68700 AVENIDA LALO GUERRERO │ CATHEDRAL CITY, CALIFORNIA 92234 │ (760) 770-0300
CATHEDRAL CITY
P O L I C E D E P A R T M E N T
“Pride in Service”
RICK SANCHEZ| ACTING CHIEF OF POLICE
August 11, 2026
Via Email and U.S. Mail
Southwest Towing, Inc.
36-069 Campbell St.
Cathedral City, CA 92234
RE: Counterproposal for Extension of Official Police Tow Services Agreement Dear Mr. Myles Bois:
The City of Cathedral City has reviewed the rate and fee proposal submitted by Southwest Towing, Inc. in response to the City’s August 4, 2026 correspondence regarding the Official Police Tow Services Agreement (Agreement). The City appreciates the information and supporting justification provided by your company.
Under the Agreement, the City proposes to extend the Agreement for an additional three (3) years, subject to approval by the Cathedral City Council and the parties’ execution of a written contract amendment. After reviewing your proposal, the current Exhibit B rate schedule, and the Riverside-area Consumer Price Index, the City proposes that the following rates apply during the extension term:
Exhibit B service City counterproposal
Class A / standard tow $270 per hour
Class B tow $330 per hour
Class C/D tow $440 per hour
Lockout $90 per event (unchanged)
After-hours vehicle release $90 per release (unchanged) Outside automobile/motorcycle storage $90 per day
Inside automobile/motorcycle storage $100 per day (unchanged) Trailer up to 15 feet $50 per day (unchanged)
Vehicle/trailer 20–30 feet $80 per day (unchanged)
Vehicle over 30 feet $90 per day (unchanged)
All other Exhibit B rates and conditions will remain unchanged unless expressly modified in the final written amendment. The proposed Exhibit B rates will remain fixed during the three- year extension and will not automatically adjust based on future CHP rates, CPI changes, or a guaranteed minimum annual increase.
68700 AVENIDA LALO GUERRERO │ CATHEDRAL CITY, CALIFORNIA 92234 │ (760) 770-0300
CATHEDRAL CITY
P O L I C E D E P A R T M E N T
“Pride in Service”
RICK SANCHEZ| ACTING CHIEF OF POLICE
As part of the proposed three-year extension, the City proposes that the parties enter into a written contract amendment providing that, for Years 4, 5, and 6 of the AGREEMENT, the franchise fee shall increase annually, commencing on the effective date of the option, at a rate equal to the All Urban Consumer Price Index (CPI-U) for the Riverside-San Bernardino-Ontario area for the 12-month period ending in July of the same calendar year, not to exceed four percent (4%).
For example, effective August 27, 2026, the franchise fee shall increase by the percentage equal to the CPI-U for the Riverside-San Bernardino-Ontario area for the 12-month period ending July 2026. If the CPI-U does not change or decreases in a given year, no change shall be made to the franchise fee. If the CPI-U increase exceeds four percent (4%), a four percent (4%) increase shall apply.
This proposed adjustment is not contained in the current Agreement and would become effective only upon mutual execution of the amendment and approval by the Cathedral City Council. The proposed franchise-fee adjustment is separate from the towing and storage rates listed in Exhibit B.
The City’s counterproposal does not include any waiver or reduction of the franchise fee for unclaimed vehicles or any other change to the allocation of towing, storage, lien-sale, hazardous-material, or disposal costs under the current Agreement. Those broader issues may be evaluated during the City’s next competitive procurement process.
This counterproposal is presented for discussion and is not binding until the parties execute a written contract amendment and the amendment is approved by the Cathedral City Council.
City staff would like to meet with your company to discuss the counterproposal and finalize the terms to be presented to the City Council.
Please contact Commander Andrew Diaz or Commander Nate Hanley to coordinate the meeting. We appreciate your continued partnership and the professional services your company provides to the Cathedral City Police Department and our community.
Should you have any questions regarding this letter, please contact me at (760) 202-2488 or by email at [email protected]
Sincerely,
Rick Sanchez
Acting Chief of Police