April 22, 2025
Police Department
DATE: April 22, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Bisa French, Chief of Police
Subject:
Contract Amendment No. 2 with Oliver’s Tow, Inc.
FINANCIAL IMPACT: The funds for the proposed expenditure of up to $20,000 are available in the Public Works Equipment Services
Maintenance budget for Fiscal Year 2024-2025 (Account
String 50336031-400705-03B0); Additionally, $30,000 is
included in the Police Department’s approved budget for Fiscal Year 2024-2025 and proposed Fiscal Year 2025-
2026 budget (Account String 01194021-400538).
April 6, 2021
STATEMENT OF THE
ISSUE:
The Public Works Department and Police Department
are requesting City Council to approve the second
amendment with Oliver’s Tow, Inc., to increase the
contract’s payment limit as demand for the tow services has increased.
RECOMMENDED ACTION:
APPROVE a second contract amendment with Oliver’s
Tow, Inc. increasing the payment limit by $50,000, for a total payment limit of $95,000 for rotational tow and
automotive services for a term ending on December 31,
2025 – Police Department (Chief Bisa French, 510-621-
1802).
AGENDA
REPORT
April 22, 2025
DISCUSSION:
On April 6, 2021, City Council approved a contract with Oliver’s Tow, Inc., with a not-to- exceed amount of $45,000. The Public Works Department and the Richmond Police Department both utilize the Oliver’s Tow, Inc., contract, and staff in both departments have been working together to address the growing towing needs throughout the City.
The contract is in its final year and the projected need for towing services will exceed the current $45,000 not-to-exceed amount of the contract. City staff are seeking City Council approval to increase the payment limit of the contract by an additional $50,000, for a total not-to-exceed amount of $95,000 by the end of the contract term, December 31, 2025.
This payment limit increase will allow the Richmond Police Department and the Public Works Department to continue to perform tow services in a timely manner without service interruption. The Public Works Department utilizes the contract services for towing City fleet vehicles that become inoperable while in use, and the Police Department utilizes the contract for towing vehicles involved in a crime and held for investigation purposes. Due to some investigations spanning several weeks to years, the total invoice amount upon billing for impoundment can vary in cost. For example, a vehicle towed for involvement in a crime will incur a tow fee and a daily impound fee.
Because the daily impound fee is variable, it can lead to varying final invoice amounts ranging from $100 to $3,000, which is why the Police Department is asking for $30,000 to cover any expenses that may be incurred by the end of the calendar year.
Public Works and Police Department staff believe the proposed amendment is in the best interest of the City and its residents.
DOCUMENTS ATTACHED:
Attachment 1 – Proposed Contract Amendment No. 2
Attachment 2 – Executed Contract Amendment No. 1
Attachment 3 – Executed Original Contract