REPORT TO COUNCIL
SUBJECT
Title
Action on Agreements with Finish Line Towing Incorporated, Lima Towing, and Unique Towing for towing services and Amendment of the FY 2018-19 Municipal Fee Schedule regarding Towing Rates
Report
BACKGROUND
The Police Department manages three Agreements with Finish Line Towing Incorporated, Lima Towing, and Unique Towing for towing services on behalf of the City of Santa Clara (City) to mitigate blight, reduce fire hazards, and address hazards to health, safety, and general welfare. The current agreements, as amended, expire on December 31, 2018.
The tow operators are compensated for their services by collecting towing and storage fees; revenues collected at vehicle lien sales for abandoned vehicles, and scrap metal costs for vehicles that cannot be sold and are recycled.
DISCUSSION
In order to prepare for successor towing agreements, staff notified approximately twenty (20) South Bay tow service operators of a Request for Information (RFI) meeting on July 27, 2018. The purpose of the meeting was to explore the possibility of increasing the number of tow operators, discuss areas where service levels can be improved, and discuss issues affecting the tow industry that are negatively impacting the operators' ability to perform the required services at reasonable profit levels.
Three tow service operators, Finish Line Towing Incorporated, Lima Towing, and Unique Towing, participated in the meeting. At the meeting, the terms of the current Agreement between the City and tow service operators were discussed and changes in the towing industry were shared. The largest area of concern was the increasing number of recreational vehicle and abandoned vehicle tows, and the significant expense to tow, clean, dismantle, and dispose of these vehicles that have little or no resale or scrap value.
A follow-up meeting was conducted on August 31, 2018, in response to the discussion at the July 27, 2018 meeting. At this meeting, several ...
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