TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Extension of Contract for Tire Mileage and Leasing Program
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to execute a contract extension with Brannon Tire for the Tire Mileage and Leasing Program for a period of up to six (6) months, from July 1, 2026, through December 31, 2026.
Staff Contact:
Aaron Vogel, Chief Operating Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
This contract supports Safe and Secure Operations and Service Quality by ensuring consistent tire maintenance and vehicle availability through the Tire Mileage and Leasing Program with Brannon Tires. It helps minimize service disruptions, control costs, and maintain service continuity while staff completes the solicitation and award of a new agreement.
BUDGETARY/FISCAL IMPACT:
Funding for the proposed contract extension will be included in the FY 2026-27 operating budget. The extension will continue the District's tire mileage and leasing services at current contract pricing and provide cost stability for tire maintenance operations supporting the revenue fleet. The estimated cost of the six-month extension is $1,651,134.
BACKGROUND/RATIONALE:
The District does not have the equipment, specialized tools, or personnel necessary to install, service, and maintain tires for revenue buses. Due to the safety risks and liability associated with tire failures, the industry standard is to utilize a tire leasing and mileage-based service contract.
The current tire mileage and leasing services Contract No. 2020-1510 was awarded in October 2020 for a not to exceed amount of $15,783,362. The contract supports the installation, removal, inspection, and maintenance of tires across the District's revenue fleet. The contract had a five-ye...
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