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HomeMy WebLinkAbout34- City Managers Office ORIGINAL CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Charles. E McNeely Subject: Discuss and take possible action regardin a Police Operated Impound Facility. Dept: City Manager's Office Date: June 30, 2010 File No.: MCC Date: 7/06/2010 Synopsis of Previous Council Action: 08/17/2010—Mayor and Council considered a Police Operated Impound Facility Business Plan; however, the motions were not approved. Recommended Motion: That staff be directed to update the attached Police Operated Impound Facility Business Plan dated August 17, 2009. 421 kl� zklmo/ les E. M cc Contact person: Chief Kilmer Phone: 5606 Supporting data attached: Staff Report & 8-17-2009 Ward: Council item FUNDING REQUIREMENTS: Amount: None by this action Source: (Acct. No.) (Acct. Description) Finance: Council Notes: Agenda Item No. # T CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Staff Report Subject Discuss and take possible action regarding a Police Operated Impound Facility. Background During the deliberations regarding revenue enhancements for the fiscal year 2009/10 budget, staff was directed to research the feasibility of a City operated impound facility. As a result, a business plan was developed and considered by the Mayor and Common Council in August of 2009; however, after much discussion and deliberation, the plan was not approved. At the June 30a' budget workshop, Councilmember Marquez requested that the concept of a City operated tow yard be considered once again. Attached is the staff report from August 17, 2009 which includes the proposed business plan for this program. Should the Mayor and Council determine to pursue this matter, it is recommended that staff be directed to update the business plan and present it to the Mayor and Common Council for further review. Financial Impact None by this action. Recommendation That staff be directed to update the attached Police Operated Impound Facility Business Plan dated August 17, 2009. QTY OF SAN BERNARDINO- REQUEST FOR COUNCIL ACTION From: Keith L. Kilmer, Subject: Approval of a Police Operated Chief of Police Impound Facility as Outlined in the Attached Business Plan. Dept: Police Department Date: June 23,2009 - MICC Meeting Date: 08/ 17/2009 Synopsis of Previous Council Action: 3-4-09 Concept presented to the Ways&Means Committee and directed to return with a comprehensive business plan. 7-22-09 Business plan presented to Ways&Means Committee. 8-5-09 Ways&Means Committee recommended the item be forwarded to the Common Council for consideration. Recommended Motion: 1. That the Police operated impound facility be approved as outlined in the attached business plan(Attachment B). 2. That staff be directed to prepare and bring back to Council for approval the necessary documentation to implement the program as outlined, in the business plan. KEITH L. ILMER, CHIEF OF POLICE Contact person: Lieutenant Jarrod Burguan Phone: 384-5771 Supporting data attached: Yes Ward: All FUNDING REQUIREMENTS: Amount: FY 09/10 – $483,400 GF Savings Council Notes: Finance Agenda Item No.s;�7— 8 * ) 7107 QTY OF SAN BERNARD-WO- REQi,JEST FOR COUNCIL ACTION STAFF REPORT SUBJECT Approval of the Police operated Impound Facility as outlined in the attached business plan. BACKGROUND As pail of the budget savings measures approved in February of 2009, the Council approved the concept and estimated revenues and expenditures associated with a City operated impound facility with a January 1, 2010 implementation date. Since that time, the Police Department, Development Services and Facilities Management have developed the attached business plan to establish a City operated impound facility. City staff have evaluated several similar programs in several other local communities and developed a best practice approach for the City of San Bernardino. Other communities operating a similar program include the City of Colton, City of Claremont, City of Upland, City of Placentia as well as the City of Long Beach. Highlights of this plan include the following: ♦ This plan maintains a relationship with all of the existing tow carvers that are currently on . , the City's tow rotation. These independent tow carriers will continue to perform all of the towing services they currently provide for the City. ♦ The City will acquire property and maintain possession of all "impounded" vehicles. These are vehicles held for a legal reason such as driving with a suspended driver's license or no driver's license or driving a vehicle with registration expired in excess of six months. The tow carriers will maintain possession of all "stored" vehicles. Police Officers will direct the tow carrier to the appropriate facility when towing a vehicle. ♦ A detailed revenue and expense plan, which includes initial expenses, 6 month and full year estimates, and a summary of General Fund costs that will be shifted to the impound facility. ♦ A benefit summary sheet showing the overall financial impacts of the proposal. A comparison of towing, storage, impound and lien-sale operations as they currently exist and under the recommended proposal. During the planning process, staff considered proposals from the Police Department as well as Facilities Management for operational management of the facility. For security reasons as well as operational control and oversight it is recommended that the Police Department manage the facility. A Police Department management plan will include the addition of several new positions to compliment existing staff. City staff also met with the tow carriers during the planning process to solicit their input. City staff first presented this impound facility concept to the Ways and Means Committee on March 4, 2009. At that time the committee asked staff to return with an actual business plan.The Business Plan was presented to the Ways and Means Committee on July 22, 2009 and again on August 5, 2009. The meeting on August 50' also included a presentation from a representative from the City of Colton; following the presentation the proposal was recommended to be forwarded to the full council for consideration. FINANCIAL IMPACT The 2009/2010 Preliminary Budget includes six months of estimated revenue and expenditures for the impound facility. If the Business Plan for the facility is approved, staff will return to Council at a later date requesting approval of the necessary documents to implement the program (property lease,establishment of personnel, and a fee schedule). TTiis proposal has a positive financial impact on the City's General Fund in that many existing expenses can be shifted to the program creating an estimated General Fund savings of$483,400 in FY 09/10 and an estimate of up to $I AM annually thereafter as outlined in Attachment A. RECOMMENDATION 1. That the Police operated impound facility be approved as outlined in the attached business plan (Attachment B);and 2. That staff be directed to prepare and bring back to council for approval the necessary documentation to implement the program as outlined in the Business Plan. ATTACHMENT City Operated Impound Facility Fiscal Year 2009-2010 Based on projected start date 1/1/10 First 6 Mouth Estimated Budget Annual Budge REVENUE 1261 General Impounds @ 5 days 252,200 504,400 882 Lien Sale Vehicles $778 686,200 1,372,400 352 Early Releases 5 days 70,400 140,800 530 30-Day Impound Releases 636,000 1,272,000 2143 Tow Fees $185 396,500 793,000 2143 Lien Fees @$70 150,000 300,000 Total Revenue 2,191,300 4,382,600 NEW EXPENSES Salaries/Benefits Paid During Set-Up 55,300 Salaries/Benefits for Operation 220,200 550,000 General Start Up Fquipment 175,000 Property Lease 81,000 110,000 Office Lease 12,000 24,000 Utilities 13,600 20,000 Network Lines 5,400 15,000 Other Operaung Operating Ex erases 8,000 20,000 Security-Off Hours 66,000 140,000 Set Aside Account 100,000 200,000 3025 Tow Fees $185 559,600 1,119,200 3025 Lien Fees P$70 211,800 500,000 Bad Debt/Uncollectible 200,000 225,000 Total All New Expenses 1,707,900 2,923,200 Current Resources Shifted to Impound Fac Salaries/Benefits Paid During Set-Up 72,700 - Salaries/OTBenefitsJSu li ui for Operations 412,800 1,414,100 City Administrative Costs 194,400 438,300 Loss in Franchise Fee (196,500) (393,000) Total Resources Shifted to Impound Fac 483,400 1,459,400 r.. GRAND TOTAL NEW AND SHIFTED RESOURCES FOR IMPOUND FACILITY 2,191,300 4,382,600 City Operated Impound Facility Fiscal Year 2009-2010 BENEFIT SUMMARY SHEET CURRENT EXISTING OPERATIONS: Tow Franchise Fees Paid to City $ 466,000 City Operated Impound Facility Benefit First 6-months Existing Resources Shifted to Impound Facility Operation $ 679,900 Tow Franchise Fees Lowered for Tow Companies (196,500) Total Net Benefit to City $ 483,400 CCU Operated Impound Facility Benefit 12 - months Existing Resources Shifted to Impound Facility Operation $ 1,852,400 Tow Franchise Fees Lowered for Tow Companies (393,000) Total Net Benefit to City $ 1,459,400 FY 2009-2010 Budget Impact If No City Impound Facility Remove Impound Yard Estimated Revenues $ (2,015,600) Remove Impound Facility Expenditure Budget 1,335,700 Reinstate Full Tow Franchise Fees 196,500 Total Net Negative Impact to City Budget $ (483,400) ATTACHMENT B CITY OF SAN BERNARDINO CITY-OPERATED VEHICLE IMPOUND FACILITY BUSINESS PLAN Introduction/Overview: The Police, Facilities Management and Development Services Departments have worked together to propose a concept that involves operating an impound facility to maintain vehicles that have been impounded by the Police Department. This program would allow the City of San Bernardino to control the operations of the facility and capture revenue generated by the daily storage of vehicles. These vehicles are currently being impounded by the Police Department but stored at one of the six tow rotation carriers contracted with the City. There are a number of communities in Southern California that operate similar programs. The City of Long Beach operates a full-service operation that involves actual towing of vehicles. The cities of Colton, Upland, Claremont and Placentia are a few of the local entities that operate a facility similar to the model that is being proposed here. The City of San Bernardino has a Tow Service Agreement (TSA) with six private tow carriers located within the City to provide towing and impound services for all City departments. Under the current program, the carriers collectively pay a franchise fee that totals just over$38,000 per month. The carriers are on rotation, called to all towing requests by officers (approximately 9,500 calls for service each year). All vehicles that are towed are taken to the private storage yards maintained by each tamer. This proposal will modify the existing process for impounded vehicles but continue to utilize our existing carriers for towing services. Under the plan, tow carriers will deliver "impounded" vehicles to the City- operated facility and maintain possession of all other towed and stored vehicles. The current franchise fee will be adjusted to account for program changes. A location for the police impound facility has been identified at the northwest comer of Hallmark Parkway and Shenandoah Avenue. This property is a paved parking lot that was at one time used for overflow parking at the former Wells Fargo Mortgage Services complex. The location is available for lease or purchase. The property would require some improvements and the addition of a mobile office building for operations. The work required for this location would be minimal, and the program could be operational within a few months of approval by the City Council. This operation would require additional staff. City employees will manage the inventory of vehicles in the possession of the City. A private vendor will be utilized for any vehicles that will be required to be sold, during a weekly auction that will be held at the impound facility. "• City Finance staff have incorporated this plan into the proposed FY 09/10 budges. The proposal has an anticipated start date of January 1, 2010. Revenue figures will vary depending upon the actual implementation date. City staff feels confident that the program could be operational by the proposed start date. v Police Department Manseement: Because of the nature of the operation, this facility will fall within the scope of responsibility of the Traffic Unit. Police Department personnel will manage the day-to-day activities of the facility, maintain inventory control and handle the daily financial matters related to the operation. • This option calls for the addition of a Police Lieutenant to the Police Department staffing levels. The Traffic Unit is currently managed by a Lieutenant that also serves as a District Commander. The Traffic Unit is an ancillary duty to that position. The addition of a lieutenant to specifically manage the Traffic Unit will provide for a more efficient management structure and span of control. This new position will have management responsibility of all traffic operations to include field work, administrative functions, the Red Light Camera program, Special Events,(permits)as well as the tow yard. • The Traffic Unit is currently staffed with two police sergeants and a civilian supervisor. Daily supervision of this facility will fall under the umbrella of their duties and responsibilities. • Administrative duties related to impounded vehicle releases are currently handled by two Senior Office Assistants and a Community Service Officer assigned to the Traffic Unit. Certain vehicle releases are already included in their daily duties. This program will add considerable workload and it will be necessary to add two additional positions under the Senior Office Assistant classification. These additional positions will handle administrative duties related to inventory control and management, as well as duties related to the releases, lien and auction program. • It will be necessary to create a new classification of"Impound Facility Attendant" The budget for this program calls for hiring two employees for this position. These positions will handle the physical workload associated with the facility. Examples of these duties include movement of impounded vehicles, inventory and property control, as well as duties associated with the auction program. • Full time personnel will be at the facility during regular business hours (Monday — Friday). During the off hours, the facility will be staffed with security guards. These guards will handle security at the facility to protect the inventory and allow tow drivers to deliver vehicles during off business hours. The City already has this position classification and a majority of the personnel that fill these positions are part-time, off- duty or retired police officers. Receivine Vehicles: The facility will be a storage lot for vehicles that are"impounded." Impounded vehicles are most often defined as vehicles that are being operated on the road with expired registration in excess of six months, as well as vehicles that are driven by an unlicensed driver. In many cases of a driver being unlicensed or driving on a suspended license,the vehicle is impounded for a 30-day ... period (CVC 14602.6a). These violations account for a majority of impounds. There are other reasons for impound that are less common, such as street racing violations and evidentiary vehicles that would likely be stored at the City facility as well. Other cars that are towed by officers are classified as "stored" vehicles. Examples of these vehicles would be vehicles involved in traffic accidents,-vehicles that are blocking traffic and deemed a traffic hazard and long-term parking violations (excess of 72 hours). The proposed facility will not normally take any"stored"vehicles,which will be handled by the existing tow operators. A police officer that makes a determination that a vehicle is to be towed will request a tow from the list of rotation tow carriers contracted by the City through the TSA. If the vehicle is to be stored by the officer, then the tow carrier driver will deliver the vehicle to the facility maintained by the tow carrier business. If the vehicle is going to be impounded in accordance with the law, then the officer will direct the tow carrier driver to deliver the car to the City's impound facility. During regular business hours, the facility will be staffed with full-time police employees that will accept the vehicle. During the hours that the facility is not staffed with full-time employees, there will be part-time security officers in place that will open the facility to the tow driver in order to deliver the impounded car. The City will establish a protocol for accepting vehicles into the facility's inventory. A computer-based tracking program will be purchased to manage the inventory and every vehicle will be photographed to document the condition of the vehicle when delivered to the facility.The photo documentation system will be used to provide a level of protection for the City against claims of theft and damage. r Vehicle Release Procedures: The Police Department already has a system in place for vehicle release procedures. Persons that have had their car impounded currently go to the Central Police Station to obtain a release. The person is required to pay the administrative release fee; they are provided with the necessary release paperwork, then directed to one of the six tow carrier yards to retrieve their vehicle. The existing system will be slightly modified in that the person arriving at the Police Station will also be required to pay the entire amount due for the release of a vehicle in the City's inventory, including the addition of the towing bill, storage fees and lien fees, if applicable. If the vehicle is located at the City's impound facility, the person will be directed to the facility to retrieve their car. Lien Process: There will be a need to start a lien process on many of the vehicles impounded. This process will typically be started after 72 hours of the impound hold if the owner has not retrieved the vehicle. This process may also be implemented on 30-day hold vehicles. The lien process will be contracted to an outside vendor. The use of an outside vendor will allow the City to free itself of the legal details of the process. The cost associated with the process will be passed along to the vehicle owner when the vehicle is retrieved. Starting the hen process is a legal requirement that will allow the City to dispose of vehicles the owners do not intend to claim from the impound process. The value of the vehicle determines the length of the lien process, which can be between 45 and 90 days. Anybody that has their car impounded will have ample opportunity to retrieve their car before the lien process is completed. Vehicles that are not retrieved by the owner will be sold through an auction process. Auction Process: It is estimated that the City will sell in excess of 1,800 vehicles per year at an impound auction. These are vehicles that have been impounded by officers and never claimed by the owners after the legal hold period has passed. The City will maintain possession of these vehicles throughout the impound period and until the legal time period has elapsed on the lien process. The vendor contracted for the lien process will notify the Police Department that all legal matters are resolved and advise us as to when the vehicle can be sold. The City will conduct a weekly auction at the impound facility site,open to the public. Personnel from the City will conduct the auction. Policies and procedures will be established as to how the auction is to be conducted and who may or may not be prohibited from participating. For example, Police Department personnel will be prohibited from purchasing vehicles that they were involved in impounding. There will also be policies to establish payment and required pick- up times for vehicles purchased. Site Activity: The City's impound facility will have a mobile office building to accommodate the employees assigned to work at the site. This building will house the two Impound Lot Attendants and one Senior Office Assistant on a full-time basis. The building will be electronically connected to Police Department systems for inventory purposes. In terms of public access, this site will only be used for the retrieval of vehicles for persons claiming release of their vehicles, as well as the public auctions. It will not serve as a business office for public contact with the City or the Police Department. However, the site will be equipped so field officers will have a location in the northern area of the City to conduct some limited business(report writing, etc...). Site Location: The Police Department, with the assistance of the City Manager's office, Development Services and the Economic Development Agency, have evaluated several property options within the City of San Bernardino. It was determined after careful analysis that the requirements of the property include the capacity to accommodate 600-700 vehicles, be approximately 5-7 acres in size and have an office facility on-site. A facility with indoor vehicle storage would be desirable. We focused our efforts on areas that were zoned as light industrial, heavy industrial or commercial heavy, as these are the requirements for the Conditional Use Permit that will be required. Several potential locations were evaluated_ The site that was identified as being the most suitable is a paved parking lot on the northwest corner of Hallmark Parkway and Shenandoah Avenue. This site is a 7.3 acre parcel, of which 5.38 acres is an improved parking lot. This site was originally developed as a site for overflow parking for GE Capital and later Wells Fargo Mortgage Services. The site currently has wrought iron fencing along the street frontages and chain link fencing along the interior boundaries. The site has lighting in place and irrigation for existing landscaping. The existing landscaping has not been maintained for quite some time. The fencing and landscaping setbacks on the property will remain. This parcel of land is zoned light industrial, which will satisfy the needs of the Conditional Use Permit. The site will store vehicles for long periods of time but will not have the environmental impact that a regular tow yard will have. The vehicles impounded at the facility will be operable vehicles, with no repair/maintenance activity and leaking fluids will not be an issue. Therefore, site screening and a clarifier will not be required. It is recommended that the City purchase/lease a modular office building for staff use at the facility. All necessary utilities are available on-site. The site will require the removal of some trees, tree wells and landscaped islands. There will also be the need to repair some of the fencing and gates, as well as reestablish some landscaping. The remaining 1.92 acres that is currently undeveloped could potentially be developed to accommodate the future needs/capacity of the facility. The owner of the property is Nowakowski Properties, L.P., which previously leased the lot for the use of GE Capital/Wells Fargo. EDA,Development Services and the Police Department have met with an agent of the property owner and have determined a fair market lease amount for a period of five years, subject to the approval of the Mayor and Common Council. As proposed, the first year's lease would be$108,000,payable in monthly rent of$9,000. In the second year of the lease, the rent would be increased to $120,000 payable at $10,000 per month. For subsequent years, the rent would be increased by 3% each year. The City would have the option to extend the lease for two additional three-year terms, or have the option to purchase the property at the end of the first lease term of five years. No lease agreements have been entered into at this time. Actual negotiations will take place following Council action. Tow Carrier Impact: The City of San Bernardino has a Tow Service Agreement(TSA) with six carriers located in the City. These tamers are: Big Z Towing, Wilson Towing, Danny's Towing, Tri-City Towing, Hayes Towing and City Towing. Under the requirements set forth in the TSA, the tamers respond to all requests for tow services by the Police Department, equating to approximately 9,000 — 10,000 calls for service annually. Of that total, approximately 6,000 vehicles are considered "impounded," meaning that the vehicle owner must satisfy some requirement to obtain a release for their vehicle. For instance, an owner with a vehicle impounded for expired registration in excess of six months will be required to pay the fees due to the Department of Motor Vehicles to bring the registration current and valid before an impound release will be granted. These are among the types of vehicles that will be delivered to the City impound i facility. The remaining calls for service that the carriers receive from the Police Department (3,500+) are stored vehicles or owner request lows. The carriers will maintain possession of these vehicles. Throughout the planning of this proposal, it has been the desire of the Police Department to create a system that will retain the current tow carriers and maintain the existing good working relationships in place. This proposal continues the use of our current carriers to perform all towing operations generated by field and investigative operations of the Police Department. Under the proposed arrangement, carriers will be required to deliver specified vehicles to the Police Department facility (impounded vehicles) and continue to operate in their existing business model with the remainder of the vehicles towed. Revenue currently generated by impounded vehicles collected by the tow carriers will be retained by the City. However, the carrier will continue to realize all revenue from other towed and stored vehicles and will realize the towing fee for all vehicles delivered to the City's facility. Under the guidelines of the TSA, the tow carriers pay the City a franchise fee for performing towing services. Under the current plan that fee is a flat rate of $38,838 per month divided among the six carriers, or $6,473 each. This fee was established using a formula of$48.31 per vehicle that had been towed during a previous year's analysis. With the understanding that the lost revenue from the storage of vehicles impounded by the Police Department will impact the financials of each carrier, it is recommended that the franchise fee be adjusted. Therefore, it is recommended that the current flat rate be amended and a new franchise fee model of 101/c of gross tow revenue generated through City business be adopted. This proposed franchise fee a model will be more labor intensive, but it is believed that it will provide a more equitable business environment for the carriers. This plan would allow the carriers to pay a franchise fee that will be adjusted based upon their gross revenues each month and not be bound to a flat fee_ This aspect of the plan should be evaluated by the City Attorney. One of the tow carriers raised the concern during a recent meeting that "the fee is the fee," indicating that if the City is charging the fee then that is simply the cost of doing business. Legally, the City may charge a franchise fee to recover actual and reasonable costs associated with the program. This fee adjustment is similar to the fee structure adopted by the City of Colton. It is the opinion of the Police Department that the functions of the impound facility will recover some of the costs in the existing program, and therefore, it would be reasonable to alleviate some financial impact against the carriers. The existing TSA has been evaluated by the Police Department and suggested changes that include the above information have been submitted to the City Attorney in order to draft a new agreement. This new agreement will be submitted to the Mayor and Common Council for approval when completed and before operations commence at the City impound facility. Members of the Police Department, Development Services, Facilities Management, City Attorney and City Manager have met with the carriers to discuss their concerns. Collectively, they have stated that this program will have a devastating impact on their financials. They have reported that approximately 45% of their gross revenues come from storage fees and taking this revenue from them will create a financial hardship. Another issue raised was that each carrier is operating under restrictions (property capacity and response time) set in place by the City under the agreements of the TSA. Because they invested in the infrastructure requirements of the TSA, they are unable to reduce their costs. The carriers also reported that the existing economy would not allow them to divest themselves of excess equipment and land. It is difficult for the City to be in a position to know exactly what the actual impact will be to the carriers. The concerns of each carrier have become part of the overall evaluation of this proposal. However, in the research conducted with other communities that have implemented this type of program, it was reported that the primary resistance to change would come from the existing carriers. In many of the cases, similar claims were made by carriers in other communities. We have not found a case of a tow carrier that could not sustain business operations in other communities after this type of operation was implemented. POLICE IMPOUND FACILITY CURRENT STRUCTURE vs. RECOMMENDED STRUCTURE Current Structure Proposed Structure Towing Services . 6 tow carriers • Carriers will continue to • 9,000 tows annually perform all towing services • $165 per tow • Annual revenue- 1,665,000 Storage&Impounds • Carriers store/impound all • All impounds (approximately vehicles 6,000) to city facility • All stored vehicles(approx. 3,000)to carriers. • Annual revenue to carriers $607,500 based on 5-day average storage at$40.50 per day Lien Sales • Carriers lien sale unclaimed • City will assume lien sales of vehicles unclaimed impounds • Majority 30-day impounds • Carriers will continue to lien • Carriers claim most are low sale unclaimed stored value vehicles vehicles. Financial impact is unknown to the carriers. Franchise Fee • $466,000 annual flat fee • Restructured to provide a • Equally divided between reduction to carriers carriers • Adjusted monthly based on • Based on 2007 tow data actual number of tows NOTE: The information above is based on Police Department data and does not include any financial information supplied by tow operators. Tow Service Agreement Changes: In 2005, the existing Tow Service Agreement (TSA)between the City of San Bernardino and the six tow carriers that perform towing operations for the Police Department was approved by the City Council (Resolution 2005-286). This current agreement updated the previous agreement from 1999 (Resolution 99-86). In 2008, the current agreement was amended to include a minor language change that impacted the annual date to review the franchise fee. The amendment also updated the current franchise fee to $38,841 per month divided among the current tow tamers on the Police Department rotation (Resolution 2008-347). In preparation for this City impound facility operation, there was.a full review of the TSA by Police Department staff. Changes have been noted that will accommodate the program and cause for a new agreement to be established. The following is a synopsis of the significant changes that are recommended: Requirement that the towing carrier photograph vehicles when taking possession in order to document the condition of the vehicle. This is a mechanism being put into place to effectively deal with claims of damage and theft. • Language that will allow for impounded vehicles to be delivered to the City's Impound Facility while stored vehicles continue to be maintained by the towing carrier. This Wile is a general guideline as final authority on where a vehicle is to be taken to will rest with the impounding/towing officer. Amending the franchise fee that is currently paid by the carriers. The new language will establish a franchise fee of 10% of the base tow rate generated by City ordered business. This language will include a requirement that each carrier provide an itemized list of each vehicle and applicable charges related to that vehicle for each service call. a Establishing language that will allow the City to collect tow charges for vehicles in their inventory and reimburse the carrier for those charges.