Council Staff Report - Tow Service Franchise Agreement 2025-26

DATE: JUNE 17, 2025
DEPARTMENT: SALINAS POLICE DEPARTMENT
FROM: CARLOS ACOSTA, CHIEF OF POLICE
BY: ALBERT DURAN, SERGEANT

TONYA ERICKSON, POLICE SERVICES ADMINISTRATOR
TITLE: TOW SERVICE FRANCHISE AGREEMENTS FOR FY 2025-26 RECOMMENDED MOTION:

A motion to approve a Resolution delegating authority to the City Manager to enter into the Salinas Police Department’s FY 2025-26 Tow Service Franchise Agreements, setting the FY 2025-26 franchise fee, and maintaining the $1,500 credit for disposal of recreational vehicles.

It is also requested that the City Council provide direction regarding the potential for an exemption from the over-sized parking regulations for the tow franchisees.

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. The Police Department is requesting approval to enter into the FY 2025-26 Tow Service Franchise Agreements with the same terms and conditions as Agreements approved during last FY.

The tow companies have also requested the City Council consider establishing an exemption from the over-sized vehicle restrictions set forth in Article XVIII of Chapter 20 of the Salinas Municipal Code section.

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. On August 8, 2023, City Council approved an amendment to Section 20-18.030 of the Salinas Municipal Code – Parking of Oversized vehicles, which resulted in the prohibition on parking of tow vehicles within residential districts. Prior to this amendment, tow truck drivers could park at their homes and directly respond to calls for service, but 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. As a result, last year’s TSFAs extended the required response time from 30 minutes to 45 minutes during the hours of 5:00 p.m. and 7:00 a.m.

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. Given the cost incurred by the tow companies associated with the disposal of RVs, the TSFA maintains the credit of $1,500 per RV against their total franchise fee. The Tow companies have raised concerns regarding the increasing costs associated with disposal of RVs, and they have asked the Department to explore alternatives which may include direct payment of disposal costs instead of the current credit toward franchise fees. Should the Department elect to implement a change in the process associated with disposal of RVs, we will return to City Council to approve an amendment to the TSFAs.

The Salinas Police Department is recommending that the City open an account with A&S Metals to allow direct payment for the disposal of oversized recreational vehicles, and eliminate RV credits. A&S Metals will provide a junk slips with the associated SPD Case number to the police department for tracking of RV disposals.

The franchise tow companies have requested the City Council consider an exemption for their tow trucks from the over-sized vehicle restrictions set forth in the Salinas Municipal Code. Tow trucks, and other vehicles, which exceed the size limitations set forth in the Code (vehicles in excess of 20-feet in length or seven-feet in height) may not be parked on any roadway within the city, with certain exceptions. As tow trucks typically exceed these size limitations, the tow franchisees’ employees may not park their tow trucks outside of their residences; tow trucks must be stored within the tow yards. The over-sized vehicle parking restrictions, therefore, result in a longer response time to Police Department calls for tow service. This results in officers spending longer time on such calls than they perhaps otherwise would. Should the City Council want to create an exemption for tow trucks, it is recommended that the exemption apply only to the franchise tow companies. Creating such an exemption would require the City Council’s consideration of an ordinance to amend Section 20-18.030 of the Municipal Code which would be brought forward at a later City Council meeting for consideration.

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).

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

Yes. The City of Salinas has determined that Government Code §84308/Levine Act does apply to this item.

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 2025-26 Tow Service Franchise Agreement.

FISCAL AND SUSTAINABILITY IMPACT:

The City received an estimated $17,100 on average in revenue for FY 2022-23 and FY 2023-24. It is anticipated that revenue will decrease during FY 2024-25 and forward due to the franchise fee credit for the towing of recreational vehicles.

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Appropriation
Appropriation Name
Total Appropriation
Amount for recommendation
FY 24-25 Operating Budget Page
Last Budget Action (Date, Resolution)
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ATTACHMENTS:

Salinas City CouncilJune 17, 2025

Salinas City Council
June 17, 2025