HomeMy WebLinkAboutA036 - Resolution approving an extension of contract for Solid Rubber Tires & Accessories for Resource Recovery July 1, 2026-June 30, 2027ITEM #:37
DATE:07-14-26
DEPT:FLEET
SUBJECT:CONTRACT EXTENSION FOR SOLID RUBBER TIRES AND ACCESSORIES
WITH SETCO, IDABEL, OKLAHOMA
COUNCIL ACTION FORM
BACKGROUND:
On November 1, 2021, the City awarded a contract to SETCO of Idabel, OK for the purchase
of solid rubber tires and related accessories used on wheel loaders operating at the Resource
Recovery facility. The original contract provided for an initial term from December 1, 2021
through June 30, 2022 with four additional one-year renewal periods.
The contract has been renewed through June 30, 2026, exhausting all renewal options
included in the original solicitation. During the contract term, the City has purchased five sets
of solid rubber tires, averaging one set annually. These tires are used on the Resource
Recovery division's two John Deere 644K wheel loaders and typically provide approximately
two years of service life per set before replacement is required.
Typically, staff would recommend issuing a new competitive solicitation at the
conclusion of the current contract term. However, Resource Recovery and Fleet
Services are preparing for the construction and transition to the new Resource
Recovery and Recycling Campus facility. Staff believes it is in the City's best interest to
postpone issuing a solicitation for a new 5-year contract until facility construction is
closer to completion and staff can better evaluate future tire requirements.
An additional set of tires is needed in the near term to maintain operation of Resource
Recovery equipment. Therefore, staff is requesting approval of a one-year contract extension
with SETCO through June 30, 2027. SETCO has provided quotation for one set of four
solid rubber tires and associated adapter plates and has agreed to hold its FY 2025/26
costs firm in the amount of $44,264.68, including freight.
Funding for tire replacement is available within Resource Recovery's tire replacement funds in
the amount of $75,512.
ALTERNATIVES:
1. Approve the one-year contract extension with SETCO through June 30, 2027.
2. Decline to extend the contract and direct staff to solicit new bids for solid rubber tires and
related accessories.
1
CITY MANAGER'S RECOMMENDED ACTION:
SETCO has successfully supplied the City's solid rubber tire needs since 2021. A one-
year extension will allow staff to meet immediate operational needs while deferring a
new long-term solicitation until construction of the new Resource Recovery and
Recycling Campus is complete. In addition, SETCO has agreed to hold current pricing
firm through the extension period, resulting in no price increase to the City. Therefore, it
is the recommendation of the City Manager that the City Council adopt Alternative #1, as
described above.
2