01-05-1999 - Proposed Increase in the Vehicle Release FeeCity of West Covina
i Memorandum
AGENDA
ITEM NO. G-1
DATE JANUARY 5, 1999
TO: CITY MANAGER AND CITY COUNCIL
�`�1 ®PRINTED ON RECYCLED PAPER
FROM: FRANK J. WILLS, CHIEF OF POLICEI"
SUBJECT: PROPOSED INCREASE IN THE VEHICLE RELEASE FEE
SUMMARY: The Police Department is recommending that the fee charged for the release
of impounded vehicles be increased from $55.00 to $80.00. This increase will help offset the
cost of police operations that are related to the towing of vehicles.
BACKGROUND: In 1994, the Management Services Institute (MSI) completed a
comprehensive study of all City fees. In that study, MSI staff interviewed relevant personnel
to determine how much time they spent working on each fee activity (directly and indirectly).
They combined this information with salary and benefit rates, overhead, fixed asset charges
and other costs to determine the unit cost for each fee activity that the City performs. From
that study, the vehicle release fee was set at $55.00.
Vehicle release fee revenue for the first eight months of 1998 amounts to $40,150. Total
1997 revenue was $67,000 and 1996 revenue was $82,220. The Police Department's costs
for vehicle tow operations amounts to about $170,000 annually. Many citizens are not
charged a release fee (for example, victims of a crime) and some minor costs are not factored
in. We cannot charge citizens more than what it costs us to impound a single vehicle (i.e.,
the "unit cost"). Consequently, vehicle release fee revenue will never fully cover the cost of
Police Department Tow operations.
The Police Department has carefully reviewed the vehicle release fee to insure that we were
recovering as much of our costs as possible.
The Police Department replicated exactly the methodology used by MSI in 1994 to arrive at
the unit cost of a vehicle release. Because of the increase in personnel salary and benefits in
the past four years, this would have permitted us to increase the release fee by nearly $5.00
per car. However, in studying the formula used by MSI to arrive at these costs,
Administrative Aide Alex Houston discovered that the time used by Police Officers in the
field to impound a car was not included in the unit cost. The City is justified in including
these costs. When these costs are added'in, the unit cost of a vehicle impound is $79.06.
This would justify a vehicle release fee of $80.00.
Finance Director Margaret Tucker has examined Mr. Houston's methodology and concurs
with the figures.
In order to obtain a "second opinion" on the accuracy of MSI's methodology, Police
Department staff spent considerable time computing the unit cost of a vehicle impound
utilizing a different system. They were not provided and did not receive information on the
formula used by MSI or the unit cost as determined by Mr. Houston. - Police Department
staff determined the unit cost to be $82.76. The two figures are very close.
The Police Department feels that a vehicle release fee based upon the methodology used by
MSI, but including police officer time spent in the field, is more appropriate and defensible.
The methodology used by Management Services Institute and Mr. Houston is attached.
The Police Department conducted a survey of vehicle release fees charged by other San
Gabriel Valley Police Departments. The average cost is $53.00. A copy of the survey is
attached. Many of these Departments have not increased their fees in many years.
FINANCIAL IMPACT: By increasing the vehicle release fee to $80.00, the City will
recover a larger percentage of the costs for Police Department towing operations. An
.increase in City revenue of about $40,000 annually should be expected.
RECOMMENDATION: It is recommended that the City Council:
I. Authorize the increase of the vehicle release fee to $80.00.
Concur with financial methodology used to arrive at revised vehicle release fee:
Margark Tucker
Finance Director
Attach. .
PD PTRL CITY OF WEST COVINA COST CENTER DETAIL T-083
DEPT: POLICE
DIV: PATROL
T-083 VEHICLE RELEASE
------------------------
DESCRIPTION PCT. HRS/UNIT DOLLARS
----.------------------------ — — — — — — — — — — — — — — — — — — — —
COMMANDER —INDIRECT ($96, 096)1 0. 02 %2 $193
LIEUTENANT (AVG) ($80,544) 0.03$ $24
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TOTAL SALARIES OF SWORN PERSONNEL $8727
TOTAL BENEFITS OF SWORN PERSONNEL (55$) $480"
C.S.O. (AVG) (HOURLY = $20. 84) 9 1. 0010 $1, 042"
SECRETARY —INDIRECT ($36, 060) 0. 02 a $7
REC. CLERK IL —INDIRECT ($30, 756) 0. 02$ $6
RECORDS SUPERVISOR ($54,348) 0.070 $38'
REC. CLERK I (HOURLY = $17. 63) 0.25 $220
TOTAL SALARIES OF NON —SWORN PERSONNEL $1,313
TOTAL BENEFITS OF NON —SWORN PERSONNEL(39o) $51212
' These are the annual salaries for those positions
These are the percentage of total annual work time spent on this activity
3 These are the total salary dollars consumed by Vehicle Releases for these positions, calculated by taking
the annual salary and multiplying by the percentage of total annual work time spent on Vehicle Releases
"s is the hourly salary of a Police Officer
5 This is average portion of an hour (40 minutes) that a Police Officer spends on a Vehicle Release in the
field; this is the only addition to the MSI cost study, which left out the Officer's time in the field
6 This is the total salary dollars consumed by Vehicle Releases for a Police Officer in the field, calculated
by taking the hourly salary and multiplying by the portion of an hour that a Police Officers spends on
Vehicle Releases in the field, then multiplying by the number of Vehicle Releases (50) as cited in the MSI
study
This is the sum of the sworn police salaries spent on Vehicle Releases
s This is dollar amount of the benefits (at the 55% rate for sworn personnel, as cited in the MSI study) of
the sworn police personnel's salaries spent on Vehicle Releases
9 This is the hourly salary of a Community Service Officer (CSO)
10 This is the portion of an hour that a.CSO spends on Vehicle Releases
" This is the total salary dollars consumed by Vehicle Releases fora CSO, calculated by taking the hourly
salary and multiplying by the portion of an hour that a CSO spends on Vehicle Releases, then multiplying
by the number of Vehicle Releases (50, as cited in the MSI study)
12 This is dollar amount of the benefits (at the 39% rate for sworn personnel, as cited in the MSI study) of
the non -sworn police personnel's salaries spent on Vehicle Releases
TOTAL SALARIES (SWORN & NON -SWORN) $2,185
TOTAL BENEFITS (SWORN & NON —SWORN) $992
SERVICES AND SUPPLIES:
OPERATING EXPENSES
''$25513
BLDG. OCCUPANCY CHARGES $39
OVERHEAD:"
GENERAL $180
DEPARTMENTAL $220,
FIXED ASSET CHARGES $51
VEHICLE LEASE PAYMENTS $31
**TOTALS** $3, 95314
NUMBER OF UNITS PERFORMED BY STAFF.: 5015
COST PER UNIT $79.0616
13 The dollar amounts for Operating Expenses, Building Occupancy Charges, General and Department
Overhead, Fixed Asset Charges, and Vehicle Lease Payments are all directly cited in the MSI study
14 This is the TOTAL dollar costs for Vehicle Releases, which is calculated by taking the sum of all
salaries, benefits, operating expenses, building occupancy charges, general and department overhead, fixed
asset charges, and vehicle lease payments
15 This is the number of Vehicle Releases cited in the MSI. study
16 This is the cost of each Vehicle Release, which is calculated by dividing the total dollar costs ($3,953) by
the number of Vehicle Releases (50) "
IMPOUND RELEASE FEE
SURVEY
OF
SAN GABRIEL VALLEY CITIES
As of January 1, 1999
REGULAR
POLICE AGENCY
IMPOUND
30 - DAY
ALHAMBRA
$ 30.00
N/A
ARCADIA
$ 50.00
$ 50.00
AZUSA
$ 50.00
$ 50.00 .
BALDWIN PARK
$ 45.00
$ 45.00
CLAREMONT
$ 30.00
$ 30.00
COVINA
$ 3.5.00
$ 35.00
EL MONTE
$ 75.00
$ 75.00
GLENDALE
$ 35.00
$ 35.00
GLENDORA
$ 33.00
$ 33.00
IRWINDALE
$ 2.00
$ 2.00
LA VERNE
$ 50.00
$ 50.00
MONROVIA
$ 50.00
$138.00
MONTEBELLO
$ 63.00
$ 63.00
MONTEREY PARK
$150.00
$150.00
PASADENA
$ 62.00
$ 77.00
POMONA
$ 35.00
$ 35.00
SAN GABRIEL
$ 35:00
$ 35.00
SAN MORENO
$ 25.00
$ 25.00
SOUTH PASADENA
$ 80.00
$ 80.00
LOS ANGELES CO.
$ 78.00 .
$ 78.00
Mean
$ 53.11 '
$ 54.30
Median
$ 76.00
$ 74.00
Mode
$50.00X4
$35.00X4