City Council
MEETING DATE: 2/22/2017
TITLE:
Title
Extension of Tow Contracts - Fee Adjustment
End
FROM:
George Crum, Police Chief
RECOMMENDATION:
Recommendation
City staff recommends Council endorse the extension of the current tow contracts with an amended schedule of allowable fees to include fees payable to the City for 30 day vehicle impound storages.
Body
BACKGROUND:
The current three year extension to the tow contracts initiated in January of 2014 with Mohica Towing and Southwest Towing expired January of 2017. The Contract allows for two additional three year periods at the City's sole discretion. As both companies have fulfilled their obligations under the contract, staff has offered both tow companies the three year extension authorized in the contract and both have indicated they will accept the additional three year option from 2017 thru 2019.
Staff met with the owners of both tow companies, Miles Bois (Southwest) and Jesse Mojica (Mohica Towing) to discuss the current fee schedule allowable in Exhibit B under the existing agreement. These fee limits have been in place for 3 years and have not kept up with rising overhead for the tow companies or current rates charged in the open market. The franchise fees paid to the City by the two tow companies will not have a built in 3% increase, as our rising overhead expenses have had a significant increase in the franchise fee paid by the tow companies. The increases are listed under the Fiscal Impact section. Both towing companies have requested an increase in the fee schedule for towing services they may charge.
DISCUSSION:
Staff has listed the current allowable rates per the tow contract below and the corresponding average rate currently allowed by Riverside County Sheriff, California Highway Patrol, Desert Hot Springs Police and Palm Springs Police. The third column represents the rate adjustment staff is proposing. This rate is the current average fee allowed by the other id...
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