TITLE
Recommendation to authorize City Manager to execute all documents necessary to amend Contract No. 33049 with Daniel's Tire Service, of Santa Fe Springs, CA, and Contract No. 33048 with Suddeth Tire Co., Inc., of Long Beach, CA, for the purchase of vehicle tires, to increase the annual contract amount by $130,000, for a total aggregate annual amount not to exceed $600,000 for the period ending May 15, 2015, and for the two additional one-year optional renewal periods, for a total four-year aggregate contract amount not to exceed $2,270,000. (Citywide)
DISCUSSION
City Council approval is requested to authorize the City Manager to execute amendments to the contracts with Daniels Tire Service and Sudduth Tire Co., Inc., for the purchase of vehicle tires to support the Department of Financial Management's Fleet Services Bureau as well as the Water and Harbor Department fleets. The tire maintenance program consists of providing new tires and tire-related accessories for small, medium, heavy-duty and specialty vehicles, including safety tires for Police and Fire Department vehicles. These contracts support over 2,100 vehicles Citywide.
On May 7, 2013, the City Council awarded contracts to Daniels Tire Service and Sudduth Tire Co., Inc., in an annual amount not to exceed $470,000 for a period of two-years with the option to renew for two additional one-year periods. The additional costs can be attributed to a rise in the price of tires and unforeseen additional tire replacements in the fleet. Fleet and other City departments sharing the contracts are requesting an additional contract authority of $130,000, taking the total aggregate annual amount not to exceed $600,000. This additional purchasing authority is required for this term and is also being recommended for the remaining terms of the contracts.
This matter was reviewed by Deputy City Attorney Kendra L. Carney on March 17, 2015 and by Budget Management Officer Victoria Bell on March 24, 2015.
TIMING CONSIDERATIONS
City Council action to amend the contracts with Daniels Tire Service and Sudduth Tire Co., Inc., is requested on April 7, 2015 to ensure that tires and related accessories are available without interruption for departmental operations.
FISCAL IMPACT
Aggregate annual expenditures will not exceed $600,000, and are budgeted in the Fleet Services Fund (IS 386) in the Financial Management Department (FM), in the Harbor Fund (HR 430) in the Harbor Department (HA) and in the Water Fund (EF 130) in the Water Department (WA). Amending these contracts will provide continued support to our local economy by assisting in the preservation of six full-time employees residing in Long Beach with employment.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER