Title
General Police Towing Services Procurement Update
Description
This report requests the Public Safety and Justice Subcommittee approval of staff recommendation on the upcoming procurement for General Police Towing Services contracts.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
The Phoenix Police Department (PPD) requires general towing services to help with citizens involved in accidents, tow abandoned vehicles, vehicles left in the roadways, and illegally parked vehicles; and conduct other law enforcement impounds. Towing services are required within 30 minutes from the time PPD calls the provider. PPD also requires auctioning services when vehicles have been lawfully impounded and determined to be abandoned by the Arizona Department of Transportation Motor Vehicle Division.
PPD requires towing services 24 hours per day, seven days per week throughout all seven police precincts. All work performed under the City's general towing contracts are pursuant to a specific request from PPD. For purposes of towing services, the police precincts are divided into the following four zones (with applicable precincts in parentheticals):
- Zone A (Black Mountain and Cactus Park)
- Zone B (Desert Horizon and Mountain View)
- Zone C (Maryvale-Estrella)
- Zone D (South Mountain and Central City)
The Vehicle Impound Unit within PPD was established in 2006. PPD collects a $150 administrative fee for each vehicle towed under A.R.S. Section 28-3511.These funds are deposited into a special account, under A.R.S. Section 28-3513, for the City's towing program. A second source of funds is collected through a profit share of the revenues resulting from auction sales of abandoned vehicles. For Fiscal Year 2023-24, $488,100 was collected from the administrative fees and $1,200,000 was collected from auction fees, for a total of over $1,600,000. PPD's Vehicle Impound Unit is not supported by the City's General Fund but solely through these funds. The Vehicle Impound Unit has 16 positions to monitor and audit the City's General Police Towing Services contracts. Their job duties include ensuring scope of work compliance, conducting financial and data audits, reconciling daily impound accounts, assisting customers and performing impound lot inspections.
Current Contract
There are currently four separate contracts for General Police Towing Services (RFP 13-006), which are set to expire on December 31, 2026. Each contract corresponds to one of the four zones identified above. Presently, one vendor holds the contracts for two zones and two other vendors hold the contracts for one zone each. Current fees for towing violations, effective January 1, 2025, are attached via Attachment A.
Staff Recommendation on Procurement
Staff recommends for the Finance Department, Central Procurement Division, to issue a new solicitation in the form of a Request for Proposal (RFP). This RFP will be issued in ample time to have new contracts in place before the expiration of the current contracts on December 31, 2026. The terms for these contracts will begin on or about January 1, 2027, and continue through December 31, 2031, with five one-year options to extend.
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays and the Police and Finance Departments.