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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 17, 2013 <br />TITLE: <br />CONTRACT RENEWAL WITH <br />PARKHOUSE TIRE, INC. <br />FOR VEHICLE TIRES <br />(SPEC. NO. 11 -00 ) <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2 I Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />Renew the contract with Parkhouse Tire, Inc. for vehicle tires for a one -year period in an amount not <br />to exceed $120,000. <br />DISCUSSION <br />The Facilities, Fleet Management and Central Stores Division of the Finance and Management <br />Services Agency is responsible for the maintenance and repair of City vehicles. Worn tires must be <br />replaced regularly to ensure safety and efficiency. The various City vehicles utilize a large variety of <br />tires selected to best suit each vehicle demands and meet the manufactures' recommended brand <br />and size. The contract provides tires for all vehicles within the fleet for maximum safety and fuel <br />efficiency. <br />On June 6, 2011, the City Council awarded a contract to Parkhouse Tire, Inc., a Santa Ana vendor, <br />for a one period, with provisions for two one -year renewals. The vendor has performed satisfactorily <br />during the past contract period. However, the tire market has been significantly impacted by the <br />worldwide shortage of raw rubber material and escalating costs for steel and petroleum based <br />products, resulting in a five to twenty -five percent increase in costs for the range of tires the City <br />requires. The City holds the option to select different brands of tires per vehicle to minimize climbing <br />costs. Staff recommends the second renewal of the contract. <br />FISCAL IMPACT <br />Funds are available in the Finance and Management Service Equipment Maintenance /Garage <br />Operation account (no. 07510100 - 62322) and charged back to the various operating departments <br />through monthly vehicle rental charges. <br />APPROVED AS TO FUNDS AND ACCOUNTS <br />A S�amz �' L" 2 'k ) Liz <br />Francisco Gutierrez <br />Executive Director <br />Finance and Management Services Agency <br />22A -1 <br />