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APPROVE MOTION TO EXECUTE A THREE (3) YEAR STANDARD AGREEMENT, WITH TWO (2) ADDITIONAL ONE-YEAR OPTIONS TO EXTEND, FOR ROTATING TOWING SERVICES IN AN AMOUNT NOT TO EXCEED $100,000
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize the City Manager, or designee, to execute a three (3) year Standard Agreement, with two (2) one-year options to extend, for rotating towing services between the City of Stockton (City) and the listed tow companies.
2. It is further recommended that the City Manager, or designee, be authorized and directed to make any and all expenditures and appropriations on behalf of the City as appropriate and necessary to carry out the purpose and intent of this motion.
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Summary
The Stockton Police Department’s (SPD) Traffic Section must tow vehicles involved in abandonment, traffic stops, and accidents within the City on a routine basis. The current City of Stockton Tow Rotation Agreement identifies the process of requesting towing assistance and selecting the qualified vendors who provide towing services. Under the terms of the agreement, the tow companies are provided with an opportunity to participate in the rotation and must maintain vehicles and insurance in accordance with the contract terms. The current agreement expires on December 31, 2025. Staff recommends Council approve a motion to renew the agreement and approve new baseline rates effective January 1, 2026.
DISCUSSION
Background
SPD’s Traffic Section began using a rotating list of tow company vendors in the 1990’s. The list was established in response to a lawsuit filed against the City alleging that the City attempted to limit the number of tow companies that could be included in the agreement. The list is maintained by staff in the Traffic Section in a rotating fashion, according to a set of predictable and equitable criteria. The agreement is maintained to set pricing and specifications. Towing services are primarily required for traffic accidents, impounding vehicles due to unlicensed drivers, expired registrations, evidence collection, and abandoned vehicles. Towing services are also used for City vehicles that are inoperable.
Per Section 15 of the Tow Rotation Agreement, the SPD Traffic Division must hold one open meeting annually to discuss the agreement terms and any issues. Tow companies are notified in writing of the meeting 30 days in advance.
Present Situation
Under the terms of the current agreement, Section 13 allows for an increase to tow rates on a yearly basis at an amount equal to the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers’ United States City Average, not to exceed 5 percent per year. During the current five-year term, annual increases to tow rates based on CPI have not kept pace with rates paid by surrounding law enforcement agencies. With the proposed extension, staff are recommending a new baseline tow rate to be set based on a survey of surrounding law enforcement agency rates for the same tow services.
Set forth below is a chart indicating the current rate structure and the proposed new rate structure for the towing of vehicles on private property and public property, and nuisance vehicle tows pursuant to the authority granted under the Stockton Municipal Code:
|
SERVICE |
2020-2025 RATE |
2026-2029 PROPOSED RATE |
|
Class A Tow |
$202.21 |
$235.59 |
|
Class B Tow |
$259.67 |
$302.54 |
|
Class C Tow |
$550.84 |
$641.77 |
|
Class D Tow |
$550.90 |
$641.89 |
|
Lowboy Tow |
$239.46 |
$278.99 |
|
Rotator Tow |
$638.49 |
$743.90 |
|
Nuisance Vehicle |
$101.10 |
$117.80 |
|
Gate Fee |
n/a |
$130.25 |
|
Inside Storage |
$75.00 |
$86.83 |
|
Outside Storage |
$65.00 |
$75.73 |
|
Inside Storage (over 25 feet) |
n/a |
$130.25 |
|
Outside Storage (over 25 feet) |
n/a |
$113.61 |
FINANCIAL SUMMARY
The estimated cost is an annual amount of $20,000 for a total amount not to exceed $100,000. Funding for the Tow Rotation Agreement is available in the FY 25-26 Police Department Investigation Division Future costs will be incorporated into the Stockton Police Department’s Annual Budget Request.
Attachment A - Tow Rotation Standard Agreement