The URL can be used to link to this page

Home My WebLink About1998-08-05 PACKET 07.A.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 8-5-98 PREPARED BY: Public Safety Jim Kinsey OF2IGINATING DEPARTMENT STAFF AUTHOR ..<��<«.<�«,.<.�,�.�<,�..��.��««>��>��..,�.«.�«�� COUNCIL ACTION REQUEST Adopt a resolution awarding Southeast Towing, Inc. of Inver Grove Heights the towing contract for a duration of three years, commencing in 1999 through tne year 2001. SUPPORTING DOCUMENTS � MEMO/LETTER: Acting Captain John Mickelson dated 7-14-98 � RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL REC MENDATI ❑ OTHER: ��c� � � � ADMINISTRA�ORS COMMENTS _� �� _ � � �i ��' City Administrator Date �.«.�<��«�..«��«,�.��.��«>��,... COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER TO: Director of Public Safety James E. Kinsey FROM: Captain John A. Mickelson, Jr. �! j �� SUBJ: Towinp Contract Purpose: To award the towing contract for the City of Cottage Grove. Backqround: The City of Cottage Grove enters into a contractual agreement with a towing vendor for the purpose of providing towing services for the city at the direction of the Public Safety Department. This contract will be a 3 year contract covering 1999, 2000, and 2001. Discussion: The City Clerk of Cottage Grove, in accordance with local code, advertised for sealed bids to provide towing services for the city in accordance with tne pubiished specifications. Two (2) bids were received within the time frame published for their acceptance. The sealed bids were opened identifying the two bidders and their proposed costs. The bidders were: 1. Southeast Towing Inc, Inver Grove Heights, Minnesota, the city's current contractor. 2. Suburban Towing, Hastings, Minnesota. The bid comparison was as follows: 1999 Type I Tow Bid 2000 Type I Tow Bid 2001 Type I Tow Bid Southeast Suburban $45.00 $35.00 $48.00 $36.00 $51.00 $37.00 Type I tows account for approximately 85% to 90% of ali tows requested by the city. The bid submitted by Southeast conformed with all the requirements listed in the specifications, including the iist of equipment owned by the bidder; and the impound facility meeting local zoning codes. .; � , DATE: July 14, 1998 1999 Towing Contract 7/14/1998 Page Two The bid submitted by Suburban towing did not meet the bid specifications. There are numerous questions regarding ownership of the company, and the ability of the company to meet the terms of the contract. In 1994, Suburban Towing submitted a bid for the city contract. At that time, Mr. David Shanley claimed to be the owner of Suburban Towing. Through a detailed police investigations, it was determined that the probable owner of the company was actually Roy. G. Babcock. Subsequent to this investigation, it was determined that it was not in the bests interest of the City of Cottage Grove to award the 1994 towing contract to Suburban Towing. In 1995, Suburban again put in a bid for the towing contract. The bid listed Roy G. Babcock as the owner. In subsequent meetings with Mr. Babcock, he was unable to provide the documentation necessary to consider his bid for the towing contract. Tne 1998 towing bid by Suburban Towing is highly questionable. The new owner, David Castillo, has failed to produce any documentation about when or how he acquired the company. Mr. Castillo was contacted by phone, letter, and in person regarding this matter. I personaily spoke to Mr. Castillo at a police call he was involved with, ICR 98007694. At that time, he toid me the sale was not complete and he needed legal advice before proceeding further with Mr. Babcock or Suburban Towing. I gave Mr. Castillo a deadline for submitting the required documentation. He failed to me meet that deadline. I again contacted Mr. Castiilo and gave him additionai time to submit the documentation. He again failed to contact me or submit the required documentation. The deadline has long since past. I consider the Suburban Towing bid incomplete, if not fraudulent, and therefore no longer in consideration. In addition, the current owner of Suburban Towing, Mr. Roy Babcock, is currently the subject of an active criminal investigation. At least one investigation involves Suburban Towing and the financiai operations of the corporation. f am aiso aware tfiat at least one financial institution, Lake Eimo Bank, is proceeding with a repossession action regarding Suburban Towing Trucks. I have strong concerns that Suburban Towing would not be able to meet any of the terms of the towing contract without their repossessed trucks. Recommendation: It is my recommendation that the City of Cottage Grove award the towing contract to the second low bidder, Southeast Towing, Inc. of Inver Grove Heights, MN, based upon the fact that the low bidder, Suburban Towing, Inc., of Hastings, did not comply with the required specifications as provided. JAMldjm RESOLUTION NO. 98- RESOLUTION OF FINDINGS REGARDING TOWWG CONTRACT BID AWARD WHEREAS, The City of Cottage Grove (hereinafter the "City"} finds the following: 1. Tne City annually contracts with a towing vendor for towing services. 2. The City, by choice, advertised for bids for towing services and received two closed bids within the time frame set by the advertisement. 3. In June, 1998, the City opened the bids for review. 4. Southeast Towing, Inc., of Inuer Grove Heights, MN., bid $45.00 for each type I tow in 1999, $48.00 for each type I tow in 2000, and $51.00 for each type I tow in 2001. 5. Suburban Towing, Inc., of Hastings, MN., bid $35.00 for each type I tow in 1999, $36.00 for each type I tow in 2000, and $37.00 for each type i tow in 2001. 6. Suburban Towing had bid for the towing contract in 1994 and 1995. At the time of these bids, ownership of tne corporation was in question. Subsequent in�estigations by the police department resulted in Suburban Towing being disqualified for the towing contract. The bid was then awarded to the next lowest bidder. 7. The bid submitted by Suburban Towing for 1999, 2000, and 2001 is not complete or acceptable and should not be considered. 8. The Suburban bid lists the owner as David Castillo. Suburban Towing was contacted by pnone on 6/19/98 regarding the bid. Mr. Castillo would not take the call. The secretary stated she would take any message for Mr. Castillo. Mr. Castillo was requested to provide additional personal information and proof of ownership of the corporation. A deadline of 6/26/98 was given for the documentation to be considered. By 6/26/98, Mr. Castillo had not submitted the documentation within the time frame given. He was contacted on the phone by the police department to find out why the documentation was not submitted. He requested, and was granted, and extension until 7/1/98 to submit the documentation required. 10.On 6/27/98, Mr. Castiilo had contact with members of the police department during a police incident. At that time, Mr. Castillo stated the sale of the corporation was not complete and he needed legal advice before proceeding any further with the present owner. 11.On 6/28/98, a letter was hand delivered to Suburban Towing for Mr. Castillo. This letter outlined the information required and set 7/1/98 as the final date required for submission of the ownership documents. 12.As of 7/12/98, Mr. Castillo had failed to submit the ownership documentation as required in the bid. He did not contact the city regarding an extension of time for submission. 13.On 7/13/98, a letter was hand delivered to Suburban Towing for Mr. Castillo. This letter informed Mr. Castillo that his bid was incomplete and no longer in consideration. 14. The lowest responsible bidder is the lowest bidder most likely, in regard to skill, ability, and integrity, to do faithful, conscientious work and most likely to fulfill the contract according to the terms of the agreement. NOW THEREFORE BE IT RESOLVED, the City Council of the City of Cottage Grove, County of Washington, State of Minnesota, award the City towing contract to Southeast Towing. Passed this 5th day of August, 1998. John D. Denzer, Mayor Attest: Caron M. Stransky, City Clerk