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Home My WebLink About03/03/2010 B A K E R S F I E L D Staff: Committee members: John W. Stinson, Assistant City Manager Harold Hanson, Chair Rick Kirkwood, Management Assistant Irma Carson Ken Weir SPECIAL MEETING OF THE BUDGET AND FINANCE COMMITTEE of the City Council - City of Bakersfield Wednesday, March, 3, 2010 12:00 p.m. City Hall North - Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 A G E N D A 1 . ROLL CALL 2. ADOPT JANUARY 25, 2010 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. NEW BUSINESS A. Discussion and Committee Recommendation Regarding CDBG, HOME, and ESG Action Plan FY 2010-11 - Kunz B. Discussion and Committee Recommendation Regarding Towing Contracts -Tandy 5. COMMITTEE COMMENTS 6. ADJOURNMENT B A K E R S F I E L D 6-L U) �kL Committee Members: Staff: John W. Stinson Harold Hanson, Chair Assistant City Manager Ken Weir Irma Carson AGENDA SUMMARY REPORT REGULAR MEETING OF THE BUDGET AND FINANCE COMMITTEE Monday, January 25, 2010 12:00 p.m. City Hall North - Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 The meeting was called to order at 12:07:26 PM 1 . ROLL CALL Committee members present: Councilmember Harold Hanson, Chair Councilmember Ken Weir Councilmember Irma Carson Staff present: Alan Tandy, City Manager John W. Stinson, Assistant City Manager Steven Teglia, Administrative Analyst Rick Kirkwood, Management Assistant Ginny Gennaro, City Attorney Nelson Smith, Finance Director Sandra Jimenez, Asst. Finance Director Joshua Rudnick, Deputy City Attorney Justin Crumley, Associate Attorney Phil Burns, Building Director Art Chianello, Waste Water Manager Bob Trammell, I.T. Director Steve Womack, Gen. Manager- Rabobank Carrie Willer, Director of Finance - Rabobank Georgina Lorenzi, Asst. to the Public Works Director Other present: Randy Arvizu, Pacific Pools & Spa Maro Medina, KCCA Bob Joyce, Attorney- KCCA Kirsten Andreassend, CSLB Heidi Valenzuela, CSLB Jialan Su, Brown Armstrong CPA's Eric Xin, Brown Armstrong CPA's Scott Thackrey, KUZZ News AGENDA SUMMARY REPORT Budget and Finance Committee Meeting Monday, January 25, 2010 Page 2 Steven Mayer, Bakersfield Californian Joel Chrisco, Paradise Pool Service Co. Marvin Dean, KMCA 2. ADOPT OCTOBER 20, 2009 AGENDA SUMMARY REPORT Adopted as submitted 12:09:20 PM 3. PUBLIC STATEMENTS None 12:09:32 PM 4. NEW BUSINESS A. Discussion and Committee Recommendation regarding Issues Related to Unlicensed Swimming Pool Contractors - Burns 12:05:50 PM The Kern County Contractors Association (KCCA) approached the City's Building Division with concerns that owner-builders are pulling more permits than they have in the past and are using unlicensed subcontractors. KCCA is requesting that the City require a list of subcontractors prior to permit issuance. Building Director Phil Burns stated that the City's responsibility is to enforce the State Building Codes. Contractors licensing falls under the jurisdiction of the California State Licensing Board (CSLB). Mr. Burns also provided statistical information, background and findings related to KCCA's concerns. Kirsten Andreassend and Heidi Valenzuela, investigators for CSLB, gave an overview of their responsibilities, the CSLB process, and provided educational handouts that are distributed to the public. Their proactive work includes performing "sweeps" and "stings" every six weeks. Mr. Burns added that the City Building Department has taken action in the process by implementing the owner-builder form "Notice to Property Owner", as required by Assembly Bill A132335, to educate property owners of their responsibility and potential liability. Bob Joyce of Lebeau Thelen Attorneys at Law, attorney for KCCA, believes that if the City were to implement more information requirements at the permitting process, the problem can be eliminated. KCCA requests that the City impose upon the owner-builder, at the permitting process, the same standards that are imposed upon a licensed contractor. City Attorney Ginny Gennaro responded that the City does not have the laws in effect currently to do what Mr. Joyce is suggesting. However, there will be issues with enforcement. Mario Medina, owner of Crystal Pools, stated that his business has suffered due to owner-builders who employee unlicensed contractors. City Manager Alan Tandy asked if it is possible to supplement the permit application with a plain-language document, requiring the owners signature, outlining the responsibilities and liabilities. Committee member Ken Weir made a motion to develop a plain language form. Motion was approved by all Committee members. City Attorney Gennaro added that staff will move forward with the recommended changes. Staff does not need to report back to the Committee on this issue. Marvin Dean of the Kern Minority Construction Association, provided handouts to the Committee regarding Proposed Local Contracting SBE/ DBE/UDBE Federal Stimulus Transportation Program. Mr. Dean is requesting a meeting with various groups and City SACouncil Committees\2010\Budget and Finance\January\January 25 Agenda Summary.doc AGENDA SUMMARY REPORT Budget and Finance Committee Meeting Monday, January 25, 2010 Page 3 Staff to develop a program that will be funded with Federal Stimulus Transportation Funds. Mr. Dean would like to report back to the Committee the results of these meetings. Committee member Irma Carson asked that staff provide a list of contractors that receive stimulus funds and how many of them are using minority subcontractors. Assistant to the Public Works Director Georgina Lorenzi will work with the City's Economic and Community Development Department to provide a list. B. Review, Discussion and Committee Recommendation regarding the Annual Financial Reports-Smith 1 :07:51 PM Finance Director Nelson Smith provided a brief overview of the Brown Armstrong audit, which included the following reports for fiscal year ended June 30, 2009: • Comprehensive Annual Financial Report (CAFR) • Agreed Upon Conditions Report • Single Audit Report (Draft) -Schedule of Federal Expenditures • Independent Auditors Report - Compliance with Contractual Requirements Relative to the Bakersfield Subregional Wastewater Management Plan • Independent Auditors Report on Appropriations Limit Worksheet (GANN Limit) • Independent Auditors Report- Rabobank Eric Xin, and auditor for Brown Armstron Paulden McCown Starbuck Thornburgh & Keefer, summarized the audit process -and the reported findings in the City's I.T. Department , as outlined in the agreed upon conditions. However, no other significant deficiencies were found. Committee Chair Harold Hanson asked if any of the findings in I.T. were critical. Mr. Xin replied that the findings were not critical but should be addressed prior to future audits. City Manager Alan Tandy commented that in respect to the finding related to duplicate staffing, the City would most likely be unable to comply due to its current budget situation. Mr. Xin responded that this finding may be resolved in alternative ways. Committee member Ken Weir made a motion to recommend acceptance of the audit reports and forward to the full Council. Motion was approved by all Committee members. C. Review, Discussion and Committee Recommendation regarding the Annual Financial Reports -Smith 1 :19:07 PM Assistant to the Public Works Director, Geogina Lorenzi provided a brief overview of the Transportation Development Act audit for funds provided to improve the City's bike paths and the operation of the AMTRAK Station. There were no reported findings for this audit. Committee member Ken Weir made a motion to recommend acceptance of the audit report and forward to the full Council. Motion was approved by all Committee members. D. Discussion and Committee Recommendation regarding the 2010 Committee Meeting Schedule-Stinson / Kirkwood 1 :20:00 PM Adopted as submitted. SACouncil Committees\2010\Budget and Finance\January\January 25 Agenda Summary.doc AGENDA SUMMARY REPORT Budget and Finance Committee Meeting Monday, January 25, 2010 Page 4 5. COMMITTEE COMMENTS None 1 :20:24 PM 6. ADJOURNMENT The meeting adjourned at 1 :20:38 PM SACouncil Committees\2010\Budget and Finance\January\January 25 Agenda Summary.doc x L • B A K E R S F I E L D Economic and Community Development Department M E M O R A N D U M TO: Bu t and Finance "Committee February 22, 2009 C�CnC-k,G— 11�z• v� FROM: Donna L. Kunz, Econo is Development Director SUBJECT: CDBG, HOME, and ESG Action Plan FY 2010-11 As an Entitlement City under the U. S. Department of Housing and Urban Development (HUD), the City receives annual entitlements in order to improve low-income neighborhoods in our City. The HUD Community Development Block Grant (CDBG), HOME Investment Partnership (HOME) and Emergency Shelter Grant(ESG) entitlements for FY 10-11 have not been allocated to date, however staff is anticipating an allocation similar to FY 09-10 that would reflect a total of $5,206,847 in Federal entitlement funding. Staff is projecting program income for CDBG in the amount of $15,000 and $100,000 for HOME. The total proposed budget for CDBG, HOME, and ESG for FY10-11 is estimated to be $5,321,847. The deadline for the submission of CDBG, HOME, and ESG applications for FY 2010-11 funding was October 30, 2009. This year we received 8 proposals for assistance from non- profit and for-profit organizations totaling $1,659,700 and 13 intra-city proposals totaling $3,849,056 for projects to improve the quality of lives for low-income neighborhoods and improve infrastructure in those low-income neighborhoods. Attached is a list of all the proposals and projects submitted for this years CDBG, HOME, and ESG funds. After reviewing the requests for funding, staff has prepared a proposed budget and Action Plan for FY 10-11 . Attached is a summary of the proposed budget for consideration by the Budget and Finance Committee and recommendation to the City Council. SADEBBIE'S\Budget&Finance\Action Plan 10-11.doc X L • B A K E R S F I E L I Economic and Community Development Department M E M O R A N D U M February 10, 2010 TO: Alan Tandy, Ci�y /Manager{� FROM: Donna Kunz, Economic Development Director SUBJECT: Non-Profit & For-Profit Applications for HUD FY 2010-11 Funding The deadline for the submission of CDBG, HOME, and ESG applications for FY 2010-11 funding was October 30, 2009. This year eight (8) applications were submitted from non- profit and private entities totaling $1,659,700. Below are summaries and staff's comments of the applications received from applicants requesting assistance from the various HUD programs for FY 10-11 . Community Development Block Grant Applications— FY 2010-11 Applicant Estimated Cost Description City Funds Requested HUD Pro osal Name Location Other Sources Eli ible/Qualified Boys & Girls Club of Expansion of existing $124,894 Total Project Cost Yes Kern County—After programs to serve low School Services for income youth. Service Youth would expand from 100 After school services to 175 children served. $40,000 City for youth in East Ward 2 Bakersfield. Bakersfield Purchase recycling $800,000 Total Project Cost Yes Association for equipment for recycling Retarded Citizens center located at 2240 S. Union Avenue. Recycling equipment $400,000 City purchase. Ward 1 Bakersfield Senior Funds to continue BSC $85,000 Total Project Cost Yes Center Inc. (BSC) current level of services to seniors in southeast BSC Public Services and central Bakersfield. Located at 530 4th Street $85,000 City Ward 1 Page 1 of 2 HOME Program Applications — FY 2009/10 rApartments Family Affordable multi-family $18,434,932 Total Project Cost Yes rental housing located at 1629 Lotus Lane. Ward ng for 1 roect. $500,000 City HOME/CHDO Villa San Dimas Rehabilitation of existing $400,000 Total Project Cost Yes Rehabilitation Project housing located at 601 36th Street. Rehabilitation $400,000 Cit Emergency Shelter Grant (ESG) Applications — FY 2009/10 Bethany Services, Continue to fund $2.20 million annual operating Yes (BHC) operational cost of the budget Homeless Center Bakersfield Homeless including cost of security Center Emergency maintenance and utilities Shelter Grant at 1600 E. Truxtun $125,000 City ESG Avenue. (City Wide $125,000 Match Alliance Against Continue to fund the Family Violence operating cost of the budgetmillion annual operating Yes (AAFV) Battered Women's Shelter including utilities, Shelter for Battered insurance, maintenance T3-2,000 City ESG Women and their and wages for a $32,000 Match Children counselor. – 1600 E Truxtun Avenue City Wide) Bakersfield Rescue Continue to fund $1 million annual operating Yes Mission (BRM) operational cost of the budget Bakersfield Rescue Homeless Mission including Intervention Services maintenance, utilities, T77,700 City ESG and personnel. – $ 77,700 Match 816,810,812,800,724 E. 21" Street Cit Wide Page 2 of 2 x , • B A K E R S F I E L D Economic and Community Development Department M E M O R A N D U M February 10, 2010 TO: n Tandy, City Manager FROM: lo-nnai L. Kunz, Ecot mic Development Director SUBJECT: Intra City Proposals Received for FY 2010-11 CDBG Assistance The deadline for submission of proposals for FY 2010-11 was October 30, 2009. We received 13 proposals totaling $3,849,056. Below are project descriptions, location, cost estimates, and eligibility/qualification summaries. Project Description City Department HUD & Ward Eli ible/Qualified PUBLIC WORKS Airport Landscaping Public Works Yes/Yes Provide landscaping around the perimeter of the airport Ward 1 for beautification in SE Bakersfield. CDBG - $200,000 Belle Terrace Area Curb Gutter Sidewalk & Public Works Yes/Yes Repavement Proiect Ward 1 Improve drainage currently causing street failures. Install curb, gutter and sidewalk as needed prior to street reconstruction. Brundage Lane to Belle Terrace Way and Chester Avenue to Union Avenue. CDBG – $500,000 California & P St. Area Curb Gutter Sidewalk & Public Works Yes/Yes Repavement Proiect Ward 1 Improve drainage currently causing street failures. Install curb, gutter& sidewalk as needed prior to street reconstruction. California Avenue to Brundage Lane and from "T" Street to Chester Avenue. CDBG - $500,000 Beale Area Curb Gutter. Sidewalk & Re avement Public Works Yes/Yes PrPr—Lt Ward 2 Improve drainage currently causing street failures. Install curb, gutter& sidewalk as needed prior to street reconstruction. Flower Street to Niles Street to Beale Avenue to East City Limits. CDBG - $500,000 Project Description City Department HUD & Ward Eli ible/Qualified Oleander Area Curb Gutter Sidewalk & Public Works Yes/No* Repavement Project Ward 1 Improve drainage currently causing street failures. *Area as a whole Install curb, gutter & sidewalk as needed prior to does not qualify. street reconstruction. California Avenue to Bank Street and from A Street to U Street. CDBG - $500,000 Terrace Way Sewer Improvements Public Works Yes/Yes Construct new sewer line to 4 low income homes Ward 1 annexed to the City. City Forces to construct the improvements, costs are solely for materials. Between Wible Road & Stephens Drive. 3113, 3109, 3105, and 3101 Terrace Way. CDBG —$64,900 ECONOMIC AND COMMUNITY DEVELOPMENT Alley Refurbishment Project EDCD Yes/Yes Repavement of alleyway and sidewalk and curb Ward 2 renovation in alleyway between "G" & "H" & 18" and 19tH CDBG - $231,401 FIRE DEPARTMENT Fire Station#1 Restoration Project Restoration of Fire Fire Department Yes/Yes Station facility at 2101 H St. CDBG - $328,814 Wards 1,2,3 RECREATION AND PARKS Dr. Martin Luther Kinq J�Park achers and Recreation & Parks Yes/Yes Playground Shade Struc Ward 1 Replacement of bleachers in gymnasium and the purchase and installation of shade structures over existing playground equipment. 1000 South Owens CDBG —$83,998 Jefferson Park Plavground Shade Structure Recreation—& Parks Yes/Yes Purchase and installation of shade structures over Ward 2 existing playground equipment. Southwest corner of Bernard Street and Beale Avenue. CDBG - $40,360 Planz Park Plavground Shade Structure Recreation & Parks Yes/Yes Purchase and installation of shade structures over Ward 7 existing playground equipment. Southeast corner of Planz Road and South H Street. CDBG - $38,726 Wayside Park Playground Shade Structure Recreation & Parks Yes/Yes Purchase and installation of shade structures over Ward 1 existing playground equipment. Northeast corner of -Ming Avenue and El Toro Drive. CDBG - $45,853 PUBLIC SERVICES Mill Creek Linear Park Police Patrol Police Department Yes/Yes Continue funding to provide public services police patrol Ward 2 three BPD officers for Mill Creek Linear Park upon completion. "E" Street to Union Avenue and California Avenue to Golden State Avenue. CDBG - $291,500 Graffiti Removal Program Public Works Yes/Yes Remove and discourage graffiti within Low-Mod Areas City-wide within the City. City wide. CDBG - $523,504. Note: CDBG funded public services cannot exceed 15% of CDBG entitlement. COMMUNITY DEVELOPMENT BLOCK GRANT(CDBG) PROPOSED Fiscal Year 10-91 Budget and Finance Committee 22-Feb-?0 ' PW ED/CD CDBG Entitlement for FY 2010-11 -Estimated Ward $3,355,253 DD Dir.Del. Program Income Projected for 10-11 _ 5 TOTAL RESOURCES ,000 $3,370,253$1$1 TOTAL ADIW! -20%CAP _ $674,051 Long term obligations: _ Debt Svc.Public Fac.-P&I on$4.1 m _ $341,289 Debt Svc.Public Fac.-P&I on$800,000 $6 , 5428 TOTAL LONG TERM OBLIGATIONS $406,717 PUBLIC SERVICES-15%CAP= Prior Year PI+Current Entitlement Graffiti Removal in HUD Eligible Areas 120,000 Bakersfield Senior Center-Admin.Contribution 1 85,000 Downtown Area Police Patrol-("E"St to Union&Calif.To Golden St.) 2 260,000 Fair Housing 30,000 Sub-total $495,000 Subtotal Administration,Debt and Programs $1,575,768 $p NET RESOURCES AVAILABLE FOR CIP $1,794,485 Note: Requests for Capital Improvement Projects include project cost and direct delivery if applicable: - Capital Improvement Projects(Proposed) Ward Belle Terrace Area Curb,Gutter,Sidewalk,&Reconstruction Project 1 500,000 Beale Area Curb,Gutter,Sidewalk,&Reconstruction Project 2 500,000 Alley Refurbishment&Sidewalk Impry Project between G,H,18th& 19th St. Padre) 2 431,401 Airport Landscaping 1 200,000 Dr.Martin Luther King Jr.Park Bleachers and Playground Shade Structure 1 83,998 Jefferson Park Play round Shade Structure 2 40,360 Planz Park Playground Shade Structure _ 7 38,726 TOTAL , AMOUNT OVER/UNDER NET RESOURCES AVAILABLE $0 $1,794,485 $U C:\DOCUME-1\tcrosby\LOCALS-1\Temp\XPGrpWise\CDBG Budget PROPOSED FY1011 Bud&Fin 022210.xlsx 2/10/20104:53 PM HOME Investment Partnership& Emergency Shelter Grant: P(ZOPOSED -- T Budget and Finance Committee Home Investment Partnership HOME 22-Feb-2010 FY 2010-11 RESOURCES: HOME Entitlement for FY 2010-11 - Estimated $1,704,473 Program Income Projected 10-11 - _ $100,000 Sub-Total - -- $1,804,473 TOTAL RESOURCES $1,804,473 PROGRAM ADMINISTRATION - 10% $180,447 PROPOSED HOUSING PROGRAMS Project Cost Direct Delivery Housing Urban Bakersfield: SEPA,DT&OTK Downpayment Assistance 600,000 — (Reserved for Creekview Villas 600,000) — CHDO Set Aside 15%: (HUD mandated) 255,671 New construction (Baker Street Senior Housing Phase 2) __ 768,355 Total Program/Project Costs+ Direct Delivery 1,624,026 0 Amount over/under net resources available - $0 EMERGENCY SHELTER GRANT(ESG) PROPOSED ESG Grant for FY 2009-10 - Estimated - $147,121 o Administrative Cap $7,333 Agencies Funded: Homeless Intervention Services(Bakersfield Rescue Mission) $62,000 Bethany Homeless Shelter $62,000 Alliance Against Family Violence $15,788 Amount over/under net Resources Available $0 C:\DOCUME-1\tcrosby\LOCALS-1\Temp\GWViewer\HOME ESG Budget PROPOSED FY1011 Bud&Finance 022210.xlsx o� BAKE/� �W"ORAT O"s� ADMINISTRATIVE REP �ARY 1L>® A O RT cgL10 t MEETING DATE: January 27, 2010 AGENDA SECTION: New Business ITEM: TO: Honorable Mayor and City Council APPROVED FROM: Alan Tandy, City Manager DEPARTMENT HEAD DATE: January 22, 2010 CITY ATTORNEY CITY MANAGER 4S SUBJECT: Resolution Regarding Tow Truck Services, RECOMMENDATION: Staff recommends adoption of the Resolution which would rely upon the California Highway Patrol standards and list as the qualifying criteria for the City tow rotation list, effective July 1, 2010, BACKGROUND: Issue: Recently staff was prompted by a Councilmember referral to review the process by which the City selects tow companies for inclusion on the Police Departments (PD) towing rotation list. A local tow company owner felt that an equitable process did not exist for those who sought inclusion as a contract tow vendor for the PD. Staff therefore began a review of the process in place. During this review several groups became very interested in the outcome of staff's review and began lobbying efforts to either expand the number of tow companies allowed to do business with the City or to keep the status quo, depending on which side they were on, The Bakersfield Towing Coalition represents the group of tow companies currently on the PD rotation, while the Bakersfield Towing Association is made up of fifteen (15) or so local tow companies interested in contracting with the City to provide towing services, It should also be noted that there may be additional tow companies interested in this issue that are not represented by either group. In general, the Bakersfield Towing Coalition has taken the position that the current process in place is working and the current vendors under contract with the PD provide a consistent quality service and have made significant investments in their businesses, based on serving these contracts. In general, the Bakersfield Towing Association has taken the position that the current system is unfair and restricts business opportunities to a select few who have worked to protect their perceived monopoly with respect to the PD towing rotation, Review of the current process led staff to believe that a new and more equitable process should be implemented. The goal of staff is to insure this process is clear and understandable so that those who wish to do business with the City have a clear understanding of our procedures. This new process will also help in removing the perception that a company needs to hire a lobbyist to either get on, or remain on the PD rotation list. Staff reviewed a number of options and researched several other jurisdictions during this process. The following information provides an overview of the January 22,2010, 10:19AM S:\000NCIUAdmins\09-10 Admins\row-rruckReso.doc ADMINISTRATIVE REPORT current situation as well as staff's recommendation for a new policy to govern how tow companies are selected to contract with the City. Current Status: The PD maintains a list of contracted tow companies that are regularly called upon, on a rotational basis, to provide towing services. This list includes companies that can provide light, medium and heavy-duty towing services necessary for responding to code violations, traffic accidents, DUI checkpoints, vehicle impoundments and other instances where vehicle tows are required. Specific equipment specifications, rates for services, and the number of tow companies that can contract with the City to provide towing services has been set by Council Resolution since 1994. The cost associated with these towing services is, in most cases, the responsibility of the owner of the vehicle. However, the PD rotational list is utilized to determine the firm that is called upon to provide these services, unless a preference is offered by the owner of the vehicle in question. Currently the PD rotational list includes six (6) companies that provide towing services under contract with the PD and they include: Golden Empire Towing, Inc. - (light, medium and heavy duty) Jim's Towing Service, Inc. - (light, medium and heavy duty) H&S Body Works & Towing - (light and medium duty) Randy's Towing - (light duty) Louie's Towing - (light duty) Barnett's Towing - (light duty) One of the six tow companies is designated as the inside storage facility for vehicles impounded and stored for investigative purposes. Currently, the designated facility is Randy's Towing. It is the City's intent to enter into a contract for evidence towing and storage services with one (1) tow company by way of a Request for Proposal process. Each company's contract was updated in 2007 and they include indeterminate terms, however, these contracts include a termination clause which may be triggered by either party upon ten (10) days written notice. 2007 was also the last time that the Council Resolution setting rates and equipment specifications for tow truck services was updated. Current Vendor Selection Process: Currently, tow companies interested in contracting with the City must submit a PD Tow Service Rotation List Application to the Traffic Section Commander. However, unless one of the six vendors on the PD rotation list is removed either at their request or for cause, no new company has been allowed to join the rotation. If an opening occurs, the PD will then review the applications that they have on hand and inquire if those companies are still interested in contracting with the PD. Following that process, the PD conducts an equipment and facility inspection of the tow companies that have applied and a replacement company is selected by the Chief of Police or his designee. This process requires interested new vendors to remain on a waiting list for an unknown and potentially lengthy period of time. There are currently nine (9) tow companies with applications on file with the PD. Due to the uncertainty of the current process, some companies have felt the need to hire representatives to assist them in their efforts to join the PD rotation list, while those currently on the PD rotation list have hired representatives to assist in maintaining the status quo. January 22,2010, 10:19AM S:\000NCUAdmins\09-10 Admins\TowTruckReso.doc ADMINISTRATIVE REPORT Volume of Calls for Service: To put some context to the business opportunities generated by these contracts, the chart below details the number of calls for towing services for the past several years. This information comes from PD dispatch records and DUI/Drivers License (DL) Checkpoint records. It is important to note that these numbers are likely to increase given the recent success the PD has had in receiving grant funding for DUI checkpoints. Regular 2007 Monthly 2008 Monthly 2009 Monthly Tow Total Avg. Total Avg. Total Avg. Barnett's 1737 145 1881 157 1645 138 GET 1711 143 1903 159 1642 137 H&S 1739 145 1908 159 1655 138 Jim's 1728 144 1898 158 1651 138 Louie's 1738 145 1910 .159 1662 139 Randy's 1756 146 1917 160 1662 139 Heavy Duty 2007 Monthly 2008 Monthly 2009 Monthly Tow Total Avg. Total Avg. Total Avg. GET 45 4 53 . 4. 16 1 Jim's 34 3 52 4 21 2 DUI/DL 591 49 787 65 1368 114 Checkpoint Tow Police 2007 Monthly 2008 'Monthly 2009 Monthly Vehicle Total Avg. Total Avg. Total Avg. Tow Barnett's 58 5 108. 9 85 7 TOTALS 11,137 12,417 11,407 In addition to the towing numbers provided above, and outside of the contracts with the existing six vendors, the City Public Works Department regularly requires towing services for its fleet of vehicles. It is the intent of the City to include these service needs through the contractual agreements when they are updated, This Resolution will include a rate structure that is to be utilized by City contracted towing vendors for these types of towing calls, as they will be handled through the PD rotational list in the future. Current City Regulations: Prior to 1994, and as far back as 1977, regulations governing contracted towing services, including the maximum number of contractors allowed, were included in the Municipal Code. The rate schedule that was applicable to towing services provided via contract with the City was set by Resolution and this schedule was periodically updated. During this time, the regulations included the following statement: "There shall be a maximum of six towing services to provide service in the City at the request of the Police Department. " January 22,2010, 10:19AM S:\COUNCIUAdmins\09-10 AdminsUmTruckReso.doc ADMINISTRATIVE REPORT This section of the Municipal Code no longer exists and in 1994 the Council passed a Resolution (207-94) which set the rates and equipment specifications for tow truck services provided pursuant to contract with the City, At this time all regulations governing towing services contracted by the City were provided for in Resolution. Included in this Resolution was the following statement: "The City shall contract with no more than six (6) towing services each for light-duty and medium-duty towing services, and no more than two (2) towing services for heavy-duty towing services. " Since 1994, the Council has passed four (4) Resolutions updating the rates and equipment specifications for tow truck services provided under contract (15-95; 040-02; 089-05; 186-07), In practice, the PD rotational list has only included six (6) different tow companies, even though the 1994 Resolution allowed for a potential maximum of fourteen (14) different tow companies to be under contract with the PD. Review of Other Jurisdictions: Staff reviewed the process utilized by multiple jurisdictions, related to their contracting for tow services. Unfortunately, this review produced results that were wide-ranging with jurisdictions having anywhere from 2 to 43 tow companies on their rotation lists. Most of the jurisdictions surveyed did not have a set maximum limit of tow companies that could be on their rotation list, although some did. Staff also reviewed the current process utilized by the Kern County Sheriff's Office (KCSO) and the California Highway Patrol (CHP), The CHP has an established process by which they annually (through an open enrollment process) approve qualified towing vendors in the Bakersfield area. This thorough process requires vendors to submit to inspections of their equipment and facilities and meet other specific qualifications and requirements. Vendors who meet the CHP requirements then enter into a CHP Tow Services Agreement. The CHP Tow Services Agreements also include provisions for corrective action if any issues arise with a specific tow company. The KCSO utilizes a similar approved towing list as a basis for its tow rotation. Recommended Changes: Staff is recommending that the City utilize the CHP Bakersfield Area Tow List (Northwest Tow District; Central Tow District; or Southwest Tow District) as it is updated each year. Currently there are twenty-two (22) tow companies on these lists. Utilizing this process will provide clarity as to the minimum qualifications that are required for a tow company to contract with the City. All companies on the CHP Bakersfield Area Tow List (Northwest Tow District; Central Tow District; or Southwest Tow District) would then be eligible to enter into a tow service contract with the City if they chose to do so. It is being recommended that these new contracts have an effective date of July 1, 2010, This change in policy would expand the opportunity for tow companies to do business with the City beyond the current six vendors. Administration of this expanded list of tow companies is not an issue for staff as the rotation system in place can easily accommodate an expanded number of companies. Furthermore, utilizing this process will not require a duplication of efforts as the CHP qualification criteria is very similar to existing City requirements. The City will also be able to require additional levels of insurance and oversight through our own contracts with qualified vendors. It is staff's intent that the new towing contracts discussed above will be administered by the Finance Department while the PD will January 22, 2010, 10:19AM SACOUNCIL1Admins109-10 Admins\TowTruckReso.doc ADMINISTRATIVE REPORT maintain administration of the rotational process via the PD Dispatch Center. Adoption of this Resolution will implement the staff recommended process outlined above and will set the rates for tow services provided via the City Rotation list. It is important to note that staff is not recommending a change to the existing rates that are currently in place for towing services provided to the public. However, we are adding a new rate structure for City vehicle tows. Staff believes this will provide a clear, fair and equitable process for all interested tow companies to follow if they are interested in contracting with the City. January 22,2010, 10:19AM S:I000NCUAdmins109-10 Admins\TowTruckReso.doc RESOLUTION NO. A RESOLUTION REGARDING TOW TRUCK SERVICES WHEREAS, the City of Bakersfield (herein "City") has a need to contract for heavy, medium, and light towing services for its own need and the need of its citizens; and WHEREAS, City currently contracts with a number of tow truck services to provide heavy, medium, and light tow services to meet its needs; and WHEREAS, there are currently several City resolutions which address tow truck services, and rates including but not limited to, Resolution Nos, 207-94, 15- 95, 040-02, 089-05, and 186-07; and WHEREAS, it is City's intent to regulate City and non-City tow services through this Resolution and future contracts; and WHEREAS, it is City's intent to allow the City Manager to execute contracts for towing services with an effective date of July 1, 2010, for City and non-City tows, in accordance with this Resolution; and WHEREAS, it is City's intent to enter into a contract for evidence towing services with one (1) tow truck service by way of a separate Request For Proposal process; and WHEREAS, tow truck services which execute said contracts shall be capable and willing to tow both City and non-City vehicles; and WHEREAS, the City Council desires to update how it determines which tow truck companies can contract with City for tow truck services and the rates for said services. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield as follows: I . The foregoing recitals are true and correct and incorporated in their entirety herein by reference. SACOU NO L\Resos\09-10\TowTruckServices.doc -- Page 1 of 3 Pages -- 2. This Resolution supersedes all previous Resolutions dealing with tow trucks, including but not limited to 207-94, 15-95, 040-02, 089-05, and 186-07 in their entirety. 3. Rates to be charged for tow truck services pursuant to contract with the City shall be at the rates set forth in Exhibits "A" and "B" attached and incorporated herein by reference. 4. It is the intent of the City not to limit the number of heavy, medium, or light tow truck services that contract with the City for towing services. 5. It is the intent of the City to enter into contracts with tow truck services for heavy, medium, and light tow truck services as long as: (1) The tow truck service in question is listed and is in good standing on the most current California Highway Patrol Bakersfield Area Tow List (Northwest Tow District, Central Tow District or Southwest Tow District); and (2) The tow truck service in question meets tow truck classifications, equipment specifications, and auxiliary equipment specifications according to the most current California Highway Patrol Bakersfield Area Tow Services Agreement standards and certification requirements, as all are amended from time to time; and (3) The tow truck service in question and City are willing to execute a contract for tow truck services for both City and non-City vehicles. 6. The City Manager is directed to begin the Request For Proposal process to retain one (1) tow truck service for evidence towing services. --00000-- S ACOU NO L\Res os\09-10\TowTruckServices.doc -- Page 2 of 3 Pages -- HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on , by the following vote: AYES: COUNCILMEMBER COUCH, CARSON, BENHAM, WEIR, HANSON,SULLIVAN,SCRIVNER NOES: COUNCILMEMBER ABSTAIN COUNCILMEMBER ABSENT: COUNCILMEMBER ROBERTA GAFFORD, CMC CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED By HARVEY L. HALL Mayor APPROVED AS TO FORM: VIRGINIA GENNARO City Attorney By CHRISTINE K. IM Associate City Attorney Attachments: Exhibits A and B VG:CKI/Isc S:\COUNCIL\Resos\09-10\TowTruckServices.doc -- Page 3 of 3 Pages -- EXHIBIT A LOCAL TOW RATE STRUCTURE MAXIMUM RATES Tow Truck Services. Rates to be charged for tow truck services by any business providing tow services to the City pursuant to contract between the City and the business shall be set forth as follows: A. Light-Duty Tow Services. Use of a tow truck which has a manufacturer's Gross Vehicle Weight Rating ("GVWR") of at least 14,000 pounds and meets current CHP specifications for a Class A Tow Truck. All light-duty towing Perhour.....................................................$148.00 Inside Storage per day...............................................$30.00 Outside Storage per day.............................................$25.00 Service call charge...................................................$40.00 After hours release................. $50 00 .................................. . B. Medium-Duty Tow Services. Use of a tow truck with a manufacturer's GVWR of at least 26,001 pounds and meets current CHP specifications for a Class B Tow Truck. All medium-duty towing Perhour.....................................................$180.00 Inside Storage per day...............................................$35.00 Outside Storage per day.............................................$27.00 Service call charge........ . $50.00 After hours release...................................................$50.00 C. Heavy-Duty Tow Services. Use of a three-axle tow truck with a manufacturer's GV" of at least 48,000 pounds and meets current CHP specifications for a Class C Tow Truck. All heavy-duty towing Perhour.....................................................$300.00 Inside Storage per day...............................................$50.00 Outside Storage per day.............................................$40.00 Service call charge...................................................$75.00 After hours release...................................................$50.00 EXHIBIT B LOCAL TOW RATE STRUCTURE FOR CITY VEHICLES MAXIMUM RATES Tow Truck Services For City Vehicles. Rates to be charged for tow truck services of City vehicles by any business providing tow services to the City pursuant to contract between the City and the business shall be set forth as follows. All rates for the Greater Bakersfield area are defined by the following boundaries: • 7`h Standard Road to the north • Taft Hwy. to the south • Heath Road to the west • General Beale Road to the east The rates listed are per tow. There is no fuel surcharge. *Note: Outside the defined area,add$4 per mile from point of pick-up to boundary. A. Light-Duty Tow Services. Use of a tow truck which has a manufacturer's Gross Vehicle Weight Rating("GVWR")of at least 14,000 pounds and meets current CHP specifications for a Class A tow truck. All light-duty towing per tow............... .......$35.00 ................ B. Medium-Duty Tow Services. Use of a tow truck with a manufacturer's GVWR of at least 26,001 pounds and meets current CHP specifications for a Class B tow truck. All medium-duty towing per tow...................... .......$75.00 .............. C. Heavy-Duty Tow Services. Use of a three-axle tow truck with a manufacturer's GVWR of at least 48,000 pounds and meets current CHP specifications for a Class C tow truck. All heavy-duty towing per tow.............. ...$175.00 D. Low-Bed Trailer Services. All low-bed trailer towing per tow ................ .........$100.00 1/28/2010 Resolution Regarding Tow Truck Services Bakersfield City Council Meeting January 27, 2010 Current Status • Police Department maintains a list of contracted tow companies regularly called upon to provide towing services: -Traffic Accidents -Code Violations -DUI Checkpoints -Vehicle Impoundments • Selection of company on a rotational basis /type of tow required. • Currently 6 companies on the rotation list: Golden Empire Towing, Inc. — light, medium and heavy duty Jim's Towing Service, Inc. — light, medium and heavy duty H&S Body Works& Towing — light and medium duty Randy's Towing — light duty Louie's Towing — light duty Barnett's Towing — light duty z 1 1/28/2010 Current Status Cont. • 1 company selected as "Inside Storage Facility" for vehicles impounded and stored for investigative purposes (Randy's Towing). • The 6 vendor contracts currently in place were updated in July of 2007 (Rates were also updated): -Indeterminate terms -10-day termination clause • Majority of costs associated with contracts paid for by the owner of a vehicle. • City incurs costs only for City vehicle tows; evidence tows; and in the event that a tow was in error. 3 Calls for Service DUI/Dl 591 44 787 65 1368 114 Checkpoint low 4 2 1/28/2010 Citv Requlation History • 1977 regulations /equipment specifications set in Municipal Code (City Population was 82,000): "There shall be a maximum off six towing services to provide service in the City at the request of the Police Department." • Rates were set by separate Council Resolution. • 1994 rates & equipment specifications combined in Resolution (207-94). "The City shall contract with no more than six (6) towing services each for light-duty and medium-duty towing services, and no more than two (2) towing services for heavy-duty towing services." • Municipal Code section repealed (1111/95) /4 rate updates since 94. 5 Issues • Current application process: -Bakersfield Police Department Tow Service Rotation List Application. -Applications are filed until opening exists. -If opening occurs those with pending apps. are contacted and if interested, inspection is scheduled. -Selection of replacement tow company by Chief or his designee. • Uncertain and somewhat unknown process. • No clarity as to when or if an opening may occur. • Prompts some to feel like they need to hire a Consultant/Attorney to get on or stay on the rotation list. • Lack of clarity/transparency potential for rumors & innuendo. • Process not how City normally conducts business. 6 3 1/28/2010 Other Jurisdictions IMI Chino 84,173 3 Open 3 max Clovis 95,128 16 1-year Unlimited Specific Criteria Fresno 495,913 43 Open Will be 30 Specific (attrition) Criteria Glendale 207,303 4 Open Unlimited Specific criteria Huntington 200,000 3 5-years Unlimited Specific Beach criteria Riverside 300,430 16 3-years Unlimited CHP criteria Sacramento 481,097 25 5-years Unlimited Point value system San Bernardino 204,483 6 Open 6 max Simi Valley 125,814 2 Open N/A Handshake Agreement Stockton 290,409 16 Open Unlimited Other Jurisdictions Cont. • California Highway Patrol Bakersfield Area Rotation Tow List: -22 in Bakersfield area. -Set statewide criteria, equipment standards and requirements. -Annual `open enrollment" process (end of May/early June). -Those that succeed enter into a Tow Service Agreement with CHP July 1. • Kern County Sheriff's Office utilizes a list of 45 towing companies throughout Kern County(21 in Bakersfield area). -List developed based on inspection/equipment specifications similar to CHP requirements. 8 4 1/28/2010 Recommendation Goal: to ensure we have a fair, open and understandable process by which tow companies are selected for the City's tow rotation list. • Resolution will set eligibility criteria (CHP list)/tow rates for city vehicles and non city vehicles. • Companies which meet CHP requirements and certifications and are listed on the CHP Northwest, Central or Southwest Tow Districts would be eligible to contract with the City. • Once eligible company must enter into a contract with the City to be on the tow rotation list: -Additional insurance requirements -Performance standards -Annual contracts/July 1, 2010 -Contracts administered by Finance Department 9 Questions 5