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HomeMy WebLinkAboutItem 2h: Purchase Order Contract with Daniel's Tires for City VehiclesSUMMARY • DISCUSSION Page 1 of 2 STAFF REPORT Public Works Services Department DATE: July 20, 2010 TO: Mayor and City Council FROM: Tom Tait, Public Works Services Director Prepared by: Dave McVey, General Services Superintendent SUBJECT: AUTHORIZE THE CITY MANAGER TO EXECUTE A PURCHASE ORDER CONTRACT WITH DANIELS TIRES FOR THE PURCHASE OF TIRES AND ACCESSORIES FOR CITY VEHICLES IN THE AMOUNT NOT TO EXCEED $70,000 Recommendation: Approve Fleet Services is responsible for purchasing and maintaining tires and accessories for all City vehicles. It is critical that Fleet Services maintain the proper on -hand inventory levels to prevent an interruption to those vital services. On June 15, 2010, the City Clerk opened sealed bids for the purchase of tires and accessories for City vehicles. Based on the results of the bids submitted, staff recommends that the City Council award a one (1) year purchase order contract with optional extensions to Daniels Tires in the amount not to exceed $70,000 for the purchase of tires and accessories for City vehicles. Fleet Services is responsible for purchasing and maintaining tires and accessories for all City vehicles. It is critical that Fleet Services maintain the proper on -hand inventory levels to prevent an interruption to those vital services. Most items used in conjunction with tire maintenance are considered a revolving inventory item, and must be replenished to continue a smooth day to day operation of various vehicles in the City's fleet. A specific list of items, covering every possible tire and related accessory for City vehicle use were listed in the bid to ensure that Fleet Services is able to provide these supplies for any repair that may arise. Since bidders were asked to provide the unit cost associated for each possible item that may or may not be needed for maintenance and /or repairs, the actual contract cost will be lower. Also, the amount recommended Mayor and City Council July 20, 2010 for award is based on the average actual maintenance and repair expenditures experienced over the last several years and as result, the actual contract cost will be significantly less than the bid submitted by Daniels Tires. Notices inviting bids were published in the adjudicated paper and bid packages were distributed to area contractors. On June 15, 2010, two (2) vendors submitted sealed bids to the City Clerk with the following results: Bidder Location Amount Daniels Tires Santa Fe Springs, CA $141,417.79 Y Tires Sales, Inc. Los Angeles, CA $155,458.98 Muro Tires & Service Irwindale, CA No response Parkhouse Tire, Inc. Bell Gardens, CA No response Staff contacted the other vendors to find out why they did not submit a bid. The main reason given was that the vendor could not guarantee to hold their prices for one year due to volatility of petroleum based products. Staff has reviewed the bid documents submitted and concluded that Daniels Tires is the lowest, most responsive /responsible bidder. Therefore, staff recommends that the City Council authorize the City Manager to execute a one (1) year purchase order contract with optional extensions to Daniels Tires in an amount not to exceed $70,000 for the purchase of tires and accessories for City vehicles. FISCAL IMPACT Sufficient funding is available in the 2010 -11 operating budget to cover the costs of these supplies. RECOMMENDATION 1. Authorize the City Manager to execute a purchase order contract with Daniels Tires for the purchase of tires and accessories for City vehicles in the amount not to exceed $70,000 2. Waive any informalities in the bid or bidding process 3. Authorize the City Manager and City Clerk to execute a contract in a form approved by the City Attorney TT:DM Approved by: �� — t— onald Penman, City Manager Page 2 of 2