City Manager Bernie Satterwhite told InstantNewsBellaire in an interview on Tuesday that the possibility of an exclusive towing contract for the city “is a long way off” and won’t come before city council before the end of the year.
Mayor Cindy Siegel was approached by a towing company that suggested that the city might receive a more favorable rate by entering into an exclusive towing service franchise for the towing of disabled vehicles. City staff was directed to get more information about actions it can take in regards to an exclusive towing contract after council discussed the idea during a meeting on Nov. 15.
Numerous tow truck companies attended the Nov. 15 meeting. Several spoke during public comment and said that they were opposed to the idea and that it would put many people out of work.
Satterwhite said that he has not really pursed this idea quite yet and doesn’t think staff will issue requests for information (RFP) before the end of the year.
Satterwhite could have issued requests for proposals (RFP) without asking council’s permission, but that would have been the wrong way to go about it, he said.
“I think we need to do a lot of study and listen to the people who were out here that night before we do anything rash,” he said.
Satterwhite said he was first approached about the idea of an exclusive towing contract in July, after Reliant Collision, Inc. contacted Siegel, who then referred them to him.
City Attorney Alan Petrov indicated that it is legal for the city to enter into an exclusive towing contract when police call for a tow.
Currently, if there’s an accident, six to eight tow trucks show up, Satterwhite said.
Chief of Police Randall Mack told council during the Nov. 15 meeting that the city doesn’t get many complaints about tow truck companies.
Siegel said during the Nov. 15 meeting that this came forward as a possible revenue source for the city, not because of a complaint.
“We’re not unhappy about the way things are right now,” Satterwhite said.
When Satterwhite was approached by Reliant Collision about an exclusive towing contract, he told them to go ahead and send him a proposed contract for him to review.
If council were to approve the proposed contract from Reliant Collision, the city would receive $100,000 over a three-year period for exclusive rights to towing operations within city limits as well as 25 percent of each $140 towing charge on non-heavy vehicles.
The city issues 75 towing permits a year at $400 apiece. That is $30,000 in revenue for the city each year, Satterwhite said.
The proposal from Reliant Collision would bring in a little over $30,000 in revenue for the city. Reliant Collision is not currently one of Bellaire’s permit holders, he said.
In an e-mail from Siegel to Satterwhite and City Clerk Tracy Dutton on Nov.4, which was obtained through a public information request that was filed with the city, Siegel mentioned the economic issues facing the city.
“Given the economic situation facing the City, I think we need to at least look at and discuss any options that might bring additional revenues to the City,” Siegel said in her e-mail.
Satterwhite told InstantNewsBellaire that the city’s financial situation “is not critical.”
“We have a balanced budget. The tax base went down for the first time in anyone’s memory,” he said. “We’re always looking for ways to raise revenue.”
Satterwhite said it’s important to look into things when ideas are brought forward.
“If you never open the page of the book you’ll never know what’s inside,” he said.
Several things still need to be researched and discussed before anything is brought before council, he said.
Some questions he has are “can they really respond? Are we using one impound lot? What if we don’t get the response we want?”
Satterwhite said his primary concerns are what are best for the residents and the city.
He said he doesn’t know what the legal ramifications could be if the city approves an exclusive towing contract.
“There are no legal ramifications for asking questions,” he said.
It is unknown when an exclusive towing contract will be brought before council, but Satterwhite said when something does get brought to council, it will be a proposal.
Facebook Comments