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CR 01-162 Consider Increase in Towing. - October 16, 2001 Proposed Action Staff recommends adoption of the following motion: Move to approve an increase in contract towing company charges to $63 for basic tow and $17 per day storage charge for snow emergency 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 November 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? Supporting Information nature aptain, Hopkins Police Department CONSIDER INCREASE IN TOWING COMPANY CHARGES Council Report 01 -162 Financial Impact: $ 0 Budgeted: Y/N _ Source: Related Documents (CIP, ERP, etc.): Notes: 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 intpound/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 has 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 and/or the daily storage fee.