Committee forwards $15.3 million amendment to SFMTA tow contract with Texco LLC

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 add $15,300,000 in spending authority so the contractor can operate through the end of the current contract term on March 31, 2026.

The amendment is intended to fund towing, storage and disposal services for the remainder of the contract term. Lorraine Fuqua, manager with SFMTA's Parking Group, told the committee the current contractor is meeting performance targets and the department plans to reprocure the service with an expected RFP release in April 2025 and a six-month evaluation period.

Why it matters: SFMTA's towing program does not fully recover its costs, in part because of fee-waiver policies for low-income and unsheltered residents and because SFPD-directed tows and other categories reduce revenue. The amendment keeps operations running while the city finishes the procurement for the next contract year.

Service, waivers and costs SFMTA said the contract caps contractor cost increases to CPI and the vendor has met response-time targets, with a 93% on-time arrival rate for towed vehicles when requested by SFMTA or SFPD. Fuqua said roughly 40% of subcontracting goes to local business enterprises and the vendor has negotiated collective bargaining agreements with tow employees.

Fuqua described SFMTA's waiver programs: first-time tow reductions and a low-income reduction that can lower an owner charge to about $104 and provide up to 15 days free storage; an unhoused-person one-time full waiver and up to 30 days' free storage; and waivers when vehicles were stolen and tows requested by SFPD. In aggregate, SFMTA reported about $11,400,000 in discounts and $8,400,000 in actual waivers in the portfolio reviewed by staff.

Budget and Legislative Analyst findings Nick Menard of the Budget and Legislative Analyst (BLA) said the amendment is consistent with prior practice: it adds $15.3 million to provide spending authority through March 2026 while the agency reprocures services. The BLA noted the broader towing program — which also includes rent for parking facilities and SFMTA enforcement costs — will cost SFMTA roughly $8 million in the last year of the contract and recommended approval while noting options to reduce the subsidy, including changing discount policies or seeking reimbursement from other city departments when tows are performed at their direction.

Supervisor questions and next steps Supervisor Connie Chan, chair, and Vice Chair Matt Dorsey asked whether other departments that request tows (including SFPD and other city agencies) could reimburse SFMTA for the cost. Chan asked the Mayor's budget office to examine work-order reimbursement for cases in which other city departments authorize tows. Fuqua confirmed SFMTA plans to release an RFP in April, that a transition (if a new contractor is selected) would occur in January–March 2026, and that the current contract was originally approved in 2016.

Public comment and labor support Mark Gleason, representing Teamsters Local 665, spoke in the meeting to support passage, saying the contract provides stability for long-tenured tow workers.

The committee voted to forward the amendment to the full board with a positive recommendation. The committee record shows the motion passed on a roll call of ayes by Dorsey, Engadio and Chair Chan.

Outcome and what to watch The full Board of Supervisors will consider the amendment on Feb. 25, 2025 (the date noted by the clerk). Key items for follow-up are the April 2025 RFP release, the city's work-order and interdepartmental reimbursement policy for tows initiated by other agencies, and any changes to SFMTA's waiver policies.