Bloomington council updates tow ordinances after heated debate over $25 fee

Bloomington Common Council on Dec. 17 adopted amendments to two city ordinances that raise allowable towing and storage charges and add licensing and operational requirements for towing companies, after more than two hours of debate and public testimony from local tow operators.

The changes affect Title 15 (city‑initiated tows) and Chapter 4.32 (nonconsensual towing). Assistant City Attorney Adina Casameinan and Economic & Sustainable Development staff said the updates are intended to bring local caps into line with market costs and to add consumer protections such as clearer signage and business‑hours requirements.

The meeting turned contentious when Councilmember Ralph introduced a late amendment to allow towing companies to charge a $25 administrative fee on top of the city’s $25 administrative charge. That amendment drew sustained public comment from four towing business representatives who said the extra fee covers labor‑intensive, state‑mandated recordkeeping, title and lien searches, certified mailings and other duties that have increased in recent audits. “There’s a lot of hours invested by trying to get ahold of all these people to confirm that they’ve had all these tickets paid,” said Ken Parish, owner of Ken’s Westside Service and Towing (public comment). Other tow operators described state filing and lien costs, VIN checks and 72‑hour notice requirements that they said create true administrative costs.

Opponents on council and some residents called the fee late, opaque and prone to being added to every tow regardless of whether extra work was required. Council member Flaherty said he would vote against the fee because the council lacked the data to set it confidently and the addition appeared rushed. Council member Zulek said public testimony persuaded her to support the fee.

The amendment adding the $25 company administrative fee passed on a 5‑4 roll call; the council adopted the Title 15 ordinance as amended 8‑1. The related nonconsensual‑towing ordinance (Chapter 4.32) was also amended to require towing businesses to state business hours on their license application, to require minimum weekly hours (including weekend availability) and to tighten signage requirements; the sign compliance deadline was extended to July 1, 2028 after industry concerns about replacement costs. That ordinance, as amended, also passed.

Police Sergeant Jacob Hunter told council that from the department’s viewpoint the city’s existing $25 police administrative fee relates to records and release forms and that officers can and do waive that fee in specific circumstances (for example, recovered stolen vehicles). He said the police department does not typically see a need for a separate tow‑company administrative fee but acknowledged that parking‑enforcement processes can impose extra work on tow firms.

Several council members said they expect to monitor implementation and remain open to revising caps or requirements if the fee is shown to be misused or if further data warrant change. The ordinances also update language, define business hours through contract language where appropriate and adjust when storage fees begin to accrue for city‑initiated tows.

The ordinances and related amendments are effective as adopted; further operational details will be reflected in towing contracts and business‑license requirements and may be refined after staff reports and audits.