Dec 3, 2007 11:23 pm US/Central
Snow Tow A Bargain? Where The Money Goes
MINNEAPOLIS (WCCO) ―
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Tow trucks were out in full force after snow emergencies were called in both Minneapolis and St. Paul on Sunday, Dec. 2, 2007.
CBS
More than 2,000 cars were towed in Minneapolis and St. Paul since 4 inches of snow fell on Saturday. Many of those towed assume the cities are making a tidy profit off snow emergencies.
"They're doing it for the money, they don't care about people," said one Minneapolis woman, waiting in line at the city's impound lot.
Each Minneapolis tow costs the vehicle owner $138. However, depending on which company does the tow, the city may be paying more than the vehicle owner pays.
"It is not a moneymaker at all," said Mike Kennedy, a director in the Minneapolis Public Works Department. "Our mission is to plow snow not to tow cars."
The city uses five different companies to plow six zones in Minneapolis. Two of the companies work year-round for Minneapolis, and according to Kennedy, they must work one zone during snow emergencies as a condition of the contract. Those companies charge $54.07 and $64.96 per tow.
However, three other companies were the low-bidders to fill in on four other city zones. The prices range from $126 per tow to a high of $157.50 per tow. That's nearly $20 more than the vehicle owner would pay the city for the tow. Those companies only work for the city during snow emergencies, when demand for service is extremely high.
"We joke about it being a bargain, but it's not really a bargain, its real money," said Kennedy. "I think a lot of people are surprised at the fact that we actually have to pay more for that tow than we collect sometimes."
As Danielle Nicklay waited in a three-hour line to pick up her towed car, the knowledge that she may be getting a "bargain" was little solace.
"I don't know. It makes me feel small. I'm not feeling better at all," said Nicklay.
Kennedy said, the city charges enough to "break even" of the total cost of the impound lot. There are considerable costs to staffing the operation, including overtime costs for 24-hour operation during snow emergencies.
People who are towed also receive city parking tickets, however, all that revenue does not go to the city. Of the $34 citation, $24 goes to Minneapolis, $6 to Hennepin County and $4 goes to the state of Minnesota.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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