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SR-205-003 (632) f) .- ~ City of Santa Moniea@ City Council Report City Council Meeting: July 11,2006_ Agenda Item: ~. ' To: From: Subject: Mayor and City Council Steve Stark, Chief Financial Officer Award of Bid for Tires Recommended Action Award Bid# 2897 to Tarulli Tire Inc. to provide miscellaneous tires as required by the Fleet Management Division. Executive Summary Award bid to provide miscellaneous tires as required by the Fleet Management Division to Tarulli Tire Inc. at specified unit prices, in an estimated amount of $160,000 annually. The bid award is for a one-year period beginning July 2006 with two additional one-year renewal options at prices subject to manufacturer price increases. The total estimated expenditure for the three-year term is $480,000. Discussion Background The City's fleet vehicles require replacement tires as part of the routine maintenance managed by the Fleet Management Division. The vendor will provide new or recapped 1 tires as tires wear out or are damaged. Recapped tires are used when appropriate in order to reduce the use of natural resources and are usually less costly. Vendor Selection In October 2005, the City published Notices Inviting Bids to provide miscellaneous tires as required by the Fleet Management Division in accordance with City requirements. Bid packets were mailed to twenty-five vendors and notices were advertised in accordance with City Charter and Municipal Code provisions. Two bids were received and publicly opened and read on April 26, 2006. Bids were evaluated based on competitive pricing and volume of estimated usage for each tire type, per Attachment 1. Based upon these criteria, staff recommends Tarulli Tire Inc. as the best bidder. 2 BudgetlFinanciallmpact Fiscal Year 06/07 budget authority in the amount of $160,000 is available at account 54461.522930, "Vehicles - Tiresffubes." Budget authority for subsequent years will be included in each annual proposed City budget. Prepared by: Diane Howell, Purchasing Agent. Attachments: Attachment 1 - Pricing Approved: Forwarded to Council: ~-t~- Stile Stark Chief Financial Officer 41il 3 ATTACHMENT 1 11 R22.5 1 (highway treads) $174.37 $210.00 11 R22.5 2 (lug treads) $178.95 $225.00 11 R22.5 Recap 3 (highway treads) $141.41 $137.00 11 R22.5 Recap 4 (lug treads) $141.41 $139.00 12R22.5 5 (highway treads) $198.04 $260.00 12R22.5 6 (lug treads) $200.85 $300.00 12R22.5 Recap 7 (highway treads) $144.97 $144.00 12R22.5 Recap 8 (lug treads) $144.97 $146.00 315/80R22.5 9 $228.24 $295.00 315/80R22.5 Recap 10 (certified for front axles) $160.43 $169.00 10R20 11 $176.17 $235.00 L T215/85R16 12 $65.18 $67.67 L T245/75R16 13 $82.00 $67.00 P155/80R13 14 $28.72 $34.89 L T235/75R15 15 $63.65 $67.22 P195/80R16 16 (Electric Vehicle tire - Toyota Rav) $127.00 $84.16