Feasibility Report
for
Processing Abandoned Vehicles
prepared
by
Frank Gonzales
Records Manager
Vehicle Immobilization Program
Pima County Sheriff’s Department
March 10, 2008
Updated March 26, 2008
Page 1 of 20
Report Outline
 Program’s Current Status and Staffing
 Statute Outline
 Legal Review
 Statistical Review
 Processing Abandoned or Unclaimed Vehicles
 Options for Processing Abandoned Vehicles
 Collection of Revenue
 Conclusions
 Summary
 Raised Questions
 Exhibits
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Program’s Current Status & Staffing
In November of 2005 the Pima County Sheriff’s Department (PCSD) started
immobilizing vehicles in accordance with Arizona Revised Statute (ARS) 28-3511.
Under the supervision of the Traffic Unit, two Public Safety Support Specialists (PSSS)
were assigned to process releases for vehicles claimed by their respective registered
owners. No fees were collected at the inception of the program. Over the course of a
year, these two employees were estimated to have processed approximately 2,500
vehicles.
In November of 2006, PCSD management moved the Vehicle Immobilization Program
(VIP) and the two PSSS employees/positions to the Records Maintenance Unit (RMU).
This was done so that administrative fees, authorized to be collected from the vehicle
owners, could be processed under county and department accounting guidelines.
When this move occurred two Records Technicians were added to RMU to assist the
PSSS personnel in the processing of collecting administrative fees in addition to filing all
related paperwork and attaching it to the department case numbers. Under statutory
provisions, administrative fees collected were applied and collected to offset these
newly allocated classifications assigned to the program and to pay for all related
necessary equipment. This equipment included work stations, computers, scanners,
phones, chairs, etc. Attached to this report is a brief overview on cost analysis of
department expenses to administer the program (Exhibit A). All four staff positions and
equipment obtained were funded by the administrative fees collected.
Arizona Revised Statues (ARS) require that owners of vehicles that have been
immobilized, obtain a release from the law enforcement agency that tows a vehicle
under ARS 28-3511. Currently an individual that owns a vehicle that has been
immobilized by PCSD, must attain a release authorization from the department prior to
the vehicle being released. In accordance with the statute, to attain a release the owner
must provide a valid license, proof of insurance and proof of current registration. Once
the owner has achieved these three basic requirements, the owner must pay PCSD an
administrative fee of $150.00 for the vehicle then pay the tow truck company for tow
charges and storage fees. This is in addition to any court fines or re-instatement fees
required by the Motor Vehicle Department. Typically a citizen could pay a total of
$750.00 to all parties involved in order to retrieve his vehicle. This amount is an
average minimum. In situations where multiple fines and suspensions exist, owners do
not retrieve their vehicles at all and allow them to be processed as abandoned vehicles
by the tow truck companies.
The administrative fees collected by PCSD is not mandatory.
However the
immobilization statute allows for a law enforcement agency to collect up to $150.00 per
vehicle to fund and administer the program within the law enforcement agency. A study
was conducted to determine PCSD’s costs in processing each vehicle. That cost was
determined to be $180.73 for each vehicle processed. This fee is only collected on
vehicles recovered by their respective owners. Prior to this report, administrative fees
were not collected from tow truck companies acquiring ownership after the vehicle has
been abandoned or unclaimed.
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Once a release is obtained from PCSD, the owner proceeds to the tow truck facility.
The tow and storage fees are paid, then the vehicle is released. The tow truck
company collects the tow fee plus several other fees for their service, in addition to a
$15.00 per day storage fee. The average tow and storage fee for the vehicle owner,
provided that the vehicle only is at the tow facility one night, is $180.73 per vehicle. The
tow truck company also charges a $75.00 gate fee for any vehicle picked from their
facility after 4 PM or on weekends.
In August of 2007 statutory updates require that tow truck companies obtain a release
from the law enforcement agency on all abandoned or unclaimed vehicles. Until these
statutory changes occurred administrative fees were collected only from vehicle owners,
lien holders and rental car companies. This administrative fee is based on the
department expenses incurred as a result of administering the program.
In August of 2007 statutory changes occurred where ARS 28-3515 was added. This
new addition required the immobilizing law enforcement agency to prepare and
authorize the release of any unclaimed or abandoned vehicles left at tow yards. Until
this change was required, PCSD did not process or review any abandoned vehicles
where titles for ownership was changed from the previous owner to the tow truck
company.
In October of 2007 PCSD began preparing for the requirement to process all paperwork
for the release of abandoned vehicles to the tow truck companies. As a result of this
statute change, on March 1, 2008 all tow truck companies would be required to pay the
$150.00 administrative fee to PCSD when a request for release occurred where
ownership was transferred to the tow truck company. The change would result in the
increase of administrative fees collected and vehicles processed. Equipment and
staffing increases are necessary to administer the program and complete the release
authorizations, therefore increasing costs to PCSD. This increase for staffing and
equipment was directly related to the vehicles that were not processed (vehicles that
went unclaimed) for release back to the original owner.
Statute Outline
Listed below is a summary of the current statutes which include all updates. These
updates include the requirement that all unclaimed vehicles be processed as an
abandoned vehicle under ARS 28-4838.
ARS 28-3511: Outlines the authority for a law enforcement agency to immobilize a
vehicle. This statute indicates, for the most part, that any suspension or revocation is
grounds for immobilization. Projected legislation for the summer of 2008 will include the
immobilization for any vehicle where a driver has been arrested for any type of Driving
Under the Influence (DUI) violation.
ARS 28-3512: Outlines conditions for releasing the immobilized vehicle.
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ARS 28-3513: Sets conditions for the collection of administrative fees. This statute
specifically allows the law enforcement entity to collect fees to directly offset the costs
for the funding and operation of the Vehicle Immobilization Program. Under ARS 283513F2, “If the impounding or immobilizing agency is a county, the administrative
charges collected pursuant to this section shall be transmitted to the county treasurer
for deposit in a special fund established by the county for the purpose of implementing
section 28-872 and this article.”
ARS 28-3514: Outlines and sets conditions for the law enforcement entity to conduct
hearings requested by registered vehicle owners.
ARS 28-3515: “If a claim has not been made for the return or possession of the vehicle
by a person legally entitled to the vehicle within thirty days after a vehicle is impounded
pursuant to this article, the person who has possession of the vehicle shall submit an
abandoned vehicle report as provided in section 28-4838. The immobilizing or
impounding agency shall require the person who takes possession of a vehicle pursuant
to this section to obtain a release for the vehicle from the immobilizing or impounding
agency.” This statute was added in August of 2007. It requires tow truck companies or
salvage yards to gain a release from the immobilizing law enforcement entity, upon filing
an abandon title for ownership of the unclaimed vehicle.
As noted earlier in this report it is anticipated that in the summer of 2008 another
revision to this statute shall occur. The statute shall authorize the immobilization of a
vehicle for any type of arrest for Driving Under the Influence (DUI). This could
significantly increase the amount of vehicles immobilized by PCSD. In 2007 a total of
1,751 arrests were made for DUI by PCSD.
Legal Review
One of the questions raised is whether or not PCSD, or any department within Pima
County, has the authority to dispose of vehicles (property) that are abandoned
(unclaimed). Representatives from the Pima County Attorney’s office reviewed both
civil and criminal statutes to determine if the processing of abandoned titles for
unclaimed vehicles by Pima County is legal. A review of statutory requirements by the
department’s legal advisor, Deputy County Attorney Sean Holguin, and members of his
office revealed that there is no known requirement that would prohibit the sheriff’s
department or other county entity from disposing of an unclaimed or abandoned vehicle
through a sale and therefore receiving monies that were collected from said sale.
Fleet Services of Pima County currently and legally disposes of approximately 10 to 12
abandoned or unclaimed vehicles each month. These vehicles include old county cars
or trucks as well as abandoned vehicles which are not needed for county purposes and
were not related to law enforcement action performed by PCSD.
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Statistical Review
During 2007 the PCSD immobilized a total of 3,222 vehicles under ARS 28-3511, of
which 2,441 were processed for release back to the original owners. It was
undetermined on the exact number of abandoned title applications for unclaimed
vehicles processed by Frontier Towing. However during one meeting with an owner of
Frontier Towing, it was indicated 1,400 vehicles were sold as abandoned vehicles from
this tow service.
The majority of unclaimed vehicles were processed as abandoned vehicles for
auctioning purposes. However some vehicles had little value for other than a scrap
metal purpose so as to be disposed or destroyed by the tow truck company.
In 2007 PCSD processed the release of 2,441 vehicles under the Vehicle
Immobilization Program, which resulted in the collection of $344,820.00 in
administrative fees. It is estimated that 430 vehicles remained with Frontier Towing
since September 2007. The exact amount was undetermined due to the way vehicles
were tracked under the previous provisions of the statute and that the tow truck
companies were not altogether forthcoming about the information on the number of
vehicles they released. Based on PCSD records during this time period a total of 430
vehicles remained with tow truck companies. Administrative fees that could have been
collected were in excess of $64,500.00.
Depending on the number of vehicles processed each year, abandoned vehicles that
require a statutory release process from PCSD could generate an additional amount of
$103,350.00 to $206,100.00 in administrative fees. This could increase the total fees
collected from $448,170.00 to $550,920.00 for an annual total. It has not been
estimated how much additional revenue would be generated from DUI arrests. Based
on DUI arrests for 2007 it is estimated an additional 1,200 vehicles could be processed
which would result in the collection of $180,000.00 more annually. This could
potentially place annual administrative fees collected, in a range from $628,000.00 to
$730,920.00.
Since the inception of the program where administrative fees have been collected, only
16 months have transpired where a gauge has occurred to determine the amount of
vehicles that could be processed over the course of one year. In 2007, 3,222 were
immobilized, 2,441 were processed to be returned to registered owners. It is
undetermined on the total remainder of vehicles for 2007(estimates are from 689 to
1,374), exactly how many were auctioned or sold as scrap metal after an abandoned
title was obtained from MVD. A review of the information provided by Frontier Towing
alone indicate approximately 1,300 vehicles were sold at auctions. Based on current
data and trends, it is anticipated a minimum of 1,400 abandoned vehicles will require
processing for 2008.
The PCSD cost to process each vehicle that is to be immobilized and to provide the
release authorization for each vehicle is $180.73. This amount was determined by
PCSD’s internal auditor (see attached Exhibit B).
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It should also be noted that research was conducted to determine the exact amount of
vehicles towed for any reason by PCSD. That total revealed a larger amount of
vehicles were being towed for all other reasons to include but not limited to: accidents,
arrests, drug seizures, PCSD vehicles with mechanical failure, etc.
Processing Abandoned or Unclaimed Vehicles
To process an abandoned vehicle, it must be unclaimed by the owner. Proper notice
must be attempted in contacting the registered owner. Due process requires that a
period totaling 45 days must elapse prior to receiving an abandoned title from the Motor
Vehicle Department (MVD). This process also includes the inspection of the vehicle by
MVD.
In the event PCSD conducts and processes all vehicles left unclaimed or abandoned
under this statute, it would be necessary to have representatives from MVD inspect
these vehicles at the location where they are stored. Currently MVD inspects the small
number of vehicles processed by Fleet Services. Although this number would increase
significantly, it would be shifting the location of inspections from a private tow truck
company to the county facility.
Once the vehicle has been declared abandoned by MVD, Pima County would assume
ownership and then process the vehicle to be sold or disposed of as scrap. This would
require a software program and staffing to track each vehicle immobilized by the
department and all processing while the vehicle is located at the tow and storage
facility. The vehicle would then be processed to go to auction or sold as scrap. Once
sold it would be necessary for Pima County to track all funds collected regarding each
vehicle processed. Currently there is not a method to track vehicles within different
departments of Pima County. It would be necessary to develop a tracking system that
would interface with PCSD, Fleet Services and the county’s business office.
Options for Processing Abandoned Vehicles
Several options exist in deciding what path to take to process these unclaimed vehicles.
These options include staying with the current process of allowing the tow truck
companies to file abandoned titles and collect all proceeds from the auction of these
vehicles, or towing and processing these vehicles with Pima County and exclude tow
truck companies from the process. This would obviously require significant county
resources to be committed. The information that follows outlines three options Pima
County could pursue.
Option #1
Only collect Administrative Fees. This option requires the fewest revisions to the
current procedures utilized by PCSD. Starting March 1, 2008, all abandoned vehicles
shall require the tow truck company to obtain a release from PCSD. This will require an
increased work load to be absorbed by the Vehicle Immobilization Program personnel.
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PCSD requires the tow truck company to pay $150.00 in administrative fees for each
abandoned vehicle released. Statutory guidelines allow these administrative fees to be
utilized by PCSD to staff, fund and operate the program.
A review of current data indicates that an approximate 40% increase of transactions
could occur with the VIP personnel at RMU. This increase includes the following areas:
license checks, registration/owner/title verification, collections of additional
administrative fees, and the filing and scanning of all paperwork associated with related
case reports. It is projected that two additional PSSS or RMU personnel will be
necessary for staffing increases to absorb the increase in abandoned vehicles that will
be processed.
In this option as well as the others listed, some vehicles will sell for only scrap metal
purposes due to the poor condition of the vehicle when it arrives at a tow yard. Some of
these vehicles will not sell for more than $100.00. Some private tow firms have
indicated that it is unfair to be charged a $150.00 administrative fee, when the
immobilized vehicle value is less. However, private tow firms do not advise when they
receive several thousand dollars for vehicles that only cost a couple of hundred to
process. In these situations, tow truck firms make an extensive profit.
Pros:
1. Mandated by statute, relieves PCSD from liability
2. Provides assurance of due process to each unclaimed vehicle
3. Least cost to PCSD
4. Increases fees collected to fund the VIP program
5. Requires data base to track all vehicles immobilized
Cons:
1. Increase in staffing to PCSD
2. Increase in costs for work stations and related equipment
3. Requires data base to track all vehicles immobilized
4. Tow Truck companies would not respond favorably to this option
Option #2
This option proposes to allow the tow truck companies to continue with the processing
of vehicles. However upon reaching the 45 day limitations that are required prior to
filing an abandoned title, responsibilities are split so as to pay a flat fee to the tow truck
company for services they may render. This option would require the renegotiations of
contracts with the county.
An example of this option is that tow truck companies would continue to be allowed to
tow and store vehicles immobilized. At the end of the time periods required, the tow
truck companies would be paid a percentage from the final sale that the car had
attained at the time of auction to offset their costs for towing and storage. If the vehicle
was sold or auctioned for $2,500.00, the tow truck company would receive 10% of the
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total ($250.00). This percentage would be negotiated during the bidding process for the
service contract between PCSD and the tow truck companies. The percentage or a
minimum fee would pay the tow truck company’s costs to process the vehicle. These
costs could include the fees for towing the vehicle, storage, filing of abandoned title with
MVD and any other expenses the company might incur with said vehicle.
If the vehicle was returned to the registered owner, the process to release the vehicle
would remain the same: the registered owner reports to PCSD to obtain a release, then
reports to the tow truck company to have his/her vehicle returned.
Unless PCSD provided additional services for the processing of MVD titles, sales of
vehicles or auctions, the additional staffing outlined in Option #1 could apply for Option
#2. An assessment would be necessary to determine what services PCSD would
provide and what services would be handled by the tow truck company. Based on what
services would be provided by each entity, the fee negotiated at the time of the tow
truck bidding, filing of MVD paperwork and county staffing increases. This option could
yield $1,000,000.00 in fees collected from the sale of unclaimed vehicles to Pima
County. This would be in addition to the administrative fees collected from owners
retrieving their immobilized vehicles. This option also places most claims in the area of
risk management upon the tow truck company. It would directly decrease the funds
collected by the tow truck companies when vehicles are auctioned.
This option would draw a large amount of resistance from tow truck companies because
of the significant reduction to their profit. Tow truck companies could refuse to bid or
conspire to impair the bidding process in an attempt to gain back the entire contract to
tow, store and auction vehicles from their company, thus keeping in place the higher
profit margin for their companies.
Pros:
1. PCSD in control of abandoned vehicles
2. Provides assurance of due process to each unclaimed vehicle
3. Funding currently received by Tow Truck Companies would go to the county
4. Increases fees collected to PCSD
5. Places tow truck company on fixed rate for processing vehicles; reduces
storage and related fees which in turn protects owner
6. Keeps most risk management claims with the tow company and away from
the county
Cons:
1. Requires PCSD to have more active role in filing abandoned titles with MVD
2. Increase in staffing to PCSD
3. Increase in costs for work stations and related equipment
4. Tow Truck companies would not respond favorably to this option
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Option #3
This option involves PCSD, along with other county departments, to take over the entire
process: to immobilize, tow, store and release vehicles; to file abandoned titles for
unclaimed vehicles; then auction or sell the unclaimed vehicles. This option poses the
most return for unclaimed vehicles. This option also requires the highest monetary and
personnel investment to start the program. Equipment, personnel, and a storage facility
will be required to employ this option. Due to towing and storage, this option also
exposes the county to more risk management claims for items such as damage to
vehicles or theft of personal property.
Considerations will have to be made on providing 24 hour/7 day coverage for availability
of tow trucks to respond to calls in general locations of Pima County. Outlying areas
such as Ajo may continue to require the use of private tow trucks. This would require
contract negotiations for services rendered by private tow truck companies to PCSD.
PCSD would immobilize vehicles and have them transported by and to a lot overseen
by Fleet Services. Fleet Services would provide staffing for the tow truck drivers, lot
attendants and clerical staff required to track and process each vehicle. Attached to this
report is Exhibit A which outlines some of the personnel staffing and equipment costs.
As a result of providing tow truck services Pima County could establish lower tow rates
and storage fees to provide owners that retrieve their vehicles from immobilization.
Fleet Services files approximately 10 to 12 abandoned vehicle titles per month with
MVD. These abandoned vehicles come into the county’s possession by means other
than what would be associated with a law enforcement reason. Fleet Services takes
fees collected from the disposing of abandoned vehicles and places the fees collected
directly into the county general fund.
Fleet Services has identified several vacant properties that are easily accessible and
are owned by the county. These lots are located within the Tucson metropolitan area.
It would be necessary to upgrade the security of the lot(s) and provide staffing and
access on a 24 hour basis. Considerations as to providing electronic security could be
determined based on the location of the lot, buildings that would be necessary, etc. It
has not been determined as to the exact size or number of lots that would be required to
store and process vehicles under this immobilization option. However it would be
suggested that these lots should accommodate the storage of 750 vehicles for a period
of 90 days to insure proper processing of each vehicle.
In addition to processing unclaimed vehicles, vehicles that are returned to their owners
would require a tow fee in addition to the administrative fee collected. Since this
program is funded by administrative fees that are collected, citizens could be offered a
significantly lower tow and storage rate by the county on returned vehicles. For
example, in addition to the administrative fee to be collected on each vehicle, a flat tow
and storage fee for $100.00 on each vehicle could be applied. In 2007, 2,441 vehicles
were returned to their owners. This could yield an additional $244,100.00 for the tow
services provided by the county.
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As indicated earlier in this report, Option #3 requires the largest costs in staffing and
equipment for operations. Administrative fees that are currently being collected would
help offset the initial one-time capital costs for equipment such as tow trucks, office
work stations and equipment, buildings, security or staffing.
Currently all proceeds from sales involving abandoned vehicles go to the private tow
truck companies for profit. Some vehicles will be sold as scrap metal while other
vehicles will generate several thousands of dollars. Estimates can only determine the
fees that will be collected above the overhead costs of conducting an operation such as
this. Tow truck companies were not forth coming about the monies received from filing
abandoned titles or the exact number of vehicles that were sold or auctioned.
In review of the vehicles sold by tow truck companies, approximately 689 to 1,374, a
low figure of $2,000.00 per vehicle was utilized to determine the amount that would be
collected. This figure only pertains to vehicles sold under an abandoned title as a result
of a vehicle immobilization. Vehicles towed for reasons such as traffic accidents were
not considered. Depending on the number of abandoned vehicles processed, an
estimated $1,378,000.00 to $2,748,000.00 could be collected annually. In this process,
auction companies will need to be researched to determine the most efficient method,
which would be in the best interest of the county, to process the vehicles for sale to
maximize the largest rate of return.
Reviewing the brief cost estimate sheet attached to this report, the first year of operation
for this program would cost approximately $719,284.00 (Exhibit A). These costs include
some one time capital expenses for things such as tow trucks and office equipment.
These costs do not include any type of purchase for a facility or improvements to
existing structures.
A law enforcement concern has been raised in reviewing this program. A meeting with
the Phoenix Police Department revealed that due to the volume of vehicles it processes
annually, six officers and a sergeant were added to their department’s vehicle
immobilization unit/program for criminal investigative services. All of these officers as
well as 12 clerical staff were funded by the administrative fees collected from each
vehicle returned to its owner. These officers review certain vehicles for the possibility of
crimes involving vehicle identification number switches, false documents,
stolen/recovered vehicles and property, outstanding warrant, etc. The officers with
Phoenix P.D. also assisted with ‘keeping the peace’ issues at the Phoenix Police facility
where their immobilization unit is located. Although PCSD has often experienced
incidents involving enraged owners and attempts of intimidation toward PCSD
employees, there has yet to be an arrest incident within the facility for other than an
outstanding warrant.
It may be necessary to fund a supervisor or sergeant to this option for span of control
issues involving employees and investigations. It would be necessary to fund a vehicle
tracking program that would be linked to several county departments, including PCSD,
to assure the appropriate disposition of each and every vehicle that was sold as an
unclaimed or abandoned vehicle.
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As indicated earlier, this option would draw a large amount of resistance from tow truck
companies because of the significant reduction to their profit. Tow truck companies
could refuse to bid or conspire to impair the bidding process in an attempt to gain back
the entire contract to tow, store and auction vehicles from their company, thus keeping
in place the higher profit margin for their companies.
Pros:
1. Would generate the most fees collected into the county’s general fund
2. Would give more control over abandoned vehicles to PCSD, this would
assure that owners would receive greater due process to protect owner’s
rights and reduce the ability of tow truck company mandates
3. Would allow for criminal investigations involving VIN switches, false
documents, etc.
4. Provides a lower tow/storage rate charged to owners retrieving their vehicles
5. Eliminates the possibility of tow truck companies increasing fees for minor
reasons such as after hour access or gate fees
6. Provides data base for better tracking of all vehicles immobilized
7. Tow trucks owned and operated by county could be used for other services
(the towing of a county/PCSD vehicle-this in turns saves the county from
having to pay for a private tow truck, towing seized vehicles for RICO
purposes, etc.)
8. Provides greater due process for vehicle owners
Cons:
1. Requires PCSD to have more active role in filing abandoned titles with MVD
due to increase in volume of vehicles processed
2. Increase in staffing to PCSD and other county departments
3. Increase in costs for work stations and related equipment
4. Higher risk management claims against county by owners
5. Tow Truck companies would not respond favorably to this option
Listed on Exhibit A of this report are the necessary minimum costs and requirements to
start and fund such a program. The requirements can change due to staffing
requirements of the program and the level of involvement from PCSD and other county
departments such as Fleet Services or the county’s business offices. These costs do
not include the possible purchase of a storage lot or security upgrades that would be
necessary.
Collection of Revenue
Fleet Services currently auctions vehicles that are acquired by the county or sells off
old/unused Pima County vehicles from various departments. Some vehicles have sold
for as little as $300.00 (these vehicles are in poor condition which are sometimes sold
without an engine or major power train components). Other vehicles are sold based on
a reserve Kelly Blue Book appraisal. The average fee collected for each vehicle sold is
$1,485.00 (Fleet Services has never had a vehicle auctioned or sold at over
Page 12 of 20
$10,000.00). Funds that are collected are processed through Fleet Services. Once
sold, certified checks are collected and made out to “Fleet Services” then deposited into
the county’s banking firm. Fleet Services are currently researching the use of EBay to
auction vehicles from Pima County. Fleet Services would request that any vehicles sold
or auctioned as a result of the vehicle being abandoned from this immobilization statute,
that the funds would be processed or collected through the sheriff’s department.
It could be necessary to fund and staff an administrative assistant within the
Business/Finance Unit of PCSD to assure the proper tracking and collection of funds
received from abandoned vehicles which are sold. It should be noted that the collection
of funds from other areas within PCSD are tracked. An example would be the jail’s
commissary. Funds are collected to purchase certain supply items for the jail such as
snacks for inmates, toiletries, etc.
Conclusions
The Pima County Sheriff’s Department will be the first law enforcement entity in the
state to provide and conduct tow truck services for law enforcement purposes.
Although PCSD will be the first to initiate tow services in the state, this option has
occurred before throughout the United States. An example is the impound unit for the
New York City Police Department.
Based on all information provided in the preparation of this report, it has been
determined that statutory changes would require change in how PCSD shall administer
the Vehicle Immobilization Program. Minimum staffing and equipment increases shall
be required for the collection of administrative fees for unclaimed or abandoned
vehicles. Administrative fees collected are designated by statute to fund the salary and
equipment requirements for this program.
The cost to fund a completely staffed and equipped tow truck program in the first year of
operation for the county would be approximately $719,284.00. This does not include a
possible supervisory classification or staff members outside of PCSD and Fleet
Services. The VIP program currently reports to the Records Maintenance Unit
supervisor. In the event the department goes with the recommendation to acquire two
more PSSS’s along with a deputy and a detective, along with the current RMU staffing,
would bring the total unit’s manpower to 15, not including the RMU supervisor. The
span of control will be significantly impaired with the addition of the required staffing and
increased workload, not to exclude the oversight of any criminal investigations.
It is anticipated that the program would not only pay for these costs but make an
additional $1,500,000.00 in its first year of operation. This amount was based on the
collection of $2,000.00 for vehicle auctioned or sold. The overall benefit to this program
is that it would be financially self-sustaining. Oversight into the abandoned vehicle
process, when the vehicle is auctioned, provides the citizen/owner another layer of
protection for the due process of the vehicle before it is sold or released. A layer of
criminal enforcement is also provided to detect crimes involving stolen vehicles, false
documents, etc.
Page 13 of 20
Tow truck companies will vigorously oppose PCSD’s involvement in the processing of
the abandoned or unclaimed vehicles. During the process to collect the administrative
fees that started March 1, 2008, tow truck companies opposed this change. Tow truck
companies have indicated that contracts need to be re-bid or cancelled so as to be
allowed to increase their service fees to offset the administrative fee. This increase in
fees would directly affect the citizen customer requesting service. It is recommended
that any future contract bidding with tow truck companies incorporate condition(s) in the
contract process to require tow truck companies to comply with any and all statutory
requirements in the event a future addition to this or any legislation for Arizona Revised
Statutes. Contract negotiations should be constructed to protect county procurement
procedures and to prevent any possible temptation by tow truck companies to inflate
their expense estimates to citizens and the county for the cost of towing vehicle, in a
possible attempt to offset the payment of the administrative fees that is required by
statute.
In the event PCSD acquires the processing of immobilizing, storing and disposing of
abandoned vehicles, tow truck companies will lose the large increase to their business,
which was directly related to the statute changes instituted by the Arizona Legislature in
2005. PCSD statutory oversight will, at a minimum, mandate tow truck companies to
pay an administrative fee of $150.00 per each vehicle where a release and an
abandoned title are required.
ARS 28-121 indicates that any subject refusing to comply with any part of ARS 28-3515
would be guilty of a class 2 misdemeanor.
28-121. Violation; classification; exception; civil traffic violation; penalty assessment
A. A person who violates a provision of this title or who fails or refuses to do or perform an act
or thing required by this title is guilty of a class 2 misdemeanor, unless the statute defining the
offense provides for a different classification. This subsection does not apply to any provision or
requirement of chapter 3, 5, 7 or 8, chapter 9, article 4 or chapter 10, article 10 of this title.
Summary
Statutorily PCSD is authorized to collect all administrative fees as well as immobilize,
store and file ownership for vehicles that are unclaimed. PCSD will not violate contract
requirements on administrative fees that are collected. Once ownership has been
transferred and approved by MVD, these vehicles are then subject for sale. The fees
collected could be then placed within the county’s general fund. In closing this program
will increase due process for vehicle owners, assure the proper investigation and outprocessing for each abandoned vehicle, and reduce the tow and storage fees incurred
for each vehicle owners.
Page 14 of 20
Raised Questions

Where do we complete more research? (It may be necessary to
contact/visit government entities with a current program.)

Due to resistance from tow truck companies, should we initiate a public
relations campaign?

Due to challenges from tow truck companies, should we have the County
Attorney’s Office provide a more thorough legal review? (Specifically, the
possible challenge about taking business away from private companies.)

If the county does not have a suitable lot for use, what cost does the
county allow for the purchase of the lot?
Page 15 of 20
Exhibit A
Cost Sheet
2 Tow Trucks
12 Work Station
$72,978.00 each
$ 2,000.00 each
Estimated capital equipments costs

$145,956.00
$ 24,000.00
$169,956.00
Does not include the possibility of purchasing a lot due to the availability of
county-owned lots.
Salaries
5 Clerical Staff
2 Public Safety Support Specialists
1 Auto Theft Detective
1 Deputy
4 Tow Truck Drivers
1 Lot Attendants
$ 40,140.00 each
$ 26,917.00 each
$ 50,668.00 each
$ 42,099.00 each
$ 42,555.00 each
$ 31,807.00 each
Estimated annual salary totals
Overall estimated totals for first year of operation
$200,700.00
$ 53,834.00
$ 50,668.00
$ 42,099.00
$170,220.00
$ 31,807.00
$549,328.00
$719,284.00
Page 16 of 20
Exhibit B
Cost Analysis
Vehicle Immobilization Program
Function (Direct)
Standby Time for Deputies
ERE
Dispatchers Time
ERE
Time to Process Paperwork
ERE
Time
1.0
1.0
.25
.25
1.0
1.0
Cost
$ 25.51
8.76
15.79
2.72
60.84
8.52
Sub-total
Total
$ 25.51
8.76
3.95
.68
60.84
8.52
$108.26
Function (Indirect)
Training (ACJIS)
Form Review/Production
$ 0.09
34.68
Sub-total
$ 0.09
34.68
$ 34.77
Overhead
Building
Work Stations
Computers
Phone
Software
Indirect Personnel
$ 22.16
1.43
.74
.11
.28
12.99
Sub-total
$ 22.16
1.43
.74
.11
.28
12.99
$ 37.71
Total
$ 180.73
Page 17 of 20
Exhibit C
Income Projection on Administrative Fees Only
Fees Collected in 2007
Projected fees from abandoned Vehicles
Projected fees from DUI Legislation
Projected Annual Total
$344,820.00
$206,100.00
$180,000.00
$730,920.00*
*This projection is based on administrative fees collected over a 15
month period and proposed legislation for the summer of 2008.
Income Projection on Abandoned Vehicles Auctioned
Anticipated Abandoned Vehicles sold annually
750 @ $2,000.00
Auction Sales
Fees Collected in 2007
Projected fees from DUI Legislation
$1,500,000.00
$ 344,820.00
$ 180,000.00
Projected Annual Total
$2,024,820.00*
*This total does not include any fees that would be collected for tow
truck services that would be provided if PCSD created its own towing
service for this program.
Page 18 of 20
Exhibit D
Vehicles Immobilized Under
ARS 28-3511
2005
2006
2007
2008
January
February
March
April
May
June
July
August
September
October
November
December
403
338
367
303
311
179
156
117
145
270
294
339
308
270
300
244
364
465
334
399
343
356
312
366
319
320
275
342
521
Totals
608*
4,352
3,222
878
Grand Total of Vehicles Immobilized by PCSD:
Total Administrative Fees Collected to date:
___
9,060
$542,220.00**
*Program started November 2005.
**Administrative Fees were not collected until November 2006.
Page 19 of 20
Exhibit E
Vehicle
Stopped
Vehicle
Immobilize
d
Owner
Abandons
Vehicle
Owner
Pays Tow
Co.
After 30 days
Tow Co. sends
notice to owner
Vehicle
Released to
Owner
After 10 days
Tow Co. files
for ownership
MVD issues
new title after
5 days
Tow Co. pays
Admin Fee to
PCSD
Violation
of ARS 283511
Owner has 10
days for
Hearing
Driver
Cited
Owner
Loses
Hearing
License
Not
Reinstated
License
Reinstated
Owner
Wins
Hearing
Vehicle
Remains in
Tow Co. for 30
days
Owner
pays PCSD
Admin Fee
PCSD Pays
All Fees &
Tow Bill
Owner
Goes to
Tow Co.
Owner fails
to go to
Tow
Company
Tow Co. receives
release from
PCSD
Tow Co.
Owns
Vehicle
Page 20 of 20