HomeMy WebLinkAboutItem 2h: Purchase Order Contract with Daniel's Tires for City VehiclesSUMMARY •
DISCUSSION
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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
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