Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Updating the Parking and Mobility Services Fee and Rate Schedule for Impound Lot (RCA-2025-00550)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Climate & Infrastructure Committee | May 22, 2025 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Resolution | Fees | Passage of Resolution updating the Parking and Mobility Services Fee and Rate Schedule. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | All Wards |
Background Analysis
In 2021, a Parking and Mobility Services Fee and Rate Schedule was established by council resolution. This schedule consolidates many different fees and rates into one document that were previously set by separate resolutions over many years. One of the top goals of the creation of this schedule was to improve efficiency in the annual review and recommendation process. Please see recommended update for 2025 below.
Customer Tow Fees for Release of Towed Vehicles
Background
Minneapolis Impound Lot towing fees were last updated in 2005 and the cost of towing vehicles has increased significantly since then. The Impound Lot first operated at a loss in 2020 and the deficit grew after the exit of the formerly lowest cost towing vendor in 2022. A loss of over $2.1M is predicted in 2025 alone. We predict losses will continue to increase without an increase to fees. A fee increase of $17 to help cover operating costs was not approved in 2023.
Council action is required to change fee amounts in accordance with City policy.
A separate action to approve new contracts with towing providers will be requested through Administration and Enterprise Oversight Committee on May 19.
Recommendation
Public Works proposes to increase the customer Tow Fee from $138/tow to $222/tow; the amount forecast for impound lot operations to be self-supporting (revenue neutral). Using the Consumer Price Index (CPI), $222 has the same purchasing power as $138 did in 2005, due to inflation.