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III.Pass local ordinance establishing inspection program for Indian <br />River County. Provide inspections by establishing County owned <br />and operated inspection stations. <br />I. Should the County allow the program to lapse, the following local <br />impacts can be expected: <br />A. Loss of direct revenue to inspection stations of approximately <br />$120,000.00 annually, with some loss of jobs, and loss of <br />multiplier effect.. <br />B. Savings to Indian River County residents and businesses of <br />approximately $150,000.00 annually in direct costs,.with <br />additional indirect savings by eliminating transportation <br />to-, and waiting time at, inspection stations. Undoubtedly, <br />a major portion of this savings will be used for other purposes, <br />thus creating i.ts own multiplier effect. <br />C. Some; -presently indeterminable, increase in cost of automobile <br />insurance. <br />If. Should tie County exercise the local option, and continue to contract <br />wi_th private inspection stations, the following _impacts can be expected: <br />A. Reduction of revenue to private stations as a result of <br />vehicle owners registering vehicles in surrounding counties <br />which do not.have inspection requirements. The percentage <br />of owners who would register in other counties cannot.be <br />_ accurately determined at this time, .however 30 to 35 percent <br />does not seem unrealistic. <br />B. Increased costs to County government to coordinate, monitor and <br />regulate private inspection stations, print and control inspection <br />stickers, etc. These costs cannot be accurately determined at this <br />time, but it seems unlikely they could be covered by the estimated <br />revenues of $20,000.00 which might be generated under the existing <br />fee system, (sticker charges plus delinquent fees, less 30-35% attrition). <br />C.. Possible avoidance of anticipated increased auto insurance costs, <br />amount indeterminable. <br />III. Exercise of the local option, with the County operating its own <br />stations would have the following impacts: <br />A. Estimated capital costs for a minimum of two inspection stations <br />at $85,000.00 to $100,000.00 each. Annualized cost for a thirty <br />year amortization would be $21,000.00 to $25,000,00. <br />B. Registering of vehicles in neighboring counties (See II -A). <br />C. Insurance (See I I -C) . <br />D. Loss of income to private inspection stations (See I -A). <br />E. Increased costs to County government. County would be challenged <br />to operate system and amortize capital costs within the estimated <br />total revenues of $100,000.00. <br />Additional Comments <br />A. The impact of local vehicles being registered in neighboring <br />counties may be minimized, somewhat, by the State's permanent <br />license plate program. License plates, already issued with the <br />Indian River County name, will not be changed for -several years, <br />regardless of where the annual renewal sticker is purchased. <br />Additionally, it should be possible to include language within <br />a local option ordinance making inspection requirements applicable, <br />based upon where the vehicle is housed/parked, and/or the address <br />of -the owner, not where it is registered. <br />JUL 15 K X46 Pn 8-2 ' <br />1 <br />981 � .. <br />.I <br />