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REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY:
JUNE 17, 2013
TITLE: APPROVED
? As Recommended
CONTRACT RENEWAL WITH ? As Amended
PARKHOUSE TIRE, INC. El Ordinance on Reading
El Ordinance on 2 Id Reading
FOR VEHICLE TIRES ? Implementing Resolution
(SPEC. NO. 11-00) ? Set Public Hearing For
CONTINUED TO
FILE NUMBER
CITY MANAGER
RECOMMENDED ACTION
Renew the contract with Parkhouse Tire, Inc. for vehicle tires for a one-year period in an amount not
to exceed $120,000.
DISCUSSION
The Facilities, Fleet Management and Central Stores Division of the Finance and Management
Services Agency is responsible for the maintenance and repair of City vehicles. Worn tires must be
replaced regularly to ensure safety and efficiency. The various City vehicles utilize a large variety of
tires selected to best suit each vehicle demands and meet the manufactures' recommended brand
and size. The contract provides tires for all vehicles within the fleet for maximum safety and fuel
efficiency.
On June 6, 2011, the City Council awarded a contract to Parkhouse Tire, Inc., a Santa Ana vendor,
for a one period, with provisions for two one-year renewals. The vendor has performed satisfactorily
during the past contract period. However, the tire market has been significantly impacted by the
worldwide shortage of raw rubber material and escalating costs for steel and petroleum based
products, resulting in a five to twenty-five percent increase in costs for the range of tires the City
requires. The City holds the option to select different brands of tires per vehicle to minimize climbing
costs. Staff recommends the second renewal of the contract.
FISCAL IMPACT
Funds are available in the Finance and Management Service Equipment Maintenance/Garage
Operation account (no. 07510100-62322) and charged back to the various operating departments
through monthly vehicle rental charges.
APPROVED AS TO FUNDS AND ACCOUNTS
A S~amz J:~, rL 'k ) Liz I
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
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