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HomeMy WebLinkAboutStaff Report 3332 City of Palo Alto (ID # 3332) City Council Staff Report Report Type: Consent Calendar Meeting Date: 12/3/2012 City of Palo Alto Page 1 Summary Title: Approval of purchase and funds of EKG Monitors for Fire Department Title: Adoption of a Budget Amendment Ordinance and Approval of a Purchase Order with American Medical Response in an Amount Not to Exceed $524,000 for ALS EKG Monitors for the Fire Department (CIP FD- 12000) From: City Manager Lead Department: Fire Recommendation 1. Adopt the attached Budget Amendment Ordinance (BAO) in the amount of $180,000 for the ALS EKG Replacement Project (FD-12000). 2. Approve and authorize the City Manager or his designee to execute a purchase order with American Medical Response (AMR) in an amount not to exceed $540,000 for the purchase of 18 EKG Monitors with extended warranties (ALS EKG Monitor Replacement Project: FD-12000). Executive Summary In fiscal years 2012 and 2013, the Council appropriated a total of $360,000 for CIP project FD-12000, Advanced Life Support (ALS) EKG Monitor Replacement. The five- year capital plan for fiscal years 2013 through 2017 included an additional $180,000 planned for fiscal year 2014. The current available balance is $360,000. At this time the city has the opportunity to purchase all 18 monitors through American City of Palo Alto Page 2 Medical Response for a substantial discount, if purchased in a single order. A budget amendment to include all 3 years of the CIP dollars ($540,000), and approval of a purchase order for the monitors is necessary in order to maximize the discount and cost savings to the City. Background ALS EKG monitors are a critical piece of equipment used by paramedics every day in Palo Alto. This life-saving and operationally necessary equipment allows paramedics to deliver the highest levels of advanced life support to the community. The measurable outcomes are increased paramedic efficiency; enhanced diagnosis and treatment capabilities, and in lives saved from cardiac conditions. The Palo Alto Fire Department currently uses Philip MRX monitors. These monitors are 7 years old and are not compatible with some of the newer technology the Department currently uses. Specifically, the Philip monitors do not transmit data to patient care reports. The data capture and transmission is important for medical documentation and cost-recovery insurance billing. The Department conducted extensive testing of different EKG monitors for compatibility with the City’s needs and worked closely with the medical community to evaluate their effectiveness. Based on the results of those trials, the Department recommends the purchase of Physio brand monitors which represent the best combination of functionality and ease of use. AMR realizes a national pricing discount for Physio Control equipment that is not available directly to the City of Palo Alto through the local savings. Resource Impact The City currently has a CIP for the purchase of ALS EKG Monitors (FD-12000) for $180,000 per year for three years; this project was initially funded in FY 2012 and has a current balance of $360,000. Staff is requesting that FY 2014 proposed funding ($180,000) be made available at this time so that the City can acquire this equipment at a substantial discount. The Fire Department received a quote from AMR totaling $524,000 for the 18 EKG Monitors. Total funding of $540,000 is intended to cover the purchase of the monitors, and contingency of $16,000 for associated supplies needed that were not included in the original quote. City of Palo Alto Page 3 CIP project FD-12000 is funded by an operating transfer from the General Fund. As a result of the BAO, the Budget Stabilization Reserve will decrease to $27,361,289. If the City does not purchase by December 31, 2012 the price to purchase all 18 monitors will increase by over $250,000. The net price of the monitors will also be reduced by a partial reimbursement from Stanford University. Currently Stanford pays for 25% of all capital project costs through the Fire Services Agreement, which would result in a credit to the City of approximately $131,000. Attachments: Attachment A: Budget Amendment Ordinance (PDF) Attachment B - Physio Sole Source Letter (PDF) ORDINANCE NO.xxxx ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2013 TO PROVIDE AN APPROPRIATION OF $180,000 TO CAPITAL IMPROVEMENT PROGRAM PROJECT NUMBER FD-12000, ALS EKG MONITOR REPLACEMENT The Council of the City of Palo Alto does ordain as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 18, 2012 did adopt a budget for fiscal year 2013; and B. In fiscal years 2012 and 2013, the Council appropriated a total of $360,000 for CIP project FD-12000, Advanced Life Support (ALS) EKG Monitor Replacement, to replace current monitors located on fire vehicles to meet equipment changes mandated by the Santa Clara County Emergency Medical Services Agency; and C. The five-year capital plan for fiscal years 2013 through 2017 included an additional $180,000 for CIP FD-12000 in fiscal year 2014; and D. The projected cost to replace all 18 monitors over a three-year period has risen to $750,000. The City has the opportunity to purchase and replace all 18 of its monitors in a single order for $524,000 through American Medical Response. In order to leverage the discount, the purchase must be completed by December 31, 2012. An additional $16,000 is needed for contingency and any unforeseen charges; and E. An additional appropriation of $180,000 for CIP FD- 12000 is needed in fiscal year 2013. Accordingly, the proposed appropriation of $180,000 for fiscal year 2014 will be removed; and F. CIP FD-12000 is funded by an operating transfer from the General Fund. The General Fund is subsequently reimbursed by Stanford University for 25 percent of all fire-related capital project costs through the Fire Services Agreement; and H. City Council authorization is needed to amend the 2013 budget as hereinafter set forth. SECTION 2. The sum of One Hundred Eighty Thousand Dollars ($180,000) is hereby appropriated to CIP Project FD-12000, ALS EKG Monitor Replacement. SECTION 3. The General Fund Budget Stabilization Reserve is hereby decreased by the sum of One Hundred Eighty Thousand Dollars ($180,000). As a result of this change, the Budget Stabilization Reserve will decrease to $27,361,289. SECTION 4. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 5. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 6. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: ______________________________ ________________________________ City Clerk Mayor APPROVED AS TO FORM: ________________________________ City Manager ________________________________ Senior Assistant City Attorney ____________________________________ Director of Administrative Services