SOUTH WEST TOWING INC.
SOUTH WEST
Cathedral City, CA 92234
Phone: 760-324-1177
Towing
August 7, 2026
Office of the City Manager
City of Cathedral City / Police Department
68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
RE: Three-Year Extension of Police Tow Service Agreement Request for Amendment to Exhibit "B" - Towing and Storage Rates Dear City Manager:
South West Towing, Inc. respectfully requests an adjustment to the towing and storage rates contained in Exhibit "B" as part of the proposed three-year extension of the Police Tow Service Agreement.
Our current towing rate of $245.00 per hour has remained unchanged for approximately three years. During that same period, the cost of maintaining the equipment, insurance, personnel and facilities necessary to provide dependable 24-hour police towing service has increased substantially. South West Towing has continued to absorb these increases while meeting the service requirements of the City and the Cathedral City Police Department.
Significant Cost Increases
The most significant increase has been commercial insurance. In 2023, South West Towing's annual commercial insurance cost was approximately $69,500. By 2026, that cost had increased to approximately $159,000. This is an increase of $89,500 per year, or approximately 129%, during the same general period in which our City towing rate remained at $245.00 per hour.
Fuel is another major and unavoidable operating expense for a towing company. During the past two years, South West Towing's actual fuel costs have increased approximately 20.4%. Fuel costs affect every stage of a police tow, including responding to the call, operating equipment at the scene and transporting the vehicle.
In addition to insurance and fuel, South West Towing has experienced higher wages and employment costs required to retain qualified tow operators, increased environmental and regulatory compliance expenses, and substantially higher costs to purchase and replace specialized towing equipment and commercial vehicles. General inflation has further reduced the purchasing power of the existing $245.00 rate.
Supporting documents attached.
City Fee Increases
The fee paid by South West Towing to the City has also increased each year while our authorized towing rate has remained unchanged. The fee increased from $148.35 per 180 form in Year 1 to $152.80 in Year 2 and $157.38 in Year 3, with a proposed Year 4 fee of $162.10 per 180 form.
The proposed Year 4 amount represents an increase of $13.75 per 180 form, or approximately 9.27%, over the Year 1 fee. South West Towing is therefore paying progressively higher fees to the City while continuing to provide towing services at the same $245.00 hourly rate.
These City fee increases, together with the 129% increase in insurance, the 20.4% increase in fuel costs and other operating-cost increases, have placed substantial pressure on the current rate structure.
Unclaimed Vehicles and Unrecovered Costs
Police towing also creates costs that cannot always be recovered from the vehicle owner. From June 2025 through June 2026, South West Towing stored 374 vehicles. Of those, 209 were redeemed with full payment and 165 were left unclaimed. This means approximately 44.1% of the vehicles stored during that period Unclaimed vehicles occupy valuable storage space and require lien-sale processing, administrative work and eventual disposal. In many cases, South West Towing is unable to recover the full towing and accumulated storage charges. These costs are a significant part of providing police towing service and are not reflected by ordinary inflation statistics.
Proposed Towing and Storage Rates
Considering the documented increases in insurance, fuel, City fees and other operating expenses, as well as the unrecovered costs associated with unclaimed vehicles, South West Towing respectfully requests that Exhibit "B" be amended to establish the following rates:
Towing $290.00 per hour
Storage $90.00 per day
The proposed $290.00 towing rate represents an increase of approximately 18.4% over the existing $245.00 rate. We believe this is a reasonable and measured adjustment when compared with the actual increases South West Towing has absorbed, particularly the 129% increase in annual insurance costs and the 20.4% increase in fuel costs.
The requested adjustment will help South West Towing continue to maintain properly insured and equipped trucks, qualified personnel, secure storage facilities and dependable 24-hour response capability for the Cathedral City Police Department.
Annual CPI Adjustment
To help prevent the contract rates from falling substantially behind operating costs in the future, South West Towing also requests an annual adjustment based upon the Consumer Price Index for All Urban Consumers (CPI-U) for the Riverside-San Bernardino-Ontario area, as published by the U.S. Bureau of Labor Statistics.
We also respectfully request consideration of a minimum annual adjustment of 3%, since the fee paid by South West Towing to the City has historically increased approximately 3% each year. A reasonable annual adjustment would reduce the need for larger rate corrections at future contract renewals.
Commitment to Cathedral City
South West Towing values its longstanding relationship with the City of Cathedral City and the Cathedral City Police Department. We understand the importance of dependable police towing service and remain committed to providing professional, timely service whenever requested.
Considering the substantial increases in the actual cost of providing these services, we believe the proposed $290.00 hourly towing rate and $90.00 daily storage rate are reasonable and justified.
Thank you for your consideration. We respectfully request approval of the proposed rates and their incorporation into Exhibit "B" of the renewed Police Tow Service Agreement.
Myles Bois, President
South West Towing Inc.
Shell PARENT ACCOUNT: REPORT FOR:
South West Towing Inc South West Towing Inc
Fleet Cards 0496-00-503345-1
JUN-24-2026 TO JUL-23-2026
PAGE 2
Purchase Activity Report
CARD NUMBER CARD EMBOSSING VEHICLE/ASSET IDENTIFIER VEHICLE DESCRIPTION PLATE (ST) VIN 045800114761052055 TRUCK 59 TRUCK 59 TRUCK 59 3C7WRMDLOKG646801 DATE TIME SITE ADDRESS TICKET NUMBER PROMPT TRAN LODOM. PROD UNITS COST/ FUEL$ OTHER S Gross s REBATE
MM-DD CODE UNIT CODE
PREVIOUS ODOMETER 155.466
06-22 21:37 32279 Bob Hope Dr, Rancho Mirage, CA 0676777 J Beal OP,EN 155,498 DSL 5.429| 5.299 28.77 28.77 06-23 21:46 32279 Bob Hope Dr, Rancho Mirage, CA 0683461J Beal OP,EN 155,672 DSL 18.129 5.099 92.44 92.44 06-27 00:28 32279 Bob Hope Dr, Rancho Mirage, CA OP,EN 155,803 DSL 14.005 4.998 70.01 70.01, 06-28 01:06 32279 Bob Hope Dr, Rancho Mirage, CA OP,EN 156,031 DSL 19.024 5.098 97.00 97.00 06-28 23:29 32279 Bob Hope Dr, Rancho Mirage, CA OP,EN 156,087 DSL 6.599 5.099 33.65 33.65 06-29 23:44 32279 Bob Hope Dr, Rancho Mirage, CA OP,EN 156,199 DSL 11.841 5.099 60.38 60.38 06-30 20:48 32279 Bob Hope Dr, Rancho Mirage, CA OP,EN 156,306 DSL 5.098 79.79 79.79 07-04 00:20 32279 Bob Hope Dr, Rancho Mirage, CA OP,EN 156,410 OSL 19000 5.098 55.00 55.00 07-05 01:09 32279 Bob Hope Dr, Rancho Mirage. CA OP,EN 156,474 DSL 5.099 36.00 36.00 07-05 21:39 32279 Bob Hope Dr, Rancho Mirage, CA OPEN 156,626 DSL 15.659 5.099 79.85 79.85 07-06 21:05 32279 Bob Hope Dr, Rancho Mirage, CA OP,EN 156,769 OSL 16.279 5.099 83.01 83.01 07-10 20:00 32279 Bob Hope Dr, Rancho Mirage, CA OP, EN 156,864 DSL 9.748 5.399 52.63 52.63 07-11 20:48 32279 Bob Hope Dr, Rancho Mirage, CA 0806423 S Noe OP,EN 156,939 DSL 8.406 5.398 45.38 45.38 07-12 22:32 32279 Bob Hope Dr. Rancho Mirage, CA 0812923 J Beal OP, EN 157,010 DSL 7.154 5.398 38.62 38.62 07-13 22:44 32279 Bob Hope Dr, Rancho Mirage, CA 0819638J Beal OP, EN 157,169 DSL 14.828 5.399, 80.06 80.06 07-18 00:34 32279 Bob Hope Dr, Rancho Mirage, CA 0847912G Gomez OP,EN 157,310 DSL 15.016 5.699 85.58 85.58 07-19 22:39 32279 Bob Hope Dr, Rancho Mirage, CA 0859859 J Beal OP,EN 157.423 DSL 12.158 5.699 69.29 69.29 07-20 22:55 32279 Bob Hope Dr, Rancho Mirage, CA 0866415 J Beal OP,EN 157,526 DSL 12.273 5.859 71.91 71.91) PERIOD TOTALS 2,060 220.044 1,159.37 1,159.37
YTD TOTALS 665.621 3,843.34 3,843.34
PERIOD AVGS: DPU, PPU, CPD 9,36 5.269 0.56
YTO AVG: PPU
* ALCULATED WHEN KEY ODOMETER READINGS ARE NOT WITHIN AN ACCEPTABLE RANGE. OT 03 DIESEl TODAY
8/4/26
Transaction and Fee legend can be found on the last page of this report.
AAA Oil, Inc. Invoice
DBA: California Fuels & Lubricants Date Invoice #
11621 Westminster Avenue 7/30/2025 P2621517-1
Garden Grove, CA 92843
Phone: 714-530-4795 Fax: 714-530-5026
Bill To Ship To
South West Towing Inc. (EC) 2676-01
36069 Campbell St. South West Towing-Cathedral City
Cathedral City, CA 92234 36069 Campbell St.
Cathedral City, CA 92234
P.O. Number Terms Rep Due Date
na Net 15 SR 8/14/2025
Quantity Description Price Each Amount
675 Clear Diesel 3.7259 2,514.981
675 State Excise Tax 0.466 314.55
675 Diesel Federal Excise Tax 0.244 164.70T
675 Federal Oil Spill Tax 0.00214 1.441
675 AB 32 Implementation Green House Fee 1 & 2 - Diesel 0.00807 5.45T 675 Federal Superfund Fee Recovery Diesel & RDBD 0.00405 2.731 1 Environmental Fee 19.95 19.95T
1 Fuel Surcharge 7.95 7.951
Sales Tax 15.00% 407.58
Check payments will now be processed electronicaly. For your convenience you may email your check Total $3,439.33 payment to: [email protected] 9/2025
semadc 5,10
AAA Oil, Inc. Invoice
DBA: California Fuels & Lubricants Date Invoice #
11621 Westminster Avenue 2/24/2025 P2061335-1
Garden Grove, CA 92843
Phone: 714-530-4795 Fax: 714-530-5026
Bill To Ship To
South West Towing Inc. (EC) 2676-01
36069 Campbell St. South West Towing-Cathedral City
Cathedral City, CA 92234 36069 Campbell St.
Cathedral City, CA 92234
P.O. Number Terms Rep Due Date
Net 15 AH 3/11/2025
Quantity Description Price Each Amount
675 Clear Diesel 3.4169 2,306.417
675 State Excise Tax 0.454 306.45
675 Diesel Federal Excise Tax 0.244 164.70.
675 Federal Oil Spill Tax 0.00214 1.44.
675 AB 32 Implementation Green House Fee 1 & 2 - Diesel 0.00807 5.45. 675 Federal Superfund Fee Recovery Diesel & RDBD 0.00405 2.73 1 Environmental Fee 19.95 19.95.
1 Fuel Surcharge 7.95 7.95.
Sales Tax 14.50% 363.75
Check payments will now be processed electronicaly. For your convenience you may email your check Total $3,178.8:
payment to: [email protected] 12005
storator saise
SBAI scm dc 3 411
ARROWHEAD
General Insurance Agency, Inc.
Aftermarket Specialty Quote Proposal
Quote Date: 07/17/2023 Producer: Arrowhead General Insurance Agency Inc.
Risk Name: SOUTHWEST TOWING INC Producer Code: 76965000 SOUTH WEST TOWING Producer Address: 701 B St.
Risk Address: PO BOX 838 Suite 2100
CATHEDRAL CITY, CA 92235-0838 Phone Number:
Franchise/Program None Prepared By: Arrowhead General Insurance Agency, Inc.
Group: License Number: 0699809
Quote Number: CPO1642314
Effective/Expiration 08/13/2023 12:01a.m. ST to
Date: 08/13/2024 12:01a.m. ST
Quote Expiration Date: 08/13/2023 12:01a.m. ST
Carrier(s): American Guarantee & Liability Insurance Company At XV (Admitted)
American Zurich Insurance Company
A+ XV (Admitted)
Zurich American Insurance Company
A+ XV (Admitted)
Zurich American Insurance Company of Illinois
A+ XV (Admitted)
We are pleased to provide you with the attached insurance proposal through our Automotive Aftermarket program.
General Conditions
This is a proposal for insurance; it is not an insurance policy. Any coverage description shown may be an abbreviated title and does not indicate in-force coverage. Only the policy itself provides coverage. This proposal is not a part of and is not incorporated into the insurance policy. If there is any conflict between the coverage description shown in this proposal and the actual insurance policy, the insurance policy terms prevails and supersedes this proposal.
The premium elements which include but are not limited to premium factors, formulas, or collateral requirements included within this proposal are estimates. These estimates are based upon the information contained in the applications made available to us at the time this proposal was prepared. Any subsequent changes in the information provided may result in modifications to the quote elements. Changes in the information that may result in modifications to the premium elements include but are not limited to rates, classifications neu on liferers, expuseres, east for any operations, prior exposures, prior loss information, experience modifications. removal of products contained in this proposal, or the insured's financial condition.
It is incumbent upon you to ascertain the accuracy of the quote and to carefully review with the insured the terms and conditions of the quote, as the coverage, terms, and conditions may be different than requested. Any errors or concerns should be brought to our immediate attention upon receipt of the policy. • No backdating of coverage is allowed. If the request to bind coverage is not received in writing on or before the quote expiration date listed above, this quote will be considered expired • The insurance coverage described within represents an offer and is subject to all terms and conditions of the insurance company policy forms currently in use, including any amendatory endorsements and our quote confirmation. Policy forms are available upon request. Should a change in insurance company be required after issuance of this proposal, terms and conditions may vary from those initially offered. This offer is made in reliance upon the information contained in the application; the truth of which is warranted by the applicant. • This quote is subject to the Insurance Commissioner's power to disapprove rates. If the policy has been incorrectly assitied, the Company will make the adjustment of the rates to the proper classification upon discover All information provided is subject to verification by way of an underwriting survey, audit, or inspection. Arrowhe General Insurance, Inc. must be notified of any significant change in operations or exposures including any changes in vehicles, drivers, locations, property acquisitions, etc. Terms of insurance coverage may be cancelled for misrepresentation if information provided is inaccurate.
General Liability may be subject to audit. These policies are written on Occurrence form unless specifically stated otherwise for a particular line of coverage. • If you indicated that there is a protective safeguard in place at any location, then a Protective Safeguards Endorsement will be attached to the policy.
• Umbrella policies are subject to a 25% minimum earned premium Proposal Premium Sunimary
Package/Auto Premium
Package/Auto Premium: $69,179.00
Taxes & Surcharges: $0.00
TRIA: $41.00
Fees: $19.49
Other: $0.00
Total Due: $69,239.49
Umbrella Premium
Umbrella Premium: $0.00
Taxes & Surcharges: $0.00
TRIA: $0.00
Fees: $0.00
Other: $0.00
Total Due: $0.00
Total Policy Premium
Package/Auto Premium: $69,179.00
Umbrella Premium: $0.00
Taxes & Surcharges: $0.00
TRIA: $41.00
Fees: $19.49
Other: $0.00
Total Due: S69,239.49
Payment Plan Options
Pay Plan Description Down Payment #or Installment Total Amount Premium
$41,551.49 Installments 527,688.00 $69,239.49
2-Pay Direct Bill
60% Down
4-Pay Direct Bill $27,707.49 3 $13,844.00 $69,239.49
40% Down
10-Pay Direct Bill $10,402.49 9 approx. $6,537.44 $69,239.49 15% Down
insured
10-Pay Direct Bill $17,324.49 9 approx. $5,768.33 $69,239.49 25% Down
insured
Remit 100% of premium plus fees in full. $69,239.49 0.00 $69,239.49 If the quote is accepted, a check for the total down payment may be submitted online at www.ArrowheadExchange.com or may be made
WESTERN SKIES
MGA (SURING PRIETON
9300 Sun City Blvd., Suite 105
Las Vegas, NV 89134
Phone: (702) 939-8657
INSURANCE QUOTE
THE TERMS AND CONDITIONS OF THIS QUOTATION MAY NOT COMPLY WITH THE SPECIFICATIONS SUBMITTED FOR CONSIDERATION. PLEASE READ THIS QUOTE CAREFULLY AND COMPARE IT AGAINST YOUR SPECIFICATIONS.
QUOTE IS VALID FOR 30 DAYS
DATE ISSUED: 8/12/2024
PRODUCER: CHERYL GUGLIUZZA
ROBERTSON RYAN & ASSOCIATES INC
330 E KILBOURN AVE
STE 650
MILWAUKEE, WI 53202
INSURED: SOUTH WEST TOWING INC
PO BOX 838
CATHEDRAL CITY, CA 92234
INSURER: Benchmark Specialty Insurance Co
COVERAGE: CPP
POLICY PERIOD: 8/13/2024 To 8/13/2025
TERM: 1 Year
12:01 A.M. STANDARD TIME AT THE LOCATION ADDRESS OF THE NAMED INSURED. THIS INSURANCE QUOTATION WILL BE TERMINATED AND
SUPERSEDED UPON DELIVERY OF THE FORMAL POLICY(IES) ISSUED TO REPLACE IT.
- DS
MB
SYMBOLS LIMIT COVERAGE PREMIUM
$1,000,000 AUTO LIABILITY $71,877.00
$1,000 MEDICAL PAYMENTS $330.00
$30,000 UNINSURED MOTORIST $220.00
$1,000,000 HIRED
$447.00
$1, 000,000 NON-OWNED $727.00
OTC
7 $8,833.00
COLLISION $13,252.00
$250,000 GARAGEKEEPERS-LEGAL LIABILITY $1,750.00
GENERAL LIABILITY $1,800.00
$1,000,000 GENERAL LIABILITY - Occurrence
$2,000,000 GENERAL LIABILITY - General Aggregate
$100,000 DAMAGE TO PREMISES RENTED TO YOU
$1,000,000 PERSONAL AND ADVERTISING INJURY
$1,000,000 PRODUCTS AND COMPLETED OPERATIONS
$2,000,000 PRODUCTS AND COMPLETED OPERATIONS - AGGREGATE $5,000 MEDICAL EXPENSE
BLANKET ADDL INSURED - GEN LIAB $500.00
$250,000 INLAND MARINE $43,300.00
$250,000 -CYBER LIABILITY (WRITTEN SEPARATELY $750.00
THRU NORTH AMERICAN DATA SECURITY RPG)
$143,036.00
PREMIUM: $143,786.00
MGA FEES: $3,000.00
SURPLUS LINES TAXES: $4,381.08
STAMPING FEES: $262.86
TOTAL: $151,429.94
$150,679.94
Premium referenced does not include Terrorism Coverage. Should the Insured elect to purchase Terrorism Coverage, the additional premium will be $46.00 - DocuSigned by:
MILES BAS 8/12/2024
- 5A758A1D1077413...
8/7/26, 9:56 AM AOL Mail - Re: 2026-2027 policy premiums Re: 2026-2027 policy premiums
From: cheryl gugliuzza ([email protected])
To: [email protected]
Cc: [email protected]
Date: Friday, August 7, 2026 at 09:55 AM PDT
25/26 term
Your Commercial Auto Liability, Commercial Property, Commercial General Liability & On Hook coverages premium for your 8/13/2025 -8/13/2026 insurance policy is $149,000 after all changes were made. our Excess On Hook coverage premium for your 8/13/2025- 8/13/2026 insurance policy is $4,330.38 Annual approx 154000.
Same coverages on both terms
Cheryl Gugliuzza
Agency/Owner
(716) 804 3802
Robertson Ryan & Associates - Niagara Falls
On Thu, Aug 6, 2026 at 8:05 PM Tom Paoletta <[email protected]> wrote:
Hello,
Your Commercial Auto Liability, Commercial Property, Commercial General Liability & On Hook coverages premium for your 8/13/2026-8/13/2027 insurance policy is $159,795.34 Your Excess On Hook coverage premium for your 8/13/2026-8/13/2027 insurance policy is $4,330.38 Total policy premium for 2026-2027 is $164,125.72
Thank you
,330.38 $4,330.38
Tom Paoletta
Account Manager | Commercial Lines
Robertson Ryan Insurance
CA License OC97587
Direct: 716-606-9319
[email protected]