FINANCE & ADMINISATION
	TO:	Mayor and Members of Council
	FROM:	Sheila Birrell, Town Clerk
	PREPARED BY:	Lori Diamond, Licencing Officer
	DATE OF MEETING:	2004-Nov-08
	SUBJECT:	Public Meeting- Tow Truck By-Law Amendment

RECOMMENDATION:

That a public meeting be held in January, 2005 to obtain public input on proposed amendments to the Tow Truck By-Law with the following items identified for consideration:

• A $250 cap on the fee to be charged for tows from accident scenes;
• A requirement for a police clearance check for drivers, prior to licencing;
• An additional fee of $100 be assessed with late licence renewals and re-inspections.

PURPOSE:

To obtain approval to proceed to a public meeting to gather public and industry input on possible amendments to the Tow Truck Licencing By-Law.

BACKGROUND:

Legislative Authority

Section 154 of The Municipal Act, 2001 provides municipalities with the authority to licence, regulate, and govern the owners and drivers of tow trucks. Included in this section is the ability for a municipality to establish the rates to be charged for the towing from any point within the Town to any point either within or outside of the Town and for the collection of rates charged for each tow. The Town’s general licencing powers under Section 150 of The Municipal Act, 2001 allows for the establishment of further by-law regulations for health and safety, nuisance control, and consumer protection reasons.

By-Law 2002-310

By-Law 2002-310 for the licencing, regulating and governing of owners and drivers of tow trucks operating in the Town of Markham was passed on December 10, 2002. Since then, changes to economic, safety, customer service and enforcement factors justify a review and possible amendment to the By-Law to provide regulations reflective of today’s circumstances. The Municipal Act stipulates that amendments to licencing by-laws must be subject of a Public Meeting.

OPTIONS/DISCUSSION

A schedule establishing limits on the rates or fares that can be charged

Current licencing regulations require that tow truck owners only file a schedule of the rates they charge for the towing of vehicles. The schedules include the rates for hiring of the tow truck, waiting time rates, distance rates, and additional services. Currently, there are no limits or standards on the amounts that may be charged and no consistency in the rates being charged by licensed tow trucks and firms within Markham.

The Wheels Unit of the By-Law Enforcement & Licencing Division, the unit responsible for the administration and enforcement of the By-Law has received complaints about excessive tow charges being billed. Below is a listing of charges, billed by a tow truck operator licensed by the Town. The service provided was towing from the accident scene to a tow compound and release to the vehicle owner’s repair agent two days later.

q Vehicle hook up $ 275.00

q Waiting time at the scene $ 225.00

q Winching $ 400.00

q Storage $ 130.00

Sub Total $1030.00

GST $ 82.40

PST $ 72.10

Total $ 1,118.45

Under the Highway Traffic Act, any collision involving injuries, or property damage exceeding

$1,000.00 must be reported to the police. Recently, York Regional Police implemented a collision-reporting centre for this purpose. If a collision vehicle requires towing for traffic safety, it must be taken directly to a location where repairs are made. This most often occurs before the vehicle owner has had an opportunity to advise the insurance carrier, and to arrange repair. This provides a window of opportunity for the imposition of excessive towing fees.

Based on complaints of excessive rates and new requirements for towing to collision centre, staff are recommending that a cap of $250.00 be set limiting the amount that can charged for towing services from accident scenes (subject to conditions to be set). Examples of municipalities that have already enacted limits in their by-laws, citing the consumer protection under Section 150 of The Municipal Act, 2001, are listed in the table below.

Municipal Towing Charges Limits in Place

(applicable taxes not included)

Municipality	Accident Scene	Accident Scene (Maj. Road)
Toronto	$130	$150
Vaughan	$250	na
Mississauga	$200	na
Markham (proposed)	$250	na

* Richmond Hill does not licence Tow Trucks

Requirement for a police clearance check for drivers, prior to licencing

In addition to the towing of vehicles, tow truck drivers also have the tools and skills to open locked cars, seize vehicles for creditors, and provide roadside assistance. This results in tow truck drivers normally alone in their truck attending at locations with customers who also are often alone. The customer may be a woman or a senior, alone or with children, and may be vulnerable after suffering a vehicle accident/ breakdown. With the Town’s licencing of tow truck drivers there is a public expectation of Town’s licensees to be of suitable character for the position. Currently, the Town requires a police clearance check for taxi drivers for similar reasons under public safety purposes contained in The Municipal Act, 2001. Staff are proposing similar checks be implemented for tow truck drivers.

Additional fees with late licence renewals and re-inspections

Tow truck drivers/owners are required to submit their tow truck for an annual inspection, file the necessary documents, and pay their licence renewal fees on or before June 30^th. While the majority of drivers/ owners comply, each year a number do not. This necessitates additional Wheels Unit costs to track owners/ drivers who did not renew. To recover these costs an additional fee of $100.00 is proposed

FINANCIAL CONSIDERATIONS:

The Wheels Unit projects 25 occurrences of late renewals or re-inspections and with a fee of $100.00, will generate an additional $2,500.00 in revenues next year.

ENVIRONMENTAL CONSIDERATIONS:

None.

ACCESSIBILITY CONSIDERATIONS:

None

ENGAGE 21ST CONSIDERATIONS:

None

BUSINESS UNITS CONSULTED AND AFFECTED:

None

ATTACHMENTS:

None

Sheila Birrell Town Clerk

Andy Taylor Commissioner, Corporate Services