Although some officials raised concerns about the financial effect on everyday residents, the Chattanooga City Council on Tuesday voted for an ordinance that would raise the maximum allowable rates charged by towing companies on the city's call list, rates that haven't been updated in years.
The change will require one more vote of approval from the panel. Tuesday's vote was 8-0. Councilwoman Jenny Hill, of North Chattanooga, was absent.
Currently, tow companies can charge a maximum of $125 to tow passenger vehicles in the daytime and $135 during the evening and on weekends, according to city code. Under the proposed changes, those rates would double to $250 and $275, respectively. The cost of daily storage would also jump from $15 per day to $35 per day.
The fees charged for larger vehicles would also increase, rising from $250 to $550 per hour to tow medium-sized trucks and trailers in the daytime and $425 to $700 per hour to tow larger, heavy-duty vehicles.
Council Vice Chairwoman Raquetta Dotley, of East Lake, said in a phone interview before the vote Tuesday that the rates haven't changed since around 2004 and have failed to keep pace with inflation.
The ordinance would align the city's rates with those set by the Tennessee Highway Patrol, she said. As they were assessing changes to the rules, Dotley said, officials also surveyed surrounding cities and received additional information from wrecker services in Chattanooga.
"What we're doing right now is addressing the unfortunate fact that these business owners within the city of Chattanooga have been doing this work and haven't received the proper respect or gotten these (rates) reviewed in a very long time," she said.
Mayor Tim Kelly's chief of staff, Joda Thongnopnua, suggested during the panel's agenda review meeting Tuesday that council members defer the vote by a week to discuss a few slight adjustments to the ordinance, which would reduce the proposed daytime and nighttime tow rates for passenger vehicles. He proposed tying those rates to inflation, bringing them to $200 and $215, respectively, rather than $250 and $275.
"We do believe that that $50 can really matter in this inflationary environment, particularly to many Chattanoogans who, when they get a towing expense, it's unexpected," Thongnopnua said. "If everyday Chattanoogans are adjusting their lives and tightening their belts because of inflation, we expect the towing industry to do the same."
Councilwoman Demetrus Coonrod, of Eastdale, had similar concerns about the effect on residents who are struggling to afford the cost of living. Coonrod said she would support an increase -- maybe to $150 or $200 -- but doubling the rate would be too much.
"I do agree it has been an issue that should have been taken care of before now, but to me we have more pressing, urgent issues that we need to be dealing with, and I don't think the wrecker fees are one of those that fit into urgency for me," she said
Although the proposed ordinance already includes language stating those are maximum rates, council members approved an amendment at Coonrod's urging that would clearly state companies could charge "up to" the amounts listed.
"We know 'maximum' and 'up to' mean the same, but for the sake of clarity for my constituents, I need it to be worded a little different," she said.
Mark Shackleford owns Shackleford Towing & Recovery on Calhoun Avenue in Chattanooga and said in a phone interview Tuesday that the existing rates make it challenging to stay profitable. It's particularly difficult to retain qualified employees, he said.
The proposed rate change would help wrecker companies maintain up-to-date equipment, he said, and handle the rising costs of fuel and insurance.
"Insurance is one of my biggest expenses here," Shackleford said. "It's an average of $10,000 to $15,000 per year per truck, and that's with a seasoned, qualified driver. ... With those horrific insurance costs and then the equipment costs and the fuel costs and now the payroll increase with labor costs, we have definitely taken a hit, and it doesn't seem to let up."
Long term, Dotley said, Kelly's administration is looking at separating the responsibilities of the city's beer and wrecker board so those two roles are distinct, which Thongnopnua noted the city is aiming to accomplish in the second quarter of next year.
"It's a little odd that you have beer licenses being given out at the same place you would give taxi medallions or evaluate wrecker policies," Thongnopnua told the Chattanooga Times Free Press. "It just makes sense to separate them."
At that point, Dotley said, the city would take a closer look at the entire ordinance to bring it up to date.
"We don't want to wait another 10 to 15 years to have to do another rate increase like this," she said. "It should have been done along the way. It should have been something that was consistently looked at."
Contact David Floyd at dfloyd@timesfreepress.com or 423-757-6249. Follow him on Twitter @flavid_doyd.