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CC - CONSENT ITEM: Approval of a Two-Year Agreement with Bridgestone for the Lease of Transit Bus Tires in an Amount Not-to-Exceed $290,161.08 ($105,513.12 Base Proposal Plus $158,269.68 for Three Optional Years and $26,378.28 in Contingency Authority).
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Meeting Date: July 10, 2023
Contact Person/Dept.: Allison Cohen/Transportation
Phone Number: 310-253-6543
Fiscal Impact: Yes [X] No [ ] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Commission Action Required: Yes [ ] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (07/06/2023)
Department Approval: Diana Chang, Chief Transportation Officer (06/28/2023)
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RECOMMENDATION
Staff recommends the City Council approve a two-year agreement with Bridgestone Americas Tire Operation, LLC for the lease of transit bus tires in an amount not-to-exceed $290,161.08 ($105,513.12 base proposal plus $158,269.68 for three optional years and $26,378.28 in contingency authority).
BACKGROUND/DISCUSSION
The City of Culver City's transit bus fleet consists of 54 buses, all of which have six tires each. These tires are highly specialized for use on heavy duty buses in urban environments and require proper maintenance and service on a regular basis. It has been a long-standing practice for the City of Culver City to contract bus tire leasing.
Based on mileage rates and tire costs, it continues to be more cost effective and efficient for the City to lease transit bus tires rather than purchase them. Moreover, a lease agreement greatly reduces the risk of potential tire disposal-related fines and product liability issues. Contracting bus tire leasing is a standard practice in the transit industry. The City's existing tire lease contract with Michelin North America, Inc. is set to expire on July 31, 2023.
On April 18, 2023, the City released a Request for Proposal (RFP #2338). Proposals were due by May 4, 2023, and a total of three responsive proposals were received. Proposals were received from the following firms:
• Bridgestone Americas Tire Operation, LLC
• Michelin North America, Inc.
• The Goodyear Tire and Rubber Company
An evaluation committee comprised of Culver City staff reviewed all proposals submitted in response to the solicitation. The committee evaluated each proposal based on several criteria including qualifications and experience, response to the scope of services requested, proposed fees, and references. Based on staff’s evaluation of the proposers’ experience, ability, and overall value to the City of Culver City for this project, staff recommends awarding an agreement to Bridgestone Americas Tire Operation, LLC as the best qualified firm for the City’s transit bus tire lease program.
Bridgestone has the requisite qualifications and experience to perform the scope of services outlined in the RFP. The tires leased under this contract will be supplied directly to the Culver City Transportation Department for use on all revenue buses and Bridgestone will maintain a sufficient supply of tires to guarantee continuity of services, as well as provide routine inspections and disposal of tires. Bridgestone will also furnish all supplies such as wheel weights, valve stems and caps, repair materials, and mounting lubricant, as well as provide all tools and equipment needed by Transportation staff for the repair, removal, and replacement of leased tires. Bridgestone is under contract with several public transit agencies in California and across the country and has performed similar services for Municipality of Metropolitan Seattle, Sacramento Regional Transit District, Omnitrans, and Orange County Transportation Authority.
FISCAL ANALYSIS
Funds for the leasing of tires for transit buses are included in the Adopted Budget for Fiscal Year 2023-2024 in CIP Account No. 2038000.730100.PB006 (Municipal Bus Fund - CityBus Tire Lease). Funding for future years of the agreement will be included in future fiscal year budgets.
Summary total of anticipated expenses under these terms are as follows:
Base Proposal (Years 1-2): $105,513.12
Option (Years 3-5): $158,269.68
10% Contingency: $26,378.28
Total Contract Not-To-Exceed: $290,161.08
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve a two-year agreement with Bridgestone Americas Tire Operation, LLC for the Lease of Transit Bus Tires in an amount not-to-exceed $105,513.12; and,
2. Authorize the City Manager to approve three additional one-year options in an amount not-to-exceed $158,269.68; and,
3. Authorize to the City Manager to approve amendment(s) to the agreement for unanticipated costs up to a contingency amount not-to-exceed $26,378.28; and,
4. Authorize the City Attorney to review/prepare the necessary documents; and,
5. Authorize the City Manager to execute such documents on behalf of the City.