SR 08-23-2022 5B
City Council
Report
City Council Meeting: August 23, 2022
Agenda Item: 5.B
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To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Transit Maintenance
Subject: Award Bid to City Terrace Service Inc. and Tip Top Tow for Heavy-Duty
Towing Services
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4421 to City Terrace Service Inc., for towing services for the City’s
fleet of transit buses and heavy-duty fire apparatus; and, Tip Top Tow
Corporation for towing services for the City’s fleet of transit buses and heavy-duty
fire apparatus for the Transportation and Fire Departments.
2. Authorize the City Manager to negotiate and execute an agreement with City
Terrace Service Inc., in an amount not to exceed $201,960, including an $18,360
contingency, over a five-year period which includes a 10% cost escalator in year
five with future year funding continent on Council budget approval; and, Tip Top
Tow in an amount not to exceed $339,625, including a $30,875 contingency,
over a five-year period with future year funding continent on Council budget
approval.
Summary
The City of Santa Monica’s Department of Transportation (DOT) currently operates 195
transit buses, and the City’s Fire Department (FD) operates 19 heavy-duty apparatus.
These vehicles sometimes experience major mechanical failures that render them
inoperable and in need of tow services to transport them to DOT’s maintenance and
repair facility to ensure that they return to service in a timely manner. Timely service is
vital to ensure vehicles are not stranded on City streets, leaving them vulnerable to
traffic collisions or tampering. The City solicited bids to provide towing services for its
Transportation and Fire Department heavy-duty vehicles. Staff recommends awarding
Bid #4421 to Tip Top Tow and City Terrace Service, Inc. for heavy-duty towing services
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in an amount not to exceed $541,585 over a five-year period which includes a 10%
contingency.
Discussion
Santa Monica’s Department of Transportation and Fire Department run continuous
operations that place high stress on the City’s fleet of heavy-duty vehicles. When these
vehicles fail, they may be towed to DOT’s maintenance facility for repair, or directly to a
vendor if serious repairs are needed that cannot be performed at a City facility.
Responsive and reliable towing services are necessary to ensure the City’s operations
can continue unhindered. Additionally, unresponsive tow service risks stranding the
City’s heavy-duty vehicles on public roads, increasing the possibility of damage to the
vehicle through a collision or act of vandalism. In the past, City vehicles have waited
overnight in excess of 11 hours for a tow due to a lack of available drivers. Staff
recommends that Bid #4421 be awarded to two bidders to reduce this possibility in the
future. The award to two vendors would allow the City to use an alternate if one vendor
has insufficient resources to provide timely service. Tip Top Tow, which was the lower
bidder, will be the primary contractor and City Terrace will serve as the backup vendor if
immediate tow service is unavailable from Tip Top Tow.
To maintain clean and safe public spaces, the vendors are required to have knowledge
of proper spill containment and pick-up procedures and to carry absorbent and oil
cleaning supplies to clean spills when needed. Towing vendors are also required to
have all required equipment, decals, and other material required by the California
vehicle code. Towing services are provided on a 24-hour, seven-day-a-week basis and
may include towing to vendor locations for repairs, upfitting, or decommissioning up to
30 miles away from the City and under varying traffic conditions.
The award of bid #4421 would enable DOT to schedule timely, reliable, tow services for
transit buses and FD apparatus that have been rendered inoperable ensuring that they
return to service without delay and minimize disruption to public roadways.
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Vendor Selection
Bidder Recommendation
Best Bidder City Terrace Service Inc., Tip Top Tow
Evaluation Criteria Price, quality of services offered, ability to perform all
services, bidder experience
Municipal Code SMMC 2.24.180
Submittals Received
City Terrace Service Inc. $567,732
Tip Top Tow $527,313
Bid Data
Date
Posted Posted On
Advertised in
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
3/7/2022 ProcureNow Santa Monica Daily Press 9 4/5/2022
Best Bidder Justification
Bids were evaluated based on the criteria in SMMC 2.24.180 including price, ability to
provide the services according to City specifications included in the bid, experience,
reputation, and training of the bidder. Both bidders provided similar bid pricing with only
an 8% difference in pricing between the two. Due to the close bid pricing and the need to
have prompt, reliable, service, staff recommends splitting the award in favor of Tip Top
tow, which was the low bidder, while providing enough funding to ensure towing is not
delayed due to lack of availability from a vendor. The bid costs above are based on an
estimated 280 hours of towing annually which includes time tow drivers spend driving
from their yard to our vehicle’s location. Actual contract amounts are reduced from their
bid cost because the total towing need will be split between two providers.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Big Blue Bus Fund and General Fund
to award contracts to City Terrace Service Inc. and Tip Top Tow for towing of transit
buses and heavy-duty Fire Department apparatus over a five-year period. Future year
funding is contingent on Council budget approval.
Contract Request - Tip Top Tow
FY 2022-23 Budget
Request Amount
Future Years’
Amount
Department/
CIP Account # Total Contract Amount
$64,350 $257,400 60600008.550012 $321,750
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$3,575 $14,300 01190001.529470 $17,875
Contract Request - City Terrace Service Inc.
FY 2022-23 Budget
Request Amount
Future Years’
Amount
Department/
CIP Account # Total Contract Amount
$37,400 $153,560 60600008.550012 $190,960
$2,200 $8,800 01190001.529470 $11,000
Prepared By: David Nanjo, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. City Terrace oaks
B. Tip Top Tow Service Oaks Form
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5.B.a
Packet Pg. 29 Attachment: City Terrace oaks (5174 : Award bid for heavy-duty towing services)
5.B.b
Packet Pg. 30 Attachment: Tip Top Tow Service Oaks Form (5174 : Award bid for heavy-duty towing services)
5.B.b
Packet Pg. 31 Attachment: Tip Top Tow Service Oaks Form (5174 : Award bid for heavy-duty towing services)