Loading...
HomeMy WebLinkAbout18-Police Department . A ~ .. CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Lee Dean, Chief of Police Subject: Amendment of Resolution 98-195 and Agreement for Tow Services. Dept: Police Date: April 29, 1999 ORIGINAL Synopsis of Previous Council action: On July 6, 1998, the City entered into non-exclusive contracts with tow carriers to provide tow services for the City of San Bernardino. On July 8,1998, the City repealed Resolution 95-241 and adopted Resolution 98-195, establishing standard criteria for companies to provide tow services for the City. Recommended motion: Adopt Resolution. ~/ Signature Contact person: Lieutenant Roger Poyzer Phone: 384-5625 Supporting data attached: Yes Ward: One - Seven FUNDING REQUIREMENTS: Amount $0.00 Source: (Acct. No.) (Acct. Description) Finance Council Notes: Additional annual revenue in the amount of $10,000 anticipated. Agenda Item No. Ilf sf 7/" CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subiect: Repeal Resolution 98-195 and Agreement for Tow Services and adopt new Resolution and Agreement for Tow Services. Back2round: The San Bernardino Police Department currently bas six tow carriers, which operate under a non-exclusive contract with the City. The terms of this contract are specified in Resolution 98- 195 and the Agreement for Tow Services. These documents require that each tow carrier collect and remit to the City on a monthly basis Administrative and Franchise Fees. Repealing Resolution 98-195 and Agreement for Tow Services. and adopting the new Resolution and Agreement for Tow Services. "Will allow the police department to collect the 570 Administrative Fee associated with impounding and storage of vehicles. Currently the tow carriers are responsible for the collection and remittance of those fees to the City on a monthly basis. The proposed Resolution and Agreement for Tow Services will also change the $40 Franchise Fee charged "'per vehicle" to a flat fee of $24,000 per month divided equally among the participating tow carriers. The changes will result in an increase of revenue associated with the Administrative Fees in the amount of$IO,OOO annually. Administrative Fees Section 13 of the Agreement for Tow Services requires that the tow carriers collect a 570 Administrative Fee associated with the storing or impounding of a vehicle and remit that fee to the City on a monthly basis. This method of collection has caused a sixty-day delay in invoicing the appropriate fees. The sixty day delay is necessary to allow the tow company ample time to dispose of the vehicle and collect payment on the vehicle. Each contract tow carrier receives an invoice on or near the 1 st of every month. The police department prepares this invoice after reviewing three sources of information, PO tow logs, tow carrier calling agency reports, and police impound/storage reports. The invoice accounts for vehicles towed in the month occurring 60 days before the invoice date and those held in storage from previous invoices. Once the tow carrier receives the invoice, they review it for accuracy and return it with payment by the 15th of the month. The police department then audits the payment amount and reviews documentation supporting the non-payment of fees on specified vehicles. Using historical data, we are collecting approximately 53% of the total invoice amount~. The collecting percentage can be attributed to several factors. ' . Vehicles held for extended time periods in excess of the s~~. ) lftA (f .J-(I '7 . Vehicles left at the tow yard after the registered owner refuses to pay storage fee amount, causing a lien sale of the vehicle. . Most often, a lien sold vehicle does not generate sufficient revenue, after tow and storage expenses are paid, to cover the $ 70 administrative fee. Tow carriers include the Administrative Fee in the tow bill collected from the vehicle owner prior to the release of the vehicle. The Administrative Fee is added to the tow and storage fees, which can result in a substantial amount of money. In the event of a 30-day impound the total tow bill often exceeds the value of the vehicle. In many of these cases the registered owner abandons the vehicle forcing the tow carrier to sell the vehicle at a lien sale. Most lien sales do not generate enough revenue to pay the tow and storage fees. Tow carriers are not required to pay the Administrative Fee unless there are funds available after the tow and storage fees have been satisfied. Administrative Fees will be collected at the police department, 8-5, seven days per week. Collection of Administrative Fees at the police department will not reduce the tow carrier's revenue. The streamlined collection of Administrative Fees will increase city revenue by an estimated $10,000. Having the police department assume responsibility for the collection of Administrative Fees will also provide necessary controls on the collection, verification, depositing, and reporting of collected fees. Deposit of Administrative Fees will be done on a daily basis consistent with the Alarm Compliance Unit deposit procedure. The proposed Resolution and Agreement for Tow Services are included on the attached documents. Franchise Fees Section 14 of The Agreement for Tow Services requires that the tow carriers be charged a Franchise Fee associated with the storing or impounding of a vehicle and remit that fee to the City on a monthly basis. The current Franchise Fee is $40 per vehicle. The Franchise Fee is not assessed on abandoned vehicles or vehicles which the police department issues a '~unk slip". Franchise Fees are also billed sixty days after the vehicle is towed to allow sufficient time for the tow carriers to dispose of the vehicle. The police department proposes replacing the per vehicle Franchise Fee with a monthly Franchise Fee. The fee will be based on the projected number of tows (developed from the previous year statistics) and the projected revenue based on the $40 per vehicle. Using historical data, September1998 to March 1999, approximately 4,284 vehicles were towed. This correlates to approximately 612 vehicles per month, (4,284 vehicles / 7 months = 612 vehicles per month). The averaged Franchise Fee, based on the $40 per vehicle is approximately $24,000 per month. This fee will be divided equally among each of the participating tow carriers, in the rotation during the month. Presently there are six tow carriers in the rotation, the per carrier monthly Franchise Fee will be $4,000. $4,000 per month is approximately what the tow carriers are presently paying. If for some reason, there is a change in the number of tow carriers, the $24,000 2 will be divided equally among the new number of tow carriers, resulting in the same projected monthly revenue. Averaging the Franchise Fee amount will reduce the number of hours the police department expends in preparing and auditing of monthly invoices. This will also reduce the number of hours the tow carrier's staff spends on the auditing of our invoice, preparation of payment, and justification for non-payment. Averaging the Franchise Fee is beneficial to the City and tow carriers. It allows for a more precise projection of revenues for the City and budgeting of expenses for the tow carriers. The average fee will be invoiced and collected at the end of each month with the tow carriers mailing the payment to the police department. The funds will be recorded and deposited in a manner consistent with our current procedure. A meeting with the six tow companies, presently in the tow rotation, was held on April 27, 1999. During the meeting the redirection of the collection of Administrative Fees and the $24,000 monthly Franchise Fee concept were discussed. All the companies strongly supported the changes, recalling they had made a similar proposal to the city last year when the Franchise Fee was initiated. Financial Impact: A projected $10,000 increase in Administrative Fees collected. Recommendations: . Repeal Resolution 98-195 3 " Proposed Chanl!es: Resolution 98-195: Section 2, Item 1 Subsection P. Obtain and maintain public liability and property damage insurance in the amount of $1 million. and naming the City of San Bernardino as an additional insured. Section 2, Item 1 Subsection P (a). Each tow carrier shall maintain insurance pursuant to the requirements of the most recent California Highway Patrol tow service agreement. The City of San Bernardino shall be named as an additional insured on all policies including the workers compensation policies. Tow carriers shall provide an endorsement to each policy showing the City as an additional insured. 7. Any agreement entered into pursuant to the terms of this resolution may be terminated by the City upon thirty (30) days written notice providing the right to a oretermination hearing before the Police Commission. 7 (a). Any agreement entered into pursuant to the terms of this resolution may be terminated by either party, without prejudice, upon thirty (30) days written notice to the other party. 8. Monthlv Tow Carriers shall submit a list of all vehicles towed the previous month, including license plate numbers and VIN. 8 (a). Each month, Tow Carriers shall submit a list of all vehicles towed the previous month, including license plate numbers and vehicle identification numbers. II. In the event that a towed vehicle is forfeited by the owner in accordance with 14607.6 of the California Vehicle Code, the proceeds of the sale of the vehicle shall be distributed pursuant to said section of said Code. 11 (a). In the event that a towed vehicle is forfeited by the owner in accordance with Section 14607.6 of the California Vehicle Code, the proceeds of the sale of the vehicle shall be distributed pursuant to said section of said Code. 12. All towing carriers shall be subiect to a vehicle towing administrative fee set bv resolution and franchise fee set forth in said agreement. 4 12(a) The tow carriers shall be charged a franchise fee set forth in the Agreement for Tow Services. The police department shall determine the average monthly franchise fees collected in the prior fiscal year. The tow carriers on the police department rotation list will each pay an equal share of the franchise fees on a monthly basis. This franchise fee shall be paid from the tow carrier's profits and shall not be passed on to the vehicle owners. Should the total number of tow carriers on the rotation list change, the franchise fee will be adjusted accordingly among the tow carriers. Ten days notice shall be given to the participating tow carriers of any change in the amount to be paid to the City. 13. All towing carriers shall also comply with the minimal standards set forth in the California Highway Patrol tow service agreement as such agreement shall be amended from time to time. Where provisions of this resolution and the CHP tow service agreement shall be found to be in conflict, the provisions of this resolution shall prevail. 13 (a). All towing carriers shall also comply with the most recent California Highway Patrol tow service agreement as such agreement shall be amended from time to time. Where provisions of this resolution and the CHP tow service agreement shall be found to be in conflict, the provisions of this resolution shall prevail. 14 {Added} The administrative fee set by resolution of the common council will be collected by the San Bernardino Police Department. Al!reement for Tow Services Section 2, Item 1 Subsection P. Obtain and maintain oublic liability and orooertv damage insurance in the amount of $1 million. and naming the City of San Bernardino as an additional insured. The carrier shall orovide a Certificate of Insurance. naming the City as an additional insured annual Iv at a date to be determined bv the City's Risk Management Coordinator. 5 Section 2, Item 1 Subsection P (a). Each tow carrier shall maintain insurance pursuant to the requirements of the most recent California Highway Patrol tow service agreement. The City of San Bernardino shall be named as an additional insured on all policies including the workers compensation policies. Tow carriers shall provide an endorsement to each policy showing the City as an additional insured. 5. This Agreement mav be terminated bv either Partv for anv reason upon the giving of thirty (30) davs written notice. Should City issue such termination notice. Towing Carrier will be afforded a pretermination hearing before the Police Commission if so requested. 5 (a). Any agreement entered into pursuant to the terms of this resolution may be terminated by either party, without prejudice, upon thirty (30) days written notice to the other party. 7. Monthlv. Towing Carrier shall submit to the City a list of all vehicles towed the previous month, including license plate number and VIN. 7 (a). Each month, Tow Carriers shall submit a list of all vehicles towed the previous month, including license plate numbers and vehicle identification numbers. 10. In the event that a towed vehicle is forfeited by the owner in accordance with Sl4607 of the California Vehicle Code, the proceeds of the sale of the vehicle shall be distributed pursuant to S14607.6 of said Code. 10 (a). In the event that a towed vehicle is forfeited by the owner in accordance with Section 14607 of the California Vehicle Code, the proceeds of the sale of the vehicle shall be distributed pursuant to Section 14607.6 of said Code. 13. Towing Carrier shall charge and remit to City on a monthlv basis a vehicle towing administrative fee per such vehicle towed which shall be set bv resolution bv the Mavor and Common Council. Such fee shall not be charged for those individuals who have had their vehicles towed. stored or impounded as a result of being a victim of a crime (car theft. etc) or those vehicles belonging to anv public agencv. 6 13 (a). The City will collect a vehicle administrative fee per such vehicle towed, which shall be set by resolution by the Mayor and Common Council. Such fee shall not be charged for those individuals who have had their vehicles towed, stored or impounded as a result of being a victim of a crime (car theft, etc) or those vehicles belonging to any public agency. 14. Towing carrier shall be charged and remit to City on a monthly basis a $40.00 per vehicle towed franchise fee. Such vehicle towed franchise fee shall be paid bv towing carrier. out of its profits. and shall not be passed on to the vehicle owner. Such vehicle towed franchise fee shall not be charged bv nor remitted to the City on anv such towed vehicle when there is issued on such vehicle bv the City of San Bernardino Police Department a Public Agencv Authorization To Dispose Of A Vehicle To A Scrap Iron Processor Or Dismantler. REG 462 (REV.2/92t pursuant to California Vehicle Code &22851.2 or 22851.3. l4(a) The averaged franchise fee will equal $24,000 per month, which will be divided equally among each of the participating tow carriers. Such franchise fee shall be paid by the towing carrier, out of its profits, and shall not be passed on to the vehicle owner. Should the total number of tow carriers on the rotation list change, the franchise fee will be adjusted accordingly among the tow carriers. Ten days notice shall be given to the participating tow carriers of any change in the amount to be paid to the City. 15. Towing Carrier shall also comply with the minimal standards set forth in the California Highway Patrol tow service agreement as such agreement shall be amended from time to time. Where provisions of this Agreement and the CHP tow service agreement shall be found to be in conflict, the provisions of this Agreement shall prevail. 15 (a). Towing Carrier shall also comply with the most recent California Highway Patrol tow service agreement. Where provisions of this Agreement and the CHP tow service agreement shall be found to be in conflict, the provisions of this Agreement shall prevail. 7 " tC'r'1 . 1 RESOLUTION NO. 1999-86 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO REPEALING RESOLUTION NO. 98-195 AND ESTABLISHING STANDARD CRITERIA FOR COMPANIES TO PROVIDE TOW SERVICES FOR THE CITY OF SAN BERNARDINO. 3 4 5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. Resolution No. 98-195 establishing standard criteria for companies to 7 8 provide tow services is hereby repealed. 9 SECTION 2. Companies providing tow services for the City of San Bernardino shall 10 first enter into an agreement with the City of San Bernardino granting a non-exclusive franchise 11 agreement, which shall include, but shall not be limited, to the following terms and conditions: 12 1. Every towing carrier shall: 13 A. Have a minimum storage space for 200 vehicles with a minimum of 14 twelve inside spaces; outside storage lots must be adequately lighted. 15 B. Have an attendant on call twenty-four (24) hours a day, seven days a 16 week at place of business. 17 C. Have no more than two telephone numbers listed with any City 18 department. 19 D. Store towed vehicles in a safe and protected space where the vehicles 20 21 and their contents will not be accessible to thieves nor be damaged by activity in the carrier 22 establishment or from the elements or by vandals; no vehicles shall be left parked or stored on 23 the public streets at anytime; in no event shall the city be liable for any theft, vandalism or 24 damage occurring to any such vehicle or its contents. 25 E. Post a tag on the windshield on all cars ordered impounded by a City department. 1 . ~999-86 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO REPEALING RESOLUTION NO. 98-195 AND ESTABLISmNG STANDARD CRITERIA FOR COMPANIES TO PROVIDE TOW SERVICES FOR THE CITY OF SAN BERNARDINO. 2 3 4 F. Collect all towing or hauling and storage charges on each vehicle from 5 the owner; in no event shall the city be liable for any such charge. 6 G. Whenever a vehicle has been involved in an accident or a traffic 7 violation, and the owner or someone delegated by him is present and is capable of removing the 8 vehicle from the street with reasonable dispatch, and the vehicle is not ne<;ded for criminal 9 evidence, City and/or towing carrier shall permit the owner or his delegate to remove the 10 vehicle or call a towing company of his or her own choice to remove the same; provided, 11 however, that if the street cannot be cleared for safe public use with reasonable dispatch by the 12 above method, and in all situations other than above set forth, a towing carrier from the top of 13 14 the rotation list will be called by the City. H. Furnish each owner with a fully itemized billing. 15 16 I. Immediately after each towing operation, make a towing slip with the 17 contents of each vehicle placed in his or her care itemized thereon as verified by the officer 18 ordering the same and make the slip available to the City on request. 19 J. Release no impounded vehicle without first having obtained a release 20 from the City to do so. 21 K. Agree to a rotation system established by the City. 22 1. Comply with all rules, regulations and laws of the State of California, 23 County of San Bernardino and City of San Bernardino. 24 M. Have adequate equipment to handle calls from the city, impounds and 25 storage of motor vehicles. 2 . . i999-86 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO REPEALING RESOLUTION NO. 98-195 AND ESTABUSHING STANDARD CRITERIA FOR COMPANIES TO PROVIDE TOW SERVICES FOR THE CITY OF SAN BERNARDINO. 2 3 4 N. The carrier shall operate from a location within the City of San 5 Bernardino, and all of the facilities necessary to comply with the provisions of this resolution 6 shall be located within the City of San Bernardino. 7 o. Carry a broom, trash can and sand and shall clean and remove broken 8 glass, spilled oil, or gasoline from the area before departing, unless directed to not do so by 9 police officers and/or designated City employees at the scene. 10 P. Each tow carrier shall maintain insurance pursuant to the requirements of 11 the most recent California Highway Patrol tow service agreement. The City of San Bernardino 12 shall be named as an additional insured on all policies including the workers compensation 13 14 policies. Tow carriers shall provide an endorsement to each policy showing the City as an additional insured. 15 16 Q. Tow vehicles shall be rated at a minimum of 14000 GVW. 17 2. The City shall establish a per call rotation system of qualified towing carriers 18 who have entered into agreements with the City for the performance of towing services in 19 response to calls from the City. All departments of the City shall comply with the rotation 20 system. 21 3. Every towing carrier shall comply with and qualify under all the requirements 22 set forth in this resolution as a condition precedent to being eligible to be placed on the rotation 23 list. 24 4. Each towing carrier shall give or cause to be given written notice to the 25 registered and legal owners of each vehicle which is towed in conformity with the authorization and requirements of this resolution concerning the fact of such towing, the place at which such 3 . . 1999-86 1 . RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO REPEALING RESOLUTION NO. 98-195 AND ESTABLlSIDNG 2 STANDARD CRITERIA FOR COMPANIES TO PROVIDE TOW SERVICES FOR THE CITY OF SAN BERNARDINO. 3 4 vehicle is stored and the imposition of charges for towing, storage and related services 5 whenever the towing carrier knows or is able to ascertain from the registration records in the 6 vehicle or from the registration records of the Department of Motor Vehicles the name and 7 8 address of the registered and legal owners. The notice shall be given not more than ten (10) 9 days from the date of the towing of the vehicle by the towing carrier. 10 5. Every tow truck which is subject to the provisions of this resolution and which 11 by agreement responds to calls for service by the City, shall be clearly marked on both sides of 12 the cab with the name and telephone number of the towing carrier which operates the truck. 13 6. City shall enter into agreements with tow carriers not to exceed one company 14 per 35,000 residents of the City. 15 7. Any agreement entered into pursuant to the terms of this resolution may be 16 terminated by either party, without prejudice, upon thirty (30) days written notice to the other 17 party. 18 8. Each month, Tow Carriers shall submit a list of all vehicles towed the previous 19 month, including license plate numbers and vehicle identification numbers. 20 21 9. Tow Carriers shall charge for services on calls by the City in an amount not to 22 exceed ten dollars ($10) above the hourly rate set forth by the California Highway Patrol. The 23 minimum charge for services shall not exceed one (I) hour. 24 10. Standby time for tow trucks will begin one (I) hour after receipt of calls from 25 the City and is defined to mean the time consumed after the first hour in necessary preparations in order to tow the disabled vehicle and in cleaning up the inunediate surrounding area. 4 . , . 1999-86 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO REPEALING RESOLUTION NO. 98-195 AND ESTABLISHING STANDARD CRITERIA FOR COMPANIES TO PROVIDE TOW SERVICES FOR THE CITY OF SAN BERNARDINO. 2 3 4 11. In the event that a towed vehicle is forfeited by the owner in accordance with 5 Section 14607.6 of the California Vehicle Code, the proceeds of the sale of the vehicle shall be 6 distributed pursuant to said section of said Code. 7 8 12. The tow carriers shall be charged a franchise fee set forth in the Agreement for 9 Tow Services. The police department shall determine the average monthly franchise fees 10 collected in the prior fiscal year. The tow carriers on the police department rotation list will 11 each pay an equal share of the franchise fees on a monthly basis. This franchise fee shall be 12 paid from the tow carrier's profits and shall not be passed on to the vehicle owners. Should the 13 total number of tow carriers on the rotation list change, the franchise fee will be adjusted 14 accordingly among the tow carriers. Ten days notice shall be given to the participating tow 15 carriers of any change in the amount to be paid to the City. 16 13. All towing carriers shall also comply with the most recent California Highway 17 Patrol tow service agreement as such agreement shall be amended from time to time. Where 18 provisions of this resolution and the CHP tow service agreement shall be found to be in 19 conflict, the provisions of this resolution shall prevail. 20 21 14. The administrative fee set by resolution of the common council will be collected 22 by the San Bernardino Police Department. 23 24 25 5 . 1999-Bti 1 RESOLUTION TO REPEAL RESOLUTION 98-195 AND AGREEMENT FOR TOW SERVICES. I BBREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Co Oil Council of the City of San BerDa.rdino at a joint regular meeting thereof, held on the 17th day of Hay, 1999, by the following vote, twit: COUNCIL MEMBERS: A YES NAYS ABSENT ABSTAIN 2 3 4 5 6 7 8 9 10 11 12 13 14 15 The foregoing resolution is hereby approved this.70huiay ofllaY / .1999. 16 17 18 19 20 21 Approved as to Form and legal content: 22 23 24 JAMES F. PENMAN City Attorney 25 6 ,()~