RESOLUTION NO. 8535, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA, AUTHORIZING AND APPROVING A FIFTH AMENDMENT TO THE TOW & STORAGE FEE SCHEDULE OF THE NON-EXCLUSIVE TOWING & STORAGE CONTRACT WITH U.S. TOW.
 

Adopt Resolution No. 8535.
 

On July 25, 2006, the City awarded a primary Non-Exclusive Agreement for Police Referred Towing & Storage Services to U.S. Tow.  In accordance therewith, the City Council approved a "Non-Exclusive Towing & Storage Contract" (hereinafter "Contract") with U.S. Tow and authorized the City Manager to execute the Contract.  On September 28, 2006, all parties executed the Contract with its respective signatures.  Clause No. 10 of the Contract states:  "Towing and Storage Fee Schedule" and provides, in pertinent part, the following:  "The City Council may from time to time amend by resolution the following Towing and Storage Fee Schedule, which amendment shall then become the Towing and Storage Fee Schedule under this Contract."

On August 12, 2014, the City Council approved the Second Amendment to the Contract with U.S. Tow by increasing the fees for both towing and storage.  The 2nd Amendment resulted in an increase for eight categories of towing and eight categories of storage.

On June 12, 2018, the City Council approved the Third Amendment to the Contract with U.S. Tow by increasing the fees for both towing and storage.  The 3rd Amendment also allowed for the City Manager to execute the optional extension of the Contract in 2011 for another three year term.

On January 11, 2022, the City Council approved the Fourth Amendment to the Contract with U.S. Tow by increasing the fees for both towing and storage.  The 4th Amendment also allowed for the City Manager to execute the optional extension of the Contract for another three year term.

On February 26, 2025, Rajpal Dhillon, the Owner and President of U.S. Tow - Hawthorne, submitted a formal petition for a rate increase for towing and storage of vehicles as well as a request that the Contract be extended for another three year term.  Mr. Dhillon represents that the increase in towing and storage fees are necessary due to the rise in their operating costs, along with the fact that the rates for the same services in neighboring cities are higher.  The request is for a towing and storage fee increase that is in line with the Consumer Price Index for All Urban Consumers. 
 

None.  There is no impact on the General Fund.  The increase in towing and storage fees are based on the contractor's charges that are comparable or lower than those of neighboring cities.  
 

72 hours posted notice pursuant to the Ralph M. Brown Act.