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HomeMy WebLinkAbout22C - SPEC - VEHICLE TIRESREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 4, 2012 TITLE: CONTRACTS RENEWAL FOR VEHICLE TIRES (SPEC. NO. 11-009) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1s` Reading ? Ordinance on 2"d Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO FILE NUMBER Renew the contracts for vehicle tires for a one-year period, in an annual aggregate amount not to exceed $140,000 with the following vendors. Vendor Location Parkhouse Tire Inc. Santa Ana Scher Tire Inc. Santa Ana Tarulli Tire Inc. Santa Ana DISCUSSION The Facilities, Fleet Management and Central Stores Division of the Finance and Management Services Agency is responsible for the repair and maintenance of City vehicles. Worn tires must be replaced regularly to ensure safety and efficiency. The various City vehicles utilize a wide variety of tires selected to best suit each vehicle demands and meet the manufactures' recommended brand and size. The contracts provide tires for all vehicles within the fleet for maximize safety and fuel efficiency. On June 6, 2011, the City Council awarded three tire contracts to Santa Ana vendors for a one- year period, with provisions for two one-year renewals. The vendors have performed satisfactorily during the past contract period. However, the tire market has been significantly impacted by a worldwide shortage of raw rubber material and escalating costs for steel and petroleum based products, resulting in a five to 20 percent increase in costs for the range of tires the City requires. The City holds the option to select different sizes and brands of tires per vehicle to minimize climbing cost. Staff recommends the first renewal of the contract. 22C-1 Contracts Renewal for Vehicle Tires June 4, 1012 Page 2 FISCAL IMPACT Funds are available in the Maintenance & Repair - Machinery & Equipment account (no. 07510100-62322) and is charged back to the various operating departments through monthly vehicle rental charges. ?? 1-1?& -1 --?) ?L :k-- 4-- - Q Francisco Gutierrez Executive Director Finance and Management Services Agency KM 22C-2