Fiscal Note
The total estimated cost of the tire lease is $1,408,243, paid over a five-year period. In 2015, the Transit Utility Adopted Operating Budget includes $260,000 for tire lease expenses. Under federal regulations, this tire lease is eligible for 80% federal funding.
The contract has a 4% increase built in for each of the next four years and those amounts will be included in subsequent budgets and require Common Council approval as part of the budget process.
Estimated costs for future years:
2016 - $270,400
2017 - $281,216
2018 - $292,464
2019 - $304,163
Title
Authorizing the Mayor and the City Clerk to enter into an agreement with Bridgestone Americas Tire Operations, LLC for provision of leasing tires to Metro Transit for a five-year period beginning on July 1, 2015.
Body
Metro Transit, a division of the City of Madison, leases tires for its entire fleet of buses. The current five-year lease ends on 6/30/15. Metro Transit developed a Request for Bids (RFB) which was advertised, and two responsive and responsible bids were received.
WHEREAS based on the review of the bids received, Bridgestone Americas Tire Operations, LLC was selected and a proposed contract was prepared; and
WHEREAS said mileage tires will be supplied over the five years at an estimated total cost of $1,408,243;
NOW, THEREFORE, BE IT RESOLVED that the Mayor and the City Clerk are hereby authorized to enter into a five-year lease agreement with Bridgestone Americas Tire Operations, LLC for mileage tires at an estimated cost of $1,408,243, 80% of which is eligible for Federal funding.