City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01237 7/1/2025
Contracts: Heavy Duty Towing Services and Storage for Community Development Department and Sacramento Police Department [Published for 10-Day Review 06/19/2025] File ID: 2025-01237
Location: Citywide
Recommendation: Pass a Motion: 1) ratifying the execution of four on-call non-professional service agreements with College Oak Road Solutions, Chimas Tow, Five Star Towing, and North Valley Tow; 2) authorizing the Interim City Manager or designee to execute the on-call non-professional services contracts with College Oak Road Solutions, Chimas Tow, Five Star Towing, and North Valley Tow, each with a not-to-exceed amount of $1,033,523 for one year with four one year renewal options for a total not-to-exceed amount $5,167,615; and 3) determining the expenditure for all four contracts shall not exceed $1,033,523 in any given fiscal year.
Contact: Peter Lemos, Chief of Code and Housing, (916) 808-8183, [email protected]; Monica Duncan, Administrative Analyst, (916) 808-8025, [email protected]; Community Development Department Presenter: None
Attachments:
1-Description/Analysis
2-PRC002875-College Oak Road Solutions Executed Agreement and Supplements 1, 2 3-PRC002875-College Oak Road Solutions Pending Supplements 3, 4 4-PRC002876-Chimas Tow Executed Agreement
5-PRC002876-Chimas Tow Pending Supplement 1
6-PRC002877-Five Star Towing Executed Agreement and Supplement 1 7-PRC002878-North Valley Tow Executed Agreement and Supplement 1 Description/Analysis
Issue Detail: A Request for Qualifications (RFQ) was posted on April 16, 2024, for Heavy Duty Towing services with a scheduled close date of May 10, 2024 (Q24211313004). The City received four bids: College Oak Road Solutions, Chimas Tow, North Valley Tow, and Five Star Towing. All four heavy duty towing contracts began July 1, 2024, with a one-year term with four one-year renewal options.
File ID: 2025-01237 7/1/2025
Each contract specifies services of a total not-to-exceed $249,999 each year. After the first year, the following four years are optional. The potential total amount for all four contracts shall not exceed $5,167,615. This allows the City the flexibility to use each heavy-duty tow contractor based on availability, response time and storage capacity. On-call services will not exceed more than $1,033,523 for any given fiscal year.
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 and Section IV.1.C.1 of the City’s Non-Professional Services Policy regarding awards to multiple contractors for the same scope of services.
The Sacramento City Code Section 4.04.020 and the City Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to City Council action. This item was published for 10-day review on June 19, 2025, in compliance with the City Code.
Economic Impacts: None.
Environmental Considerations: None.
Sustainability: None.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: City Code Section 3.56.090 reads in part, “Unless otherwise provided in this title, all contracts involving an expenditure of $250,000 or more must be authorized by the city council.” Section IV.1.C.1 of the City’s Non-Professional Services Policy provides that for contract solicitation and award purposes; procurements must include the total amount of all service contracts awarded to all contractors for the same service. Because College Oak Road Solutions, Chimas Tow Five Star Towing, North Valley Tow will perform the same scope of services, and the aggregate not-to-exceed amount of all four agreements exceeds $250,000, Council approval is required.
Financial Considerations: Sufficient funding is available in the Fiscal Year 2025/26 Community Development Department Operating Budget to make purchases through June 30, 2026. Future services are dependent on the availability of funding in the adopted budgets for the applicable fiscal year. On-call services will not exceed more than $1,033,523 million each fiscal year.
File ID: 2025-01237 7/1/2025
Due to the forecasted structural budget gap, the City Manager has directed City Departments to minimize costs and for all new contracts to receive an additional level of scrutiny to ensure they are necessary for the operations to the City. This contract has been reviewed and approved by the City Manager's Office to advance to Council for approval. Funding for the proposed contract beyond FY25/26 is subject to Council approval of the annual budget for the duration of the contract.
Local Business Enterprise (LBE): College Oak Road Solutions, Chimas Tow, Five Star Towing are LBE, North Valley Tow is not LBE.
Background: 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 over 600 heavy duty (Class C & D) vehicles for various types of violations, with the number of heavy-duty tows rising annually. The cost of heavyduty tows has continued to increase over the past several years as the City’s Code and Police Department proactively remove recreational vehicles which are often abandoned, dismantled, and inoperable on city streets. 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, and these vehicles often contribute 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 is 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 continue to rise from previous years. It is projected that this expenditure will increase significantly while unhoused residents seek other options for affordable housing and abandon these vehicles on City streets.