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Council updates towing contract terms, raises maximum tow and storage fees and drops franchise fee
Summary
Council approved an updated five‑year nonexclusive, nonconsensual franchise towing services agreement that increases recommended insurance and maximum storage/tow charges, removes a franchise fee, and authorizes the police chief to contract with eligible applicants; council debated insurance limits and vendor affordability.
The Oakdale City Council voted unanimously to update the city’s nonexclusive nonconsensual franchise towing services agreement, replacing an expired 2011 contract with a five‑year agreement that raises maximum tow and storage fees, updates insurance requirements based on the Risk Management Authority (RMA) recommendations, and removes the city franchise fee.
Police department staff described the scope of the agreement — impounds for investigations and evidence holds, abandoned and inoperative vehicles, tows at the request of authorized city or police personnel and other standard nonconsensual tows under California Vehicle Code and city code. Staff said the contract had been expired since February 2011 and that the new draft was modeled on Modesto and CHP practices; RMA reviewed proposed insurance limits and recommended increased coverages including higher general liability aggregate and higher combined business/auto limits.
Staff presented year‑by‑year maximums for tow and storage fees for classes A–C and daily storage charges for 2025–2029, and said the city would remove the franchise fee and offset revenue through vehicle release fees. “We’ve decided, no franchise fee is gonna be required for the city of Oakdale,” staff said.
Councilmembers raised concerns that the insurance requirements could be set too low and that raising them too high could put small tow companies out of business; staff responded that RMA set the recommendations and that the city had compared requirements to Modesto and CHP. Council confirmed there are currently three vendors on rotation and that staff will accept new applications up to an application deadline to expand the rotation if vendors meet requirements.
A motion to authorize staff to accept applications or renewals and to allow the chief of police to contract with responsive, eligible applicants passed 4–0. The city will implement the updated insurance and fee schedule and publish application details for tow companies interested in the rotation.
