HomeMy WebLinkAbout2013-02-06 PACKET 04.K.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #
DATE 2/6/2013
PREPARED BY
Administration
Ryan Schroeder
DEPARTMENT HEAD
ORIGINATING DEPARTMENT
COUNCIL ACTION REQUEST
Consider adopting a resolution in support of Local Deputy Registrar Services.
STAFF RECOMMENDATION:
Adopt the resolution.
SUPPORTING DOCUMENTS
® MEMO /LETTER: Memo from Ryan Schroeder.
® RESOLUTION: Draft.
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
ADMINISTRATORS COMMENTS
Administrator Date
***************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER
HAnbelscamper \Templates \City CouncilWction Form.doc
City of
Cotta Grove
Minnesota
To: Honorable Mayor and City Council Members
From: Ryan R. Schroeder, City Administrator
Date: February 4, 2013
Subject: Resolution in Support of Local Deputy Registrar Services
Background
Historically, motor vehicle licensing has occurred in the State of Minnesota through a
combination of public and privately owned Deputy Registrar offices. Expenses of running local
Registrar services are covered by fees which are set by the State. Cottage Grove is home to
the Bulletin License Center on West Point Douglas Road which provides for licensing, tabs,
and related services to the public.
Fees received by Registrars have been as follows:
Motor Vehicle Licensing:
1989: $2.00 per transaction
2001: $3.50 per transaction
2006: $4.50 per transaction
$8.00 per title transfer
2011: $6.00 per transaction
$10.00 per title transfer
Drivers License Fee:
Pre 1989: $2.00 per license
1989: $3.50 per license
2001: $4.50 per license
2005: $6.00 per license
In 2009 the Cottage Grove City Council adopted a resolution in support of a fee increase in
support of Deputy Registrar services (enclosed). It has been brought to our attention that
there is once again a need for the Legislature to adopt a fee increase to ensure that local
licensing can continue to be self supporting. At this time the Legislature is being asked to
consider an increase in the Drivers License fee which was last increased in 2005.
Council Options:
Adopt of Reject support of the proposed fee increase. Staff is recommending support of the
fee increase proposal in support of this local service. If the Deputy Registrar was a purely
market based system we may approach this differently but while expenses of providing the
service have certainly risen transaction fees have remained flat for seven years. Flat
transaction fees cannot possibly be sustainable.
Council Action:
By motion adopt the resolution in support of Local Deputy Registrar Services
RESOLUTION SUPPORTING LOCAL DEPUTY REGISTRAR
SERVICES
WHEREAS, the State of Minnesota has long established a public /private deputy registrar
system to provide citizens convenient locations to conduct local driver license and title
registration services for motor vehicles and DNR recreational vehicles; and,
WHEREAS, the State of Minnesota in 1949 established a user service fee on motor
vehicle related transactions to be retained by the deputy registrar to cover the costs of
providing the local service; and,
WHEREAS, a deputy registrar office is not subsidized by the State of Minnesota and
relies solely on this user service fee revenue to maintain their office operation including
all salaries, rent, equipment, utilities, and associated office costs; and,
WHEREAS, the State of Minnesota has shifted increased costs and responsibilities for
driver license transactions onto the deputy registrar such as regular replacement
schedules of computers and associated electronic equipment, printing of previously
supplied state forms, and expanded auditing tasks such as identification triple check and
commercial driver medical forms which require additional time and carry additional risks
and potential liability for agents that was previously the responsibility of the State; and,
WHEREAS, the State of Minnesota requires a 15 year retention schedule of all driver
license transaction documents in a secure storage facility at cost to the deputy; and,
WHEREAS, Minnesota statute 171.061 subdivision 4 (b) specifically states that the
filing fee for driver license transactions by the deputy agent "shall cover all expenses
involved in receiving, accepting, or forwarding to the department the applications and
fees required "; and,
WHEREAS, the user service fee that should fully support the cost for providing driver
license transactions was last increased in 2005 and may no longer cover the operational
costs to maintain deputy registrar offices;
WHEREAS, maintenance of local Deputy Registrar services is an important service to
the community;
NOW, THEREFORE, BE IT RESOLVED the City of Cottage Grove supports the
State Legislature in authorizing a user service fee increase in the year 2013 to maintain
local driver license and state identification card service to the citizens of Minnesota.
Passed and adopted this day of 5 201_.
RESOLUTION NO. 2009 -XX
RESOLUTION SUPPORTING MAINTENANCE OF
LOCAL TITLE AND REGISTRATION SERVICES
WHEREAS, the State of Minnesota established a public /private deputy registrar system
to provide citizens convenient locations to conduct title registration services for motor
vehicles and DNR recreational vehicles; and,
WHEREAS, the State of Minnesota in 1949 established a user service fee on motor
vehicle transactions to be retained by the deputy registrar to defray the cost of providing
the local service; and,
WHEREAS, the State of Minnesota has shifted increased costs and responsibilities onto
the deputy registrar such as regular replacement schedules of computers and
associated electronic equipment, printing of previously supplied state forms, and
expanded auditing tasks with additional risks and potential liability that was previously
the responsibility of the State; and,
WHEREAS, the State of Minnesota now competes with deputy registrar offices for the
retention of some user fees that were traditionally retained primarily by deputy registrars;
and,
WHEREAS, collectively the deputy registrar system handles over one billion dollars of
state funds for the State of Minnesota annually on a cash basis only with considerable
risk whereby dishonored checks are the responsibility of the deputy registrar in the full
amount tendered after remitting the bulk of those funds to the State; and,
WHEREAS, the user service fee that should fully support the cost for providing motor
vehicle transactions is in danger of dropping below the operational costs necessary to
maintain local deputy registrar offices. Public deputy registrars are often subsidizing the
state by use of local property tax dollars to subsidize this service. Rural areas with lower
volumes are in jeopardy of losing service.
NOW, THEREFORE, BE IT RESOLVED that the City of Cottage Grove supports the
State Legislature authorizing the acceptance of more secure alternative payments at
deputy registrar offices; and to achieve a greater retention of existing fees or a user
service fee increase to maintain local title and registration service to the citizens of
Minnesota.
Passed and adopted this day of , 200_.
Myron Bailey, Mayor
Attest:
Caron M. Stransky, City Clerk