Title
Contract Supplement No. 9: Fleet Tires and Tire Services [Published for 10-day Review on 5/15/2025]
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FileID
File ID: 2025-00858
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the Interim City Manager or designee to execute Supplement No. 9 to Contract No. 2020-1480 with Morgan Tire Company extending the total contract term beyond five years by an additional ninety days (90) providing a new expiration date of September 30, 2025.
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Contact
Contact: Stacey Chatman, Program Specialist, (916) 808-6711, schatman@cityofsacramento.org; Alison Kerstetter, Fleet Manager, (916) 808-1163, akerstetter@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Contract Supplement No. 9
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Description/Analysis
IssueDetail
The Department of Public Works, Fleet Management Division, oversees the procurement and maintenance of tires for vehicles used by various City departments. This includes securing contracts for replacement tires and comprehensive tire-related services such as re-treading, mounting, dismounting, and balancing. Additionally, the division coordinates emergency roadside tire services to ensure the uninterrupted operation of the City’s fleet, supporting various departmental functions. This contract is essential for maintaining the safety, reliability, and operational status of all City vehicles, from service trucks to emergency response vehicles. The current contract for these services is set to expire on June 30, 2025. The agreement originated in 2020 and has had four additional one-year terms renewed leading to its expiration on June 30, 2025. The contract was procured through a cooperative purchase agreement. Staff is still undergoing procurement for a new agreement, and with the looming sunset date, additional time is necessary to maintain the procurement of tires and tire services citywide to sustain service levels. The City of Sacramento Professional Services Policy, Section IV.9.A provides the City Council can approve extending a contract term beyond five years for contracts of $250,000 or more. As a result, staff recommends and is requesting that the Council approve the ninth supplement to the agreement, extending the agreement by an additional a 90 days to avoid interruption in services.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with City Code Section 4.04.020, Procurement Policy Section 11.A.2 and Council Rules of Procedure, Chapter 7, Section E.2.d, which mandate that unless waived by two-thirds vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to the City Council action. The use of a cooperative purchasing agreement is an exception to competitive bidding requirements. (City Code Section 3.56.240). This item was published for 10-day review in compliance with the City Code. This item was published for 10-day review on May 15, 2025, in compliance with the City Code. This item is consistent with City of Sacramento Professional Services Policy Section IV.9.A which provides the City Council may authorize extending a contract with a value of $250,000 or more beyond five years.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase of parts and services are not considered to be a project in accordance with Section 15378(b)(2) of the guidelines.
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation:
The Department of Public Works, Fleet Management Division, oversees the procurement and maintenance of tires for vehicles used by various City departments. This includes securing contracts for replacement tires and comprehensive tire-related services such as re-treading, mounting, dismounting, and balancing. Additionally, the division coordinates emergency roadside tire services to ensure the uninterrupted operation of the City’s vehicle fleet, supporting various departmental functions. This contract is essential for maintaining the safety, reliability, and operational status of all City vehicles, from service trucks to emergency response vehicles.
On June 30, 2020, the City Council passed Motion No. 2020-0176 (Contract No. 2020-1480) awarding a five-year contract to Morgan Tire Company for the purchase of fleet tires and tire services for City fleet equipment. The current contract is set to expire June 30, 2025. Staff is still undergoing procurement for a new agreement, and with the looming sunset date, additional time is necessary to continue this procurement process while still allowing the procurement of tires and tire services citywide to maintain levels of service. As a result, staff recommends that the Council approve the ninth supplement to the agreement, granting an extension of 90 to avoid interruption in services.
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FinancialConsiderations
Financial Considerations: There is no increase to the contract’s not to exceed amount and there are sufficient funds available in the Department of Public Works, Fleet Management Division’s Fiscal Year 2024/25 operating budget (Fleet Fund, Fund 6501) to purchase new tires as well as tires services through June 30, 2025. Purchases made after June 30, 2025, are subject to funding availability in the adopted budget of the applicable fiscal year.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Morgan Tire Company is an LBE.