SR 06-26-2018 3K
City Council
Report
City Council Meeting: June 26, 2018
Agenda Item: 3.K
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Street & Fleet Services
Subject: Bid Award for the Purchase of Medium- and Heavy-Duty Tires
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4349 to Daniels Tire Service, a California-based company, for the
purchase and delivery of miscellaneous new and recapped medium- and heavy-
duty tires, and related services; and
2. Authorize the City Manager to negotiate and execute an agreement with Daniels
Tire Service in an amount not to exceed $172,500 (including a 15% contingency)
for one year, with four additional one-year renewal options in the amount of
$690,000, at an additional increase, based on the consumer price index, per
year, for a total amount not to exceed $862,500 over a five-year period, with
future year funding contingent on Council budget approval.
Executive Summary
The City purchases new and recapped medium- and heavy-duty tires, including tires for
refuse collection trucks, aerial bucket trucks, and tractors, and related services as part
of the City’s Tire Replacement Program. An average of 375 new and recapped tires are
used on the inventory of 132 medium- and heavy-duty rated vehicles annually, and in
the last year, 73 road service calls were responded to. Staff recommends awarding a
purchase order to Daniels Tire Service for a total not to exceed $862,500 over a five-
year period.
Discussion
Medium- and heavy-duty tires are purchased as part of the Tire Replacement Program,
for use on medium- and heavy-duty vehicles, including refuse collection trucks, aerial
bucket trucks, and tractors. The current agreement for these services with Industrial Tire
Service, Inc. was approved by Council on February 23, 2016 (Attachment A). However,
staff did not execute further renewal options since the vendor did not meet living wage
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standards. The bid that staff is recommending for approval calls for the purchase of
Goodyear brand tires in an effort to standardize the inventory of tires used on these
types of vehicles. The related tire services staff is requesting would include road call
service, flat tire repair work, mounting and dismounting of tires, and tire disposal
service. The 15% contingency is requested to cover the anticipated consumer price
index increases in future years, as well as fluctuations in tire wear and requested
services due to tire failure that occur from year to year.
Vendor Selection
On March 26, 2018, the City published Notices Inviting Bids to furnish and deliver new
and recapped medium- and heavy-duty tires, and related services in accordance with
City specifications. 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. Nineteen vendors downloaded the bid. Four bids were
received and publicly opened on April 12, 2018.
Submitted Bids:
Byron Woodley Tire Co. $26,633.68
Parkhouse Tire, Inc. $62,291.05
Daniels Tire Service $65,182.95
Industrial Tire Service, Inc. $72,070.27
Bids were evaluated based on the criteria in SMMC 2.24.072, including price, ability to
deliver, quality of product, and compliance with City specifications. Of the four bids,
Byron Woodley Tire Co. did not bid on recapped tires or on related services and were
considered non-responsive. Parkhouse Tire, Inc. did not bid on the tire brand requested
in the bid and were considered non-responsive. Staff averaged the amount spent on
medium- and heavy-duty tires and related services since the last bid was awarded in
February 2016 to compare the bidders’ material and labor pricing. Staff has spent an
average of 80% on materials, and 20% on service. Daniels Tire Service is not the
lowest bidder, but offered lower pricing on a majority of the listed materials, which offset
the higher cost of their roadside service and bid on the requested tire brand. Based on
these criteria, Daniels Tire Service is recommended as the best bidder.
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Financial Impacts and Budget Actions
The agreement to be awarded to Daniels Tire Service is for an amount not to exceed
$862,500. Funds of $172,500 are available in the proposed FY 2018-19 budget in the
Public Works Department. The agreement will be charged to account
54459.522930/70500001.529010. Future year funding is contingent on Council budget
approval.
Prepared By: Ryan Kraemer, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. February 23, 2016 Staff Report
B. Daniel's Tire Service Oaks Form
REFERENCE:
Agreement No. 10706
(CCS)