Fiscal Note
Metro Transit is in the process of transitioning vendors for its tire lease program. Leg File 59148 (adopted by the Council on February 25, 2020) authorized a competitively bid agreement with Goodyear to begin providing tires on July 1, 2020. As part of the transition, Metro has the option to purchase all tires provided under the current contract, estimated to cost $360,000. The proposed resolution authorizes this purchase and amends the budget to appropriate funding from Metro’s fund balance for the purchase.
Metro’s 2020 Adopted Budget includes $264,000 for the tire lease contract. If this resolution is approved, it is estimated total tire expenditures in 2020 will be $530,000. Following this transition year, Metro projects tire spending will return to budgeted levels.
Title
SUBSITUTE-Amending to 2020 Adopted Operating Budget to appropriate $275,000 $240,000 from Metro fund balance for supplies in order to authorize the Interim Transit General Manager to exercise RFB 8400-0-2015 option under 2.6 (d) to, upon termination of the agreement under 2.6 (a), purchase all tires furnished by the Contractor, which shall include fully legible copies of all use and maintenance records pertaining thereto, by paying for the mileage remaining on the tires at the lease rate then in effect between the Parties.
Body
WHEREAS, the City of Madison entered into a contract with Bridgestone Americas Tire Operations, LLC, authorized by RES-15-00471 (file #37937); and,
WHEREAS, RFB #8400-0-2015, 2.6 (d) allows the City's sole option to, upon termination of the agreement, purchase all tires furnished by the Contractor; and,
WHEREAS, purchasing the tires will offer significant operational efficiencies;
NOW, THEREFORE, BE IT RESOLVED THAT THE Interim Transit General Manager is authorized to exercise the City's option to purchase tires furnished by Bridgestone Americas Tire Operations, LLC under the lease agreement with the City of Madison terminating on June 30, 2020...
Click here for full text