REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department BY: SZARINA LOZANO, Management Analyst II General Services Department SUBJECT ..Title Actions pertaining to the award of two Requirements Contracts for the purchase of new tires for the municipal fleet in the total aggregate amount not-to-exceed $1,000,000 per year, plus annual CPI increases (Bid File 12401402): 1. Award a Requirements Contract to Delray Tire and Retreading Inc of Fresno, California through June 5, 2025, with two optional one-year extensions 2. Award a Requirements Contract to East Bay Tire Co of Fresno, California through June 5, 2025, with two optional one-year extensions ..Body RECOMMENDATION Staff recommends Council approve the award of two Requirements Contracts for the purchase of new tires for the municipal fleet in the total aggregate amount not-to-exceed $1,000,000 per year, plus annual CPI increases (Bid File 12401402): 1. Award a Requirements Contract to Delray Tire and Retreading Inc of Fresno, California through June 5, 2025, with two optional one-year extensions 2. Award a Requirements Contract to East Bay Tire Co of Fresno, California through June 5, 2025, with two optional one-year extensions EXECUTIVE SUMMARY The General Services Department, Fleet Management Division, is recommending cooperative purchase agreements (CPA) with the local retailers of Delray Tire and Retreading Inc and East Bay Tire Co for the purchase of new tires. These contracts will allow the Fleet Management Division to continue to supply new tires for all municipal fleet vehicles and equipment. Having readily available resources is essential to the work of the Fleet Management Division to ensure that vehicles and equipment are operational. The cooperative purchase agreements will be authorized through competitively solicited cooperative procurement processes administered by the County of Fresno. Delray Tire and Retreading Inc and East Bay Tire Co were awarded a contract via County of Fresno Request for Quotation No 22-049 which went into effect on June 6, 2022. BACKGROUND The General Services Department, Fleet Management Division is responsible for maintaining 2,600 active vehicles and equipment for the City of Fresno. This includes vehicle acquisition, whole life maintenance, fueling, and end of life disposal. Fleet Management serves the City departments by providing reliable like new transportation to support their needs and service responsibilities. This is done by scheduling and performing preventative maintenance, identifying repairs, and replacing equipment in a timely manner. The Fleet Management Division is responsible for purchasing and maintaining new tires for all municipal fleet vehicles (excluding FAX buses). Tires are provided for a wide range of vehicles including sedans, light trucks, heavy duty vehicles, and construction equipment. Tires have a limited lifespan and must be replaced before performance degrades. Old road-worn tires can cause safety concerns by not providing enough traction. This can increase the risk of skidding, hydroplaning, or losing control of the vehicle, which in turn can lead to accidents and increase liability. Therefore, it is important to take precautions to reduce these risks and improve public safety. To maintain price stability and enable consistent budgeting throughout the contract term, a requirements contract for new tires is recommended. If approved by Council, the new tires will be purchased utilizing a competitively solicited cooperative purchase procurement process administered by the County of Fresno. The Fleet Management Division estimates the annual spend on new tires not-to-exceed $1,000,000, to meet the needs of all 2,600 vehicles and equipment for the City of Fresno. The City Attorney has approved the contract as to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a "project"; therefore, it is exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is not applicable because this is a cooperative purchase. However, Delray Tire and Retreading Inc and East Bay Tire Co are local businesses pursuant to FMC 4-108. FISCAL IMPACT No general funds will be used to purchase these items. The funding to cover the has been included in the FY2024 adopted budget under the operations of the Geneal Services Department, Fleet Management Division. Attachments: Delray Tire and Retreading CPA Delray Tire and Retreading Contract#P-22-193 East Bay Tire Company CPA East Bay Tire Company Contract#P-22-193 Original RFP