Agenda Report
Fullerton City Council
MEETING DATE: August 20, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: adam loeser, fire chief
PREPARED BY: andrew yang, administrative analyst I
SUBJECT: lease agreement WITH zoll one PROGRAM FOR EMS EQUIPMENT
SUMMARY
Staff requests City Council approve a lease agreement with Zoll Medical Corporation for Emergency Medical Services (EMS) equipment and software support.
PROPOSED MOTION
Approve a ten-year lease agreement (“Zoll One Program Master Agreement”) with Zoll Medical Corporation for Emergency Medical Services (EMS) equipment and clinical software support.
Authorize City Manager, or designee, to execute related documents and issue annual $174,873.97 purchase orders for the Zoll One Program Master Agreement through Fiscal Year 2033-34.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Do not approve the Proposed Motion
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
The City Manager recommends approval.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Public Safety.
FISCAL IMPACT
The Fiscal Year (FY) 2024-25 Fire Department Adopted Budget includes $164,000 for EMS equipment (Subprogram 246). Escalated annual costs to lease EMS equipment with Zoll Medical Cororation (Zoll) total $173,874 annually, inclusive of applicable taxes, resulting in $1.74 million over the proposed ten-year term. The Fire Department would absorb the approximately $9,900 discrepancy in its FY 2024-25 budget if City Council approves this item.
BACKGROUND AND DISCUSSION
Orange County EMS Agency Policy #325.00 describes the standard minimum drug and equipment inventory for an Advanced Life Support (ALS) unit in Orange County. This policy mandates that ALS units carry an FDA-approved automatic chest compression device and cardiac monitor / defibrillator with clinical software capabilities. Both machines, along with the automated external defibrillator (AED), are life-saving medical devices that Fullerton first responders and paramedics carry with them to over 12,000 medical incidents annually. These devices provide accurate diagnosis, treatment, monitoring and communication with the hospital that will receive the patient.
Existing Fire Department EMS equipment, purchased from Zoll in March 2019 with the first OC EMS policy implementation, has significant wear and tear from daily use in critical emergency medical settings. The equipment warranties have expired and the equipment requires replacement as ongoing repair and maintenance costs have become increasingly prohibitive. The City would trade in the existing equipment Zoll.
Staff conducted extensive negotiations with Zoll Medical Corporation and secured significantly more favorable pricing terms for the City compared to cooperative pricing through the California Multiple Award Schedule, the governmental cooperative purchasing agreement upon which the proposed agreement is based. The Agreement guarantees pricing the duration of the ten-year agreement, prohibiting any mid-term price increases. Staff successfully negotiated enhanced trade-in values for the equipment, which Zoll would credit as a discount against the capitalized amount.
The proposed agreement secures a ten-year operating lease for new equipment, featuring two rental terms within the lease structure. The City may elect to exercise a one-time replacement option for all equipment, including accessories, at no additional cost during the first five years of the lease term (the “Replacement Period”). The City would return the initial set of equipment to the manufacturer and the City would receive an equal number of replacement devices in new condition (or an upgrade to a newer platform, if available at that time). The City has the right to purchase the equipment at fair market value at the end of the ten-year term.
The proposed agreement provides operational stability for the Fire Department, covering preventative maintenance, repair fees, select annual accessory and battery replacements, accidental damage and loaner equipment under an extended warranty and service plan. It ensures consistency for Fullerton paramedics, who have gained proficiency with Zoll cardiac equipment through extensive training and field experience. The Fire Department expects to exercise the Zoll One Program replacement provision in 2029, ensuring the City EMS equipment remains at the cutting edge of medical technology to provide the most effective pre-hospital emergency care for Fullerton residents. Lastly, the agreement provides long-term fiscal stability to the City, locking in predictable EMS equipment costs over the next decade.
Attachments:
Attachment 1 - Zoll One Program Master Agreement
cc: City Manager Eric J. Levitt
Zoll One Program Lease Agreement
August 20, 2024 - Page 2