City staff review possible increases to private towing/impound fees; committee seeks safeguards for residents

Assistant Police Director Rick Brailen presented the committee with an update on private nonconsensual towing (tows from private property without owner consent) and the city’s current fee schedule, and outlined scenarios and next steps for a potential fee adjustment.

Brailen told the committee that current San Antonio rates for light-weight tows are $177 (as shown on the presentation) and that Texas allows municipal regulation of such fees. He summarized a 2023 towing-industry cost submission showing a three-year average margin of 17% compared with a 9% margin used in the 2013 fee model. Staff proposed to work with towing companies and the finance department to develop a recommended fee adjustment based on projected operating costs for FY2025–26 and to present recommendations to City Council in April 2025.

The staff presentation outlined three scenarios shown to the committee. The first scenario raised the fee to $210 with an estimated additional citywide revenue impact (based on an estimated 60,000 tows) of about $420,420. A second scenario presented a larger increase to $875 with a projected revenue impact in the millions. Staff also described a proposed 3.3% administrative fee on any increment that would be paid to the city to support fee-study and compliance work; the committee did not adopt any change at the meeting but asked staff to research details and return with recommendations.

Public comment included Michael Guerrero, identified in the sign-in as a tow-industry commenter, who defended private towing companies’ need to cover operating costs, to pay trained drivers, and to maintain fair and transparent practices. Guerrero said the industry must follow state license and municipal structures and complained that inconsistent fees across Texas create inequity; he urged fair wages and compliance with state regulations. In his remarks Guerrero said (in Spanish) that private towing companies should operate with “estructuras que sean justas, igualitarias y con transparencia.”

Councilmembers pressed staff on several issues: whether the city should better track and regulate aggressive or predatory towers; whether permits for towing firms are issued at state or city level; and whether an administrative fee might be used to fund complaint handling, enforcement or compensation for residents who are towed improperly. Staff said towing contractors obtain licenses at the state level and that many firms are sole-operator businesses; staff recommended a deeper look at industry concentration and complaint records before any fee increase.

Why it matters: towing and impound fees directly affect residents who lose access to their vehicles and face payment and storage charges; councilmembers emphasized protections for low-income residents and clearer complaint and appeal processes.

Next steps: staff from the Police and Finance departments will work with towing companies to gather complete financial information, explore complaint and enforcement options, and return to the committee with a fee-adjustment recommendation for City Council consideration in April 2025.