Item - 2012.LS13.1
Tracking Status
- This item was considered by Licensing and Standards Committee on May 24, 2012. The Licensing and Standards Committee has referred this item to an official or other body without making a decision. Consult the text of the decision for further information on the referral.
LS13.1 - Interim Review of Tow Rates
- Decision Type:
- ACTION
- Status:
- Referred
- Wards:
- All
Public Notice Given
Committee Decision
The Licensing and Standards Committee referred the item to the Executive Director, Municipal Licensing and Standards, with the request to report back with the towing industry review as soon as possible, and include the following:
1. A comprehensive review and recommendation in regards to tow rates.
2. Options to allow non-cash payment of tows (such as credit or debit).
Origin
Summary
The purpose of this report is to respond to the direction from City Council to consult with the tow truck industry and other pertinent stakeholders, and to make recommendations with respect to tow truck rates, providing a rationale and criteria for such recommendations.
Accident tow rates were last reviewed in 2006. At that time, the rates were increased by 10.5%, in accordance with the indexing model developed in consultation with the tow industry. This model is the same one used in the October 2011 report from the Executive Director, Municipal Licensing and Standards ("ML&S"), which included a recommendation to increase accident tow rates by 21.6%.
As a result of the consultations and research conducted, staff conclude that there are a number of different business models in the industry with considerably different cost structures and that these cost structures are tied to overall industry conditions and regulations. As a result, a proper review of tow rates must include a comprehensive review of the regulatory regime for the industry as well as the prevailing industry conditions.
Fuel costs, which are a major cost driver for tow operators, have risen over 50% in the past six years. For this reason, staff recommend that an interim increase of 2.0% be approved by Council. This figure represents the average of the annual rates of increase in the all-items CPI for the Toronto area for the period 2005-2011. Staff recommends that the increase take effect immediately. As a component of the full industry review, ML&S will work with Corporate Finance to develop a comprehensive model to assist in the validation of base tow rates, and will report back in 2013.
This report was prepared in consultation with the Corporate Finance Division.
Background Information
https://www.toronto.ca/legdocs/mmis/2012/ls/bgrd/backgroundfile-47281.pdf
Communications
(May 24, 2012) Submission from Frank Doyle (LS.New.LS13.1.2)
(May 24, 2012) Submission from D.G. (Doug) Nelson, Executive Director, Provincial Towing Association (Ontario) Inc. and Ontario Recovery Group (ORG Inc.) (LS.New.LS13.1.3)
Speakers
Joey Gagne, President, Abrams Towing Group
Frank Doyle (Submission Filed)
Daniel Sanderson, President, North American Auto Accident Pictures Towing Division
Pete Karageorgos, Manager Consumer and Industry Relations, Insurance Bureau of Canada
Doug Nelson, Executive Director, Provincial Towing Association (Ontario) Inc. (Submission Filed)
Mark Lockwood, Manager, RBC Insurance
Suzy Goncalves, Co-Up Towing Services
Motions
That the Licensing and Standards Committee refer the item to the Executive Director, Municipal Licensing and Standards, with the request to report back with the towing industry review as soon as possible, and include the following:
1. A comprehensive review and recommendation in regards to tow rates.
2. Options to allow non-cash payment of tows (such as credit or debit).