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Mass Transit Memorandum <br /> No. 042709-1 <br /> April 27, 2009 <br /> TO: Honorable Mayor McElroy and City C uncil Members <br /> FROM: Ryan McCrady, City Manager <br /> Paul McChancy, Mass Transit Administrator,.r-�yti� <br /> SUBJECT: Tire Lease Agreement with Bridgestone Americas Tire Operations, LLC. <br /> SUMMARY Staff recommends that Council adopt a Resolution awarding a <br /> RECOMMENDATION: bus tire lease agreement to the low bidder, Bridgestone Americas <br /> Tire Operations, LLC. <br /> BACKGROUND: The City now has a bus tire lease agreement with Bridgestone that <br /> expires on July 1 st. All of the maj or manufacturers of truck/bus <br /> tires were contacted concerning submitting a bid for a new five <br /> year contract. Bids were received from Bridgestone and Goodyear <br /> by the April 17th bidding deadline. Michelin declined the <br /> invitation to bid without stating a reason. Both bidders submitted <br /> all of the information required by the bidding deadline. Since <br /> Transit uses different tire sizes for its 3 types of transit coaches, <br /> and the miles billed per tire size per year varies significantly, a <br /> scoring system was used that calculates the bids proportionately. <br /> (See attached Bid Summary.) Bridgestone was the lowest bidder <br /> for each year, and was the lowest bidder over the five year term of <br /> the contract. Because the City currently has a contract with the <br /> firm, Bridgestone is known to be a responsible firm, willing and <br /> capable of providing the service required under this Agreement. <br /> POTENTIAL Goodyear has claimed that the Bridgestone tire size used on most <br /> OBJECTION: of the buses is not manufactured in the U.S. and that a lease with <br /> Bridgestone would violate FTA's Buy America requirement. <br /> Bridgestone responded that the tire size in question"is now built in <br /> our Tennessee plant" and therefore complies with Buy America. <br /> A Buy America certificate will be included as a part of the lease <br /> agreement. <br /> INPUT FROM William F. Burgess, Western Division Manager, Mileage Sales, I', <br /> OTHER SOURCES: Bridgestone Americas Tire Operations, LLC. ' <br /> STAFF REFERENCE: Paul McChancy, Mass Transit Administrator <br /> BUDGET/TIME The lease of tires is a normal Transit operating cost. In 2009-2010 <br /> IMPLICATIONS: the proposed Agreement will cost the City about 4.8% ($1,206.60) <br /> over the amount paid in 2008-2009 for leased tires. <br />