SR 05-09-2023 5E
City Council
Report
City Council Meeting: May 9, 2023
Agenda Item: 5.E
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To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Transit Maintenance
Subject: Award Bid for Heavy-Duty Tire Rental for Big Blue Bus Vehicles to
Bridgestone Americas Tire Operations
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption (Class 1 Existing Facilities) pursuant to
Section 15301 of the California Environmental Quality Act (CEQA) Guidelines;
2. Award Bid #4446 to Bridgestone Americas Tire Operations, LLC to provi de
leased tires for use on the Santa Monica Department of Transportation’s fleet of
transit buses; and
3. Authorize the City Manager to negotiate and execute an agreement with
Bridgestone, in an amount not to exceed $2,271,343, including a $206,486
contingency, and a 3% annual cost escalator, over a five-year period with future
year funding contingent on Council budget approval.
Summary
Big Blue Bus, a division of the Santa Monica Department of Transportation (DOT),
operates 195 transit buses with six to ten tires on each bus. DOT transit buses run
approximately 4.5 million miles across 69 square miles of Santa Monica and western
Los Angeles. This heavy use subjects the bus tires to significant wear, and regular
replacements of transit bus tires ensure buses can continue to operate safely. With a
tire leasing service, new tires are available at all times and necessary repairs or
replacements can be made in a timely manner.
Staff recommends that Bid #4446 be awarded to Bridgestone for tire leasing and
replacement services for DOT transit buses for a five-year period in an amount not to
exceed $2,271,343.
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Discussion
DOT is committed to providing safe, reliable transit buses for its customers and
maintenance of bus tires is a critical aspect of its bus maintenan ce program. Normal
wear occurs to transit bus tires which are constantly in use. Tire leasing has been a
standard practice in the transit industry since the 1940s and a common practice at DOT
for the last 50 years. Leasing tires is more economical than purchasing them as DOT is
charged on a per-mile basis rather than purchasing individual tires. The service ensures
that new tires are always available and that any necessary repairs can be made quickly
to minimize disruptions to DOT’s service. The new agreement with Bridgestone would
provide leased tire inventory, including spare stock for tire replacements, and two full -
time on-site attendants who perform inspections, tire repair, and replacement.
DOT has historically contracted out its tire leasing service for its fleet of transit buses in
accordance with the guidance set forth in the “Contracted and As-Needed Staffing
Review Policy, Practice, Recommendations” report approved by Council on January 13,
2015. DOT contracts this work due to the need for specialized equipment needed to
repair and replace tires, and the need for workforce flexibility to require a large pool of
employees to serve as back-ups to cover any callouts.
Under the agreement, Bridgestone would provide all equipment and materials needed
to provide replacement tires saving the City costs associated with the purchase and
storage of equipment. In addition to the cost savings, the nature of the tire replacement
service requires a large employee pool that would provide service day and night to
ensure that buses are available for service.
Vendor Selection
Bidder Recommendation
Best Bidder Bridgestone Americas Tire Operations, LLC
Evaluation Criteria Price: the ability, capacity, and skill of bidder to provide transit
bus tire leasing, repair, and replacement, and experience
Municipal Code SMMC 2.24.180
Submittals Received
Bridgestone Americas Tire Operations LLC $ 2,271,343
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Bid Data
Date Posted Posted On
Advertised In (City Charter
& SMMC)
Vendors
Downloaded
Date
Publicly
Opened
2/15/2023
City's Online
Bidding Site Santa Monica Daily Press 6 3/16/2023
Bidder Justification
Bids were evaluated based on the criteria in SMMC 2.24.180 including price, ability to
provide service, experience, and capacity to provide reliable service. Bridgestone has
experience providing transit bus tire leasing, repair, and replacement services to peer
transit agencies and is the lowest cost bidder.
Environmental Review
The project is categorically exempt from CEQA pursuant to Section 15301 of the CEQA
Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA,
which include the operation, repair, maintenance, permitting, leasing, licensing, or mi nor
alteration of existing public or private structures, facilities, mechanical equipment, or
topographical features, involving negligible or no expansion of existing or former
use. The contract award would address the maintenance responsibilities of
existing transit buses, and therefore, it has been determined that the project
is categorically exempt pursuant to Section 15301 of the CEQA Guidelines.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Big Blue Bus Fund to award
a contract with Bridgestone Americas Tire Operations for transit bus tire leasing
services.
Contract Request
FY2023-24 Budget
Request Amount
Future Years
Amount
Department Account # Total Contract
Amount
$388,925 $1,882,418 C6004750.689000 $2,271,343
Michelin North America $ 3,121,582
Daniels Tire Service $ 5,240,824
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Future year funding is contingent on Council budget approval.
Prepared By: David Nanjo, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Bridgestone Oaks
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CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative s requirements. You may obtain a full copy of the Initiative s
text from the City Clerk.
This information is required by City Charter Article XXII Taxpayer Protection. It
prohibits a public official from receiving, and a person or entity from conferring, specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a public benefit to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a public benefit include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a public benefit. If the public benefit is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a public benefit covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
5.E.a
Packet Pg. 408 Attachment: Bridgestone Oaks (5680 : Award Bid for Heavy-Duty Bus Tire Rental)
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a public benefit. If the public benefit is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax abatement, exception, or benefit of a value in excess of $5,000 in any 12-
month period; or
7. Payment of cash or speci of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
5.E.a
Packet Pg. 409 Attachment: Bridgestone Oaks (5680 : Award Bid for Heavy-Duty Bus Tire Rental)
BRIDGESTONE AMERICAS TIRE OPERATIONS, LLC
MANAGERS AND OFFICERS
Officers
Paolo Ferrari Chief Executive Officer, Chief Operating Officer and President
Scott Damon Chief Operating Officer
Christopher Nicastro Executive Vice President, Chief Legal Officer, Chief Compliance Officer,
and Chief Risk Officer
Amanda Mathis Chief Financial Officer and Executive Vice President
Gabriel Asbun Group President, Americas Tire Business
Craig Schneider Chief Strategy Officer
Nizar Trigui Chief Technology Officer and Group President, Solutions Businesses
Jason Fisher Chief Human Resources Officer
Riccardo Cichi President, Core Tire and Chief Sales Officer, North America
Charles Rule President, Bridgestone Americas Tire Operations, Latin America
Philip Dobbs Chief Marketing Officer and Executive Vice President
Barry Owens Senior Vice President, Manufacturing
Jill Suwanski Secretary
Jose M. Anes Senior Vice President, Corporate Treasurer
Patrick Callahan Vice President, Tax
Anna Gedman Vice President, Business HR and Labor Relations
Marshall Kelley Chief Accounting Officer
Chris Lasko Chief Quality Officer
Taren Rodabaugh Chief Information Officer
Bridget Neal Vice President
Shannon Quinn Vice President
Chris Ripani Vice President
Thomas Kingsbury Chief Counsel, Intellectual Property
John Mugnano Chief Counsel, Litigation
Brittain Settle Tax Officer
Mark Loftis Tax Officer
Kerry Cantrell Assistant Secretary
Caroline Creson Assistant Secretary
Norma Davis Assistant Secretary
Brendan Thompson Assistant Secretary
Kathleen Davies Assistant Treasurer
Saiju Khatiwada Assistant Treasurer
Leandro Rossetti Assistant Treasurer
5.E.a
Packet Pg. 410 Attachment: Bridgestone Oaks (5680 : Award Bid for Heavy-Duty Bus Tire Rental)