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Minutes 10-15-08 MINUTES OF THE TOWING CONTRACT MEETING OF OCTOBER 15, 2008, AT 10:00 A.M., AT THE INTRACOASTAL CLUBHOUSE, BOYNTON BEACH, FLORIDA PRESENT: Lori LaVerriere, Assistant City Manager Steve Weiser, Fleet Administrator Carol Doppler, Purchasing Agent Police Sgt. Craig Anthony Police Chief Matt Immler Jamilla Alexander, Assistant City Attorney Scott Blasie, Code Compliance Administrator I. Welcome/Introductions Ms. LaVerriere called the meeting to order at 10:03 a.m. She introduced herself and City staff, and thanked everyone for attending. II. Outline of Meeting A signup sheet was circulated. The meeting was noticed as a public meeting and was being recorded. Minutes would be prepared. Ms. LaVerriere noted the City wished to gather facts and information in order to prepare a report for the City Commission. Ms. LaVerriere advised the purpose of the meeting was to discuss two provisions in the contract: (1) City fleet tows; (2) storage, and not to negotiate a towing contract. III. Discussion: Charges for City Fleet Tows Ms. LaVerriere noted in consideration of a new towing service contract, a staff report had been provided at the August 19, 2008 City Commission meeting which identified various contract models. The existing contract covered a two-year period and included a one-year extension. The extension had expired, but was further extended until a new RFP was issued. Staff sought policy direction from the Commission and suggested franchises and rotation contracts, or modifications of either option, be considered. Four key models were identified, and the pros and cons were set forth for each model. Two recommendations were made by Staff to the Commission with regard to the provision for: (1) City fleet vehicles; and (2) long-term storage. Several vendors attending the Commission meeting were not in agreement with staff's recommendations. Mayor Taylor therefore requested staff meet with the vendors in order to reach a consensus. Meeting Minutes Towing Contract Boynton Beach, Florida October 15, 2008 Ms. LaVerriere noted the City utilized six tow vendors under the existing contract. All registered wrecker/towing service providers located within the City limits were invited to attend this meeting. Ms. LaVerriere noted the City provided a substantial amount of work to the vendors contracting with the City. Research revealed it was not uncommon for the City's fleet vehicle tows to be free of charge. Currently, the City paid a reduced rate of 50%. The cost to the City for fleet tows and storage was approximately $45,000 per year, and it was intended this be reduced. The general consensus reached at the August 19, 2008 Commission meeting was to remain with the rotation style contract. However, no decision was reached, and the issue remained open for discussion. Ms. LaVerriere requested the vendors identify themselves for the record and provide comments for the City's edification. Drew Zuccala, Zuccala's Wrecker Service, had been towing for the City for approximately 30 years and had operated his business at the same location since its inception. He had previously enjoyed exclusive rights to tow for the City for a period of 10 years. Mr. Zuccala was the owner of 11 properties in the City. He contended for 100 tows, he was compensated by the City for only 50 and, for the most part, he was not paid for junking. The minimum cost of a vehicle needed to tow a City garbage truck was $250,000, and the towing operator was required to be certified. Most calls required a minimum of two hours. The last call required five hours on a weekend, as the brakes on the vehicle would not release. Mr. Zuccala contended the City enjoyed increased tax revenues as a result of continued growth. He pointed out a vendor in the audience was paying a franchise fee of $142,000 for Delray Beach's contract and, after several years of towing, his rates had increased to correlate to the County's rates. Mr. Zuccala's recent work for the City included a tire change and a jumpstart, for which he was paid $30. His cost to send a driver out was $28. As no profit was realized, he felt he had been performing services to the City free of charge. He did not believe the City should expect free services. Out of six towers, only two or three towed the City's heavy equipment. Mr. Zuccala's company towed heavy equipment at a rate of $250, and additional expenses were incurred for fuel, oil and tires. He did not believe other vendors for the City were required to "give something away." David Floering, Eastern Towing, inquired whether the City required any other vendor to provide services free of charge. Carol Doppler, Purchasing Agent, pointed out towing was an exclusive service. If the contract did not exist, Mr. Floering would not have the City's business on a rotational basis, and other opportunities would be lost. 2 Meeting Minutes Towing Contract Boynton Beach, Florida October 15, 2008 Mr. Zuccala felt the City expected towers to provide additional time free of charge, while not expecting this from other vendors. He contended he had provided a discount rate for City vehicles, and towed heavy-duty equipment for less than half of what he normally charged. The newer trucks were required to have Environmental Protection Agency (EPA) certification, which increased the price of trucks from $70,000 to nearly $90,000. Ms. Doppler noted these costs would be considered for inclusion in the specifications for the Request for Proposals. The City felt it was providing business to towers, thereby saving towers the expenses of advertising. Mr. Floering questioned whether the City required any other vendors to provide services at a discounted rate of 50%, or provide services free of charge in an emergency. Steve Weiser, Fleet Administrator, believed the economy was an element of the cost of doing business. He pointed out towers were the only vendors to which the City funneled business, and it was not uncommon for City tows to be provided free of charge. Police-directed tows resulting from traffic accidents were three or four times the amount of City tows. While Mr. Weiser was aware of the increased costs for equipment, it was crucial the City conduct business efficiently and negotiate in the best interests of the City and its citizens. Craig Goldstein, West Way Towing, indicated towers were willing to provide free tows to cities contracting with one or two vendors, as they were provided a substantial amount of business. With six vendors on the rotation list, Boynton Beach was not providing enough work. He noted Delray Beach utilized one vendor, and Boca Raton, two. Ms. Doppler noted while limited rotation could be considered, the City Commission wished to maintain more than two vendors on the list in case of an emergency. Ms. LaVerriere agreed the current number of vendors included in the rotation was not conducive to free tows. Mr. Zuccala pointed out three out of the six vendors on the list towed heavier equipment, and the other three should be compensated in some manner. It was suggested Class "A" and Class "B" vehicles be towed free of charge. Ms. LaVerriere encouraged the vendors to express their opinions, which she would communicate to the Commission. The vendors would be invited to the Commission meeting at which the towing contract would be discussed. Steve Beck, Beck's Towing, averaged 16 to 17 tows a month, which, he opined, did not provide enough business to warrant free tows. If the City utilized one or two vendors, additional business could be provided, and free tows would be a possibility. Mr. Weiser believed the utilization of six or seven vendors resulted in an administrative nightmare for the City. Ms. LaVerriere noted the City of Lantana maintained 13 vendors on its contract. She noted the City Commission did not wish to put the "small guy" out 3 Meeting Minutes Towing Contract Boynton Beach, Florida October 15, 2008 of business, was sensitive to sustaining businesses in the City, and leaned toward limited rotation. From comments made, it appeared the vendors preferred limited rotation as well. Mr. Goldstein believed police towing related more to storage than to towing. Police Chief Matt Immler commented on the lack of storage space and accessibility to vehicles stored by the vendors. Kevin Piller, Vrchota Corp., had been towing for the City of Boca Raton for approximately one year pursuant to a franchise agreement with two vendors. He noted the contract required storage costs be borne by his company. Police Sgt. Craig Anthony discussed responsibility for storage costs and whether a contract superseded Florida law. Attorney Alexander noted the tow contract could be more restrictive, and this could be further explored. Chief Immler noted that while the Police Department's budget was limited for towing and storage expenditures, costs related thereto had increased substantially. Chief Immler was exploring the feasibility of constructing an inside storage unit. Mr. Goldstein suggested the City purchase containers that could be stored on City-owned, fenced-in, vacant property. The 40-yard containers, which could house two or three cars, could be purchased for $2,000 or $3,000, were air-tight and difficult to break into. The containers lasted for approximately 10 years and survived hurricanes. Scott Blasie, Code Compliance Administrator, pointed out City-owned property had been designated for public use, and there were no provisions for exterior storage. Ms. LaVerriere suggested existing properties be utilized. She inquired whether the vendors would be willing to consider purchasing one or two containers if something could be worked out. Mr. Goldstein advised he was well acquainted with the vendors in attendance and believed they would be willing to work with the City. He advised he was on the Board of Commissioners for Consumer Affairs and would share the events of this meeting with the Board. It was his opinion none of the vendors wished to be removed from the rotation. Chief Immler commended the six vendors with whom the City contracted for services. While the City was not bound by a particular policy or procedure, measures were sought to cut the budget. In particular, it was believed storage and towing expenditures could be reduced. Mr. Beck noted vendors on rotation were not motivated to provide services without compensation and, if asked to do so, would likely be "conveniently unavailable." It was suggested the City pay a fee, even if on a reduced basis. 4 Meeting Minutes Towing Contract Boynton Beach, Florida October 15, 2008 Mr. Goldstein believed a balance should be achieved with regard to the calls from the City handled on a rotation basis. Multiple trucks were needed for City towing so that calls were not missed. If a tower was called out to provide a service for which he was not compensated, such as a tire change, the tower should have the opportunity to accept the next "paid" call from the Police Department. The elimination of two lists was advocated. Ms. LaVerriere suggested utilizing one list. Fleet calls would go to Dispatch and would not be rotated until a Police Department, or paying call, was received. Chief Immler alluded to possible difficulties with the current Computer-Aided Dispatch (CAD) system, and Ms. LaVerriere pointed out the software could be changed. Discussion ensued as to what services the vendors would provide free of charge. Mr. Zuccala suggested free services be limited to Class "A" vehicles and road services. It was suggested Classes "8," "C," and "0" vehicles be charged at the reduced rate of 50%. Mr. Weiser believed it would probably be beneficial for the City to tow its own vehicles, which the County had been doing. Mr. Floering indicated he could provide free services Monday through Friday, as long as he was not awakened at 3:00 a.m. Mr. Beck believed most towers paid their drivers a salary plus commission on after-hour calls. Mr. Weiser noted most towing businesses operated 24 hours a day, seven days per week. Mr. Beck believed a vendor towing 100 cars per month would be more inclined' to provide free services. He felt it would be ludicrous to expect a driver to change a tire on a police vehicle at 3:00 a.m., free of charge, for only 16 tows per month. Mr. Goldstein believed the City would probably be provided free tows if one or two, rather than six, vendors were utilized. He contended the vendors would be willing to "give a little to get more." Mr. Zuccala believed it would be preferable to continue with the rotation process. Ms. LaVerriere asked for a consensus on the limited rotation process, utilizing one or two vendors. Mr. Goldstein noted he was in favor of the process. He believed the most favorable course of action would be for all the vendors to remain on rotation, and to work with the City by eliminating all Class "A" charges, including road service and local tows up to one ton. Ms. LaVerriere polled the vendors and a consensus was reached as follows: . The rotation status should be maintained with limited rotation; and . The City should be provided free road service and tows up to one ton, within City limits, "24/7" for Class A vehicles (City fleet vehicles). 5 Meeting Minutes Towing Contract Boynton Beach, Florida October 15, 2008 The language of the contract was reviewed and included the forfeiture process and criteria for mileage. The number of companies to be included on the rotation list was also addressed. Ms. LaVerriere polled the vendors as to their preference, and the responses were as follows: . Drew Zuccala (Zuccala's Wrecker Service): Three to five; . Jason Blakely (Blake's Towing): Three to five; . Steve Beck (Beck's Towing): No more than 4; . Mike Damilio (Anytime Towing): Anyone holding a business tax receipt should be included on the list; . Lee Dornot (L & N Towing): Did not wish to comment; . Doug Faulkenbury (JD's Towing): Five to seven; . Kevin Piller (Vrchota Corp.): Two companies. The City should receive a franchise fee and towing free of charge; . Craig Goldstein (Westway Towing): One to two towers, with a franchise fee and free towing for the City; . David Floering (Eastern Towing): The list should be limited to six vendors; . Earl Scott (Scott Towing): The list should be limited to six vendors. IV. Discussion: Charges for Storage Ms. LaVerriere noted efforts to locate a storage facility would continue, and staff would explore the feasibility of purchasing containers. V. Closing Remarks Ms. LaVerriere thanked everyone for their. input. She would prepare a report for the Commission's review and anticipated the matter would be addressed at the November 18, 2008 City Commission Meeting. She would be contacting the vendors and requested their e-mail addresses. 6 Meeting Minutes Towing Contract Boynton Beach, Florida October 15, 2008 Adjournment There being no further business to discuss, the meeting properly adjourned at 11:44 a.m. ( D ^ ,--.-J~,p/:'-<. -......A .~~----l Stephanfe D. Kahn Recording Secretary 101708 7