Report to City Council
ID: 26-0123 Page 1
TO: Mayor and City Council
FROM: Brian Mohan, City Manager
AGENDA DATE: April 7, 2026
TITLE: AWARD ROTATIONAL TOW SERVICE PROGRAM
AGREEMENTS AND ADOPT RESOLUTION SETTING
ROTATIONAL TOW SERVICE PROGRAM COST
RECOVERY FEES (REPORT OF: CITY MANAGER)
(DISTRICT: NOT APPLICABLE)
TITLE SUMMARY: Rotational Tow Service Program Independent Contractor Agreements and Adopt Resolution Setting Rotational Tow
Service Program Cost Recovery Fees
DISTRICT: Not Applicable
Recommendation(s)
That the City Council:
1. Award Rotational Tow Service Program Independent Contractor Agreements for tow services to be provided as a result of public safety emergency situations, or violation of the law or City ordinance; and
2. Adopt Resolution No. _ _ Setting Rotational Tow Service Program Cost Recovery Fees as set forth in the Resolution; and
3. Authorize City Manager to execute all related Agreements and approve any Administrative Procedures to improve service delivery efficiency.
SUMMARY
ID: 26-0123 Page 2
This report provides the recommendation for City Council to award a five-year Rotational Tow Service Independent Contractor Agreement (Agreement) to the following local Moreno Valley tow operators: (1) Pepe’s Inc. dba Pepe’s Towing Service, and (2) Valley Wide Towing, LLC after both local tow operators successfully completed the formal Request for Proposal (RFP) process.
Additionally, staff recommends that the City Council adopt Resolution No. _ _ establishing the cost recovery fees for the Rotational Tow Service (RTS) Program over the five -year Agreement term. The fees will be payable by the approved tow operators participating in the RTS Program
DISCUSSION
Rotational Tow Service Program
Chapter 12.14 (Police and City of Moreno Valley Rotational Tow Service) of the Moreno Valley Municipal Code, commonly referred to as the “Rotational Tow Service Program” (“RTS Program”) was adopted in 2011. The RTS Program as outlined in MC12.14 and in the Agreement includes rules, regulations and performance standards for tow operators contracted by the City to provide towing, storage and impoundment services requested by the City and its affiliated agencies, departments, and divisions – referred to collectively as the “City.” In most cases, such services are typically requested by the Police Department or the Community Enhancement & Neighborhood Services Division of the Community Development Department.
Tow services requested by the City are typically related to, but are not limited to:
responding to public safety emergency situations, traffic safety hazard conditions caused by vehicles which obstruct or impede the follow of traffic , the removal of illegally parked vehicles including vehicles parked in emergency lanes, walkways and/or handicapped parking spaces, disabled vehicles, dismantled vehicles, vehicles involved in accidents, impounded/forfeited vehicles, vehicles seized for evidence, vehicles that are being operated contrary to law and any vehicle -related situation subject to jurisdiction of the City.
The RTS Program also contains rules and regulations governing tow operator response time, towing, storage, equipment, storag e facilities, fees, customer relations, and disciplinary action deemed necessary for the City to effectively manage the RTS Program.
Rotational Tow Service Independent Contractor Agreements
The RTS Program Agreement provides for qualified private tow operators with their primary business operations located within the territorial boundaries of the City to be placed on the tow rotation list for the five-year Agreement term. This provides authorized tow operators with a shared opportunity to provide vehic le towing and vehicle storage services at the request of the City.
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The scope of the RTS Program is limited to requests for services made, submitted, or initiated by the City in relation to towing, storing and/or impounding certain vehicles under varying circumstances. The terms and conditions of the RTS Program shall not apply to situations involving consensual tows or requests for services made, submitted, or initiated by private citizens, residents, visitors, private businesses or any other third parti es including other public agencies not affiliated with the City.
The costs of any services provided under the RTS Program at the request of the City are not the responsibility of the City, nor the responsibility of any of the City’s affiliated agencies, departments, and divisions. Rather, the costs of any services provided by a tow operator at the request of the City under the RTS Program shall be the responsibility of the legal or registered owner of the subject vehicle or any other legally responsible party.
To be considered for participation in the RTS Program as a tow operator and placed on the RTS Program tow rotation list for the duration of the Agreement term, a tow operator must successfully compete in the Request for Proposal (RFP) process. This requires the submission of a complete proposal per the RFP and meeting all requirements as set forth in MC 12.14.
In January 2026, an RFP was developed and published on PlanetBids. This RFP was also e-mailed to the two existing operators participating in the Program and two new tow operators that expressed interest in the RTS Program. The deadline to submit proposals was 2 p.m. on Friday, January 30, 2026.
At the close of the RFP period, three (3) tow operators submitted proposals. However, one of the applicants did not meet the minimum qualifications and was omitted from the process.
Based on the successful completion of the RFP process, staff recommends the City Council award Independent Contractor Agreements to the two (2) qualified tow operators listed below:
1. Pepe’s Towing Service
14351 Veterans Way
Moreno Valley, CA 92553
2. Valley Wide Towing LLC
24850 Rivard Rd.
Moreno Valley, CA 92551
Fees/Rates for Cost Recovery
The RTS Program provides that the fees/rates charged to a vehicle’s registered owner or agent must be reasonable and comparable to rates charged for similar services. Under the RTS Program, tow operators may charge set rates/fees in order to participate i n the RTS Program. The fees are set for a five-year period beginning July 1, 2026, with an end date of June 30, 2031. The authorized tow operators shall adhere to the established fees
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and rates during the Agreement term.
Cost recovery fees include serv ices provided for the “tow -by-tow” rotation dispatch services provider, administrative services provided by Public Safety Administration and MVPD staff, and costs associated with inspections to ensure compliance. As a result, and consistent with previous Agreements terms, staff recommends the following Annual Cost Recovery Fee as follows:
Tow Operator’s Annual Fee
(Cost Recovery Payment)
Program Year Annual Fee
2026 (Year 1) $10,000.00
2027 (Year 2) $15,000.00
2028 (Year 3) $20,000.00
2029 (Year 4) $25,000.00
2030 (Year 5) $30,000.00
The annual Fee must be paid by July 1 of each RTS Program year during the five -year term of the Agreement. The tow operator will have thirty (30) calendar days to make the payment. If the tow operator fails to make the annual payment within thirty (30) calendar days from July 1 of each RTS Program year during the five -year term, the City shall suspend the tow operator from the RTS program until the fees are received by the City.
If the tow operator fails to make the annual payment within sixty (60) calendar days from July 1 of each year during the five -year term, the Agreement with the tow operator shall be terminated and the tow operator shall be removed from the RTS program for the remainder of the contract period. A ny outstanding City administrative fees are immediately due and payable.
ALTERNATIVES
1. Award Rotational Tow Services Independent Contractor Agreements, as recommended by staff; Adopt Resolution No. _ _ Setting Annual Cost Recovery Fees as set forth in the Resolution; and authorize City Manager to execute all necessary documents and approve a ny Administrative Procedures the City Manager deems necessary to reduce the City’s costs of administering the Rotational Tow Services Program. Staff recommends this alternative.
2. Do not approve and authorize the recommended actions as presented in this staff report and direct staff to explore other options to provide an RTS Program. Staff does not recommend this alternative.
FISCAL IMPACT
There are no direct costs to the General Fund. All program -related costs including dispatch services, administration, and compliance inspections are offset through the established fees paid by participating tow operators.
ID: 26-0123 Page 5
NOTIFICATION
Publication of the Agenda and email notification to the recommended tow operators of the City Council meeting and pending action.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Mayra González Brian Mohan
Sr. Management Analyst City Manager
Concurred By: Concurred By:
Shanna Palau Launa Jimenez
Public Safety Contracts Administrator Assistant City Manager (Administration)
CITY COUNCIL GOALS
Public Safety: Provide a safe and secure environment for people and property in the community, control the number and severity of fire and hazardous material incidents, and provide protection for citizens who live, work and visit the City of Moreno Valley.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
ID: 26-0123 Page 6
Report Approval Details
Document
Title:
STAFFREPORT_CM_ROTATIONALTOWSERVICEAWARD.docx
Attachments: - 2026 Resolution - Cost Recovery Fee.pdf
- Rotational Tow Agreement_Pepe'sTowing_01.pdf
- Rotational Tow Agreement_ValleyWideTowing_01.pdf
Final
Approval
Date:
Apr 1, 2026
This report and all of its attachments were approved and signed as outlined below:
Brian Mohan
Natalia Medina
Felicia London, MPA
Launa Jimenez
Patty Rodriguez