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  Agenda Item   35.    
City Council Meeting
Meeting Date: 06/19/2018  
FROM: Bill Gallardo

Subject:
Agreement with Brea Towing Services, LLC to Provide Offical Police Towing Services
RECOMMENDATION
Approve Agreement with Brea Towing, LLC to provide official police towing services.
BACKGROUND/DISCUSSION
During the course of its daily operations, the Police Department routinely requires the services of a towing company. Towing needs include the storage or impoundment of vehicles after an arrest, securing vehicles or contents thereof as criminal evidence, removal of disabled vehicles from the scene of a traffic collision, and towing of police vehicles experiencing mechanical failures.

Due to legal implications and processes, the reliability and professionalism of a company which provides police towing services is of paramount importance. Over the years, the Brea Police Department has utilized the services of several companies at various times, and continually evaluates the quality and reliability of each company which provides those services. For many years now, the department has exclusively utilized Brea Towing Service, LLC (Brea Towing) to provide police towing services. Brea Towing has consistently provided exceptional service, from initial response and tow to secure storage at their facility in Brea.

Over the past year, the police department has conducted internal auditing of agreements with various providers of professional services. During that process, it was noted that no contractual agreement with Brea Towing had ever been enacted. It appears that no contractual agreement has ever been enacted with any previous towing service providers. A Tow Policy and Franchise Fee Resolution have been in place for many years and have been regulating service provision expectations and franchise fee payments. Brea Towing’s track record of service was continually evaluated by the department, and every four years, Brea Towing received written notification that the business relationship with the City will continue for another four years.

In order to ensure the City is properly indemnified by its towing service provider, and to formalize the relationship between the City and the provider, the department worked with the City Attorney to draft an Agreement with Brea Towing (or any future towing service provider).

The Agreement carries a four-year term. The Towing Provider may request a two-year extension within ninety (90) days of the end of the four-year term. An extension may be granted solely and optionally at the discretion of the City. Further, the Agreement requires the provider to comply with the City’s Tow Policy, and sets forth requirements in other areas, such as training and driver conduct, compliance with certain state regulations and licensing requirements, and response times, among other specifications. The Agreement also sets forth indemnification and insurance requirements, and includes a termination clause.

As part of this process, the department and City Attorney also undertook a thorough review of the Tow Policy (Agreement Exhibit A) and made changes to reflect the current needs of the department and further clarify requirements and expectations of a tow provider. Among these changes are driver and equipment requirements, clarification of fee rates paid by vehicle owners and the City, specific response time expectations, and hours of business office operation.
FISCAL IMPACT/SUMMARY
The Tow Policy requires that rates charged by the provider shall not exceed rates approved by the local office of the California Highway Patrol. These are the rates upon which charges to the City as well as vehicle owners are based. Currently, those rates are:

Tow: $210.00
Storage: $60.00
Gate Fee: $105.00 (after hours)   
                
The City incurs costs for towing and daily storage for any vehicles impounded for evidence. Brea Towing currently charges the City 50% of charges incurred for initial towing and the first thirty (30) days of vehicle storage. Under the proposed Agreement and Tow Policy, the Towing Provider will still charge 50% of the initial tow service fee. However, storage rates have been modified. The Police Department sought to reduce costs associated with evidence storage of vehicles. A sliding scale of storage fees was developed to allow the department to limit costs by quickly processing evidence and releasing vehicles within the first five days, as well as to address longer-term storage costs. Generally, evidence storage costs will be reduced by up to 25% for shorter term storage, which account for the majority of vehicle evidence storage needs. Long-term storage costs will also see a slight reduction. The annualized fiscal impact of the proposed Agreement and Tow Policy in dollars is difficult to calculate since the costs are incident driven. Yearly expenditures fluctuate based on the number of incidents requiring the impoundment of vehicles and the length of impoundment necessary for investigative purposes. For example, the department budgeted $6,000 for impound costs in FY17-18, yet had expended nearly $10,000 in the first nine months of the fiscal year. Under the revised Tow Policy the City would have saved approximately $1,000-$2,000. For FY18-19, the department has proposed a budget amount of $8,000 for costs related to towing services.

The Brea City Council Finance Committee reviewed the Agreement and Tow Policy on May 29, 2018 and recommended approval.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by: John Burks, Police Captain
Concurrence: John Conklin, Police Chief
Attachments
Agreement with Brea Towing, LLC
City of Brea Vehicle Towing and Storage Policy
City of Brea - Insurance Requirements - Service Contracts - Tow Policy Attachment A

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