DEPARTMENT: Police
DEPARTMENT HEAD: Anthony Trevino, Interim Chief of Police
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
The amendment of the Professional Services Agreement for the Operation and Maintenance of the Growdon Road Vehicle Storage Facility and the extension of the Police Auction Services for Abandoned Vehicles.
SUMMARY:
Consideration of the following Ordinances related to the Growdon Road Vehicle Storage Facility and the Police Auction Services for Abandoned Vehicles Agreements.
A. An ordinance approving the amendment of the Professional Service Agreement for Operation and Maintenance of the Growdon Road Vehicle Storage Facility for a two (2) year and six (6) month period commencing on May 17, 2015.
B. An ordinance approving the extension of the Professional Service Agreement for Police Auction Services for Abandoned Vehicles Agreement for two (2) additional (1) year periods.
BACKGROUND INFORMATION:
On March 17, 2008, United Road Towing (URT) began managing the San Antonio Police Department's Vehicle Storage Facility (VSF). The initial contract term was for five (5) years and two (2) months terminating on May 17, 2013, with a renewal option for one additional two (2) year period. URT is responsible for the impounding and releasing of all wrecked, abandoned, recovered stolen, and prisoners' vehicles, coming into custody of the Police Department. This activity includes the receipt of the towed vehicle, inspection of the vehicle upon impounding, storage of the vehicle, notification to the owner and/or lien holder, and release. URT also maintains the facility and has made over one million dollars of capital improvements to the VSF. City Council authorized the option to extend the contract for an additional two (2) year period on May 9, 2013. URT requested an extension of their contract to manage the VSF. The contractor is in full compliance with their current contracts and responds to any issues that may arise in a timely manner. Their request was presented to the Public Safety Committee on December 3, 2014, and the committee recommended that the item be taken to the full Council for consideration. URT has agreed to continue capital improvements throughout the extension period. Improvements include:
· Asphalt Repair
· Pavement of 2/3 of the Heavy Duty Truck Drop Area
· Demolition of unused building
· Environmental Monitoring
In October 2011, URT was awarded a competitive contract to auction abandoned vehicles. URT conducts weekly auctions for vehicles which remain unclaimed for at least 25 days at City's VSF. The contract's terms are for four years with one two-year extension at the option of the City. The contract's initial term will expire on September 30, 2015. Granting an extension on this contract will make its termination date September 30, 2017.
ISSUE:
Staff proposes to amend the VSF management contract for two years six months, and to exercise the two-year renewal option on the auction contract and extend the contract. With this action both contracts will expire on September 30, 2017.
ALTERNATIVES:
An alternative to approving the renewal of this Agreement would be to reject the request for the amendment and extension; however, SAPD would be responsible for the day to day operations of the VSF and auction for a period of time that would allow for the Request for Proposal process to be conducted.
FISCAL IMPACT:
The City will receive a minimum annual guaranteed amount of $165,000.00 for year 8, $175,000.00 for year 9 and $92,500.00 for year 10 (a six month period) from URT for the management of the VSF Agreement. In addition, URT will continue to maintain the landscaping, pavement and building at the VSF.
The City will continue to receive a minimum annual guarantee from URT for auction services Agreement based on the number of vehicles auctioned or 85% of adjusted gross sales, whichever is greater. The yearly average of vehicles auction is 4,290. The compensation schedule is as follows:
# of Vehicles Auctioned |
Minimum Annual Guarantee |
Over 7500 |
$3,750,000.00 |
7500 - 7001 |
$3,600,000.00 |
7000 - 6501 |
$3,500,000.00 |
6500 - 6001 |
$3,300,000.00 |
6000 - 5501 |
$3,100,000.00 |
5500 - 5001 |
$2,800,000.00 |
5000 - 4501 |
$2,300,000.00 |
4500 - 4001 |
$2,000,000.00 |
4000 - 3501 |
$1,600,000.00 |
Under 3500 |
To be negotiated with City |
RECOMMENDATION:
Staff recommends approval to amend the Professional Service Agreement for Operation and Maintenance of the Growdon Road Vehicle Storage Facility for a two (2) year and six (6) month period extension. Staff also recommends approval to extend the Professional Service Agreement for Auction Services for Abandoned for two (2) additional (1) year periods. The Agreements will both expire on September 30, 2017 with the approval of the amendment and extension.