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HomeMy WebLinkAboutResolution No. 2023-60,-Ox7/ 711-1 KENAI CITY OF KENAI RESOLUTION NO.2023-60 Sponsored by: Administration A RESOLUTION AUTHORIZING THE USE OF EQUIPMENT REPLACEMENT FUND TO PURCHASE A SECOND REPLACEMENT AMBULANCE FOR THE FIRE DEPARTMENT FLEET UNDER THE EXISTING CONTRACT WITH BRAUN NORTHWEST, AND AUTHORIZING A CHANGE ORDER TO THE CONTRACT. WHEREAS, Resolution 2022-47 awarded a contract to Braun North West, after a competitive process, for the purchase of a replacement ambulance for $245,372 and a change order in the amount of $7,350 was approved in December 2022 following pre -build meetings that updated the build of the ambulance, bringing the total cost to $252,722; and, WHEREAS, supply chain issues and the unavailability of vehicle chassis have resulted in delays in receiving the ambulance ordered in 2022; and, WHEREAS, the City was just recently notified the unit ordered in 2022 has finally received confirmation of an available chassis and will be delivered in 2024; and, WHEREAS, the build will utilize a more expensive Ford chassis because no Dodge chassis is available with Braun absorbing the increased chassis costs for the 2022 order; and, WHEREAS, the City has a current need for a second replacement ambulance and Braun has agreed to honor the build price of the City's 2022 contract with only an increase in chassis cost of $6,894 for a 2024 chassis and a switch from Dodge to Ford, bringing the total build cost for a second new ambulance to $259,616; and, WHEREAS, Rescue-6, an ambulance in the Fire Department fleet was scheduled for replacement after 13 years or in 2029 and is currently approaching 100,000 miles; and, WHEREAS, the City's two front-line ambulances, including Rescue-6 are averaging 12,500 — 15,000 miles annually requiring more frequent replacement than the planned 13 years; and, WHEREAS, because of higher than estimated usage and the extended build time for new ambulances, administration recommends replacement of Rescue-6 be undertaken now; and, WHEREAS, utilizing the 2022 bid price with a minor addition for a 2024 chassis and no other increase, despite historic inflation, provides a significant opportunity for the City to obtain the second needed ambulance through a change order to the existing contract; and, WHEREAS, it is unclear if the City could obtain a second replacement ambulance in a reasonable timeframe if it went out to bid again and administration understands costs would come back significantly higher due to inflation and market conditions; and, WHEREAS, the City has the funding available within the equipment replacement fund and it is in the best interest of the City to replace Rescue-6 at this time by issuing a change order to Braun for significant cost and time savings over waiting and issuing a separate bid at a later date. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: New Text Underlined; [DELETED TEXT BRACKETED] Resolution No. 2023-60 Page 2 of 2 Section 1. That the Kenai City Council authorizes the use of the Equipment Replacement Fund for replacement of Rescue-6 at an approximate cost of $259,616. Section 2. That the City Manager is authorized to execute a change order in the amount of $259,616 with Braun Northwest for are placement ambulance based upon their 2022 cost plus a $6,894 increase for a 2024 Ford chassis. Section 3. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 4T" DAY OF OCTOBER, 2023. ATT4T: MichSa M , City Clerk Approved by Finance: e�q J mes Baisden, Vice Mayor New Text Underlined; [DELETED TEXT BRACKETED] 7/ K N A� City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1 907.283.75351 wwwlenaixity MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Tony Prior, Fire Chief DATE: September 25, 2023 SUBJECT: Resolution 2023-60 Authorizing the Purchase of a Second Ambulance, Utilizing the City's Equipment Replacement Fund, By a Change Order to Braun Northwest. Due to the auto industry not fulfilling government contracts for chassis or utility vehicles for the past 2 years, and supply chain issues for parts, build times for ambulances are drastically changing and somewhat unknown. An ambulance, ordered in 2022, with a Dodge chassis is being changed to a Ford chassis as Dodge has not committed to fulfilling any government contracts and the build time is being extended beyond the contract's 420 days. Delivery for this unit is now expected in March 2024. The City's current replacement schedule for ambulances, estimated to be 13 years, is in need of updating due to the increased call volume and the administration recommends shortening the replacement schedule to ten years to address the higher mileage being placed on the City's ambulances. Rescue 6, the City's newest unit, built in early 2016, is already approaching 100,000 miles and the department is averaging 12.5-15k miles per year/per unit. At this pace, first line ambulances will require replacement between 8-10 years due to mileage and hours. While obtaining an estimate of the cost to replace Rescue 6 prior to its scheduled replacement in 2029, Braun Northwest, the company currently under contract to provide a replacement ambulance by March 2024 offered to build a second unit for the 2022 bid price plus and additional $6,894 for a 2024 Ford chassis versus the contracts 2022 Dodge chassis. The total cost, utilizing the 2022 bid process would be $259,616. Early replacement of Rescue 6 of will leave the City with two first line ambulances with low mileage and a reserve ambulance with approximately 120,000 miles on it. As with all equipment replacements, the City will delay future replacement, if possible, to ensure maximum benefit is being received. Early replacement is requested because of the increased mileage being applied to units, the extended build times, approaching two years, caused by supply chain interruptions and the opportunity to secure 2022 pricing competing bid by Braun Northwest. Your support of Resolution 2023-60 to purchase an ambulance utilizing the equipment replacement fund and issuance of a change order to Braun Northwest for construction of second ambulance is respectfully requested.