Loading...
HomeMy WebLinkAboutItem 1b: Purchase of Paramedic Rescue Ambulance from Road Rescue Inc. for Fire Departmentt . DATE: October 5, 2010 TO: Mayor and City Council FROM: Tony L. Trabbie, Fire Chief' Tom Tait, Public Works Service Director By: Rick D. Braun, Battalion Chief 0. SUBJECT: APPROVE THE PURCHASE OF ONE (1) PARAMEDIC RESCUE AMBULANCE FROM ROAD RESCUE INC. FOR THE FIRE DEPARTMENT IN THE AMOUNT OF $197,504.77 Recommended Action: Approve SUMMARY At the September 2, 2008 City Council meeting, the City Council approved staff to enter into a contract with Road Rescue Inc. for the purchase of one (1) 2008 or newer Ford E450 Super Duty Type III Rescue Ambulance. Included in the contract was the option of purchasing additional unit(s) within five (5) years at the 2008 purchase price plus any applicable increase in the Consumer Price Index (CPI). Asset number 80094, a ten - (10) year -old rescue ambulance with 76,100 miles, surpasses the City's Vehicle Replacement Criteria schedule and is due for replacement at this time. Therefore, staff is recommending that the City Council approve the purchase of (1) one 2010 or newer Ford E450 Super Duty Type III Rescue Ambulance from Road Rescue Inc. in the amount of $197,504.77. Funds have been budgeted in the City's Fiscal Year 2010 -2011 Equipment Replacement Plan for the purchase of this rescue ambulance. BACKGROUND STAFF REPORT Fire Department Emergency medical services represent an integral public service delivered by the Fire Department. The Fire Department's two (2) rescue ambulances, operated by certified firefighter paramedics on a daily basis, respond to thousands of emergency medical and rescue incidents per year. During Fiscal Year 2009 -2010, the Fire Department responded to a total of 4,560 calls for service, of which 3,054 or approximately 67% of Page 1 of 3 Mayor and City Council September 21, 2010 Page 2 all calls were for medical emergencies. In spite of the high costs associated with the provision of emergency medical services, the City collects a fair amount of revenue from ambulance billing and the Paramedic Membership Program. During Fiscal Year 2009- 2010, the Fire Department ambulance billing represented $1,113,372.65 of the City's total Fiscal Year 2009 -2010 revenue. In addition, the Paramedic Membership Program, which since 1994 has been offered to Arcadia residents as a protection from out -of- pocket paramedic and ambulance transport expenses within the City of Arcadia, collected a total revenue of $147,828.60 in membership fees for Fiscal Year 2009 -2010. DISCUSSION In 2008, staff solicited competitive bids from eight (8) vendors for the purchase of a new Rescue Ambulance and as a result received two (2) responses at the bid opening on July 15, 2008. On September 2, 2008, City Council approved the purchase contract from Road Rescue Inc., as they were the lowest responsible bidder. As part of that contract, Road Rescue Inc. offered the same pricing conditions, plus CPI increases, for a period of five (5) years for any additional ambulance purchases. Asset number 80094, a ten- (10) year -old rescue ambulance with 76,100 miles, surpasses the City's Vehicle Replacement Criteria Schedule and is due for replacement at this time. (According to the City's Vehicle Replacement Program, the next rescue ambulance replacement will not take place until 2016.) For the pricing of this purchase, Road Rescue Inc. has waived the CPI increase and honored the 2008 pricing. The amount of this purchase reflects an increase in sales tax from 8.25% to 9.75% and equipment modification changes which include slight increases from the chassis vendor and modifications to the electrical system. If the City were to competitively bid the rescue unit today, it is estimated that the cost of the vehicle could be as high as $214,287.77, which is $16,783.00 higher than the price honored under the five -year contract the City has with Road Rescue Inc. Therefore, staff is recommending that the City Council approve the purchase of (1) one 2010 or newer Ford E450 Super Duty Type III Rescue Ambulance from Road Rescue Inc., in the amount of $197,504.77. FISCAL IMPACT Sufficient funds have been appropriated in the Fiscal Year 2010 -2011 Equipment Replacement Fund to cover the cost of this acquisition. Page 2 of 3 Mayor and City Council September 21, 2010 Page 3 RECOMMENDATION It is recommended that the City Council authorize staff to purchase one (1) 2010 or newer Ford E450 Super Duty Type III Rescue Ambulance from Road Rescue Inc. in the amount of $197,504.77. Approved: * P -+ --� Don Penman, City Manager Page 3 of 3