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Council approves one-year towing contract with 5% built-in increase after debate
Summary
After a lengthy exchange about limiting built-in rate increases, council approved a $1.55 million one-year towing contract (with up to four 1-year renewals) and a built-in 5% rate increase provision; the motion passed 8-1 with Deputy Mayor Pro Tem voting no.
Council approved an annual towing-services contract with a total value listed at $1,550,000 for the year and options to renew for four additional one-year terms. Ryan Simpson, assistant director of the police department, outlined the contract and said it included a provision for a built-in rate increase capacity; staff recommended a built-in adjustment, but council members debated whether the built-in increase should be capped at 2% to limit the city's exposure.
Councilmember Tony Shotwell moved to approve the contract as presented with a built-in allowance up to 5% if documented and approved under the contract terms; the motion passed 8-1 after extended discussion about past increases and recent growth in tow volume. Deputy Mayor Pro Tem (speaker 13) cast the lone dissenting vote and urged a 2% cap, citing the city's fiscal exposure.
Tow operator Greg Joiner told the council the business has faced sharply higher equipment costs — he said a truck bought in 2022 cost about $103,000 and a comparable 2025 model runs about $161,000 — and that labor and parts pressures have reduced margins, making the contract increase mechanism important to maintain service coverage and offer benefits such as health insurance to employees. City staff said the city passes through vendor charges to vehicle owners and then adds a $46 mark-up to fund impound operations, saying the direct cost of towing is not a general-fund expense.
Simpson and procurement staff clarified that any increase beyond the built-in allowance would come back to council for consideration and that vendors must document cost changes to justify any requested adjustments. Council members who supported the higher built-in allowance cited rising tow volumes (staff said tows increased from under 6,000 to over 7,000 per year) and higher equipment costs; those favoring the 2% cap cited the need for justification and more transparency in contract contingencies. The motion to approve as presented passed 8-1.
