TITLE
Consider a memorandum/resolution authorizing an increase in tire service expenditures for Fiscal Year 2017.
SUMMARY
DATE: August 15, 2017
TO: Ronald L. Olson, City Manager
VIA: Jonathan Locke, Executive Director of Finance
FROM: Frank Tydlacka, Director of Fleet Services
SUBJECT: Authorize an increase in tire service expenditures for fiscal year 2017
BACKGROUND AND FINDINGS:
On March 11, 2014, the City Council approved entering into an agreement with Colliver Tire Services to provide the City with tire services for heavy trucks and off-road equipment on an as-needed basis. The contract awarded was for one year with the option to renew for three additional one-year periods. Due to the irregularity of services required each year, the bid pricing was based upon each individual type of service and not a total amount. However, there was an annual estimated cost stated by staff during the bid approval process that was based upon the previous year’s usage in 2013. That estimated cost in 2013 is what the annual purchase order was issued for this current fiscal year and that amount is no longer adequate. To complete the remainder of this fiscal year, the existing purchase order of $221,983.50 is estimated to require an increase of $67,000.
Over the past two years, the annual amount expensed for tire repairs has risen. The primary contributing factor appears to be degradation of the concrete floor at the Transfer Station. The spalling and pitting of the floor make it extremely difficult to completely clean it of foreign debris which then causes damage to the incoming truck tires.
THE ALTERNATIVES CONSIDERED:
At this time, there does not appear to be a viable alternative. Transfer Station personnel are working diligently to sweep the floors as often and as well as possible. Pricing to repair the floor is als...
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