TITLE
Recommendation to authorize City Manager to execute an agreement with MRS Associates for providing collection services of delinquent towing fees for a period of one year with the option to renew for two additional one-year periods at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is being requested to authorize the City Manager to enter into an agreement with MRS Associates to provide collection services for delinquent towing, storage and lien fees where sufficient funds to pay the outstanding amounts due the City were not recovered through the sale of the vehicle.
At the request of a City impounding agency (e.g., Police, Community Development), the Department of Public Works, Towing Division, tows and stores vehicles pending release to the registered owner of the vehicle, who is responsible for all associated costs incurred. For unclaimed vehicles, the City sells the vehicles through a lien process. The proceeds from the lien sales are then used to repay outstanding tow, storage and lien fees, as well as parking citations if applicable. In many cases, the fees owed are in excess of the funds realized from the sale of the vehicle, resulting in an outstanding debt owed to the City. On February 10, 2009, City Council requested staff to develop a Towing Cost Recovery program, with the goal of addressing the insufficient cost recovery of towing, storage and lien fees. Per this recommended action, MRS Associates would seek collections of debts accrued in Fiscal Year 2010, on or after October 1, 2009.
The Towing Division has initiated a number of processes to assist in minimizing uncollected debt and offering their customers proactive solutions. The Vehicle Title Surrender program offers a mechanism whereby a registered owner can immediately surrender the impounded vehicle by signing over the title and thereby stopping the accumulation of storage fees. The Legal Owner Outreach Procedure (LOOP) notifies the legal owner if the...
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