REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement with M T Tire Service
Report
BACKGROUND
The Public Works Department maintains approximately seven hundred and seventy five vehicles and pieces of operational equipment. The department utilizes a contractor to assist the Fleet Management Division in providing tire inspections, repairs, replacements, swapping, mounting/dismounting, and emergency services for the City’s fleet.
Proactive inspection of tires increases vehicle safety, fuel mileage, tire life cycle and emissions. The tire service agreement (Attachment 1) will enable the department to maintain tires in safe working condition to maximize tire life and ensure the safety of vehicles.
DISCUSSION
A Request for Proposal (RFP) selection process was utilized to solicit proposals for the tire services. The RFP was open for three weeks with proposals due on May 11, 2018. Two proposals were submitted and the qualifications of the proposers were evaluated by staff. The Tire Service Cost Proposal (Attachment 2) provides more detail about the proposals.
M T Tire Service provided the lowest cost proposal to the City while complying with the requirements set in the agreement. MT Tire Service’s experience, knowledge of the industry and thoroughness of their proposal showed that they are the most qualified firm to perform under this agreement. Staff is recommending approval of a three-year agreement with M T Tire Service. The recommended value of the agreement with the contractor is based on historical data and projected work load. The not-to-exceed value of the contract is based on the projected value of work over a three-year period.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a government organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The amount to be paid to the contractor for tire services over the three-year term of this agreement shall not exceed $120,000 subject to annual appropriations. The funding for this contract was included in the FY 2018/19 Annual Operating Budget.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve and authorize the City Manager to execute an Agreement for tire services with M T Tire Service for an amount not-to-exceed $120,000 over a three-year term subject to annual appropriations; and
2. Authorize the City Manager to make minor modifications to the Agreement, if necessary.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Agreement
2. Tire Services - Cost Proposals