City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01395 8/12/2025
Cooperative Purchase Agreement: Fleet Tires and Tire Services [Published for 10-day Review on 07/31/2025]
File ID: 2025-01395
Location: Citywide
Recommendation: Pass a Motion: 1) approving the use of National Association of State Procurement Officials (NASPO) cooperative purchase agreement with Southern Tire Mart (NASPO Master Agreement 24158) for the purchase of tires and tire repair services in a total amount not to exceed $6,000,000 to cover the initial term through August 11, 2026, and optional extensions through August 11, 2030; and 2) authorizing the Interim City Manager or designee to execute the purchase specified above provided that sufficient funds are available in the budget adopted for the applicable fiscal year.
Contact: Stacey Chatman, Program Specialist, (916) 808-6711, [email protected]; Alison Kerstetter, Fleet Manager, (916) 808-1163, [email protected]; Department of Public Works
Presenter: None
Attachments:
1-Description/Analysis
2-Contract
Description/Analysis
The Department of Public Works, Fleet Management Division, oversees the maintenance of all City fleet assets which requires the procurement and maintenance of tires and related services for vehicles used by various City departments. To ensure consistent and continuous services contracts are required to secure replacement tires and comprehensive tire-related services such as retreading, mounting, dismounting, and balancing. Additionally, the division coordinates emergency roadside tire services to ensure the uninterrupted operation of the City’s fleet, supporting various departmental functions. This contract is essential for maintaining the safety, reliability, and operational status of all City vehicles, from service trucks to emergency response vehicles.
File ID: 2025-01395 8/12/2025
Policy Considerations: The recommendations in this report are in accordance with City Code Section 4.04.020, Procurement Policy Section 11.A.2 and Council Rules of Procedure, Chapter 7, Section E.2.d, which mandate that unless waived by two-thirds vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to the City Council action. The use of a cooperative purchasing agreement is an exception to competitive bidding requirements. (City Code Section 3.56.240). This item was published for 10-day review on July 31, 2025, in compliance with the City Code.
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase of parts and services are not considered to be a project in accordance with Section 15378(b)(2) of the guidelines.
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation:
The Department of Public Works, Fleet Management Division, oversees the procurement and maintenance of tires for vehicles used by various City departments. This includes securing contracts for replacement tires and comprehensive tire-related services such as re-treading, mounting, dismounting, and balancing. The recommended cooperative purchase agreement will be used to provide on-site repair services as needed as well as provide tire inventory to the City as needed to service fleet vehicles and equipment.
When evaluating the best practice for a new contract for tires and related services the following options were considered and evaluated:
1. Continue with past practice of leveraging Sacramento County’s contract.
2. Go out to bid.
3. Have National Automotive Parts Association Integrated Business Solutions (NAPA-IBS) purchase tires and procure services on behalf of the City.
4. Find other cooperative opportunities to leverage.
Each option is viable, but the evaluation considered what would be the most cost effective and efficient option for the City to be mindful of costs departments incur for fleet maintenance and repair.
Option 1 would be utilizing the current vendor that the City has been contracted with and the County recently re-awarded services to. Upon evaluating performance of the contractor, pricing, inventory maintenance and other services offered it was deemed that it would be better to move away from this option. The contractor is not always able to offer inventory needed and is not always able to be
File ID: 2025-01395 8/12/2025
responsive to certain needs. Prices leveraged are based solely upon NASPO pricing and no further discounts or offerings are available.
Option 2 requires more time and resources but also doesn’t guarantee with the volume of business the City does that the best pricing would be available for either the tires or related services. Upon checking other entities with stand-alone contracts, not based on cooperative purchasing, this was not deemed as a cost-effective option.
Option 3 is the easiest option as far as effort on City staff’s behalf, however, anything purchased through NAPA/IBS has a cost markup. Even if this option were considered, upon research, vendors are not willing to offer discounts or government pricing to NAPA/IBS even though they would be buying on behalf of the City. This was not deemed as a cost-effective option.
Option 4 is the option pursued and has been found to be the best option for the City at this time.
While still using a NASPO based pricing structure, Southern Tire Mart has a unique philosophy regarding government in that they will research pricing and find the best value for government agencies. While NASPO is the base pricing, if a tire is on government pricing schedule at a lower value it will be purchased in that manner, saving the City money. Upon investigation into Southern Tire Mart, it is also a larger company that has larger purchasing power and tools to assist the City compared to other cooperative contracted contractors so availability of stock, pricing, and inventory management are addressed through their standard practices.
Southern Tire Mart also has its own plant to handle all retreads, and the plant is proudly promoted by Bridgestone/Firestone/Bandag themselves as the process for retreading is meticulous and held to high standards. This will not only save the City money (about 50% per tire) when able to retread tires but will ensure that City fleet is still operating at the highest safety standard.
As a result, staff recommends that the Council approve the cooperative purchase contract with Southern Tire Mart.
Financial Considerations: Sufficient funding is available in the FY2025/26 Department of Public Works Approved Operating Budget (Fleet Fund, Fund 6501) for the purchase of tires and related services through June 30, 2026. Purchases made after June 30, 2026, are subject to funding availability in the adopted budget of the applicable fiscal year.
Local Business Enterprise (LBE): Southern Tire Mart has a local presence and is an LBE.
CONTRACT #: PRC003724 PROJECT:
CONTRACT NAME: Fleet Tires and Tire Services NOT-TO-EXCEED AMOUNT: $6,000,000 AGREEMENT TERM: 8/12/25-7/31/26 SOLICITATION: NASPO RFP0223005113 AUTHORIZED RENEWALS: Four additional one-year terms LBE (Y/N): Y DEPARTMENT/DIVISION: Public Works / Fleet Management
CITY OF SACRAMENTO
GOODS AND NONPROFESSIONAL SERVICES AGREEMENT
THIS CONTRACT is made at Sacramento, California, by and between the CITY OF SACRAMENTO, a charter city and
Southern Tire Mart
800 Highway 98 Columbia, MS 39429
877-786-4681 / [email protected]
ontractor as of the Effective Date, as defined below.
The City and Contractor agree as follows:
1. Effective Date. This Contract shall be effective beginning August 12, 2025.
2. Contract Documents. This Contract includes each of the following documents, which are attached or incorporated by this reference
:
Invitation to Bid, Request for Qualifications, or Request for Proposals, and any Addenda Exhibit A - Technical Specifications
Exhibit B Payment
Exhibit C Insurance
Exhibit D General Conditions
Purchase Orders
If there is a conflict between the terms and conditions of any document prepared or provided by the Contractor and made a part of this Contract and the other terms or conditions of the Contract, the other terms and conditions of the Contract control.
3. Goods and Services. Subject to the terms and conditions set forth in this Contract, Contractor shall provide to City the - described in Exhibit A . Contractor will not be compensated for goods, materials, equipment, supplies, or nonprofessional services outside the scope of Exhibit A unless, before providing Additional Goods and Services: (a) Contractor notifies City and City agrees that the Additional Goods and Services are outside the scope of Exhibit A; (b) Contractor estimates the additional compensation required for these Additional Goods and Services; and (c) City, after Form Approved by City Attorney 2-10-2025 Page 2
notice, approves in writing a Supplemental Contract specifying the Additional Goods and Services and the amount of additional compensation to be paid Contractor.
City will have no obligations whatsoever under this Contract or any Supplemental Contract, unless and until this Contract or any Supplemental Contract is approved by the City as required by the Sacramento City Code.
both Goods and Services and Additional Goods and Services as applicable.
4. Payment. City shall pay Contractor at the times and in the manner set forth in Exhibit B.
Contractor shall submit all invoices to City in the manner specified in Exhibit B.
5. Facilities and Equipment. Except as set forth below, Contractor shall, at its sole cost and expense, furnish all facilities and equipment required for Contractor to perform this Contract. City shall furnish to Contractor only the facilities and equipment listed below, if any.
6. Insurance. Contractor shall, at its sole cost and expense, maintain the insurance coverage described in the attached Exhibit C.
7. General Conditions. Contractor shall comply with the terms and conditions set forth in the attached Exhibit D.
8. Non-Discrimination in Employee Benefits. This Contract may be subject to Sacramento City Code chapter 3.54, Non- Discrimination in Employee Benefits by City Contractors. A summary of the requirements, entitled "Requirements of the Non-Discrimination in Employee Benefits Code (Equal Benefits be viewed at:
https://www.cityofsacramento.org/Finance/Procurement/Contract-Ordinances.
Contractor acknowledges and represents that Contractor has read and understands the requirements and shall fully comply with all applicable requirements of Sacramento City Code chapter 3.54. If requested by City, Contractor shall promptly provide any documents and information required by City to verify Contractor's compliance.
Contractor's violation of Sacramento City Code chapter 3.54 constitutes a material breach of this Contract, for which the City may terminate the Contract and pursue all available legal and equitable remedies.
9. Living Wage. This Contract may be subject to Sacramento City Code chapter 3.58, Living Wage.
A summary of the requirements, entitled "Living Wage Requirements", can be viewed at:
https://www.cityofsacramento.org/Finance/Procurement/Contract-Ordinances.
The Living Wage Ordinance is applicable to certain contracts with the City in an amount of $250,000 or more (either initial value or total value after amendment) or if the total value of all Contractor's contracts with the City is $250,000 or more over a 12-month period.
Contractor acknowledges and represents that Contractor has read and understands the requirements and shall fully comply with all applicable requirements of Sacramento City Code Form Approved by City Attorney 2-10-2025 Page 3
chapter 3.58. If requested by City, Contractor shall promptly provide any documents and information required by City to verify Contractor's compliance.
Contractor shall require applicable subcontractors to fully comply with all applicable requirements of Sacramento City Code chapter 3.58 and include these requirements in all subcontracts covered by Sacramento City Code chapter 3.58.
Contractor's violation of Sacramento City Code chapter 3.58 constitutes a material breach of this Contract, for which the City may terminate the Contract and pursue all available legal and equitable remedies.
In addition, for Services that constitute "Public Works" under California Labor Code Section 1720 et seq., if both prevailing wage and living wage requirements apply, Contractor shall pay the higher of the two rates.
10. Considering Criminal Conviction Information in the Employment Application Process. This Contract may be subject to the requirements of Sacramento City Code chapter 3.62, Procedures for Considering Criminal Conviction Information in the Employment Application Process. A summary of the requirements, entitled Ban-The-Box
https://www.cityofsacramento.org/Finance/Procurement/Contract-Ordinances.
The Ban-The-Box Requirements are applicable to certain contracts with the City in an amount of $250,000 or more (either initial value or total value after amendment) or if the total value of all Contractor's contracts with the City is $250,000 or more over a 12-month period.
Contractor acknowledges and represents that Contractor has read and understands these requirements and shall fully comply with all applicable requirements of Sacramento City Code chapter 3.62. If requested by City, Contractor shall promptly provide any documents and information required by City to verify Contractor's compliance. Contractor shall require applicable subcontractors to fully comply with all applicable requirements of Sacramento City Code chapter 3.62 and include these requirements in all subcontracts covered by Sacramento City Code chapter 3.62.
Contractor's violation of Sacramento City Code chapter 3.62 constitutes a material breach of this Contract, for which the City may terminate the Contract and pursue all available legal and equitable remedies.
11. Local Business Enterprise Program. The Local Business Enterprise Program Participation Requirements ("LBE Participation Requirements") are applicable to this Contract. A summary of the requirements, entitled "LBE Participation Requirements," can be viewed at:
https://www.cityofsacramento.org/Finance/Procurement/Contract-Ordinances.
Contractor acknowledges and represents that Contractor has read and understands these requirements and shall fully comply with all applicable requirements of Sacramento City Code chapter 3.64. If requested by City, Contractor shall promptly provide any documents and Form Approved by City Attorney 2-10-2025 Page 4
information required by City to verify Contractor's compliance. Contractor shall require applicable subcontractors to fully comply with all applicable requirements of Sacramento City Code chapter 3.64 and include these requirements in all subcontracts covered by Sacramento City Code chapter 3.64.
Contractor's violation of Sacramento City Code chapter 3.64 constitutes a material breach of this Contract, for which the City may terminate the Contract and pursue all available legal and equitable remedies.
12. Authority. The person signing this Contract for Contractor represents and warrants that he or she has read, understands, and agrees to all the Contract terms and is fully authorized to sign this Contract on behalf of the Contractor and to bind the Contractor to the performance of the obligations.
[Signature Pages Follow Exhibits]
Form Approved by City Attorney 2-10-2025 Exhibit A - Page 1
EXHIBIT A
TECHNICAL SPECIFICATIONS
1. Representatives.
The CITY Representative for this Agreement is:
Stacey Chatman, Program Specialist
5730 24th Street, Building 1, Sacramento, CA 95822
916-808-6711 / [email protected]
The CONTRACTOR Representative for this Agreement is:
Richard Conwill- Director of Government Sales
800 Highway 98 Columbia, MS 39429
877-786-4681 / [email protected]
Unless otherwise provided in this Contract, all Contractor questions and correspondence pertaining to this Contract must be addressed to the City Representative. All City questions and correspondence must be addressed to the Contractor Representative.
2. Scope of Services. Contractor shall provide Goods and Services to City as set forth in Attachment 1 to this Exhibit A.
3. Quantities. The quantities stated in Attachment 1 to this Exhibit A or Exhibit B are only estimates of the City's requirements. Contractor shall furnish Goods and Services at the prices quoted, in accordance with the City's available funds and actual needs as they occur throughout the term of this Contract.
The City is not required to purchase all of the Goods and Services listed, or to expend all available funding reflected in Exhibits A or B.
4. Time of Performance. The Goods and Services described in this Contract shall be provided for one year). The City may extend this Contract for up to four additional one-year terms, for a maximum five-year term. Contractor shall provide the Goods and Services in accordance with any schedule in Attachment 1 to this Exhibit A.
5. Delivery and Inspection.
A. Delivery. Unless otherwise stated by the City in writing, delivery of Goods shall be made to the City address set forth in Exhibit A. All shipments are Free on Board (F.O.B.) destination with freight prepaid unless otherwise stated.
Contractor assumes full responsibility for all transportation scheduling and costs, including costs for containers, packing, handling, and insurance. The City reserves the right Form Approved by City Attorney 2-10-2025 Exhibit A - Page 2 to request and receive a copy of the freight bill of lading on all purchases shipped F.O.B. prepaid and added.
Time is of the essence in the delivery. If delivery cannot be made as specified in Exhibit A or as otherwise stated by the City, Contractor shall notify the City immediately to request instructions on how to proceed and shall not make delivery before receipt of instructions.
Periods of performance may be extended if, in the sole judgment of the City, the cause of delay justifies an extension.
B. Inspections: Goods will be inspected at the destination before acceptance by an authorized representative of the City for workmanship, appearance, proper functioning of all equipment and systems, and conformance to all other requirements of this Contract. The Goods shall be delivered to City free of any liens or encumbrances.
Notwithstanding the requirements for any City inspection and testing at the destination and except where specialized inspections or testing are specified for performance solely by the City, Contractor shall perform or have performed the inspections or tests required to substantiate that all Goods provided under the Contract conform to the drawings, specifications, and other Contract requirements, including, if applicable, the technical requirements for the manufacturer's part number(s) specified.
C. Deficiencies: If deficiencies in the Goods are discovered, Contractor shall correct and redeliver the Goods for re-inspection and acceptance. The period for payment and/or commencement of discount period (if applicable) does not begin until corrective action is complete. The cost of storing rejected Goods and the cost for shipping rejected Goods back to the Contractor or point of origin shall be paid by Contractor.
D. Inspection of Facilities: If requested by the City, Contractor shall provide the City with an inspection tour of Contractor's facilities where any Goods will be designed, manufactured, or assembled by Contractor.
6. Title/Risk of Loss. Title, ownership, and risk of loss or damage of the Goods remains with the Contractor until the Goods are delivered to, inspected, and accepted by the City, except when the loss or damage is due to the sole negligence of the City.
ATTACHMENT 1 to Exhibit A
Exhibit A Page 3
Scope of Services:
Contractor shall provide tire inspection, repair, replace, and inventory management services for Heavy Duty and Light Duty tires, tubes and related parts for the City of Sacramento, on an as needed basis.
General Requirements
A. The Contractor facility shall be a clean and safe working environment. The facility shall comply with all Federal, State and local regulations.
B. All Items provided under this agreement shall comply with all applicable Federal, State and local regulations including State of California Motor Vehicle Code, as applicable.
C. Contractor must ensure there are a sufficient number of trucks available to provide the required services. Additionally, trucks should be maintained in reliable working condition to ensure consistent and dependable service delivery
D. Authorized representative(s) of the City of Sacramento shall be permitted to inspect the Contractor facility on a periodic basis. More frequent inspections shall be permitted if problems develop and remain unresolved. Persistent and/or unresolved performance or other issues may be grounds for termination of this agreement.
E. Contractor shall provide brand new, first quality Heavy Duty and Light Duty tires of the is specified.
F. City may purchase other miscellaneous brand tires as required to meet the needs of the City.
G. - Retreaded Truck Tires and the Motor Carrier Safety. All retread tires shall be processed by a reputable retreading company and shall carry a warranty at least as good as a comparable new tire.
H. Contractor must stock a reasonable quantity of the tires with the ability to meet all the City needs during the term of the Contract. If any specified tire is unavailable for more than 24 hours, the Contractor shall be required to immediately substitute with an equal or equivalent tire(s) at the same contracted unit price as the tire being substituted. The City shall make final determinations as to accept equal or equivalent substitutions.
I. In case of an emergency, the City may purchase tires from another vendor if attempts to contact the Contractor are not immediately successful.
J. Orders must be delivered within a 24-hour time frame from the point of receiving the initial order unless otherwise agreed upon with the Parts Supervisor.
K. Tire Disposal: The Contractor agrees to accept the City for a fee per tire, and to monitor the recycling of used tires in accordance with the California Tire Recycling Act at no extra charge.
L. Disposal Process: At time of tire(s) delivery by the Contractor OR tire(s) pickup by City employee(s), the Contractor must accept and pick-up old tire(s) on a one to one exchange (old tire(s) to new tire(s)) for disposal at no extra charge to the City. If the process cannot be properly executed, then an alternative exchange process and schedule (pickup / delivery exchange) shall be developed and implemented upon agreement between the City and the Contactor. Contractor shall provide a copy of the manifest for all disposed tires to the City. If Contractor is called out to pick up disposed tires response time should be next business day.
M. Shipping and Delivery: Participating City of Sacramento locations will require delivery of tires, tubes and other related parts include, but not limited to:
ATTACHMENT 1 to Exhibit A
Exhibit A Page 4
SACY
(South Area
Corporation Yard)
NACY
(North Area
Corporation Yard)
Meadowview City
Services Complex
Kinney Police
Garage
Rooney Police
Garage
5730 24th Ave
Sacramento, CA
95822
918 Del Paso Rd
Sacramento, CA
95834
2812 Meadowview Rd
Sacramento, CA
95832
3550 Marysville Blvd
Sacramento, CA
95838
5303 Franklin Blvd
Sacramento, CA
95820
N. Miscellaneous commodities may be obtained at the Cit written quote and obtain authorized City approval. Contractor under no circumstance shall provide any commodities without prior written authorized City approval.
O. Delivery locations may be added or deleted at any time with no penalty to City.
P. City may elect to accept substitute like commodities, commodities of equal or better quality and/or brand, costing equal or less than the original contracted commodities as set forth in this Contract with written authorized City approval. Substitute like commodities that cost more will require prior authorized approval from City before any substitution will take place.
Miscellaneous items not included in manufactures price sheet may be purchased against the Contract.
City will obtain price quotes.
Technical Specifications:
This specification describes the requirements for tires utilized by the City of Sacramento for law enforcement vehicles, passenger cars, light duty trucks, buses, trailers, medium to large duty trucks, agriculture, construction, fire engines, and crew transport.
All tires shall comply with the following Federal and State rules, regulations and safety standards:
Department of Transportation (DOT)
Society of Automotive Engineers (SAE)
The Tire and Rim Association (TRA) 2.5 American Society of Testing and Materials (ASTM) National Institute of Standards and Technology (NIST)
GENERAL
Products shall be new and be of standard original equipment manufacturer (OEM) quality equal to or superior in every respect to those normally furnished as original equipment for such vehicles.
Tires shall be of minimum OEM recommended tread wear rating for each group category described in this specification and where feasible and cost effective, low-rolling resistance tires will be made available.
Category groups are as follows:
Group 1 and Group 2: Pursuit Performance and Passenger Car/Light Duty Truck Categories A. Pursuit Performance tires for police and other pursuit vehicles and for other highspeed, performance vehicles include any tire that is H, V, W, Y, or ZR rated or above. An H rating is the minimum speed rating for tires in this subcategory.
B. Tires shall be new, standard production tires expressly designed and certified by the manufacturer for high-speed operation and shall exhibit exceptional safety, stability, handling and stopping characteristics.
C. Contractor shall maintain evidence/certifications that such tires meet all laboratory test and size requirements of Federal Standards MVSS 109 and shall ensure that the tires are marked with "DOT" compliance symbol.
ATTACHMENT 1 to Exhibit A
Exhibit A Page 5
D. Common applications for passenger and light duty tire types would be passenger cars, pickup trucks, sport utility vehicles, full size vans and some trailers.
Group 3: Medium/Large Truck, Fire Engines, Crew Transport and Bus and Agriculture/Construction Common applications for these types of tires would be medium and heavy trucks, fire engines, buses, semi-trucks, cargo vans and trailer tires. Tires in this subcategory have an inside diameter that is equal to or greater than seventeen and a half (17.5) inches.
Common applications are heavy construction equipment such as wheel loaders, backhoes, graders, trenchers, tractors, and other equipment requiring tires with high traction qualities and tires with high flotation qualities at low inflation pressures.
Repair and Service Requirements
A. TIRE INSTALLATION - Includes removal of the tire, replacement of the tire, tube, and boot if applicable, replacement of the valve stem, balancing, and remounting of the wheel on the vehicle or equipment.
B. REPAIR OF FLATS - Plugging includes insertion of plug and reinflation without removing tire from rim, vehicle or equipment. Patching includes removal of the tire, patching of the tire and tube if applicable, remounting of the tire, balancing, and remounting on the vehicle or equipment. Plugging is NOT acceptable on any Highway rated tire!
C. WHEEL ALIGNMENT When requested by the City or deemed as necessary upon inspection by Contractor and approved by City, wheel alignment services shall be provided. Wheel alignments will be completed per manufacturer specifications. Thrust or four wheel alignments may be required, depending upon the vehicle.
D. There are certain vehicles in the City that have pre-mounted tires. Those are pre-staged at certain City Shops. When called out contractor shall pick up the pre-mounted tire and repair as needed for those vehicles.
E. All work shall be inspected by a representative of the City for proper completion and correction of the reported concerns. If it is determined that the concerns are not properly addressed; or the quality of work is unacceptable, the Contractor shall, at their expense, make the necessary corrections.
Fleet Inspection Requirements
A. Contractor shall provide fleet inspection services of City fleet assets.
B. Inspection of City fleet assets should include surveying tire depth, tire pressure, and overall condition.
C. If a tire or tire(s) do not pass inspection, Contractor shall provide repair and/or replacement services as applicable.
D. After each inspection Contractor shall provide a report consisting of the City fleet asset Identifying number, issues found, and actions taken. Reports can be transmitted to the City weekly or monthly.
Tire Inventory and Ordering Requirements
A. Contractor shall maintain an accurate count of inventory stored for the City including new as well as recapped tires.
B. Contractor shall work with the City to determine acceptable the acceptable number of recaps for the life of a tire.
C. Contractor shall work with City Fleet shops for on site inventory needs and ensure proper levels are held on site.
Form Approved by City Attorney 2-10-2025 Exhibit B - Page 1
EXHIBIT B
PAYMENT
1. Contractor The total of all fees paid to the Contractor for the provision of Goods and Services as set forth in Exhibit A, including any authorized reimbursable expenses, shall not exceed the total sum of $ 6,000,000. The payments specified in this Exhibit B shall be the only payments made to Contractor unless the City approves a Supplemental Contract.
2. Pricing. Contractor shall be paid as set forth in Exhibit A or Attachment 1 to this Exhibit B and any applicable special provisions included in the request for bids or proposals. If there is a conflict between Exhibit A or Exhibit B and the Special Provisions, Exhibit A or Exhibit B controls.
3. Contractor Reimbursable Expenses are limited to actual expenditures of Contractor for expenses that are necessary for the proper satisfaction of the Contract and are only payable if specifically authorized in advance in writing by the City.
4. Miscellaneous Charges. No additional charges will be allowed unless specified in the Contract, including charges for transportation, fuel, containers, packing, or disposal.
5. Price Adjustments for Goods. Unless otherwise stated, prices are maximum for the term of the Contract. Price adjustments, if allowed under this Contract, must be requested in writing and accompanied by the required information to substantiate the request for price adjustment, as set forth in the Contract. Any allowable request for price adjustment must be delivered to the City at least 30 days before the adjusted prices become effective. No price adjustment allowable under this Contract will be granted retroactively. The City must also be given the benefit of any decline in prices. If any price increase is granted by the City, the increase shall not be greater than 3% from the prior year.
6. Purchase Orders. Unless otherwise stated, a purchase order will be issued to the Contractor on behalf of the City. Purchase orders will cite the quantity of Goods or Services requested, the purchase amount, and time of performance. If the time of performance of this Contract extends beyond the close of the City's fiscal year, another purchase order may be issued. No purchase order supersedes any provision of this Contract. Contractor shall not deliver Goods or provide Services until Contractor receives a purchase order or other written notification by the City.
7. Payments to Contractor. Contractor is responsible for supplying all documentation necessary to A. Payment terms are NET 30 days, unless the Contractor offers a prompt payment discount that was accepted by the City or as otherwise stated in this Contract. Any prompt payment discounts will be computed from the date of acceptance by the City, or from the date an invoice is received, whichever occurs later.
B. Invoices must be submitted to either of the addresses specified below. (1) Email. Submit email invoices and any attachments to:
[email protected]
Form Approved by City Attorney 2-10-2025 Exhibit B - Page 2 (2) Postal Mail. If emailing is not an option, mail to:
A/P Processing Center
City of Sacramento
915 I Street, Floor 4
Sacramento, CA 95814-2608
C. All invoices submitted by CONTRACTOR must contain the following information:
(1) Job/Project Name
(2)
(3) Contractor
(4) Date of Invoice Issuance
(5) Work Order Number (if applicable)
(6) CITY representative identified on the Purchase Order (7) Contractor
(8) Itemized description of items billed under Invoice
(9) Itemized description of all authorized Reimbursable Expenses (10) Itemized description of all applicable taxes (sales, use, excise, etc.) (11) Amount of Invoice (itemize all authorized Reimbursable Expenses) (12) Total Billed to Date under Contract (if applicable) D. Items must be separated into Goods, Services, and Reimbursable Expenses. All applicable sales, use, excise, or similar taxes, including federal excise tax, must be itemized separately on the invoice. Invoices that do not conform to the format outlined above will be returned to Contractor for correction. City is not responsible for delays in payment to Contractor resulting from Contractor
described above.
E. For Goods only, a bill of lading number and weight of shipment will be shown for shipments on the Government Bill of Lading.
F. Unless otherwise specified in this Contract, partial payments will not be made by the City and payment will not be due until the completion of the Goods order. No payment d to
the City Representative for this Contract.
8. Additional Goods and Services. Additional Goods and Services shall be provided only when a Supplemental Contract authorizing the Additional Goods and Services is approved in writing by right to perform any Additional Services with its own staff or to retain other contractors to perform the Additional Services.
9. Billing Disputes. The burden of proof shall be on the Contractor to establish the accuracy of its invoices. Upon presentation and verification of the information provided by Contractor, the City will review all records and make a final determination and present its finding to Contractor.
10. Accounting Records of Contractor. During performance of this Contract and for a period of three Form Approved by City Attorney 2-10-2025 Exhibit B - Page 3 years after completion of performance, Contractor shall maintain all accounting and financial records related to this Contract, in accordance with generally accepted accounting practices, and records of
shall keep and make records available for
inspection and audit by representatives of the City upon reasonable written notice.
11. Sales Tax Requirements. The City is not exempt from paying sales tax. Sales tax must be shown on the invoice as a separate line item.
12. Use Tax Requirements. On out-of-state purchases, Contractor shall list its Use Tax Permit Number (if applicable) on the invoice, which authorizes Contractor to charge and collect California Sales Tax. The Purchase Order will include sales tax, if applicable to the purchase, regardless of whether an out-of-state Contractor collects California State sales tax or not.
The City shall pay Use Tax directly to the California Department of Tax and Fee Administration ("CDTFA") if the out-of-state Contractor is not required to collect California Sales Tax. During the performance of this Contract, Contractor, for itself, its assignees and successors in interest, agrees as follows:
A. Use Tax Direct Payment Permit: For all leases and purchases of tangible personal property used to perform the Contract and shipped from outside California, Contractor and any subcontractor(s) leasing or purchasing such tangible personal property shall obtain a Use Tax Direct Payment Permit from the CDTFA in accordance with the applicable CDTFA criteria and requirements.
B. Sellers Permit: For any construction contract and any construction subcontract in the amount of $5,000,000 or more, Contractor and the subcontractor(s) shall obtain sellers permits from the CDTFA and shall register the jobsite as the place of business for the purpose of allocating local sales and use tax to the City. Contractor and its subcontractors shall remit the self-accrued use tax to the CDTFA and shall provide a copy of each remittance to the City.
C. The above provisions apply in all instances unless prohibited by the funding source for the Contract.
13. Excise Tax Requirements. The City of Sacramento is exempt from the payment of Federal Excise Tax. An exemption certificate will be submitted to Contractor upon request. If Federal Excise Tax is applicable to the transaction, it must be so stated and excluded from the price.
14. Tax Payments. Contractor shall pay, when and as due, any and all taxes incurred as a result of Contractor
proof of the payment upon request. Contractor hereby agrees to indemnify CITY for any claims, losses, costs, fees, liabilities, damages or injuries suffered by CITY arising out of Contractor breach of this section.
15. Public Works Requirements. [To be completed by the City Representative:] The services provided under this Contract include [check one if applicable]:
Form Approved by City Attorney 2-10-2025 Exhibit B - Page 4 ________ Construction work in an amount exceeding $25,000; ________ Land Surveying, material testing, or inspection services provided for a City construction project during the design, pre-construction, construction, or post-construction phases of the project; or
________ Alteration, demolition, repair, or maintenance work in an amount exceeding $15,000.
If any of the lines is checked above, this Contract
Labor Code and is subject to the following requirements:
A. Payment of Prevailing Wages: Contractor and any subcontractor(s) performing any Public Work shall comply with the provisions of Sacramento City Code section 3.60.040 and applicable provisions of the California Labor Code, which require, among other things, that Contractor and all subcontractors pay not less than the prevailing rate of wages, as determined by the Director of the California Department of Industrial Relations in accordance with California Labor Code section 1773. Contractor and every subcontractor shall maintain payroll records and submit certified payrolls and other labor compliance documentation electronically when and as required by CITY. In addition, Labor Code Section 1771.4 requires the Contractor and any subcontractor performing any Public Work to furnish electronic payroll records directly to the Labor Commissioner. Contractor shall include these requirements in every subcontract.
This Agreement is subject to compliance monitoring and enforcement by the DIR, as specified in California Labor Code section 1771.4. The Contractor and any subcontractor will be subject to withholding and penalties for violation of prevailing wage requirements in accordance with applicable law, including Labor Code Sections 1726, 1741, 1771.5, and 1775, and City Code Section 3.60.040
Program should be directed to the City Representative.
B. DIR Registration: California Labor Code Section 1725.5 requires the Contractor and all subcontractors performing Public Works services to be currently registered with the DIR, as specified in California Labor Code Section 1725.5. California Labor Code Section 1771.1 provides that a contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal (subject to the requirements of Section 4104 of the California Public Contract Code), or engage in the performance of any contract for Public Work, unless currently registered and qualified to perform Public Work in accordance with California Labor Code Section 1725.5. - Works/Contractors.html. The above summary is provided solely for informational purposes and does not in any way affect the Contractor
to comply in all respects with all other applicable laws and regulations. The Contractor shall disseminate these provisions to all subcontractors.
Form Approved by City Attorney 2-10-2025 Exhibit B - Page 5 Before the performance of work by Contractor or any subcontractor(s) under this current DIR registration number of all subcontractors will be listed on the Subcontractor and LBE Participation Verification Form, incorporated herein.
C. In accordance with California Labor Code Section
1861, by signing this Contract, Contractor acknowledges and represents that Contractor is aware of the provisions of section 3700 of the California Labor Code which requires every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and that Contractor will comply with the provisions of the Labor Code before commencing performance under this Contract.
D. Apprentices. If this Contract is for the performance of any Public Work, and the amount of the Contract is $30,000 or more, the Contractor and any subcontractors performing any Public Work under this Contract must comply with and be subject to enforcement under, the provisions of Sacramento City Code Section 3.60.050, Section 1777.5 et seq. of the California Labor Code, and implementing regulations set forth in Title 8 of the California Code of Regulations, governing the employment of apprentices. The Contractor and any subcontractors performing Public Work will be subject to penalties for apprenticeship violations in accordance with Labor Code Section 1777.7.
E. Working Hours. If this Contract is for the performance of any Public Work, Contractor and any subcontractors performing any Public Work under this Contract must comply with and be subject to enforcement under, the provisions of Sacramento City Code Section 3.60.040 and California Labor Code Section 1810 et seq., governing the working hours of employees performing Public Work.
F. Failure to Comply with Labor Compliance. If all applicable labor compliance requirements are not met, the City will have the right to withhold or reject a payment request and/or invoice, in whole or in part, without in any way relieving Contractor or its subcontractors of any obligations under this Contract.
G. Subcontractors. The Contractor shall include these provisions A through F in every subcontract or sub-agreement for any subcontractors performing work under this Contract.
ATTACHMENT 1 TO EXHIBIT B
COMPENSATION
The Contractor agrees to accept the specified compensation as set forth in this Contract as full payment for performing all services and furnishing all staffing and materials required, for any reasonably unforeseen difficulties which may arise or be encountered in the execution of the services until acceptance, for risks connected with the services, and for performance by the Contractor of all its duties and obligations hereunder. The Contractor shall only be compensated as set forth herein for work performed in accordance with the Scope of Work. The City shall have no obligation to pay any sum more than the fixed prices and total contract amount specified herein unless authorized by amendment.
BILLING RATES
Service or Good Rate or Price
Tires The current NASPO list price or Bridgestone government pricing, whichever is lower Mounting Passenger/Light
Truck
$20.00 (included at no additional charge in service call) Mounting Medium Truck $45.00 (included at no additional charge in service call) Balancing Passenger/Light
Truck
$10.00 (included at no additional charge in service call) Balancing Medium Truck $35.00 at STM yard, $25.00 on service call using Balance Bead Bag Tire Rotation
Passenger/Light Truck
$10.00 per wheel (included at no additional charge in service call) Tire Rotation
Medium Truck
$15.00 per wheel (included at no additional charge in service call) Valve Stems
Passenger/Light Truck
$6.00
Valve Stem Medium
Truck
$8.00, Flow Through Cap $2.00
TPMS Kit $15.00
TPMS Sensor $50.00, includes reprogramming
Flat Tire Repair
Passenger/Light Truck
$25.00 (included at no additional charge in service call) Flat Tire Repair
Medium Truck
$50.00 (included at no additional charge in service call) Fleet Inspection Check $120.00 per hour
Wheel Alignment $150.00 per axle (medium truck), mobile service available at additional charge Tire Disposal Fee $15.00 medium truck, $10.00 passenger & light truck Contractor Cost Markup for
Heavy Duty Tires
20%, for brands or tire sizes that do not qualify for government pricing Contractor Cost Markup for
Light Duty Tires
20%, for brands or tires sizes that do not qualify for government pricing Service Call Out Regular
Hours
$120.00 per hour
After Hour Service Call
Nights/Weekends/Holidays
$160 per hour, two-hour minimum
A2 Service Call
(Boom/Crane Truck)
$180.00 per hour (available Monday through Friday only during regular business hours only)
Estimate and Invoice Requirements
The quoted labor rate will be used to perform all repairs, and all parts used for repairs shall be priced in accordance with the price discount quoted in the bid. The hourly labor rates and any applicable discounts shall be reflected on all invoices and estimates.
Prices shall include all costs, but not limited to, overhead, all necessary labor, transportation, freight, delivery and/or shipping/handling fees, fuel/fuel surcharges, mileage, storage, self-imposed fees and any other costs necessary to provide the item(s) requested.
Before Repairs:
Contractor shall provide a written cost estimate and schedule to the City for the requested or recommended repairs.
Approval from an authorized representative of the City must be given prior to work being performed and shall be based on the estimated cost provided.
If additional work is required, approval from the City must be obtained prior to work being completed.
The City will not be responsible for the costs associated with any unauthorized repairs.
Invoicing:
Any items sold to the City of Sacramento must be taxed at the current tax rate for the City of Sacramento. If not known please refer to https://www.cdtfa.ca.gov/taxes-and-fees/rates.aspx.
To ensure prompt payment, the Contractor shall submit invoices for services rendered or goods delivered to the City in accordance with the terms of the contract, including all exhibits and attachments.
The City shall not be obligated to pay any invoice submitted by the Contractor more than one hundred eighty (180) days after the date the services were rendered or goods delivered, or more than ninety (90) days after the termination of the agreement, whichever occurs first.
To facilitate full and timely payment, the Contractor must submit invoices no later than the tenth (10th) day of each month to [email protected] Contract Price Adjustments
1. Initial Period:
o No price adjustments will be considered during the first year of this contract.
2. Post First-Year Period:
o After the initial term, prices may be adjusted based on manufacturer price changes. o
o A minimum 45-day advance notice is required for adjustment requests. o Approved increases will not exceed 3% of the previous year's cost. o Discounts from commercial or fleet retail pricing will remain unchanged. o Any price declines will be immediately extended to the City.
3. Approval Process:
o Requests for price increases or labor rate adjustments require the City's review and written approval in a contract amendment.
o Contractors must price protect the contracted price during the review period. o goods or services will be
unavailable for ordering until the price increases are approved.
4. Contractor's Efforts:
o The Contractor will strive to obtain the lowest possible prices from suppliers. o If material prices increase after contract execution, the Contractor agrees to pay the additional cost.
5. Price Increases:
o If material costs rise significantly, causing the total contract price to increase by more than the specified percentage, the Contractor must notify the City in writing. o The City may terminate the contract by providing written notice. o The City may enforce, negotiate, or cancel escalating price Contracts or take any other action it deems appropriate, as it sees fit. The net dollar amount of profit will remain firm during the period of the Contract
o Contractor guarantees that prices quoted are equal to or less than prices quoted to any other local, State or Federal government entity for services of equal or lesser scope.
Contractor agrees that no price increases shall be passed along to the City during the term of this Contract not otherwise specified and provided for within this Contract.
6. Labor Rate Adjustment:
o Labor rates may be adjusted based on the Consumer Price Index (CPI) for All Urban Consumers (CPI-U).
o The CPI-U increase will be applied to the base labor rates outlined in Schedule A.