ESCONDIDO ---- Lured by the prospect of boosting city revenues more than $2 million a year, four out of five Escondido City Council members said Monday that
the city should consider taking over the impounding and towing of cars from four private companies now handling that task.
Officials said Escondido would be the first city in San Diego County to take over towing and impounding. Long Beach and several other California cities have generated significant revenue by making such a move.
Supporters of the proposal said the extra money would help reduce the number of employee layoffs and cuts in city services needed to close $22 million in budget deficits projected over the next four years.
Critics warned that the revenue estimates might be too optimistic, making it risky for the city to spend a few million dollars in "start-up" costs establishing an impound lot and buying tow trucks.
Another concern raised was ongoing lawsuits threatening the legality of some towing practices, which could eventually reduce the number of cars towed. Others said they were worried the change would give the city a much greater incentive to tow more cars, creating a dangerous conflict of interest.
And the owner of one local towing company said the change could bankrupt the companies now handling Escondido towing and impounding, putting dozens of employees out of work.
Extra city revenue
Michael Guerrero, president of the police officers labor union, is among several city labor leaders who have expressed support for the proposal.
"If we're spending taxpayer money on police officers who determine which cars to tow, then why should the money from the towing go back to private companies?" he said Monday.
Guerrero said internal Police Department memos estimate annual revenues would be $2 million to $3 million. Calls seeking copies of those memos were not returned Monday by police Chief Jim Maher, Assistant Chief Cory Moles, Tow Coordinator Rich Mustion and Lt. Craig Carter.
Jack Anderson, a former assistant city manager in Escondido, said an internal study conducted in the 1990s found that not enough cars were towed in Escondido to make it profitable for the city to take over those operations.
But the city sharply increased the number of cars it tows when it began staging frequent driver's license checkpoints in 2006. From the beginning of 2005 to the end of 2007, Escondido impounded 1,243 cars, compared to 296 in Oceanside and 205 in San Marcos. More recent data could not be obtained from the Escondido Police Department on Monday.
Anderson said other concerns raised in the late '90s included that city employees receive higher pay and benefits than private sector employees.
Study and decide
City Councilwoman Olga Diaz has been a vocal critic of the driver's license checkpoints, contending that they unfairly affect Latino immigrants. But Diaz said Monday that the high volume of towing created by the Escondido checkpoints makes it crucial for the city to study the possibility of taking those operations over.
"If we're going to continue towing cars at this rate, the city should be getting some of the revenue," Diaz said.
Mayor Lori Holt Pfeiler, Councilwoman Marie Waldron and Councilman Dick Daniels said Monday that they support Diaz's request that city staff study the issue. But they said their support for a policy change would depend on what the study concludes.
Diaz agreed.
"We need to figure out whether this would generate money for the city, where we should put it, whether we should buy or lease the tow trucks and many other things," said Diaz. "And if it's not possible, I want to know why it's not possible."
Councilman Sam Abed said he does not support studying the idea because the towing and impounding business is not nearly as profitable as people think. He also said the private sector does things much more efficiently than the public sector.
Diaz said the timing of her proposal is perfect because June 30 is the expiration date of contracts with the city's four towing companies: Al's Towing, A-Z Enterprises, Allied Gardens Towing and El Norte Towing. The annual fees the companies each pay the city for the right to tow and impound cars in Escondido was increased from $37,500 to $100,000 per year in 2007.
Josh Park, owner of Al's Towing, said Monday that it would a huge mistake for the city to take over towing operations. He said that start-up costs would be $3 million to $5 million even if the city used some of its own property. He also said his revenue has dropped dramatically the past two years as the number of cars impounded by the city has fallen from 6,500 per year to 4,500 per year.
Park estimated that the city already makes more than $1 million per year from towing operations, explaining that they get $180 in impound fees for each vehicle on top of revenue from citations.
Car owners must also pay the private companies a $150 tow fee and $30 per day for storage.
Diaz said it was possible the city could handle some of the towing, and allow one or two of the private companies to continue handling the rest.
Long Beach has had success making such a change, said Patti Mobile, an analyst for that city's Public Works Department.
But revenue has wavered between $500,000 per year and $3.5 million per year, she said. In a typical year, the city generates about $9 million in revenue and spends $6 million on its towing operations, including salaries and benefits for 42 employees.
Long Beach has about 500,000 people, more than three times the population of Escondido.
Contact staff writer David Garrick at (760) 740-5468 or dgarrick@nctimes.com.
Officials said Escondido would be the first city in San Diego County to take over towing and impounding. Long Beach and several other California cities have generated significant revenue by making such a move.
Supporters of the proposal said the extra money would help reduce the number of employee layoffs and cuts in city services needed to close $22 million in budget deficits projected over the next four years.
Critics warned that the revenue estimates might be too optimistic, making it risky for the city to spend a few million dollars in "start-up" costs establishing an impound lot and buying tow trucks.
Another concern raised was ongoing lawsuits threatening the legality of some towing practices, which could eventually reduce the number of cars towed. Others said they were worried the change would give the city a much greater incentive to tow more cars, creating a dangerous conflict of interest.
And the owner of one local towing company said the change could bankrupt the companies now handling Escondido towing and impounding, putting dozens of employees out of work.
Extra city revenue
Michael Guerrero, president of the police officers labor union, is among several city labor leaders who have expressed support for the proposal.
"If we're spending taxpayer money on police officers who determine which cars to tow, then why should the money from the towing go back to private companies?" he said Monday.
Guerrero said internal Police Department memos estimate annual revenues would be $2 million to $3 million. Calls seeking copies of those memos were not returned Monday by police Chief Jim Maher, Assistant Chief Cory Moles, Tow Coordinator Rich Mustion and Lt. Craig Carter.
Jack Anderson, a former assistant city manager in Escondido, said an internal study conducted in the 1990s found that not enough cars were towed in Escondido to make it profitable for the city to take over those operations.
But the city sharply increased the number of cars it tows when it began staging frequent driver's license checkpoints in 2006. From the beginning of 2005 to the end of 2007, Escondido impounded 1,243 cars, compared to 296 in Oceanside and 205 in San Marcos. More recent data could not be obtained from the Escondido Police Department on Monday.
Anderson said other concerns raised in the late '90s included that city employees receive higher pay and benefits than private sector employees.
Study and decide
City Councilwoman Olga Diaz has been a vocal critic of the driver's license checkpoints, contending that they unfairly affect Latino immigrants. But Diaz said Monday that the high volume of towing created by the Escondido checkpoints makes it crucial for the city to study the possibility of taking those operations over.
"If we're going to continue towing cars at this rate, the city should be getting some of the revenue," Diaz said.
Mayor Lori Holt Pfeiler, Councilwoman Marie Waldron and Councilman Dick Daniels said Monday that they support Diaz's request that city staff study the issue. But they said their support for a policy change would depend on what the study concludes.
Diaz agreed.
"We need to figure out whether this would generate money for the city, where we should put it, whether we should buy or lease the tow trucks and many other things," said Diaz. "And if it's not possible, I want to know why it's not possible."
Councilman Sam Abed said he does not support studying the idea because the towing and impounding business is not nearly as profitable as people think. He also said the private sector does things much more efficiently than the public sector.
Diaz said the timing of her proposal is perfect because June 30 is the expiration date of contracts with the city's four towing companies: Al's Towing, A-Z Enterprises, Allied Gardens Towing and El Norte Towing. The annual fees the companies each pay the city for the right to tow and impound cars in Escondido was increased from $37,500 to $100,000 per year in 2007.
Josh Park, owner of Al's Towing, said Monday that it would a huge mistake for the city to take over towing operations. He said that start-up costs would be $3 million to $5 million even if the city used some of its own property. He also said his revenue has dropped dramatically the past two years as the number of cars impounded by the city has fallen from 6,500 per year to 4,500 per year.
Park estimated that the city already makes more than $1 million per year from towing operations, explaining that they get $180 in impound fees for each vehicle on top of revenue from citations.
Car owners must also pay the private companies a $150 tow fee and $30 per day for storage.
Diaz said it was possible the city could handle some of the towing, and allow one or two of the private companies to continue handling the rest.
Long Beach has had success making such a change, said Patti Mobile, an analyst for that city's Public Works Department.
But revenue has wavered between $500,000 per year and $3.5 million per year, she said. In a typical year, the city generates about $9 million in revenue and spends $6 million on its towing operations, including salaries and benefits for 42 employees.
Long Beach has about 500,000 people, more than three times the population of Escondido.
Contact staff writer David Garrick at (760) 740-5468 or dgarrick@nctimes.com.
