City staff and a consultant will spend the next six months soliciting, reviewing and negotiating a contract for a possible new fire and emergency services provider.
City staff and a consultant will spend the next six months soliciting, reviewing and negotiating a contract for a possible new fire and emergency services provider.
The council Wednesday unanimously approved a “request for proposals” to seek the fire and EMS contractor that is best able to meet the city’s needs while reducing its current costs.
The city’s goal is to save money on its current contract with the Santa Clara County Central Fire District, while ensuring the level of service remains the same as it is now and that all the services in the city limits are provided by just one contractor.
That could be a tall order, and it might require an innovative approach that differs from traditional models of providing emergency services, Councilman Larry Carr said.
“The first challenge is to do it much more cost efficiently than we’re doing it today,” Carr said. “In my mind that means a different model.”
It’s up to whoever responds to the RFP – whether it’s the county, Calfire, a neighboring city or a private provider – to illustrate what that new model might look like when they submit proposals, according to city staff.
The RFP was distributed for response Thursday, and all area service providers could be eligible to respond, according to community services director Steve Rymer. The deadline for responses is March 9, 2012, and the council will review qualified responses received after that, and possibly make a decision on a new provider and begin negotiations in early April 2012.
The city currently contracts with CFD for the services, which cost the city $5.2 million this year. The current five-year contract expires in 2013.
The council hopes to shave at least $500,000 per year of the current cost of services, and directed staff to produce the RFP in October. The city hired the consultant Ralph Anderson & Associates to assist with the search for a fire services provider, at a cost of $34,935. The RFP was drafted by city staff and the consultant.
At the same time, the city hired an appraiser to determine the fair market values of two stations in town that are owned by the CFD. One of the stations is on Old Monterey Road and the other on Monterey Road near the intersection of Hill Road. If the council selects a new contractor, the city will likely have to purchase those stations.
While CFD provides services in the city limits, the South County Fire District (contracting with Calfire) serves unincorporated areas surrounding Morgan Hill and Gilroy, and the city of Gilroy has its own fire department.
In selecting a provider from those who respond to the RFP, a review panel made up of Rymer and other city staff members will weigh their choice by price (35 percent), service level (35 percent), experience and qualifications (20 percent), and the applicant’s responsiveness to the RFP (10 percent).
At the suggestion of Morgan Hill resident and planning commission member Joe Mueller, the city added a provision to 10-page RFP that requests that a new contractor be able to provide technical assistance on land use planning, in consideration of the city’s plans to redevelop key properties it owns.
After the council selects the best submitted proposal, they will begin negotiating with that provider for a contract. A new contract will also require council approval.
