SR-01-22-2013-3KCity Council Meeting: January 22, 20//13
Agenda Item: ,3 L
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Bid Award for the Purchase and Delivery of Miscellaneous Tires
Recommended Action
Staff recommends that the City Council:
1. Approve a modification to purchase order 21037 -OF with Tarulli Tire Inc., a
California -based company, in the amount of $13,842 for the period of July 1,
2012, through January 21, 2013, for the purchase of miscellaneous tires until
formal Bid #F4026 is awarded.
2. Award Bid #F4026 to Parkhouse Tire Inc., a California -based company, for the
purchase and delivery of miscellaneous tires in the amount of $94,000 for the
period of January 22, 2013, through June 30, 2013, with two one -year options to
renew, not to exceed $145,000 in each of the renewal years, for a total not -to-
exceed amount of $384,000 over a three -year period, with future funding
contingent on Council approval.
Executive Summary
The Fleet Management Division utilizes a variety of new, recapped, and repaired tires to
replace worn and damaged tires on all City vehicles maintained by staff. An interim
purchase order was issued to Tarulli Tire for tire purchases until a formal bid could be
conducted. Staff recommends a modification to the existing purchase order with Tarulli
Tire Inc., the current supplier of miscellaneous tires, in the amount of $13,842 for tire
purchases during the first half of FY 2012 -13. The total amount of tire purchases from
Tarulli Tire over the last two years has exceeded $100,000 for which Council approval is
now required.
In August 2012, the City solicited bids for the purchase and deliver of miscellaneous
tires. After reviewing the two bids received, staff recommends Parkhouse Tire Inc. as
the best bidder to provide miscellaneous tires for a total not to exceed amount of
$384,000 over a three -year period.
1
Discussion
The Fleet Management Division purchases miscellaneous tires including new,
recapped, and repaired tires to replace worn and damaged tires and ensure the safe
operability of all City vehicles maintained by the Division. These tires are used on
heavy and medium duty vehicles, which include refuse collection trucks, bucket trucks,
and tractors. An initial interim purchase order was created with Tarulli Tire for tire
purchases until a bid could be initiated.
Vendor Selection
In August 2012, the City published Notices Inviting Bids to furnish and deliver
miscellaneous tires as required by Fleet Management. The bid was posted on the
City's online bidding site and notices were advertised in the Santa Monica Daily Press in
accordance with City Charter and Municipal Code provisions. Two bids were received
and publicly opened on September 17, 2012, per Attachment A. Bids were evaluated
on price, product availability, and compliance with City specifications. Parkhouse Tire
offered the lowest pricing for all new tires and recapped tires. Its prices for the
installation of new tires were higher than Tarulli Tire's; however, Parkhouse Tire's
overall cost for purchase and installation was lower than Tarulli Tire's when compared in
a package with new tire pricing. Additionally, Tarulli Tire did not bid on all specified tires
and Parkhouse is the only bidder that could provide the full range of tires as required by
Fleet Management. Parkhouse has provided tires to the City in the past with
satisfactory results. Based on these criteria, Parkhouse Tire Inc. is recommended as
the best bidder for the purchase of miscellaneous tires in accordance with City
specifications.
2
Financial Impacts & Budget Actions
The purchase order modification to be awarded to Tarulli Tire is $13,842 for the period
of July 1, 2012, through January 21, 2013. The purchase order to be awarded to
Parkhouse Tire Inc, is $94,000 for the period of January 22, 2013, through June 30,
2013. Funds are included in the FY2012 -13 budget in division 54459. The purchase
orders will be charged to the following accounts:
54459.522930 $ 89,550
54459.522920 $ 18,292
TOTAL $ 107,842
Additionally, the contract would include two one -year options to renew, not to exceed
$145,000 in each of the renewal years, for a total not to exceed amount of $384,000
over a three -year period. Renewal year funding is contingent on Council budget
approval.
Prepared by: Rick Sikes, Fleet Maintenance Superintendent
Approved: Forwarded to Council:
Martin Pastucha Rod Gould
Director of Public Works City Manager
Attachment: A — Bid Summary
'Cl
Attachment A -Bid Summary
BID NO.: F4026
CLOSING DATE: 9/17/12
DESCRIPTION: FURNISH AND DELIVER MISCELLANEOUS TIRES (NEW AND RECAPPED) AS REQUIRED BY FLEET MANAGEMENT
Parkhouse Tire
< Bell Gardens, CA
Tarulli Tire, Inc.
: Santa Ana, CA
ITEM
DESCRIPTION
U/M
'UNIT PRICE
°UNIT PRICE
1
Dismount & Mount
SVC
$28.00
$8.00
2
Disposal
SVC
$10.00
$8.00
3
Flat Repair
SVC
$30.00
-
4
Valve Stem
SVC
$3.50 Brass Stem /$7.50 Aluminum
$6.95
NEW TIRES
5
10 -16.5 NHS
EA
$149.41
-
6
11L -16 (FARM IMPLEMENT)
EA
$187.61
-
7
16.9 -24 (FARM IMPLEMENT)
EA
$677.09
-
8
24.5 -32 (FARM IMPLEMENT)
EA
$1,973.95
-
9
14- 17.5NHS
EA
$503.47
-
10
255/70R22.5
EA
$290.00
$350.21
11
11R22.5
EA
$316.96
$421.02
12
315/SOR22.5
EA
$465.00
$622.16
13
225/70R19.5
JEA
1 $258.001
$297.37
REPAIRED TIRES':.
14
255/70R22.5
EA
$5,001
$11.43
15
11R22.5
EA
$17.00
$11.43
16
315/80R22.5
EA
$17.00
$11.43
17
225/70R19.5
EA
$5.00
$11.43
RECAPPED TIRES:
18
255/70R22.5
EA
$138.55
$148.49
19
11R22.5
EA
$159.33
$165.99
20
315/80R22.5
EA
*See bid attachment
*See below
21
225/70R19.5
EA
$92.66
-
22
YEAR 2 RENEWAL INCREASE
Increase per WSCA
Increase per mfg increase
23
YEAR 3 RENEWAL INCREASE
Increase per WSCA
Increase per mfg increase
24
PAYMENTTERMS
NET 30 DAYS
NET 30 DAYS
25
VENDOR COMMENTS
m
*Vendor included comments on documents
attached totheirbid submittal.
*Bandag BRM 250 $201.43; Bandag BRM 270
$211.54; Bandag BRM 280 $218.75; The items
without a price were left blank by vendor.
Parkhouse Tire, Inc. 9/17/2012
City of Santa Monica
C. �1
ATTACHMENT "A"
As required on Addenmun # 1 for bid # F4026, Parkhouse Tire is submitting the
varied prices for the different tread widths to retread the tire size, 315/80R22,5
(Ref: page 22)
Our bid prices for the multiple tread widths are as follows:
315/801122.5 Bandag BRM tread:
Width: 240.....$177.84
250.....$184.98
260.....$191.75
270.....$196.83
280.....$206.37
Also, regarding the renewal options for period 2 and 3, (ref: page 23),please note
the following:
The tire prices bid are based upon the "Current" Western States Contracting
Alliance (WSCA) prices. Each year,these are prices and discounts that are
negotiated directly from each tire manufacturer with the State of Utah.