City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01170 10/10/2023 Consent Item 10.
Suspend Competitive Bidding and Authorize On-Call Request for Qualifications for the Community Development Department Neighborhood Code Compliance Tow Rotational Agreement (Two-Thirds Vote Required)
File ID: 2023-01170
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 Community Development Department Neighborhood Code Compliance 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: Peter Lemos, Code and Housing Enforcement Chief, (916) 808-8183 [email protected]; Monica Duncan, Administrative Analyst, (916) 808-8025, [email protected], Community Development Department Presenter: None
Attachments:
1-Description/Analysis
2-Exhibit A - Regional Tow Agency Rates
3-Resolution
Additional Description/Analysis
Issue Detail: The Community Development Department (CDD) has an operational requirement for tow services to remove abandoned vehicles from city streets. Vehicles left abandoned or in a hazardous condition on the public right of way are an attractive nuisance for children, contribute to
File ID: 2023-01170 10/10/2023 Consent Item 10.
visual blight, attract crime and deterioration of neighborhoods. On average, CDD responds to over 20,000 complaints relating to abandoned, wrecked, dismantled and inoperative vehicles.
On January 1, 2020, CDD awarded Tow Service Agreements to nine tow companies allowing them to participate in the tow rotational list. The tow rotational list is designed to allow participating tow companies to be placed on a list where they are selected based on their tow district location and through a rotational selection process established by the Code Compliance Division.
In 2022, CDD removed over 2,500 vehicles from the public right of way utilizing tow contractors.
Several of these vehicles were found dismantled, missing primary components, left on blocks without wheels, and determined to be abandoned. To date, CDD has towed over 1,500 vehicles for the public right of way and more than 2,500 complaints relating to abandoned vehicles are pending response.
The nine tow companies on the current tow rotational list provides CDD the ability to remove abandoned, dismantled, wrecked and inoperative vehicles but there is a need for additional tow services due to the growing volume of complaints. The request to suspend competitive bidding and authorize CDD to use an on-call Request for Qualification process will provide the option to add new companies to the existing rotation after the RFQ closes and agreements are executed.
Providing CDD the ability to continuously increase tow companies on the tow rotational list will reduce response times when code enforcement officers call to remove a vehicle and the overall time it takes to remove an abandoned, dismantled, wrecked and inoperative vehicles from city streets. A large pool of tow companies of the tow rotation also provides relief to the tow companies as the number of vehicles abated increases. The California Vehicle Code requires tow companies to store abandoned, dismantled, wrecked and inoperative vehicles for a minimum of 15 days reducing their ability to store vehicles due to a lack of space on their property. All existing tow service agreements are scheduled to expire on December 31, 2023.
The towing and storage rates, charged by tow companies directly to the legal and/or registered owner(s) of a towed vehicle, are set by the City. The current hourly rate is $200.00, and the current daily storage rate is $60.00. The towing and storage rates for Class A and Class B vehicles and associated storage fees are the result of an assessment conducted by the CITY of the rates charged by other agencies regionally (Exhibit A). Based upon a new assessment, the new hourly towing rate will be $235.00, and the daily storage rate will remain $60.00. Since the City sets the Class A and Class B tow rates and storage fees, participating companies are not allowed to raise them. While CDD has determined that the towing and storage rates with which to commence a new, five-year tow rotation on January 1, 2024, are reasonable, CDD will periodically assess, and, as necessary, adjust these rates to ensure regional comparability.
Policy Considerations: CDD recommends the suspension of competitive bidding and use of an on- call RFQ process to evaluate and select experienced, qualified tow service companies on a rotational
File ID: 2023-01170 10/10/2023 Consent Item 10.
basis and 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: It has been determined that the proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(2 and 4).
The activities described in this report are continuing administrative or maintenance activities, such as purchases or personnel-related activities, and government fiscal activities and are not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).
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 to evaluate potential providers on the following: quality of their 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. CDD will post applicable requirements and application on the Department’s website (www.cityofsacramento.org/cdd).
2. The tow companies will have the ability to submit/email their applications to CDD Code Compliance at [email protected]
3. CDD Code Compliance will review the application and ensure all certifications/licenses are up to code and meets all stated requirements.
4. CDD Code Compliance 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.
6. CDD Code Compliance 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 CDD’s Fiscal Year 2023/2024 Operating Budget.
Local Business Enterprise (LBE): The minimum LBE participation requirement will be waived
File ID: 2023-01170 10/10/2023 Consent Item 10.
as the CITY will suspend competitive bidding and utilized an alternate procurement method to select a vendor.
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
RESOLUTION NO. 2023-
Adopted by the Sacramento City Council
October 3, 2023
SUSPEND COMPETITIVE BIDDING PROCESS AND AUTHORIZE A REQUEST FOR
QUALIFICATIONS (RFQ) PROCESS FOR COMMUNITY DEVELOPMENT DEPARTMENT FOR
THE TOW ROTATIONAL AGREEMENT
BACKGROUND
A. The Community Development Department (CDD) has an operational requirement for tow services. On an annual basis, CDD tows over 2,500 vehicles left abandoned or in a hazardous condition on the public right of way are an attractive nuisance for children, contribute to visual blight, attract crime and deterioration of neighborhoods. On average, CDD responds to over 20,000 complaints relating to abandoned, wrecked, dismantled and inoperative vehicles. All existing tow service agreements are scheduled to expire on December 31, 2023.
B. Suspension of competitive bidding and the use of an on-call Request for Qualifications (RFQ) process is recommended to evaluate potential providers on the following: quality of their 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.
C. 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. It is in the City’s best interest to suspend competitive bidding for CDD for the 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 to $235 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 CDD 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 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 throughout the duration of the tow rotational contract to ensure regional comparability.
Table of Contents:
Exhibit A – Regional Tow Agency Rates