Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE-PURCHASE AGREEMENT WITH EXCELLANCE, INC. FOR A REMOUNT AMBULANCE VEHICLE FOR USE BY THE EMERGENCY MEDICAL SERVICE; AND DECLARING AN EMERGENCY.
Executive Summary: Since 2004 EMS has been replacing its Ambulances every 6 years, one every two years. This allows the EMS Department to control their repair costs as the drive train warranties are 5 year or 100,000 miles and at the same time keep the fleet reliable. Additionally EMS has chosen to once again remount the Ambulance rather than replace the vehicle. This action results in a savings of over $89,000.
Body
Legislative History
Res. No. 04-220 Entered into an agreement to lease or purchase two (2) ambulances from Excellance, Inc.
Res. No. 05-122 Entered into a lease agreement for the Ambulances
Res. No. 06-155 Entered into an agreement with Excellance, Inc. to purchase an ambulance.
Res. No. 13-134 Entered into a lease agreement with Excellance, Inc. to remount an ambulance.
Purpose & Explanation
Due to maintenance and reliability issues that EMS was experiencing with its Ambulances, beginning in 2005 we reduced the life cycle from nine years to six years. This has significantly improved our operations by reducing down time and major repairs.
Council has tentatively approved, via the five year plan, the lease/purchase of a replacement ambulance in 2016.
Excellance, Inc., the original manufacture of this Ambulance, has presented the option of remounting our old ambulance box on to a new chassis. The cost to perform this remount is $120,005.72. This will be the second remount for this ambulance box. With every remount the box is structurally warrantied for 25 more years. We also receive a new 10-year electrical component and wiring warranty.
This year, following discussion with the City Manager and the Finance Director, we have added a power cot with loading system to the contract allowing us to spread the $52,785.02 cost of the cot system out over the 5-year lease period, rather than spending capital funds upon delivery of the remounted squad.
The total contract cost for the remounted ambulance and power cot system is $172,790.74 to be paid over a five (5) year lease period.
The current cost of a new ambulance with identical features as our current one including a new power cot system is estimated to be $265,000.
In an effort to reduce expenditures and to continue with the established replacement cycle, staff is again recommending to remount the old ambulance box on to a new chassis.
Timing Considerations
With Council approval, the contract will be signed and the order will be placed in October 2015. The delivery of our old Ambulance to the manufacture is estimated to be the in the first half of January 2016. At which time the service would be running with two ambulances and pulling the Emergency Incident Support Unit (4016) into service when one of the remaining units would be out for maintenance. Completion of the remount is anticipated to be within 90 days of receipt of the new chassis and our old ambulance at the vendors shop. Expected delivery of the newly remounted Ambulance to Hudson should be no later than May 1, 2016.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required. Lease payments would start around April of 2017.
Recommendation
Suggested Action
Staff recommends that Council authorize the City Manager to enter into an agreement for the lease-purchase of a remount ambulance vehicle for the emergency medical service and selecting Excellance Inc. of Madison, Alabama as the lowest and best bidder.
Submitted by,
Jane Howington, City Manager
Jerry Varnes, Fire/EMS Chief