HomeMy WebLinkAboutItem 11e - Purchase of Rescue Ambulances & Budget Appropriation
DATE: August 16, 2022
TO: Honorable Mayor and City Council
FROM: Barry R. Spriggs, Fire Chief
By: Tom Devlin, Battalion Chief
SUBJECT: RESOLUTION NO. 7456 AMENDING THE FISCAL YEAR 2022-23
EQUIPMENT REPLACEMENT PROGRAM BUDGET, AUTHORIZING A
SUPPLEMENTAL BUDGET APPROPRIATION FOR THE PURCHASE AND
UPFITTING OF TWO (2) NEW RESCUE AMBULANCES IN THE AMOUNT
OF $452,456, OFFSET BY A REDUCTION IN THE EQUIPMENT
REPLACEMENT RESERVE FUND; AND APPROVING A PURCHASE
ORDER WITH EMERGENCY VEHICLE GROUP FOR THE PURCHASE OF
TWO (2) NEW 2023 DODGE RAM 5500 TWO-WHEEL DRIVE ROAD
RESCUE ULTRAMEDIC TYPE I AMBULANCES IN THE AMOUNT OF
$812,956
Recommendation: Adopt and Approve
SUMMARY
The Fire Department has two (2) existing rescue ambulances that have reached their time
for replacement. After exploring possible purchasing options, it was determined that using
Sourcewell, a national cooperative purchasing program, enables the City of Arcadia
(“City”) to streamline the process of procuring the rescue ambulances, and receive the best
price possible.
It is recommended that the City Council adopt Resolution No. 7456 amending the Fiscal
Year 2022-23 Equipment Replacement Program Budget, authorizing a supplemental
budget appropriation for the purchase and upfitting of two (2) new rescue ambulances in
the amount of $452,456, offset by a reduction in the Equipment Replacement Reserve
Fund, and approving a Purchase Order with Emergency Vehicle Group for the purchase of
two (2) new 2023 Dodge Ram 5500 two-wheel drive Road Rescue Ultramedic Type I
Ambulances through Sourcewell’s contract pricing in the amount of $812,956.
BACKGROUND
The City’s Vehicle Replacement Plan includes a seven-year replacement cycle for rescue
ambulances based on age, mileage, and level of reliability. The Fire Department has a
Resolution No. 7456 for Supplemental Budget Appropriation and
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August 16, 2022
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total of three (3) rescue ambulance vehicles: two (2) as frontlines, and one (1) as reserve.
The existing two (2) 2015 rescue ambulances (asset nos. 80348 and 80352) are on 2015
Chevrolet chassis and have reached their maximum recommended age criteria for
replacement. Over the years, their chassis have continually and increasingly required
maintenance and repairs almost on a weekly basis, adding extra costs for their upkeep.
As such, for this Fiscal Year, the City’s Equipment Replacement Budget included $360,500
for the replacement of one (1) rescue ambulance (asset No. 80348), while the other rescue
ambulance (asset no. 80352) was budgeted for replacement in Fiscal Year 2023-24.
DISCUSSION
The Fire Department reviewed the overall situation with these vehicles and is
recommending purchasing both vehicles this Fiscal Year, for the following primary reasons:
age of vehicles, high usage (about 65% of the department’s annual incident calls are
medical calls), ongoing apparatus problems that the department had been experiencing
over time (e.g., vehicle emissions system and engine failures), and the exceedingly long
wait times to custom-build and deliver this type of apparatus due to current nationwide
supply chain issues. For these reasons, replacement of these vehicles this Fiscal Year is
vital for the Fire Department to continue delivering uninterrupted critical ground emergency
medical transportation to the community.
For the past two years, the State has faced nationwide supply chain issues brought upon
by a confluence of challenges, from the pandemic to inflation to shortage of products and
materials while consumer demands persist. The purchase of ambulance vehicles is no
exception. The chassis and vehicle construction of an ambulance are specially designed
to meet the conditions of each ground emergency medical provider. During pre-pandemic
times, it typically takes approximately eight months to complete the design and custom-
build for one rescue ambulance, whereas presently, it could take up to 20 months. After
much evaluation and consideration, staff determined that purchasing two (2) new rescue
ambulances concurrently during this Fiscal Year is the most prudent option to ensure that
the department receives the apparatus without further delay, and by taking advantage of
the available pricing afforded by Sourcewell’s cooperative purchasing program.
The California Government Code authorizes public agencies to participate in cooperative
purchase agreements such as those established by Sourcewell while remaining within
the City’s adopted rules and procedures for purchasing. Sourcewell is a State of
Minnesota agency and service cooperative purchasing program that was created under
the laws of the State of Minnesota (Statutes Section 123A.21) that offers cooperative
procurement solutions to all U.S. public agencies. By utilizing a cooperative purchasing
program, the City is able to streamline the procurement process for these services at a
lower cost than the traditional competitive bidding process. Cooperative purchasing
agreements also leverage economies of scale to enable vendors to provide goods and
services at reduced costs. Sourcewell awarded a contract to Emergency Vehicle Group
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August 16, 2022
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(“EVG”), which meets the City’s procurement requirements and the department’s
specifications in purchasing similar emergency vehicles.
Request for Budget Appropriation
The existing two (2) 2015 Chevrolet Express 3500 Road Rescue Ambulances will be
replaced with two (2) new 2023 Dodge Ram two-wheel Road Rescue Ultramedic Type I
ambulances.
Each rescue ambulance vehicle costs $406,478 or $812,956 in total for both vehicles.
Funds in the amount of $360,500 are budgeted in Fiscal Year 2022-23 Equipment
Replacement Program Budget for replacing one (1) new ambulance. Funds would have
been added to the Fiscal Year 2023-24 budget for the second vehicle, but to cover the
total cost for replacing and purchasing two new vehicles now will require an additional
$452,456. For a breakdown of the additional appropriation being requested for this
purchase, see the table below:
Equipment Description Amount
A. Fiscal Year 2022-23 Equipment
Replacement Budget for one (1)
new rescue ambulance $360,500
B. Replacement and Purchase of two
(2) new rescue ambulances @
$406,478 each - $812,956
C. Additional cost needed to replace
and purchase two (2) new rescue
ambulances (difference of A - B):
Appropriation Request = ($452,456)
Given the uncertainty of the market and the rising inflation rate, approximately $58,770
could be realized in savings by moving the other rescue ambulance (asset no. 80352) for
replacement this Fiscal Year. This estimated cost savings by moving up the purchase is
based on two cost factors: (a) to prevent incurring $23,200 in additional
maintenance/repair costs; and (b) to avoid pending CPI increases through next year that
could be as high as 8.75% (the average CPI increase for most western cities according
to the latest data from the US Bureau of Labor statistics). This means that the purchase
of one ambulance could increase up to 8.75% or $35,567 (from $406,478 to $442,045).
Incidentally, it is worth noting that these increases do not take into account next year’s
possible change in piggybacking cost, when the City has to apply a new cooperative
purchasing pricing to replace the other rescue ambulance, as bid costs would most likely
be escalating during this period as well.
Resolution No. 7456 for Supplemental Budget Appropriation and
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August 16, 2022
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Equally important, the 12-month delay to design and custom-build a rescue ambulance
(from 8 months to 20 months of project completion) due to national chain supply issues,
is one of the major considerations for this proposal. Key to this decision is that fact that
medical response times are critical, and the Fire Department requires its rescue
ambulances to be fully functional and in optimal condition as it responds to thousands of
medical calls annually. Although the Fire Department has been operating satisfactorily
with its three (3) rescue ambulances (2 frontlines and 1 reserve), taking at least one
emergency transport vehicle out of service could significantly impact the Fire
Department’s overall ground emergency medical response and services to the
community.
In summary, given both anticipated cost savings and national supply chain issues, it is
recommended that the City Council purchase two (2) new rescue ambulances this Fiscal
Year.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”) under Section 15061(b)(3) of the CEQA Guidelines, as it can be
seen with certainty that it will have no impact on the environment. Thus, this matter is
exempt under CEQA.
FISCAL IMPACT
The Fiscal Year 2022-23 Equipment Replacement Program Budget included $360,500 for
the purchase of one (1) new rescue ambulance vehicle. EVG’s Sourcewell cooperating
pricing cost per ambulance is $406,478. The total cost to replace and purchase two (2)
new 2023 Dodge Ram Road Rescue Ultramedic Type I ambulances at this time is
$812,956. Thus, an additional $452,456 is needed to cover the entire cost of purchasing
two (2) new 2023 Dodge Ram Road Rescue ambulance vehicles and avoid additional
repair costs and downtime over the next several years.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project and is, therefore, exempt under the California Environmental Quality Act
(“CEQA”); and adopt Resolution No. 7456 amending the Fiscal Year 2022-23 Equipment
Replacement Program Budget, authorizing a supplemental budget appropriation for the
purchase and upfitting of two (2) new rescue ambulances in the amount of $452,456,
Resolution No. 7456 for Supplemental Budget Appropriation and
PO with Emergency Vehicle Group
August 16, 2022
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offset by a reduction in the Equipment Replacement Reserve Fund; and approving a
Purchase Order with Emergency Vehicle Group for the purchase of two (2) new 2023
Dodge Ram 5500 two-wheel drive Road Rescue Ultramedic Type I ambulances in the
amount of $812,956.
Attachment: Resolution No. 7456