Tow contract squashed
The West Covina City Council voted 3-1 to take a towing contract out to bid instead of extending a five-year contract with Royal Coaches.
Mayor Roger Hernandez dissented because he said the extended contract could have brought an additional $120,000 annually to the city. However, City Manager Andrew Pasmant said that now the contract will go out to bid, it is very possible that the city could end up with a better agreement and therefore a larger profit.
looks like tow company had to many purchased "friends"
council made the right move here
This tow truck business is getting out of hand
I wonder if the city of covina knows that royal coaches gives Baldwin Park now with the new contract aprox. $48,000.00 to $50,000.00 a month and the city handles the administration fees and pockets that. I guess all the donations and good buddy deals are out the window. I can see why W/C is in financial trouble they don't have alot of smarts on towing. If you look at the new contract B/P has for next year it goes up another 5% wake up council. If you do the math B/P is getting roughly $600,000.00 per year plus admin. cost and there is nobody over in B/P that's a real bright. I guess somebody better wake up and smell the money that is in towing because royal coaches has had a good run and is spending alot of cash to keep it that way. If you can't figure what to charge have Touhey good buddy of Lozano go over and look at the contract for B/P and royal coaches.
The agenda item had a report attached (clink the link) that compares tow contracts from surrounding cities. Royal Coaches offered WC top dollar (more than BP). If the City Mgr Andy thinks, and if the council accepts a bid for higher tow fees they will probably get shoddy work or bounced checks.
RC offered $10K a month more than the amount in the current existing contract. The 3 council member that voted no did RC a favor-RC is saving all the additional money they offered to pay to the city. They didn't do the city or the residents a favor-especially since the staff had just given a report on the city deficit and the dire need for addition revenue. (Not to mention the dozens of residents that spoke in favor of RC, and the recommendation of the PD Chief who said in the 2 1/2 years RC has provided tow service he has not got 1 complaint which had never happed with any other tow company. Also there is an option for a 5 year extension in RC's current contract).
The agenda item had a report attached (clink the link) that compares tow contracts from surrounding cities. Royal Coaches offered WC top dollar (more than BP). If the City Mgr Andy thinks, and if the council accepts a bid for higher tow fees they will probably get shoddy work or bounced checks.
RC offered $10K a month more than the amount in the current existing contract. The 3 council member that voted no did RC a favor-RC is saving all the additional money they offered to pay to the city. They didn't do the city or the residents a favor-especially since the staff had just given a report on the city deficit and the dire need for addition revenue. (Not to mention the dozens of residents that spoke in favor of RC, and the recommendation of the PD Chief who said in the 2 1/2 years RC has provided tow service he has not got 1 complaint which had never happed with any other tow company. Also there is an option for a 5 year extension in RC's current contract).
Gadfly, If you were at the meeting the city lost nothing. The RFP requires any bidding to pay the 30% offered by both the bidders and the payment upfront of 50% of the contract, which Royal Coaches did not offer. Either way the City will receive 50% more money and half of all the money upfront. So when the City gets a new contract they will receive $113,000.00 upfront that's $3,000.00 more then they are currently receiving throughout the year and $113,000.00 more over the 12 months. I agree the current contractor has been receiving a discount on what the contract has been worth of $117,000.00 yearly for the past 2 1/2 years. That's a savings of $292,500.00 extra that went into Royal Coaches pocket not the West Covina Police and it's residents. Thank God the City put this out for bid.
RC offered $10K more in August. So its $10K a month from August to when ever the bidding process is over that the city refused.
Gadfly, the additional money was for a new 5 year contract read the agenda, not right now until bidding process was done. But right now for an additional 5 year contract starting Dec 2008 . They already have an exclusive contract for the entire city. Royal Coaches has the ability to pay the additional monies owed to the city right now. For the last 2 1/2 years they have not paid any additional money even though they have had the entire city. The item was on the agenda for the first time Dec 2, 2008, so unless they got a contract without the public being notified of this process? or was this a backroom deal your referring to?. According to the staff report (which you can get on line)their contract ends April 2009. What did they offer $10,000.00 more per month for then according to you for? It's December, the Council just heard the item so where is the additional money that you talk about right now? August, September, October and November, where's the $40,000.00 that Royal Coaches owes the City?