The city of Richmond could soon pocket more of the proceeds when illegally parked vehicles are towed from city streets.
Mayor Dwight C. Jones' administration and the City Council are considering increasing the standard towing rate from $65 to $95 as part of a new, one-year contract with Seibert's Towing.
The city currently receives about $15 each time Seibert's or one of its subcontractors tows a vehicle on behalf of the city, leaving the owner with a base bill of $65, said Victoria Pearson Benjamin, general counsel for the Richmond Police Department and chairwoman of the city's Advisory Board for the Assessment of Towing Fees and the Storage of Vehicles.
Under a proposed new contract with Seibert's, the city's share of each tow would rise to $19 if the rate remains $65, or it would rise to $22 if the rate rises to $95.
The higher rate has been recommended by a contract review committee, partly because the $65 rate has been in effect since at least 1992, officials said. The standard rate applies, for example, when vehicles must be removed from designated tow-away zones or from public streets before scheduled cleanings.
Councilman Charles R. Samuels, who represents the Fan District and other neighborhoods that rely heavily on street parking, said he appreciates that towing companies are facing higher costs, but he's also concerned about how an increase would affect residents, including students at Virginia Commonwealth University.
"I would imagine that folks . . . are really going to be concerned about this because we are still in a recession and every penny counts," he said.
The City Council will consider the issue tomorrow when it decides whether to authorize Chief Administrative Officer Byron C. Marshall to sign the new contract with Seibert's. The city's previous 10-year contract with the company expired March 31 and was not eligible for renewal.
The council can but will not have to specify a towing rate for the contract, Benjamin said. If no guidance is provided, Marshall "will have to pick one when he signs it," she said.
Benjamin said she did not know how much revenue is generated annually by the city's current share of each $65 tow. Officials are expecting additional revenues of more than $36,000 if the rate remains at $65 and more than $68,000 if the rate is increased to $95.
Officials also are recommending the contract because it's estimated to save the city at least $70,000. That's because the contract would provide free standard towing and roadside assistance of city vehicles within city limits.
Last year, the council responded to pressure from towing companies by allowing them to charge $125 when vehicles are removed from private property, such as commercial lots and apartment complexes.
Contact Will Jones at (804) 649-6911 or wjones@timesdispatch.com.
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