REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department BY: SZARINA LOZANO, Management Analyst II General Services Department SUBJECT ..Title Actions pertaining to the award of two requirements contracts for the purchase of On-Demand Towing Services for the City's municipal fleet in the total not-to-exceed aggregate amount of $280,243 per year, plus annual price adjustments not-to-exceed 4%, and a contingency of $20,000 per year (Bid File 12401505) 1. Award a requirements contract to Reyna Towing of Fresno, California for one year, with five optional one-year extensions for towing services of light and medium duty municipal fleet vehicles 2. Award a requirements contract to Action Towing Dive Team, Inc. of Fresno, California for one year, with five optional one-year extensions for towing services of light, heavy, and super-heavy municipal fleet vehicles ..Body RECOMMENDATION Staff recommends Council approve the award of two requirements contracts for the purchase of On-Demand Towing Services for the City's municipal fleet in the total not-to-exceed aggregate amount of $280,243 per year, plus annual price adjustments not-to-exceed 4%, and a contingency of $20,000 per year. 1. Award a requirements contract to Reyna Towing of Fresno, California for one year, with five optional one-year extensions for towing services of light and medium duty municipal fleet vehicles. 2. Award a requirements contract to Action Towing Dive Team, Inc. of Fresno, California for one year, with five optional one-year extensions for towing services of light, heavy, and super-heavy municipal fleet vehicles. EXECUTIVE SUMMARY The General Services Department, Fleet Management Division, requests approval to establish a requirements contract for the purchase of on-demand towing services for municipal fleet vehicles. Two service providers have been selected, with each being assigned specific services within their Gross Vehicle Weight Rating (GVWR) towing range. Proposal costs vary based on vehicle class and GVWR. Reyna Towing was selected for light and medium duty towing services. This includes vehicles such as cars and utility trucks. Action Towing Dive Team Inc. was selected for light, heavy, and super-heavy duty towing services for vehicles such as cars, box trucks, semi-trucks, and construction equipment. This contract aims to reduce downtime and to enhance operational efficiency by ensuring the availability of towing service providers for City assets that are facing mechanical failures or accidents. Having multiple vendors available ensures demands are met at the lowest available price. Services from these requirements contracts will be limited to the towing of city municipal fleet vehicles and will not be used for non-city vehicles. BACKGROUND The General Services Department, Fleet Management Division is responsible for maintaining approximately 3,100 active vehicles and equipment for the City of Fresno. Fleet Management serves the City departments by providing reliable like new transportation to support their needs and service responsibilities. This is done by scheduling and performing preventative maintenance, identifying repairs, and replacing equipment in a timely manner. In instances where a vehicle can no longer be driven, the Fleet Management Division has the responsibility to transport the vehicle to the corresponding maintenance shop to be repaired. Having vendors in place to assist with these transportation services is critical, as Fleet Management does not have an internal towing service. Two service providers have been selected, with each being assigned specific services within their GVWR towing range. Proposal costs vary based on vehicle class and GVWR. Having multiple vendors available ensures demands are met at the lowest available price. Reyna Towing was selected for light and medium duty towing services of Class A (up to 10,000 GVWR) and Class B (10,000 - 26,000 GVWR) vehicles. This includes cars and utility trucks. Action Towing Dive Team Inc. was selected for light, heavy, and super-heavy duty towing services for Class A (up to 10,000 GVWR), Class C (26,001 - 33,001 GVWR), and Class D (33,002 GVWR and above) vehicles such as cars, box trucks, semi-trucks, and construction equipment. The service providers shall respond to calls 24 hours a day, seven days a week, within the maximum response time of 60 minutes or less, except during peak hours of 7:00 a.m. to 9:00 a.m. and 4:00 p.m. to 6:00 p.m., (Monday through Friday), when the required response time will be extended to 90 minutes or less. The service provider shall respond with a tow truck of the class required to tow the vehicle specified. Competitive proposals were solicited for Towing Services on January 24, 2024. On March 5, 2024, three proposals were received at the public bid opening. Action Towing Dive Team of Fresno, California and Reyna Towing of Fresno, California were determined to be the best value for the City with a term of one year with five optional one-year extensions, for a total aggregate amount not-to-exceed $280,243 per year, which is a sum of the combination of services provided by the two vendors. Fleet Management is also recommending a contingency of $20,000 per year. A contingency is needed due to the unpredictable need for towing services. The Purchasing Division has approved this contract and recommends Council approval. The City Attorney's Office has approved the contract as to form. ENVIRONMENTAL FINDING By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a "project"; therefore, it is exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is not applicable to this award given this is for non-professional services, however, Action Towing Dive Team and Reyna Towing of Fresno, California are both local businesses pursuant to FMC 4-108. FISCAL IMPACT No general funds will be used to purchase these items. The funding to cover the purchase cost of towing services has been included in the FY2025 adopted budget under the operations of the General Services Department, Fleet Management Division. Attachments: Bid Evaluation Committee Report