Cities Index.
25-1303 Michelin Cost Proposal

Fresno City Council
October 16, 2025

Document
25-1303 Michelin Cost Proposal
Meeting
October 16, 2025
Body
Fresno City Council
Original file
121 KB
Text extracted from the city's file for reading and search. Open the original on legistar2.granicus.com. That file is the official record.

Item Tire Rate Per Mile Annual Cost
1 $0.00805 $65,422.35
2 $0.00931 $241,287.27
$25,610.25
Item Fixed Price Per Month Annual Cost
3 $16,490.00 $197,880.00
$530,199.87
Item Tire Rate Per Mile Annual Cost
1 $0.00825 $65,579.25
2 $0.00954 $253,811.70
$26,669.14
Item Fixed Price Per Month Annual Cost
3 $16,900.00 $202,800.00
$548,860.09
Item Tire Rate Per Mile Annual Cost
1 $0.00846 $70,835.58
2 $0.00978 $261,126.00
$27,718.79
Item Fixed Price Per Month Annual Cost
3 $17,325.00 $207,900.00
$567,580.37
Item Radial Tires Total Cost
1 305-70R-22.5 $201,837.18
2 305-85R-22.5 $756,224.97
$79,998.19
3 Services/labor $608,580.00
$1,646,640.34
Sales tax (currently at 8.35%)
Services/labor 12 Months
Year Three Total:

The above amount includes all applicable taxes.

Sales tax (currently at 8.35%)
The City will pay for only those items which it actually delivered or received during the term of the Contract.

The City reserves the right to reject any and all proposals.

TOTALS
Services Charges for Tables A - C
Total Amount of Cost Proposal:

Proposer's Name: Michelin North America, Inc.
12 Months
305-85R-22.5 26,700,000
Description Time Frame
COST PROPOSAL FOR RFP NO. 12502217
The Contract shall be in effect for three (3) years with two (2) one-year optional extensions from the date of the Notice to Proceed.

The Contract may be extended in accordance with the provisions set forth in the Special Conditions of these Specifications.

Having carefully examined the Request for Proposals (RFP), attachments, and related documents, the undersigned proposes and agrees to provide to the City of Fresno, in accordance with the Specifications annexed hereto and made a part thereof, the following items and services delivered F.O.B. Destination, Freight Prepaid & Allowed, to the jobsite(s) as specified in the Special Conditions of the RFP specifications, at the following rates:

A. Year One
B. Year Two
Sales tax (currently at 8.35%)
305-70R-22.5 7,949,000
Description Time Frame
Services/labor 12 Months
Year One Total:

Radial Tire Lease Estimated Tire Miles
305-70R-22.5 8,127,000
305-85R-22.5 25,917,000
Year Two Total:

C. Year Three
Radial Tire Lease Estimated Tire Miles
Radial Tire Lease Estimated Tire Miles
305-70R-22.5 8,373,000
305-85R-22.5 26,605,000
Description Time Frame
Services/labor
Sales tax (currently at 8.35%)
Original Retread
$39.06 $16.00
$41.07 $16.00
Initials DO

QUANTITIES FOR PROPOSAL BIDDING PURPOSES
The quantities listed above on the proposal page(s) are annual estimates, shown for proposal bidding purposes only. The actual requirements of the City may be more or less than the quantities specified and may vary from year to year. The City will report and pay for all vehicle tire miles actually operated during the term of the Contract. The City will pay for loss and abuse of tires per page 69, Section 10, Abuse of Tires. The City will pay for leased or purchased tires at the end of the Contract per page 48, End-of- Contract Provisions.

The minimum total tire mileage which may be applied to the lease rate under this contract shall be 175 million over the life of the contract, including both possible extensions.

The maximum total tire mileage which may be applied to the lease rate under this contract shall be 225 million over the life of the contract, including both possible extensions.

When tires are lost, stolen or damaged per page 69, Section 10, Abuse of Tires, or purchased per the End of-Contract Provisions on page 48, mileage shall be prorated by determining the number of 32nds of an inch of tread depth remaining multiplied by the following cost per 32nds of tread depth listed below:

Radial Tire
305-70R-22.5
305-85R-22.5
When a tire is not available for inspection the above formula will be applied. FAX shall not reimburse the Supplier in excess of fifty percent (50%) of the current value of a similar tire, unless the Supplier can provide an accounting of the tire’s accurate mileage prior to the loss.

COMPLETION OF COST PROPOSAL FORM TO BE ELIGIBLE FOR AWARD Proposers must bid on all items within a section. A Proposer is non-responsive in the event the Proposer fails to initial this paragraph on the line provided and completely fill in the Cost Proposal Form including, without limitation, all dollar amounts, and information called for on this Cost Proposal Form. By his/her initials to the right hereof, the Proposer represents he/she has read and understands the consequences of not completely filling in this Cost Proposal Form.

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