HomeMy WebLinkAbout10 - PH-1 - Request to Increase Tow Rates by Contr. - 1/3/2012MEETING DATE: December 6, 2011 ITEM NUMBER: Item Number
SUBJECT* REQUEST TO INCREASE TOW RATES BY CONTRACT TOW COMPANIES
DATE: 10/13/11
FROM: POLICE DEPARTMENT[TRAFFIC SAFETY BUREAU
PRESENTATION BY: LIEUTENANT MARTY CARVER
FOR FURTHER INFORMATION CONTACT: MARTY CARVER (714) 754-5384
RECOMMENDATION:
The City Council is requested to increase the Official Tow Rate Schedule in accordance
with Section 9-284.9 of the City of Costa Mesa Municipal Code.
BACKGROUND:
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 (1) -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.
In 2009, the 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. 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.
ANALYSIS:
In September 2011, Metro Pro Road Services and G & W Towing both sent a letter to the
City of Costa Mesa requesting an increase to the Official Tow Rate Schedule due to the
decreasing number of impounds and storages, higher operating costs associated with
labor, equipment, employee benefits, workers compensation and soaring fuel costs
(Attachment 1—Metro Pro, Attachment 2-G & W Towing). Metro Pro estimates some of
those costs have increased as much as 94%. Both companies state the rate increase is
necessary to maintain the current required level of service as dictated in the contract.
The following table lists the current fee schedule and the adjusted rate increase.
CITY OF COSTA MESA
ADJUSTED TOW RATE SCHEDULE
CURRENT PRnPnRFn
Basic Tow
$134.00
$160.00
Flatbed or Medium Du
$147.00
$180.00
,-Heavy Du
$260.00
$290.00
Motorcycle
$147.00
$180.00
Outside Stora a CarIMC
$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 Linka a/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
The original Request for Proposal #1118, Section III: Special Terms and Conditions,
subsection 5, allows the contract tow provider the opportunity to request a rate increase
over and above the CPI once per year. Any request must be made no later than
December 1" of each year and shall specifically detail the basis of the fee request. Metro
Pro Roadside Services Chief Executive Officer, Jody Campbell and G & W Towing owner
Wayne Miller have both provided letters specifying the reasons for the requested rate
increase.
Costa Mesa Municipal Section 9284.9 (a) states the City Council may from time to
time adopt by resolution a maximum rate schedule applicable to the towing services
covered by this article. The rate schedule will be at a level to ensure competition,
provide a fair return on investment, and provide a high quality tow service to the
public.
Metro Pro Roadside Services and G & W Towing submitted a tow service list that
includes the current and adjusted rates. As part of this study, I have attached a
spreadsheet listing a sampling of tow rates from various Orange County Cities, county,
and state agencies for comparison (Attachment 3 -Sampling of Orange County Tow
Rates).
ALTERNATIVES CONSIDERED:
No alternatives were considered.
FISCAL REVIEW:
There is no fiscal impact to the City of Costa Mesa.
LEGAL REVIEW:
The City Attorney has reviewed this report and the attached resolution and no further
legal review is required.
2
CONCLUSION:
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, staff recommends the City of Costa Mesa increase the tow rate fees to the
adjusted level listed in this report. This will insure the City of Costa Mesa's tow fees are
consistent with neighboring cities and will allow both contract tow agencies the ability to
continue providing excellent service to the city.
it�- .2 �- m
MARTY CARVER
Lieutenant
DISTRIBUTION:
TOM GAZSI
Chief of Police
Richard L. Adams
Deputy City Attorney
ATTACHMENTS: 1 Metro Pro Roadside Service Rate
Increase Letter.
2 G & W Towing Rate Increase Letter.
3 Sampling of Orange County Tow Rates
4 Resolution
File Name
Date
Time
3
Jody D. Campbell
Chief Executive Officer
September 2, 2011
Lieutenant Marty Carver
Costa Mesa Police Department
Traffic Safety Bureau
99 Fair Drive
Costa Mesa, Ca 92526
Re: Official Police Tow Rate Increase
Dear Lt. Carver:
ATTACHMENT I
Metropro Road Services, Inc.
2550 S. Gamsey Street
Santa Ana, California 92707
(7%) 556.2244
Fax (7`14) 556-0464
The purpose of this correspondence is to respectfully request a tow rate increase in
accordance with Section 9-284.9 of the City of Costa Mesa License and Business
Regulations.
This section provides a framework to establish the maximum rates for towing services.
Typically, these rates are increased annually in accordance to the change in the Consumer
Price index. However, due to a stagnate Index, we have maintained the same rates for
over two years. Unfortunately, operating costs associated with labor, equipment, employee
benefits, workers compensation and fuel have all increased significantly during this time -
some as much as 94%. This concent is amplified when coupled with the dramatic loss of
income experienced by the police tow services due to a 50% decrease in impounded/stored
vehicles by Costa Mesa Police Department ("CMPD").
Since 2003, CMPD has impounded an average of 410 vehicles per month. The past
several years have seen a significant decrease in impounds with the last 12 months
resulting in a monthly average of 194 impounds. While experiencing a 50% loss of
revenue, the police tow operators have maintained the required standards of facilities,
equipment and personnel to provide the highest level of service for the CMPD and
community.
Section 9284.9 (a) states, "The rate schedule will be at a level to ensure competition,
provide a fair return on Investment, and provide a high quality tow service to the public."
With a 50% reduction in revenues, these standards are threatened, Consequently, our
request of a rate adjustment'to compensate for Increased operating expenses and loss of
revenue is reasonable, just and necessary to maintain the current required level of
services.
A & P Towing - Ben's Towing • Harbor Towing - John's Towing , MetroPro/Huntington Beach • Santa Ana Towing
ATTACHMENT 11
1-949-642-1252 a Toll Free 1-877-642-1252 a FAX 1-949-646-3492
965 W. 18th Street, Costa Mesa, California 92627
September 08, 2011
Lt. Carver
Costa Mesa Police Department
99 Pair Drive
Costa Mesa, CA 92628
Dear Lt, Carver:
Reference towing rate increase:
Our request for a rate increase is a result of a decline in tow volume of
approximately 50 percent since 2008. f have attached a month by month break
down for your assistance.
We have also seen our fuel cost nearly double and I have also attached some
invoices for reference.
It should also be noted, that the rate change will allow us to continue providing
the city with professional tow service at no cost to the city.
Your consideration of this request is greatly appreciated.
Sincerely,
G. Wayne Miller
Attachments
January
February
March
April
May
June
July
August
Costa Mesa Police Department
Vehicles Towed
2008
208
157
192
189
210
196
205
186
Total 1543
2011
90
115
125
92
95
74
88
116
795
ATTACHMENT YY
General Petroleum
Corporation
or
DEL TICKET )
6/09
ATTACHMENT II
REMIT TO: P.O. Box 31001-1235
Pasadena, CA 91114-1235
Customer Service: (800) 659.5823 Fax: (310) 356.2624
Credit inquiries: (310) 356-2400
500 R'C"SE TV
BILLING AODRESSI-;%, S .c :SHIPPED TO:
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TERMS,ySjj,i+ .; ,i, •.�4' i''1 ° COUNTRY CODE:
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P F T R 0 L E U M
ATTACHMENT xx
REMIT TO: General Petroleum, a Maxum Petroleum Company
P.0, pox 31001-1235
Pasadena, CA 91110-1235
Customer 5ervice: (800) 659-5823 Fax: (209) 556-5005
Credit Inquiries: (310) 356.2400
BILLING ADDRESS; SHIPPED TO:
G & W TOWING G & V? TOWING
PACIFIC WRECKER SALES
965 ,TEST 18TH STM2 965 WEST 18TH ti BEET
COSTA MRSA CA 926:7 COST, MSP. CK 92627
TERMS: COUNTRY CODE;
NET WE' 30 DAYS
REmI T T O : GENERAL PETF,0LEfR4 CORPOP AT. I CN
(;Atr'TITY PHCifAGE EXT QTY PRICE
4J6?rJ03, ;'JHSE_500 1531.60 BULK GALS
CAF -B ULTRA L.. S., CLEAR DIESEL
DIESEL FJEL,3,NA1993,PGIII
2004 EMERGENCY RESDONSE GUIDE 12-8
FEDERAL EXCISE'TAY. SEL
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FED OIL SPILL FEE
STATE EXCISE TAY,
CALIF. OIL SPILL SURCILARG
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REC-rJLATORY COMPLIANCE FEE
SALES TAX: 491.47
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CUSTOMER COPY
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ATTACHMENT II
i-949-642-1252 a Toil Free 1-877-642-1252 s FAX 1-949 6-34¢2
965 W. 18th Street, Costa Mesa, California 92627
City of Costa Mesa
Adjusted Rate Schedule
Current
Adjusted
Basic Tour
134.00
160.00
Flatbed or Medium Duty
147.00
180.00
Heavy Duty
260.00
290.00
Motorcycle
147.00
180.00
Obtside Storage Car
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
Tout 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
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ATTACHMENT 4
RESOLUTION NO. 11-
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 (1) -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 will
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
ATTACHMENT 4
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 Folcik, City Clerk
Gary Monahan, Mayor
APPROVED AS TO FORM:
Thomas P. Duarte, City Attorney
ATTACHMENT 4
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
1, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No, 11- and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 3`d day of January, 2012, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 4`h day of January, 2012,
JULIE FOLCIK, CITY CLERK
(S EAL)
ATTACHMENT
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 Lin kage/Drives haft
$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