TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Utilize the REV RTC, Inc. contract to purchase (2) two replacement ambulances now and (1) one new ambulance to be purchased when the Principles of Agreement can be reached with the West Villages at an estimated price of $271,202 each for an estimated total of $813,606.
Recommended Action
Approve utilization of the REV RTC, Inc. contract to purchase (2) two replacement ambulances now and (1) one new ambulance to be purchased when the Principles of Agreement can be reached with the West Villages at an estimated price of $271,202 each for an estimated total of $813,606.
Background Information
City Commission approved $1,223,370 under SLA’s 19-2200 and 19-2218 in the fiscal year 2019 budget for the purchase of two replacement ambulances (CIDs # 71530 and 71531), one new ambulance and the associated equipment for each ambulance.
The approved budget is as follows:
Two replacement ambulances approved budget ($781,780):
CID Chassis Ancillary Equipment
71530 $271,202 Estimated $150,000 or less
71531 $271,202 Estimated $48,570 or less
One new ambulance approved budget ($441,610):
Chassis Ancillary Equipment
$271,202 Estimated $150,000 or less
The Fire Department anticipates additional expenses for each of the above ambulances totaling less than listed amounts for the purchase and/or installation of ancillary equipment which will be issued under separate purchase orders to multiple vendors from this project.
The estimated cost for the three ambulances is $813,606 ($271,202 each). The price is based on dealer cost for the vehicle and equipment plus 8% as authorized in the contract, inclusion of additional items and increase for the change from a Freightliner to International chassis. The budgeted estimated cost for the three ambulances is $874,800 ($291,600 each).
When the new Principles of Agreement can be reached which will provide reimbursement for this capital expenditure, we will move forward with the purchase. Otherwise, the budgeted amount for this ambulance will be unexpended and returned to the General Fund. The estimated cost for the new ambulance in West Villages, Station 86 is addressed in SLA 19-2200.
In fiscal year 2017, Fire Rescue utilized the Florida Sheriff’s Association bid to enter into a three-year contract with REV RTC, Inc. for the purchase of replacement ambulances. We are now in the third and final year of the term and are proposing the purchase of up to three vehicles under the same terms and conditions, with a price adjustment based upon the terms of the contract. The contract language includes the name of the prior Fire Chief (page 5) and a reference to a blanket purchase order issued in the 2017 budget year (page 12). The Chief’s name is for communications purposes only and a purchase order is issued for each budget fiscal year based on Commission’s approval of funding.
Fire Rescue anticipated the delay in manufacture due to chassis availability, this past June 2018 a letter of intent was provided to REV RTC, Inc. The anticipated delivery of the vehicles is approximately mid to late-fall of 2018.
Vehicle and capital equipment replacement is determined through a combination of mileage, age, hours and efficiency, as well as changing industry standards.
Strategic Plan
Financially Responsible City Providing Quality Municipal Services
Financial Impact
Funding in the amount of $781,770 is included in the fiscal year 2019 capital expenditure budget for the purchase of two replacement ambulances and equipment, account number 306-2222-526-64.00, project number EM19RA.
Funding in the amount of $441,600 is included in the fiscal year 2019 budget for the purchase of one new ambulance, equipment and supplies for the West Villages, Station 86, account number 001-2222-526-64.00, project number EM19AM.
Procurement
Procurement will be made under our existing contract currently in its third and final year of a three-year term. Purchase of the vehicles will be made under the same terms and conditions, with a contractually allowed price adjustment. The attached contract, approved 10/18/16 by Commission, utilized Florida Sheriffs Association Contract No. FSA16-VEF12.0 for chassis and patient module specifications and pricing. Florida Sheriff’s Association Contract No. FSA16-VEF12.0 was competitively awarded and compliant with Sec. 2-403 (a) 2 of the City Procurement Code.
Vendor Information
Rick Shoppe
Hallmark Sales
725 SW 46th Avenue
Ocala, FL 34474
(352) 629-6305
Attachments:
1. REV RTC, Inc. Proposal
2. Road Rescue Specifications
3. REV RTC, Inc. Contract
4. Vehicle Repair History Report
5. Equipment & Fleet Vehicle Replacement Score Sheet
6. Power Point Presentation
7. Florida Division of Corporations
Prepared by: Kenneth Rappuhn, Fleet Manager
Department Director: Juliana B. Bellia