Title
Resolution to Approve an Increase to the Purchase Order with Shrader Tire & Oil for the Purchase of Heavy Equipment/Truck Tires and Tire Repair Services (Not to Exceed $15,000.00)
Memorandum
We recommend your approval of the attached resolution authorizing an increase of $15,000.00 to the existing $125,000.00 purchase order with Shrader Tire & Oil-for a total amount not to exceed $140,000.00-to purchase heavy equipment/truck tires and tire repair services for the City's Fleet for FY19.
Until April 2018, Recycle Ann Arbor (RAA) purchased or repaired tires for City refuse trucks that RAA operated. Staff became aware that RAA's purchases were subject to the Federal Excise Tax, adding unnecessary costs to tire purchases (the City is exempt).
In April 2018, City Council approved R-18-126, which authorized the issuance of a purchase order for tire purchases and repairs from Shrader Tire & Oil under a State of Michigan MiDeal cooperative purchasing contract. This change has will require an additional $15,000.00 in authorized purchasing authority to cover anticipated expenses for the remainder of the fiscal year.
Shrader Tire & Oil complies with the requirements of the City's Conflict of Interest and Non-Discrimination ordinances.
Budget Impact: Adequate funding for the purchase of replacement parts is available in the approved FY19 Fleet Services Operations and Maintenance Budget.
Staff
Prepared by: Matthew J. Kulhanek, Fleet & Facilities Unit Manager
Reviewed by: John Fournier, Assistant City Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The Fleet & Facilities Unit purchases heavy equipment/truck tires and tire repair services to maintain the City's fleet of equipment and vehicles;
Whereas, In April 2018, City Council approved R-18-126 and authorized the issuance of a purchase order in the amount not to exceed $125,000.00 for the purchase and repair of heavy equipment/truck tires from Shrader Tire & Oil for FY1...
Click here for full text