Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Towing Contract topic
No spam. Unsubscribe anytime.
Committee approves forwarding $15.3M increase to SFMTA tow contract with Texco
Summary
The Budget and Finance Committee voted to forward a resolution authorizing a $15.3 million increase to the Municipal Transportation Agency’s towing, storage and disposal contract with Texco LLC; the committee discussed cost recovery shortfalls, RFP timing and waiver policies for low-income and unhoused residents.
The Budget and Finance Committee on Feb. 12 voted to forward to the full Board of Supervisors a resolution approving a ninth amendment to the contract between the San Francisco Municipal Transportation Agency (SFMTA) and Texco LLC to increase spending authority by $15,300,000, bringing the contract total for the remaining term to $136,700,000.
SFMTA presenter Lorraine Fuqua told the committee the contract began in 2016 and the amendment would fund towing, storage and related services through the contract’s expiration in March 2026 while the agency completes a new competitive procurement anticipated for release in April 2025. Fuqua said the department plans a six‑month RFP process and, if the incumbent wins, a normal continuation; if a new contractor prevails, she said SFMTA would allow a three‑month transition.
Why it matters: Budget and Legislative Analyst (BLA) staff said revenues collected by the towing program—net of discounts and waivers—do not fully cover program costs and estimated the shortfall for the last year of the contract at about $8 million. BLA recommended approval of the amendment but said the city could address cost recovery by changing discounts, raising fees, increasing enforcement or reallocating costs to requesting departments.
Key program details: Fuqua described multiple waiver programs: a first‑time tow reduction (example: roughly 56% discount), low‑income waivers that reduce fees to about $104 plus up to 15 days free storage, and a one‑time full waiver and up to 30 days storage for people experiencing homelessness; fees are also waived when a vehicle is found to be stolen. Fuqua reported about 40% of subcontracting is with local business enterprises and that Texco has negotiated collective bargaining agreements with Teamsters Local 665. The department estimated some $11.4 million in total waivers and special categories, of which about $8.4 million are the waiver amounts noted earlier.
Public comment: Mark Gleason, speaking for Teamsters Local 665, expressed support for the amendment and the job stability it provides to tow workers.
Vote and next steps: The committee voted 3–0 to forward the resolution to the full Board with a positive recommendation. SFMTA plans to release the RFP in April 2025 and return with contract award recommendations between October and December 2025.
