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Supervisors amend and approve additional funding for SFMTA tow contractor, press agency for policy review

San Francisco Board of Supervisors Budget & Finance Committee · October 19, 2022

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Summary

The committee approved a modified increase to the MTA's towing contract for AutoReturn/TEGSCO, adopted supervisor amendments to shorten funded coverage and required a reexamination of towing policy with quarterly reports to the committee, all passed unanimously.

On Oct. 19 the Budget & Finance Committee approved a seventh amendment to the Municipal Transportation Agency’s towing, storage and disposal contract with AutoReturn (TEGSCO), while adopting amendments from supervisors to shorten the funded period and require MTA to reexamine towing policy and report back to the committee quarterly.

SFMTA presented the rationale for funding the remaining years of the contract through its March 2026 extension and described an RFP timeline to replace the contract in 2023. The Budget and Legislative Analyst summarized program costs and identified structural cost drivers: contract payments, lot rent for impound yards (about $3M/year cited in the discussion), and the agency’s own enforcement and administration costs. BLA estimated the net program cost at roughly $6M per year after fee waivers and other revenue effects.

Supervisors Chan and Ronan pushed for a narrower increase and a policy review to address equity and cost issues tied to waiver programs and police‑requested tows; Chan proposed and the committee adopted an amendment to fund a shorter period (through March 2025) to give the Board time to study policy and alternatives, and Ronan added language requiring quarterly written reports on MTA progress reexamining towing policy. AutoReturn and Teamsters representatives spoke in support of contract stability. The committee voted unanimously to forward the resolution to the full board as amended.

The committee asked SFMTA to analyze options such as purchasing impound property, reexamining waiver eligibility and internal administrative costs before issuing the next RFP.