West Virginia Towing & Recovery Association

Transcription

1 West Virginia Towing & Recovery Association PO Box Charleston, WV Please see the attached filing of case MC-P. This case was originally filed, and mutually withdrawn to allow more time for discussion. I have included a revised version with the changes we discussed in our meetings. The last time an increase was granted I believe was in 2001 (case MC P). The next request for a rate change was in 2012 (case MC-P). This request was denied. The current case ( MC-P) has been in discussion since The commission has seen a surge in tow rate complaints in the recent months and I believe not only are the rates part of the problem but the structure of the tariff is very dated and has grey areas that can easily he misinterpreted or manipulated. Please accept this as a request to re-open the rate case as the Association and the Commission have met several times on this. Thank you. Chris Reed- President

2 .~.,,. :: WEST VIRGINIA TOWING & RECOVERY ASSOCIATION PO BOX Charleston, Wv RE: Case # MC-P As requested this correspondence contains a basic outline for the statewide rate package requested by the West Virginia Towing & Recovery Association for third party towing. All towing companies in West Virginia are not members of the association and by no means is this rate package intended to be forced upon any company that is not interested in the change. The statewide rates have only seen an adjustment a couple of times in over 20 years. Most recently being about 6 years ago. Costs of doing business and being able to offer a competitive wage to our employees have become more than challenging to say the least. With the new emission laws requiring the DEF systems on the trucks 5 years ago, ANSI uniform requirements, and new healthcare rules, towing companies can no longer keep their heads above water and have been forced to raise their rates to their customers. Third party towing is different from ordinary towing and the costs and responsibilities are much higher. You must provide service 24 hours a day 7 days a week and own enough trucks and equipment as well as employ enough people to provide immediate response to law enforcements needs. In order to keep qualified, experienced people on the job a company must be able to offer a competitive wage. Other trucking related jobs become more attractive to drivers when they offer better wages and benefits and are less demanding. Just the equipment on the trucks alone runs into the thousands of dollars. Training is a big expense also. Accident response requires skills that are not called for in ordinary towing. Getting an operator properly trained and certified is a huge expense to a company. Especially if this operator leaves in 6 months for better pay elsewhere. The costs of unclaimed abandoned vehicles that are towed, stored, processed and disposed of can be significant as well. Administrative costs to notify registered owners and lienholders, man hours to prepare the vehicle for disposal, tire disposal, gas tank disposal and the cost to retow the vehicle to its final destination far outweigh the compensation received for the salvage. With more and more emphasis being placed on highway safety and the responsibility we have to the motoring public, companies who perform third party towing are being held to a much higher standard pertaining to employees and equipment now than ever before. I would ask that you add up todays cost of the investment and compare it to the return based on todays rates and then factor in the costs of insurance, fuel, and wages. We look forward to meeting with you to discuss the restructuring of the tariff and rate changes as well as answering any questions you

3 may have for us. We will be happy to provide any further information that the staff may need to better understand our requests. Thank you. Chris Reed- WWR9 President

4 The rates requested below are for basic towing due to moving violation impounds where the vehicle is undamaged and keys are present to allow the vehicle to roll freely without loading assistance through the use of special equipment. Rate increase reauest: current rate p2auested rate Light Duty: (passenger cars) and $70.00 $87.00 trucks with GVW of 6000 pounds or less. *These types of vehicles require and can be safely transported by a light duty rollback or wheel lift truck. Medium DUM ( usually commercial vehic1es)with a $95.00 $ GVW 6001 Ibs to 10,ooO Ibs. *These vehicles require the use of a heavier constructed rollback bed or wheel lift or, an under reach with medium duty fork attachments to safely tow. Heaw DW: commercial vehicles with a GVW $ $ of 10,000 Ibs to 26.W Ibs. and/or dual rear wheels. *These vehicles require the use of a heavy duty wrecker with a driver holding a class A CDL license. These types of tows are also more labor intensive as the driveline or axle must be removed to tow safely and correctly. Job specific tools such as axle caps, drfve line straps, and U- joint press clamps along with brake pins, brake buddies, air line connectors and light bars are also required when towing heavy duty. *The trucks required to tow heavy duty are also subject to FET tax when purchased and also requires filing form 2290 and paying the heavy highway use tax annually as well as IFTA filings and payments if the truck is licensed to cross state lines. Our border companies struggle with this due to their geographic locations. Suwr Heaw Dutv: commercial vehicles with N/A $ a GVW of 26,001 or more. These types of vehicles are dual wheel, tandem axle commercial vehicles which require the same job specific tools and qualify for the same tax liabilities as above. The driver must hold a class A CDL license as well. These types of vehicles require the use of a heavy duty hydraulic wrecker with under reach. Companies who tow super heavy are responsible to obtain over weight blanket permits for each truck.

5 ent (Towing only) Special Equipment for towing and transporting disabled or impounded vehicles or vehicles removed from private property where no keys are present or the vehicle has a malfunction preventing it from rolling freely onto a rollback or while being towed using a wheel lift. e Doilies are a commercially manufactured set of wheels and axles designed to carry one end of a vehicle while in tow to prevent the vehicles tires from contacting the roadway. Dollies are required when towing an all wheel drive vehicle with a wheel lift and or when a vehicle is in park and no keys are available. Dollies are quite expensive with price ranges anywhere from $1200 to upwards of $2,000. Dollies also require maintenance such as tire replacement, strap replacement, and reguiar service on wheel bearings and axles. Currently our rates for dollies range from $30 to $SO per use. Per use being defined as per invoiced tow. Dollls: Current rate $3O$x) per use Reauested rate $75.00 per use Skater- Skates are a commercially manufactured set of loading assistance tools used to load and unload a vehicle onto a rollback when the vehicle is in park and will not roll freely. There are many different kinds of skates depending on the application. Skates can be purchased from $90 up to $200 per set of 4. Currently the skate rate varies per use. Per use being defined as per invoiced tow. Skates: Current Rate Varies Reauested rate $50 Go-Jacb : Go-Jacks are a commercially manufactured set of jacks on casters designed to lift each individual wheel of a vehicle and make the vehicle movable. Go-jacks are most commonly used to move a vehicle from a parking spot in order to gain access to the vehicle for towing when the vehicle won t roll. Go-Jacks cost approx. $lo00 for a set of 4. Current rates for 2 go-jacks varies from $ per use. Go-Jacks: Current Rate varies Reauested rate $75.00

6 The rates requested in this section wiii be for accidents and recovery work only. Accident and recovery work is more labor intensive and more often than not, requires skills that are not called for in ordinary towing. Recovery equipment is much more expensive compared to rollbacks and wheel lift trucks. A recovery wrecker is equipped with two winches and an extendable recovery boom designed for the recovery of overturned vehicles and vehicles that have leftthe roadway. The heavier recovery trucks are sometimes equipped with up to 5 winches and hydraulic outriggers so the truck can be operated in the same manner as a crane. Knowledge of capacities along with rigging techniques are also a requirement of recovery operators. Exposure is a factor as well in recovery work. Operators must work wherever the vehicle happens to be. Some common exposure problems are glass, jagged metal, battery acid and unfortunately sometimes bodily fluids. Recovery operators also have to deal with poison ivy, brush and briars, snakes, rushing flood waters, rain, snow and Ice all making their task more difficult than a simple tow away. Currently the PSC does not differentiate between basic tow aways and vehicle wrecks and recovery. *The rates requested below for recovery will include up to (2) snatch blocks and (2) recovery straps along with the manufacturer's supplied footage of winch line. Wrecks and recovery: Licht Duty- Passenger vehicles up to rewested rate $ Ibs. GVW Medium Duty- vehicles from 6,001 Ibs to $ ,000 Ibs GVW -vehicles from 10,000 to $ ,000 SuDer Heavy Duty-vehicles with a GVW of 26,001 and up. These rates should be based on the type of 30 ton wrecker $ ton wrecker $ ton wrecker $ Equipment used to perform the recovery.

7 It will be agreed upon that by adopting the new rate agreement and tariff structure that all original special equipment entries will be deleted with the exception of the items included below. Ail new requests will have to be approved by the PSC. Also, when approving special rates each company should be awarded the same rate no matter what their geographical location. This formula may work well with other utilities but not towing. Your location does not determine the wsts associated with operating a towing company. Companies must provide proof to the PSC that they actually possess the equipment that they are requesting rates for as well. No comcanv w ill be forced to acceot the new tariff and no comoanv will lose what thev currentlv have if thev choose not to adodt the new tariff. Accident coordinator - The accident coordinator charge of (1) hour for any non-commercial accident that is transported from the accident scene to the carriers storage facility. This fee covers all accommodations for insurance adjusters, vehicle owners, law enforcement, salvage haulers, and any administrative duties related to the vehicle. The accident coordinator on a commercial accident is charged hourly as he or she is a liaison between the towing company and the scene commanders. It is the coordinators job to see that all necessary equipment is brought to the scene as needed, direct line of communication with the vehicles owner and insurance company while on scene and at the office. It is also the coordinators duty to take necessary pictures while on scene and communicate with metro communications and the DOH officials when traffic patterns are changed due to the accident. Accident coordinator fee: current rate reauested rate $60- $90 varies $90.00 Additional recovery equipment such as snatch blocks and recovery straps that are not included in the recovery rate of the wrecker. Snatch blocks (additional after 2) Light Duty $10.00 per use Medium Dm $20.00 per use Heavy Duty $30.00 per use Miscellaneous recovery equipment- rental cost plus 35% Subcontracted services " Non reusable cleanup materials u (Floor dry, absorbent pads and booms, disposable coveralls, gloves etc.)

8 A rotator is a heavy duty wrecker that, when used as designed, sits on outriggers and has a 360 degree boom rotation acting as a crane to recover extremely heavy objects or objects that need to be picked up and placed in another location. The rigging equipment required for use on a rotator is extremely expensive and can easily exceed $25,000 and must be replaced when it shows signs of wear. High grade tagged, and certified grade 80,100, and 120 chain from X inch up to W is common on most rotators. Along with shackles, foundry hooks, spreader bars, eh. puts a rotator in the same cost classification as a crane. Currently, the cost of a rotator depending upon its capacityexceeds a half million dollars plus FET. The rotator rates requested will onlv be applied when the equipment is used as designed. If the boom pin is not released to rotate then the recovery rates for super heavy recovery only shall apply. Rotator rates will also include the use of up to (2) heavy duty snatch blocks and (2) heavy duty recovery straps as well as the manufacturer's supplied footage of winch line. Rotator rates only to be included in the tariff of companies who have a rotator registered with the psc. Reauested rate ton rotator S8SO.W per hr (4 hr min) ton rotator $ per hr (4 hr min) *Not every company in West Virginia chooses to own a rotator. These trucks are extremely expensive to purchase, equip, and maintain but offer a very important service when the need arises such as a tractor trailer rollover., small plane crash, or an emergency involving a piece of heavy equipment.

9 Storage Rate Reauest Currently storage rates are applied when a vehicle is towed to the carriefs place of business. All city and county towing policies have strict guidelines to follow on the type of storage facility a company must maintain in order to be included in the towing rotation for their perspective area. Most all ordinances require a completely fenced storage area capable of storing multiple vehicles outside. The fence must be of a material that shields the damaged and disabied vehicles from public view. Some municipalities, such as Charleston, require outdoor storage lots to be paved. Most storage facilities must be well lit and some even provide video surveillance of the lot. Indoor storage is also a necessity for towing companies as they have a responsibility to the insurance companies to protect the vehicle from the elements if repairable and presewe the salvage value if it is not. The costs associated with the upkeep of a qualified storage facility are climbing as are the property taxes assessed to provide such a facility. Storage rate: current rates reauested rates Passenger vehicles outside $15.00 $25.00 inside $25.00 $35.00 Trucks with GVW of outside $25.00 $ Ibs to lo.oo0 Ibs inside $30.00 $45.00 Trucks with GVW of outside $30.00 $ ,000 or more inside $40.00 $50.00 Buses and trailers outside $40.00 $50.00 $70.00 $80.00 Cargo (non-hazardous) outside $0.25 per square R. $0.50 Inside NA $0.75 Hazardous outside $0.50 $1.00

10 Additional Labor The current labor rate is $30 per hr per man. A plumbing company charges $75 per hr for a plumber. The rate for the operator of the truck is built in to the rate on the truck which drastically reduces the revenue that the truck is allowed to make requiring towing companies to include an extra man in the truck to perform the rigging, securing, and sweeping up the debris at the accident scene. If these tasks were left to the driver, the truck would operate at a loss after calculating the insurance, wages, maintenance and other costs of doing business. A company cannot employ extra people to be ready as needed. Therefor most commonly either a shop mechanic or another operator will fill the position as the extra man. A shop mechanic performing his assigned job generates about $65 hour in the shop. A second operator could be towing at his respective rate as well. Utilizing either of these employees at the current rate forces the company to take a loss of revenue. A trained and nationally certified towing operator should be a chargeable line item in the tariff. Companies spend thousands on training for their operators to be certified in his or her level of operation. Some states even require companies to employ certified operators to be included on their police rotations. This develops a level of professionalism for the towing industry as well as increasing the safety aspect of the job. This year, statistically towing operators have been struck and killed on the job at a rate of 5 to 1 over other emergency personnel. These stats are taken from the federal TlMS training program. Also, keeping quality employees has become almost impossible due to the boom in the oil and gas industry. Towing companies cannot currently compete with the wages the oil and gas industry is providing for trucking related jobs. A company must be able to profit from the employee as well as pay the costs such as workers comp. compliance programs such as the DOT required random drug testing and any health care insurance that may be required just to name a few. All while providing a decent enough wage to keep him or her employed for the company. This area of the tariff has shown little to no increase over the years but is a huge expense to a towing company. Additional labor: current rate $30 per hr reauested rate $65 per hr

11 Additional Charge for Weekends, Eveninas, and Holidavs Currently our tariff provides $15 per hour premium for evenings, weekends, and holidays. While only a slight increase is requested in this area of the tariff, the definition and application of the rate is where we would like to direct your attention and make necessary changes. During recent rate cases the additional charge for weekends, evenings, and holidays has been challenged and payroll documents were requested requiring towing companies to prove that overtime wages were being paid before allowing this charge. This Is an unfair practice and we would like for it to be changed. A towing company is a 24 hour a day, 7 day a week, 365 days a year operation. Therefor, a second and third shift are often scheduled for drivers at their regular pay scale. An employee may work his weeks shift on evening or night shift at a straight pay rate. This does not constitute overtime. However, providing the service after hours and on holidays and weekends justifies an additional charge to be paid for the companfs benefit for 24 hour staffing. All businesses, not just towing, that offer after hours services charge at a higher rate than normal business hours. Additional charge for weekends, nights, and holidays- current rate reauested rate $15 per hr $15 per hr with exceptions listed below. It is notnecessary for a company to pay, or provide employee payroll records to justify the additional charges for weekends, nights, and holidays. Special Rate for High Risk Exposure The current rate for high risk exposure is $loo0 per accident per exposure. Requested rate structure for chemical exposure: Class 1 exposure- defined as large quantities of fuel, oil, or other chemicalsm requiring dispatching of a hazmat clean up crew. Class 11 exposure- defined as any chemical spill requiring dispatching of a licensed hazmat clean-up crew. Requested rates: Class I - $l,ooo.oo Class II- $

12 Special Equipment Reauest bv Law Enforcement Section 7 of the current tariff reads, "The following rates apply to the use of specialized equipment in towing and recovery work. Said rates shall not apply unless an appropriate member of a law enforcement agency has specifically requested the service." This is an unreasonable entry into the tariff due to the fact that nomember of law enforcement will assume that responsibility. Police officers are not educated on what equipment is or isn't needed to perform a recovery and this leaves the tower vulnerable to non payment for services provided. I would ask that the commission contact Lieutenant Bob Lilly from the Kanawha County Sheriffs Department as well as any other officer from any other area in the state that maintains the rotation dispatch list for their respective areas and discuss this tariff entry. Rules and Regulations Section 2 in the rules and regulations describes charges as" from the time the carrier leaves his base of operation and returns". We would ask that this entry be modified to read "from the time the carrier leaves his base of operation and returns the equipment to its operational condition." In most commercial accidents there is more chargeable hours of service once back to the storage yard. Unloading of the casualty and any cargo as well as putting all equipment back in service is directly related to the accident. Another example would be responding to a total burn vehicle. This leaves debris on the carrier bed that an operator would need to clean off before responding to another call.