Agenda - 06-04-2002 - 8s - Laserfiche WebLink

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Bever) BI he absre Iacementirvs0604.doc Pa e , . • appropriations as approved by the Board. However, in recognition of the Board's recent comments regarding the desirability of examining the potential delay of various capital expenditures due to the constrained financial landscape under which the Countyls now operating, staff are asking the Board to authorize this specific purchase of replacement EMS vehicles. The Emergency Management Department has conducted an assessment over the past year to determine the most appropriate type of vehicle for use in as an initial response vehicle (IRV). As the Board may recall, when the IRV program was undertaken in October 1996, because of their immediate availability, the program utilized surplus Sheriffs vehicles as the response vehicle. However, due to a variety of reasons, as outlined in the accompanying staff analysis, the assessment results indicate that an SUV would be more serviceable and appropriate to serve as the IRV. The results of the analysis have only recently become available and unfortunately, the contract model period for the SUVs has expired. The low bidder for the 2002 model apparently underbid his vehicle such that there is no profitability to sell them under the State contract. As a result, the dealer brought in no extra vehicles to accommodate end of year purchases as might be customary in a normal situation. However, it has come to our attention that as many as ten vehicles were rejected by the State (the State wanted 16 inch wheels on their vehicles — these have 15 inch wheels which meet Orange County's needs) and returned to the dealer. As of Friday, May 31, 2002, it is our understanding that nine vehicles remained available for purchase at the awarded State contract price of $21,535. These vehicles are also available for purchase by other local governments at the State contract price or to the public at market price. It is likely that the dealer will attempt to minimize as much of the impact of his unprofitable bid as possible, so it is not likely the vehicles will remain available for an extended period. While the County could bid these vehicles independently, it is not likely to obtain a better price, if in fact the vehicles are available at all from any other source. Since the model year has closed, dealers would be bidding what is on their own or other dealership lots, which may or may not be consistent with the County's specifications. It is more likely that the vehicles could not be purchased until the bid is awarded by the State for the 2003 model (award anticipated in the October - December 2002 timeframe), with actual delivery and placement of the vehicles in service several months later than that. Since,it is highly likely that the 2003 model year vehicles will be substantially higher in cost and since funds have been appropriated for this purchase in the 2001 -2011 CIP, staff is recommending that the Board take advantage of the vehicles turned back to the dealer and authorize their immediate purchase. FINANCIAL IMPACT: A maximum of nine vehicles would be purchased at a cost of $21,535 per vehicle. With additional per vehicle costs of about $2,500 to fully equip each with emergency lights, communications devices, and the like, the total cost of the purchase is estimated at $216,315. Adequate unexpended funds are available through the 2001 -02 EMS Equipment and EMS Vehicles Capital Project Ordinances to support this purchase. RECOMMENDATION(S): The Manager recommends that the board authorize the Director of Purchasing and Central Services to execute an order for 2002 Dodge Durangos as turned back