CR 05-124 Increase in Towing Charges
CITY OF
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Septermer 6, 2005
NOPKINS
Council Report 2005-124
CONSIDER INCREASE IN TOWING COMPANY CHARGES
Proposed Action
Staff recommends adoption of the following motion: Move to approve an increase in
contract towino companv charoes to $70 for basic tow: $85 for flatbed tow and $20 per
day storaoe charoes. Additionallv. the towino contractor requests to reserve the rioht
to neootiate certain fees should fuel prices rise sionificantlY durino the contract period.
Overview
Matt's Towing is currently operating as the City's towing contractor. The current towing
fee is $63 and the storage rate is $17 per day. The last time impound and storage fees
were raiser was in October of 2001.
Matt's is requesting the increase in fees to reflect normal cost of living expenses,
increased expense for storage lot leases and a greatly increased expense for fuel to
operate the towing vehicles.
Primarv Issues to Consider
. Are the proposed fees comparable to similar fees charged in other cities?
. Are other alternatives available for a lesser rate.
Supportina Information
. Background
. Rate comparison with surrounding cities
. Analysis of the issue
Financial Impact: $ 0 Budgeted: Y/N
Related Documents (CIP, ERP, etc.):
Notes:
Source:
BACKGROUND
Matt's Towing has been the contract towing company for the City of Hopkins since the
mid 1990's. The contract covers both general "police" tows and impounds and "snow
emergency" impounds. The contract does not cover "private tows" .
The last increase in towing and storage fees was granted in October of2001, Since that
time, personnel expenses have increased due to increased wages paid to employees,
expenses to keep and maintain required storage lots have increased and the cost of fuel fo
operate the tow trucks has increased by approximately 100%.
RATE COMPARISON
The proposed towing and storage rates are less than or the same as those for the cities of
Eden Prairie and Minnetonka, Matt's Towing has both of these contracts, The basic
impound charges in both cities is $85 which is higher than the proposed fee for the
Hopkins contract. Storage fees for Eden Prairie and Minnetonka are $20 ,per day, the
same as the proposal for Hopkins.
ANALYSIS OF ISSUE
. Should the rate increase be approved?
Based on a review ofthe information available, particularly the large increase in
fuel prices, as well as a comparison with the contract rates in neighboring cities,
the proposed fee increases appears justified,