Title
General Police Towing Services - RFP 13-006A (Ordinance S-45759)
Description
Request to authorize the City Manager, or his designee, to extend contracts 135126 and 135191 with ACT Towing, dba All City Towing, contract 135125 with DV Towing, LLC, and contract 135124 with Western Towing of Phoenix Inc., to provide the Police Department with general Police towing services in the amount not to exceed $92,765. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Phoenix Police Department (PPD) requires general towing services to help with citizens involved in accidents, towing abandoned vehicles, vehicles left in the roadways, illegally parked vehicles and other law enforcement impoundments. Towing services are required within twenty minutes from the time police calls the provider. The 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.
The Vehicle Impound Detail within the PPD was established in 2006. The 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 equal to 34 percent of the revenues resulting from auction sales of abandoned vehicles. For Fiscal Year 2017-18, $1.2 million was collected from the administrative fee and $1.1 million was collected from the auctions sales for a total of $2.3 million. The PPD’s Vehicle Impound Detail is not supported by the City's General Fund, but solely through these funds. The Detail has 19 positions to monitor and audit the City’s General Services Towing Contracts. Their job duties include ensuring scope of work compliance, conducting financial and data audits, reconciling daily impound accounts, assisting front counter customers and performing impound lot inspections.
There are four separate contracts for General Police Towing Services (RFP 13-006). The City is divided into four zones, one vendor has two zones and the other two vendors each have one zone. The current fees to the person being towed range from $15.00 - $29.00 for a regular passenger sized vehicle.
In 2018, the Finance Department Procurement Division conducted a new solicitation process for General Police Towing (RFP 17-182), however the City Council voted to cancel the RFP and the recommended awards. On Feb. 6, 2019, the City Council extended the four existing contracts to expire Dec. 31, 2019.
Procurement Information
The Public Safety and Veterans Subcommittee unanimously approved a long-term extension of seven years. Staff has met with the tow vendors and negotiated pricing, including adding an automatic annual Consumer Price Index transportation escalator. The pricing that was negotiated is commensurate with surrounding tow fees of public agencies. To achieve consistency, the City negotiated pricing for all three vendors for the heaviest tow volumes:
Current Current Current Current
Negotiated Price Price Price Price
Price Zone A Zone B Zone C Zone D
Level 1 Tow $45.00 $18.00 $29.00 $18.00 $15.00
Level 2 Tow* $75.00 $ 0.00 $59.00 $30.00 $49.00
Storage Rate $38.50 $30.00 $27.50 $30.00 $32.50
*Special Circumstance - vehicle removed from pool, lake, canal, river, fence, wall, on its side or on its roof.
Contract Term
The Contract term will begin on or about Jan. 1, 2020 and end on or about Dec. 31, 2026.
Financial Impact
The expenditures against these contracts shall not exceed the aggregate amount of $92,765. Funds are available in the Police Department's budget.
Concurrence/Previous Council Action
At the Public Safety and Veterans Subcommittee meeting on March 13, 2019, the third option presented by staff, for a long-term extension of seven years with the current vendors, passed unanimously, 4-0.
Department
Responsible Department
This item is submitted by Assistant City Manager Milton Dohoney, Jr. and the Police Department.