TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Contract Assignment
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider approving contract assignment for towing services from Palace Garage to Atlas Tow.
Body
STRATEGIC IMPORTANCE:
Goal - Convenient and Reliable Service
Initiative - Service Quality
Having a contract for towing District vehicles is vital to aiding the Maintenance Department when required.
BUDGETARY/FISCAL IMPACT:
There is no budgetary or fiscal impact associated with this recommendation.
BACKGROUND/RATIONALE:
On September 16, 2015, the Board approved the contract award for heavy duty towing services, to Palace Garage. This contract expires on September 27, 2020. Recently, staff was notified that Palace Garage was retiring and officially closing its operations on February 29, 2020. This announcement included referring all of their customers to Atlas Towing, to take over existing Palace Garage accounts effective March 1, 2020. If approved by the Board, Atlas Towing services will be requested by the District on an as needed basis. Therefore, it is recommended that the Board approve this contract assignment. The term of this contract will go through September 27, 2020.
Board Policy 465 requires Board approval of contract assignments for contracts that were originally approved by the Board. As stated above, this contract was approved by the Board five years ago.
Further, on February 26, 2020, the Board authorized staff to release an Invitation For Bids (IFB) for heavy duty towing services. This procurement is currently in progress. Staff will return to the Board for approval to award a new contract to the best responsive bidder.
ADVANTAGES/DISADVANTAGES:
The advantage of approving this contract assignment is that it will provide continuity of towing services for District vehicles. There are no know disadvantages of approving this contract assignment.
ALTERNATIVES ANALYSIS:
The alternative to approving this contract assignment is to re-solicit these towing services. To re-solicit these services would take time and therefore the District would not be guaranteed the towing support as outlined in the current contract scope of work.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Staff Report No. 15-094a Heavy Duty Towing Services Contract for District Vehicles
ATTACHMENTS:
None
Prepared by:
Stuart Hoffman, Technical Services Manager
Approved/Reviewed by:
Jill A. Sprague, General Counsel
Claudia L. Allen, Chief Financial Officer
Cecil Blandon, Director of Maintenance
Gene Clark, Director of Procurement and Materials
Salvador Llamas, Chief Operating Officer