Report No: Meeting Date:
15-113 May 13,2015
AJameda-Contra Costa Transit District
STAFF REPORT TO:
Operations Committee AC Transit Board of Directors
FROM:
Kathleen Kelly , Interim General Mahaget
SUBJECT:
Tire Mileage and leasing Contract
ACTION ITEM RECOMMENDED ACTION(S): Consider authorizing the release of a formal solicitation for a tire mileage and leasing services contract for District vehicles. EXECUTIVE SUMMARY: The current tire mileage and leasing services contract (2010-1151) will expire on December 30, 2015. The contract supports the District by furnishing tires, equlpment, and personnel for-the installation, removal, and maintenance of tires for buses. Staff intends to release the tire mileage leasing Invitation For Bid for a five year base period. The contractor wi ll be required to provide all equipment and personnel to support and maintain tires on all District revenue buses. BUDGETARY/FISCAL IMPACT: The total anticipated cost for this contract over the 5-year period is approximately $15,000,000.
BACKGROUND/RATIONALE: The District does not have equipment or personnel to Install and maintain tires for revenue buses at the District. The industry standard for maintenance of tires is to establish a leasing contract because of liability associated with tire failures. The current tire mileage and leasing cont ract will expire on December 30, 2015. This contract supports the District by providing all necessary tires, equipment and personnel to replace and maintain tires used on all revenue service buses. Staff intends to release an IFB for the tire mileage and leasing contract for a five (5) year base period. The contractor wi ll be required to provide tires, eq uipm ent and personnel and manage all t ire sei'Vices required by the District.
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Report No. 15-113 Page 2 of 2 ADVANTAGES/DISADVANTAGES: In addition to the liability risks, another advantage of a tire mileage and leasing contract is that
the selected contractor will stock the specific tires and ensure the proper equipment, personnel, related training and experienced staff are available to service and maintain the various types of tires used on District buses. There are no known disadvantages to having a tire mileage and leasing contract. ALTERNATIVES ANALYSIS:
The alternative would be in-house maintenance of the tires; however, this is not recommended due to liability from tire failures.
PRIOR RELEVANT BOARD ACTIONS/POLICIES: None.
ATIACHMENTS: None.
Executive Staff Approval:
James Pachan, Chief Operating Officer/ Interim Chief Financial Officer
Reviewed by:
Denise C. Standridge, General Counsel Jon Medwin, Purchasing Director Stuart Hoffman, Technical Service Manager
Prepared by:
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