DEPARTMENT: Police
DEPARTMENT HEAD: William P. McManus, Chief of Police
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
An Agreement to provide and manage storage services for the impounding, releasing and auctioning of vehicles for the City of San Antonio Police Department.
SUMMARY:
This ordinance authorizes the execution of the Total Management of the Growdon Vehicle Storage Facility Agreement to provide and manage storage services for the impounding, releasing and auctioning of vehicles for the City of San Antonio Police Department.
BACKGROUND INFORMATION:
On May 10, 2017, the Police Department solicited proposals to manage the Growdon Vehicle Storage Facility (VSF) for the City. As part of this contract, the City will require a contractor to provide and manage storage services for the impounding, releasing and auctioning of vehicles for the San Antonio Police Department (SAPD). The contractor will provide services twenty-four (24) hours a day, seven (7) days a week, three hundred sixty-five (365) days a year.
The Contractor accepts vehicles for storage, processes all state required record checks and notifications, collects all appropriate fees (i.e. all towing fees, impound fee, notification fee, per day storage fees and taxes), processes the release of vehicles, and establishes the chain of custody for vehicles used in evidence. The VSF receives vehicles to be impounded in connection with police investigations (i.e. vehicles being held as evidence or as seized assets), vehicles involved in accidents and/or abandoned, and miscellaneous property otherwise towed pursuant to City authorization. The contractor will also maintain the VSF grounds, property, ensure environmental compliance, and provide capital improvements to the VSF.
Four (4) responsive proposals were received in response to the City’s RFP from the following companies: Alanis Wrecker Services; TEGSCO, LCC, AutoReturn; Rod Robertson Enterprises, LLC; and URT United Road Towing, Inc.
A nine (9) person Evaluation Committee consisting of personnel from the City Manager’s Office; Police Department; Finance Department; Information Services Technology Department; and the Bexar County Sheriff Department were tasked with evaluating the proposals. The Committee’s first evaluation meeting took place on August 14, 2017, and at the end of the discussions and evaluation scoring, the Committee short-listed and requested that the top three (3) companies, Alanis Wrecker Services; TEGSCO, LCC, AutoReturn; and Rod Robertson, be present for an interview.
During the interview the companies were asked to highlight their proposed plan and were subjected to questions from the Evaluation Committee. Following the interview/presentation forum, Evaluation Committee members submitted their individual scores for each presentation. Based on its evaluation, the committee recommends a local minority small business, Alanis Wrecker Service (AWS) for this contract, as the highest ranked and most responsive firm. A copy of the scoring matrix summary is included herein as Attachment A.
AWS was selected based on their proposed business model and support provided by their subcontractor, TEGSCO, LCC, AutoReturn. AWS will provide the operational support while AutoReturn provides the administrative and software support at the VSF. AutoReturn has implemented this model of operating a VSF in Austin, Baltimore County, Las Vegas, and North Las Vegas. This model builds small businesses and ensures their success with AutoReturn’s support. AWS with AutoReturn’s oversight will provide over one million dollars in the following capital improvements: Expansion, Security, Storage and Telecom Infrastructure, Customer Service Support and Environmental Compliance.
AWS will collect all current and future state-regulated fees. The fees collected will include impound, storage, notification, auction processing and once approved by the state, an environmental disposal fee. Currently a law enforcement fee can be assed for every impounded vehicle; however, at this time the City does not assess the fee.
The City will receive from AWS a Minimum Annual Guarantee (based on the graduated scale of the Total Adjusted Gross Income: Storage Fees, Impound Fees, Notification Fees, Auction Sales and Auction Service Fees; see attachment) or 85% of Auction Sales and 2% of Impound Fees in revenue, whichever is greater of the two. The average auction sale revenue to the City over the last six years (year to date) totals $3.0 million; for the first four years it averaged $2.7 million but the number of vehicles impounded and auctioned has increased the past two years, which has increased this figure. If past trends continue, future revenue should remain at similar levels unless market changes have an adverse impact.
For the first two years of the contract, any revenue which exceeds $3 million will be kept and used for capital improvements by the contractor. The City is requesting a 5-acre expansion to address overcrowding, pavement of the entire VSF, an improved sand pit and environmental controls, and enclosed evidence bays for crime scene evidence analysis and collection. In addition to the City’s requested capital improvements, AWS will make the following VSF improvements: security, fencing, camera system, access controls, customer service, a Queue Management Kiosk and telecommunication infrastructure.
The contract contains performance measures which ensure customer service, efficiency, contractual, environmental, and Texas Department of Licensing and Regulation compliance. Administrative sanctions will be assessed if performance measures are not met. AutoReturn’s software, ARIES, tracks all performance measure and creates an exception report which is used for self-auditing and reporting to the City.
AWS will begin services on October 1, 2017. The contract will have an initial term of six (6) years with the option to extend for two, one-year periods.
ISSUE:
The City’s current vehicle storage and auction contracts terminates on September 30, 2017, and upon such termination the City will lack management services for the VSF.
This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires contracts be reviewed by a Goal Setting Committee to establish a requirement and/or incentive unique to the particular contract in an effort to maximize the amount of small, minority, and women-owned business participation on the contract. The Goal Setting Committee applied the Small and Minority/ Women-Owned Business Enterprise Prime Contract Program with twenty (20) evaluation preference points awarded to Alanis Wrecker Service and ten (10) evaluation preference points awarded to Rod Robertson Enterprises, LLC as they are certified SBE and M/WBE firms located within the San Antonio Metropolitan Statistical Area.
In accordance with the Local Preference Program, the recommended Respondent received 10 points for being headquartered within San Antonio city limits.
The Veteran-Owned Small Business Preference Program was applied in the evaluation of responses received for this contract; however, the highest ranked firm is not a veteran-owned small business.
ALTERNATIVES:
Alternatives include extending the current contractor or the Department can assume management responsibilities of the VSF for a period of time that would allow another Request for Proposal process to be conducted.
FISCAL IMPACT:
The City will receive from AWS a Minimum Annual Guarantee (based on the graduated scale of the Total Adjusted Gross Income: Storage Fees, Impound Fees, Notification Fees, Auction Sales and Auction Service Fees; see attachment) or 85% of Auction Sales and 2% of Impound Fees in revenue, whichever is greater of the two. The average auction sale revenue to the City for the last three years has been $3.2 million. The revenue sharing in the proposed contract will mirror the expiring contract. For the first two years of the contract, any revenue which exceeds $3 million will be kept and used for capital improvements by the contractor.
RECOMMENDATION:
Staff recommends approval to execute a contract with Alanis Wrecker Services to provide and manage storage services for the impounding, releasing and auctioning of vehicles for the City of San Antonio Police Department.
This contract is procured by means of Request for Proposals and a Contract Disclosure Form is attached.