Fiscal Note
The proposed towing contract is administered by the Parking Division and serves City towing and storage needs incurred by Madison Police Department, Parking Enforcement, Fleet Services, as well as Metro Transit.
The proposed contract with Schmidt’s Auto Inc. is anticipated to cost $650,000.00 to $700,000.00 a year over five years, with two one- year optional renewal periods. Towing costs are $110.00 per tow. Prices shall remain firm through the five year initial term of the contract. Requests for price adjustments for the optional renewal terms shall not exceed the CPI and shall be subject to the City’s approval. Costs in 2022 will be accommodated within Parking's existing budget appropriation. Parking's 2023 operating budget request includes increased amounts for towing services to account for the new contract.
Title
Approving Towing Contract with Schmidt Auto Inc.
Body
WHEREAS, the City’s current towing contract is set to expire on October 1, 2022; and
WHEREAS, there is a need for towing services to keep travel lanes free, remove vehicles from authorized spaces, and transport city owned vehicles; and
WHEREAS, Finance and the Parking Division issued a Request for Proposals to provide towing services in 2021; and
WHEREAS, an evaluation team consisting of staff from Parking Enforcement, Parking Utility and Court Services conducted a detailed evaluation, scored each of the proposals using criteria that included cost, qualifications, capability, storage facilities, equipment and references; and
WHEREAS, the RFP included new provisions aimed at decreasing time, effort, and travel needed for people to recover their vehicles, with the specific intent of decreasing the burden imposed by towed vehicles; and
WHEREAS, Schmidt’s Auto Inc. was the successful proposer in the competitive selection process;
WHEREAS, under MGO 4.26(3)(e), multi-year service contracts that average more than $100,000 per year, and service contracts for a duration of more than 5 years require Common Council approval and signature by the Mayor and City Clerk;
NOW THEREFORE BE IT RESOLVED, that the Mayor and City Clerk are authorized to negotiate and execute a five-year contract with Schmidt’s Auto Inc. for towing services; with the option for two 1-year renewals
BE IT FINALLY RESOLVED, that the Parking Division shall administer said contract as part of their operating budget.