BACKGROUND:
At the June 28, 2023 meeting, the City Council adopted an Ordinance adding Chapter
12.78 to the Cathedral City Municipal Code. Chapter 12.78 codifies the governing procedures for the City’s Tow Rotation Program, authorizes the City to grant franchises to towing companies, and to collect a franchise tow service fee to offset actual and reasonable costs incurred in connection with administering its towing program.
DISCUSSION:
On July 6, 2023, the City’s Police Department issued a Request for Proposals (“RFP”) notifying the public that the City is accepting sealed proposals for towing franchise services. The RFP requested that proposals be submitted to Commander Julio Luna, no later than July 28, 2023 and include the following:
1. Business Name
2. Year Established
3. Former Business Name
4. Business Address
5. Telephone Number
6. Type of Service Particularly Qualified to Perform
7. Names of Principals and Professional Status of Each Principal
8. Number of Staff Available for Tow and Storage Services
9. Outside Associates Usually Retained to Assist in the Business
10. Completed Tow Services Programs/Projects
11. Largest Tow Services Contract in the Last Five Years
12. Financial Capability
13. Bank References
14. Proof of Cathedral City Business License
The City received sealed proposals from Southwest Towing and Mohica Towing. City staff identified Southwest Towing and Mohica Towing as meeting all the qualifications in the RFP.
The term of the Agreement is for a period of three years commencing on the date the Agreement is mutually executed, with an option to renew for an additional three-year period.
FISCAL IMPACT:
In accordance with California Vehicle Code Section 12110, the Agreement provides that the City will collect a franchise fee in connection with the award of a franchise for towing vehicles on behalf of the City which shall not exceed the amount necessary to reimburse the City for its actual and reasonable costs incurred in connection with the towing program franchise. Pursuant to the Agreement, Southwest Towing and Mohica Towing will pay to the City a monthly franchise fee of $148.35 per vehicle towed. The franchise fee shall increase by 3% in Year 2 and 3% in Year 3. These payments are equal to, or less than, the costs associated with the City’s administration of the towing program franchise.
FIVE-YEAR STRATEGIC PLAN:
GOAL C: FISCAL STABILITY AND SUSTAINABILITY
Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.