For City Council Meeting May 14, 2024
TO: Honorable Mayor and City Council
FROM: Tanya Williams, Acting City Manager
AUTHOR: Mark P. Kling, Chief of Police
Title
Request City Council to 1) Accept the Written Recommendation of the Chief of Police 2) Award a Franchise Agreement for Official Police Towing Services to Pepe’s Towing Service, a California Corporation, for an Initial Term of 25 Months Commencing June 1, 2024, through June 30, 2026, with two Optional Annual Extensions Through June 30, 2028; and 3) Authorize the Acting City Manager, or Designee to Execute all Documents.
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council:
1) Accept the written recommendation of the Chief of Police.
2) Award a Franchise Agreement for Official Police Towing Services to Pepe’s Towing Service, for an initial term of 25 months commencing June 1, 2024, through June 30, 2026, with two optional annual extensions through June 30, 2028; and
3) Authorize the Acting City Manager, or designee to execute all documents.
BACKGROUND
The Rialto Police Department currently has one tow company which provides tow services for the Police Department. This tow company was originally selected in April of 2010. After the expiration of the agreement extensions were approved by the City Council to extend the agreement on a month to month basis. The last extensions were approved on August 23, 2016.
As outlined in the City of Rialto Municipal Code, Section 5.42, a selection process for official Police Tow Service Franchisees was conducted. The process, which included application review, site inspection and background investigation has been completed. The Rialto Police Department recommends the awarding of a Tow Service Franchise Agreement to Pepe’s Towing Service for the remainder of Fiscal 2024 through June 30, 2026.
ANALYSIS/DISCUSSION
The city has codified the basic regulations for the operation of "Official Police Towing Services" in the city in responding to police emergency situations and in the removal of vehicles which are abandoned, improperly parked or stopped on public property, involved in a collision, operated by persons in violation of licensing requirements, or which constitute an obstruction to traffic because of mechanical failure. It is the intent of the city council in enacting ordinance 5.42 of the Rialto Municipal Code, to provide a fair and impartial means of distributing requests for towing services among qualified towing firms, and to ensure that such service is prompt and reasonably priced, and in the best interest of the public as well as the interest of efficient policing operations for the removal from public streets of such vehicles.
Whenever the Chief of Police or his or her designee determines the city has an established need for a new or additional tow truck operator to provide official police tow services to the city, the Chief of Police or his or her designee shall request that the department of administrative services send out a notice of request for qualifications for a tow truck operator. The request for qualifications shall be prepared by the department of administrative services and shall be approved by the Chief of Police or his or her designee.
Police staff, alongside the Purchasing Department, compiled a Statement of Qualifications based upon Rialto Municipal Code, Section 5.42. On September 26, 2023, the Purchasing Manager for the City of Rialto Purchasing Division posted on PlanetBids the request for qualifications to businesses which provide towing services. The request included a Statement of Qualifications packet to be filled out and submitted by October 27, 2023. At the closing date, the Purchasing Manager notified the applicants via PlanetBids that their packets had been received and will be reviewed for qualifications. The Purchasing Division reviewed the submitted packets and identified a total of three (3) tow companies based on their completed Statement of Qualifications and requirements set forth in Rialto Municipal Code, Section 5.42. These companies, listed in alphabetical order, are:
• First Choice Towing
• Pepe’s Towing
• Steve’s Towing
The evaluation committee was selected and was comprised of city personnel from the Police Department, Community Compliance Division and Planning Division. The evaluation committee was provided with the Statement of Qualifications from each of the above named tow companies for review. The Purchasing Manager provided the evaluation committee with criteria regarding the evaluations. The role of the evaluation committee is to select the most qualified proposal. If there was one, the committee conducts a background investigation on the operator, his/her employees, as well as verify all information included in the proposal submitted to the city.
On January 17, 2024, the above named companies were each sent a letter, via email, inviting them to participate in the tow facility site inspection phase of the process. The Purchasing Manger contacted each of the tow companies verifying their availability for the inspection of their tow facility site. This phase of the process included a physical inspection of their tow facility sites to ensure they meet the minimum requirements as set forth in the Rialto Municipal Code, Section 5.42.
On January 18, 2024, the evaluation committee inspected each of the three tow companies and rendered their findings. The committee used the same inspection criteria for each applicant and completed all three inspections the same day. These inspection forms are on file in the Purchasing Division and a copy of the form has been attached for review.
In the past, the Police Department utilized the services of two (2) tow companies to provide tow services. Over the past two years, due to the closure of one of the tow companies, the Police Department has been solely utilizing the services of Pepe’s Towing Service, which was an awarded Franchisee Tow Service. During this time, officers have commented on the quick response to service requests. There have been no interruptions in the police tow service and there have been no complaints received from staff. Pepe’s Towing Service has far exceeded the Police Department’s expectations, including lowering average response times to 11 minutes. When there were two tow companies in the rotation average response times exceeded 25 minutes, which delayed officers from performing other duties.
On February 10, 2015, City Council approved an amendment to Rialto Municipal Code 5.42 reducing the number of Official Police Tow Service franchise agreements from three (3) to up to two (2) franchises. This amendment was recorded on March 3, 2015 through Ordinance No. 1558. There is no section located within Rialto Municipal Code 5.42 which precludes the department from awarding only one (1) tow company, two (2) tow companies or not selecting a tow company for the Official Police Tow Service franchise.
Pursuant to Rialto Municipal Code, Section 5.42.080, upon successful completion of the background investigation, the Chief of Police or his or her designee shall recommend in writing to the city council the award of a franchise based on the bidder's compliance with the objective criteria established by this chapter or established by resolution of the city council for determining the most qualified operator. In preparing requests for and evaluating proposals received by the city, the department of administrative services and the chief of police or his or her designee shall comply with the procedures and criteria adopted by resolution of the city council. This process has been completed.
Therefore, it is the recommendation of the Police Department to award a single Tow Franchise Agreement to Pepe’s Towing Service. Staff will monitor and assess the continued need for a single tow company throughout the duration of the Franchise Agreement term.
ENVIRONMENTAL IMPACT
The proposed action does not meet the definition of a project as defined by Section 15378 California Environmental Quality Act (CEQA). A “Project” means the whole of an action, which as a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and excludes the following:
1) Continuing administrative or maintenance activities, such as purchases for supplies, personnel-related actions, general policy and procedure making.
2) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
LEGAL REVIEW
The City Attorney's Office has reviewed the staff report and agreement and approved it as to form.
FINANCIAL IMPACT
Operating Budget Impact
In Fiscal Year 2023/2024, budget of $405,000 in the Franchise Tow Fee Account No. 10106298 47116 has been establish. For Fiscal Year 2024/2025 staff has requested budget of $450,000 for this account. It is not known what the impact of the new proposed Franchise Tow Fee structure will have on the revenue budget for Fiscal Year 2024/2025. If needed, staff will process a midyear adjustment for the upcoming Fiscal Year. For the final year of this agreement, Fiscal Year 2025/2026, staff will appropriate revenue budget based on the FY2024/2025 trend.
Per Rialto Municipal Code Section: 2.48.145 a vendor disclosure form is attached.
Capital Improvement Budget Impact
There is no capital improvement budget impact.
Licensing
Vendor has a current City of Rialto Business License.