CITY OF POMONA
COUNCIL REPORT
November 20, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Michael Ellis, Chief of Police
SUBJECT: APPROVE AND ADOPT A RESOLUTION TO INCREASE THE MAXIMUM TOW AND STORAGE RATE SCHEDULE FOR CITY-INITIATED TOWS RECOMMENDATION:
It is recommended that the City Council take action on the following resolution:
RESOLUTION NO. 2023-177 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, APPROVING THE MAXIMUM ALLOWABLE TOW AND STORAGE RATE SCHEDULE FOR CITY-INITIATED TOWS EXECUTIVE SUMMARY:
This action will adjust the allowable tow and storage rates that City franchise towing companies would be allowed to charge for their services.
FISCAL IMPACT: NONE
PREVIOUS RELATED ACTION:
On October 10, 2013 the City Council (Council) adopted Resolution No. 2013-88 to increase the maximum allowable tow and storage rate schedule previously established in 2006.
On November 18, 2019 the Council adopted Resolution No. 2019-181 (Attachment No.1) to increase the maximum allowable tow and storage rate schedule previously established in 2013 by Resolution No. 2013-88.
DISCUSSION:
Pursuant to the Pomona City Code (“PCC”), rates for towing and storage for city-initiated tows shall not exceed the rate schedule approved by City Council. Requests were made from all current franchise tow companies to evaluate the current tow and storage rate schedule established by Resolution No. 2019-181, and to make recommendations to the rate schedule to reflect contemporary tow and storage rates. Franchise tow companies charge these rates to vehicle owners to recover their costs related to payroll, facilities, fuel, and other operating expenses.
The current City franchise tow companies, S& J Towing, Inc., Carpe Carma, L.L.C. dba Pomona Valley Towing, Inc., Sanders Towing, Inc., and Al & Son’s Towing, Inc., are seeking to minimize the difference in rates and services between neighboring law enforcement agencies to stay competitive and provide excellent service to the residents of the City of Pomona. Costs associated with the towing industry have dramatically increased since 2019. Fuel costs in California are among the highest in the nation, and most of the towing fleet runs primarily on diesel fuel, which has had a sharp increase in recent years. The average cost of diesel fuel in California in 2019 was $3.91/ gallon; since then, diesel rates have risen dramatically, peaking at nearly $7.00/ gallon as of mid-September, 2023.
The stepped rate schedule increase provided by Resolution No. 2019-181 increased the tow and storage rate schedule to the average of surrounding agencies over a three-year period. On January 01, 2022, the City’s rate schedule reached the final step increase, which brought the City’s rate schedule in-line with the 2019 rate averages. By 2022, the City’s adopted rate schedule was outdated and below rates compared to surrounding cities’, and the California Highway Patrol’s maximum allowable rates.
The Police Department’s Traffic Services Bureau staff conducted a survey (Attachment No. 2) of surrounding cities/ agencies to assess their current towing and storage rates. Those cities included Upland, Claremont, Chino, La Verne, and Montclair. The survey included the maximum allowable rates for California Highway Patrol’s approved tow companies, including a 7% “inflation increase” implemented on July 1st, 2023. The rate schedule proposed in Resolution No. 2023-177 (Attachment No. 3) will adjust Pomona’s rates based on California Highway Patrol’s current rate schedule; this provides standardized and contemporary, baseline rates, and a reference for future rate schedule adjustments as requested by the City’s franchise tow companies.
Prepared by:
_____________________________
Robert Scheppmann
Police Sergeant
ATTACHMENT(S):
Attachment No. 1 – Previously Approved Resolution. No. 2019-181 Attachment No. 2 – Tow and Storage Rate Survey – Surrounding Cities/ CHP Attachment No. 3 – Proposed Resolution No. 2023-177
Adoption of Maximum Allowable Tow and Storage Rate Schedule