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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Randy Kuettle, Acting Director
Subject: A Resolution of the Mayor and
Common Council of the City of San
Bernardino authorizing an amendment
to an agreement and increase to an
annual purchase order with three single
year renewal options to "Y" Tires of Los
Angeles for new and recapped tires,
tubes and related repair services for City
vehicles and equipment, to be utilized
by the Fleet Division pursuant to bid
number RFQ F-09-01.
Dept: Public Services
Date March 5, 2010
Meeting Date: March 15, 2010
Synopsis of Previous Council Action
April 16, 2007 Reso 2007-126
Oct. 6, 2008 Reso 2008-392
July 6,2009 Reso 2009-194
Recommended Motion:
Annual PO with increase of $30,000
Annual PO with increase of $65,000
Annual PO three single year renewals
Adopt Resolution.
U
/ Signature
Contact person Don Johnson, Fleet Manager
Phone:
5220
. Supporting data attached: Staff report,
Resolution, Amendment, Agreement.
Ward:
All
FUNDING REQUIREMENTS:
Amount:
$30,000
Source: 635-341-5111
Material and Supplies
Finance:
Council Notes:
Agenda Item No. -l1..---
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
A Resolution of the Mayor and Common Council of the City of San Bernardino authorizing
an amendment to an agreement and increase to an annual purchase order with three
single year renewal options to "Y" Tires of Los Angeles for new and recapped tires, tubes
and related repair services for City vehicles and equipment, to be utilized by the Fleet
Division pursuant to bid number RFQ F-09-01.
Background:
The City purchases a variety of tires for use on refuse equipment, light vehicles, certified
pursuit tires for police vehicles, and road equipment. Heavy-duty truck tires may be
recapped up to eight times before the tire carcass is worn out. Recapping involves
replacing the tread face of the tire. The use of recapped tires provides cost savings over
the use of new tires.
On July 6, 2009 the Mayor and Common Council approved Resolution 2009-194
authorizing $345,000 for an annual purchase order with three single year renewals, to "Y"
Tires of Los Angeles, which had submitted the lowest price on Bid No. F-09-01.
The Public Services Department, Fleet Division staff is requesting an increase of $30,000
to the purchase order for the remainder of FY 09/10, for a total amount not to exceed
$375,000. This increase is needed due to several factors: A 28% overall increase to the
"net state pricing schedule" effective March 1, 2010. This is the discounted pricing
schedule that all Government agencies are offered by tire manufacturers for new tires and
does not affect recaps. The recaps increased by 5% due to an increase in raw material
prices and the Police Department has acquired some specialty vehicles through asset
forfeiture that call for tires not on our current bid list. Some tires have been discontinued
and the replacement tire is more expensive. Attached for review is a listing of tires used
by the City Fleet comparing the former and current prices (see attachment 2). Tire usage
for both the Police and Refuse fleets have increased from last year.
Financial Impact:
Funds are available for this increase of $30,000 in Fleet's materials and supplies
expenditure account (635-341-5111). Because the Fleet Fund operates as an "internal
service fund" all of Fleet's expenditures are charged back to city departments based on
related usage. These charges will ultimately be charged back to the Refuse Fund and
Police Department as they are directly related, so the Refuse and Police budgets will be
amended accordingly.
Account Number 635-341-5111 Budgeted Amount: $1,116.300 Balance as of March 5,
2010: $105.462 Balance after approval of this item: $75.462
Please note this balance does not indicate available funding. It does not include non-
encumbered reoccurring expenses or expenses incurred but not yet processed.
Recommendation
Adopt Resolution.
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