City Council
Report
City Council Meeting: May 9, 2023
Agenda Item: 5.E
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To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Transit Maintenance Subject: Award Bid for Heavy-Duty Tire Rental for Big Blue Bus Vehicles to Bridgestone Americas Tire Operations
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption (Class 1 Existing Facilities) pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines;
2. Award Bid #4446 to Bridgestone Americas Tire Operations, LLC to provide leased tires for use on the Santa Monica Department of Transportation’s fleet of transit buses; and
3. Authorize the City Manager to negotiate and execute an agreement with Bridgestone, in an amount not to exceed $2,271,343, including a $206,486 contingency, and a 3% annual cost escalator, over a five-year period with future year funding contingent on Council budget approval.
Summary
Big Blue Bus, a division of the Santa Monica Department of Transportation (DOT), operates 195 transit buses with six to ten tires on each bus. DOT transit buses run approximately 4.5 million miles across 69 square miles of Santa Monica and western Los Angeles. This heavy use subjects the bus tires to significant wear, and regular replacements of transit bus tires ensure buses can continue to operate safely. With a tire leasing service, new tires are available at all times and necessary repairs or replacements can be made in a timely manner.
Staff recommends that Bid #4446 be awarded to Bridgestone for tire leasing and replacement services for DOT transit buses for a five-year period in an amount not to exceed $2,271,343.
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Discussion
DOT is committed to providing safe, reliable transit buses for its customers and maintenance of bus tires is a critical aspect of its bus maintenance program. Normal wear occurs to transit bus tires which are constantly in use. Tire leasing has been a standard practice in the transit industry since the 1940s and a common practice at DOT for the last 50 years. Leasing tires is more economical than purchasing them as DOT is charged on a per-mile basis rather than purchasing individual tires. The service ensures that new tires are always available and that any necessary repairs can be made quickly to minimize disruptions to DOT’s service. The new agreement with Bridgestone would provide leased tire inventory, including spare stock for tire replacements, and two fulltime on-site attendants who perform inspections, tire repair, and replacement.
DOT has historically contracted out its tire leasing service for its fleet of transit buses in accordance with the guidance set forth in the “Contracted and As-Needed Staffing Review Policy, Practice, Recommendations” report approved by Council on January 13, 2015. DOT contracts this work due to the need for specialized equipment needed to repair and replace tires, and the need for workforce flexibility to require a large pool of employees to serve as back-ups to cover any callouts.
Under the agreement, Bridgestone would provide all equipment and materials needed to provide replacement tires saving the City costs associated with the purchase and storage of equipment. In addition to the cost savings, the nature of the tire replacement service requires a large employee pool that would provide service day and night to ensure that buses are available for service.
Vendor Selection
Bidder Recommendation
Best Bidder Bridgestone Americas Tire Operations, LLC
Evaluation Criteria Price: the ability, capacity, and skill of bidder to provide transit bus tire leasing, repair, and replacement, and experience Municipal Code SMMC 2.24.180
Submittals Received
Bridgestone Americas Tire Operations LLC $ 2,271,343
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Bid Data
Date Posted Posted On
Advertised In (City Charter
& SMMC)
Vendors
Downloaded
Date
Publicly
Opened
2/15/2023
City's Online
Bidding Site Santa Monica Daily Press 6 3/16/2023
Bidder Justification
Bids were evaluated based on the criteria in SMMC 2.24.180 including price, ability to provide service, experience, and capacity to provide reliable service. Bridgestone has experience providing transit bus tire leasing, repair, and replacement services to peer transit agencies and is the lowest cost bidder.
Environmental Review
The project is categorically exempt from CEQA pursuant to Section 15301 of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which include the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The contract award would address the maintenance responsibilities of existing transit buses, and therefore, it has been determined that the project is categorically exempt pursuant to Section 15301 of the CEQA Guidelines.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Big Blue Bus Fund to award a contract with Bridgestone Americas Tire Operations for transit bus tire leasing services.
Contract Request
FY2023-24 Budget
Request Amount
Future Years
Amount
Department Account # Total Contract
Amount
$388,925 $1,882,418 C6004750.689000 $2,271,343
Michelin North America $ 3,121,582
Daniels Tire Service $ 5,240,824
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Future year funding is contingent on Council budget approval.
Prepared By: David Nanjo, Administrative Analyst
Approved Forwarded to Council
Attachments:
A. Bridgestone Oaks