Westminster City Council
SUBJECT
Title
Request for Rate Increase for City Contract Tow Companies - T.C. 93-104.
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From: Traffic Commission
Requested by: Administration
Prepared by: Veronica Johnson, Management Analyst
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RECOMMENDED ACTION
Recommendation
Approve the Traffic Commission’s recommendation to increase the rates and charges for the tow companies participating in the Westminster Police Department’s Rotational Tow Program and adopt a Resolution entitled, “A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA, UPDATING THE RATES AND CHARGES FOR THE TOW COMPANIES PARTICIPATING IN THE WESTMINSTER POLICE DEPARTMENT’S ROTATIONAL TOW PROGRAM.”
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BACKGROUND
The Mayor and City Council approved the Tow Services Agreement Template for the Westminster Police Department’s Rotational Tow Program on February 12, 2025.
Staff presented this item at the Traffic Commission’s regular meeting of April 29, 2025. Sergeant J. Kent explained the City has a Tow Service Agreement (TSA) with three tow companies that service the Police Department. These three companies are Country City Towing, Russell’s Towing, and B&D Towing. The tow companies respond on a rotational basis to traffic collisions, disabled vehicles, and police impound/storage requests at the request of the Police Department. The TSA regulates the tow companies' rates for their services. The last rate increase was over 10 years ago. Sergeant Kent further explained the new rates were established based on the actual costs for the services provided, including gas, payroll, and other expenses.
The Police Traffic Bureau conducted a survey of other Orange County agencies to determine if the rate increase is consistent with other agencies. The survey identifies that the requested increase is comparable with the County average, as listed in the rate comparison table in Attachment 1.
The Commission inquired as to how the tow companies were selected and what these rates include. Sergeant Kent and Commander W. Drinnin replied the tow companies had to meet certain standards and requirements to be considered and approved for the rotational tow program. The rates include the cost and labor of removing inoperable vehicles and cleaning up accident sites. They also stated that there is only one tow company remaining in Westminster.
The following people spoke on the subject item:
• Jay Van Arsdale, Country City Towing, stated he has worked in the city for 60 years. The rate increases are needed as fuel prices, labor, and insurance rates have increased over the last 10 years. He asked the Commission to approve the subject rate increase.
• Terry Rains, Westminster, questioned why only a few agencies were surveyed and why the Traffic Commission is considering the approval of a rate increase when it should only be recommending one.
Staff explained this item is going before the Commission per the Westminster Municipal Code, whereas rate changes are to be heard by the Traffic Commission to provide a recommendation to the Mayor and City Council.
Commissioner John Gentile moved to approve staff’s recommendation to increase the rates and charges for the tow companies participating in the Westminster Police Department’s Rotational Tow Program, as noted in the schedule. The motion was seconded by Commissioner Donald Lank.
The motion was carried by a 4-0 vote with Commissioner Khanh Nguyen absent.
FISCAL IMPACT
None. These rates are not collected by the City.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
The proposed rates have not been increased in 10 years. The rate increase is necessary due to increases in fuel, labor, equipment, etc. The approval of the new rates may help in retaining the current tow companies or encouraging new tow companies to apply for the rotational tow program.
ATTACHMENTS
1. Traffic Commission Report dated April 29, 2025
2. Proposed Resolution
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager