The Fairbanks City Council unanimously adopted an ordinance Monday updating the city’s fee schedule for its list of rotating tow providers.
During most major traffic incidents, drivers may call their own towing service or have the Fairbanks Police Department (FPD) dispatch one from its official list. The city’s fee schedule applies only when FPD initiates the call, regulating what tow companies can charge.
Under the updated ordinance, the new towing fee schedule includes:
• A flat callout fee of $300
• A $5 per-mile charge (up from $4)
• A $50 daily storage fee
• A $150 fee for accessing a vehicle on holidays or outside regular business hours (free access during normal hours)
• A new $100 security fee
Chief of Staff Michael Sanders said the city consulted with Interior Towing to revise the fees.
“These have not been touched in five years and will bring us in line with what the Alaska State Troopers have,” Sanders said.
The update also introduces a new accident clean-up fee. Sanders noted that some tow operators have skipped debris clean-up because there was no associated compensation, though companies like Badger Towing and Interior Towing “are pretty good about that.”
The ordinance also establishes a new requirement: tow companies on the city’s list must have impound lots located within 10 miles of Fairbanks City Hall.
Police Chief Ron Dupee said the rule is intended to limit excessive fees and deter predatory operators. He said some residents had received towing bills as high as $6,000 or $7,000.
“I think it’s an appropriate thing to do and for our citizens to get their stuff without having to drive to Moose Creek to get it,” Sanders said.
The new distance requirement drew concern from Chelsea Hatcher and William Reames, owners of Moose Creek-based Tug N’ Grin Towing and Recovery. Hatcher said she recently launched her business and that the 10-mile restriction could severely impact it.
She said her truck can reach an accident in Fairbanks within 23 minutes of a call from FPD.
“We’ve never had a problem, and that’s why when this ordinance came around, I called to figure out what was going on,” Hatcher said. She added the only complaint she’s ever received was about the distance people must travel to retrieve their property.
“We’ve offered to drive people their things,” she said. “We are a company that offers a lot of free services. If you get pulled over, you have a bunch of people in the car, and it’s the middle of winter; we won’t leave you on the side of the road.”
Hatcher said their impound lot primarily serves as “a staging area for insurance companies to figure out things.”
Reames asked the council for more time to find a lot closer to Fairbanks, noting they have already hired a realtor. He said most of their calls come from Fairbanks rather than North Pole, which uses Interior Towing Services for most of its towing needs.
“We get a lot of our revenue through the City of Fairbanks’ nonpreference tows,” Reames said.
Robert Smith, owner of Badger Towing, supported the Tug N’ Grin owners’ request for more time.
Mayor David Pruhs acknowledged past removals of problematic tow companies from the list.
“This company is not one of those,” Pruhs said. “I don’t want to set an arbitrary number [and] knock someone out of an existing business.”
Councilmember Jerry Cleworth supported the distance rule but proposed setting an effective date of Oct. 31 to give operators time to comply.
“That would give them a chance to comply,” Cleworth said. “When you’re charging a mileage rate all the way out to Moose Creek, it is a real inconvenience for them.”
Councilmembers John Ringstad and Valerie Therrien pushed for delaying the requirement until October 2026, saying it would be unrealistic to expect Tug N’ Grin to secure land within six months.
“They’ve got to shell out all the money in the summertime when they’re not making much money,” Ringstad said. “Give them another season and have them get it up and going.”
Ultimately, the council voted unanimously to set the 10-mile requirement to take effect on Oct. 31.
Fee disagreements spark debate
Cleworth raised concerns over the new towing fees, calling them steep.
“It needs to be raised, I understand that, but the $300 is a pretty stiff call-out fee,” he said. “It’s too much, too quick on some of these fees ... if you don’t get your vehicle out right away, you’re racking up some bucks.”
He proposed lowering the call-out fee to $200, saying it’s “still more than what some folks charge.”
Councilmember Sue Sprinkle agreed, saying, “No one should be gaining money from this.”
Cleworth’s amendment failed on a 3–4 vote, with Cleworth, Sprinkle, and Therrien supporting the lower fee. Councilmembers Lonny Marney, Crystal Tidwell, and John Ringstad voted to keep the $300 fee, with Mayor Pruhs breaking the tie.
