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Fire Department
DATE: April 7, 2015
TO: Honorable Mayor and City Council
FROM: Kurt Norwood, Fire Chief
By: Michael Lang, Deputy Fire Chief
Maria Lourdes A. Taylor, Senior Management Analyst
SUBJECT: PURCHASE ORDER WITH EMERGENCY VEHICLE GROUP, INC. TO
REMOUNT AND REFURBISH THREE RESCUE AMBULANCES FOR
THE ARCADIA FIRE DEPARTMENT IN AN AMOUNT OF $304,200, AND
APPROPRIATE AN ADDITIONAL $35,000 FROM THE EQUIPMENT
REPLACEMENT FUND
Recommendation: Approve
SUMMARY
The Fiscal Year 2014 -15 Equipment Acquisition Budget included funding of $276,000
for the purchase of one completely new rescue ambulance to replace a 15 year old
ambulance. During the bidding process, City staff and vendors explored the possibility
of refurbishing and remounting the existing "box" (the portion of the ambulance where
patient care is delivered) onto a new chassis. This was shown to be significantly less
expensive but will be equally as reliable as a fully new unit. In fact, all three of the City's
rescue ambulances could be refurbished for only slightly more funds than one fully new
one. Due to issues being experienced with the fleet, a complete change out is advisable
at this time.
In light of this, the Fire Department recently solicited bids to remount and refurbish three
Road Rescue ambulances and determined that Emergency Vehicle Group, Inc. (EVG)
was the lowest responsive and responsible bidder. Therefore, it is recommended that
the City Council approve a purchase order with Emergency Vehicle Group, Inc. to
purchase engines, vehicle chassis, remount and refurbish three rescue ambulances for
the Arcadia Fire Department in an amount of $304,200 for Fiscal Year 2014 -15. It is
also recommended that the City Council approve an additional appropriation of $35,000
from the Equipment Replacement Fund for this purchase.
Purchase Order to Remount and Refurbish
Rescue Ambulances
April 7, 2015
Page 2 of 4
BACKGROUND
The Arcadia Fire Department (AFD) currently has three paramedic rescue ambulances:
two utilized as front line and one as a reserve. As rescue ambulances are utilized at a
moment's notice and are centered on the patient's need for prehospital care, in
conjunction with a safe working environment for the emergency medical personnel, it is
critical that these vehicles are maintained in optimal condition and are reliably
engineered.
The Fiscal Year 2014 -15 Equipment Acquisition Budget has an approved funding of
$276,000 for the purchase of one rescue ambulance to replace the existing 2000 Ford
reserve ambulance, which has met the age and /or mileage requirement of the City's
Vehicle Replacement Program. However, over the years, the other two front line
ambulances that were manufactured by Ford in 2009 and 2010 have been undergoing
constant repairs with substantial downtime due to the subpar engines that were
included in those model years. Ford has acknowledged this issue and continued to
repair the ambulance engines under warranty. The circumstances surrounding these
Ford engines has become increasingly problematic because the constant work and
maintenance to these engines is resulting in significant out -of- service time for the two
front line ambulances. Once it was determined that by internally and externally
refurbishing and remounting the existing "box" onto new chassis was a viable option
operationally and financially, and that the level of our Emergency Medical Services
delivery would not suffer, Fire personnel concluded that we could replace all three (3)
ambulances with new engines and chassis. The fact that all three of the City's rescue
ambulances boxes could be refurbished and remounted on a new chassis with a new
engine for only slightly more funds than one fully new one provides the Fire Department
the opportunity to remove two Ford engines that the Fire Department knows, and Ford
has acknowledged, to be subpar. This will reduce maintenance efforts and increase
readiness while saving substantial funds over time.
DISCUSSION
To ensure the use of highly reliable and quality rescue ambulances that meet the needs
of the AFD, a formal bid solicitation was recently conducted. The bid specifications for
remounting the three patient "boxes" consisted of the following key requirements: a
new, commercially produced chassis manufactured in accordance with the ambulance
design criteria set by federal regulatory agencies; the design of the chassis remount and
specified options must allow accessibility for servicing, replacement and adjustment of
components and accessories with minimum disturbance to other components and
systems; modifications that will enable the ambulance remount to function reliably and
efficiently in a strenuous sustained operation; and finally, completion of a successful
vehicle inspection trip in adherence to the City's specifications.
Purchase Order to Remount and Refurbish
Rescue Ambulances
April 7, 2015
Page 3 of 4
Remounting of Ambulances Versus Purchasing New Vehicles
Without compromising the vehicles' structural integrity and dependability, the City can
achieve an overall savings of approximately $523,800 by remounting and refurbishing
its existing three rescue ambulances with new, commercially produced chassis, as
opposed to purchasing new vehicles.
Description
Amount
Total vehicle replacement cost to purchase three (3) new rescue
ambulances @ $276,000 per vehicle*
$ 828,000
Total cost to remount and refurbish three (3) rescue ambulances with
new Chevy 4500 diesel chassis for FY 2014 -15
$ 304,200
Total Savings (remount versus new purchase)
$ 523,800
*Per vehicle cost from the approved FY 2014 -15 Equipment Acquisition Budget for vehicle replacement
Funds in the amount of $276,000 are budgeted in FY 2014 -15 Equipment Acquisition
Budget for replacing one new ambulance. However, in order to cover the total cost to
remount and refurbish the existing three rescue ambulances, while considering
unforeseen work or modifications during their build and assembly, an additional $35,000
will be needed for this purchase.
Description
Amount
A. FY 2014 -15 Vehicle Replacement Budget for one (1) new rescue ambulance
$
276,000
B. Remount and Refurbish of three (3) rescue ambulances
$
304,200
Contingency for unforeseen work (2.2% of total purchase cost)
$
6,800
Subtotal (remount and refurbish))
$
311,000
C. Additional cost needed to remount and refurbish three (3) rescue
ambulances including contingency work (difference of A - B)
$
(35,000)
A Notice Inviting Bids was published in the City's local newspaper and bid packages
were sent out to contractors who can perform this type of work. On February 27, 2015,
a mandatory pre -bid meeting was attended by the following interested contractors. On
March 17, 2015, the City Clerk received the following bid results:
BIDDER LOCATION BID AMOUNT
Emergency Vehicle Group, Inc. (EVG) Anaheim, CA $ 304,199.72
Leader Emergency Vehicles South El Monte, CA $ 325,989.57
Braun Northwest Chehalis, WA No bid
Purchase Order to Remount and Refurbish
Rescue Ambulances
April 7, 2015
Page 4 of 4
After evaluating all received bids, it was determined that Emergency Vehicles Group,
Inc. (EVG) was the lowest responsive and responsible bidder who can best meet the
City's needs per the bid specifications. Furthermore, EVG had done business with the
Arcadia Fire Department previously and currently provides repair and services to the
City's rescue ambulances. With their proven experience and familiarity of the AFD's
needs and requirements, Fire personnel had found EVG's work to be satisfactory.
FISCAL IMPACT
$276,000 has been approved in the Fiscal Year 2014 -15 Equipment Acquisition Budget
for the purchase of one new (1) rescue ambulance. Given the considerations above,
remounting and refurbishing three (3) rescue ambulances onto new Chevy 4500 diesel
chassis will cost $304,200 versus $828,000 for purchasing all three new vehicles.
Essentially, over time, the City will save approximately $523,800 with this option. In
addition, by changing out the two problematic engines now, the City will avoid additional
repair costs and downtime over the next several years.
In order to cover the additional $28,200 required in remounting and completely
refurbishing all three (3) ambulances, plus the 2.2% contingency cost or $6,800 for this
type of work, an additional $35,000 will need to be allocated for this purchase.
RECOMMENDATION
It is recommended that the City Council approve a purchase order with Emergency
Vehicle Group, Inc. to remount and refurbish three rescue ambulances for the Arcadia
Fire Department in an amount of $304,200 for Fiscal Year 2014 -15, and approve an
additional appropriation of $35,000 from the Equipment Replacement Fund.
Approved:
Dominic Lazza
City Manager