Title
RESOLUTION 2017-245 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE CITY-INITIATED TOW AND STORAGE RATE SCHEDULE AND THE TOW LICENSE FEE
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On February 7, 2017, City Council approved the tow license fee and tow and storage rates for 2017. The Police Department is requesting Council approval to update these fees for 2018.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
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BOARD/COMMISSION RECOMMENDATION
Not Applicable.
DISCUSSION
The Police Department administers the City’s program for City-initiated tows. Examples of City-initiated tows include vehicles impounded after an arrest or blocking a city street after a collision. The Department reviews tow fees annually for currency. The tow license fee (TLF) is for program costs and is apportioned equally among the City’s tow contractors. Towing and storage fees are fees the City’s tow contractors charge members of the public for City-initiated tows and impounds.
TOW LICENSE FEE UPDATE
California Vehicle Code Section 12110 authorizes the City to assess a TLF in connection with an award of a franchise to tow companies for City-initiated tows “to reimburse the public entity for its actual and reasonable costs incurred in connection with the towing program.” The TLF relates to staff recovery costs for requesting a tow call for service, from the start time a police employee calls for a tow request to the end time that the tow company leaves the scene. The computation of the City’s TLF is detailed below:
(Annual estimate of police-initiated tows) x (Estimated time spent per tow) x (Fully burdened hourly rate) = Tow License Fee
|
Position |
Annual Estimate of Police-Initiated Tows 1 |
Hours Spent per Police-Initiated Tow 2 |
Fully Burdened Hourly Rate 3 |
Tow License Fee |
|
Peace Officer |
1,057 |
0.53 |
$123.35 |
$69,102 |
|
Community Service Officer |
846 |
0.53 |
$65.55 |
$29,391 |
|
Parking Enforcement Officer |
446 |
0.53 |
$61.40 |
$14,514 |
|
Police Dispatcher |
2,349 |
0.08 |
$83.29 |
$15,652 |
|
|
|
|
TOTAL |
$128,659 |
|
1 2-year average of calendar years 2015 and 2016 is 2,349 tows |
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Does not include private tows or tows during grant-funded operations |
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Tow request breakdown by classification (Officer 45% of tow requests; CSO 36%; PEO 19%) |
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2 Estimated 32 minutes of Officer/CSO/PEO time during a tow call for service |
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|
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Estimated 5 minutes of Police Dispatcher time |
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|
|
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3 Fully Burdened Hourly Rate provided by Finance Department |
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|
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14221 Peace Officer; 14241 Community Service Officer; 14242 Parking Enforcement Officer; 14260 Police Dispatcher |
The proposed TFL for 2018 is $128,659. This amount is $9,618 lower than the 2017 TLF of $138,277. The amount is lower because of reductions in the citywide overhead allocation. The City re-calculates and revises the TLF every year using the same methodology.
CITY-INITIATED TOW AND STORAGE RATE UPDATE
The chart below provides a complete schedule of all charges and fees that the City’s tow contractors are authorized to collect from consumers for City-initiated tow and impound services.
|
Service |
2017 Current Rates |
2018 Proposed Rates |
Difference |
|
Basic Tow |
$209.00 |
$209.00 |
$0.00 |
|
Medium Tow |
$236.00 |
$235.00 |
(-$1.00) |
|
Heavy Tow |
$279.00 |
$278.00 |
(-$1.00) |
|
Mileage |
None |
None |
None |
|
Dolly Charge |
None |
None |
None |
|
Labor per hour (if exceeding one hour of service) |
$65.00 |
$65.00 |
$0.00 |
|
Basic Storage Rate (per 24-hour period) |
$51.00 |
$51.00 |
$0.00 |
|
Medium Storage Rate (per 24-hour period) |
$61.00 |
$56.00 |
(-$5.00) |
|
Heavy Storage Rate (per 24-hour period) |
$66.00 |
$65.00 |
(-$1.00) |
|
Evening Release (after 5:00pm & Holidays) |
$65.00 |
$65.00 |
$0.00 |
This rate schedule is identical to the California Highway Patrol Southern San Diego Region tow rates. The CHP manages one of the largest government entity-initiated tow program in the state, and its rates are viewed as representative and reliable benchmarks. As shown above, there are minimal changes proposed to the City’s 2017 tow and storage rates, with reductions in tow and storage rates for medium and heavy tows. The basic tow rate proposed for 2018 is the same as 2017. No increases are proposed.
If approved, the proposed TLF and tow and impound fees will be effective January 1, 2018. Each contracted tow company must post in plain view to the public the City-Initiated Tow and Storage Rates at their place of business.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The update of tow and storage rates and tow license fee supports the Operational Excellence goal by utilizing reasonable tow fees based on the most recent information.
CURRENT YEAR FISCAL IMPACT
Approval of this resolution would result in an updated Tow License Fee of $128,659, which is equally apportioned to the City’s tow contractors, effective January 1, 2018. Due to updated fully burdened hourly rates provided by the Finance Department, the updated Tow License Fee is $9,618 less than the 2017 Tow License Fee of $138,277. Consequently, there is a minor fiscal impact of $4,809 in the current fiscal year. The Police Department is able to absorb this minimal loss of revenues, and therefore no budget amendments are needed at this time.
ONGOING FISCAL IMPACT
The Tow License Fee will be re-calculated every year during the term of the tow contract. The Police Department will coordinate with the Finance Department to budget the appropriate Tow License Fee in each respective fiscal year.
ATTACHMENTS
None.
Staff Contact: Jonathan Alegre, Police Department