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Home My WebLink About4/18/2007 - STAFF REPORTS - 3.A. p ALM S, ;0 4� c V N h W* oyeo City Council Staff Report DATE: April 18, 2007 LEGISLATIVE SUBJECT: Resolution Establishing the Fees for Vehicle Towing Administrative Cast Recovery (VTACR) FROM: David Ready, City Manager BY: Palm Springs Police Department SUMMARY Palm Springs Municipal Code 11.82.100 established that a fee will be charged to each tow company entering into an agreement with the City. The Ordinance further states that by Resolution, the City Council shall establish the amount of the Vehicle Towing Administrative Cost Recovery fee, based on the actual and reasonable costs to the city, including the administration and overhead for administering the official police tow services providers' agreement and operating the vehicle towing program. STAFF RECOMMENDATION: 1, Adopt Resolution Establishing the Fees for Vehicle Towing Administrative Cost Recovery (VTACR). ISSUE ANALYSIS: On December 20, 2006, City Council approved Resolution 21792 approving agreements with tow operators to tow vehicles for the City of Palm Springs. The Resolution allowed a Vehicle Towing Administrative Cost Recovery (VTACR) Fee to be established by separate resolution. The fee is an aggregate of $100,000, payable to the City by the four tow companies who entered into the agreement; each of those four tow companies pays $25,000 to the City. The tow companies will charge the VTACR on to the citizen whose vehicle is towed, except on those vehicles towed from VillageFest or towed because the vehicle is stolen, recovered or evidence. ITEM NO. �� City Council Staff Report April 18, 2007 -- Page 2 Resolution Establishing the Fees for Vehicle Towing Administrative Cost Recovery (VTACR) The VTACR fee is based on the actual and reasonable costs to the City, including administration and overhead, for administering the official Police taw services providers' agreement and operating the vehicle towing program. It further provided that, on July 1st of each year, the Chief of Police would review the VTACR fee and make adjustments to reflect cost of living changes, to ensure that changing economic conditions do not impair the real value of the fees and charges under this chapter. The actual personnel costs associated with the towing of one vehicle is estimated to be $125. The estimated number of vehicles towed annually, not including vehicles stolen and/or recovered, vehicles towed from Villagefest or vehicles towed as evidence, is estimated at 800 to 900 vehicles. Annually, the administrative cost to the City is estimated to be between $100,000 and $112,000. For a complete breakdown of costs, justifying the administrative fee charged, refer to Attachment A. Each year, beginning in June 2008, the Chief of Police will conduct a study of the fees collected during the previous twelve months and shall determine whether an adjustment to the VTARC is warranted in accordance with 11.82.100 of the Municipal Code. FISCAL IMPACT: The fiscal impact to the general fund is minimal. The Vehicle Towing Administrative Cost Recovery fee is expected to cover the salary and benefits of the general unit employee assigned to administer the program, approximately $ 57,000 annually, and any related city costs associated with the tow program, for an approximate total of $ 100,000. Gary J , Police Chief David M. Ready, City Ma r Attachments: 1. Attachment "A": Breakdown of Fees 2. Resolution ATTACHMENT A VEHICLE IMPOUND FEES JUSTIFICATION Officer to stop, cite or arrest, tow vehicle and stand by, fill out CHP 180 form, return form to the Police Department for 1' approval and Dispatch data entry $61.23 * One officer x 1 hour @ $61.23 Police Dispatcher to run registration information, make 2 CLETS computer entries, attach entries to CHP 180 form, $18 24 conduct required "second party check" on computer entries ** One dispatcher x 30 minutes @ $36.49 Police sergeant or lieutenant to approve CHP 180, 3. teletypes, and related paperwork $7.84 *** One sergeant x 6 minutes @ $78.35 Records clerk (PSO) to prepare Notice of Towed Vehicle, check computer entries, mail notices, release towed 4. vehicles and answer related questions at counter, Records $27.16 data entry of CHP 180 form information, filing of forms One PSO x 1 hour @ $27.16 Miscellaneous costs including postage, copying costs, 5. materials, etc. $10.53 **** TOTAL PER VEHICLE $125.00 * Denotes a top step master patrol officer (although function could be performed by a CSO or a police sergeant) ** Denotes average cast between a dispatcher and dispatch supervisor *** Denotes top step master sergeant (although function could be performed by a lieutenant) **** This conservative total does not include costs related to administrative review of appeals, impound hearings for 30-day tows, or City staff administration of tow service agreement. All figures denote fully-benefited hourly rates for each job classification. The annual administrative cost to the City of Palm Springs is estimated to be between $100,000 and $112,000. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ESTABLISHING THE VEHICLE TOWING ADMINISTRATIVE COST RECOVERY (VTACR) FEES WHEREAS, the City of Palm Springs Police Department impounds and tows numerous and various vehicles removed from highways, public property, or private property in the city of Palm Springs during the normal course of duty; and WHEREAS, the City of Palm Springs Police Department tows and/or impounds vehicles pursuant to authority under the California Vehicle Code; and WHEREAS, the City of Palm Springs Municipal Code 11.82.100 establishes a Vehicle Towing Administrative Cost Recovery (TTACR) fee charged to each tow company entering into an agreement with the City of Palm Springs; and WHERAS, the VTACR Fee is based on the actual and reasonable costs to the City, including administration and overhead, for administering the official police tow services providers' agreement and operating the vehicle towing program. NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL HEREBY FINDS AND DETERMINES THAT: SECTION 1. Findings. a. That City staff has completed an analysis of fees administering the official police tow services providers' agreement and operating the vehicle towing program. b. There is a reasonable relationship between the amount of the fee and the estimated reasonable cost of providing the type of service for which the fee is imposed. e. The fees do not exceed the estimated reasonable cost of providing the service for which the fee is charged. SECTION 2: Fees Imposed. a. The City Council adopts the VTACR fee of$100,000 annually, to be based on the actual and reasonable costs to the city. b. On July Vt of each year, the Chief of Police shall review the VTACR fee and adjust the VTACR fee upward or downward by the same percentage increase of decrease, occurring during the previous twelve months, to Resolution No. Page 2 reflect cost-of-living changes and to ensure that changing economic conditions do not impair the real value of the fees and charges under this chapter. SECTION 3. Severability. Each component of the fees and all portions of this Resolution are severable. Should any individual component of the fee or other provision of this Resolution be adjudged to be invalid, the remaining provisions shall be fully effective, and the fee shall be fully effective except as to that portion that has been judged to be invalid. SECTION 4. Effective Date. The fees shall be effective upon adoption of Ordinance No. , which amends the Palm Springs Municipal Code relating to VTACR fees; and the City Clerk is authorized to incorporate said fees and charges into the Comprehensive Fee Schedule. Adopted this 18th day of April, 2007. ATTEST: David H. Ready, City Manager James Thompson, City Clerk Resolution No, Page 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on April 18, 2007, by the following vote: AYES. NOES: ABSENT: ABSTAIN: James Thompson, City Clerk