Controversial tow yard proposal to be discussed in committee Wednesday afternoon

A proposal to create a city-run storage yard for towed vehicles is set to be discussed when the city's Ways and Means Committee meets Wednesday afternoon.

The proposal has been included in the city's preliminary budget and that document reports that the city could take in $680,000 in net revenue if the tow yard opens Jan. 1, 2010.

Local tow company owners oppose the plan. Industry members have said that they need storage fees for their businesses to survive.

There's also concern as to the city using a tow yard to bolster its finances. California law prohibits cities from making a profit on towing operations, although it is legal for local governments to recoup the costs of towing and storing towed vehicles.

The Ways and Means Committee is scheduled to meet at 4:30 p.m. Wednesday on the Fourth Floor of City Hall, 300 North D Street.