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Council updates non‑exclusive, non‑consensual towing franchise agreement; higher insurance and new fee caps approved
Summary
The City Council authorized acceptance of applications and directed the police chief to contract with qualified tow companies under a revised non‑exclusive, non‑consensual franchise towing agreement with updated insurance requirements and maximum fee schedules; vote 4-0.
Oakdale’s City Council authorized staff to accept applications and renewals for city‑generated, non‑exclusive non‑consensual towing franchise agreements and directed the chief of police to contract with qualified applicants under revised requirements.
Police department staff said the city’s towing contract had been expired since February 2011 and needed updating. The proposed agreement covers tows ordered by authorized city or police personnel for collisions, evidence, abandoned vehicles, illegally parked or inoperative vehicles, and other standard non‑consensual tows under the California Vehicle Code and Oakdale city code. Staff said the city modeled portions of the updated contract on the Modesto Police Department and applied recommendations from the Risk Management Authority (RMA) for insurance and indemnity.
Key changes presented included raised insurance and liability minimums (e.g., increases to general liability aggregate levels and commercial auto combined single-limit thresholds) and a new maximum fee schedule for tow charges and daily storage that phases up over several years. Staff said no franchise fee will be required; the city will offset lost franchise fee revenue by adjusting vehicle release fees. The presentation included stated maximum tow and storage rates for years 2025–2029, and specified hook/unhook and garage keeper limits.
Council discussed the insurance levels and potential effects on small tow operators. One council member expressed concern that proposed insurance amounts might be low compared with private-market policies; staff said the RMA vetted and recommended the levels to balance risk and maintain competition so small providers can participate. Staff confirmed the process will be open: qualified applicants who submit required paperwork by an application deadline (to be set) will be eligible for the city’s tow rotation.
A motion and second were made and the council recorded a 4-0 vote to authorize acceptance of applications and to allow the police chief to contract with responsive and eligible applicants under the updated terms.
