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December 2, 2025
ITEM TITLE
Fee Update: Amend City-Initiated Tow License Fee and City-Initiated Tow and Storage Rate Schedule Report Number: 25-0279
Location: No specific geographic location
Department: Police
G.C. § 84308 Regulations Apply: No
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt resolutions amending A) the City-Initiated Tow License Fee, and B) the City-Initiated Tow and Storage Rate Schedule.
SUMMARY
On December 7, 2021, City Council approved agreements with seven (7) companies to provide vehicle tow and impound services for City-initiated tows. Per agreement provisions, the tow license fee and tow/storage rates are subject to review and revision each year. The Police Department is requesting City Council approval to update these fees for calendar year 2026.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
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DISCUSSION
RESOLUTION A: CITY-INITIATED TOW LICENSE FEE UPDATE
California Vehicle Code Section 12110 authorizes the City to assess a Tow License Fee (“TLF”) in connection with an award of a franchise to tow companies for City -initiated tows “to reimburse the public entity for its actual and reasonable costs incurred in connection with the towing program.” The TLF relates to staff recovery costs for requesting a tow call for service, from the start time a police employee calls for a tow request to the end time that the tow company leaves the scene, along with the cost of tow management software.
The computation of the City’s TLF is detailed below:
[(Annual estimate of police-initiated tows) x (Estimated time spent per tow) x (Fully burdened hourly rate)] + (Tow Management Software cost) = Tow License Fee Position / Description
Annual Estimate
of
Police-Initiated
Tows 1
Hours Spent
per
Police-
Initiated Tow 2
Fully
Burdened
Hourly Rate 3
Tow
License Fee
Police Lieutenant 106 0.55 $252.44 $14,717
Police Sergeant 65 0.55 $215.66 $7,710
Police Agent 201 0.55 $187.25 $20,700
Peace Officer 1,791 0.55 $156.34 $154,003
Sr Parking Enforcement
Officer 644 0.55 $80.23 $28,417
Parking Enforcement Officer 444 0.55 $75.63 $18,469
Community Service Officer 720 0.55 $75.82 $30,025
Tow Management Software 4 $118,000
TOTAL $392,041
1 Annual estimate and tow breakdown by position taken from tow management software. 2 Average 33 minutes of staff time during a tow call for service taken from tow management software. 3 Fully Burdened Hourly Rates as of 10/1/2025 provided by Finance Department. 4 Annual cost of tow management software is $118,000.
The proposed Tow License Fee (TLF) for 2026 is $392 ,041. This calculation includes $118,000 for the tow management softwar e approved by City Council in October 2023. The software has streamlined towing operations for the Police Department and improved the experience for community members retrieving towed vehicles. With a full year of operational data now available from the to w software, staff can more accurately track tow calls and time spent per tow.
The 2026 TLF is $181,243 higher than the 2025 TLF of $210,798. This increase is primarily due to the software cost, as well as a rise in police-initiated tows and updated fully burdened labor rates.
The TLF is apportioned equally among the City’s seven (7) contracted towing service providers and is billed in quarterly installments. The City will continue to recalculate and revise the TLF annually using the same methodology.
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RESOLUTION B: CITY-INITIATED TOW AND STORAGE RATE UPDATE The chart below provides a complete schedule of all charges and fees that the City’s tow contractors are authorized to collect from consumers for City-initiated tow and impound services.
Service 2025
Current Rates
2026
Proposed Rates Difference
Basic Tow $289.00 $301.00 $12.00
Medium Tow $324.00 $338.00 $14.00
Heavy Tow $374.00 $400.00 $26.00
Mileage None None None
Dolly Charge None None None
Labor per hour (if exceeding one hour of service) $65.00 $65.00 $0.00 Basic Storage Rate (per 24-hour period) $74.00 $80.00 $6.00 Medium Storage Rate (per 24-hour period) $83.00 $90.00 $7.00 Heavy Storage Rate (per 24-hour period) $92.00 $102.00 $10.00 Evening Release (after 5:00pm & Holidays) $65.00 $65.00 $0.00
This rate schedule is identical to the California Highway Patrol Southern San Diego Region tow rates. The CHP manages one of the largest government entity -initiated tow program in the state, and its rates are viewed as representative and reliable benchmarks. As shown above, there are cost increases proposed to the City’s 2026 tow and storage rates.
If approved, the proposed TLF and tow and impound fees will be effective January 1, 2026. Each contracted tow company must post in plain view to the public the City-Initiated Tow and Storage Rates at their place of business.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Approval of Resolution A would result in an updated Tow License Fee of $392,041, which is equally apportioned to the City’s tow contractors, effective January 1, 20 26. The estimated Tow License Fee is already included in the Police Department’s fiscal year 2025-26 adopted budget.
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Approval of Resolution B would result in updated fees paid by consumers to the tow contractors for City - initiated tow and impound services. There is no fiscal impact to the City for these fees.
ONGOING FISCAL IMPACT
The Tow License Fee will be recalculated annually throughout the term of the tow contract. The Police Department will coordinate with the Finance Department to budget the appropriate Tow License Fee in each respective fiscal year.
ATTACHMENTS
None.
Staff Contact: Chief Roxana Kennedy, Police Department
Administrative Services Manager Jonathan Alegre, Police Department