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HomeMy WebLinkAboutItem 10h - Purchase Order for Tires and Related Services for City VehiclesPurchase Order for Tire & Related Services August 6, 2019 Page 1 of 3 DATE: August 6, 2019 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Tyler Polidori, General Services Superintendent Jacquelyn Mercado, Management Analyst SUBJECT: PURCHASE ORDER WITH DANIELS TIRE SERVICE, INC. FOR THE PURCHASE OF TIRES AND TIRE RELATED SERVICES FOR CITY VEHICLES IN AN AMOUNT NOT TO EXCEED $75,000 Recommendation: Approve SUMMARY The Public Works Services Fleet Section is responsible for purchasing and maintaining tires and accessories for all City vehicles. Using Sourcewell, a national cooperative purchasing program, enables the City to streamline the process of procuring tires and related services, while receiving the best prices possible. It is recommended that the City Council approve a Purchase Order with Daniels Tire Service, Inc. for the purchase of tires and tire related services in an amount not to exceed $75,000. DISCUSSION The Public Works Services Fleet Section (“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 of tires to prevent an interruption of day-to-day operations. Additionally, 24-hour emergency roadside tire changing services are also essential for heavy duty equipment, which require a specific expertise and specialty equipment. Last year, the PWSD Fleet Services spent approximately $59,000 on tires, related tire accessories, and provided services. A detailed purchase list of items covering every possible tire size, accessory, and related tire service was compiled to ensure that Fleet Services would have access to all items necessary for any repair that may arise. After exploring several cooperative Purchase Order for Tire & Related Services August 6, 2019 Page 2 of 3 purchasing programs, it was determined that the Sourcewell program provided the best value and efficient quality products and services that best meet the City’s needs. The California Government Code authorizes public agencies to participate in cooperative purchasing agreements such as those established by Sourcewell, while still remaining within the City’s adopted rules and procedures for purchasing. By utilizing a cooperative purchasing program, the City is able to streamline the procurement process and purchase tires and related accessories at a lower cost than traditional competitive bidding. Sourcewell awarded a master agreement to Goodyear Tire & Rubber Company (“Goodyear”) for their full line of tires and related services through November 2021, with the option to renew for one additional year. Under the master agreement Goodyear, a global tire manufacturer and distributor, has certified and authorized specific independent dealers to provide tires and tire services related to the purchase of Goodyear tires. Daniels Tire Service, Inc. is a local authorized Goodyear dealer and has satisfactorily supplied tires and tire related services to the City for over 10 years. The bidding process and Sourcewell master agreement have been reviewed by the Public Works Services Department and it has been determined to meet the Cit y’s procurement requirements. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT In order to ensure that there are acceptable quantities of tires available to Fleet Services, the quantities provided in the City’s purchase specifications are based on estimates. The City may purchase an amount less than the estimate given, according to the needs and requirements of the City. Sufficient funds are budgeted in the FY 2019- 20 Operating Budget/Vehicle Maintenance for the purchase of tires and tire related services. RECOMMENDATION It is recommended that the City Council approve a Purchase Order with Daniels Tire Service, Inc. for the purchase of tires and tire related services in an amount not to exceed $75,000. Purchase Order for Tire & Related Services August 6, 2019 Page 3 of 3 Attachment: Goodyear Sourcewell (formerly NJPA) Master Agreement