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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 4, 2012 <br />TITLE: <br />CONTRACTS RENEWAL FOR <br />VEHICLE TIRES <br />(SPEC. NO. 11-009) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 1s` Reading <br />? Ordinance on 2"d Reading <br />? Implementing Resolution <br />? Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Renew the contracts for vehicle tires for a one-year period, in an annual aggregate amount not to <br />exceed $140,000 with the following vendors. <br />Vendor Location <br />Parkhouse Tire Inc. Santa Ana <br />Scher Tire Inc. Santa Ana <br />Tarulli Tire Inc. Santa Ana <br />DISCUSSION <br />The Facilities, Fleet Management and Central Stores Division of the Finance and Management <br />Services Agency is responsible for the repair and maintenance of City vehicles. Worn tires must <br />be replaced regularly to ensure safety and efficiency. The various City vehicles utilize a wide <br />variety of tires selected to best suit each vehicle demands and meet the manufactures' <br />recommended brand and size. The contracts provide tires for all vehicles within the fleet for <br />maximize safety and fuel efficiency. <br />On June 6, 2011, the City Council awarded three tire contracts to Santa Ana vendors for a one- <br />year period, with provisions for two one-year renewals. The vendors have performed satisfactorily <br />during the past contract period. However, the tire market has been significantly impacted by a <br />worldwide shortage of raw rubber material and escalating costs for steel and petroleum based <br />products, resulting in a five to 20 percent increase in costs for the range of tires the City requires. <br />The City holds the option to select different sizes and brands of tires per vehicle to minimize <br />climbing cost. Staff recommends the first renewal of the contract. <br />22C-1