REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Scott M. Haberle, Fire Chief
PREPARED BY: Bonnie To, Principal Administrative Analyst
Subject:
title
Approve the purchase of two new ambulances from Braun Northwest Inc. in the amount of $630,915.12; and approve a one-time appropriation of $25,915.12 from the Equipment Replacement Fund balance to Fund 32440209 for this purchase
body
Statement of Issue:
Per Resolution 2021-38, City Council approval is required for acquisition of capital items exceeding $500,000. The Huntington Beach Fire Department is requesting City Council approval for the purchase of two new ambulances from Braun Northwest, Inc. in the amount of $630,915.12. City Council approval is also requested to approve a one-time appropriation and fund transfer of $25,915.12 from the Equipment Replacement Fund balance to Fund 32440209.
Financial Impact:
The FY 2022/23 equipment replacement budget includes $605,000 for the purchase of two new ambulances. An additional appropriation is needed in the Equipment Replacement Fund for the remaining balance of $25,915.12 to complete this transaction.
Recommended Action:
recommendation
A) Approve and authorize the Mayor and City Clerk to execute “Service Agreement Between the City of Huntington Beach and Braun Northwest, Inc. for the Purchase of Two (2) New North Start 167-1 Module Ambulances” in the amount of $630,915.12 based upon HGAC Contract AM10-20, in accordance to Municipal Code 3.02.080; and,
B) Approve a one-time appropriation of $25,915.12 from the Equipment Replacement Fund balance to Fund 32440209 for the purchase of two new ambulances.
end
Alternative Action(s):
Do not approve, and direct staff accordingly.
Analysis:
There has been an estimated 6% increase in medical calls from Calendar Year 2020 to Calendar Year 2021, and the Huntington Beach Fire Department anticipates a higher medical call volume in Calendar Year 2022 as well. In addition, there are more events that the Huntington Beach Fire Department attends and responds to with ambulances.
The City’s Municipal Code 3.02.080 B.8 states that goods and/or services obtained from or through agreement with any governmental, public or quasi-public entity is an exemption to the competitive bidding requirements. The Houston-Galveston Area Council (H-GAC) has a Cooperative Purchasing Program and based upon its HGAC Contract AM10-20, Braun Northwest, Inc. provided a quote for two ambulances in amount of $630,915.12 ($315,457.56 each; See Attachment 1 for their quote).
Huntington Beach Fire Department is requesting for City Council approval to purchase of two new ambulances from Braun Northwest, Inc. in amount of $630,915.12, piggybacking HGAC Contract AM10-20. If approved, the City will work with Braun Northwest Inc. to enter into a contract for the purchase of two new ambulances.
The previously approved FY22/23 Equipment Replacement program budget includes $605,000 for this purchase in Fund 32440209. A difference between the quote from Braun Northwest, Inc. and the budgeted amount is $25,915.12.
To complete the purchase of two new ambulances to support the Fire Department’s capacity to respond to medical-related calls in the City, City Council approval is also requested for a one-time appropriation of $25,915.12 from the Equipment Replacement Fund balance to Fund 32440209.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Financial Sustainability, Public Safety or Other
Attachment(s):
1. Braun Northwest, Inc. Quote
2. Service Agreement
3. PowerPoint Presentation on Ambulances Purchase