DATE: AUGUST 20, 2024
DEPARTMENT: SALINAS POLICE DEPARTMENT
FROM: JOHN C. MURRAY, ACTING CHIEF OF POLICE
BY: BRIAN JOHNSON, POLICE COMMANDER
TITLE: TOW SERVICE FRANCHISE AGREEMENT FOR FY 2024-25
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing the City Manager to enter into the Salinas Police Department’s FY 2024-25 Tow Service Franchise Agreements, setting the FY 2024-25 franchise fee, and increasing the credit for disposal of recreational vehicles from $1,300 to $1,500 per vehicle.
EXECUTIVE SUMMARY:
The City of Salinas, through the Police Department, manages a rotational tow program to provide towing services for the abatement and removal of vehicles. Tow companies provide services pursuant to a Tow Service Franchise Agreement which is approved each fiscal year. On June 25, 2024, the City Council approved a short-term extension of the FY 2023-24 Tow Service Franchise Agreement through August 23, 2024, to work with the tow companies to resolve outstanding issues. Those issues have now been resolved and the Police Department is requesting approval to enter into the FY 2024-25 Tow Service Franchise Agreements.
BACKGROUND:
The City of Salinas, through the Police Department, manages a rotational tow program to provide towing services for the abatement and removal of abandoned, wrecked, dismantled or inoperative vehicles from private or public property, and to impound and provide storage of such vehicles as ordered and designated by authorized members of the Salinas Police Department. Tow companies provide service to the Salinas Police Department pursuant to a franchise issued by the City and a Tow Service Franchise Agreement between the City and the tow companies. The City currently has six tow companies participating in the rotational tow program. Each tow company is required to pay a franchise fee to the City during the term of the franchise, in an amount set by Resolution of the City Council pursuant to Salians Municipal Code Section 20-191. The franchise fee is paid quarterly and is based on the number of tows generated and the City’s actual costs in managing the franchise tow program.
Pursuant to the terms of the TSFA, tow companies are required to respond to Salinas Police Department calls 24 hours a day, seven days a week, within 30 minutes from 7am to 5pm. One of the issues that required resolution with the tow companies was their concern with meeting this response time following the City Council’s prohibition on the parking of tow vehicles within residential districts. Whereas before tow truck drivers could park at their homes and directly respond to calls for service, with the prohibition in place tow trucks must be parked at the tow yards which requires drivers to first go to the tow yard and then respond to the call for service. To address this concern, the Salinas Police Department has agreed to extend the required response time for drivers during the hours of 5:00 p.m. and 7:00 a.m. from 30 minutes to 45 minutes and is recommending the City Council agree to this as a part of the updated TSFA.
All tow companies towing for the Police Department are still required to tow and store recreational vehicles (RVs). They may contract with another company if they do not have the proper equipment to tow an oversized RV, but they are responsible for the storage, and if necessary, the disposal of an RV towed under this agreement. This more evenly distributes the RV towing among all rotation tow companies. Another concern raised by the tow companies is the current cost for disposal of RVs. Currently tow companies receive a credit of $1,300 per RV against their total franchise fee. Given the increased costs incurred by the tow companies associated with disposal of RVs, the Salinas Police Department has agreed to increase the credit to $1,500 and is recommending the City Council approve this increase to the credit.
POLICE COMMUNITY ADVISORY COMMITTEE:
The Acting Chief of Police has presented this item to the Police Community Advisory Committee on May 22, 2024. The Committee did not have questions or comments related to this requested action.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
Approving the proposed Resolution will support the City Council’s Strategic Plan Goal of Public Safety.
DEPARTMENTAL COORDINATION:
The Salinas Police Department has worked closely with the City Attorney’s office in the development of the draft FY 2024-2025 Tow Service Franchise Agreement.
FISCAL AND SUSTAINABILITY IMPACT:
The City received an estimated $17,100 on average in revenue for FY 22-23 and FY 23-24. It is anticipated that revenue will decrease due to the franchise fee credit for the towing of recreational vehicles.
ATTACHMENTS:
Resolution
Tow Service Franchise Agreement FY 2024-25
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