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Tuesday, November 30, 2010

Public Hearing

Towing Companies showed up in full force last night hoping to get a chance to express their opinions on the towing ordinance in the City of Salisbury. The main statement, "If it ain't broke, why fix it."

I sat and listened to each and every representative explain how they're losing money. In some cases they expressed how they go uncompensated for 30 to 40% of the calls. If there's an insurance company, there's no problem, many said. However, if there's not an insurance company involved there's a very good chance they're going to lose out. One or two companies complained about the $200.00 fee to go on an overturned tractor trailer call, it's not enough.

One woman owner, (Holly Morgan) complained about the hours they must be available, 8 to 6. She complained about how it was a hardship on her Family to get the kids off to school and be at the Office by 8 AM. While I thought the complaint was somewhat bogus, she is right by stating 8 to 6 was NOT normal business hours. 9 to 5 would be more like it but according to the rules they have to go by they could get pulled off the rotation for 6 months if they don't comply.

Mind you, I have yet to hear of a board who monitors these rules. Also, one company stated, what about the companies who are single owner businesses. How can we be at the Office if we're on a call. Technically they could be pulled from the rotation as well if they don't comply.

Another thing that caught my interest was the insurance rates some of these companies pay. For the big rigs, they pay around $10,000.00 a MONTH for insurance. Being told they can only collect $200.00 for an overturned tractor trailer just doesn't cut it.

Now, there's another side to this whole thing in which I expressed my personal opinion last night. I agreed that the single owner with four different companies was out of line. However, it seems to me there are plenty of Towing Companies in Salisbury, (at least 14) if they don't like the rates, don't get on the rotation. If everyone decides it's not worth it, then I could see the administration/legislators making changes.

I also expressed how far too many people stood up complaining about losses. Look, every business has losses. It's not the City's problem when they provide opportunity. Again, I look at this as if I was one of the owners. If the bad overwhelms the good, get off the rotation. The City COULD get their own fleet of Tow Trucks and say, Game Over.

There were some other legitimate complaints though. One of the rules states each driver must have 5 years experience. That's ridiculous. DOT has their own set of rules and every company complies with those regulations. Why should the City force an expansion of the DOT rules. One owner stated he got into the business one year ago. He served in the Armed Forces for 20 1/2 years and has complied with DOT, why does he have to answer to the City.

Then there was the rule from the City that each company must have a maximum of a $100.00 deductible on their insurance policies. Now come on, that's ridiculous. As long as each company has the minimum insurance policy the City requires, why the heck are they subjected to a $100.00 maximum deductible?

Another thing many do not realize is the damage and expense these companies go through, especially during a major snow storm. While the City rang their phones off the hook for days last winter, these trucks had a very difficult time getting to the locations/emergency routes. They're not snow plows, they're tow trucks. When you're getting $85.00 per tow in these kind of conditions, it doesn't seem quite worth it. Especially when the City makes such demands, 8 to 6, someone has to be in the Office, 3 strikes against you and you're off the rotation for 6 months.

I do sympathize with some of the conditions. Not every tow is an easy tow. You know, like when someone calls to have their vehicle towed to their mechanic because it broke down, that's easy. However, in many cases its a bad accident where the roadway needs to be cleared of debris, (which is done by the towing company) for $85.00. A vehicle goes into a ditch. You don't just yank it out. One example of the vehicle that want off the Bypass and landed upside down on the R/R Tracks. That took at least three hours. You can't pay a driver and tow a vehicle in that condition for $85.00.

So some of their complaints are legitimate but as I said earlier, you take the good with the bad. If the City is willing to make some changes in their ordinance, good for the Towing Companies. If they choose to leave it where it is, then the Towing Companies need to reconsider, is it worth doing business with the City.

8 comments:

Anonymous said...

i dont think the government (on any level) needs to put a cap on what someone can charge. its capitalism. why would i allow government tell me i cant make more if i want my own business?

Anonymous said...

So am I understanding this correctly? They ONLY charge the City $85.00? What about the owner of the vehicle? Don't they get charged as well?
I know when we have vehicles towed to our shop by a tow company for one of our customers, we pay the tow company when they bring in the vehicle and then our customer pays that fee along with the repair charges once their car is repaired.
Therefore, IF this is the case, isn't this double dipping? If so, then what are they complaining about?!

Anonymous said...

I would like proof that they pay $10,000/month for insurance ($120,000/yr). I'm not saying it isn't possible, but I know that with 3 tractor trailers (truck & trailer) coverage, cargo coverage, general liability, and the all-expensive hazardous materials coverage (not all truckers need this, but I believe towing may as I do for carrying oil), I pay about $30,000/year.

I think the big stink is how some of the proprietors establish multiple companies (one per truck) in an effort to get on the rotation more times than others.

I really cannot judge their fees as I, as most out here, am not in their position, just as they cannot speak knowledgeably about my business. All I know is that there needs to be some even playing field for all involved.

Anonymous said...

The $85 fee only applies to Scoff Law vehicles. The proposed cap to accident vehicles and illegally driven vehicles(bad tags, DWI, etc) is $200, an additional $100 for winching/rollover, and $75 for cleanup... Heavy Duty rates (tractor trailer) are higher. Im not sure exactly what the per month rate for insurance is for the Heavy Duty trucks, but i do know that some of them have to carry $2 Million in coverage. That can NOT be cheap!

Anonymous said...

I do not understand why there isn't a consortium of company owners and government working out the details of this policy, instead of the city telling them how to run a towing business.
Unless you have actually run a towing company you have no clue what it takes to get the job done, and what you run into on a per case basis.
I understand there needs to be fairness for all to be profitable and sometimes needs dictate certain rules (hours, etc.)
There just seems to be a pattern of dictating vs conversing when it comes to hammering out policy.
I also feel as a citizen I have the right to choose who handles my vehicle. We all know some are more honest and fair than others.

Anonymous said...

Hey, Last night I stated that Simpson's Towing's monthly average on Fuel and Insurance cost exceeded
$10,400 a month, wasn't just insurance to clear that up. And responding to a vehicle weighing over 10k gvw for 200 for a tow and additional 300 for rollover wouldn't cut it with those cost. Recovery of a loaded tractor trailer can take many many hours and responding with 500k dollars worth of equipment.

Anonymous said...

Hey if you don't like the price you call somebody else. I thought the last election spoke of people being ill from TOO MUCH government!

Government is running this country into a ditch and it's not going to be cheap to get out.

Anonymous said...

7:01pm. the consumer or citizen doesn't have a choice to call someone else, it is based on a rotation list. That is why it needs to be regulated or do away with the rotation system and allow the consumers needing a tow call who they prefer.