Detroit’s Tow Rate Commission is proposing towing and storage rate increases for the first time since 2013, some of which are nearly double the rates vehicle owners pay today.
The commission is recommending increases in the city’s tow rates as a way to reflect the current costs of doing business, it said during a meeting to set the rates on Monday. Among the impacts: Owners of vehicles that have been towed at the police department’s direction would pay two times more for towing and storage fees under the commission’s proposal.
7D’s Towing, BBK Towing & Recovery, Inc. and Troy’s Towing spoke in support of the proposed rate increases at the city council meeting on Monday.
“When considering our increase, please factor in the dangerous nature of our work and the size and capacity that we’ve been towing,” Julie Semma, owner of 7D’s Towing told council members. “Regardless of whether the tow is five miles or 25 miles away, we receive the same current rate.”
Tow rates are charged at a flat rate and would be categorized by type and classified as light, medium or heavy-duty based on the weight of vehicles. For standard passenger vehicles, such as a car or SUV, towing fees would increase from $125 to $225.
Boats, trailers and campers would fall under “heavy-duty” tows, and would see a substantial increase in the flat-rate tow fee, increasing from $100 to $700 per “hook.”
The proposal includes a $200 flat-rate fee for light-duty “miscellaneous” tows which includes motorcycles, on- and off-road vehicles, jet skis, scooters, mini-bikes, four-wheelers, lawn equipment, and non-motorized boats
The commission is also proposing an increase to fees charged in situations where a second tow truck is dispatched to a location. Light-duty “second truck” fees would increase from $75 to $175.
The police department waives storage fees in circumstances where the vehicle is towed, transported and held at the police department’s impound yards while evidence is processed. Fees are also waived if the vehicle is involved in a carjacking, homicide, criminal sexual conduct, or robbery.
Storage fees would double regardless of the type and size of a vehicle under the proposal. The police department waives storage fees in circumstances where the vehicle is towed, transported and held at the police department’s impound yards while evidence is processed. Fees are also waived if the vehicle is involved in a carjacking, homicide, criminal sexual conduct, or robbery.
The police department said it doesn’t assess fees for stolen vehicles but BridgeDetroit reported earlier this month that residents had been charged to recover their vehicle.
If approved, it would be the first increase in police-authorized towing and storage fees since 2013 despite economic cost pressures that have put a strain on consumers’ wallets in the same timeframe.
Why the rate hike now?
Over the past decade, the consumer price index increased by nearly 28%, a gallon of diesel fuel nearly doubled, and the cost of accident clean-up materials increased by an estimated 150%, according to representatives from the Tow Rate Commission who presented the proposed rates to the City Council on Monday.
Felicia Brock, owner of BBK Towing & Recovery, Inc., acquired the business after her husband Dennis Brock passed away in 2021 and shared some of the lessons she’s learned since then. “This is a 24/7 business. When you’re asleep, we’re towing. When you’re on vacation, we’re towing. When you are enjoying your family meals, we’re towing,” Brock told council members. “This is the only business or occupation I’ve ever seen that has not had a pay or salary increase in ten years or more.”
According to Deputy Auditor General Mark Lockridge, who previously served as the city’s Auditor General, there was “no real appetite” to review tow rates between 2013 and this year. The presentation was the third time the Tow Rate Commission has come before the city council to recommend rate increases, Lockridge said, noting that police-authorized tow companies can request a rate review at any time.
Under the City Charter, the commission reviews the administrative, towing, service and storage fees for police-authorized towing at least once every two years and submits a recommendation to the City Council by October of the review year. City Council then reviews the proposed changes and makes a formal decision whether to adopt the rates via a resolution.
The commission wasn’t able to determine how previous tow rates were determined due to the lack of available information, according to Auditor General Laura, who said it still considered various factors including financial records from the police department’s Police Towing and Impound Unit (PTIU), feedback from current police-authorized tow companies, and compared towing rates across the country and the state of Michigan.
Current tow rate commissioners are Goodspeed, General Manager of the Building, Safety, Engineering and Environmental Department (BSEED) Andrew Anyanwu, and Detroit Police Department Captain Jason Adams. Peggy Goodwin, a representative for the Detroit Towing Association was appointed by the city council earlier this year, and former Detroit Police Chief Isaiah “Ike” McKinnon was appointed by the mayor.
Goodwin asked council members to consider the time that tow trucks spend at any given location and the cost of materials which she noted have increased substantially over the last decade.
Understanding towing types
There are three different towing types: police-authorized, consensual, and non-consensual towing and the proposed rate changes only apply to “police-authorized” tows, which Goodspeed explained as situations when the police department dispatches a tow truck to move vehicles such as abandoned and stolen vehicles, and vehicles involved in accidents or crime.
The police department is contracted with five police-authorized towers (PATs) today, a decrease from 27 in 2012. A substantial amount, around 80%, of the business PATs receive is related to police-authorized towing according to Goodspeed.
Non-consensual and consensual tows are requested by private property owners and vehicle owners and those rates are set by the tow companies that provide the services to private citizens and businesses.
Predatory towing in Detroit has been an issue in Detroit and tow companies have come under fire for hiring “spotters” that search for vehicles that are parked in areas without permission, such as parking lots that designate parking spaces for customers only. Captain Jason Adams said non-consensual towing offenses, like tow trucks that target motor vehicle accidents to provide services, are difficult to investigate and prosecute for unlawful activities.
Detroit’s police department set up the Police Towing and Impound Unit (PTIU) in 2018. Although the unit performed around 20% of all tows in the city over the last two years, Adams who oversees the unit’s operations, said the department isn’t taking a position on the proposed rate changes.
The $75 administrative fee the city assesses to recover costs associated with the department’s towing and impound operations is expected to remain the same.
Another factor in the current towing rates, according to Goodspeed, was licensing, bonding, and insurance requirements but these standards aren’t expected to change under the new rate proposal.