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HomeMy WebLinkAboutItem 2g: Contract Extension with Daniels Tire Service for Tires and Related Services for City Vehicles of ARC Irk Iu 747 n Au�u # r S, 19Y! C' j ' 'nnicy ofd STAFF REPORT Public Works Services Department DATE: May 17, 2011 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 ONE (1) YEAR PURCHASE ORDER CONTRACT EXTENSION WITH DANIELS TIRE SERVICE FOR THE PURCHASE OF TIRES AND TIRE RELATED SERVICES FOR CITY VEHICLES IN THE AMOUNT NOT TO EXCEED $70,000 Recommendation: Approve SUMMARY On July 20, 2010, the City Council approved a one (1) year purchase order agreement with optional contract extensions to Daniels Tire Service for the purchase of tires and related tire services for City vehicles. Daniels Tire Service is reaching the end of their contract term and has submitted a written offer to extend the existing contract for an additional one (1) year in accordance with the existing agreement. The contractor's offer of extension does not reflect a change in price and all other conditions of the agreement are to remain in effect. Therefore, staff recommends that the City Council award a one (1) year purchase order contract extension to Daniels Tire Service in the amount not to exceed $70,000 for the purchase and delivery of tires and related tire services, which includes roadside assistance for emergency tire change and repair. DISCUSSION The Public Works Services Fleet Section 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, tire changing services are essential in cases when Public Works Fleet Mechanics are not available or not equipped to handle the size of tire change for some heavy duty equipment. Page 1 of 2 Mayor and City Council May 17, 2011 During 2010, the Public Works Services Fleet Section purchased two hundred fifty six (256) tires from Daniels Tire Service and had them properly dispose of one hundred ninety six (196) used tires which were no longer operable. Last year staff conducted a formal bid process for the purchase of tires and related tire services for City vehicles. On July 20, 2010, Daniels Tire Service was awarded the contract with optional annual extensions. A specific list of items covering every possible tire and related accessory for City vehicle use were listed in the bid specifications to ensure that under the purchase agreement Fleet Services will have access to all items necessary for any repairs that may arise. Daniels Tire Service is reaching the end of their contract term and has submitted a written offer to extend the existing contract for an additional one (1) year in accordance with the existing agreement. This extension will be the first contract extension. The contractor's offer of extension does not reflect a change in price and all other conditions of the agreement are to remain in effect. Therefore, staff recommends that the City Council authorize the City Manager to execute a one (1) year purchase order contract extension for the purchase of tires and related tire services for City vehicles in an amount not to exceed $70,000 FISCAL IMPACT Sufficient funds are budgeted in the 2011 -12 Operating Budget for this contract. RECOMMENDATION 1. Award a one (1) year purchase order contract extension to Daniels Tire Service for the purchase of tires and related tire services for City vehicles in the amount not to exceed $70,000. 2. Authorize the City Manager and City Clerk to execute a contract in a form approved by the City Attorney. Approved by: �1]b,•e- =pi�e�•...�.�� Donald Penman, City Manager TT: D M Page 2of2