DATE: May 20, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Fire Department
TITLE: APPROVAL OF A CHANGE ORDER NO. 2 TO THE EMERGENCY MEDICAL OXYGEN SUPPLY
RECOMMENDATION
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Staff recommends that the City Council approve Change Order No. 2, in the amount of $35,000, to the purchase order with Matheson Tri-Gas Inc. for the Emergency Medical Oxygen Supplies, for a total contract amount of $145,000; and authorize the Financial Services Director, or designee, to execute the change order.
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BACKGROUND AND ANALYSIS
On June 18, 2025, the City Council approved a purchase order in the amount of $100,000 with Matheson Tri-Gas Inc, to provide medical oxygen supplies for Fire Department operations. These supplies are essential for emergency medical response, including patient care, resuscitation, and life support services.
On March 31, 2026, Change Order No. 1 was approved in the amount of $10,000.
Since the initial and subsequent approvals, the Fire Department has experienced higher-than-anticipated usage of oxygen due to increased call volume, extended patient care incidents, and the need to maintain adequate inventory levels to ensure uninterrupted emergency response services. Additionally, fluctuations in pricing and supply chain conditions have contributed to increased costs.
To ensure continuity of operations and avoid any disruption in the availability of medical oxygen, staff is requesting Change Order No. 2 in the amount of $35,000. This increase will bring the total purchase order amount to $145,000 and will support ongoing operational needs through the remainder of the fiscal year.
The continued use of Matheson Tri-Gas, Inc. under this purchase order is recommended to maintain service continuity, ensure compliance with medical-grade oxygen standards, and avoid any disruption during the remainder of the fiscal year.
Upon completion of the current purchase order, the Fire Department anticipates transitioning to Airgas USA, LLC for future medical oxygen supply services. This transition is supported by an evaluation of vendor pricing and service levels, which identified a more cost-effective option while continuing to meet operational requirements and ensuring best value to the City.
FISCAL IMPACT
The total amount of Change Order No. 2 is $35,000 and will be charged to the AB 1705 Medical Emergency Transport account 550566101.5355.0008. The available balance in the AB 1705 Medical Emergency Transport Maintenance and Operations account is $535,870; therefore, sufficient funds are available.
|
Description |
Account Number |
Amount |
Available Balance |
|
Change Order #2 |
550566101.5355 |
$35,000 |
$535,870 |
COMMISSION OR COMMITTEE REPORT
The Police and Fire Commission will receive an update at its regular meeting on June 9, 2026.
CITY ATTORNEY’S ANALYSIS
Purchases shall be made in accordance with Chapter 28A and Administrative Directive AD-21.
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Prepared by: Alicia Mendoza, Senior Management Analyst
Reviewed by: David Parsons, Fire Chief
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Original Purchase Order
2. Change Order No. 1