HomeMy WebLinkAboutIR 8542 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8542
To the Mayor and Members of the City Council November 11, 2003
Page I of 2
*ex SUBJECT: Police Department Contract Wrecker Fees
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In September 2002,the Police Department held a meeting at the request of contract wrecker companies to discuss potential fee
increases.The contracts that the wrecker companies were operating under at that time were written in 1997 and no fee increases
had occurred since.The fee schedule was as follows:
Standard Wrecker $ 65
Car Carrier 85
Tandem Wrecker 125
The Police Department staff conducted a benchmarking survey of cities in the North Texas area in 2002. Although most cities
had similar fee structure as that of the City of Fort Worth, most fee charges in each of the categories were higher in other cities
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and almost every city surveyed advised that they were researching increasing the fees for their contracted wrecker services.
City Standard Car Carrier Tandem Comment
Fort Worth $65 $ 85 $125 FEE STRUCTURE PRIOR TO APRIL 2003
Burleson $ 85 85 $125 No proposed changes
Dallas $95 $150 $350 Tandem fee for first 3 hours
OFF iulington $100 $135 $175 Plus mileage
rst $95 $123 $175
Euless $95 $123 $175 Fees increased in 2002
N.Richland Hills $ 85 $115 $175 Fee increases under consideration
Grand Prairie $65 $65 $105 Contract currently being bid
On January 6,2003,wrecker company representatives met with Chief Mendoza and recommended the following:
Standard Wrecker $110 +69.2%increase
Car Carrier $135 +58.8%increase
Tandem Wrecker $200 +60.0%increase
This proposal was presented to the City Council Public Safety Committee on January 21,2003.The Public Safety Committee
requested further review by staff.On March 12,2003,a meeting was held with wrecker companies and Police Department staff
in an effort to come to a compromise. All parties involved agreed to present the following fee structure to the Public Safety
Committee,along with the recommendation that a clause be placed in the contracts that would allow for yearly review of fees,
beginning in September 2003:
Standard Wrecker $100 +53.8%increase
Car Carrier $125 +47.0%increase
Tandem Wrecker $180 +44.0%increase
The Public Safety Committee recommended approval of the above fees during the March 25,2003 meeting. The Public Safety
Committee also instructed the Internal Audit Department to conduct the annual fee reviews. New contracts for the wrecker
companies were presented and approved on April 8,2003 by the City Council for a period of six months pending the first
Internal Audit Department review.
rol —Wrecker companies met with Internal Audit Department staff on July 31,2003 and presented documentation of operational cost
increases. The Audit Department staff has conducted its review and is recommending a twenty percent fee increase. Benchmark
cities were again contacted and the following information is provided:
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8542
To the Mayor and Members of the City Council November 11, 2003
9- -r Page 2 of 2
SUBJECT: Police Department Contract Wrecker Fees
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City Standard Car Carrier Tandem Comment
Fort Worth $100 $125 $180 CURRENT FEE STRUCTURE AS OF APRIL 2003
Fort Worth $135 $135 $216 PROPOSED COMBINED FEE STRUCTURE
Burleson $ 85 $ 85 $125
Dallas $95 $150 $350 Tandem fee for first 3 hours
Arlington $115 $1 15 $175 Tandem fee 2 hour minimum
Hurst $122.50 $122.50 $175
Euless $122.50 $122.50 $175
N.Richland Hills $ 85 $ 115 $175
Grand Prairie $65 $65 $105
On October 28h, Police Department staff made a presentation to the Public Safety Committee recommending the following
increases:
Standard Wrecker $120 20% increase
Car Carrier $150 20% increase
Tandem Wrecker $216 20% increase
Also recommended during the presentation was the proposal to combine the standard wrecker and the car carrier into one fee of
$135. This fee was determined by averaging the cost of a Standard Wrecker and a Car Carrier. The use of car carriers has
increased over the years by the wrecker industry due to the ease of use, and the least probability of damage to the vehicle being
towed. In doing so, the fee for a standard wrecker would increase by 35%over present rates,but the fee for a car carrier would
increase by only 8%.
At the October 28ffi meeting of the Public Safety Committee,the Committee requested information regarding caps on wrecker
fees reimbursed by insurance companies. The Risk Management Division of the Finance Department found that although there
are many variables regarding policies,the normal range for reimbursement payment for towing in personal insurance policies is
$40 to$12.0.
On October 28h,the Public Safety Committee instructed staff to move the discussion of increases in wrecker fees to the City
Council without a recommendation. This informal report will serve as background information on the proposed fee increases.
Subject to Council direction to the contrary,an M&C will be presented to the City Council to implement these recommended
fees on November 18,2003.
Please feel free to call Sheri Sanderson in the Police Department at 877-8410 if you have any further questions.
a W ackso
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH„ TEXAS