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SR 05-09-2023 5E City Council Report City Council Meeting: May 9, 2023 Agenda Item: 5.E 1 of 4 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. 5.E Packet Pg. 404 2 of 4 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 5.E Packet Pg. 405 3 of 4 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 5.E Packet Pg. 406 4 of 4 Future year funding is contingent on Council budget approval. Prepared By: David Nanjo, Administrative Analyst Approved Forwarded to Council Attachments: A. Bridgestone Oaks 5.E Packet Pg. 407 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)