HomeMy WebLinkAbout26- Public Services CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Lynn Merrill, Director Subject: Resolution authorizing an increase in the
Annual Purchase Orders to Parkhouse Tires, Inc., "Y"
Dept: Public Services Tire Sales and Viking Auto Center for new light duty
vehicle tires and recapped heavy equipment tires, and a
Date: March 27, 2000 reduction in the Annual Purchase Orders to Parkhouse
R A Tires, Inc., "Y" Tire Sales and Viking Auto Center for
Sluiii'AL new heavy equipment tires.
Council Date: April 17, 2000
Synopsis of Previous Council Action
Reso 96-343 Approved 11/04/96
97-260 09/02/97
98-104 05/04/98
98-219 07/20/98
99-73 04/09/99
99-261 10/18/99
Recommended Motion:
Adopt resolution
Lynn Merrill
Contact person: Don Johnson,Acting Fleet Manager Phone: 5220
Supporting data attached: Staff Report -Resolution Ward: All
FUNDING REQUIREMENTS:
Amount: $32,000
Source 635-341-5111
Material and Supplies
Fin ance
Council Notes:
Agenda Item No.
Viking,Parkhouse, "Y"
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
SUBJECT
Resolution authorizing an increase in the Annual Purchase Orders to Parkhouse Tires, Inc., "Y" Tire
Sales and Viking Auto Center for new light duty vehicle tires and recapped heavy equipment tires,
and a reduction in the Annual Purchase Orders to Parkhouse Tires, Inc., "Y" Tire Sales and Viking
Auto Center for new heavy equipment tires.
BACKGROUND
The City purchases a variety of tires for use on refuse equipment, light vehicles, certified tires for
Police Vehicles, and road equipment. The use of multiple vendors is necessary to insure required
tires are available to prevent dead-lining of vehicles waiting for tires on back-order from a single
vendor. On October 18, 1999, Council authorized the execution of Annual Purchase Orders for
tires as follows:
1. A purchase order "not to exceed" $60,000 for the purchase of new light vehicle tires for FY
99/00;to be supplied by Parkhouse Tires, Inc., "Y" Tires Sales and Viking Auto Center;
2. A purchase order "not to exceed" $60,000 for the purchase of new heavy equipment tires for FY
99/00;to be supplied by Viking Auto Center, "Y" Tires Sales and Parkhouse Tires, Inc.;
3. A purchase order "not to exceed" $103,000 for the purchase of recapped heavy equipment tires
for FY 99/00;to be supplied by Viking Auto Center, "Y" Tires Sales and Parkhouse Tires, Inc.
Tire usage has varied from the projections on which the initial awards were based. Thus,the Fleet
Division is requesting an increase to two of the categories listed above and a decrease to one.
Light vehicle tire usage is higher,partially due to a change in the speed rating of the certified tires
used on police vehicles. The increased speed rating allows a greater measure of safety, especially
during high speed driving, but lowers the life expectancy of the tires, resulting in a higher
replacement rate. The change in speed rating was prompted by a change in the original equipment
tires on police vehicles.
New heavy equipment tire usage has been lower,in part due to a more aggressive usage of recapped
tires.This more aggressive approach with regards to heavy vehicle re-capped tires has a higher initial
cost but will result in an overall savings in coming fiscal years.
The Fleet Division is requesting the following changes in Annual Purchase Award amounts:
Tire Category Initial Award Change Order Total Award
Light Vehicle $60,000 $25,000 $85,000
New Heavy Equipment $60,000 <$15,000> $45,000
Re-capped Heavy Equip. $103,000 $22,000 $125,000
Total $223,000 $32,000 $255,000
Viking Auto Center was recently sold and is no longer able to provide Goodyear recapped tires
specified in the original specifications, the Fleet Division is requesting that no additional purchase
orders be issued to Viking Auto Center for recapped tires.
FINANCIAL IMPACT
As an internal services department,the Fleet Division charges the actual costs for maintenance and
repair of individual vehicles assigned to each department. Funds for these purchase order increases
were added to the Fleet Division Budget by the Mid-Year Budget Amendments Fiscal Year 1999-
2000, as adopted by the Mayor and Common Council on March 20, 2000.
RECOMMENDATION
It is recommended that the Mayor and Common Council authorize the Purchasing Manager to:
1. Increase the purchase order "not to exceed" from$60,000 to $85,000 for the purchase of
new light vehicle tires to be supplied by Parkhouse Tires, Inc., "Y" Tire Sales and Viking
Auto Center.
2. Decrease the purchase order "not to exceed" from$60,000 to $45,000 for the purchase of
new heavy equipment tires, supplied by Viking Auto Center, "Y" Tire Sales and Parkhouse
Tires, Inc.
3. Increase the purchase order "not to exceed" from$103,000 to $125,000 for the purchase of
recapped heavy equipment tires to be supplied by"Y" Tire Sales and Parkhouse Tires, Inc.
1 Resolutl0
2 RESOLUTION AUTHORIZING AN INCREASE IN THE ANNUAL
PURCHASE ORDERS TO PARKHOUSE TIRES, INC., "Y" TIRE SALES AND
3 VIKING AUTO CENTER FOR NEW LIGHT DUTY VEHICLE TIRES AND
RECAPPED HEAVY EQUIPMENT TIRES,AND A REDUCTION IN THE ANNUAL
4 PURCHASE ORDERS TO PARKHOUSE TIRES; INC., "Y" TIRE SALES AND
5 VIKING AUTO CENTER FOR NEW HEAVY EQUIPMENT TIRES.
6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
7
8 SECTION 1. That Parkhouse Tire, Inc., "Y" Tire Sales and Viking Auto Center provides
9 new tires, tubes and related repair services for City light vdxdes to be utilized by the Fleet Division;
10 that the annual purchase order be increased by$25,000 to a "not to exceed" amount of$85,000.
11 Pursuant to this determination,the Finance Department is hereby authorized and directed to
12 increase the Annual Purchase Order by$25,000 to said Parkhouse Tire, "Y" Tire Sales and Viking
13 Auto Center.
14 SECTION 2. That Viking Auto Center, "Y" Tire Sales and Parkhouse Tire,Inc. provides
15
new tubes an
d related repair services for City Davy equzpmazt utilized by the Fleet Division;that
16
the annual purchase order be decreased by$15,000 to a "not to exceed" amount of$45,000.
17
18 Pursuant to this determination,the Finance Department is hereby authorized and directed to
19 decrease the Annual Purchase Order by$15,000 to said Viking Auto Center, "Y" Tires Sales and
20 Paarkhouse Tires, Inc.
21 SECTION 3. That "Y" Tire Sales and Parkhouse Tire, Inc. provides raappel tires,tubes
22 and related repair services for City heavy equipmzt utilized by the Fleet Division;that the annual
23 purchase order be increased by$22,000 to a "not to exceed" amount of$125,000. Pursuant to this
24 determination,the Finance Department is hereby authorized and directed to increase the Annual
25
26 Purchase Order by$22,000 to said "Y" Tire Sales and Parkhouse Tire, Inc.
27
April 10,2000
1 RESOLUTION AUTHORIZING AN INCREASE IN THE ANNUAL
PURCHASE ORDERS TO PARKHOUSE TIRES, INC., "Y" TIRE SALES AND 2 VIKING AUTO CENTER FOR NEW LIGHT DUTY VEHICLE TIRES AND
RECAPPED HEAVY EQUIPMENT TIRES,AND A REDUCTION IN THE ANNUAL
3 PURCHASE ORDERS TO PARKHOUSE TIRES, INC., "Y" TIRE SALES AND
VIKING AUTO CENTER FOR NEW HEAVY EQUIPMENT TIRES.
4
5 SECTION 4. The authorization to execute the above referenced is rescinded if it is not
6 issued within sixty(60) days of the passage of this resolution.
7 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
8 Common Council of the City of San Bernardino at a meeting thereof, held on
9 the day of , 2000, by the following vote,to wit:
10 Council Members: Ayes Nays Abstain Absent
11 ESTRADA
12
LIEN
13
McGINNIS
14
15 SCHNETZ
16 SUAREZ
17 ANDERSON
18 MC CAMMACK
19
20 Rachel Clark,City Clerk
City of San Bernardino
21
22 The foregoing resolution is hereby approved this day of
23 , 2000.
24 Judith Valles,Mayor
25 Approved as to form and City of San Bernardino
Legal cont t;
26 James F an,C Att n
27 BY:.
28
Apri 6,2000 2