Towing/Tow Lot Operation
Goods and Services Contract:

City of Richmond, Virginia, and Manchester Marketing, Inc. T/A Seibert’s Towing

Questions:

1.  Is the contract void because the appropriate board did not review the contract as required by the Code of Virginia?

Section 46.2-1217 requires a city council to appoint a board to advise the council with regard to the appropriate provisions of a contract for towing services. The Manchester contract was reviewed by a board previously established by the council for another purpose under Section 46.2-1233.2 of the Code of Virginia.  The allowed compositions of the two boards are different.  The requirements imposed on the two boards are different.  The Section 1233.2 board is required to review “ordinances” proposed under authority of two other specific sections but does not mention “contracts” nor Section 46.2-1217.  Based on a search of council actions, it appears that the council did not authorize the 1233.2 board to serve as the 1217 board.  Apparently the contract was sent to the 1233.2 board by Ms. Victoria Benjamin without required authorization.

Posted July 1, 2010.

2.  Is the contract void because the Manchester bid was not based on each towing charge as required by the Request For Proposals?

At the time the Request for proposals was issued, the existing payment arrangement was based on the number of citations issued.  The drafters of the Request For Proposals decided to reject that arrangement and base the payment on the number of tows performed.  Historical data for the total number of tows was not available to the drafters, but the number is significantly higher than the number of citations issued.

Manchester’s proposal based payments on the number of citations.  The city code requires rejection of proposals that are not responsive.

Note:    All grammatical and punctuation errors from the Request For Proposal’s text are retained. All emphasis is added.

Part IV of the Request For Proposals states:

5.1  Authorized Charges or Rates.

A. The Contractor shall ensure that all charges and rates are reasonable and customary, but in no event shall the towing charges or rates exceed the following amounts for the services described:

Accident (Day) $125.00

Accident (Night) 7 p.m. – 7 a.m. $140.00

Disabled/Stolen Vehicles $75.00

Illegally parked vehiclesParking Ticket states $65.00

Et cetera

Addendum Number 2 to the Request For Proposal states:

Revisions to RFP Part IV Special Conditions.

5.1) The $65 rate for tows is currently set by City Code. We anticipate that rate will increase in the near future, at such time; this contract will be modified to allow the vendor to collect the higher rate.

5.1) Vendors need to bid based on ratio that they would pay the city per tow. (Currently the City gets $15 from the $65 tows. etc.

City Code Sec. 74-71. Competitive negotiation for nonprofessional services. (g) Award. Award shall be made to the responsible and responsive offeror whose proposal is determined in writing to be the most advantageous to the city

City Code Sec. 74-4. Definitions.  Responsive bidder means a person who has submitted a bid which conforms in all material respects to the invitation for bids.

The Manchester  bid:

Seibert’s Towing will also remit to the city on a monthly basis a flat rate per citation issued, regardless of whether it is collected from the vehicle owner or not. The rate will be $17/citation, representing a 13% increase above the current citation remittance rate.

Posted July 4, 2010.

3. Is the contract void because it is not substantially in the form approved by city council?

APPROVED CONTRACT:

THE CITY OF RICHMOND HEREBY ORDAINS:

§ 1. That the Chief Administrative Officer and the Director of Procurement Services, for and on behalf of the City of Richmond, be and are hereby authorized to execute a Goods and Services Contract between the City and Manchester Marketing, Inc. T/A Siebert’s Towing for towing-related services and tow lot operation in accordance with section 46.2-1217 of the Code of Virginia (1950), as amended. Such contract shall be approved as to form by the City Attorney and shall be substantially in the form of the document attached to this ordinance. § 2. This ordinance shall be in force and effect upon adoption.

1. Contract Documents. This Contract shall consist of the following Contract Documents, listed in order of precedence from first to last:

A. This Goods and Services Contract between the City and the Contractor.

B. The Terms and Conditions attached to the Request for Proposals (as modified by any addenda).

C. The Contractor’s Final Revised Proposal dated October 16, 2009.

D. The Statement of Needs attached to the Request for Proposals (as modified by any addenda).

E. The Instructions to Offerors attached to the Request for Proposals (as modified by any addenda).

All of these documents are incorporated herein by reference.

SIGNED CONTRACT:

3. Contract Documents. This Contract shall consist of the following Contract Documents, listed in order of precedence from first to last:

A. This Goods and Services Contract between the City and the Contractor.

B. The Special Terms and Conditions attached to the Request for Proposals (as modified by any addenda).

C. The Terms and Conditions attached to the Request for Proposals (as modified by any addenda).

D. The Contractor’s letter to the City dated October 16, 2009.

E. The Contractor’s Proposal dated June 2, 2009.

F. The Statement of Needs attached to the Request for Proposals (as modified by any addenda).

G. The Instructions to Offerors attached to the Request for Proposals (as modified by any addenda).