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HomeMy WebLinkAbout12-01 - Increased Fees and New Fee Categories for Contract Tow OperatorsRESOLUTION NO. 12-1 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADOPTING INCREASED FEES AND NEW FEE CATEGORIES FOR CONTRACT TOW OPERATORS. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, on March 3, 2009, the City Council approved the bid award to G & W Towing and Metro Pro Road Services for police towing services, for a five (5)-year term with the option of renewing for three (3) additional one (I) -year terms. In the original Request for Proposal for Police Towing Services (#1118) dated October 14, 2008, the City of Costa Mesa estimated that approximately 2,384 vehicles would be impounded and 1,351 vehicles stored annually; and WHEREAS, in 2009, the Costa Mesa Police Department impounded 2,310 vehicles and stored 714 for a total of 3,024. In 2010, 1510 vehicles were impounded and 561 stored for a total of 2,071. Using statistical information gathered from the first eight -months of 2011, the Police Department projects 1,018 vehicles will be impounded and 379 stored for the 2011 year. The reason for the decrease in vehicle impounds and storages are due to judicial legislation making it more difficult to impound vehicles for motorists driving without a license; and WHEREAS, the original Request for Proposals #1118, relating to contract tow operators, Section III: Special Terms and Conditions, subsection 5, allows the contract tow provider the opportunity to request a rate increase, prior to December 1, over and above the CPI once per year, detailing the basis for the request; and WHEREAS, Costa Mesa Municipal Code Section 9-284.9 (a) provides that the City Council may from time to time adopt by resolution a maximum rate schedule applicable to the towing services covered by this article, such that the rate schedule wilt be at a level to ensure competition, provide a fair return on investment, and provide. a high quality tow. service to the public; and. WHEREAS, both contract tow. providers, Metro Pro Roadside Services and G & W Towing submitted timely written: requests to increase. the contract fees due to rising fuel costs, decreased numbers of impounded vehicles and unforeseen rises in operating costs; and WHEREAS, based on a 54% reduction in vehicle storages and impounds by the City of Costa Mesa from 2009 to 2011, and unforeseen fuel and operating costs to both contract tow agencies, the City Council finds it appropriate to increase the tow rate fees pursuant to Exhibit "A" attached hereto. The City Council finds that this rate increase will ensure that the City of Costa Mesa's tow fees are consistent with those of neighboring cities, and will allow both contract tow agencies the ability to continue providing excellent service to the city. NOW, THEREFORE, BE IT RESOLVED as follows: Section 1: The City Council of the City of Costa Mesa finds and determines that based upon the data, information, analysis, oral and written documentation presented to this City Council concerning the necessary increase in contract tow fees described in Exhibit "A" attached hereto and by this reference incorporated herein, the fees set forth in said Exhibit "A" do not exceed the established reasonable cost of providing the service for which the fees are levied. Section 2: The fees set forth in Exhibit "A" shall be effective and shall be implemented commencing March 1, 2012, which is at least 30 days after Council adoption. PASSED AND ADOPTED this 3rd day of January, 2012. ATTEST: Julie olcik, City derk (2r, L--) Gary Monahan, Payor APPROVED AS TO FORM: Thomas P R6ade, City Attorney STATE OF CALIFORNIA ) CITY OF COSTA MESA ) I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 12-1 and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 3rd day of January, 2012, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS NOES: COUNCIL MEMBERS ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: BEVER, LEECE, MENSINGER NONE RIGHEIMER MONAHAN IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 4t" day of January, 2012. JU E FOLCIK, CITY CLERK (SEAL) EXHIBIT A CITY OF COSTA MESA ADJUSTED CONTRACT TOW RATE SCHEDULE Service Provided Current Rate Adjusted Rate Basic Tow $134.00 $160.00 Flatbed or Medium Duty $147.00 $180.00 Heavy Duty $260.00 $290.00 Motorcycle $147.00 $180.00 Outside Storage Car/MC $35.00 $40.00 Inside Storage Car $45.00 $50.00 Outside Storage Truck $45.00 $50.00 Inside Storage Truck $51.00 $55.00 Outside Storage Motorcycle $22.00 $25.00 Tow Dolly $45.00 $50.00 R&R Linkage/Driveshaft $22.00 $25.00 Rollover Winching $51.00 $55.00 Hourly Labor $134.00 $160.00 After Hours Release $45.00 $50.00 Service Call $60.00 $70.00