Item #02
Date: June 21, 2022
To: Mayor and City Council
From: Christian S. Sachs, Chief of Police
Jim Schaad, City Manager
Subject: Rate Structure within Tow Service Applications Recommendation:
Pass a Motion to approve Resolution No. 2022- XX, accepting new rate structures within the current Tow Service Applications.
Rationale for Recommendation:
The current rate structures have not been modified in over five years. The increase in fuel, cost, and employee cost have increased the need for a rate structure increase.
Background:
On August 17, 2021, the Marysville City Council passed a motion and adopting a resolution authorizing the City Manager, or designee, to enter into Vehicle Tow Service Franchise Agreements. These agreements are from September 1, 2021, through August 31, 2023.
Each Tow Service company submitted an application along with a rate structure for tow service fees. The agreement allows the tow companies to decrease their rates if desired, however, if an increase is requested it must be approved by the City.
Discussion & Analysis:
With the increase in fuel, insurance, and employee cost there is a request and need to increase the tow service rate structure. The City of Yuba City allows for a maximum tow rate of $285 per hour. The California Highway Patrol is also in the process of allowing rate structure increases.
On June 7, 2022, I held a meeting at the Marysville Police Department with representatives of all nine (9) tow service companies on the City of Marysville’s tow rotation.
Discussed at this meeting was a request to increase the hourly rate and have consistent rates for other services such as inside storage, outside storage, gate fees, and unskilled labor fees.
Item #02
All companies agreed to the Tow Service rate structure increase. The following were established as maximum fees allowed:
• $285 Hourly Rate
• $75 Inside Storage
• $65 Outside Storage
• $142.50- Gate Fee
• $80 – Unskilled Labor Fee
Each tow agency completed a new rate structure form which is attached for reference and if approved, will be filed with their original applications.
Alignment with City Council Goal(s):
Goal #2: Expand Economic Development, by being able to add local growth and dollars spent within the City.
Fiscal Analysis
No fiscal impact for the City.
Attachments:
1) Resolution 2022-XX
2) Rate Sheet