HomeMy WebLinkAboutIR 7773 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7-n-3
&-PAT November 16, 1993
To the Mayor and Members of the City Council
Subject: FEASIBILITY OF WAIVING WRECKER FEES FOR CRIME VICTIMS
1873
The Fort Worth City Council has requested that the feasibility of waiving the wrecker and
associated impound and storage fees for crime victims be examined.
Summary
Currently, the Fort Worth Police Department impounds 16,000-18,000 vehicles per year. This
impounding is accomplished by towing vehicles to the Auto Pound where they are held until they
are claimed or auctioned. The towing is contracted to local wrecker services who are paid by the
Auto Pound. Approximately 55% of those vehicles towed by the Fort Worth Police Department
can be classified as belonging to victims(owners of stolen vehicles, drivers in accidents taken to
hospitals, etc.,). These vehicles cost an average of$45.00 to $80.00 to tow to the Auto Pound,
where an impound fee of$10.00 is charged for each vehicle. The Auto Pound then charges
$10.00 per day for the first ten days of storage(as required by City Ordinance 34-196), and
$15.00 per day thereafter. The maximum allowable charge per day, as mandated by State law, is
$15.00 per day.
A notification fee of up to $25.00 is authorized by State law to be charged (The Vehicle Storage
Facility Act), but the City of Fort Worth does not charge this fee.
The vehicles that are towed to the Pound usually are divided into two categories: those that are
claimed, and those that are converted to City property and later auctioned. Of the cars that are
claimed, they stay in the Auto Pound an average of 1-4 days before being released to their
owners. Over 35% of the towed stolen vehicles are claimed and released within one day.
Normally, if the owners of the automobiles have comprehensive auto insurance, all costs
associated with the towed vehicle are reimbursed.
Current Fees Charged
If all the vehicles towed were assumed to cost the minimum, the wrecker fees charged for towing
victims' vehicles amounts to over$400,000 yearly. The impound fees for these vehicles amount to
over $90,000, and another$113,000 is charged in storage fees.
If all fees for victim vehicles were waived, the Auto Pound's budget would need to be increased
by at least$600,000 to maintain current services. A more realistic estimate would be$750,000
because approximately 20% of all tows result in extra charges, and the wrecker fees above do not
include extra charge fees(for dollies, winching, etc.,).
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7773
a4SE, November 16, 1993
a wnr To the Mayor and Members of the City Council Page 2 of 2
NX Subject:
) FEASIBILITY OF WAIVING WRECKER FEES FOR CRIME VICTIMS
van
PAGE Two
Alternative Revenue Sources
The only fee that could be charged that is not currently being charged is the$25.00 notification
fee authorized by State law. If all vehicles were charged this fee, it would produce approximately
$160,000 in revenue per year.
The only fee that could be raised is the$10.00 per day storage fee charged for storing vehicles
belonging to those persons other than crime victims. This fee could be raised to $15.00 per day
(State allowed maximum)by revising City Code 34-196. This would generate approximately
$47,000 dollars in additional revenue per year.
Conclusions
The City of Fort Worth could waive the wrecker, impound, and storage fees for crime victims
who have their car towed by the Fort Worth Police Department. This waiver would cost between
$600,000 and $750,000 per year. Additional sources of revenue could be generated within the
Auto Pound by charging a notification fee for all towed vehicles($160,000), and by raising the
eL daily storage fees for impounded vehicles not belonging to crime victims($47,000).
If any additional information is desired, please contact Assistant City Manager Libby Watson at
871-6140.
'Jo Terr,
City Manager
LISSUED BY THE CITY MANAGER FORT WORTH,TEXAS