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CC - Approval of a Three-Year Agreement with Michelin North America Inc. for the Lease of Transit Bus Tires in an Amount Not-to-Exceed $439,280 ($236,913.54 Base Amount Plus $181,747.20 for Two One-Year Options and $33,493.26 in Contingency Authority)
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Meeting Date: April 23, 2018
Contact Person/Dept: Paul Condran/Transportation
Phone Number: (310) 253-6520
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (04/18/18);
Department Approval: Art Ida (04/11/18)
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RECOMMENDATION
Staff recommends the City Council approve a three-year agreement with Michelin North America, Inc. in an amount-not-to-exceed $439,280 ($236,913.54 base amount plus $181,747.20 for two one-year options and $33,493.26 in contingency authority) for lease of tires for the City's transit bus fleet.
BACKGROUND/DISCUSSION
The City of Culver City's transit bus fleet consists of 56 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. Leasing bus tires saves the Transportation Department an estimated $80,000 per year over purchasing tires.
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. Most public transit agencies throughout the nation contract tire leas...
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