San Francisco County officials have taken a significant step to ensure the continued operation of the city's public transportation system by approving a new contract with Michelin North America for tire leasing services. During a recent government meeting, the Board of Supervisors voted to authorize a five-year contract valued at $13.5 million, with an option to extend for an additional seven years, bringing the total potential value to $18.9 million.

The contract is crucial for the San Francisco Municipal Transportation Agency (SFMTA), which operates a fleet of 860 buses and trolley buses. The new agreement will cover the leasing of an unlimited number of tires and associated services, including tire replacement, rotation, and maintenance. The current contract with Michelin, which began in 2018, is set to expire soon, making the approval of this new contract urgent.

Despite the necessity of the contract, concerns were raised regarding the lack of performance metrics in the agreement. Supervisors highlighted the importance of tracking tire lifespan and maintenance to ensure accountability and cost-effectiveness. The Budget and Legislative Analyst (BLA) noted that while the contract requires Michelin to track tire mileage and installation dates, there is no independent verification of performance, which could lead to inefficiencies.

In response to these concerns, the Board decided to continue discussions for one week to allow for further evaluation of potential performance metrics that could be incorporated into the contract. This decision aims to enhance oversight and ensure that the SFMTA can effectively manage its tire leasing program.

The approval of this contract is expected to streamline operations for the SFMTA, reducing the burden of tire management on the city while ensuring that public transportation services remain reliable and efficient. The Board's commitment to revisiting performance metrics reflects a proactive approach to governance, aiming to balance immediate operational needs with long-term accountability.