Department of Financial Management
411 West Ocean Boulevard, 6th Floor
Long Beach, CA 90802
562-570-6425
June 20, 2023
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Adopt a Resolution authorizing the City Manager, or designee, to execute a contract, and any necessary documents, including any necessary subsequent amendments, with 72 Hour, LLC, dba National Auto Fleet Group, of Watsonville, CA, for the purchase of four Ford E-450 Ambulances, with related equipment and accessories, on the same terms and conditions afforded to Sourcewell, in a total amount not to exceed $1,321,756, inclusive of taxes and fees. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with 72 Hour, LLC, dba National Auto Fleet Group for the purchase of four Ford E-450 Ambulances. The proposed units will be used by Long Beach Fire Department (LBFD), Emergency Medical Services (EMS) Division, as 9-1-1 emergency response rescue units. EMS provides critical emergency response to fire, medical, beach, and waterway crises for all residents and businesses in the City of Long Beach (City).
The proposed units are replacing four ambulances that are six years old. The current units are nearing the end of their useful life and are becoming increasingly more expensive to maintain. The City’s ambulances see heavy use and accumulate high mileage quickly.
Purchasing the replacement units now will minimize repair downtime and ensure the lowest net operational costs for the City. Timely replacement of emergency equipment is critical for successful operations, which are essential to the health of the community at large and will assist in providing public safety services to all residents and businesses in Long Beach.
These units are approved in the Fiscal Year 2023 (FY 23) Fleet replacement plan. Sufficient funds have been collected to replace these units.
The Fleet Services Bureau of the Department of Financial Management researched procurement options for ambulances and discovered other agencies had completed an open, fair, transparent, and competitive procurement process. The City reviewed the cooperative agreement options and determined that the contract between Sourcewell and National Auto Fleet Group provided the best value to the City. All Sourcewell contracts are competitively bid and offer the best available pricing. Sourcewell is a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to its members.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment, and labor with other R-29
HONORABLE MAYOR AND CITY COUNCIL
June 20, 2023
governmental agencies. This alternative procurement method can save time and reduce costs through economies of scale by purchasing under existing contracts from other government agencies on a voluntary and selective basis, when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Taylor Anderson on May 24, 2023, Purchasing Agent Michelle Wilson on May 23, 2023, and by Revenue Management Officer Geraldine Alejo on May 30, 2023.
SUSTAINABILITY
These new ambulances are compliant with the State of California and local district air quality regulations.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on June 20, 2023, to ensure that the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $1,321,756, inclusive of taxes and fees.
Sufficient funding for the purchase is budgeted in the Fleet Services Fund Group in the Financial Management Department. Annual ongoing maintenance, fuel, and replacement costs for each unit are estimated at $113,020 and will be billed to the General Fund Group in the Fire Department through the Fleet Services Bureau Memorandum of Understanding (MOU) process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
KEVIN RIPER
DIRECTOR
FINANCIAL MANAGEMENT
ATTACHMENT – RESOLUTION
APPROVED:
THOMAS B. MODICA
CITY MANAGER
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AUTHORIZING THE CITY
MANAGER TO EXECUTE A CONTRACT WITH 72 HOUR
LLC DBA NATIONAL AUTO FLEET GROUP, ON THE SAME
TERMS AND CONDITIONS AFFORDED TO
SOURCEWELL, A STATE OF MINNESOTA LOCAL
GOVERNMENT UNIT AND SERVICE COOPERATIVE, FOR
THE PURCHASE OF FOUR FORD E -450 AMBULANCES,
WITH RELATED EQUIPMENT AND ACCESSORIES, IN A
TOTAL AMOUNT NOT TO EXCEED $1,321,756, INCLUSIVE
OF TAXES AND FEES
WHEREAS, the Charter of the City of Long Beach, Section 1802, permits the City Manager to enter into a contract on behalf of the City, in writing or otherwise, without advertising for bids, for services, supplies , materials, eq uipment or labor, with other government agencies, when authorized by resolution; and WHEREAS, the City needs to replace four (4) ambulances that are nearing the end of their useful life and are becoming increasingly more expensive to maintain; and WHEREAS, the Fleet Services Bureau of Financial Management researched procurement options for ambulances and discovered other agencies had completed an open, fair, transparent, and competitive procurement process; and WHEREAS, Sourcewell is a State of Minnesota lo cal government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to its members ; and
WHEREAS, 72 Hour LLC dba National Auto Fleet Group has a contract with
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
Sourcewell for Class 4 -8 Chassis with Related Equipment, Accessories, and Services , Contract No. 060920 (“Sourcewell Contract”); and
WHEREAS, the City’s participation in the Sourcewell Contract will facilitate acquisition of the replacement ambulances as well as provide considerable cost benefits to the City; and
WHEREAS, if the City had to go to formal bid rather than participate in the Sourcewell Contract considerably more funds would be required; NOW, THEREFORE, the City Council of the City of Long Beach resolves as follows:
Section 1. The City Manager or designee is hereby authorized to enter a contract with 72 Hour LLC dba National Auto Fleet Group for four (4) Ford E -450 Ambulances, with related equipment and accessories, in a total amount not to exceed One Million Three Hundred Twenty -One Thousand Seven Hundred Fifty -Six Dollars ($1,321,756), inclusive of taxes and fees.
Section 2. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ///
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of _________________________, 2023 by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
City Clerk