CR 01-162 Consider Increase in Towing Company Charges
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October 16,2001
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Council Report 01-162
CONSIDER INCREASE IN TOWING COMPANY CHARGES
Proposed. Action
Staff recommends adoption of the following motion: Move to aDorove an increase in contract towino
comDanv charaes to $63 for 9asic tow and $17 oar day storBOe charoe for snow emeroencv tows..
Overview
Matt's Towing is currently operating as the City's "Snow Emergency" contract towing agency. Current
base towing fee for a snow emergency related tow is $58 and a storage charge of $15 per day. The last
towing fee increase was in N()vember of 1998.
Matt's is requesting the increase in fees to reflect normal cost of living expenses, increased fuel costs for
the operation of the tow vehicles and reduced scrap metal prices received for cars that are not claimed
and must be junked.
Primary Issues to Consider
. Are the proposed charges comparable to similar fees charged in other cities?
. Are other alternatives available for lesser rates?
Supportino Infonnation
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aptain, Hopkins Police Department
Financial Impact: $_0 Budgeted: Y/N
Related Documents (CIP, ERP, etc.):
Notes:
Source:
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Council Report 01.162
Page 2
Primary Issues to Consider
. Are the proposed charges comparable to similar fees charged in other cities?
A survey of other cities towing charges found a range of fees ranging from $44.50 to $75.00 per
tow. Per day storage charges ranged from $15 to $25 per day. The proposed charges for Hopkins
tows by Matt's fall within the range for other cities.
. Are other alternatives available for lesser rates.
Currently, there are no other tow companies that can meet the City of Hopkins requirement of
having an impound/release lot for snow tows located within the city limits of Hopkins. It is
possible that one or more additional companies may be able to meet this requirement if given
enough time to look for space: With the upcoming snow season only a few weeks away, it is not
practical to search for other providers at this time.
It has been several years since a formal bidding process was conducted. The police department
will recommend that a new tow contract process be held in 2002.
Alternatives
The City Council bas the following alternatives regarding this item:
1) Approve the fee increases as proposed.
2) Deny approval of any fee increase
3) Negotiate with Matt's Auto for a smaller increase for the basic tow fee andlor the daily storage
fee.