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HomeMy WebLinkAbout01. Approve Franchise Agreements for Towing and Storage Services[IMINUL FROM: OFFICE OF THE CITY MANAGER BY: CARL D. CHARLES, CHIEF OF POLICE DATE.- JULY 10, 2018 SUBJECT: REQUEST TO APPROVE FRANCHISE AGREEMENTS FOR TOWING AND STORAGE SERVICES RECOMMENDATION i 0 6 0 0 4 • r• MON"W"WAN i I .•0 . 1 9 0 UVA 1" 441,1119 w a I I ki 1 0 I i 0 0 6 0 0 0 0 • =NN"WIMUN i I - 6 - 1 0 0 . ON -----• - The Police Department impounds approximately 1 300 Vehicles per year. These Vehicles are impounded typically for the following: parking in "No Stopping Zones"; expired registration (over ii months); unpaid parking citations (5 or more); arrest of driver (when necessary); and for zwidence when the vehicle is involved in a crime. In June of 2015, the City approved three-year towing agreements with United Towing Service, Inc., and Titan Transportation, Inc., that ended June 30, 2018. In May of 2018, the City of owney sent out a notice for a Request for Formal Proposals (RFP) for a non-exclusive franchise agreement for towing and storage services. Two (2) companies returned proposals by the deadline of June 14, 2018; Titan Transportation, Inc. and United Towing Services, Inc. Subsequently, the Police Management Staff evaluated, rated and ranked the two (2) proposals as required in the RFP. REQUEST TO APPROVE FRANCHISE AGREEMENTS FOR TOWING AND STORAGE SERVICES JULY 10, 2018 PAGE Based on our experience working with United Towing Services, Inc. and Titan Transportation, Inc. both companies have timely responses to traffic collisions, impound requests, crime scene investigations and towing services for City vehicles. This level of service has been critical to our overall effectiveness and is essential to providing professional service to Downey residents. At Council direction, the staff has routinely attempted to support companies that are based and/or maintained within the City. As such, we believe our familiarity with the local tow companies has helped to prevent predatory towing practices from occurring. Accordingly, it is our recommendation that the City enter a contractual agreement with United Towing Services, Inc. and Titan Transportation, Inca -9 1 F Fi 9W-,TW1 There is no cost to the City. Resolution No. 11-7274 previously established a franchise fee of 20% of the tow operator's gross revenues for services provided to the City. Through the franchise fee, the City received $94,264 during the 2016-2017 fiscal year and $61,981 so far during the 2017-2018 fiscal year. We anticipate similar revenues for the duration of the agreements from the franchise fees. ATTACHMENTS Resolution Titan Transportation, Inc. Resolution —United Towing Services, Inca Attachment A — Titan Transportation, Inc. Agreement Attachment B — United Towing Services, Inc. Agreement W RESOLUTION NO. 18- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF r• APPROVING FRANCHISE AGREEMENT FOR TOWING AND STORAGE SERVICES WITH TITAN TRANSPORTATION, INC. I WHEREAS, the City of Downey desires to enter into a three-year agreement with Titan Transportation, Inc. for towing and storage services; and WHEREAS, a Public Hearing is set for July 10, 2018, to consider objections and grant franchise agreements; and, WHEREAS, a notice of such hearing was given in the manner required by law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY • r• DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Approve the Agreement with Titan Transportation, Inc. for towing and storage services for a three-year period commencing July 10, 2018 through July 09, 2021. SECTION 2. That the City Clerk shall certify to the adoption of this Resolution. APPROVED AND ADOPTED this 10th day of July, 2018. SEAN ASHTON, Mayor ATTEST: MARIA ALICIA DUARTE, CMC, City Clerk I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a regular meeting thereof held on the 10th day of July, 2018, by the following vote, to wit: AYES: Council Members NOES: Council Members ABSTAIN, Council Members ABSENT: Council Members MARIA ALICIA DUARTE, CMC, City Clerk RESOLUTION NO. 18- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY APPROVING FRANCHISE AGREEMENT FOR TOWING AND STORAGE SERVICES WITH UNITE I TOWING SERVICES, INC. WHEREAS, the City of Downey desires to enter into a three-year agreement with United Towing Services, Inc. for towing and storage services; and WHEREAS, a Public Hearing is set for July 10, 2018, to consider objections and grant franchise agreements; and, WHEREAS, a notice of such hearing was given in the manner required by law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Approve the Agreement with United Towing Services, Inc. for towing and storage services for a three-year period commencing July 10, 2018 through July 09, 2021. SECTION 2. That the City Clerk shall certify to the adoption of this Resolution. SEAN ASHTON, Mayor ATTEST: MARIA ALICIA DUARTE, CMC, City Clerk I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a regular meeting thereof held on the 10th day of July, 2018, by the following vote, to wit: AYES: Council Members NOES: Council Members ABSTAIN, Council Members ABSENT: Council Members 1 LTA F-3 :4 KV3 a M Rl MORTAromm ■ AGREEMENT BETWEEN THE CITY OF DOWNEY AND TITAN TRANSPORTATION, INC. FOR TOWING AND STO ULCES This Franchise Agreement ("Agreement"), is entered into on July 10, 2018 ("Effective Date") by and between the CITY OF DOWNEY, a Municipal Corporation and Charter City, hereinafter referred :• as "Cityand Titan Transportation Inc., a California corporation, hereinafter referred to as "Franchisee" and collectively referred to iierein as the "Parties". A. Pursuant to California Vehicle Code section r•1' City has the • to grant a •. to a tow truck operator for towing and storage services required • the abatement and removal as public nuisances, of abandoned, wrecked, dismantled, • inoperative vehicles or •. • from private • public property within the boundaries • City. B. California Vehicle Code section 121 10(b) allows City to require a fee in connection with the award of a franchise for towing vehicles on its behalf provided that the fee does not exceed the amount necessary to reimburse the City for its actual and reasonable costs *incurred in connection with the towing r`•9. C. Chapter 12 of Article VI of the Downey Municipal Code establishes a Towing Service 'Franchise Program which authorizes the City • to grant, at its discretion, a nonexclusive franchise to one or more tow truck operators to provide towing and storage services to the City and to charge a franchise fee pursuant to a franchise agreement. D. For the purpose of insuring the continued protec ' tion and preservation of the public health, welfare and convenience of the City, City desires to grant Franchisee a nonexclusive franchise agreement for towing services as defined herein within the City. E Franchisee desires to provide such towing services upon the terms and conditions set forth herein. • THEREFORE, in consideration • the promises and of the covenants and conditions •, contained, City and Franchisee mutually agree as follows: The Recitals set forth above constitute a material part hereof, and are hereby incorporated bi reference herein as though ftilly set forth herein. ATTACHMENT A City hereby grants a Franchise to Franchisee to provide Towing Services, as defined in Section 3. Franchisee shall have throughout the term of this Agreement the nonexclusive right to engage in the business of providing Towing Services requested by City within the boundaries of City as the same now exist, and within any territory City hereafter annexes, except to the extent that towing services within such territory annexed would be unlawful or violate the legal rights of another person. During the term of this Agreement, Franchisee shall provide the following Towing Services ("Towing Services") to City: A. Removing illegally parked vehicles; B. Towing inoperative vehicles as a result of traffic accident-, C. Towing vehicles as a result of mechanical breakdowns; D. Storing or impounding vehicles for investigations, evidence, or violation of the law or for any other lawful purpose; E. Remove vehicle debris from accident scene; F. Cover oil and vehicle fluids with sand at accident scenes. G. Change vehicle tires; H. Maintaining tow records of stored and impounded vehicles-, I. Provide secured storage lot for stored and impounded vehicles-, J. Provide service to start drained car battery or other vehicle malfunctions; K. Unlock vehicles. The term of this Agreement shall commence on July 10, 2018 and terminate on July 9, 2021, unless sooner terminated pursuant to the terms of this Agreement. 5. NONEXCLUSIVE FRANCHISE. Franchisee shall have the nonexclusive right to receive calls from the City subject to the terms and conditions of this Agreement, to provide Towing Services for vehicles which are involved in accidents, disabled, abandoned, impounded for evidence, impeding the flow of traffic or otherwise subject to being non -consensually towed and stored at the direction of the City. Towing Services shall be provided by Franchisees on a rotating basis as determined by the Chief of Police or his/her designee. SMORIVAI The Chief of Police, or his/her designee, has the final authority to determine disputes as to the ability or authority of Franchisee to perform Tow Services for the City. If it is determined that Towing Services are not needed and are canceled by City, acting by and through the Downey N i 1 - •; / 1` 1 1 1 / � . � 1; . 1 / ,,, - - • - • i 11' 1 - 1 •• - 1 1- • - 1 •• 1 1 i -i • 1,', •, a r- 1 • •' ' • 1 ` �' ' 1 : i 1 1 i ', - 1 -• 1' 1 i i i- 1 1 � • -- - � � `1 • _ • ' • f ` - ;i 1 1 • -/ • i - • :- i1 f, 1 -� t Franchisee's tow truck drivers must be sufficiently trained to ensure the safe and proper discharge of the responsibilities set forth in this Agreement. To ensure the proper qualifications of Franchisee's tow truck drivers, Franchisee agrees to the following terms: A. Dd r�bhjgjq�. Franchisee shall provide the name, date of birth, current photo and valid California driver's license number of all drivers employed by Franchisee in writing to the Downey Police Department Field Operations Captain. Franchisee shall notify the Downey Police Department Field Operations Captain, or his/her designee, in writing of any new drivers or any change in employment status of a current driver within five (5) days of their date of hire or change in employment status. B. Pull ice Promm. Franchisee shall participate in the Employer Pull Notice Program through the Department of Motor Vehicles. Franchisee shall notify the Downey Police Department Field Operations Captain, or his/her designee of any Pull Notices received for any of Uranchisee's current drivers. (1) Tow truck drivers employed by Franchisee shall be at least 18 years old, possess the required class driver's license to operate a tow vehicle. Franchisee must have drivers available to operate any and all tow vehicles specified in this Agreement. All drivers must be sufficiently capable and trained to ensure safe and proper discharge of their Towing Services in a safe and courteous manner. (2) All tow truck drivers shall comply with the requirements set forth in California Vehicle Code Sections 27700 and 24605. All tow truck drivers shall meet all requirements specified in Sections 2430.5 and 12520 of the California Vehicle Code. (3) During the term of this Agreement, Franchisee and/or tow truck drivers shall provide the Downey Police Department Field Operations Captain, or his/her designee, with information in writing concerning any driving citations received by the tow truck driver(s) in the immediate prior three (3) years and all information regarding any criminal convictions. (4) Franchisee's tow truck drivers shall present a neat, clean and professional appearance. Tow truck drivers shall wear uniform type pants (or shorts during warm weather) and shirts that identify the tow service company and their name (first or last). (5) The Chief of Police, or his/her designee, in his or her sole discretion, may require that Franchisee's tow truck drivers: I 10111� = Mp EI I (I• ) Undergo background checks by the California Department of Motor Vehicles and any other agency deemed appropriate to determine the safety practices of the tow truck drivers; (6) Franchisee shall not utilize a tow truck driver to render services pursuant to this Agreement if any of the following conditions exist: (a) A tow truck driver who is subject to epilepsy, fainting or loss of consciousness by reason of chronic medical condition; (b) A tow truck driver whose driving record indicates five (5) violations of traffic laws involving moving vehicles within two (2) years preceding the date of the effective date of this Agreement; (c) A tow truck driver who has furnished false information in any document submitted to City in connection with this Agreement or who has omitted to furnish all information requested by City in connection with this Agreement; (d) A tow truck driver who has been convicted of driving while under the influence of intoxicating liquor or narcotic drugs, or both, within three (3) years of the effective date of this Agreement; or (e) A tow truck driver who has been convicted of a felony, any crime involving moral turpitude, or any crime(s) specified in this Agreement within two (2) years preceding the effective date of this Agreement. (7) Notwithstanding compliance with the foregoing provisions, the City may prohibit certain tow truck drivers from providing Towing Services to the City or the Downey Police Department in its sole discretion. Such directives shall be made by the Chief of Police, or his/her designee, in writing to Franchisee. Franchisee shall install and maintain radio transmission and reception equipment allowing for two-way communication with each authorized tow vehicle. I pj J@ 3lk 0 DIN D) W in aim There shall be a Franchisee employee or agent available in person during normal business hours at Franchisee's office to handle requests for service and release of impounded/stored vehicles. Normal business hours shall be Monday to Friday, inclusive, from 7:30 a.m. to 7:30 p.m., inclusive, except state holidays. Franchisee shall have an attendant on duty after hours to accommodate the release of vehicles after normal business hours. W6190661 A tow truck driver shall give to the driver or owner of a vehicle to be stored, impounded or towed away, a business card, and a receipt with the Franchisee's name, address and phone number. The Franchisee's information shall be provided to the Downey Police Department in the event that the driver is unavailable or incapacitated. A vehicle impounded pursuant to the authority granted by local, state or federal law will be documented by Downey Police Department personnel. Franchisee shall obtain authorization from the Downey Police Department before any vehicle ordered towed, store or impoun e y the Downey Police Department can be released by Franchisee. RELEASE OF VEHICLE AFTER STORAGE / IMPOUND. Franchisee shall require proper identification and a Downey Police Department authorized release form from any person requesting release of a stored or impounded vehicle. If the person requesting the release of a vehicle does not proper identification and a Downey Police Department authorized release form, Franchisee shall not release the vehicle, but instead refer the person to the Downey Police Department for further processing. The final decision for release of a vehicle shall come from the on -duty Watch Commander, or his/her designee. Franchisee shall adhere to the decision of the on -duty Watch Commander or his/her designee. Franchisee further agrees that it will release any stored or impounded vehicle to the person presenting proper identification and a Downey Police Department authorized release form within, at a minimum, 45 minutes of presentation by a person of this documentation or upon receiving written instructions to release a vehicle by the Downey Police Department Watch Commander, or his/her designee. Franchisee further agrees that all storage or impound fees cease to accrue immediately upon presentation of such documentation, regardless of the ultimate time of release of the stored or impounded vehicle. 'Rr W PRO W D1' V iM No personal property shall be removed from the stored or impounded vehicle without prior written authorization from the Watch Commander. For purposes of this Agreement "personal property 9' means items in the stored or impounded vehicle that are not affixed to the vehicle. 18. FRANCHISEE VEHICLE STORAGE YARD FACILITY STANDARDS. During the term of this A.reement, Franchisee shall, at a minimum, comply with the following requirements and standards with respect to its vehicle storage yard facilities: A. Location of Sf�t4k�fk I - During the term of this Agreement, Franchisee's storage yard facilities and business office must be located within the jurisdictional limits of the City of Downey.• Stored vehicles should be at a single location in the City of Downey. If a secondary storage location is required by Franchisee, it must also be located within the City of Downey. The Franchisee's business office and storage yard facilities existing as of the date of this Agreement shall not be changed to a new location in the City without the prior written consent of the Chief of Police or his/her designee. M. B. StoL4gcfacilitequirements: Franchisee shall provide adequate security measures for the _y, protection of vehicles and property at all storage yard facilities. The Downey Police Department Field Operations Captain, or his/her designee, shall determine the adequacy of Franchisee's security measures and may grant additional consideration for state -of -the -art security measures, including, but not limited to, security cameras and motion sensors. At a minimum, all storage facilities shall comply with the following requirements: (1) All vehicles stored or impounded by Franchisee at the direction of the Downey Police Department or other authorized City personnel must be stored in storage yard facilities that are enclosed by a substantial wire fence or wall enclosures. The storage yard facilities must have locks for all gates, doors, or other means of access. Such fence or wall enclosures shall be not less than six (6) feet in height and shall be provided with not less than one gate, door, or other means of access of adequate width and height. The bottom edge of the fence or wall enclosure structure shall not be more than two (2) inches above the finished parking surface of the enclosed area. The top edge of the fence or wall enclosure, including all gates, doors, or other means of access shall be equipped with not less than two (2) barbed wires installed in such manner as to discourage access over the top of the fence or wall enclosure. In cases where wire mesh is attached to the roof, barbed wire will not be required. Wire mesh installation erected inside of building need not be provided with barbed wire. All fence or wall enclosures shall be maintained and repaired throughout the term of this Agreement. Any damage to such fence or wall enclosures shall be repaired within twenty-four (24) hours to ensure proper protection for the stored or impounded vehicles. All storage yard facility structures, including walls or fences, shall meet the requirements of the City of Downey Municipal Code, and shall be approved by the Downey Police Department Field Operations Captain, or his/her designee. (2) The storage yard facilities shall have capacity to store a minimum of 100 vehicles. (3) The security measures provided for the storage yard facility shall be adequate to preclude theft, vandalism or damage by activity while in Franchisee's lot. The storage yard facility and lot shall be configured in such a way that no vehicles shall be left parked or stored on the public streets at any time. C. During the term of this Agreement, all storage yard facilities must be available for inspection upon request by the Downey Police Department. 7 D. All necessary vehicle storage yard facilities needed to meet the minimum requirements o this section shall be the sole responsibility of Franchisee. All necessary approvals for such storage yard facilities shall comply with the applicable provisions of the Downey Municipal Code, and/or the appropriate State or County codes. Compliance with this subsection shall not be deemed to create any duty by the City to award a permit to Franchisee. E. The Downey Police Department may inspect Franchisee's storage yard facilities used under this Agreement at any time during normal business hours. Franchisee must have equipment for and have personnel proficient in unlocking locked vehicles when requested by the Downey Flolice Department. F. Throughout the term of this Agreement, Franchisee s 11 maintain in good con ition t e rea property and improvements thereon, of the storage yard facilities used in the performance of the service required by this Agreement. 19. InDOOR STOx' ?`�GE FACILITIES. . I Franchisee shall provide indoor storage facilities or sheltering cover for a minimum of three (3) vehicles sufficient to protect vehicles from the elements (i.e., wind, heat, dust, adverse weather and other forms of contamination). The Downey Police Department Field Operations Captain, or his/her designee, shall determine the adequacy of the indoor storage facilities or sheltering cover. The Downey Police Department may inspect Franchisee's indoor storage facilities used under this Agreement at any time during normal business hours. Franchisee must have equipment for and have personnel proficient in unlocking locked vehicles when requested by the Downey Police Department. The Franchisee shall take all precautions required by the Downey Police Department to avoid any damage to any evidence, such as fingerprints or stains. Vehicles taken into custody that involve evidence shall be stored in an area protected against entry by unauthorized persons. 20� EQMMhMTANDA"S.: During the term of this Agreement, Franchisee shall comply with the following equipment standards: A. At its sole expense, Franchisee shall secure the following vehicles that conform to the California Highway Patrol's Classification (CHP Class) for the gross vehicle weight ratings GV)WR) of a truck chassisI 'GVWR Ranae ahsJ CHP Class 10,000 - 19,500 A 19,501- 33,000 B 33,001 — 49,999 C 50,000 or more D .11 (1) A minimum of one (1) flatbed car carriers (Class A or Class B); plus (2) A minimum of three (3) light -medium duty tow trucks, consisting of - (a) At least two (2) light duty (Class A); plus (3) Preferably, at least one (1): (a) Heavy duty (Class C); or (b) Super heavy duty (Class D); plus ,4) Preferably, at least one (1) tow truck that is equipped to lift and carry a disabled person in a wheel chair. B. Franchisee further agrees that all Franchisee's tow vehicles shall have basic equipment for the towing of vehicles. Basic equipment shall include: 0 Fire Extinguisher & Broom 0 Shovel * Reflective Triangles e Flares 0 Trash Can(s) with Absorbent Material 0 Office to Truck Radio System o Winch C. Motorcycles that are stored, impounded, or towed at the direction of the Downey Police F-Wepartment or other authorized City personnel shall be towed by a trailer that is designed to carry motorcycles or by a flatbed truck in an upright position. D. Any and all equipment used and maintained by Franchisee must be made available for inspection by the Downey Police Department upon request. The Downey Police Department may conduct random vehicle and equipment inspections to ensure compliance with this Agreement. E. All equipment and vehicles to be used during the term of this Agreement shall be inspected by the California Highway Patrol at least one time per year. All vehicles and equipment shall display a current inspection sticker (or satisfactory proof thereof) issued by t California Highway Patrol prior to its use pursuant to this Agreement. I 0 F. Throughout the term of this Agreement, Franchisee shall maintain in good condition all vehicles, facilities, equipment and material used in the performance of the service required by this Agreement. All records required to be kept by Franchisee owner shall be available for inspection by representatives of the Downey Police Department and the California Highway Patrol. In addition, Franchisee shall submit to, at any reasonable time, an inspection of all drivers, vehicles, equipment and storage yard facilities by the Downey Police Department. Franchisee shall ixovide California HighmeA Patrol ins(bection certifications for each of its towing vehicles to the Downey Police Department. If Franchisee cannot produce an annual California Highway Patrol certification, the Downey Police Department reserves the right to require that all towing vehicles be inspected by an automotive professional certified by the State of California Bureau of Automotive Repair, selected by the Downey Police Department. All vehicle inspection fees shall be borne solely by Franchisee and shall be due and payable upon presentation of the vehicles for inspection. Any tow vehicle that fails an inspection shall not be used to provide Towing Service in the City until it is repaired and passes re -inspection. All tow vehicles shall be operated and maintained in compliance with all applicable state and federal laws and regulations. 10 A. CHP Dates Apply. The towing rates and storage fees initiated incurred by City under this - Agreement cannot exceed the towing rates and storage fees established each year by the California Highway Patrol (CHP) in accordance with the CHP/Santa Fe Springs Station -Fee Schedule for Public Tows. Franchisee's rates may be reviewed annually on June 1st to confirm that they match the CHP/Santa Fe Springs "Station -Fee Schedule for Public Tows. Franchisee must notify the Chief of Police, or his/her designee in writing of any tow rate and storage fee increases to match the CHP/Santa Fe Springs Station -Fee Schedule for Public Tows. The Downey Police Department will verify any increases. Any disputes will be reconciled through a meeting between the Chief of Police or his/her designee and Franchisee owner. If the rate and fee increases are verified, the new rates will take effect on July 1st. Franchisee agrees that Chief of Police's, or his/her designee's, determination concerning tow rates and storage fees shall be final. B. Short Storage Period* Vehicles stored eight hours or less shall be charged no more than one - day's storage fees. Each day thereafter shall be calculated by the calendar day. C. Posting of Rates. Franchiseemustmaintain a "sign listing the rates, fees and charges of all towing and storage services offered. Such sign shall be conspicuously placed in the office or other places where customer financial transactions take place. A copy of the rate schedule shall be maintained inside each tow vehicle and presented upon request by a vehicle owner or driver for any vehicle towed or stored by Franchisee. D. Cit, Responsible for Rate. In the event that a vehicle is stored or impounded at the direction of the Downey Police Department or other authorized City personnel, and it is subsequently determined that the City is responsible for the cost of such storage and/or towing, Franchisee agrees not to assess the City for costs of tow and/or storage of the vehicle. E. Storage of Vehicles in Criminal Matters. Franchisee agrees to tow and store vehicles that will be used as, or contain, evidence of crimes for the Downey Police Department without charge to City. Franchisee's inability to perform this function constitutes a material breach of this Agreement and shall provide the basis for either suspension or revocation of this Agreement, in the discretion of the City. However, Franchisee shall not be required to tow and store vehicles that will be used as, or contain, evidence of crimes if criminal charges are pending against Franchisee, or one of its owners, principals or employees. F. After Hour Vehicle Releases. Franchisee normal business hours shall be Monday to Friday, inclusive,_ from 7`.30 a.m. to 7:30 p.m., inclusive, except state holidays. However, when in the opinion of the Chief of Police or his/her designee, unusual circumstances warrant the release of an impounded vehicle or vehicles outside of the normal business hours, the Franchisee shall provide personnel at a call station where they may be contacted for such emergency release or releases during such hours. Such after -hour releases shall be charged at 50 percent (50%) of the current tow rate for release pursuant to California Vehicle Code section 22658(n)(2)(B). G. Towing of City Vehicles. Franchisee further agrees to tow and store, for a -period not exceeding five days, all City vehicles free of charge. Moreover, Franchisee agrees not to charge M • the changing of flat tires ' service to start drained car battery or • vehicle malfunctions and lockout service • City vehicles. 25. FRANCHISE FEES. IM description of the circumstances surrounding the tow (traffic collision, Department impound etc.). B. Franchisee shall maintain these records for a period of five (5) years. Such records shall be available at all times during regular business hours and shall be subject to audit by the City of Downey or an outside auditing firm contracting with the City. Failure to make available for audit all gross receipts within two business days shall constitute cause for termination of this Agreement by the City. The Franchisee shall accept payment by a valid bank credit card or cash for towing and storage charges. The Franchisee shall have sufficient funds on the premises to accommodate and make change in a reasonable monetary transaction. Franchisee shall accept payment from e M registered owner, legal owner or the agent claiming the vehicle in accordance with California Vehicle Code section 2265 2& Aj4g AhAktgwc� Franchisee's office must have a sign posted including the company name, address, phone number and hours of operation, clearly visible from the roadway. Franchisee shall not display any signs or advertising material which indicates that his/her business is an official towing service or police storage facility of the City of Downey or the Downey '•-•. 29. INROLD HARMLESS AND DUTY TO DEFEND. A. 11 demnjh��d Harmless To the fullest extent permitted by law, Franchisee agrees to indemnify, defend, protect, hold harmless, and assume all liability of the City, its elected officials, officers, employees, agents and volunteers (collectively "Indemnified Parties") from and against all claims (including, without limitation, claims for bodily injury, death, damage to property or workers' compensation benefits), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and costs, and all other professional, expert or consultant's fees) of every kind and nature whatsoever (individually, a "claim"; collectively, "claims"), whether under state or federal law, which may arise from or are in any manner related to this Agreement, regardless of any active or passive negligence or strict liability -of the Indemnified Parties, and further agrees to indemnify the Indemnified Parties, regardless of whether the Claim or Claims is/are asserted by an elected official, officer, employee, agent or volunteer of the City. Franchisee understands and acknowledges that the indemnification obligation hereunder, includes, but is not limited to, a "Type I" indemnity under California law and extends to and includes all claims arising from the active or passive negligence of the Indemnified Parties. Franchisee further understands and acknowledges that the indemnification obligation hereunder extends to workers' compensation claims made by any elected officials, officers, employees, agents or volunteers of the City which may arise from or are in any manner related to the provision of towing services by Franchisee pursuant to this Agreement. The duty to defend hereunder is wholly independent of and separate from the duty to indenmi and such duty to defend exists regardless of any ultimate liability of the Indemnified Parties. Such defense obligation, which shall be managed by Franchisee, shall arise immediately upon presentation of a Claim by any party and written notice of such Claim being provided to Franchisee. Payment to Franchisee by any Inderrinified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. Franchisee's duties to indemnify, defend and hold harmless pursuant to this Agreement shall survive the either the expiration or earlier termination of this Agreement until such time as any legal action against the Indemnified Parties for any such matters indemnified hereunder are fully and finally barred by all applicable statutes of limitation or statutes of repose. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Franchisee's duties to indemnify, defend or hold harmless pursuant to this Agreement. 30. LIABILITY INSURANCE. A. Franchisee shall, at its own cost and expense, maintain policies of insurance affording protection against third party bodily injury liability and property damage liability occasioned by reason of the provision towing services, impoundment and storage of vehicles. The minimum insurance established for the following categories are: 1. General Liability Insurance - Franchisee agrees to maintain a comprehensive general liability insurance policy with a combined single limit for bodily injury and property damage of not less than Two Million Dollars ($2,000,000.00). 2. Commercial Business Automobile Liability (as required by Section 16500.5 California Vehicle Code) - Bodily injury and property damage with a combined single limit of not less than Three Two Million Dollars ($2,000,000.00). The policy shall also include owner, non -owner, and hired auto coverage. 3. Uninsured Motorist - Legal minimum, combined single limits, 4. Garage Liability � Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than Five Hundred Thousand Dollars ($50000.00). 5. Garage Keeper's legal liability insurance coverage with limits of not less than Six Hundred Thousand Dollars ($600,000.00) for loss or injury to or destruction of any stored vehicles as a result of Fire, TheftExplosion, Riot and Civil Commotion or Vandalism and Malicious Mischief. B. Franchisee shall obtain and maintain at all times in full force and effect during the term of this Agreement all insurance policies and coverage listed above, which shall not be canceled prior to the termination of this Agreement.. The insurance provided under this Section shall include an endorsement page(s) naming "the City of Downey, its elected and appointed officials, officers, employees, agents, and volunteers as additional insured. Franchisee agrees to deliver a copy of all insurance policies, endorsements, and certificates to the Downey Police Department, &*TORU&AMlp(r �-enien�t-of the Towing Services. C. Franchisee agrees that its insurance shall be primary insurance with respect to any claims, losses, or liability arising from the provision of towing services by Franchisee pursuant to this Agreement, and that the insurance carried by the City of Downey shall be excess and not contributory with the insurance provided by Franchisee. Franchisee further agrees to provide an endorsement to its insurance policies with such language. D. Franchisee agrees to notify City in writing at least thirty (30) days prior to any cancellation or reduction in coverage in Franchisee's insurance coverage for any insurance providing coverage M for the services relating to this Agreement. Franchisee further agrees that it will provide the City with prompt and timely notice of any claim made or suit instituted arising from or any way related to the provision of towing services pursuant to this Agreement. Defense coverage must be in addition to policy limits. If umbrella coverage is used, it must include drop down coverage if underlying coverage does not apply, and the umbrella policy must have the same starting and ending date as the primary policy. E. Franchisee shall have the sole right to select its insurance carrier(s), provided such carrier lawfully transacts business in the State of California. However, all insurance required by this Agreement must be issued by companies admitted to do business in California, with an A.M. Best's rating of ANII or better, unless these requirements are waived by the City Attorney of the City due to unique circumstances. In the event the City Attorney determines that the work or services to be performed under this Agreement creates an increased or decreased risk of loss to the City, Franchisee agrees that the minimum limits of any insurance policies and/or performance bond required by this Agreement may be changed accordingly upon receipt of written notice from the City Attorney; provided that Franchisee will have the right to appeal a - determination of increased coverage by the City Attorney to the City Council of the City within ten (10) days of receipt of notice from the City Attorney. F. Franchisee shall not perform any services pursuant to this Agreement unless and until all insurance policies and coverage set forth herein are obtained and copies of said policies, endorsements and certificates are provided to the City in accordance with the provisions specified above. 31. WORKERS COMPENSATION INSURANCE. Franchisee's employees shall be covered by Worker's Compensation Insurance in an amount and form to meet all applicable requirements of the Labor Code of the State of California, and any other insurance requirements_ that may be required under federal, state, and/or local law. 32. ASSIGNMENT* Franchisee shall not sell, transfer, lease, assign, sublet, mortgage or dispose of in whole or in part, either by forced or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, or any rights or privileges herein granted, without the prior written consent of the City Council. For purposes of this Section, an acquisition by any person, group, partnership or other entity of at least 10% of the Franchisee shall be considered a sale, transfer or assignment. The approval of a transfer or assignment of this Agreement shall be conditioned upon Franchisee's sale or disposal of all ownership rights in Franchisee's tow truck business. If Franchisee desires to transfer or assign its rights in the tow truck business, because he or she _ intends to sell or dispose of all interests in the tow truck business that is authorized to perform towing services on behalf of City, Franchisee shall make -a written request to the Chief of Police for a transfer or assignment of the Agreement. The written request, along with a deposit fee of one thousand dollars ($1,000.00) to cover the City's reasonable investigation costs, and review of the proposed sale agreement or other document evidencing disposal of the tow truck business shall be submitted to the Downey Police Department at least one hundred twenty (120) calendar days before the requested effective transfer or assignment date. The City shall investigate the 16 proposed transferee or assignee and determine whether the transferee or assignee is qualified to serve as a tow truck operator pursuant to the criteria and requirements set forth in this Agreement and under local and State law. If the Downey Police Department determines that the proposed transferee or assignee is qualified to be a tow truck operator, it will recommend that the City Council approve the transfer or assignment. Such decision shall be in the sole and absolute discretion of the City Council. Upon completion of the investigation process, the City shall provide Franchisee with an accounting of the total amount of administrative and legal costs associated with the City's review of Franchisee's request for a transfer or assignment of the Agreement, and refund of a portion of the initial $1,000 deposit or request additional funds as appropriate. Any attempt to sell, transfer, lease, assign or otherwise dispose of the Agreement without the prior written consent of the City Council shall be null and void. Franchisee assumes all risk in the event of damage, theft, fire of the vehicles or any property towed and stored by Franchisee, its employees or agents. Any and all claims, demands or liability arising out of or encountered in connection with this Agreement shall be borne by Franchisee. IRT, MWITW W IN FA a WNIOLD - -- COMMUNICATIONS. The Field Operations Captain, or his/her designee, shall conduct meetings to discuss issues of concern with respect to performance by Franchisee under the Agreement. These meetings shall be mandatory for the operator, or his/her designee. The Downey Police Department shall give the operator five (5) days advance written notice of these meetings. Franchisee agrees that failure to comply with the terms and conditions of this Agreement shall be cause for either a WRITTEN WARNING, SUSPENSION OR TERMINATION OF THE AGREEMENT, as set forth in this Section. The Downey Police Department will investigate alleged violations of this Agreement and/or violations of Federal, State or local laws in the provision of Towing Services pursuant to this Agreement. Franchisee will be notified of the findings in writing within thirty (30) days of completion of the investigation. Franchisee acknowledges that it shall be subject, and consents, to integrity checks to ensure that it is complying with the terms of this Agreement, and that its employees are performing their duties in a manner suitable for provision of Towing Services to City residents and members of the public. The Franchisee shall be notified of the results in writing within 14 days of such an "integrity check." Franchisee will be billed for the actual costs incurred for such an event(s) in its entirety up to a maximum of $1,000 per occasion. Franchisee agrees to pay for up to two such "integrity checks" annually. 17 The Field Operations Captain shall use the following guidelines for action against Franchisee if Uranchise is found in violation of this Agreement. This is only a guide, with the Field *perations Captain having discretion for serious violations of the Agreement, such as criminal iffenses. 2 nd Violation within 12 consecutive months WRITTEN WARNING 3 rd Violation within 12 consecutive months 30 day SUSPENSION r,,., , T=o a ion wittim I Y. consecutive montns 60 day SUSPENSION There shall be no appeal process for written warnings issued to Franchisee by the Downey Police Department. However, in the event the Downey Police Department serves Franchisee with a notice of suspension, Franchisee may request a hearing within seven (7) calendar days by submitting a request in writing to the Chief of Police. The hearing shall be held as soon as practicable. The hearing shall be conducted by the Chief of Police, or his/her designee. Franchisee shall be entitled to present all relevant information, evidence and circumstances in support of its position. Franchisee shall be notified in writing of the Chief of Police, or his/her designee's ' final decision concerning the suspension within seven (7) calendar days of the date of the hearing - Franchisee may appeal the Chief of Police's or the Chief s designee's decision concerning a suspension for a hearing de novo before the City Manager, or his/her designee. Franchisee must serve a written notice of appeal on the City pursuant to the notice provisions set forth herein within ten (10) calendar days of the date upon which the Chief of Police, or his/her designee's, decision becomes effective. Franchisee's notice of appeal must set forth the grounds for its appeal in clear and concise language, which shall include a summary of the claimed factual or decisional error. If Franchisee fails to request a hearing or appeal within the specified deadlines ' or fails to appear at a scheduled hearing or appeal, the action taken by the Chief of Police, or his/her designee, shall be final and the suspension shall take effect upon written notification to Franchisee by the Chief of Police. The City Manager, or his/her designee, shall conduct the hearing on the administrative appeal. The hearing shall be held as soon as practicable, but in no event later than thirty (30) days from Parties agree in wrn o an extension of time for the hearing. The City Manager, or his/her designee's, decision on an issue shall be deemed final. A suspension generally shall not take effect until the hearing and administrative appeal processes have been exhausted. However, the Chief of Police, or his/her designee, shall have the authority to suspend the Agreement effective immediately if, in the sole and absolute discretion of the Chief of Police, or his/her designee, the conduct by Franchisee or its agents is deemed to on constitute a danger to the public health, safety or welfare or constitutes a gross violation of the terms and conditions of this Agreement. C. Citizen ;;Complaints The Downey Police Departmentbe authorized to receive written complaintsfrom regarding Franchisee, and/or Franchisee's principals, officers, employees and agents pertaining to alleged violations of this Agreement and/or Federal, State or local laws. Any such complaint may be investigated by the Downey Police Department and may form the basis for disciplinary action as set forth in this Section or termination of this Agreement. A. Termination without Cause. Either • •, party may terminate this Agreement - • • ,•rr •: r• r• • • immediatelydays' written notice to the other party. Upon receipt of the notice of termination from t City, Franchisee must • • • •sal approved r • entitled •compensationo, • • • • r r -• • reimbursement • rt have been paid for but not rendered.auth r any In the event Franchisee, or any of its officers, directors, shareholders, employees, agents, subsidiaries, or affiliates is convicted; (i) of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of a contract or subcontract; (ii) under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty which currently, seriously, and directly affects responsibility as a public consultant or contractor; (iii) under state or federal antitrust statutes arising out of the submission of bids or proposals; or (iv) of violation of the conflict of interest provision of this Agreement, or for any other cause the City determines to be so serious and compelling as to affect Franchisee's responsibility as a public contractor, - including but not limited to, disbarment by another governmental agency, then the City reserves the unilateral right to terminate this Agreement upon providing Franchisee with ten (10) days' written notice of termination, or to impose such other sanctions (which may include financial sanctions, temporary suspensions, or any other condition deemed appropriate short of termination) as it deems proper. In the event that the City terminates the Agreement for cause, Franchisee shall be entitled to the hearing and appeal rights applicable to disciplinary procedures above. However, termination for cause pursuant to this paragraph shall be effective upon expiration of the ten (10) days' notification period set forth above. If any party fails to perform its obligations because of • I • labor disputes, embargoes, of •r inability to obtain laboror or • .•'e substitutes forlabor 19 or materials, governmental restrictions, governmental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond the reasonable control of the party obligated to perform, then that party's performance will be excused for a period equal to the period of such cause for failure to perform. 38. CONFLICT OF INTEREST. A *No officer or employee of the City may have any financial interest, direct or indirect, in this Agreement, nor may any officer or employee participate in any decision relating to the Agreement that effects the officer or employee's financial interest or the financial interest o any corporation, partnership or association in which the officer or employee is, directly or indirectly interested, in violation of any law, rule or regulation. B. No person may offer, give, or agree to give any officer or employee or former officer or employee of the City, nor may any officer or employee of the City solicit, demand, accept, or -ggr:R�,t gim amLin-connectiDn--wi—th—an-�-,, decision, approval, disapproval, recommendation, preparation or any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any way pertaining to any program requirement, contract or subcontract, or to any solicitation or proposal. 39. NOTICES. Any notice required to be given under this Agreement shall be given by placing such notice in the United States mail, postage prepaid, addressed as follows: Franchisee: City: Titan Transportation, Inc. Downey Police Department Attn: Omar Camacho, President Attn: Chief of Police 8282 Phlox Street 10911 Brookshire Avenue Downey CA 90241 fax 562-923-3509 Downey, CA 90241 City Attorney for the City: City Attorney for City of Downey Attn: Yvette M. Abich Garcia 11111 Brookshire Avenue Downey CA 90241 (fax) 562-923-6388 or to such other address as may be indicated by notice in writing. Such notice shall be deemed fmade when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S. mail, first-class postage prepaid and addressed to the party at its applicable address. go] AUTHORITY 1 ENTER AGREEMENT. The City • Franchisee warrant that the individuals• have signed this Agreement have the legal power, right• authority to enter into this Agreement so as to bind each respectparty • perform the c•': • •'. • :'.. r s:. • ''SEVERABILITY. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect. 42. 1 1 COSTS. If any legal action or other proceeding is brought for the enforcement of this Agreement or because of an allegeddispute, breach,default, or misrepresentation• • • • • • • •, r, r • r • • -• •, recover reasonable •fees• other costsr in that actionor proceeding, addition to any other relief to which it may be entitled. •GOVERNING LAW AND This Agreement shall be • • in accordance• governed by of the State • California. Any lawsuit brought t• enforce this Agreement shall •' brought in the appropriate court in Los Angeles County, State of California. 44. • other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be deemed a waiver and no waiver shall •' binding • in writing • partythe 45. DAYS. Any term in this Agreement referencing time, days, or period for performance shall be deemed to be calendar days and not work days. 46. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the City and Franchisee and supersedes any prior oral or written statements or agreementsbetween the City and Franchisee. No supplement, •• • or amendmentof this Agreementbe binding executed in writing • both the City and Franchisee. Franchisee represents• • s all • ;- diligence and investigation prior to entering into this Agreement, and has not• upon any representations that are not set forth• • enter into this • 21 Each and all of the terms, covenants and conditions of this Agreement shall be binding on and shall inure to the benefit of the successors and assigns of the City and Franchisee. The captions of the various sections, articles and/or paragraphs of this Agreement are for t e convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement or of any part or parts of this Agreement. F111111FOORM! In all cases, the language in all parts of this Agreement shall be construed simply, according to its fair meaning and not strictly for or against any party, it being agreed that the City and Franchisee or their respective agents have all participated in the preparation of this Agreement. The City and Franchisee shall fully cooperate with one another in attaining the purposes of this m-thm- sign any such additional documents as may be necessary, appropriate and convenient as related ffereto. w IN WITNESS WHEREOF, the City and Franchisee have caused this Agreement to executed by their respective officers hereunto duly authorized. I 1 11 By: Sean Ashton, Mayor Dated: 135112w, 'In Yv M Abich Garcia CityAttorney y e TITAN T C. By: Omar Camacho, President 9 Dated: �7 /3 12-o ( '&- Carl D. Charles Chief of Police FRANCIIISE AGREEMENT BETWEEN THE CITY OF DOWNEY AND UNITED TOWING SERVICE, INC. F0440�,W10G-�-, 1SM%11?4 a, I -- in NO= My,171067EA—FE71—ve J=MPTV and between the CITY OF DOWNEY, a Municipal Corporation and Charter City, hereinafter referred to as "City," and United Towing Service, Inc., a California corporation, hereinafter referred to as "Franchisee" and collectively referred to herein as the "Parties". 12 PEN 1911-1 A. Pursuant to California Vehicle Code section 22660, City has the authority to grant a franchise to a tow truck operator for towing and storage services required for the abatement and removal as public nuisances, of abandoned, wrecked, dismantled, or inoperative vehicles or parts thereof from private or public property within the boundaries of City. B. California Vehicle Code section 1211 0(b) allows City to require a fee in connec ion WIii the award of a franchise for towing vehicles on its behalf provided that the fee does not exceed the amount necessary to reimburse the City for its actual and reasonable costs incurred in connection with the towing program. C. Chapter 12 of Article VI of the Downey Municipal Code establishes a Towing Service Franchise Program which authorizes the City Council to grant, at its discretion, a nonexclusive franchise to one or more tow truck operators to provide towing and storage services to the City and to charge a franchise fee pursuant to a franchise agreement. D. For the purpose of insuring the continued protection and preservation of the p c welfare and convenience of the City, City desires to grant Franchisee a nonexclusive franchise agreement for towing services as defined herein within the City. E. Franchisee desires to provide such towing services upon the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the promises and of the covenants and conditions hereinafter contained, City and Franchisee mutually agree as follows: The Recitals set forth above constitute a material part hereof, and are hereby incorporated by reference herein as though fully set forth herein. k I I 1 6 1 1 WE WNW in the business of providing Towing Services requested by City within the boundaries of City as the same now exist, and within any territory City hereafter annexes, except to the extent that towing services within such territory annexed would be unlawful or violate the legal rights of another person. During the term of this Agreement, Franchisee shall provide the following Towing Services ("Towing Services") to City: A. Removing illegally parked vehicles-, B. Towing inoperative vehicles as a result of traffic accident; C. Towing vehicles as a result of mechanical breakdowns; D. Storing or impounding vehicles for investigations, evidence, or violation of the law or for any other lawful purpose; E. Remove vehicle debris from accident scene; F. Cover oil and vehicle fluids with sand at accident scenes. G. Change vehicle tires; H * Maintaining tow records of stored and impounded vehicles-, r. Provide secured storage lot for stored and impounded vehicles; J. Provide service to start drained car battery or other vehicle malfinictions; K. Unlock vehicles. The term of this Agreement shall commence on July 10, 2018 and terminate on July 9, 202 1, unless sooner terminated pursuant to the terms of this Agreement. 5� NONEXCLUSIVE. FRANCM8E. Franchisee shall have the nonexclusive right to receive calls from the City subject to the terms and conditions of this Agreement, to provide Towing Services for vehicles which are involved in accidents, disabled, abandoned, impounded for evidence, impeding the flow of traffic or otherwise subject to being non -consensually towed and stored at the direction of the City. P n V11 ro 'ded bv Franchisees on a rotating basis as etermined bv the Chief KOIN illJIM-IM Ell WA IRMEROW-1 The Chief of Police, or his/her designee, has the final authority to determine disputes as to the ability or authority of Franchisee to perform Tow Services for the City. If it is determined that Towing Services are not needed and are canceled by City, acting by and through the Downey 0 S._ COMPLIANCEWITH LAWS. Franchisee must at all times throughout the term of this Agreement, comply with the terms of this Agreement, all state and federal laws, and all current and subsequently enacted towing ordinances, rules or regulations enacted by City that are applicable to Franchisee. 9. 'BUSINESS LICENSE. Franchisee shall possess a valid City Business License prior to providing Towing Services under this Agreement. 10. RESPONSE TIME. During the term • this Agreement, �Franchisee shall arrive at the site at which the vehicle to be towed is located within fifteen (15) minutes of a verbal request for service by a member of the Downey Police Department, or other authorized City personnel. Franchisee shall be available for requests for service • the i• Police Department • • authorized City personnel, 24 hours per day, 7 days per week, 365 days per year, including holidays and weekends. No exceptions. Franchisee's dispatcher shall notify the Downey Police Department Dispatch when it cannot L i Vv5il�*Fiited rqs uest for Towing Services, shall state the reason for the delay, and provide the Downey Police Department Dispatch with an estimated time of arrival. 11. STAFFING. Franchisee shall maintain at least two (2) qualified • truck drivers to respond to requests for service • the r• '• Department • • authorized personnel at all times. 0 Franchisee's tow truck drivers must be sufficiently trained to ensure the safe and propffi discharge of the responsibilities set forth in this Agreement. To ensure the proper qualificatio of Franchisee's tow truck drivers, Franchisee agrees to the following terms: i A. bd�� ftation. Franchisee shall provide the name, date of birth, current photo and valid California driver's license number of all drivers employed by Franchisee in writing to the Downey Police Department Field Operations Captain. Franchisee shall notify the Downey Police Department Field Operations Captain, or his/her designee, in writing o any new drivers or any change in employment status of a current driver within five (5) days of their date of hire or change in employment status. B. Pull Notice Program. Franchisee shall participate in the Employer Pull Notice Program through the Department of Motor Vehicles. Franchisee shall notify the Downey Police Department Field Operations Captain, or his/her designee of any Pull Notices received for any of Franchisee's current drivers. Welm Tow truck drivers employed by Franchisee shall be at least 18 years ol possess the required class driver's license to operate a tow vehicl Franchisee must have drivers available to operate any and all tow vehicl specified in this Agreement. All drivers must be sufficiently capable trained to ensure safe and proper discharge of their Towing Services in safe and courteous manner. (2) All tow truck drivers shall comply with the requirements set forth California Vehicle Code Sections 27700 and 24605. All tow truck drive shall meet all requirements specified in Sections 2430.5 and 12520 of t California Vehicle Code. (3) During the term of this Agreement, Franchisee and/or tow truck drive shall provide the Downey Police Department Field Operations Captain,• his/her designee, with information in writing concerning any drivi citations received by the tow truck driver(s) in the immediate prior thr (3) years and all information regarding any criminal convictions. (4) Franchisee's tow truck drivers shall present a neat, clean and profession appearance. Tow truck drivers shall wear uniform type pants (or sho during warm weather) and shirts that identify the tow service comp and their name (first or last). (5) The Chief of Police, or his/her designee, in his or her sole discretion, in require that Franchisee's tow truck drivers: 11 (b) Undergo background checks by the California Department of Motor Vehicles and any other agency deemed appropriate to determine the safety practices of the tow truck drivers; (6) Franchisee shall not utilize a tow truck driver to render services pursuant to this Agreement if any of the following conditions exist: (a) A tow truck driver who is subject to epilepsy, fainting or loss Of consciousness by reason of chronic medical condition; (b) A tow truck driver whose driving record indicates ive violations of traffic laws involving moving vehicles within two (2) years preceding the date of the effective date of this Agreement; (c) A tow truck driver who has furnished false information in any document submitted to City in connection with this Agreement or who has omitted to furnish all information requested by City in connection with this Agreement,* (d) A tow truck driver who has been convicted of driving while under the influence of intoxicating liquor or narcotic drugs, or both, within three (3) years of the effective date of this Agreement; or (e) A tow truck driver who has been convicted of a felony, any crime involving moral turpitude, or any crime(s) specified in this Agreement within two (2) years preceding the effective date of this Agreement. (7) Notwithstanding compliance with the foregoing provisions, the City may prohibit certain tow truck drivers from providing Towing Services to the City or the Downey Police Department in its sole discretion. Such directives shall be made by the Chief of Police, or his/her designee, in writing to Franchisee. 13. COMMUNICATIONS, Franchisee shall install and maintain radio transmission and reception equipment allowing or two-way communication with each authorized tow vehicle. There shall be a Franchisee employee or agent available in person during normal business hours at Franchisee's office to handle requests for service and release of impounded/stored vehicles. Normal business hours shall be Monday to Friday, inclusive, from 7:30 a.m. to 7:30 p.m., inclusive, except state holidays. Franchisee shall have an attendant on duty after hours to accommodate the release of vehicles after normal business hours. 0 A tow truck driver shall give to the driver or owner of a vehicle to be stored, impounded or towed away, a business card, and a receipt with the Franchisee's name, address and phone number. The Franchisee's information shall be provided to the Downey Police Department in the event that the driver is unavailable or incapacitated. A vehicle impounded pursuant to the authority granted by local, state or federal law will be documented by Downey Police Department personnel. Franchisee shall obtain authorization from the Downey Police Department before any vehicle ordered towed, stored or impounded by the Downey Police Department can be released by Franchisee. 16. RELEASE OF VEHICLE Akf*k STORAGE / LMPOUND. Franchisee shall require proper identification and a Downey Police Department authorized release form from any person requesting release of a stored or impounded vehicle. If the person requesting the release of a vehicle does not proper identification and a Downey Police Department authorized release form, Franchisee shall not release the vehicle, but instead refer the person to the Downey Police Department for further processing. The final decision for release of a vehicle shall come from the on -duty Watch Commander, or his/her designee. Franchisee shall adhere to the decision of the on -duty Watch Commander or his/her designee. Franchisee further agrees that it will release any stored or impounded vehicle to the person presenting proper identification and a Downey Police Department authorized release form within, at a minimum, 45 minutes of presentation by a person of this documentation or upon receiving written instructions to release a vehicle by the Downey Police Department Watch Commander, or his/her designee. Franchisee further agrees that all storage or impoun ees cease to accrue immediately upon presentation of such documentation, regardless of the ultimate time of release of the stored or impounded vehicle. bmt3mig, M� MAHMMEMM No personal property shall be removed from the stored or impounded vehicle without prior written authorization from the Watch Commander. For purposes of this Agreement "personal property" means items in the stored or impounded vehicle that are not affixed to the vehicle. 18. FRANCHISEE VEHICLE STORAGE YARD kA"01* STANDARDS. During the term of this Agreement, Franchisee shall, at a minimum, comply with the following requirements and standards with respect to its vehicle storage yard facilities: A. Location of Storagg facilW: During the term of this Agreement, Franchisee's storage yard facilities and business office must be located within the jurisdictional limits of the City of Downey. Stored vehicles should be at a single location in the City of Downey. If a secondary storage location is required by Franchisee, it must also be located within the City of Downey. The Franchisee's business office and storage yard facilities existing as of the date of this Agreement shall not be changed to a new location in the City without the prior written consent of the Chief of Police or his/her designee. on b. �8toragp�_Facn, kequifem�: Franchisee shall provide adequate security measures for the protection of vehicles and property at all storage yard facilities. The Downey Police Department Field Operations Captain, or his/her designee, shall determine the adequacy of Franchisee's security measures and may grant additional consideration for state -of -the -art security measures, including, but not limited to, security Cameras and motion sensors. At a minimum, all storage facilities shall comply with the following requirements: (1) All vehicles stored or impounded by Franchisee at the direction of the Downey Police Department or other authorized City personnel must be stored in storage yard facilities that are enclosed by a substantial wire fence or wall enclosures. The storage yard facilities must have locks fo all gates' doors, or other means of access. Such fence or wall enclosure shall be not less than six (6) feet in height and shall be provided with no, less than one gate, door, or other means of access of adequate width and I height. The bottom edge of the fence or wall encloi sure structure shall n be more than two (2) inches above the finished parking surface of the L enclosed area. The top edge of the fence or wall enclosure, including all gates, doors, or other means of access shall be equipped with not less than two (2) barbe wires installed in such manner as to discourage access over the top of the fence or wall enclosure. In cases where wire mesh is attached to the roo barbed wire will not be required. Wire mesh installation erected inside )I o building need not be provided with barbed wire. All fence or wall enclosures shall be maintained and repaired throughout the term of this Agreement. Any damage to such fence or wall enclosures shall be repaired within twenty-four (24) hours to ensure proper protection for the stored or impounded vehicles. All storage yard facility structures, including walls or fences, shall meet the requirements of the City of Downey Municipal Code, and shall be approved by the Downey Police Department Field Operations Captain, or his/her designee. (2) The storage yard facilities shall have capacity to store a minimum of 100 vehicles. (3) The security measures provided for the storage yard facility sha •e adequate to preclude theft, vandalism or damage by activity while in Franchisee's lot. The storage yard facility and lot shall be configured in such a way that no vehicles shall be left parked or stored on the public streets at any time. C. During the term of this Agreement, all storage yard facilities must be available inspection upon request by the Downey Police Department. 1 a A. At its sole exr.ense, Franchisee shall secure the following vehicles that conform to the California Highway PatrW's Classification (CHP Class) for the gross vehicle weight ratings �Gv*io of a�tru&�chassisl. '!9V Rama Ibs, CHP Class 10,000 - 19,500 A 19,501- 33,000 B 33,001 — 49,999 C 50,000 or more D 91 (1) A minimum of one (1) flatbed car carriers (Class A or Class is plus (2) A minimum of three (3) light -medium duty tow trucks, consisting Of, f ,a) At least two (2) light duty (Class A); plus (b) At least one (1) medium duty (Class B); plus (3) Preferably, at least one (1): (a) Heavy duty (Class Q.- or (4) Preferably, at least one (1) tow truck that is equipped to lift and carry a disabled person in a wheel chair. (5) All trucks must have two-way radio communication equipmeni B. Franchisee ftirther agrees that all Franchisee's tow vehicles shall have basic equipment for the towing of vehicles. Basic equipment shall include: Fire Extinguisher Broom Shovel Reflective Triangles • Flares • Trash Can(s) with Absorbent Material • Office to Truck Radio System • Winch C. Motorcycles that are stored, impounded, or towed at the direction of the Downey Police Department or other authorized City personnel shall be towed by a trailer that is designed to carry motorcycles or by a flatbed truck in an upright position. D. Any and all equipment used and maintained by Franchisee must be made available for ijisp&ction by the Dolice Department upon request. The Downey Police Department may cbriddatanddin VehictO and eq qimentinspeciions to ensure compliance with this Agreement. E. All equipment and vehicles to be used during the term of this Agreement shall be inspected by the California Highway Patrol at least one time per year. All vehicles and Gj*L%:,�current insr _�section sticker or satisfactory proof thereof) issued by the California Highway Patrol prior to its use pursuant to this Agreement. 0 F. Throughout the term of this Agreement, Franchisee shall maintain in good condition al vehicles, facilities, equipment and material used in the performance of the service required by this Agreement. I After being requested to respond to the scene by the Downey Police Department or other authorized City personnel, Franchisee operator shall: A. Neither move the vehicle nor attach to any vehicle until instructed to do so by a member of the Downey Police Department. B. Shall clean up and remove any and all debris from the accident scene as required by t Downey Police Department and the California Vehicle Code. I C * Provide towed vehicle owners, when present at the scene, with a business card or other information, indicating the name of the Franchisee and address where the vehicle will be stored, the telephone number and hours of operation. M m I c anging of flat ti , •o •er vehicle malfunctions and or the h res service to start drained car battery or th lockout service on City vehicles. 25. ri RANCHISE FEE S. In order City to recover its actual costs in administering its Towing Service Franchise Program and to administer this Agreement and for the privilege of being a nonexclusive Franchisee for sydrip&-ervices.. Franchisee shall paIII Franchise Fees to City which shall be shall be due and payable as follows: 26. ITS. M description of the circumstances surrounding the tow (traffic collision, Department impound etc.). B. Franchisee shall maintain these records for A period of five (5) years. Such records shall be available at all tfiu&� d&iug regWar busintss hom and A411 b,e subject to audit by the City of Downey or an outside auditing firm contracting with the City. Failure to make available for audit all gross receipts within two business days shall constitute cause for tenninatioft of this Agreement by the City. The Franchisee shall accept payment by a valid bank credit card or cash for towing and storage charges. The Franchisee shall have sufficient ftinds on the premises to acconimodW 40 inake chan& in a reasomble monetary transaction. Franchisee shall accept poyincht ftoth the In registered owner, legal owner or the agent claiming the vehicle in accordance with California Vehicle Code section 22651.1. Franchisee's • must have a sign posted including the company name, address, phone number and hours of operation, clearly visible from the roadway. Franchisee shall not display any signs or adyttti4fig material which indicates that hjs�/fier business is an offitiAl towing service or r• sok* &0114 • the City • bowney • the MWOCY Police Depdttm�dht- "MRIGA - 11913ROM A. Du!y to Inde mdf-y/-fold -Hannless statutes of limitation or statutes of repose. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Franchisee's duties to indemnify, defend or hold harmless pursuant to this Agreement. 30� UABILITY INSIWANM A. Franchisee shall, at its own cost and expense, maintain policies of insurance affording protection against third party bodily injury liability and property damage liability occasioned by reason of the provision towing services, impoundment and storage of vehicles. The minimum insurance established for the following categories are: 1. General Liability Insurance — Franchisee agrees to maintain a comprehensive general liability insurance policy with a combined single limit for bodily injury and property damage of not less than Two Million Dollars ($2,000,000.00). 2. Commercial Business Automobile Liability (as required by Section 16500* 5 California Vehicle Code) - Bodily injury and property damage with a combined single limit of not less than Three Two Million Dollars ($2,000,000.00). The policy shall also include owner, non -owner, and hired auto coverage. 4. Garage Liability — Includes premises and operations. Coverage for bodily injury an( property damage with a combined single limit of not less than Five Hundred Thousand Dollar! ($5005000.00). 5. Garage Keeper's legal liability insurance coverage with limits of not less than Sh Hundred Thousand Dollars ($600,000.00) for loss or injury to or destruction of any store( vehicles as a result of Fire, Theft, Explosion, Riot and Civil Commotion or Vandalism an( Malicious Mischief. B. Franchisee shall obtain and maintain at all times in full force and effect during the term 0. this Agreement all insurance policies and coverage listed above, which shall not be cance e( prior to the termination of this Agreement.. The insurance provided under this Section shal include an endorsement page(s) naming "the City of Downey, its elected and appointed officials officers , employees, agents, and volunteers as additional insured. Franchisee agrees to deliver c copy of all insurance policies, endorsements, and certificates to the Downey Police Department which are subject to the approval of the City Attorney as to form, prior to the commencement o the Towing Services. C. Franchisee agrees that its insurance shall be primary insurance with respect to any claims losses, or liability arising from the provision of towing services by Franchisee pursuant to Agreement, and that the insurance carried by the City of Downey shall be excess and no contributory with the insurance provided by Franchisee. Franchisee further agrees to provide ai endorsement to its insurance policies with such language. D. Franchisee agrees to notify City in writing at least thirty (30) days prior to any cance at on o reduction in coverage in Franchisee's insurance coverage for any insurance providing coverag M for the services relating to this Agreement. Franchisee ftirther agrees that it will provide the City with prompt and timely notice of any claim made •, suit • arising • • any way • to the provision • towing services pursuant to this • Defense coverage must be in addition to f• limits. If umbrella coverage is used, it must include drop down coverage if underlying coverage ••c not apply, and the umbrella f• must have the same starting and ending •.: as the primary f• E. Franchisee shall have the • right to select its insurance carrier(s), provided such carrier lawfully transacts business in the State of •; • all insurance required by this • must be issued • companies • to do business in California, with an A.M. R-Mik rating, • ANII •,: bf uirements are waived by the City Attorney • the City • to unique circumstances. In the event the City Attorney • that the work • services • be performed •- this • creates an increased or decreased risk • • to the City, Franchisee agrees that the minimum limits • any insurance f• and/or performance bond required by this Agreement may be changed accordingly upon receipt • written notice from the City Attorney; provided that Franchisee will have the right to .r• a determination of increased coverage by the City Attorney to the City Council •' the City within ten (10) days • receipt :• notice from the City Attorney. F. Franchisee shall not perform any services pursuant to this Agreement unless and until all insurance policies and coverage set forth herein are obtained and copies of said policies, endorsements and certificates are provided to the City in accordance with the provisions specified above. Franchisee's employees shall be covered by Worker's Compensation Insurance in an amount an form to meet all applicable requirements of the Labor Code of the State of California, and any other insurance requirements that may be required under federal, state, and/or local law. 32. ASSIgN-MEIN-r. dolws(�41101- 0 e OL sale agreement or other document evidencing disposal of the tow truck business shall be submitted to the Downey Police Department at least one hundred twenty (120) calendar days before the requested effective transfer or assignment date. The City shall investigate the me 33. RISK OF DAMAGE. Franchisee assumes all risk in the event of damage, theft, fire of the vehicles or any property towed and stored by Franchisee, its employees or agents. Any and all claims, demands or liability arising out of or encountered in connection with this Agreement shall be bome by Franchisee. The Field Operations Captain, or his/her designee, shall conduct meetings to discuss issues of concern with respect to performance by Franchisee under the Agreement. These meetings shall be mandatory for the operator, or his/her designee. The Downey Police Department shall give the operator five (5) days advance written notice of these meetings. 35. DISCIPLINARY PROCEDURES. A. Compliance with Agreement Franchisee agrees that failure to comply with the terms and conditions of this Agreement shall be cause for either a WRITTEN WARNING, SUSPENSION OR TERMINATION OF THE AGREEMENT, as set forth in this Section. 17 The Field Operations Captain shall use the following guidelines for action against Franchisee if Franchise is found in violation of this Agreement. This is only a guide, with the Field Operations Captain having discretion for serious violations of the Agreement, such as criminal offenses. Is' Violation within 12 consecutive months WRITTEN WARNIN sec m Ad,kk9*aksx--.-kviithin 12 con utive onths WRITTEN WARNING 3 rd Violation within 12 consecutive months 30 day SUSPENSION 4 th Violation within 12 consecutive months 60 day SUSPENSION M constitute a danger to the public health, safety or welfare or constitutes a gross violation of the terms and conditions of this Agreement. The Downey Police Department shall be authorized to receive written complaints from citizens regarding Franchisee, and/or Franchisee's principals, officers, employees and agents pertaining to alleged violations of this Agreement and/or Federal, State or local laws. Any such complaint may be investigated by the Downey Police Department and may form the basis for disciplinary action as set forth in this Section or termination of this Agreement. UMNIH P"LORKU A. Termination without Cause. g 30 days' written notice to the other party. Upon receipt of the notice of termination from the City, Franchisee must immediately cease all work or services except as may be specifically approved by the City. Franchisee will be entitled to compensation for all services rendered prior to e iif�ciiveh&s�s of the notice of termination and for additional services specifically authorized by the City. The City will be entitled to reimbursement for any expenses that have been paid for but not rendered. B. Termination for Cause. in the event Franchisee, or any Of its officers, directors, shareholders, employees, agents, subsidiaries, or affiliates is convicted; (i) of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of a contract or subcontract; (ii) under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty which currently, seriously, and directly affects responsibility as a public consultant or contractor; (iii) under state or federal antitrust statutes arising out of the submission of bids or proposals; or (iv) of violation of the conflict of interest provision of this Agreement, or for any other cause the City determines to be so serious and compelling as to affect Franchisee's responsibility as a public contractor, including but not limited to, disbarment by another governmental agency, then the City reserves the unilateral right toterminate this Agreement upon providing Franchisee with ten (10) days' written notice of termination, or to impose such other sanctions (which may include financial sanctions, temporary suspensions ' or any other condition deemed appropriate short of termination) as it deems proper. In the event that the City terminates the Agreement for cause, Franchisee shall be entitled to the hearing and appeal rights applicable to disciplinary procedures above. However, termination for cause pursuant to this paragraph shall be effective upon expiration of the ten (10) days' notification period set forth above. 37. 147ORCE MAJEURE. If any party fails to perform its obligations because of strikes, lockouts, labor disputes' - ts of God. inability to obtain labor or materials or reasonable substitutes for labor III or materials, governmental restrict ons, goverm-nental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond the reasonable control of the party obligated to perform, then that party's performance will be excused for a period equal to the period of such cause for failure to perform. 38. CONFLICT OF INTEREST. A *No officer or employee of the City may have any financial interest, direct or indirect, in this Agreement, nor may any officer or employee participate in any decision relating to the _,�Jp;7AMTA =--1MMW%M7. interest or the financial interest of PW corporation, partnership or association in which the officer or employee is, directly or indirectly interested, in violation of any law, rule or regulation. B. No person may offer, give, or agree to give any officer or employee or nner officer or employee of the City, nor may any officer or employee of the City solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation or any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any way pertaining to any program requirement, contract or subcontract, or to any solicitation or proposal. mm, Any notice required to be given under this Agreement shall be given by placing such notice in the United States mail, postage prepaid, addressed as follows: Franchisee: City: United Towing Service, Inc. Downey Police Department Attn: Gene Frank Moore Attn: Chief of Police 11530 Ryerson Avenue 10911 Brookshire Avenue DowneL, CA 90241 (fax 562-927-9941 -Downey, CA 9�0241 City Attorney for the City: City Attorney for City of Downey Attn: Yvette M. Abich Garcia 11111 Brookshire Avenue Downey, CA 90241 (fax) 562-923-6388 or to such other address as may be indicated by notice in writing. Such notice shall be deemed made when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S. mail, first-class postage prepaid and'addressed to the party at its applicable address. go] AOL AM(qgq)L�ENTER AgREEMENNTL. The City and Franchisee warrant that the individuals who have signed this Agreement have the legal power, right and authority to enter into this Agreement so as to bind each respective party to perform the conditions contemplated herein. • sMRAUMITY� If any portion of this Agreement is declared by a court of competent jurisdiction to be •. • unenforceable, the remaining provisions of this Agreement shall continue in full force and effect. if any legal action or other proceeding is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default, • misrepresentation in connection with any provisions of this Agreement, the prevailing party, as determined by the court, shall be entitled to • reasonable •' fees and •' costs incurred in that action • proceeding, in addition to any other relief to which it may be entitled. 41 ��ZNING LAW ANI� YtN!!)L This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any lawsuit brought to enforce this Agreement shall be brought in the appropriate court in Los Angeles County, State of • HUMM M No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be deemed a waiver and no waiver shall be binding unless executed in writing by the party making the waiver. 45. DAYS. Any term in this Agreement referencing time, days, or period for performance shall be deemed to be calendar days and not work days. 46. ENTIRE AGREEMENT. This Agreement contains the entire agreement • the City and Franchisee and supersedes any prior • • written statements • agreements between the City and Franchisee. No i• ement, modification, • amendment • this Agreement shall be binding unless executed in writing by r• the City and Franchisee. Franchisee represents that it has conducted all • diligence and investigation prior to entering into this Agreement, and has not relied f• any representations that are not set •, herein as an inducement to enter into this Agreement. M Each and all of the terms, covenants and conditions of this Agreement shall be binding on and shall inure to the benefit of the successors and assigns of the City and Franchisee. EUMMM, W The captions of the various sections, articles and/or paragraphs of this Agreement are for the convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement or of any part or parts of this Agreement. In all cases, the language in all parts of this Agreement shall be construed simply, according to its fair meaning and not strictly for or against any party, it being agreed that the City and Franchisee or their respective agents have all participated in the preparation of this Agreement. Agreement anct, in connection werewitti, snall sign any such additional documents; as may be necessary, appropriate and convenient as related Jr w IN WITNESS WHEREOF, the City and Franchisee have caused this Agreement to be executed by their respective officers hereunto duly authorize . Fffll� �1-11 *14 By: Sean Ashton, Mayor Dated: Maria Alicia Duarte, CMC, City Clerk of M. • Garcia ME= 1009001111 • '.. U41slaw By: Timothy Moore, President go Dated: `7-3- 16 Carl D. Charles Chief of Police