Cities Index.
Extension of Tow Franchise Agreements

City Council / Housing Authority
November 3, 2025

Document
Extension of Tow Franchise Agreements
Meeting
November 3, 2025
Body
City Council / Housing Authority
Pages
12
Original file
59 KB
Text extracted from the city's file for reading and search. Open the original on pomona.legistar1.com. That file is the official record.

CITY OF POMONA

COUNCIL REPORT
November 3, 2025
To: Honorable Mayor and Members of the City Council
From: Anita D. Scott, City Manager
Submitted by: Michael Ellis, Chief of Police
Subject: APPROVE RESOLUTIONS TO INCREASE THE MAXIMUM TOW AND STORAGE RATE SCHEDULE FOR CITY-INITIATED TOWS; AND PROVIDE NOTICE OF INTENT TO EXTEND NON-EXCLUSIVE TOWING FRANCHISE AGREEMENTS FOR CITY-INITIATED TOWS AND SET A PUBLIC HEARING TO INTRODUCE AN ORDINANCE APPROVING THE 3-YEAR EXTENSIONS OF THE CURRENT NON-EXCLUSIVE FRANCHISES RECOMMENDATION:

It is recommended that the City Council take the following actions:
1) Adopt the following resolutions:

RESOLUTION NO. 2025-125 – 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 RESOLUTION NO. 2025-126 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, DECLARING ITS INTENT TO EXTEND THE CURRENT NON-EXCLUSIVE TOWING FRANCHISES FOR CITY-INITIATED TOWS FOR A THREE-YEAR TERM AND SETTING THE DATE FOR THE PUBLIC HEARING TO INTRODUCE AN ORDINANCE APPROVING THE EXTENSIONS OF THE CURRENT NON-EXCLUSIVE FRANCHISES EXECUTIVE SUMMARY:

The adoption of Resolution No. 2025-125 (Attachment No. 1) will adjust the allowable tow and storage rates that City franchise towing companies would be allowed to charge for their services.

The City Charter sets forth the procedures for entering into franchise agreements with providers of service utilized by the City of Pomona (“City”) City Code (“PCC”) Chapter 58, Article VIII, sets forth the procedures specific to the award of towing service franchises. Entering into Non-Exclusive Franchise agreements with qualified tow companies for City-initiated tows provides the Police Department with a reliable and orderly means for towing vehicles when required, such as: 1) when a vehicle is involved in a traffic collision and is non-operable, 2) a vehicle requires impoundment pursuant to State Law, and 3) other situations where leaving a vehicle unattended or unsecured on public rights-of-way could pose a hazard or public safety issue. The City currently has non-exclusive tow franchise agreements with Sanders Towing, Inc., S & J Towing Service, Inc., Carpe Carma, L.L.C., dba Pomona Valley Towing, Inc., and Al & Son’s Towing, Inc., with agreement terms of January 19, 2023, through January 18, 2026. Pursuant to PCC§ 58-678, the initial term of the proposed towing franchise agreements may be extended for an additional term of one to three years. The Police Department is recommending extending the current three-year term for each current non-exclusive towing franchise agreement for another three years beginning on January 19, 2026, through January 18, 2029.

Also, the adoption of Resolution No. 2025-126 (Attachment No. 2) will declare the intent to approve the extensions of the current non-exclusive towing franchises named above. The Public Hearing on the matter will be set for November 17, 2025.

SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☐ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $500 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $500 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity, or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.

FISCAL IMPACT:

The extension of the franchise agreements and increase to allowable charges by the contracted tow companies do not change or create a fiscal impact on the City’s operational budget. For reference, the City’s General Fund revenue received from Franchise Fees for Fiscal Year (FY) 2023-24 was $105,607.80, and FY 2024-25 was $109,552.20. It is anticipated that the city will receive $125,000 in FY 2025-26 as included in the adopted budget.

PUBLIC NOTICING REQUIREMENTS:

There is no public notice required for adoption of the Resolution of Intent. The Notice for the recommended public hearing date of November 17, 2025, will be published in the Inland Valley Daily Bulletin, no later than November 7, 2025.

PREVIOUS RELATED ACTION:

On November 20, 2023, the Council adopted Resolution No. 2023-177 (Attachment No. 3) to increase the maximum allowable tow and storage rate schedule previously established in 2019 by Resolution No. 2019-181.

December 19, 2022, the City Council adopted Ordinance No. 4325 awarding non-exclusive towing franchises for city-initiated tows to Sanders Towing, Inc., S & J Towing Service, Inc., Carpe Carma, L.L.C., dba Pomona Valley Towing, Inc., and Al & Son’s Towing, Inc. for a term of three years.

December 5, 2022, the City Council held a public hearing and introduced Ordinance No. 4325 awarding non-exclusive towing franchises for city-initiated tows to Sanders Towing, Inc., S & J Towing Service, Inc., Carpe Carma, L.L.C., dba Pomona Valley Towing, Inc., and Al & Son’s Towing, Inc. for a term of three years.

November 11, 2022, City Council adopted Resolution No. 2022-177 declaring the City’s intent to extend the current four franchise agreements for three (3) years and setting a public hearing date of December 5, 2022.

July 18, 2022, City Council adopted Ordinance No. 4318, which amended sections 58-676(18) and 58-679(a) and (b) of the Pomona City Code pertaining to equipment requirements and the rotation system for City tow franchises. This amendment required equipment capable of heavy-duty tows, established a second rotation system for heavy-duty tows, and changed response requirements for City tow franchises.

December 2, 2019, City Council adopted Ordinance No. 4272, awarding non-exclusive towing franchises for city-initiated tows to Sanders Towing, Inc., S&J Towing Service Inc., and Carpe Carma, L.L.C. dba Pomona Valley Towing, for a term of three years.

On November 18, 2019, Council introduced Ordinance No. 4272 for the award of three non-exclusive towing franchises. City Council also adopted Resolution No. 2019-181, approving the maximum allowable tow and storage rate schedule for city-initiated tows.

November 4, 2019, the Council adopted Resolution No. 2019-168 declaring the City’s intent to award the franchises and setting a public hearing date of November 18, 2019.

DISCUSSION:

Pursuant to Pomona City Code (“PCC”) section 58-676, 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. 2023-177, and to make recommendations to the rate schedule to reflect contemporary tow and storage rates (Attachment No. 5, Attachment No. 6, Attachment No. 7, Attachment No.8). Franchise tow companies charge these rates to vehicle owners to recover their costs related to payroll, facilities, fuel, and other operating expenses.

Rates were last increased in November 2023, the rate schedule increase provided by Resolution No. 2023-177 increased the tow and storage rate schedule to reflect the maximum allowable rates for the California Highway Patrol’s (CHP) approved tow companies, including a 7% inflation increase. The rate schedule proposed in Resolution No. 2025-125 will adjust Pomona’s rates based on CHP's current rate schedule (Attachment No. 4); this provides standardized and contemporary, baseline rates, and a reference for future rate schedule adjustments as requested by the City’s franchise tow companies.

Additionally, pursuant to Pomona City Code (“PCC”) section 58-678, the initial term of a towing franchise agreement is three years, which the City Council may extend for additional terms for a period of one year to three years. The initial three-year term of the current tow franchise agreements expires January 18, 2026. In accordance with the provisions of Chapter 58, Article VIII, and the term of the franchise agreements, the current franchises may be extended for a second three-year term. In 2022, franchise agreements were awarded to Sanders Towing, Inc., S & J Towing Service, Inc., Carpe Carma, L.L.C., dba Pomona Valley Towing, Inc., and Al & Son’s Towing, Inc., with agreement terms of January 19, 2023, through January 18, 2026. Staff recommends extending the current franchise agreements with Sanders Towing, Inc., S & J Towing Service, Inc., Carpe Carma, L.L.C., dba Pomona Valley Towing, Inc., and Al & Son’s Towing, Inc. for another three year term beginning on January 19, 2026 and expiring on January 18, 2029.

Prepared by:

Maxwell Moya
Police Sergeant
ATTACHMENT(S):

Attachment No. 1 – Resolution No. 2025-125
Attachment No. 2 – Resolution No. 2025-126
Attachment No. 3 – Previously Approved Resolution No. 2023-177 Attachment No. 4 – California Highway Patrol Maximum Allowable Tow and Storage Rates Attachment No. 5 – Al and Sons Towing Increase Letter Request Attachment No. 6 – Carpe Carma dba Pomona Valley Towing Increase Letter Request Attachment No. 7 – Sanders Towing Increase Letter Request Attachment No. 8 – S&J Towing Increase Letter Request
Notice of Intent to Award Extension of Exclusive Franchise Agreement for Towing Services & Approving Fees

Page 12 of 12 ends
← All documents from this meeting