may be replaced later. Vehicles and equipment are also reviewed to determine if the minimum use guidelines are met. The Fire Department developed a 10-year apparatus/vehicle replacement plan based on the City’s replacement program criteria.
On June 6, 2017, the City Council adopted the Fiscal Year (FY) 2017-18 and 2018-19 Budget, which included the estimated expenditure of $386,000 for purchasing one ambulance during FY 2018-19.
DISCUSSION
Staff is recommending that one ambulance be replaced. In accordance with the City’s Vehicle Replacement Policy, the useful life of an ambulance is 8 years total (6 years front line and 2 years reserve) or 85,000 miles. The current front line Medic 1 (vehicle AFD-7) is 4 years old. It will replace the current reserve Medic 504 (vehicle AFD-80), which is 17 years old with 90,125 miles. Both criteria exceed the City established standard for the maximum life of an ambulance.
The Fire Department proposes purchasing the ambulance through the Horton contract with the Houston-Galveston Area Council (HGAC). HGAC’s procurement program is known as HGACBuy. It is a nationwide, government-to-government procurement service that has procured products and services for over 30 years. All contracts available to members of HGACBuy have been awarded by virtue of a public competitive procurement process compliant with state statutes.
Selection of a Horton emergency vehicle (dba Leader Industries) will continue the standardization of the vehicles being purchased for public safety and make it easier for fleet maintenance to maintain these vehicles in the future.
The Alameda Municipal Code, Subsection 2-61-7, Joint Purchases with Public Agencies, provides authority for the City to use another government agency’s competitive bidding process to purchase materials, supplies, equipment, vehicles, and apparatus, “provided the purchase is the result of competitive bidding or proposal and is made in compliance with the competitive bid or proposal requirements of any participating agency or organization in a manner that is consistent with law.” In order to assure a cost-effective purchase, the Fire Department proposes to “piggy-back” onto the competitively bid Horton contract with HGAC. Staff has obtained a quote for the ambulance under the Horton contract with HGAC in the amount of $272,376. Quotes for the remaining accessories were obtained from several vendors in the amount of $112,802. This includes a quote for outfitting the ambulance with one Lifepak Heart Monitor and one LUCAS chest compression device, medical equipment that the City is now responsible for providing due to recent contract changes with Alameda County.
FINANCIAL IMPACT
The funds for the purchase of the ambulance are budgeted for in the Fiscal Year 2018-19 Vehicle Replacement Fund (Fund 701).
In the proposal from Horton, there are two options for payment:
Option A - Full payment at contract signing includes a $3,500 discount on the ambulance. The purchase price will be $272,376 plus $112,802 in additional equipment, for a total purchase price of $385,178, which is within the City Council allocated amount of $386,000.
Option B - Full payment at time of delivery (approximately 7 months after contract signing). The discounts listed under Option A would not apply and the purchase price will be $276,200 plus $112,802 in additional equipment, for a total purchase price of $389,002. This will be $3,002 in excess of the $386,000 allocated by the City Council.
Staff recommends Option A payment for the ambulance. The Fire Department staff realizes prepayment is not a standard practice for the City. However, staff believes the savings to be realized from the applied discount outweighs the minimal prepayment risk.
Horton is a reputable company and is well known for providing a high quality product. The Fire Department has purchased numerous ambulance and ambulance remounts from Horton over past years. The City has been assured that the ambulance will meet the City’s expectations. This will be facilitated by the department’s inspection of the ambulance during construction, as well as the final customer inspection/acceptance process at the time of delivery.
The proposal from Horton must be accepted no later than November 15, 2018. If accepted after that date, the City will not receive the discount and may be subject to potential future manufacturer’s price increases, which would likely exceed the amount allocated by City Council for the purchase of the ambulance.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is authorized pursuant to Alameda Municipal Code Subsection 2-61.7 “Joint Purchases with Public Agencies”, Alameda Administrative Rule 5, and Alameda Municipal Code Section 2-62.2, which exempts contracts with any single or source supplier for supplies, material or equipment from the City's local purchasing policy.
ENVIRONMENTAL REVIEW
This action is not a project for the purposes of the California Environmental Quality Act (CEQA) under CEQA Guidelines section 10561(b)(3) as there is no possibility that this action may have a significant effect on the environment.
RECOMMENDATION
Authorize the Interim City Manager to negotiate and execute an agreement for the purchase of one Horton F-550 Type I Ambulance in an amount not to exceed $385,178.
Respectfully submitted,
Edmond Rodriguez, Fire Chief
By,
Darci Vogel, Fire Administrative Services Supervisor
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Ambulance Quote Package - 09182018