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Home My WebLink About05. Towing Service Franchise AGENDA MEMO DATE: October 11, 2011 TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: OFFICE OF THE CITY MANAGER By: Rick Esteves, Chief of Police SUBJECT: ORDINANCE ESTABLISHING TOWING SERVICE FRANCHISE PROGRAM RECOMMENDATION That the City Council introduce the attached ordinance establishing a towing service franchise program titled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY AMENDING ARTICLE VI “BUSINESS, TRADES, AND PROFESSIONS” OF THE DOWNEY MUNICIPAL CODE BY ADDING A NEW CHAPTER 12, ESTABLISHING A TOWING SERVICE FRANCHISE PROGRAM DISCUSSION Private tow operators respond to various locations throughout the City and provide police- related towing and storage. Their response to traffic accidents, impound requests, and crimes scenes is critical to the Police Department’s overall effectiveness, and is essential to providing professional service to Downey residents. This ordinance will authorize the City to charge franchise fees to a franchisee pursuant to the California Vehicle Code. The ordinance will require that franchise agreements provide, among other requirements, regulations for the safe operation of tow trucks that provide service on behalf of the City, and ensure the franchisee operates in a manner that is in the best interest of our community. FISCALIMPACT The City received $39,068.92 during the 2010-2011 fiscal year in tow company assessment fees. We anticipate similar revenues for the duration of the agreements from the franchise fees. ATTACHMENTS Draft City Council Ordinance s:\agenda memos cc 2011\10-11-11\ordinance - towing service.doc CITY OF DOWNEY, CALIFORNIA ORDINANCE NO. 11-_______ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY AMENDING ARTICLE VI (“BUSINESS, TRADES, AND PROFESSIONS”) OF THE DOWNEY MUNICIPAL CODE BY ADDING A NEW CHAPTER 12 ESTABLISHING A TOWING SERVICE FRANCHISE PROGRAM THE CITY COUNCIL OF THE CITY OF DOWNEY DOES ORDAIN AS FOLLOWS: SECTION 1. Article VI of the Downey Municipal Code is amended to add Chapter 12 to read as follows: Chapter 12-TOWING SERVICE FRANCHISE PROGRAM SECTION 6970. PURPOSE AND INTENT It is the intent of this chapter to: A. Establish a towing service franchise program whereby the City may dispatch private tow operators with a valid franchise agreement with the City to provide police- related towing and storage for police emergency situations; for abandoned or inoperable vehicles; for vehicles involved in collisions or which may constitute an obstruction to traffic because of mechanical failure; and for any other lawful purposes serving the public health, safety and welfare of the City. B. Establish a towing service franchise program whereby the City may charge franchisees a franchise fee pursuant to California Vehicle Code Section 12110(b) which permits a public entity to charge a fee in connection with the award of a franchise for towing vehicles on behalf of that public entity, provided the fee does not exceed the amount necessary to reimburse the public entity for its actual and reasonable costs incurred in connection with the towing service; C. To require that franchise agreements provide, among other things, regulations for the safe operation of tow trucks performing services on behalf of the City on city streets; to provide a fair and impartial means of distributing requests for towing services among qualified operators; to ensure that such service is prompt and reasonably priced, and in the best interest of the public. SECTION 6971. DEFINITIONS For purposes of this chapter, the following terms shall have the meaning given in this chapter: ORDINANCE NO. PAGE TWO “Tow truck operator” means a trained and/or qualified individual responsible for A. the operation of a tow car, a tow truck and/or vehicle storage facility. B. “Chief of Police” means the Chief of Police or the Chief’s designee. C. “Franchisee” means a towing company having a valid nonexclusive franchise agreement with the City of Downey to provide towing and/or vehicle storage services to the City of Downey. D. “Tow truck” or “tow trucks” means a motor vehicle which has been altered or designed and equipped for and exclusively used in the business of towing vehicles by means of a crane, tow bar, tow line, or dolly, or is otherwise exclusively used to render assistance to other vehicles. SECTION 6972. NONEXCLUSIVE FRANCHISE A. The City Council may, at its discretion, adopt a resolution granting a franchise to one or more tow truck operators to provide towing services to the City under and pursuant to a franchise agreement and the provisions of this chapter. No persons shall perform towing services for the City unless such person has obtained a franchise from the City Council. B. A franchise granted to a tow truck operator pursuant to this chapter shall be nonexclusive and shall be for a term to be specified in the franchise agreement between the City and the franchisee, but shall not exceed three years. C. No provisions of this chapter shall be deemed to restrict the number of franchises to be granted by the City Council, and no provision of this chapter shall be deemed to require the City Council to grant any franchise if the City Council determines that the grant of any such franchise is not in the best interest of the City and the public. E. All franchisees shall be subject to the terms and conditions specified in this chapter, as well as any terms or conditions specified in the franchise agreement. F. In granting a franchise, the City Council may prescribe such other terms and conditions, not in conflict with this chapter, as are determined by the City Council to be in the best interest of the City and the public. ORDINANCE NO. PAGE THREE G. A franchisee operating under a different fictitious or company name and having the same or substantially the same principals as franchisee shall not be eligible for a franchise under this chapter. SECTION 6973. SELECTION OF FRANCHISEES Prior to the City granting a nonexclusive franchise, the Chief of Police shall cause a notice of request for proposals to be published in a newspaper of general circulation for a minimum of thirty (30) days. The Chief of Police shall evaluate the qualifications of the tow truck operator or operators submitting a proposal and forward to the City Council for consideration the qualifications of the tow truck operator or operators that he/she deems most qualified together with a franchise agreement as provided in Section 6974. SECTION 6974. FRANCHISE AGREEMENTS A franchise granted by the City Council pursuant to this chapter shall be memorialized in a written agreement between a franchisee and the City. The franchise agreement shall, at minimum, contain the following: (a) Storage yard facility requirements; (b) Tow truck and tow service-related equipment requirements; (c) Standards and criteria for the handling and safeguarding of vehicles in the care and custody of the tow truck operator; (d) The terms and conditions of release or disposal of vehicles; (e) Establish maximum allowable rates and charges for towing and storage of vehicles; (f) Tow truck driver qualification and training standards; (g) Standards for the keeping, maintaining and disclosure of records and reports by the tow truck operator; (h) The term of the franchise agreement; (i) The conditions of a franchise’s suspension, termination or non- renewal; (j) An indemnification provision and minimum insurance coverage requirements; and (k) Any other terms and conditions that are determined by the Chief of Police to be in the best interest of the public. SECTION 6975. FRANCHISE FEE The franchise fee to be paid by a franchisee shall be approved by separate resolution of the City Council. Such fee shall not exceed the City’s annual cost of administration and enforcement of this chapter. Terms and provisions for ORDINANCE NO. PAGE FOUR payment of the fee shall be in the franchise agreement authorized in Section 6974. SECTION 6976. BUSINESS LICENSE Every franchisee shall have and maintain a valid license to do business in the City of Downey. SECTION 6977. CITIZEN COMPLAINTS. The Downey Police Department shall be authorized to receive written complaints from citizens regarding suspected violations of this chapter. Any such complaint may form a basis for suspension, termination or non-renewal of the franchise agreement. SECTION 2. The City Council finds, pursuant to State CEQA Guidelines Section 15378(a), that this Ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a “Project” as defined by CEQA. This Ordinance is further exempt from environmental review pursuant to the “general rule” at State CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that it may have a significant effect on the environment. SECTION 3 . If any section, subsection, paragraph, sentence, clause or phrase of this Ordinance is declared by a court of competent jurisdiction to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance, and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, phrases, or portions be declared invalid or unconstitutional. SECTION 4. The Interim City Clerk shall certify to the adoption of this Ordinance and cause the same to be published and posted in the manner required by law. ORDINANCE NO. PAGE FIVE APPROVED AND ADOPTED this ____day of_________, 2011. ______________________ LUIS H. MARQUEZ, Mayor ATTEST: ______________________________ JOYCE DOYLE, Interim City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF DOWNEY ) I HEREBY CERTIFY that the foregoing Ordinance No. 11 -_______ was introduced at a regular meeting of the City Council of the City of Downey held on the ___ day of ________, 2011, and adopted at a regular meeting of the City Council of the City of Downey held on the ___ day of ___, 2011, by the following vote, to wit: AYES: Council Members: NOES: Council Member: ABSENT: Council Member: ABSTAIN: Council Member: I FURTHER CERTIFY that a Summary of the foregoing Ordinance No. 11 -________, was published in a newspaper of general circulation in the City of Downey, on _________, 2011 (after introduction), and on ________, 2011 (after adoption, including the vote thereon). It was also posted in the regular posting places in the City of Downey on the same dates. JOYCE DOYLE_______________ JOYCE DOYLE, Interim City Clerk