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Vermillion council approves higher impound fee, adopts written towing fee schedule
Summary
After extended debate, the Vermillion City Council approved a resolution standardizing fees charged when the city initiates tows. Key changes: a $150 tow fee, $50 first-day impound fee and $20 per additional day, and $35 daily accident storage at private lots; the resolution applies only to city-initiated tows.
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The Vermillion City Council on Feb. 18 adopted a resolution that standardizes fees charged when the city or its departments initiate vehicle tows, raising some impound fees and formalizing an agreement with the town’s two contracted towing companies.
City staff presented the change as a clarification to the comprehensive fee schedule so that residents would face consistent charges when the city dispatches a tow. Under the adopted resolution, the city-initiated tow amount is set at $150; impound storage at the city lot is $50 for the first day and $20 for each additional day (the council amended the original draft from $10 to $20 per additional day); accident storage at private lots is $35 per day; an administrative processing fee for private-lot tows is $52; recovery/winching and cleanup fees remain determined by incident and are listed at $35 for typical roadway cleanup.
The council and staff emphasized the resolution applies when a city department — for example police or streets — requests a tow through dispatch. City staff clarified that private citizens who call a tow company directly are not bound by this schedule and may be charged different amounts by the company they contact.
Councilors debated the fairness and level of the increases. Councilor Lieber and others noted the rise from prior impound rates was substantial; Councilor Murrah said the change avoids a patchwork of fees charged by different companies and recoups costs the city had been absorbing on city-initiated tows. Some councilors, including Cheeseman and others, raised equity concerns for students and lower-income residents who may struggle to pay higher charges.
Councilor Murrah moved to approve the resolution as amended (raising the additional-day impound fee from $10 to $20); Councilor Toller seconded. The motion carried; council discussion recorded two nay votes and the motion passed.
Staff and councilors also discussed operational details: the police department retains discretion to decide when a tow is for evidence (private lot) versus city impound (city lot), and the city will continue to work with contracted towing companies to ensure service availability. Councilors noted the city’s ability to reduce impound fees on a case-by-case basis when circumstances warrant and that proceeds from surplus vehicle sales and impound handling help offset costs.
The new fees as adopted: - Tow (city-initiated): $150 - City impound storage: $50 first day, $20 each additional day (amended) - Private-lot accident storage: $35 per day - Administrative fee (private-lot processing/mail/insurance): $52 - Cleanup (glass/oil/liquid): $35
The resolution instructs administration to implement the standardized fee schedule and enter written agreements with the city’s contracted towing firms reflecting the schedule.
City staff will publish the updated comprehensive fee schedule and said dispatch and police officers will apply the adopted criteria when determining where vehicles are towed and billed.

