TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Tire Mileage and Leasing Program Contract
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to exercise the remaining one-year contract option with Brannon Tire, Inc. for the Tire Mileage and Leasing Program.
Body
BUDGETARY/FISCAL IMPACT:
The total estimated cost for this one (1) year option is $3,054,734. The funding for the tire mileage and leasing services contract is included in the FY 2019-20 Operations Department budget.
BACKGROUND/RATIONALE:
The current tire mileage and leasing service contract (2016-1151) with Brannon Tire will expire on December 31, 2019. The contract term is for a three-year base period and two (2) one (1) year options. Based on the high level of service and support provided during the past four (4) years, staff recommend that the remaining one (1) year option be exercised to continue the tire mileage and leasing service with Brannon Tire.
ADVANTAGES/DISADVANTAGES:
The advantage of exercising this option is that the selected contractor will have the specific tires, equipment, personnel and experience in servicing and maintaining the various types of tires used on the District buses. There are no known disadvantages to having a tire mileage and leasing contract option.
ALTERNATIVES ANALYSIS:
There are no cost-effective alternatives to exercising a contract option for the tire mileage and leasing services. The alternative would be in-house maintenance of the tires; however, this is not recommended due to the liability. If the one-year option for this contract is not approved, the District would then need to go out for bid to solicit this tire service and possibly risk the cost of the new contract which may be higher.
PRIOR RELEVANT BOARD ACTION/POLICIES:
15-113a Tire Mileage and leasing Contract Award
ATTACHMENTS:
None
Approved by:
Salvador Llamas, Chief Operating Officer
Reviewed by:
Denise C. Standridge...
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