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SR 12-13-2022 5O City Council Report City Council Meeting: December 13, 2022 Agenda Item: 5.O 1 of 3 To: Mayor and City Council From: Danny Alvarez, Fire Chief, Fire Department Subject: Approval of Fourth Modification to Agreement with Kovatch Mobile Equipment Corporation to Purchase One Fire Engine Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a fourth modification to agreement #10409 in the amount of $405,227 with Kovatch Mobile Equipment (KME) Corporation for the purchase of a fire engine for the Fire Department. This will result in a seven-year amended agreement with a new total amount not to exceed $6,771,740 with future year funding contingent on Council budget approval. Summary The Santa Monica Fire Department (“SMFD”) responds to approximately 17,000 calls for service annually, including responding to fire, medical, and other emergencies. The Department currently responds from five stations utilizing seven front-line engines, one staffed aerial ladder truck, one Hazardous Materials Unit, one Urban Search and Rescue Unit, two Aircraft Rescue Firefighting Units, and one Battalion Chief Command Vehicle. This purchase would replace one Type 1 Fire Engine for Station 7 that has reached the end of its useful life. Staff recommends modifying a contract with KME to take advantage of previous pricing and vehicle specifications. KME has agreed to honor the pricing and terms and conditions of the original contract. Funding for this Type 1 Fire Engine has been included in the Fiscal Year 2022-23 Adopted Capital Improvement Budget. 5.O Packet Pg. 366 2 of 3 Discussion The Santa Monica Fire Department is charged with providing fire suppression, rescue and emergency medical services to its residents and visitors 24 hours a day / 365 days a year. This is currently achieved from five fire stations with a daily staffing of thirty-five first responders. The Department replaced four front-line engines in late 2019 and has two additional engines under build with delivery expected in 2023. This engine will complete the recent replacement of all front-line engines to ensure operational standardization. An engine typically serves ten years in front-line status and then moves to reserve status for another ten years. After their twenty years of service or at the point of exceeding their useful life, the old engines are sold at auction or donated. The front-line engine fleet of seven is supplemented with five reserve engines ranging in age from 1994 to 2010. With the purchase of this engine, the oldest 1994 engine will be removed from the fleet. It is imperative to have suitable front-line apparatus to perform day-to-day response but just as important is a reserve fleet of apparatus to replace front-line apparatus in the event of scheduled preventative maintenance, equipment failure, or strike-team deployment. Based on the Fire Department’s apparatus replacement analysis, experience and national standards, every effort is made to acquire and maintain the most reliable, functional, and efficient apparatus that meets both the current and predicted needs of the Fire Department. Reliability of the front line and reserve fire apparatus is mission critical. The typical build time for an engine is twelve to eighteen months, with supply chain and labor shortages, the new engine will have an extended build time of up to twenty months. This delay will require an extension to the total contract to seven years, with no additional renewals or extensions. Environmental Review This is not a project for the purpose of the California Environmental Quality Act. Past Council Actions and Contract Modifications Meeting Date Description 01/10/2017 (Attachment A) Original bid and award of agreement with KME for the purchase of up to 2 aerial ladder trucks and five fire engines. 5.O Packet Pg. 367 3 of 3 Modification Date Description Did not require Council Action Modification Dated 09/25/2018 (Attachment B) First modification to agreement with KME to provide additional manufacturing time for the delivery of four engines and one ladder truck Did not require Council Action Modification Dated 11/07/2018 (Attachment C) Second modification to agreement with KME to increase the per unit cost of the apparatus. The agreement was amended due to an update in the communications equipment technology and associated costs and to increase the manufacturing time. Did not require Council Action Modification Dated 10/29/2021 (Attachment D) Third modification to agreement with KME to purchase two additional engines. The agreement was also amended due to an increase cost of materials, an update in the communications equipment, and to add an optional warranty. Financial Impacts and Budget Actions Staff seeks authority to approve available funding from the General Fund to increase the amount of contract with KME for the delivery of one Type 1 fire engine. Contract Modification Request Agreement # Current Authorized Amount FY 2022-23 Increased Contract Amount CIP Account # Total Revised Contract Amount 10409 $6,366,513 $405,227 C0104560.689000 $6,771,740 Prepared By: Terese Toomey, Principal Administrative Analyst Approved Forwarded to Council Attachments: A. KME OAKS INITIATIVE FORM 5.O Packet Pg. 368 5.O.a Packet Pg. 369 Attachment: KME OAKS INITIATIVE FORM (5487 : Fourth Modification with Kovatch Mobile Equipment Corporation to purchase one Fire