Operating the city auto pound, including the expense of towing vehicles there, will lose the city an estimated $334,500 this budget year.
That is after recouping storage fees and other charges as well as revenue from auto auctions. At a time when the city is cutting back services and laying off workers, there has to be a better way, officials said.
"My concern is that's a heck of a lot of money," said City Councilman Matt Haag. "My concern is, do we need the auto pound and do we need to be subsidizing it to that expense?"
Options include outsourcing impound operations. No decisions have been made. Instead, City Council last week authorized towing contracts through Sept. 30, 2012, for an expanded number of companies, adjusting the redemption fee and requiring quarterly reports from the administration.
"Basically, what the legislation does is buy us a year to see if we can get it right," said City Council member Carolee Conklin.
Haag, along with City Councilman Adam McFadden and Vice President Elaine Spaull, opposed the measures.
The city hires towing companies to remove illegally parked, abandoned, recovered stolen or damaged and disabled vehicles.
In 2010-11, towing companies split business hauling 4,650 vehicles to the city auto pound, which brought in $567,446 to city coffers for storage and redemption fees. The number of towed vehicles is down by more than half from a decade ago.
Another 1,800 vehicles were towed to private facilities.
In all, the city paid $567,211 to five firms for the work, records show.
There were four towing companies dividing the business, plus a fifth handling only heavy towing jobs. In the year ahead, there will be six, plus the heavy towing company. Haag said he would have preferred a shorter contract. Those opposed say they are concerned there is not enough business to go around.
Back in February, the city sought out interested towing companies in anticipation of contracts, signed in December 2005, expiring this month. Those who responded are being included in the one-year contract, and those who remain from 2010-11 are getting their contracts extended.
McFadden, whose committee held the legislation recently, said he was not comfortable with the one-year contract, though he helped craft it.
"We really need a long-term solution when you look at the auto pound," he said.
City Council President Lovely Warren moved the legislation forward, on a 6-3 vote, while adding the requirement of quarterly reports.
Criteria and measures for what is acceptable still must be developed.
On a similar split vote, City Council approved increasing the fee for owners to get their cars out of the auto pound from $110 to $120, which is what two private companies charge.
BDSHARP@DemocratandChronicle.com
(article link http://www.democratandchronicle.com/article/20110919/NEWS01/109190327 )
