HomeMy WebLinkAboutAgenda Statement 1987/09/08 Item 5COUNCIL AGENDA STATEMENT
Item 5
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• Meeting Date 9/8/87
ITEM TITLE• Resolution/~,z3(0 Approving Rate Increase for the
• Police Requested Towing Service
SUBbSITTED BY: Director of I~'Li~l~ Safety 4 5ths Vote: x
~ / Yes No )
REVIEWED BY: City Manager
The tow companies have contacted staff with a request to
increase the rates for the Police Requested Tow Service. The
current rate structure was approved in May, 1984.
RECOMMENDATION: Adopt Resolution approving tow rate increase
BOARDS/COMMISSION RECOMMENDATION: N/A
DISCUSSION:
The tow companies are requesting increases in the rate schedules
for police requested towing. The .current rate schedule was
approved by Council in May of 1984. Since that time there have
been general increases in rates throughout San Diego County.
These increases are generally based on increased costs. to
operate the towing business but more specifically on the problem
associated with the removal of abandoned vehicles from public
and private property.
The increase in abandoned vehicles has created storage space
problems for the tow companies. During the periods they tow
for the City, their lots are frequently crowded with abandoned
vehicles. Some companies have been forced to look for larger
storage lots to alleviate this problem. These vehicles must
be retained for at least fifteen days and frequently as long
as 60 days while lien sale procedures take place. After the
lien sale has been .completed, the unclaimed vehicles are then
towed to a scrap yard or vehicle dismantler. If the vehicle
is totally intact, with most of its major parts, the tow company
will receive $30 to $75 .for the vehicle. If the vehicle is
totally stripped, the scrap yard will only pay $10 to $15. In
almost all instances the towing company does not receive any
fee for towing these abandoned vehicles because the owner is
not identified and therefor no one can be billed. In most cases
the incident results in a monetary loss for the company.
Recent court action against Pacific Steel in National City will
have an adverse effect on the abandoned vehicle situation.
Pacific Steel accepts scrap metal from abandoned vehicles and
processes it into shredded material called fluff. Pacific Steel
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Page 2, Item
• Meeting Date 9/8/87
allowed this fluff to accumulate into huge piles and a recent
fire in the piles of fluff caused serious concerns from several
governmental agencies. The court action will significantly
limit the amount of scrap vehicle parts that Pacific Steel can
accept until they reduce the amount of fluff they have
accumulated. If Pacific Steel is unable to accept this scrap
it will have to be transported to the Los Angeles area. This
will reduce the price tow companies will receive for junk vehicles.
The abandoned vehicle problem is state-wide in scope. Many
tow companies have been forced out of the police tow business
by this problem and some cities have been actually paying tow
companies to process these vehicles. Legislation has been drafted
to minimize the abandoned vehicle problem. SB 144, introduced
by Senator McCorquodale, would establish an abandoned vehicle
abatement program by levying a $1 service fee on vehicles registered
in 1988 and 1989. The funds would be used to reimburse cities
and counties which have an established county-wide program for
the removal of abandoned vehicles from highways. Until the
problem is brought under control, it seems appropriate for cities
to consider the abandoned vehicle problem when they set the
tow rate schedule.
•In Attachment A staff has set forth the current tow rates in
San Diego County jurisdictions. Staff is recommending an increase
in the basic tow rate from $34 to $44. This is $5 more than
the County average but it is less than the City of San Diego
and it will help to off set the costs associated with the abandoned
vehicle problem. Staff is recommending an increase in the daily
storage rate from $6.50 to $ 10 per day with the additional
change that specifies the rate will be $1 per hour with a maximum
of $10 per day. This will be an advantage to the person who
reclaims their vehicle in two or three hours in that they will
not have to pay the full $10 but will only pay the $1 per hour
storage rate. The remaining rates are generally consistent
with the County averages.
FINANCIAL IMPACT: N/A
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