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SR 02-23-2016 3C City Council Report City Council Meeting: February 23, 2016 Agenda Item: 3.C To: Mayor and City Council From: Martin Pastucha, Director, Public Works, Street & Fleet Services Subject: Bid Award for Purchase of Medium and Heavy Duty Tires Recommended Action Staff recommends that the City Council: 1. Award Bid #4218 to Industrial Tire Service, Inc., a California-based company for the purchase and delivery of miscellaneous medium and heavy-duty tires, new and recapped, and related services. Authorize the Purchasing Services Manager to issue a purchase order with 2. Industrial Tire Service, Inc. for the purchase and delivery of miscellaneous medium and heavy-duty tires, new and recapped, and related services in the amount not to exceed $84,105 for one year, with three additional one-year renewal options at an additional 3% increase per year, for a total not to exceed $351,864, with future year funding contingent on Council budget approval. Executive Summary The City purchases medium and heavy-duty tires, new and recapped, and related am. In November 2015, the City solicited bids for the purchase and delivery of medium and heavy-duty tires, new and recapped, and related services. Staff recommends Industrial Tire Service, Inc. as the best bidder for the purchase and delivery of miscellaneous medium and heavy-duty tires, new and recapped, and related services in the amount not to exceed $84,105 for one year, with three additional one-year renewal options at an additional 3% per year, for a total not to exceed $351,864, with future year funding contingent on Council budget approval. Discussion The City purchases medium and heavy-duty tires, new and recapped, and related These tires are used on heavy and medium duty vehicles, which include refuse collection trucks, bucket trucks, and tractors. 1 of 3 Vendor Selection In November 2015, the City published Notices Inviting Bids to furnish and deliver medium and heavy-duty tires, new and recapped, and related services, as required by the City, - line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. A total of 582 vendors were notified and 19 vendors downloaded the bid. Three bids were received and publicly opened on November 12, 2015 per Attachment A. Bids were evaluated based on the criteria in SMMC 2.24.072, including price, ability to deliver, quality of product, 24/7 emergency services, proximity to Santa Monica, and compliance with City specifications. Staff averaged the amount spent on medium and heavy-duty tires and related services over the last four years in order to compare the f 79% has been spent on materials and 21% has been spent on labor. Industrial Tire Service, Inc. provides the lowest pricing on the majority of the listed materials and, based on the 79% materials/21% labor breakdown, is the lowest and best bidder to furnish and deliver medium and heavy-duty tires, new and recapped, and related services, as required by the City, in accordance with City specifications. Financial Impacts and Budget Actions The purchase order to be awarded to Industrial Tire Service, Inc. is for an amount not to exceed $84,105. Funds are available in the FY 2015-16 budget in the Public Works Department. The purchase order will be charged to account 54459.522930. Future year 2 of 3 funding is contingent on Council budget approval. Prepared By: Heidi Duran, Administrative Analyst Approved Forwarded to Council Attachments: A. Attachment A - Bid Summary 3 of 3 BID#:4218 BIDCLOSEDATE: 11/12/15 BIDDESCRIPTION: FURNISHANDDELIVERMISCELLANEOUSMEDIUM &HEAVYDUTYTIRES(NEWANDRECAPPED) INDUSTRIALTIRESERVICEINC.PARKHOUSETIRESINCPETE'SROADSERVICE LONGBEACH,CABELLGARDENS,CAFULLERTON,CA DESCRIPTION UNITPRICEVENDORCOMMENTSUNITPRICEVENDORCOMMENTSUNITPRICEVENDORCOMMENTS Dismount&Mount $27.50/$30for425/65R22.5$30.00$24.00Laborournewtire Disposal$6.00/$7.00for425/65R22.5$10.00$10.00Truckradial Includespatchandmountand FlatRepair $33.50$30.00$26.50 dismountlabortrucktire $4.08 ValveStem $5.99$5.00 TR572brassstemAluminumstem$11.75Stemcap $75.00onetime+roundtrip RoadCallHourlyRate:NormalBusinessHours(MondayFriday) $95.00$85.00/hrmileage@$1.25p/milefrom neareststorelocation. $115.00onetime+roundtrip RoadCallHourlyRate:AfterHours(MondayFriday) $125.00$105.00/hrmileage@$1.25p/milefrom neareststorelocation. RoadCallHourlyRate:Saturdays$145.00$105.00/hrSameasafterhours RoadCallHourlyRate:Sundays/Holidays$175.00$105.00/hrSameasafterhours Pleaseindicatetheresponsetimeforemergencyservicerequests: 12hoursRespondwithin1hourto1.8hrs 1hr2hr Pleaseindicateif24/7emergencyserviceavailabilityisoffered:YesYesTiresalesandserviceonly PleasedescribeanyadditionalfeesandchargesnotindicatedintheBid*Dispatchfee$20.00 N/A$ Section:(i.e.freight,fuelsurcharges):Fuelsurcharge$10.00 N/A Unit PriceUnit PriceUnit Price Item No. / DescriptionU/M*Annual Usage 11R22.5RECAPEA194$131.76BRM$160.00$178.72 $152.50BRMseeattachment"A"forprices$218.83 315/80R22.5RECAPEA27 $67.10MMR$95.00$108.85 225/70R19.5RECAPEA23 Includesmountanddismount Seeattachment"B"forpricesNotquoted 11R22.5RP(REPAIRED)EA18$32.50+patch 11R22.5(NEW)EA7$412.49FireFS561#248307$284.16$327.85 $73.20MMR$105.00$145.88 255/70R22.5RECAPEA4 $415.00$462.00$436.47 894642(ALUMINUMWHEEL)EA1 $360.56FireFS561#248528$272.23$269.94 255/70R22.5(NEW)EA1 $692.14FireT839#294594$500.00$626.91 425/65R22.5(NEW)EA1 OtherResponseResponseResponse Accessories,methodology,training,technicalsupportandsalesassistance Bandag.Parkhousetirehasbeenalicensedbandagretreaderfor programsformthemostcomprehensiveprecureretreadingsystemavailable. precureover30years.ParkhouseTirehonorsallprintedwarrantyonthe Please state your recap process OurTuffSealcuringdevicehasbeenrecognizedasoneofthemostimportant tireswesell. technologicaladvancesfortheretreadingindustry. Manufacturer'sstandardwarrantyshallapply,allowingforproratedcredit manufacturer'swarrantyFirestone(copyenclosed) Please provide warranty terms: New Tires defectedtires.Seeseparatedocumentattached. manufacturer'swarrantyBandag(copyenclosed)Seeseparatedocumentattached Please provide warranty terms: New Recap Tires Net30daysNet30Net10th Payment terms Norenewaloptionoffered. 3%Increase First annual renewal option Seeattachment"A". Alternatetermsandconditions:openfordiscussion Norenewaloptionoffered. 3%Increase Second annual renewal option Seeattachment"A". Alternatetermsandconditions:openfordiscussion Norenewaloptionoffered. 3%Increase Third annual renewal option Seeattachment"A". Alternatetermsandconditions:openfordiscussion Norenewaloptionoffered. Norenewaloptionoffered Fourth annual renewal option Seeattachment"A". Alternatetermsandconditions:openfordiscussion IncompletecompleteIncomplete Oaks completecompletecomplete Arizona NotsubjecttoLivingWagecomplete;subjecttoLivingWagecomplete;subjecttoLivingWage Living Wage NoNoNo Is vendor physically located in Santa Monica? Does vendor physically come into the city of Santa Monica to NoYesNo conduct business and/or make deliveries?