CONSIDERATION OF AND ACTION ON
Resolution R2026-63 Authorizing the City Manager to Execute a Conditional Letter of Intent with Frazer, LTD. to Secure Pricing for the Potential Purchase of a Bariatric Ambulance Through Anticipated Grant Funding; and Providing for an Effective Date.
The City of El Campo has been advised of an anticipated grant award totaling $576,414.40 through the Texas Health and Human Services Commission (HHSC) Rural Texas Strong Initiative 6 (Part 1): Infrastructure and Capital Investments for Rural Texas, under the Rural Health Transformation Program. The anticipated funding would provide for the purchase of a bariatric ambulance and most of the capital equipment requested by the EMS Department.
The City is still in the early stages of the award process and has not yet received the formal grant agreement. Additional information and official announcements regarding the award will be provided once the process has been finalized.
In anticipation of this funding, El Campo EMS has been working with Frazer, Ltd. on the proposed purchase of a bariatric ambulance. Frazer has provided an estimate of $291,800.00 through the HGACBuy cooperative purchasing program. However, Frazer has advised that ambulance pricing will increase effective November 1, 2026. While the exact amount of the increase is unknown, staff estimates that securing the current pricing could result in significant cost savings.
To avoid the anticipated price increase, staff has worked with Frazer on a Conditional Letter of Intent that would secure the current pricing through January 26, 2027. The letter is specifically structured to protect the City's interests while the grant award process continues. It includes provisions allowing the City to withdraw without financial penalty or obligation should the grant not be finalized, the final grant agreement not permit the purchase, or other necessary purchasing requirements or approvals not be satisfied.
Approval of this resolution would only authorize the City Manager to execute the Conditional Letter of Intent. It would not authorize the purchase of the ambulance or commit City funds. Once the formal grant agreement has been received, reviewed, and accepted, the proposed ambulance purchase will be brought back to City Council for separate consideration and approval.
Staff recommends approval of the resolution to preserve the current pricing while allowing the grant process to move forward.
Fiscal Impact - There is no fiscal impact associated with the execution of the Conditional Letter of Intent. The letter does not authorize an expenditure, require a deposit, or create a financial obligation for the City.
The proposed ambulance purchase is estimated at $291,800.00 and is anticipated to be funded through the HHSC grant. The actual purchase will be presented to City Council for separate approval once the grant agreement has been finalized.
Staff recommends approval.
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