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HomeMy WebLinkAboutItem 11d - Purchase of Tires for City VehiclesPurchase Order for Tires & Related Services August 3, 2021 Page 1 of 2 DATE: August 3, 2021 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Tyler Polidori, General Services Superintendent 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 Department (“PWSD”) 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 tire 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 in daily 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, Fleet Services spent approximately $40,000 on tires, related tire accessories, and provided services. A detailed sample purchase list of items covering every required 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 purchasing programs, it was determined that Sourcewell provided the best value and efficient quality products and services to 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 Purchase Order for Tires & Related Services August 3, 2021 Page 2 of 2 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. 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 11 years. The bidding process and Sourcewell master agreement have been reviewed by the PWSD and it has been determined to meet the City’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 Fiscal Year 2021-22 Operating Budget/Vehicle Maintenance for the purchase of tires and tire related services. RECOMMENDATION It is recommended that the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); and approve a 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. Attachment: Goodyear Sourcewell (formerly NJPA) Master Agreement