Report Prepared by: Nathan McKinnon, Sergeant, Merced Police Department
Title
SUBJECT: Approval and Establishment of the 2025-2027 Master Tow Service Agreement
REPORT IN BRIEF
Considers approving the 2025-2027 Merced Police Department Tow Service Agreement that will go into effect August 1, 2025, and expire July 31, 2027.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving and establishing the 2025-2027 Master Tow Service Agreement; and,
B. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Return to staff for further follow up; or,
3. Deny.
AUTHORITY
Charter of the City of Merced, Section 200, et seq.
CITY COUNCIL PRIORITIES
As provided for in the 2025-26 Adopted Budget
DISCUSSION
The fiscal year 2024-2025 Tow Service Agreement expires on July 31, 2025. The 2024-2025 Tow Service Agreement has worked out well for both the City of Merced and the rotational tow companies. The City’s current Agreement was primarily based on the approved Tow Services Agreement used by the California Highway Patrol for their tow rotation program.
The 2025-2027 Tow Service Agreement will be effective from August 1, 2025, to July 31, 2027 (Attachments 1). The Tow Service Agreement was updated to reflect the current California Vehicle Code changes and the term of the agreement from the version approved by the City Council for the 2024-2025 fiscal year.
Currently, there are nine (9) tow companies on the Merced Police Department rotational tow list that have been operating under the 2024-2025 Tow Service Agreement. These companies are AG towing, Allways Towing, Bear Towing, Bills Towing, Freitas Auto Wrecking, Merced City Tow, P&G Towing, Pete’s Auto Body, and TNB Towing.
All of the tow companies listed above have participated in the Merced Area California Highway Patrol open enrollment inspections. This was done to ensure all equipment that will be used on the Merced Police Department Tow Rotation is safe.
There is a need for a Tow Service Agreement to be in place between the City of Merced and the tow companies on the Merced Police Department rotational tow list. By having this Agreement in place, it allows the City of Merced Police Department to oversee the tow companies providing services for the Department’s tow rotational list. This helps ensure that the residents of Merced are being treated fairly and professionally.
Specifically, the 2025-2027 Tow Service Agreement allows for the Merced Police Department to inspect the tow companies’ equipment and facilities to ensure they are being kept up to the standards outlined in the 2025-2027 Tow Service Agreement. By inspecting the tow companies’ equipment and facilities, the Merced Police Department can ensure the safety and fair treatment of the residents of Merced.
This would be a two (2) year agreement with the review of rates, equipment inspections, and insurance documents in July of 2026. Any rate changes would be implemented August 1st, 2026. Any rate change would be in line with the California Highway Patrol’s Tow Service Agreement rate changes.
IMPACT ON CITY RESOURCES
No funding is needed. Vehicle owners pay the tow fee to the tow companies.
ATTACHMENTS
1. 2025-2027 Master Tow Service Agreement