| City Council Regular |
| Date: |
10/11/2021 |
| Title: |
Contract Award for MET Transit Bus Tire Mileage Lease Program |
| Presented by: |
Rusty Logan |
| Department: |
Transit |
| Presentation: |
No |
RECOMMENDATION
Staff recommends that City Council approve the Five-Year Tire Mileage Lease Contract with Goodyear Tire & Rubber Company and authorize the Mayor to execute the Contract.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
For the past 28 years, MET Transit has contracted a multi-year tire mileage lease program for tires used on the Transit bus fleet. Due to the unique size and heavy-duty construction of the intra-city radial tires, this type of tire is generally only available for lease and cannot be purchased direct. The current lease expired on August 31, 2021. MET Transit is currently exercising an optional "run out" period of six months for current inventory on hand. The new lease contract will be awarded prior to the "run out" period expiration.
Bids were solicited by advertising in the
Yellowstone County News on August 13, 20, and 27, 2021. The bid packet was also placed on the City's Website and bid packets were directly mailed to known potential vendors. Bids were received and opened on September 07, 2021 at 2:00 p.m. Historically, MET Transit has received bids from three manufacturers; however, only two bids were received from manufacturers, Bridgestone Americas Tire Operations and Goodyear Tire & Rubber Company. Bids are on a cost per mile basis and are as follows:
| |
BRIDGESTONE |
| |
YEAR 1 |
YEAR 2 |
YEAR 3 |
YEAR 4 |
YEAR 5 |
| 315/80R22.5 |
$0.005380 |
$0.005488 |
$0.005597 |
$0.005765 |
$0.005996 |
| 225/70R18.5 |
$0.005546 |
$0.005657 |
$0.005770 |
$0.005943 |
$0.006483 |
| 275/70R22.5 |
$0.005817 |
$0.005933 |
$0.006052 |
$0.006233 |
$0.006181 |
| |
GOODYEAR |
| |
YEAR 1 |
YEAR 2 |
YEAR 3 |
YEAR 4 |
YEAR 5 |
| 315/80R22.5 |
$0.005696 |
$0.005868 |
$0.006044 |
$0.006224 |
$0.006474 |
| 225/70R18.5 |
$0.005874 |
$0.006050 |
$0.006232 |
$0.006420 |
$0.006674 |
| 275/70R22.5 |
$0.004948 |
$0.005096 |
$0.005250 |
$0.005408 |
$0.005624 |
The most recent operating year data (2021) was utilized to formulate a projected budget for each proposal; the projection consists of an anticipated 435,000 vehicle miles per year for the ElDorado EZ Rider II (275/70 R22.5), 65,000 vehicle miles per year for the Gillig Low Floor (315/80 R22.5), and 100,000 vehicle miles per year for the Champions LF Transits (225/70 R18.5). These figures are all multiplied by six tires per bus, which results in a total tire mileage of 3,600,000 annually. The tire cost would predominantly be the for the 275/70 R22.5 tires, due to 17 of 25 Transit buses utilizing that tire size.
| |
GOODYEAR |
| |
YEAR 1 |
YEAR 2 |
YEAR 3 |
YEAR 4 |
YEAR 5 |
Total Projected Contract |
| 275/70 R22.5 |
$12,914.28 |
$13,300.56 |
$13,702.50 |
$14,114.88 |
$14,678.64 |
| 315/80 R22.5 |
$2,221.44 |
$2,288.52 |
$2,357.16 |
$2,427.36 |
$2,524.86 |
| 225/70 R18.5 |
$3,524.40 |
$3,630.00 |
$3,739.20 |
$3,852.00 |
$4,004.40 |
| Total per year |
$18,660.12 |
$19,219.08 |
$19,798.86 |
$20,394.24 |
$21,207.90 |
$99,280.20 |
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| |
BRIDGESTONE |
| |
YEAR 1 |
YEAR 2 |
YEAR 3 |
YEAR 4 |
YEAR 5 |
Total Projected Contract |
| 275/70 R22.5 |
$14,475.06 |
$14,764.77 |
$15,059.70 |
$15,511.23 |
$16,132.41 |
| 315/80 R22.5 |
$2,098.20 |
$2,140.32 |
$2,182.83 |
$2,248.35 |
$2,338.44 |
| 225/70 R18.5 |
$3,490.20 |
$3,559.80 |
$3,631.20 |
$3,739.80 |
$3,889.80 |
| Total per year |
$20,063.46 |
$20,464.89 |
$20,873.73 |
$21,499.38 |
$22,360.65 |
$105,262.11 |
ALTERNATIVES
City Council may:
- Approve the contract with Goodyear Tire & Rubber Company and authorize the Mayor to execute; or
- Reject all bids received and direct staff on how to proceed.
FISCAL EFFECTS
Funding for the tire mileage program has been included in the FY 22 Operating Budget and is more than adequate to cover the anticipated first year cost of $18,179.22. Updated projected costs are assessed annually during budget creation.