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San Francisco Towing Fees To Drop Under New Contract

SAN FRANCISCO (CBS SF) -- San Francisco city officials Tuesday approved sharp reductions in towing fees, especially for lower-income residents.

A five-year, $65 million contract with towing contractor AutoReturn approved by the San Francisco Municipal Transportation Agency board and the Board of Supervisors Tuesday afternoon cuts fees charged for vehicles towed for the first time from a total of $491 to $380.

Most of that difference comes from a reduction in administrative fees charged by the San Francisco Municipal Transportation Agency.

Lower-income residents towed for the first time will see even more substantial reductions, with total towing fees cut to $294 and all storage fees waived for the first 48 hours.

The SFMTA board had already approved a contract last month with AutoReturn that included 5 percent cuts in towing fees and a complete waiver of such fees for the victims of vehicle theft.

However, supervisors refused to sign off on the contract until further cuts were made. The SFMTA negotiated the new terms with Supervisors John Avalos, Jane Kim and Aaron Peskin and the board approved the changes Tuesday afternoon, shortly before the Board of Supervisors also unanimously approved the updated contract.

"I'm enormously gratified that the MTA board stood up and recognized that in a city with some of the worst income inequality in the nation, too many families find themselves one missed rent payment away from eviction and displacement," Kim said in a statement. "These fines were potentially ruinous for too many."

In response to the proposed cuts, Supervisor Scott Wiener Tuesday also introduced legislation calling for Muni's operational budget to be supplemented from the general fund to cover any revenue loss generated by the reduction in towing fees.

He said the loss to the agency is currently estimated at around $3.5 million.

"I agree that our towing fees are incredibly high, and I'm supportive of finding ways to reduce the costs, particularly on our low-income residents," Wiener said. "However, if this reduction means that we see less funding for Muni operations, then we are punishing our residents who rely on Muni every day to get to work, to school and to move about the city."

Wiener's proposal will need to be approved by the full Board of Supervisors.

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