City Council gives first of two approvals on new vehicle towing rates

Jan. 23--Towing fees charged by a group of wrecker companies could increase by 25 percent if the Knoxville City Council approves the change next month.

Council members made the first of two necessary approvals Tuesday to implement rate increases that currently apply to eight companies that participate in the city's rotation program.

For example, police officers who respond to car accidents can dispatch wreckers on the rotation program, if needed. The proposed fee increases would also apply to the towing of vehicles in noncollision incidents.

Depending on the weight of the vehicles, wreckers could charge between $150 and $437.50 for vehicles involved in a collision, according to the proposal.

Noncollision towing would carry charges between $81.25 and $312.50, according to the proposal. However, fees charged to the city would stay the same when wreckers tow public vehicles to a city facility, under the current proposal.

"Even the 25 percent (increase) is well under what the rest of our competitors are charging here in the city and across the state of Tennessee," said Rick Carnes, owner of Clinton Highway Wrecker Service. "Well under."

The rate increases come with the blessing of the city's Wrecker Services Commission, which is composed of city officials and consumer representatives.

The companies hired an attorney to put together a study comparing costs -- such as fuel, insurance and labor -- that was presented to the wrecker panel, Carnes said. An attorney was needed because companies did not want to reveal information about their business, he said.

"We've been working for over seven years without any increase," Carnes said. "Fuel, tires, insurance, everything has sky rocketed."

Wrecker commission member Keith Shields, the city's fleet services director, said he also studied the issue in 2011 by comparing rates charged by wreckers in Memphis, Nashville and Chattanooga, as well as in Louisville, Ky., and Lexington, Ky.

"With the proposed changes we're recommending, the wrecker fee would still be 23 percent lower than what it was in 2011 for our neighboring cities," Shields said.

Vice Mayor Nick Pavlis does not agree with the proposed rates, stating they're too much of an increase at once. Pavlis noted that the companies choose to participate in the rotation program, while others that don't can charge whatever they want for towing.

"I'm not saying the industry is not warranted some change in the rates but it's been hard times for everybody," he said. "It's been hard times for other industries, but most importantly, it's been a hard time for our constituents."

Pavlis and Councilman Nick Della Volpe attempted to change the proposal to phase in the increases over a three-year period. Pavlis wanted a 15 percent increase over three years, while Della Volpe wanted to keep the 25 percent increase over three years.

"Get them more money. It's obvious that they need it, but to swallow a 25 percent increase all in one fell swoop, I don't think it's fair to ask," Pavlis said.

The two amendments by Pavlis and Della Volpe failed, and council approved on first reading the immediate increase by a 6-3 vote.

Council members Marshall Stair, Pavlis and Della Volpe voted against the measure, while Duane Grieve, Brenda Palmer, Finbarr Saunders, George Wallace, Daniel Brown and Mark Campen voted in favor.

Carnes, who was the only person from one of the eight companies at the council meeting to speak, said insurance companies pay the towing fees most of the time, not the individual.

Carnes said Wednesday that the calls from the rotation program make up between 10 to 15 percent of his towing business.

The Knoxville Police Department does not track the number of times officers call for tows, KPD spokesman Darrell DeBusk said.

Wallace said he supported the increase because the towing companies justified the changes through a study that was reviewed and approved by city staff and the wrecker commission. The ordinance does not cost the city anything, he said.

"If you're having your car towed, it's part of the insurance," Wallace said. "If you have it stored, it's part of the insurance. If you don't have insurance, that person is going to pay a little bit more."

___

(c)2014 the Knoxville News-Sentinel (Knoxville, Tenn.)

Visit the Knoxville News-Sentinel (Knoxville, Tenn.) at www.knoxnews.com

Distributed by MCT Information Services