Title
Ordinance No. 22-73 amending Section 106 (Sale of Unclaimed Vehicles) of Article 25 (Removal and Impoundment of Vehicles) of Chapter 10 (Motor Vehicles and Traffic) of the Code of the City of Colorado Springs, as Amended, Pertaining to Sale of Unclaimed Vehicles.
Presenter:
Commander John Koch, Colorado Springs Police Department
Jennifer Underwood, CSPD Evidence/Impound Manager
Frederick Stein, Public Safety City Attorney
Body
Summary:
The proposed amendment would add the option of holding auctions online, modify the publication of the auction legal notice from a single newspaper listing to a digital real-time auction list, and would update the process for vehicles that do not sell at public auction.
Background:
City Code § 10.25.101 - 10.25.106 outlines the Police Department’s authority to impound, store, and subsequently sell unclaimed vehicles. Its purpose is to ensure vehicles are impounded for lawful reasons, that there is a process by which citizens can dispute the towing and storage fees, that proper legal notice is provided to vehicle owners and lienholders, and that unclaimed vehicles subject to re-title are offered for sale to the public.
City Code § 10.25.106 (A) currently requires the impound auction to be held at the impound, or the nearest suitable place. In the past, holding the auction at the impound facility was sufficient as the customer base was relatively small. However, public interest and staffing have caused this to no longer be a cost-effective solution. Additionally, opening the auction to an online customer base allowed for a far greater audience and awareness of the auction.
City Code § 10.25.106 (B) currently requires the list of all vehicles being sold to be published in the “official newspaper of the City”. Historically, a newspaper was an inexpensive means for legal notices and local news in the absence of digital content. Today, the average cost for a weekly newspaper subscription from the Gazette (the newspaper used) is approximately $30 - $40/month which is cost-prohibitive for many. Due to the transient nature of our community with college students and military personnel, many vehicle owners are not Colorado residents, which excludes them being publicly notified their vehicle is scheduled for auction. Official legal notices are not posted in the digital content for the Gazette; therefore, anyone wanting to view the legal auction notice must have a weekly subscription, including weekends. There is no set date for this notice so citizens must read the newspaper daily to find it.
City Code § 10.25.106 (C) states the balance, if any, of the proceeds of the sale shall be paid into the police pension fund (see also City Code § 1.4.507). This requirement expired December 31, 2013. It should be updated to reflect auction proceeds will be deposited into the City general fund.
City Code § 10.25.106 (D) states if there is no bid for a vehicle at auction, the vehicle will be sold to the City for the sole benefit and use of the City.
It is recommended vehicles be offered for sale online at least twice. If they are not successfully sold after two attempts, they should be sold as scrap (No-Title), or may still be converted to City use, if approved by the Chief of Police, through the normal City use conversion process.
Previous Council Action:
N/A
Financial Implications:
The Police Department pays $5,000 annually to the Gazette for posting the public auction listing once per month. If the Police Department instead utilized the public impound page located on the City’s official website (coloradosprings.gov), there would be little to no cost to the City. City staff developed an in-house vehicle tracking system which publicly lists all vehicles impounded, as well as all vehicles pending auction in real-time.
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
City Council can adopt the proposed ordinance as presented, amend the proposed ordinance, or decline to adopt the proposed ordinance.
Recommended Action
Proposed Motion:
Move approval of the ordinance amending Section 106 of Article 25 of Chapter 10 of the Code of the City of Colorado Springs, as Amended, Pertaining to Sale of Unclaimed Vehicles.
Summary of Ordinance Language
An Ordinance Amending City Code Pertaining to the Sale of Unclaimed Vehicles and the Deposit of Auction Proceeds into the General Fund.