Proposed Amendments to Exhibit B – Tow Rate and Fee Schedule Contract Extension – Official Police Towing and Storage Services City of Cathedral City
Dear City Manager and Honorable Members of the City Council, Mohica Towing, Inc. respectfully submits the following proposed amendments to Exhibit B – Tow Rate and Fee Schedule in connection with the upcoming contract extension for the City's Official Police Towing and Storage Services Program.
Standard Police Tow Rate
According to the 2023 City Council Staff Report titled "Vehicle Tow Service Franchise Ordinance," the standard police tow rate has historically averaged an annual increase of approximately $10. While these annual adjustments were anticipated as part of the City's rate structure, the increases for 2024, 2025, and 2026 were not implemented.
Accordingly, Mohica Towing respectfully requests that the City account for these historically anticipated but unimplemented annual tow rate increases, together with an adjustment for the current Consumer Price Index (CPI). Implementing these previously anticipated adjustments would result in a proposed standard police tow rate of $315.00.
This request does not seek to establish a new rate increase, rather it seeks to restore the standard police tow rate. Retore it to the level that would have been achieved had the historically anticipated annual adjustments been implemented, while recognizing the significant increases in labor, insurance, fuel, equipment, maintenance, compliance, and operating costs experienced over the past three years.
Alternative Proposal – Elimination of the Franchise Fee for Non-Released Vehicles As an alternative to the proposed tow rate adjustment, Mohica Towing respectfully proposes maintaining the standard police tow rate at $285.00 (adjusted only for CPI) while eliminating the Tow Franchise Fee for vehicles that are not released to their registered owners.
During 2025, Mohica Towing stored or impounded 463 vehicles for the Cathedral City Police Department. Of those vehicles, 203 (44%) were never reclaimed by their registered owners.
Although these vehicles generated no revenue from their owners, Mohica Towing was still required to pay 100% of the City's Tow Franchise Fee on every non-released vehicle.
These vehicles continue to generate substantial unreimbursed costs, including:
Secure storage and facility expenses
Administrative processing and documentation
DMV processing and lien sale compliance
Vehicle disposal and environmental compliance
Franchise fees paid to the City despite receiving no corresponding revenue Eliminating the Tow Franchise Fee on non-released vehicles would more equitably distribute the financial burden associated with the City's police towing program while helping prevent unnecessary increases in towing rates charged to the motoring public.
We believe this alternative represents the most balanced solution because it recognizes the extraordinary costs associated with abandoned and unclaimed vehicles while allowing the City to continue collecting franchise fee revenue on vehicles that are redeemed.
Adoption of California Highway Patrol Rates
Mohica Towing also respectfully requests that Exhibit B be amended to adopt the current California Highway Patrol (CHP) approved rates for Class B, Class C, and Class D towing and recovery services.
Historically, the California Highway Patrol has maintained a comprehensive rate schedule that is periodically updated to reflect the actual costs associated with specialized heavy-duty towing and recovery operations throughout California. Aligning the City's rate schedule with the CHP-approved rates will ensure consistency with statewide industry standards and provide fair compensation for specialized towing and recovery services.
To avoid the need for future contract amendments, we further request that the Agreement provide that future adjustments to the Class B, Class C, and Class D rates shall automatically follow the California Highway Patrol approved rate schedule as it is amended from time to time.
This amendment would:
Maintain consistency with California Highway Patrol approved rates. Ensure fair compensation for specialized heavy-duty towing and recovery services. Eliminate the need for future contract amendments whenever CHP updates its approved rates. Keep the City's rate schedule current throughout the term of the Agreement.
Proposed Options
Option 1 – Standard Tow Rate Adjustment
Account for the historically anticipated but unimplemented annual tow rate increases for 2024 through 2026.
Apply the current Consumer Price Index (CPI) adjustment. Establish the standard police tow rate at $315.00.
Option 2 – Preferred Alternative
Maintain the standard police tow rate at $285.00, adjusted for CPI only. Eliminate the Tow Franchise Fee for all vehicles that are not released to their registered owners which would remove the financial burden that solely lands on the OPERATOR(s).
Additional Exhibit B Amendment
Mohica Towing respectfully requests that Exhibit B also be amended to:
Adopt the current California Highway Patrol approved rates for Class B, Class C, and Class D towing and recovery services.
Automatically incorporate all future California Highway Patrol rate adjustments for these classifications without requiring additional amendments to the Agreement.
Conclusion
For more than three decades, Mohica Towing has proudly served the City of Cathedral City by providing professional, responsive, and reliable police towing and recovery services. Our goal is to ensure that the City's towing program remains financially sustainable while continuing to provide the highest level of service to the Cathedral City Police Department and the community.
These proposed amendments recognize the historically anticipated annual tow rate adjustments, address the significant financial burden created by non-released vehicles, and align specialized heavy-duty towing rates with the California Highway Patrol's established standards.
We respectfully request the City's consideration and approval of these proposed amendments as part of the upcoming contract extension. We appreciate your time and consideration and look forward to continuing our longstanding partnership with the City of Cathedral City.
Respectfully submitted,
Mohica Towing, Inc.