The City of New Westminster’s towing service may not be a huge moneymaker, but it offsets the need to spend money in other ways.
Along with providing general towing duties, the city’s towing operators are trained to deal with a variety of after-hours services requests and emergencies including water, sewer, streets, sidewalk, parks and other emergency calls, as well as to respond to poor weather conditions, such as snow and floods, that may need to be tackled by the engineering operations division.
“By having the ability to respond quickly to all of the above emergency events, the operation is able to minimize potential costs/ damages to both the city and residents,” stated a staff report. “The need to have staff on for standby coverage has also been eliminated with the implementation of the towing service, a savings of over $85,000 in the past five years.”
According to a staff report, the towing services operation has generated more than $3.1 million in the last five-year period and performs an average of 3,000 tows each year. Of these tows, 50 per cent relate to ICBC and the ICBC Counter Attack program, 14 per cent are impounds, 19 per cent relate to the New Westminster Police Department and City of New Westminster bylaws, eight per cent are private tows and nine per cent are tow to vehicles in the city’s fleet.
The towing operation’s annual revenue is $618,175 for the past five years, while its annual expenses are $627,063. Its best financial year was 2014, when the towing operation had net revenues of $12,121.
Staff reviewing the towing service believes the after-hours service and ability to respond quickly to a wide range of emergency situations justifies the need for the service for the city and citizens.
“While towing services currently operates as a marginal business proposition, it provides added benefits and services to many,” concludes the report.
Coun. Chuck Puchmayr said the towing service has generated $3.1 million in revenues in the past five years, but it has also saved the city from $400,000 in callout and overtime wages and benefits. Overall, he said the service has provide the city with a net savings of $440,136, as the city has not had to hire additional staff for maintaining parking meters and other positions.
“I think this has been a really exciting project,” he said. “You could call it contracting in.”
Coun. Bill Harper agrees the towing operation has brought a high-quality, less expensive service to the city.
“It has paid for itself over and over and over again,” he said.
A staff report shows that the City of New Westminster’s towing rates is less expensive than a number of towing companies in the area. The rates are set to reflect ICBC’s towing and storage rate payment schedule and will be adjusted to match those rates as they’re updated.
