ADMINISTRATIVE REPORT

Date: December 29, 1998
Author/Local: Susanne Siu/7258
RTS No. 443
CC File No. 2801

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services, Chief Constable and Manager of Purchasing Services
SUBJECT:	Award of Proposal No. 25-98-04 Request for Proposal for Towing Services for the City of Vancouver

RECOMMENDATION

THAT Council accept the proposal meeting City's requirements from Buster's Towing (1987) Ltd. for towing services for a five (5) year period, from February 15, 1999, subject to a contract satisfactory to the Director of Legal Services.

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 $300,000.00 are referred to Council.

BACKGROUND

On September 8, 1998, City Council approved the recommendation set out in the Towing Services Contract Restructuring report that the City set rates for the towing of impounded vehicles and equipment to the ICBC rate schedule for non-accident tows in order to improve unsatisfactory service response.

As reported to Council previously, the City is presently examining the development of a new storage parkade to replace the existing bylaw impound lot. Consequently to pay for the new parkade, the City requires that the revenue generated from storage fees accrue to the benefit of the City. This would allow the City the flexibility to introduce a first day

storage fee or higher storage fees to generate the funding should a new parkade be required in the future. Under the current contract, the storage fee, which becomes due and payable after the vehicle has been left for longer than one day, accrues to the benefit of the contractor, not the City.

The City's portion of the contract, estimated at $298,000, is funded by various accounts including the Police towing and fleet maintenance budgets, the Engineering fleet maintenance and equipment capital budgets and the Engineering Parking and Enforcement and abandoned vehicle towing budgets.

DISCUSSION

On October 2, 1998, a Request for Proposal ("RFP") for the towing of impounded vehicles; towing, disposal and administration of abandoned vehicles; and towing of disabled City vehicles, was issued to various vendors. The RFP closed on November 4, 1998 and the responses were referred to the General Manager of Engineering Services, the Chief Constable and the Manager of Purchasing Services for report.

Two firms responded to the RFP: Buster's Towing and Unitow Services (1978) Ltd.

Unitow submitted three proposals, all of which deviated substantially from the requirements set out by the City in the RFP. Two of the Unitow proposals were based on the City using Unitow's storage lot for the bylaw impounded vehicles and the abandoned vehicles, however, given that the location of the Unitow lot was not acceptable to City staff, these proposals were not given further consideration.

Two aspects of Unitow's proposals were deemed to be unacceptable. Firstly, Unitow proposed that the storage fees accrue to Unitow's benefit and further, be charged immediately after the vehicles' entry into the storage facility and for each twenty-four (24) hour period thereafter. Unitow proposed a storage fee of $14/day.

This arrangement would not allow the City to retain the storage fees required for future construction of a new parkade.

Secondly, by requiring the payment of a storage fee immediately after entry into the lot, this would effectively raise the cost of a tow by $14 (approximately 37%) above those approved by Council on September 8, 1998.

While all of the Unitow proposals offered "revenue sharing" as an incentive, if the City were to also charge for the first day storage at the same rate proposed by Unitow, the City would gain a potential revenue of approximately $336,350 to $582,148 (depending on the number of bylaw tows) per year which exceeds the funds generated through a "revenue sharing" arrangement with Unitow.

Consequently, given that Buster's Towing (1987) Ltd. submitted a proposal which complied to the City's requirements, that they have suitable equipment to meet the City's demands and have excellent references, we are recommending that award be made to Buster's Towing (1987) Ltd. and that a contract for towing services be issued for a five (5) year period, commencing February 15, 1999.

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(c) 1998 City of Vancouver