City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00398 2/13/2024
Supplement Agreement: Heavy Duty Towing Services and Storage for Community Development Department and Sacramento Police Department (Two-Thirds Approval Required)[Published for 10-Day Review 02/01/2024]
File ID: 2024-00398
Location: Citywide
Recommendation: Pass a Motion: 1) Authorizing the City Manager or City Manager’s designee to execute Supplemental Agreement Number 4 to City Agreement Number PRC001434 with College Oak Road Solutions for Heavy Duty Towing Services for both the Sacramento Police Department and the Community Development Department, Neighborhood Code Compliance with a not-to-exceed amount of $400,000, bringing the total not-to-exceed amount to 1,935,000 for College Oak Road Solutions for Heavy Duty Towing Services 2) Ratifying all prior supplemental agreements previously issued by the City Manager and resetting the City Manager’s authority to issue supplemental agreements accordance with Chapter 3.56 of the City Code.
Contact: Peter Lemos, Chief of Code and Housing, (916) 808-8183; Monica Duncan, Administrative Analyst, (916) 808-8025, Community Development Department Presenter: None
Attachments:
1-Description/Analysis
2-College Oak Heavy Duty Towing Services
3-Copy of Heavy-Duty Tows Paid by Fiscal Year
Additional Description/Analysis
Issue Detail: The Community Development Department (CDD) and the Sacramento Police Department (SPD) have an operational requirement for heavy duty tow services. On an annual basis, the City of Sacramento tows approximately 360 heavy duty (Class C & D) vehicles for various types of violations, with the number of heavy-duty tows rapidly increasing. The cost of heavy-duty expenditures has continued to increase over the past several years as the City’s Code and Police Department continue to remove Heavy-Duty vehicles that are abandoned, dismantled, dangerous, and inoperable.
File ID: 2024-00398 2/13/2024
The Heavy-Duty Tow Service Agreement with College Oak Road Solutions began July 1, 2021, and is scheduled to expire on June 30, 2024. The secondary heavy-duty vendor is unable to meet the City’s high demand for services due to insufficient storage for vehicles towed and a short supply of heavy-duty towing equipment. In order for the City to abate the abandoned, dismantled, dangerous, and inoperable vehicles, additional funding is needed through the end of the contract term.
Policy Considerations: The recommendations in this report are in accordance with the provisions of City Code Section 3.56 regarding the purchase of supplies and non-professional services.
The recommendations in this report are in accordance with City Code Chapter 3.56 and the Sacramento City Council Rules of Procedure, Chapter 7, Section E.2.d, which requires additional posting time for labor agreements and agreements greater than $1 million. This item shall be made available to the public at least ten (10) days prior to council action. This item was published for 10- Day review on February, 01, 2024, in compliance with City Code.
Economic Impacts: None.
Environmental Considerations: None.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Bids for Heavy Duty Towing services were formally solicited on April 1, 2021, with a scheduled opening date of April 21,2021 (B21211313002). The City received two bids, one from College Oak Road Solutions. This service is essential to continue the SPD and CDD Neighborhood Code Compliance Division’s business operations.
There has been an increase in the number of heavy-duty and recreational vehicles and trailers abandoned on City streets. More than 90 percent of these vehicles towed are associated with people experiencing homelessness, and often contributes to other nuisances including an accumulation of junk and debris at and around the vehicle, hazardous vehicles, and leaking septic tanks. In many instances, the disposal cost of these vehicles are exorbitant because the tow company service also includes the disposal of stored items, hazardous chemicals, and materials. The City anticipates that payments for heavy duty towing services will double in the current FY23/24 year from the year prior, FY22/23. It is projected that this expenditure will increase significantly while unhoused residents seek other options for affordable housing and abandon these vehicles.
Financial Considerations: Due to the high demand for heavy-duty tow services, the current agreement with College Oak Road Solutions is not sufficient for the current fiscal year’s operational need. There is sufficient funding in the Fiscal Year (FY) 2023/24 Community Development Department Operating Budget to fund Supplemental Agreement Number 4of $400,000. Existing
File ID: 2024-00398 2/13/2024
funding in the CDD Neighborhood Compliance Division operating budget is not sufficient for any future obligations for additional supplemental agreements and will be subject to future fiscal year budget appropriations.
Local Business Enterprise (LBE): College Oak Road Solutions is an LBE.
Fiscal Year 2019 2020 2021* 2022 2023 2024*
Number of Tows 259 265 157 363 363 280
Total Cost 424,665$ 460,850$ 299,730$ 632,436$ 604,643$ 501,527$ *Please note FY2021 had lower number of tows due to Covid restrictions. *Partial Year - We are still receiving invoices for FY 2024
COLLEGE OAK HEAVY DUTY TOWS-PAID BY FISCAL YEAR