A city contractor has to give the city of Tucson a $37,000 credit after overcharging for tires, records show.
The city reached an agreement with Purcell Tire Co. after completing a two-month investigation into the allegations, officials said late last week.
The city’s purchasing director, Marcheta Gillespie, ruled out allegations of kickbacks to city employees outlined in a six-page anonymous letter sent to media outlets and the city.
The letter, signed by a “concerned taxpayer” contained several invoices showing the city paid more than the government rate for Hankook-branded tires.
For example, the city paid Purcell Tire $368.72 for four tires in January, although government rates suggest the price for those particular tires should have been $311.01.
The city contract with Purcell Tire calls for Goodyear-branded tires, to be sold at the government rate, to be put on city vehicles.
Gillespie said the city might have a stated preference for Goodyear tires in its contract, but substitutions are not uncommon because the city can’t always afford to wait for the preferred tires to be in stock.
The company has agreed to give credit to the city for overcharging on some tires.
And new policies have been put in place to make sure it doesn’t happen again, Gillespie said.
A manager for Purcell Tire declined to comment on the settlement.
Since 2012, the city has bought roughly $900,000 worth of tires from Purcell, records show.
