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AGENDA ITEM REVIEW FORM |
6.F.
Regular City Council Meeting
- Meeting Date:
- 07/24/2024
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Resolution
Resolution
ITEM:
Discussion and possible action on any and all matters regarding Resolution No. 2330. A resolution of the Mayor and City Council of the City of San Luis, Arizona, setting towing and storage fees pursuant to San Luis City Code Section 10.25.030(H): repealing any conflicting provisions; and providing for severability. (Nigel Reynoso, Chief of Police)
SUMMARY:
State Statute
Arizona Revised Statute ("A.R.S.") § 9-499.05 allows cities to "regulate the maximum rate and charge for towing, transporting or impounding a motor vehicle from private property without the permission of the owner or operator of the vehicle by any private towing carriers doing business within its boundaries. A private towing carrier is subject to the maximum rate and charge regulation prescribed by the city or town for all such towing, transporting, or impounding services if the vehicle being towed or transported is towed from private property located within the boundaries of the city or town."
City Code
San City Code § 10.25.030(H) implements the state statute and provides that the City Council may set the maximum towing and storage fees by resolution.
Prior Resolutions setting the towing fees
Resolution No. 817 set the towing fees on February 11, 2009, at $75.00.
Resolution No. 2229 revised the fees to $90 for towing and $35 per 24 hours of storage on August 24, 2022. At that time, the market conditions in the area were $150 per tow.
Current Market Conditions
The current towing fee of $90 is significantly below the current market condition in Yuma County, Arizona. The towing businesses in San Luis have expressed concern that they cannot sustain their business at the $90 rate. This has caused (1) a scarcity of towing services in San Luis and (2) consumers paying high rates to bring services from outside the City of San Luis. The San Luis Police Department, as one of the consumers of towing services has had to pay $220.00 to bring towing service from outside of San Luis.
The staff researched the rates.
Resolution 2330 sets the rates at:
$165.00 per vehicle per tow
$ 5.00 per mile to transport a vehicle to or from outside the San Luis city limits.
$ 40.00 storage for 24 hours per vehicle.
$30.00 after-hours service fee. After-hours is defined as after 5:00 p.m. Monday through Friday, all day Saturday and Sunday, and Arizona state holidays as listed in A.R.S. § 1-301.
Arizona Revised Statute ("A.R.S.") § 9-499.05 allows cities to "regulate the maximum rate and charge for towing, transporting or impounding a motor vehicle from private property without the permission of the owner or operator of the vehicle by any private towing carriers doing business within its boundaries. A private towing carrier is subject to the maximum rate and charge regulation prescribed by the city or town for all such towing, transporting, or impounding services if the vehicle being towed or transported is towed from private property located within the boundaries of the city or town."
City Code
San City Code § 10.25.030(H) implements the state statute and provides that the City Council may set the maximum towing and storage fees by resolution.
Prior Resolutions setting the towing fees
Resolution No. 817 set the towing fees on February 11, 2009, at $75.00.
Resolution No. 2229 revised the fees to $90 for towing and $35 per 24 hours of storage on August 24, 2022. At that time, the market conditions in the area were $150 per tow.
Current Market Conditions
The current towing fee of $90 is significantly below the current market condition in Yuma County, Arizona. The towing businesses in San Luis have expressed concern that they cannot sustain their business at the $90 rate. This has caused (1) a scarcity of towing services in San Luis and (2) consumers paying high rates to bring services from outside the City of San Luis. The San Luis Police Department, as one of the consumers of towing services has had to pay $220.00 to bring towing service from outside of San Luis.
The staff researched the rates.
- City of Yuma: Averages between $145-$305 (depending upon the vehicle),
- City of Somerton: $150 for administrative fee, plus 4125 towing fee, and
- Yuma County : $150, which covers administrative fees and towing fee.
Resolution 2330 sets the rates at:
$165.00 per vehicle per tow
$ 5.00 per mile to transport a vehicle to or from outside the San Luis city limits.
$ 40.00 storage for 24 hours per vehicle.
$30.00 after-hours service fee. After-hours is defined as after 5:00 p.m. Monday through Friday, all day Saturday and Sunday, and Arizona state holidays as listed in A.R.S. § 1-301.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE AND ADOPT RESOLUTION NO. 2330 AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- Please see the Fiscal Impact Statement
- BUDGETED AMOUNT:
- Please see the Fiscal Impact Statement
- AVAILABLE AMOUNT TO TRANSFER:
- Please see the Fiscal Impact Statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Please see the Fiscal Impact Statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
Local towing services are refusing to provide service due to the low fees allowed. If the towing fees are brought in line with local market conditions, the Police Department's costs for these fees are expected to decrease since they will be able to stop paying the cost to mobilize services from outside the city.