ADMINISTRATIVE REPORT Date: May 30, 1997 File No. CREP 075 CC File No. 1801-1 TO: Vancouver City Council FROM: General Manager of Engineering Services, Chief Constable and Manager of Purchasing Services SUBJECT: Contract Extension - Contract No. 25-94-02 Towing Services for the City of Vancouver RECOMMENDATION THAT Council approve the extension of the contract to Unitow Services (1978) Ltd. for towing services for the City of Vancouver, for an additional 12-month period from July 1, 1997. COUNCIL POLICY The policy of Council is to award contracts for the purchase of equipment, supplies and services that will give the highest value based on quality, service and price. Contracts with a value over $300,000 are referred to Council for award. BACKGROUND On June 16, 1994, Council awarded a 36-month contract to the overall low bidder, Unitow Services (1978) Ltd., for towing services for the City of Vancouver, which expires on June 30, 1997. The contract provides for two 12-month extensions unilaterally by the City. This is the first 12-month extension. The contract provides for towing services to remove vehicles at the request of members of the City of Vancouver Police Force and the City Engineering Services, to specific storage places and other places within the City and occasionally outside the City, as directed from time to time. The contract includes the following towing services, as specified in the document: "The contractor perform such towing services when called in each of the following circumstances: (a) all towing of impoundments for violation of City By-laws, or pursuant to Sections under the Motor Vehicle Act; (b) all required towing of vehicles in police custody; (c) all towing of vehicles within the City limits or from other areas as directed by the Police Department, required for Police investigations; (d) all towing of Police Vehicles; (e) all towing of City-Owned Vehicles (excluding Police Vehicles); (f) all towing of Abandoned Vehicles." The contract is primarily funded by the traffic by-law violators, with the City s cost restricted to those incurred for the towing of City-Owned, Abandoned and Police vehicles, or private vehicles required for Police investigation. DISCUSSION Prices are firm for the first year of the contract, with a specific formula related to the Consumer Price Index for Vancouver regulating the price changes in subsequent years. This results in an allowable increase of 0.51% from July 1, 1997 to June 30, 1998. Depending on the individual item, the adjustment is made to the nearest dollar ($1.00), twenty-five cents ($0.25) or cent ($0.01), as specified in the contract. A comparison of prices from 1994 to the proposed impounding charges, payable by the public, are as follows: 1994 1995 1996 Proposed Rate Rate Rate 1997 Rate (Remains unchanged from 1996) For the removal Under 5500 of any impounded kg. GVW $21.95 $21.95 $21.95 $21.95 vehicle, including the first day Over 5500 storage charge. kg. GVW $35.00 $36.00 $37.00 $37.00 Additional daily storage charge after the day of impounding. $ 8.50 $ 8.75 $ 9.00 $ 9.00 The Province of British Columbia has recently made changes to the Motor Vehicle Act, referred to in (a) above, for the longer term impoundment of motor vehicles by Police officers under the Vehicle Impoundment Program. As this is a new program, the City has asked for and received, from Unitow, written confirmation that it will comply with the rules and regulations for impound lot operators published by or on behalf of the Province of British Columbia. All other terms and conditions would remain the same. Considering that Unitow Services (1978) Ltd. has been a satisfactory supplier, it is recommended that the contract be extended for an additional 12-month period. * * * * *