Consent 1.A.1.
Regular City Council Meeting
- Meeting Date:
- 08/08/2011
- TITLE
- Contract Award for MET Transit Bus Tire Mileage Lease Program
- PRESENTED BY:
- Thomas H. Binford
- Department:
- Transit
Presentation:
PROBLEM/ISSUE STATEMENT
For the past eighteen (18) years MET Transit has participated in multi-year tire mileage leases for tires on its Transit bus fleet. Due to the unique size and heavy-duty sidewall construction of the intra-city transit radial tires, this type of tire can only be leased and is not available for purchase.
The current lease expired June 30, 2011. The MET exercised an optional "run out" period for six months. The new lease will be in place prior to the expiration of the "run out" period. Bids were solicited by placing ads in the local paper, on the City's Web site, and mailing bid packets to three national vendors. Bids were received on Tuesday, July 26, 2011. The following represents the three price proposals received:
The current lease expired June 30, 2011. The MET exercised an optional "run out" period for six months. The new lease will be in place prior to the expiration of the "run out" period. Bids were solicited by placing ads in the local paper, on the City's Web site, and mailing bid packets to three national vendors. Bids were received on Tuesday, July 26, 2011. The following represents the three price proposals received:
| VENDOR | FY 12 | FY 13 | FY 14 | FY 15 | FY 16 |
| Goodyear Tire & Rubber Company | .006874 | .007355 | .007870 | .008421 | .009010 |
| Michelin North America | .009660 | .010630 | .011690 | .012860 | .014150 |
| Bridgestone Americas Tire Operations | .005977 | .006276 | .006589 | .006919 | .007265 |
The following formula is utilized to convert these rates into projected budgeted details. This formula consists of projected 650,000 bus miles per year, times six tires per bus, for a total fleet mileage of 3,900,000. By applying the formula, the following bid totals are identified:
| VENDOR | FY 12 | FY 13 | FY 14 | FY 15 | FY 16 |
| Goodyear Tire & Rubber Company | $26,809 | $28,684 | $30,693 | $32,842 | $35,139 |
| Michelin North America | $37,674 | $41,457 | $45,591 | $50,154 | $55,185 |
| Bridgestone Americas Tire Operations | $23,310 | $24,476 | $25,697 | $26,984 | $28,333 |
ALTERNATIVES ANALYZED
The City Council may:
- Approve the lease for the MET Transit bus tires; or
- Not approve a lease and reject all bids.
FINANCIAL IMPACT
Funding for the tire mileage lease has been included in the FY 12 Operating Budget.
RECOMMENDATION
Staff recommends that Council approve the five (5) year tire mileage lease with the lowest bidder, Bridgestone Americas Tire Operations, LLC and authorize the Mayor to execute the Contract.
APPROVED BY CITY ADMINISTRATOR
Attachments
No file(s) attached.