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HomeMy WebLinkAbout _ 4.11(c)--Award of Bid Schedule 5692 to Furnish New Tires, Tire Recaps, Tire Repairs and Tire Dispo GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: June 16,2026 FROM: Michael Webb, Assistant City ITEM NO. 4.11(c) Manager/Public Works Director ***APPROVED BY*** �� � 3,�� �.nu„ ���� � � � � � �� s � ,,�� � 5� � �� �� �� �,��,� � � � =µ 1" irel'We, .. v: aty Vf� a�et Rubliu\ c*rA�.;�Uectetcrr f���?02G �}F������'�1'�3(JX �,�ti"�'��.��23a3�TG"I �,. �f������.7 mwebb@cityofredding.org wtarbox@cityofredding.gov SUBJECT: 4.11(c)--Award of Bid Sched�ule 5692 to Furnish New Tires, Tire Recaps, Tire Repairs and Tire Dis osal Recommendation Authorize and approve the following actions relative to Bid Schedule No. 5692, Furnishing New Tires, Tire Recaps, Tire Repairs, and Tire Disposal Services: (1) Award to Tehama Tire Service, the only responder, for the period of June 3, 2026, through May 31, 2027, for the purchase and service of tires, as needed, for City of Redding fleet; (2) Authorize the Purchasing Officer to execute a blanket purchase agreement with Tehama Tire Service for a not-to-exceed amount of$700,000 per one-year contract period; (3) Authorize the City Manager, or designee, to approve future pricing adjustments, and changes in terms, as needed, up to an additional $70,000 per one-year contract period; (4) Authorize the Purchasing Office to extend the contract, if mutually agreeable, for up to two consecutive one-year periods through May 31, 2029; and (5) Ratify the extension of the previous contract with Tehama Tire through June 30, 2026. Fiscal Impact The Fleet Department, an Internal Service Fund, has adequate funding within its approved 2025/26 and 2026/27 Fiscal Year budgets and there is no negative impact of executing this agreement There is no negative impact to the Fleet Department's budget (2025/26 and 2026/27 Fiscal Years) by way of executing the recommended blanked purchase agreement. For Fiscal Year 2024/25 Fleet Funds for purchasing tires and associated services are budgeted through the City of Redding's (City) biennial budget process through its Fleet iVt�aintenance Division. The cost for providing tires and related services are captured through departmental allocations to Fleet. The estimates for this new con�ract period are in line with previous expenditures. Therefore, the Fleet Department has adequate funding within its approved 2025/26 and 2026/27 Fiscal Year budgets and there is no negative impact of executing this agre�ment. Report to Redding City Council June 12,2026 Re: 4.11(c)--Award of Bid Schedule 5692 to Furnish New Tires, Tire Recaps, Tire Repairs and Tire Dispo Page 2 Alternative Action The City Council may choose to not award to Tehama Tire Services Inc. and provide alternative direction. Background/Analysis As part of the maintenance for City vehicles and equipment, the City requires a supply of tires and associated services. The City owns a wide variety of equipment and vehicles including mowers, police vehicles, fire trucks, solid waste collection vehicles and large earth-moving equipment. The associated services include repairs, frequent onsite inspections of heavy truck tires, and tire disposal. In addition, the vendor is required to brand the tires with a unique bar code that provides information about the vehicle on which the tire is installed, the vehicle mileage at the time of installation, tire location on the vehicle, and the tire type and size. This information is used for the vendor inventory management and reporting system to provide the Fleet Manager with a monthly report on tires used on the City's heavy-duty vehicles. For reference purposes, the previous total annual eval�uated price was $341,570.50 for labor, recapping and tire disposal. In fiscal year 2024-25 actual expenditures totaled $755,571.21 ($251,212.82 for labor, recapping and tire disposal and $504,358.39 in tire purchases). Current expenditures, for the period of July 1, 2025 thru May 14, 2026, are at $583,530.45 ($234,145.01 for labor,recapping and tire disposal, and$349,385.44 in tire purchases). The most recent contract for purchasing tires and performing related services expired on May 31, 2026. To establish a new contract to maintain the City's fleet, a solicitation for bids was distributed on April 3, 2026. The notice inviting bids sent to five suppliers, advertised in the local newspaper and posted on the City's website. As a result of a tire performance study conducted on City vehicles, staff specified Michelin tires and Bandag recaps due to their demonstrated longer wear, particularly on solid waste collection vehicles, lasting more than twice the mileage of the other brand tires. The City received one bid from Tehama Tire Service, Inc. with a total annual evaluated price of $351,142.46 for labor, recapping and tire disposal. City staff required additional time to review the budget for Fleet maintenance and to ensure awarding to Tehama Tire was the best value for the City's needs. Tehama Tire agreed to hold pricing from the previously awarded contract through June 30, 2026, to allow for additional review and Council approval. The pricing of new tires is determined by cooperative agreements that were competitively bid such as Sourcewell, and the National Association of State Procurement Officials (NASPO) ValuePoint agreements, and the governmental pricing list for Continental Tires. Due to the wide variety of tires purchased, the annual evaluated price does not include the cost of purchasing new tires. Expenditures for tire purchases have averaged $426,872 per year during the previous two fiscal years. Environmental Review This is not a project as defined under the California Environmental Quality Act, and no further action is required. Council Prio�ity/City Manager Goals � This agenda item is a routine operational item. Report to Redding City Council June 12,2026 Re: 4.11(c)--Award of Bid Schedule 5692 to Furnish New Tires, Tire Recaps, Tire Repairs and Tire Dispo Page 3 Attachments Bid Tabulation w � pp v � p � rn � m C W W � � m D � '� D � � � � C z � G} m �D o O O p Z U) G TI v = v-, "o � w � -�n D �I m Z iv � o � -a 7D � o m � m Rt -a � � K O n � � O A � N 'i c W 0 m °a m � I.n � 0 � � � � N �I Z O � o r � o -� � N � m W O o � G C� N � n A � � � � O � C � � m � � N � G �" D � r � C � � � m =�• W w � � cn � .P --I (n � W v o tD P o � D � N ^�I tS9 r �y. � O .P CQ 4� � o