TITLE
Recommendation to adopt Specifications No. RFP FS20-019 and award contracts to A & A Towing, Inc., and Supreme Towing Service, Inc., of Long Beach, CA, and Seventh Street Garage, of Wilmington, CA, for as-needed vehicle towing services, in an annual amount of $352,225, with a 10 percent contingency of $35,223, for a total annual aggregate amount not to exceed $387,448, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; authorize City Manager, or designee, to execute all documents necessary to enter into the contracts, including any necessary amendments; and
Increase appropriations in the Towing Fund Group in the Financial Management Department by $117,448, offset by revenue from towed vehicle fees. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with A & A Towing, Inc., Supreme Towing Service, Inc., and Seventh Street Garage, for as-needed vehicle towing services.
City staff are equipped to perform light duty tows; however, large vehicles and RV tows often require specialized equipment for which contractors are uniquely equipped to handle. In addition, requests for towing services have increased by 17 percent over the last three fiscal years (for the periods from October to February). Contractors are necessary to handle the unpredictability of towing requests and keep tow response times to an acceptable level. The flexibility and reliability afforded by the use of contractors, in addition to City staff, allows timely response to alleviate traffic congestion, removal of barriers to street sweeping, and assist in clearing areas for City special events and other City operations.
The Request for Proposals was advertised in the Long Beach Press-Telegram on December 19, 2019, and 11 potential proposers specializing in towing services were notified of the RFP opportunity. Of those proposers, eight downloaded the RFP via the City’s electronic bid system. The RFP document was made available from the Purchasing Division, located on the sixth floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing. An RFP announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which was sent to 22 local, minority-owned, and women-owned business groups. Five proposals were received on January 30, 2020. Of those proposers, one was a Minority-owned Business Enterprise (MBE), one was a Women-owned Business Enterprise (WBE), none were certified Small Business Enterprises (SBEs), and two were Long Beach businesses (Local).
The selection committee determined that A & A Towing, Inc., and Supreme Towing Service, Inc., of Long Beach, CA (Local), and Seventh Street Garage, of Wilmington, CA (not a MBE, WBE, SBE, or local), were the lowest qualified proposers based on their demonstrated competence, expertise and availability of key personnel, financial stability, and reasonableness of cost.
Local Business Outreach
In an effort to align with the City's outreach goal, Long Beach businesses are encouraged to submit proposals for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids database to download RFP specifications. Through outreach, 22 Long Beach businesses were notified to submit proposals, of which one downloaded and none submitted a proposal. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the proposer pool.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson on March 30, 2020, Deputy Finance Director Sandy Tsang-Palmer on March 25, 2020, and by Budget Management Officer Rhutu Amin Gharib on March 26, 2020.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. RFP FS 20-019 and award contracts concurrently is requested on April 14, 2020, to ensure contracts are in place expeditiously.
FISCAL IMPACT
The total annual contract amount for towing services will not exceed $387,448, including a 10 percent contingency, for a period of two years. An appropriation increase is requested in the Towing Fund Group in the Financial Management Department in the amount of $117,448 to accommodate prices submitted by the proposers, offset by revenue to be received from towed vehicle fees. The incremental appropriation increase for the annual contract will be requested through the FY 21 budget development process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. Award of these contracts will provide continued support to our local economy by assisting in the preservation of employment for 15 full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
ACTING CITY MANAGER