CITY OF HALLANDALE BEACH

MEMORANDUM

DATE:                        March 17, 2009                      

TO:                 D. Mike Good, City Manager

FROM:            Andrea Lues, Acting General Services Director

SUBJECT:     An Ordinance of the City of Hallandale Beach, Florida, Approving and Authorizing a Contract Amendment with AAAA Crosstown Towing and Recovery, Inc. ("AAAA") for Towing Service (First Reading) CAD # 013-03 and CMD # 010-05

PURPOSE:

To adopt on First Reading an Ordinance approving and authorizing a contract amendment with AAAA Crosstown Towing and Recovery, Inc. (“AAAA”) for towing service.

BACKGROUND:

Section 3.15 (4)(d) of the City Charter, requires an Ordinance to grant, renew or extend a Franchise Agreement.

The City requested proposals to provide towing services through RFP FY 2002-2003-002 which was released November 12, 2002.  Six companies submitted proposals, AAAA Crosstown Towing & Recovery Inc., A & B Towing, Gold Coast Towing, HTS Towing & Recovery and Tobin’s Towing Inc.  Based on the evaluation criteria in the RFP, AAAA was selected and awarded the contract for towing services commencing April 1, 2003 for thirty-six months through March 31, 2006.

On March 7, 2006 the City Commission approved the Ordinance renewing the Towing Franchise Agreement with AAAA Crosstown Towing and Recovery, Inc. for the period April 1, 2006 through March 31, 2009.

The RFP FY 2002-2003-002 contains a stipulation that the City may extend the franchise agreement subject to agreement between the City and the company. The City’s continuance with AAAA’s contract is based on continuing good performance of the terms of the contract; no issues in performance; preference for a local company, with no other local companies currently situated in Hallandale Beach that can provide needed vehicle storage area; on time payments of the revenue over the last five years; and continued involvement and support to the community.

The towing franchise agreement with AAAA Crosstown Towing and Recovery should be renewed for an extended period of three (3) years commencing April 1, 2009 through March 31, 2012.  Staff recommends the renewal of the franchise agreement.

DISCUSSION

During this contract term the City has not experienced problems with the towing company to merit consideration of another company.  There has been ongoing compliance with the franchise agreement in terms of service, accountability and on time payments of the franchise fee.  AAAA is the only company within the City with required facilities. 

RECOMMENDATION:

Pursuant to Section 3.15 (4)(d), Hallandale Beach Charter, the City Commission approve an Ordinance on First Reading authorizing a thirty-six month extension of the towing franchise agreement with AAAA Crosstown Towing and Recovery, Inc. (“AAAA”) for the period April 1, 2009 through March 31, 2012 and request approval authorizing a  contract increase of 2.5% to be effective through quarterly payments commencing April 1, 2009.   The three year contract amount would be $110,700, which is a total yearly payment of $36,900 and quarterly payments of $9,225.00.  Also, authorize the City Manager to execute all necessary agreements in the best interest of the City.

Reviewed:

_______________________________                                                   __________

D. Mike Good, City Manager                                                                           Date

_____Approved                _____Disapproved                _____Hold for Discussion

Comments:

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