(a) Upon the request of one or more vehicle tow service licensees that, either alone or together, accounted for 50 percent or more of the nonconsent tows performed in the city during the preceding license term as determined by the director according to city records, the city shall, either through its employees or a contractor, conduct a towing fee study for the purpose of determining the fair market value of the services of a vehicle tow service business performing nonconsent tows originating in the city. The fair market value of such services must be reasonably related to any financial or accounting information provided to the city relating to vehicle tow service.
(b) A request for a towing fee study must be in writing and filed with the director by one of the following methods:
(1) Certified United States mail, return receipt requested.
(2) Certified electronic transmission.
(3) Hand delivery.
(c) After an initial request for a towing fee study is filed with the director, other vehicle tow service licensees may join in that request by also filing requests with the director in accordance with Subsection (b). If, within 90 days after the director receives the initial request for a towing fee study, the director determines that all of the licensees joining in the request, when considered together, account for less than 50 percent of the nonconsent tows performed in the city during the preceding license term, then the city will not conduct a towing fee study.
(d) Before the city will begin conducting a towing fee study, the vehicle tow service licensee or licensees requesting the study shall deposit with the director a fee of $5,000 to partially defray the city’s cost of conducting the study. If the study is not conducted, the fee will be refunded to the licensee or licensees paying the fee, less an administrative fee of $250 for processing the request.
(e) Each vehicle tow service licensee requesting the towing fee study shall cooperate with the city to conduct the study. Each licensee shall provide to the city any reasonable information determined by the director to be needed to conduct a meaningful fee study, including, but not limited to, the following:
(1) An audited financial statement not more than one year old that reflects the current financial status of the vehicle tow service business and includes an itemized statement of revenues and expenses. The audited financial statement must have been prepared by an independent certified public accountant.
(2) The number of employees of the licensee, including drivers and dispatchers, and each employee’s position and annual compensation with the vehicle tow service business.
(3) Identification of all equipment owned or leased by the licensee that is used for conducting the vehicle tow service business, including a statement of the costs of acquiring or leasing the equipment.
(4) Copies of the past three years tax returns for the vehicle tow service business.
(f) All information provided by the vehicle tow service licensees relating to the towing fee study will be kept confidential to the maximum extent allowed by law.
(g) The city shall complete a towing fee study within 120 calendar days after receiving all information required under Subsections (e)(1), (2), (3), and (4) from the vehicle tow service licensees requesting the fee study.
(h) Upon completion of the towing fee study, the city council transportation and telecommunications committee shall receive the results of the study and hold a public hearing on whether the maximum fees for nonconsent tows originating in the city should be increased, decreased, or maintained at the same rates. The director shall give written notice of the time, date, and location of the public hearing to each vehicle tow service licensee. The notice must be sent by United States regular mail to the licensee’s address listed in the latest license application on file with the director.
(i) Based on the towing fee study, the public hearing, and other information presented to it, the transportation and telecommunications committee shall determine whether an adjustment in the nonconsent towing fees is justified. The committee shall then recommend to the city council whether the fees should be increased, decreased, or maintained at the same rates.
(j) Upon receiving the recommendation of the transportation and telecommunication committee, the city council shall adopt an ordinance that increases or decreases the maximum fees for nonconsent tows or that makes a finding that an adjustment to nonconsent towing fees is not justified. The maximum fees resulting from the city council’s action must represent the fair market value of the services of a vehicle tow service business performing nonconsent tows originating in the city and be reasonably related to any financial or accounting information provided to the city relating to vehicle tow service.
(k) No more than one towing fee study will be conducted within a four-year time period measured from the last date the city council adopted an ordinance that, based on a towing fee study, either adjusted the towing fees or found that an adjustment in towing fees was not justified. (Ord. 25812)