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Towing companies' federal compliance and billing flagged as council considers new rotation contract
Summary
Residents and towing business owners urged council to require federal safety-registration checks and tax accuracy for contractors after a citizen reported a $3,500 towing bill and an apparent lapse in FMCSA biannual reporting; the police department told council it plans annual contracts and stricter towing procedures.
Two public commenters told the council on March 19 that the city's towing rotation and billing practices need stricter oversight.
Anita Likens, a resident, presented documents she said showed a towing company used in a recent incident had not filed biannual FMCSA safety reports since 2021. "If they are not reporting as they should... they are in noncompliance," Likens said, and asked the city to check carriers’ Federal Motor Carrier Safety Administration (FMCSA) registration and vehicle-mileage-tracking records before placing them on the city's rotation. She also said she found a 7.5% tax charge on an insurance invoice that she believes did not reflect Madison County tax rates.
June Flynn, owner of Flynn Towing, told council the towing industry is affected by the conduct of outliers and supported requiring compliance checks for companies in the city's rotation. "If the city pulls that truck over, they should be looking for this," Flynn said of FMCSA reporting compliance.
Council discussion and committee reports show the police division and public safety committee are updating towing procedures. The police representative said changes would include annual approval of tow companies for the city's rotational pool and that some updates would be implemented through department policy rather than new legislation. During the Public Safety Committee report, members said the committee approved bringing updated registration and contract rules to council for action.
No contract award was finalized at the meeting. Council asked staff and the law director to continue reviewing towing-agreement language to consider including: proof of FMCSA compliance, vehicle and mileage reporting, verification of tax collection practices, annual approval for rotation participation, and possible invoicing caps or tax-stamping procedures. Anita Likens provided documents for staff review and asked that the city verify tax charging practices on invoices.
The council did not enact an immediate ordinance change at the meeting but forwarded related code and contract revisions through committee processes for future council consideration.
