City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01173 10/3/2023 Consent Item 13.
Suspend Competitive Bidding and Authorize On-Call Request for Qualifications for the Sacramento Police Department’s Tow Rotational Agreement (Two-Thirds Vote Required) File ID: 2023-01173
Location: Citywide
Recommendation: Adopt a Resolution 1) suspending competitive bidding in the best interests of the City in favor of an on-call Request for Qualifications (RFQ) process to allow tow companies to apply for and participate in the Sacramento Police Department’s Tow Rotation Agreement; 2) authorizing the City Manager or the City Manager’s designee to enter into agreements with tow service companies to provide tow services through December 31, 2028; 3) authorizing the City Manager or the City Manager’s designee to execute additional tow rotation agreements with qualified suppliers as needed throughout the contract period; 4) increasing the towing rate from $200 per hour to $235 per hour subject to further adjustment throughout the duration of the tow rotational contract; and 5) authorizing adjustment of the continued daily storage rate of $60 per day throughout the duration of the tow rotational contract.
Contact: Daniel Monk, Police Captain, Metro Division, (916) 808-4504, [email protected], Police Department
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A - Regional Tow Agency Rates
Additional Description/Analysis
Issue Detail: The Sacramento Police Department (SPD) has an operational requirement for tow services. Since 2019, SPD has towed an average of 7,840 vehicles annually for various violations.
As of January 1, 2020, the Tow Service Agreement included 18 tow companies that were accepted to participate in the tow rotational list. During the life of the existing Tow Service Agreement, the participation of two tow companies was discontinued. Reasons for the decline in tow company
File ID: 2023-01173 10/3/2023 Consent Item 13.
participation include close of business, sale of business, retirement, and a higher cost of doing business.
By utilizing the on-call Request for Qualifications (RFQ) process, SPD was able to add an additional two tow companies to the operative agreement to fill the need created by the tow companies that left the rotation.
Without the use of the RFQ process, SPD would not be able to add more tow companies to keep pace with the volume of tow requests and would limit SPD’s ability to dispatch tows needed for police services. A shortage of tow companies created by an inability to continuously add contractors would require the remaining contractors to absorb the demand to tow an increased number of vehicles in their assigned districts. This would also impact the remaining contractors’ ability to store vehicles, due to lack of property space, and to respond to tow requests in a timely manner. All existing tow service agreements are scheduled to expire on December 31, 2023.
SPD anticipates the need for towing services to increase in the coming five-year period due to increases in the City's population, increased motor vehicle incidents, including crimes committed by and against vehicles, or incapacitation, and due to the prevalence of sideshows.
Policy Considerations: The SPD recommends the suspension of competitive bidding and use of an on-call RFQ process to evaluate and select experienced, qualified tow companies to provide the City service on a rotational basis, and for the SPD to add new tow companies on a continuous basis. City Code section 3.56.230.C authorizes the City Council to suspend competitive bidding for any purchase or contract when, upon a two-thirds vote, the City Council determines it is in the best interests of the City to do so.
Economic Impacts: Not applicable.
Environmental Considerations: The activities authorized by this action are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15321 (a)-(b) [enforcement of a law, general rule, standard, or objective, administered by the regulatory agency and law enforcement activities by peace officers acting under any law that provides a criminal sanction] and section 15061 (b)(3) [common sense exemption: it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment].
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Suspension of competitive bidding and the use of an on-call RFQ process is recommended in order to evaluate potential providers on the following: quality of their
File ID: 2023-01173 10/3/2023 Consent Item 13.
application, experience and references, prior contract compliance, tow vehicle compliance with California Highway Patrol (CHP) guidelines, and adequacy of facilities and drivers. All selected tow companies will be placed on a rotational list and will be contacted by the City when tow services are required.
The process for the on-call RFQ is as follows:
1. SPD will post applicable requirements and application on the Department’s website (www.cityofsacramento.org/police).
2. The tow companies will have the ability to submit/email their applications to SPD Tow Unit.
3. SPD Tow Unit will review the application and ensure all certifications/licenses are up to code and meets all stated requirements.
4. SPD Tow Unit will notify the tow companies whether they are accepted on the tow rotational list or not.
5. Each tow company will sign the City of Sacramento’s Non-Professional Services Agreement upon acceptance in the amount of $0. Towing and storage fees are borne by the registered and/or legal owner(s) of towed vehicles, not by the City.
6. SPD Tow Unit will accept any new tow company’s application on an ongoing basis to accommodate the needs of the Department.
Financial Considerations: There is no financial impact to the SPD budget. The towing and storage rates are not charged by SPD but rather by tow companies directly to the registered and/or legal owner(s) of a towed vehicle and are set by the City. The current towing rate is $200.00 per hour and the current storage rate is $60.00 per day. The towing and storage rates for Class A and Class B vehicles are the result of an assessment conducted by the City of the rates set by other agencies regionally (Exhibit A). Based upon a new assessment, the new towing rate will be $235.00 per hour and the storage rate will be $60.00 per day. Since the City sets the Class A and Class B tow rates and storage fees, participating companies are not allowed to raise them. While the SPD has determined that the towing and storage rates with which to commence a new, five-year tow rotation on January 1, 2024, are reasonable, the SPD will periodically assess, and, as necessary, adjust these rates to ensure regional comparability. There is no monetary value assigned to the agreements between the tow companies and the SPD.
Local Business Enterprise (LBE): The minimum LBE participation requirement will be waived as the City will suspend competitive bidding and utilized an alternate procurement method to select a vendor.
Resolution No.
Adopted by the Sacramento City Council
[DATE]
SUSPEND COMPETITIVE BIDDING PROCESS AND AUTHORIZE ON-CALL
REQUEST FOR QUALIFICATIONS (RFQ) PROCESS FOR THE SPD TOW
ROTATIONAL AGREEMENT
BACKGROUND
A. The Sacramento Police Department (SPD) has an operational requirement for tow services. Since 2019, SPD has towed an average of 7,840 vehicles annually for various violations. All existing tow service agreements are scheduled to expire on December 31, 2023.
B. Suspension of competitive bidding an d the use of an on -call Request for Qualifications (RFQ) process is recommended in order to evaluate potential providers on the following: quality of their application, experience and references, prior contract compliance, tow vehicle compliance with Calif ornia Highway Patrol (CHP) guidelines, and adequacy of facilities and drivers. All selected tow companies will be placed on a rotational list and will be contacted by the City when tow services are required.
C. City Code section 3.56.230.C authorizes the Cit y Council to suspend competitive bidding for any purchase or contract when, upon a two-thirds vote, the City Council determines it is in the best interests of the City to do so. It is in the City’s best interest to suspend competitive bidding for the SPD Tow Rotational Agreement.
D. The selected contractors will enter into agreements with the City to provide tow services for a five-year period commencing January 1, 2024 and extending through December 31, 2028.
E. The towing rate will be increased from $200 per hour to $235 per hour and is subject to further adjustment throughout the tow rotational contract to ensure regional comparability.
F. The storage rate will remain unchanged at $60 per day but is subject to adjustment throughout the duration of the tow rotational contract to ensure regional comparability.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. In the best interests of the City, competitive bidding is suspended for the SPD Tow Rotational Agreement and is replaced by the on-call RFQ process to determine experienced and qualified tow companies that will provide tow services on a rotational basis.
Section 2. Authorize the City Manager, or the City Manager’s designee, to enter into an agreement with tow service companies to provide tow services commencing January 1, 2024, through December 31, 2028.
Section 3. Authorize the City Manager, or the City Manager’s designee, to execute additional rotation tow service agreements with qualified contractors as needed throughout the contract period.
Section 4. Authorize the increased towing rate to $235 per hour subject to further adjustment throughout the duration of the tow rotational contract to ensure regional comparability.
Section 5. Authorize adjustment of the continued daily storage rate of $60 per day throughout the duration of the tow rotational contract to ensure regional comparability.
Table of Contents:
Exhibit A – Regional Tow Agency Rates
Agency Tow Rate
California Highway Patrol (South Sacto) $240.00
Elk Grove Police Department $252.00
Folsom Police Department $230.00
Rancho Cordova Police Department $230.00
Roseville Police Department $260.00
Sacramento County Sheriff's Office $210.00
Stockton Police Department $212.32
Woodland Police Department $240.00
Average Rate $234.29
Exhibit A - Regional Tow Agency Rates