HomeMy WebLinkAboutStaff Report 3.F 08/04/2003AUG
CITY OF PETALUMA, CALIFORNIA
AGENDA BILL
Agenda Title:
Meeting Date:
A resolution of the City Council establishing the maximum towing
August 4, 2003
and storage charges for the City's Tow Franchise Agreements
Meeting Time: X 3:00 PM
❑ 7:00 PM
Category (check one): X Consent Calendar ❑ Public Hearing ❑ New Business
❑ Unfinished Business ❑ Presentation
Department:
Director:
Contact Person:
Phone Number:
Police & City Attorney
Tom Simms
Richard Rudnansky
778 -4382
Cost of Proposal: N/A
Account Number: N/A
Amount Budgeted: N/A
Name of Fund: N/A
Attachments to Agenda Packet Item:
1. Agenda Report;
2. Resolution establishing the maximum towing and storage charges for the City's Tow Franchise
Agreements.
3. Ordinance No. 2153 N.C.S., and attachment (Tow Franchise Agreement).
Summary Statement:
The attached resolution establishes the maximum rates for towing, storage and related services which
franchise tow operators may charge vehicle owners for services provided pursuant to the City's Tow
Franchise Agreement.
Recommended City Council Action /Suggested Motion:
Approve attached resolution establishing the maximum towing and storage charges for the City's Tow
Franchise Agreements.
Rev wed bv Finance Director:
Revievyxd bv Gtv Attorne :
ate:
Approved by City Manager:
Date:
ate.
joday's ate:
Revision # and Date Revised:
File Code:
#
July 25, 2003
r
agenda bill
7/25/03
CITY OF PETALUMA, CALIFORNIA
AUGUST 4, 2003
(Date of Meeting)
AGENDA REPORT
FOR
A RESOLUTION OF THE CITY COUNCIL ESTABLISHING THE_MAXIMUM_T_OWING_____
AND STORAGE CHARGES FOR THE CITY'S TOW FRANCHISE AGREEMENTS
(Name of Project— Use Same Language as Found for the Agenda Title on the Agenda Bill)
1. EXECUTIVE SUMMARY:
The attached resolution establishes the maximum rates for towing, storage and related
services which franchise tow operators may charge vehicle owners for services provided
pursuant to the City's Tow Franchise Agreement.
2. BACKGROUND:
The City adopted Ordinance No. 2153 N.C.S. on July 7, 2003, authorizing the City
Manager to execute non - exclusive Tow Franchise Agreements with qualified tow
operators and establishing an initial tow franchise fee. A copy of Ordinance No. 2153
N.C.S., which attaches the form Tow Franchise Agreement is attached for ease of
reference.
The tow franchise fee authorized by Ordinance No. 2153 N.C.S. is the amount to be paid
by the franchise tow operators to the City, for use of its streets and property, pursuant to
the Tow Franchise Agreement. Ordinance No. 2153 N.C.S. also authorized the City to
establish and amend by resolution the maximum rates which the franchise tow operators
may charge vehicle owners for towing, storage, and related services provided pursuant to
a Tow Franchise Agreement. These amounts are to be reflected on Exhibit A, Towing
and Storage Charges, to each executed Tow Franchise Agreement.
The maximum amounts set forth in the attached resolution are not identical for the tow
operators because these rates are negotiated individually and are generally keyed to the
individual tow operator agreements with the California Highway Patrol.
ALTERNATIVES:
a. Decline to approve resolution establishing maximum rates.
b. Direct staff to re- negotiate maximum rates.
4. FINANCIAL IMPACTS:
Nominal. In general, the maximum rates reflected in the resolution pertain only to what
the franchise tow operators may charge vehicle owners for towing, storing and related
services and do not impact City revenue or expenditures. The sole exception are the
charges for Police Special Services, which would be provided to the City at the rate of
$50 per half hour /$100 per hour. Services provided as Police Special Services include
towing and storage of vehicles impounded for evidence or criminal investigations; and
tow services-for City vehicles, -including towing, jump-starts -and -flat-tire repair, -24- hours - - - - --
a day, 7 days a week. Need for such services varies, but is estimated to average
approximately 5 hours of service per month.
CONCLUSION:
Approval and adoption of the attached resolution is recommended to establish maximum
rates which may be charged by franchise tow operators for towing, storage and related
services provided pursuant to the Tow Franchise Agreements.
6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR
COMPLETION:
Ensure that vehicle owners who must pay the City's franchise tow operators for towing,
storage or related services pursuant to the Tow Franchise Agreements are not charged
more than the maximum rates established by the City for each franchise tow operator.
7. RECOMMENDATION:
Approval and adoption of the attached resolution.
report
7/25103 (fmk)
A RESOLUTION OF THE PETALUMA CITY COUNCIL
ESTABLISHING THE MAXIMUM TOWING AND STORAGE
CHARGES FOR THE CITY'S TOW FRANCHISE AGREEMENTS
WHEREAS, Ordinance No. 2153 N.C.S. was adopted on July 7, 2003, authorizing the City
Manager to execute non - exclusive Tow Franchise Agreements with qualified tow operators and
establishing an initial tow franchise fee; and
WHEREAS, Dion's Downtown Autobody, LLC, Petaluma Towing and American Tow Service
are qualified tow operators, each of which desires to enter into a Tow Franchise Agreement with
the City; and
WHEREAS, Ordinance No. 2153 N.C.S. provides that the Council may establish and amend by
resolution the maximum rates which may be charged vehicle owners by the franchise tow
operators.
NOW THEREFORE, BE IT RESOLVED, that the maximum rates for towing, storage and
related services which may be charged by the following tow operators, pursuant to an executed
Tow Franchise Agreement, are as follows:
Dion's Downtown Autobody, LLC and Petaluma Towing:
Tow $125.00
Storage (outside) 40.00
Storage (inside) 45.00
Gate Fee 62.50
Service Call 62.50 per half hour ($125 maximum)
Police Special Services $50 per half hour /$100 per hour
American Tow Service:
Tow
Storage (outside)
Storage (inside)
Gate Fee
Service Call
Police Special Services
$120.00
35.00
35.00
60.00
60.00 per half hour ($120 maximum)
$50 per half hour /$100 per hour
BE IT FURTHER RESOLVED, that the above maximum rates for each tow operator will be
set forth in Exhibit A to their respective Tow Franchise Agreements.
7/25/03 (fmk)
1 AUG - 7 2003 3
2
4
5
6 Introduced by
7
8 Vice Mayor O'Brien
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ORDINANCE NO. 2153 N.C.S.
Seconded by
Council Member Torliatt
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA
AUTHORIZING THE CITY MANAGER TO E )MCUTE NON - EXCLUSIVE
TOW FRANCHISE AGREEMENTS WITH QUALIFIED TOW OPERATORS AND
ESTABLISHING INITIAL TOW FRANCHISE FEE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
19 FOLLOWS:
20
21 WHEREAS, the City's Police Department maintains Rotation Tow Lists which are used
22 for dispatching private tow operators to provide police - related towing and storage as part of the
23 Police Department's towing program; and,
24
25 WHEREAS, the City incurs costs in connection with its towing program; and,
26
27 WHEREAS, California Vehicle Code Section 12110(b) provides that a public entity may
28 require a fee in connection with the award of a franchise for towing vehicles on behalf of that
29 public entity, provided the fee does not exceed the amount necessary to reimburse the public
30 entity for its actual and reasonable costs incurred in connection with the towing program; and,
31
32 WHEREAS, inclusion on the City's Rotation Tow Lists confers a benefit on the private
33 tow operators because the registered owners of the vehicles towed pursuant to the towing
34 program must pay the tow operators for the tow and storage fees incurred; and,
35
Ordinance 2153 N.C.S. Page 1
I WHEREAS, t he C ity C ouncil w ishes t o g rant a n on- exclusive franchise t o q ualifyirrg
2 contractors for use of its streets and property in consideration of payment of a franchise fee duly
3 authorized by the California Vehicle Code; and,
4
5 'WHEREAS, a franchise fee of $75.00 per vehicle towed pursuant to the STOP Vehicle
6 Forfeiture /30 -Day Impound List and $20.00 per_v_ehicle towed_ pursuant_ to the Regular-Rotation
7 List does not exceed.the amount necessary to reimburse the City for its actual and reasonable
8 costs incurred in connection with its towing program.
9
10 NOW, THEREFORE, BE IT RESOLVED that the City Manager is hereby authorized
11 to execute non - exclusive tow franchise agreements with quali fying tow operators using
ID
the City
12 of Petaluma Police Department Tow List Franchise Agreement ( "Tow Franchise Agreement "), a
13 copy of which is attached hereto and incorporated herein as Exhibit 1.
14
15 BE IT FURTHER RESOLVED that the initial franchise fee shall be $75.00 per vehicle
16 towed pursuant to the STOP Vehicle Forfeiture /30 -Day Impound List and $20.00 per vehicle for
17 the Regular Rotation List.
18
19 BE IT FURTHER RESOLVED that said Tow Franchise Agreement and franchise fee
20 may subsequently be modified or amended by resolution of this Council.
21
22 BE IT FURTHER RESOLVED that the Council may establish and amend by resolution
23 the maximum rates which may be charged by the franchise tow operators, as reflected i_tr the
24 towing and storage charges attached as Exhibit A to the Tow Franchise Agreement.
25
26 If any section, subsection, sentence, clause or phrase or word of this ordinance is for any
27 reason field to be unconstitutional, unlawful or otherwise invalid by a court of competent
28 jurisdiction, such decision shall not affect the validity of the remaining portions of this
29 ordinance. The City Council of the City of Petaluma hereby declares that it would have passed
30 and adopted this ordinance and each and all provisions thereof irrespective of the fact that any
31 one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid.
32
Ordinance 2153 N.C.S. Page 2
1 This ordinance shall become effective thirty (30) days after the date of its adoption by the
2 Petaluma City Council.
3
4 The City Clerk is hereby directed to post this ordinance for the period and in the manner
5 required by the City Charter.
- -6 - - -- - -- - - -— -- -
7 INTRODUCED and ordered postedk this 16th day of June, 2003.
8
9 ADOPTED this 7th day of July, 2003 by the following vote:
10
11 AYES: Canevaro, Mayor Class, Harris, Moynihan, Vice Mayor O'Brien, Torliatt
12 NOES: None
13 ABSENT: Healy
14
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17 Mayor -
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19
20 ATTEST:
21
23 / �i/✓f/t Xlif/U�
24 Cit� Clerl
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Ordinance 2153 N.C.S. Page 3
EXHIBIT 1
CITY OF PETALUMA POLICE DEPARTMENT
ROTA'T'ION TOW LIST FRANCHISE AGREEMENT
This Agreement is entered into on , 2003 between the CITY OF PETALUMA, a
municipal corporation and a charter city ( "City "), and
( "Contractor ") (collectively
"Parties ").
RECITALS
\ i=REAS, Contractor has applied to provide towing and storage service in connection with the
City's Rotation Tow Lists;
WHEREAS, Contractor has the necessary expertise, equipment and skill to provide tow services
in response to calls generated from the City's Rotation Tow Lists as set forth in this Agreement;
WHEREAS, the City is authorized to award a franchise for such towing services pursuant to
California Vehicle Code section 12110, as may be amended from time to time, and pursuant to
the City Charter;
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Parties agree as follows;
SECTION 1 - DJEFINITIONS
"Bundling" means the practice of removing several vehicles from an area, as in the conducting of
a special proj ect or sweep, and storing them as a group, generally near the area they were
removed from, until they can be transported to the Contractor's storage area.
"Communications Center" means the Petaluma Police Department's Commtuications Center.
"City- generated tows" means the towing of vehicles in response to calls generated from the
Rotation Tow Lists included under Section 2B of this Agreement.
"City Manager" means the City Manager of the City of Petaluma, or his or her designee.
"Class 'A' Tow Truck" means a tow truck which has a manufacturer's GVWR -of at least 10,000
lbs.
"Class 'B' Tow Truck" means a tow truck which has a manufacturer's GVWR of at least 19,501
lbs.
"Class'C' Tow Truck" means a tow truck which has a manufacturer's GVWR of at least 33,000
lbs. and is equipped with air brakes capable of providing and maintaining continuous air to a
towed velicle.
"Class 'D' Tow Truck" means a tow truck which has a manufacture's M7VM of at least 50,000
lbs. and is equipped with air brakes and capable of providing and maintaining continuous air to a
towed vehicle.
"Police Department" means the Police Department of the City of Petaluma.
" Police_ Special Services " = rrmeans_ =a response o_a_call. generated -from the Police= Special..Services
Rotation Tow List.
"Quarter Year" means each of the four (4) three (3) month periods ending March 31, June. 30,
September 30, and December 31 respectively.
"Service Calls" means calls generated from the Regular Rotation Tow List for vehicle assistance,
including lockouts, jump starts, tire changes and fueling.
"Sweeps" means police operations expected to result in a need to tow four (4) cars or more or
special operations for which Contractor will be required to leave the city limits of Petaluma if a
tow is requested.
SECTION 2 — SCOPE OF SERVICES
A. Contractor agrees to provide, in response to calls generated from the City's
Rotation Tow lists (as set forth herein, in subsection B), towing and storage of
vehicles, and related services as set forth herein. The City places no maximum on
the number of City - generated tows that Contractor may be required to provide in
any time period. There shall be no obligation upon City to provide Contractor
with a minimum number of City- generated tows during any time period.
B. Rotation Tow Lists.
Calls generated from the Police Special Services Rotation Tow List
include, but are not limited to, vehicles impounded for evidence or
criminal investigation, or tow services for City vehicles. Tow services for
City vehicles include, but are not limited to, towing, jump- starts, and flat
tire repair. Contractor will be available for Special Service Rotation calls
24 hours a day, 7 days a week.
2. Calls generated from the Regular Rotation Tow List u7clude, but are not
limited to, storage of vehicles, disabled vehicles, traffic hazards, traffic
collisions, vehicles parked over 72 hours, Service Calls, or other tow
services not covered under airy other list. Contractor will be available for
Regular Rotation calls 24 hours a day, 7 days a week.
Calls generated from the Abandoned and Junk Vehicle Rotation Tons,
List include, but are not limited to, vehicles towed pursuant to California
Vehicle Code section 22669(d). Contractor will be available for
Abandoned and Junk Rotation calls Monday through Friday, 8:OOam to
5:OOpm, except holidays or under special circumstances.
4. Calls generated from the STOP Vehicle Forfeiture /30 Day Impound
Rotation List are limited to vehicles impounded pursuant to the Califoniia
Vehicle Code for a 30 -day impound. Contractor will be available for
STOP -30 Day Impound Rotation calls 24 hours a day, 7 days a week.
- - -- - ._ .C..:- Requests .for_S-ervice and.- Response :Standards.. . __ - - - -- - - - -
Contractor will be notified of a request for rotation tow services via
telephone from the Communications Center. Communications personnel
will attempt telephone contact one tithe, allowing the phone to ring at
least six (6) complete rings. If after the sixth ring there is no answer, the
next contractor on the list will be called.
1 If Contractor fails to answer the telephone, or answers but declines to
provide the requested services, the next contractor on the list will be
called. If the next contractor called is available, that call will not
constitute that responding contractor's next call on the Rotation Tow List.
Instead, the responding contractor will be indicated on the list over
Contractor's name. The responding contractor will then maintain its
original position on the list as next on rotation. Responding to a Service
Call will not alter a contractor's position on the Regular Rotation Tow
List.
3. Contractor inquiries to the Communications Center shall be limited to
urgent and justified circumstances, and not inquiries as to Contractor's
place on any Rotation Tow List. However, if Contractor will be
unavailable for an extended period of time, Contractor shall contact the
Communications Center in advance to provide infornlation regarding the
time during which Contractor will be unavailable.
4. Contractor shall arrive at the site at which the vehicle to be towed is
located within twenty -five (25) minutes of receiving a telephone request
from the Communications Center. Contractor will advise the
Communications Center if, at the time of receiving a request for services
from the Communications Center, Contractor anticipates it will be unable
to respond within twenty -five (25) minutes.
5. If Contractor fails to arrive at the site at which the vehicle to be towed is
located within twenty -five .(25) minutes, or if Contractor passes on a tow
without good cause as determined by the City, the City shall have the right
to have the vehicle towed by another Contractor. Repeated failure to meet
the response standards set forth above shall constitute a material breach of
this Agreement.
D. Standards of Service.
Contractor warrants that all of its tow truck drivers are qualified,
competent, properly trained and licensed to provide services pursuant to
this Agreement.
2. Contractor shall provide City with a list of all tow truck drivers employed
by or under contract with Contractor, and shall provide City with an
rst= wzthzn- seven= (7)=days ofa -y= change =in -driver status. The list --
shall include the following information for each driver:
a. Name;
b. Date of birth;
C. California Driver's License number and classification;
d. Medical certificate;
C. Job title or description;
f. Current home address and telephone number; and
g. Types of trucks driver is trained and licensed to operate.
All of Contractor's officers, agents, or employees who engage in
performance of this Agreement with City on behalf of Contractor shall be
neat in appearance and courteous to the public and to City employees.
4. Contractor shall supply its tow truck drivers with shirts upon which the
name of the driver has been stitched on the left pocket or a pin -on name
tag to be affixed to the left hand pocket. The shirt or name tag must be
wom by the driver at all times when the driver is towing vehicles or
interacting with the public or City pursuant to this Agreement.
5. While providing services pursuant to this Agreement, Contractor and
Contractor's employees or subcontractors shall not engage in misconduct,
including, but not limited to the following acts of misconduct:
a. Rude or offensive behavior;
b. Selective service or refusal to provide service;
C. Racial discrimination;
d. Sexual harassment or sexual discrimination;
Unsafe or unlawful driving; and
f. Exhibiting any objective symptoms of alcohol or drug use,
including, but not limited to, arriving at a tow scene with alcohol
on the breath.
Any tow truck driver who arrives at a tow scene with alcohol on his or her
breath shall submit to a preliminary alcohol screening test upon demand of
the Police Department.
6. Contractor shall tape prompt and appropriate steps to resolve any third
party complaints arising fiom or related to services provided pursuant to
this Agreement. Contractor shall provide each such complainant with a
Customer Complaint form (provided by City), and shall fully cooperate
with City's investigation of and.attempts to resolve complaints.
7. The following documents, printed in a minimum of 12- point type, shall be
posted by Contractor at each storage facility in a conspicuous location,
easily visible to the public:
a. Name and address of Contractor's insurance broker handling the
insurance coverage required pursuant to this Agreement;
b. Schedule of all approved towing, storage and additional charges as
specified in this Agreement; and
o A notice explaining the procedure by which unclaimed vehicles are
sold at public auction, including the locations of such auctions and
publications in which such auctions are advertised, and stating that
all in attendance at such auction shall have an equal opportunity to
bid.
8. In the event Contractor discovers that a vehicle which has been towed has
a Vehicle Identification Number (VIII which is different that the VIN
showing on the CHP Form 180, the Contractor will notify the Police
Department Traffic Division within twenty -four (24) hours of the time of
such discovery.
9. Bundling shall be permitted only on Sweeps.
10. Failure to comply with any of the Standards of Service set forth in this
Subsection may be treated as a material breach of this Agreement.
E. Required Equipment.
1.
Contractor shall maintain a mirdinu m of three tow trucks with wheel lifts
or two trucks with wheel lifts and one car carrier to be available for City -
generated tows. Of these, at least two shall be Class 'A' trucks, and at least
one shall be a Class '13' truck. The trucks must be staffed appropriately and
stored at locations sufficient to allow for the mandatory response time.
The trucks must have a means of communicating with the Contractor's
equipped with the means of towing ball -type trailers.
2. Contractor shall comply with all California Vehicle Code requirements
pertaining to the operation and maintenance of its tow trucks and
operation of its business.
3. All of Contractor's tow trucks shall be identifiable with signs in
compliance with Vehicle Code Section 27907, with the additional
requirement that such signs be displayed on the right and left doors of
each tow truck.
4. All tow trucks shall be equipped at all times with the Required Equipment
listed in Section 3 of Attaclument C of the current California Highway
c` Patrol Tow Service Agreement (CI P 234), a copy of which is on file at
the Police Department,
F. Storaye Facilities.
All vehicles stored pursuant to this Agreement must be stored within
Petaluma city limits. Contractor shall maintain a storage lot or lots for
purposes of storing vehicles towed pursuant to this Agreement which
meets the following requirements:
a. The lot shall include a level area large enough to store at least
thirty (30) automobiles with at least two (2) feet of clearance
between the sides of all vehicles, and at least one -foot of clearance
between the front or rear end of any vehicle and the front or rear
end of another vehicle.
b. The lot shall be enclosed by fencing that complies with all
applicable City ordinances and regulations including applicable
zoning regulations and permits;
The lot shall be available twenty -four (24) hours a day, seven (7)
days a week including holidays for storage of vehicles towed
pursuant to this Agreement; and
d. The lot shall be maintained so as to be reasonably secure from
intrusion by unwanted persons and adequately lighted.
2. Contractor shall also maintain sheltered storage on at least one of its
storage lots capable of storing at least five (5) vehicles.
3. Contractor shall maintain an office at its primary storage lot, staffed
_twenty -four (24)- hours -a day,- seven(7) days _a week including holidays by ______-
- -- -- — - at-least one einployee;- -or -Have ari em to ee available -who can an-at -t
p Y -
office within twenty -five (25) minutes of a City or citizen request.
Contractor shall provide a phone number that is answered twenty -four (24)
hours a day and shall display that number in a prominent place.
4. Contractor shall maintain a security system sufficient to protect the office
and the vehicles stored pursuant to this Agreement.
5. Contractor shall be responsible for the protection of each City- impounded
vehicle in its possession until such vehicle has been released to its owner,
or disposed of through legal process, and shall be responsible for
safeguarding all articles left in the impounded vehicle. Contractor shall
comply with police regulations regarding the inventory or removal of
property found in police- stored or impounded vehicles.
6. All of Contractor's storage facilities shall have valid land use and other
regulatory permits, as may be required by law.
7. All of Contractor's storage facilities shall be operated and maintained in
compliance with all applicable environmental laws and regulations.
G. hspections /Compliance.
City reserves the right to inspect all of Contractor's tow trucks and storage
facilities used pursuant to this Agreement to ensure compliance with this
Agreement and all applicable laws and regulations. Contractor shall fulls
cooperate with such inspections, which shall take place during normal
business hours without prior notice.
2. Evidence of Contractor's failure to maintain its tow trucks and storage
facilities in compliance with this Agreement and all applicable laws and
regulations shall be cause for immediate suspension or termination of this
Agreement at the City's discretion.
H. Vehicle Releases.
Stored or impotunded vehicles shall not be released in-1less Contractor is
presented with a written release authorized by the City. Upon receiving
such a release during norinal business hours, Contractor shall grant the
release and provide for, at no additional compensation, all services and
equipment necessary to release the vehicle or property taken from the
vehicle owner pursuant to this Agreement.
2. Contractor may charge the vehicle owner a "Gate fee" as set forth in this
Agreement, for release requests received on weekends and City holidays,
or after 5:00 p.m. but before 8:00 a.m. on business days.
- = -3. -- --= Contractor =shaE- complete a- Vehicle- Iuipotuld Disposition Sheet (provided --
by City) for each vehicle released from impound, and shall submit the
completed Vehicle Impound Disposition Sheets to the Police Department
at the end of each calendar month.
4. In the event an owner of an impounded vehicle surrenders title to the
vehicle to Contractor, Contractor shall be entitled to immediately dispose
of the vehicle.
I. Lien Sales.
Contractor will comply with the lien sale provisions set forth in Vehicle Code
Section 22851, and Civil Code Sections 3068.1 to 3074, inclusive. Contractor is
responsible for forwarding any excess lien sale proceeds in accordance with state
law.
SECTION 3 - TOWING AND STORAGE CHARGES
A. The maximum rates which Contractor may charge for the towing and storage of a vehicle
pursuant to this Agreement are set forth in Exhibit A, attached hereto and incorporated
herein. Contractor shall not charge for moving a vehicle from one of Contractor's lots to
another. Contractor shall not conspire, or attempt to conspire, or commit any other act of
collusion with any towing contractor for purposes of unfairly setting charges.
B. Abandoned Vehicles
City will compensate Contractor at the rate of $50.00 per vehicle for each abandoned
vehicle towed pursuant to California Vehicle Code Section 22669, from the Abandoned
and Junk Rotation Tow List.
SECTION 4 - FRANCHISE FEE
A. Fee. Contractor shall pay the City a franchise fee as follows:
1. $75.00 per vehicle towed pursuant to the STOP Vehicle Forfeiture /30 Day
Impound List; and
2. $20.00 per vehicle for all other tows pursuant to this Agreement, except
for tows pursuant to the Police Special Services Rotation Tow List and the
Abandoned and Junk Vehicle Rotation Tow List.
B. Payment Requireinents.
Franchisefee-payments shall -be-due-and payable quarterly,_ within - thirty_ _
2. Franchise fee payments pursuant to this Agreement shall be in addition to
any other license fees, business license tax, or other fees or taxes required
by the City.
3. Each franchise fee payment shall be accompanied by a statement, verified
by Contractor, showing in such form and detail as the City's Finance
Director may require the facts material to determining the amount of the
quarterly franchise fee.
C. Records. Contractor shall at all times maintain accurate and complete records of
each City- generated tow, which shall contain the following information:
Name and address, if available, of the person whose vehicle was towed;
2. Vehicle identification number, license plate number, mare, year, and
model of towed vehicle;
3.. Date and time request for tow was received;
4. Identify reason for tow by applicable Rotation Tow List, e.g., Police
Special Services, Regular, Abandoned and Junk Vehicle, or STOP Vehicle
Forfeiture /30 Day Impound;
5. Date and time of vehicle release;
6. Nance of person to whom vehicle was released; and
7. All of Contractor's fees and charges for tow, including, but not limited to,
fees for towing, storage, gate fees, repair, and lien sale proceeds including
the date such fees, charges or proceeds were received.
D. Contractor shall provide City with the information required to be recorded under
subsection C, above, upon request along with the quarterly franchise fee payment.
SECTION 5 - TERMINATION
The City shall have the right to terminate this Agreement without cause, upon thirty (30) days
written notice of termination. City may immediately terminate or suspend this Agreement for
cause upon written notice to Contractor. Cause for termination includes, but is not limited to, any
material breach of this Agreement; failure to comply with applicable laws and regulations; and
unacceptable, repeated and /or unresolved third party complaints. In the event of termination,
_ _ _ Contractoi shall_ dell= ver -to =the City_= within .thirty (3 Q) days =ofthe= date= oferminatioi' -_
_ -_ - 1= copies =of all: = . - - - --
reports, documents, and other work performed by Contractor under this Agreement. Contractor
shall pay City any outstanding franchise-fee within 30 (thirty) days of the effective date of
termination.
SECTION 6 - INDEMIFICATION
Contractor shall defend with counsel acceptable to the City, indemnify and hold harmless to the
full extent permitted by law, the City, its City Council, officers, employees volunteers and agents
fi om and against any and all claims, losses, liabilities, or costs (including, without limitation,
costs and fees of litigation) of every nature arising out of or in connection with Contractor's
work performed under this Agreement or its failure to comply with any of its obligations
contained in this Agreement, except such loss or damage which was caused by the sole
negligence or willful misconduct of City.
SECTION 7 - INSURANCE REQUIREMENTS
A. Contractor and any subcontractor shall not commence work under this Agreement
until Contractor and any subcontractor shall have obtained all insurance required
under this section and such insurance shall have been approved by the City
Attorney as to form and carrier and the City's Risk Manager as to sufficiency. Al]
requirements herein provided shall appear either in the body of the insurance
policies or as endorsements and shall specifically bind the insurance carrier.
B. Contractor shall maintain the following minnimlun levels of insurance for the
duration of this Agreement from an insurance carrier with a current A.M. Best's
rating of no less.than A:VII:
Mirnimum Level of Financial Responsibility (as required by California
Vehicle Code §34631.5) - Bodily injury and property damage with a
combined single limit of not less than $750,000 for Class A tow trucks.
The combined limits for Classes B, C, and D shall not be less than
$1,000,000. These minimmn standards are to include non -owned and hired
auto coverage.
2. Uninsured Motorist - Legal State of California minimum, combined single
limit.
3. On -Hook Coverage - Insuring the vehicle in tow with limits based on the
size of the tow truck as follows:
A. Class A tow truck ........ ........................$25,000
B. Class B tow truck ........ ........................$50,000
_ _C Class -C -tow - truck.. .. ....
D. Class D tow truck ........ .......................$100,000
4. Garage Liability - Includes premises and operations. Coverage for bodily
injury and property damage with a combined single limit of not less than
$500,000.
5. Garage Keeper's Liability - Shall be the same minimum as. on -hook
coverage for vehicles in the care, custody, and control of the operator in
the storage yard.
6. Workers' Compensation Insurance — Legal State of California minimum
requirements.
C. Any deductibles or self - insured retentions must be declared to and approved by
the City. At the option of the City, either the insurer shall reduce or eliminate such
deductibles or se-If-insured retentions as respects the City, its officers, officials,
employees, and volunteers; or the Contractor shall procure a bond guaranteeing
payment of losses and related investigations, claim administration and defense
expenses.
D. The required policies are to contain, or be endorsed to contain the following
provisions:
The City, its officers, officials, employees, agents and volunteers are to be
covered as insureds as respects: liability arising out of activities performed
by or on behalf of the Contractor; products and completed operations of
the Contractor; premises owned, occupied or used by the Contractor; or
automobiles owned, leased, hired or borrowed by the Contractor. The
coverage shall contain no special limitations on the scope of protection
afforded to the City, its officers, officials, employees, agents or volunteers.
2. For any claims related to this Agreement, the Contractor's insurance
coverage shall be primary insurance as respects the City, its officers,
officials, employees, agents and volunteers. Any insurance or self
insurance maintained by the City, its officers, officials, employees, agents
or volunteers shall be excess of the Contractor's insurance and shall not
contribute with it.
3. Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City, its officers, officials, employees, agents or volunteers.
4. The Contractor's insurance shall apply separately to each insured against
whom claim is made or suit is brought except, with respect to the limits of
the insurer's liability.
- -- — - - -Each �nsurance-po icy-require d1 y —this -clause-sh -I be--endorsed-to-stat-
that coverage shall not be suspended, voided, canceled by either party,
reduced in coverage or in limits except after thirty (30) days' prior written
notice by certified mail, return receipt requested, has been given to the
City.
SECTION 8 - OWNERSHIP OF MATERIALS
All reports, documents or other materials developed or discovered by Contractor in the
performance of this Agreement or any other person engaged directly or indirectly by Contractor
to perform Contractor's services are the City's property without restriction or limitation upon
their use; Contractor may use such reports, documents and other materials related.to the conduct
of its business.
A. Contractor shall keep complete records and accounts. of all gross annual receipts,
and the basis on which such gross annual receipts are derived from operations
pursuant to the Agreement. Such records and accounts shall be maintained for a
period of at least three (3) years. In the event of a claim or request by the City the
contractor will keep the related records until such claim of the City shall have
been fully ascertained and paid. In all cases, the Contractor will keep relevant
records for a longer period when required by law. The records and accounts,
required herein shall be kept separate froin any other operations conducted by
Contractor.
B. Contractor's records and accounts shall include, but not be limited to: bank books,
duplicate bank deposit slips, bank statements, and checks; true copies of all tax
reports and returns made to the United States of America, the State of California,
the County of Sonoma, the City of Petaluma, and any board, agency, or
commission thereof pursuant to law; and all such other papers, documents, and
files as are required in the ordinary course of such business, or which demonstrate
performance pursuant to the Agreement.
C. Any records and accounts required to be maintained pursuant to this Agreement
shall be made available for inspection or audit at any time during regular business
hours upon written request by the City Attorney, the City Auditor or the City
Manager. Copies of such documents shall be provided City for inspection at City
Hall when it is practical to do so; except that the City shall examine true copies of
any tax reports and returns at Contractor's place of business. Otherwise, unless an
alternative is mutually agreed upon, the records shall be available at Contractor's
address indicated for receipt of notices in the Agreement.
D. If the City should have an audit made for any payment period, and the City -
generated tows and associated franchise payments due to the City cumulatively
shown by Contractor's statements for any such period should be found to be
understated by more than three percent (3 %), the Contractor shall pay to the City
the full_ cost_ of such- audit.__
E. Where the City has reason to believe that such records and accounts may be lost
or discarded due to dissolution, disbandment, abandonment, or termination of
Contractor's business, the City may, by written request by any of the above
named officers, require that custody of the records be transferred to the City and
that the records and documents be maintained in City Hall. Access to such
documents shall be granted to any party authorized by Contractor, its
representatives, or its successor -in- interest.
SECTION 9 — GENERAL PROVISIONS
A. Effective Date. This Agreement is effective as of )2003.
B. Term. The term of this Agreement is from , 2003 to
, 2005, inclusive, subject to early termination pursuant to
section 5. The parties agree to meet and confer in good faith after this
Agreement has been implemented for at least ninety (90) days, in order to
mutually evaluate the franchise fee amounts.
C. Non - exclusive franchise. The City reserves the right to enter into a non - exclusive
franchise agreement with an additional tow service provider at any time that the
City, in its sole discretion, determines this would be in the best interest of the
City.
D. Integration. This Agreement and all Exhibits attached hereto and incorporated by
reference herein, contain all of the agreements, representations and
understandings of the Parties, and supersede and replace any previous
understandings, commitments, or agreements, whether oral or written.
E. Seyerability. Should any provision or part of this Agreement be found to be
invalid or unenforceable, only that particular provision or part shall be
inoperative, and all remaining provisions and parts of this Agreement shall
continue in full force and effect and remain binding on the parties.
F. Waiver. The Contractor agrees that the City's waiver of any breach or violation
of any provision of this Agreement shall not be deeined to be, a waiver of any
other provision or a waiver of any subsequent breach or violation of the same or
any other provision. The City's acceptance of the performance of any of
Contractor's services will not be a waiver of any provision of this Agreement.
G. Independent Contractor. It is understood and agreed that in the performance of
this Agreement, Contractor (including its employees and agents) is acting in the
capacity of an independent contractor, and not as an agent or employee of the
City. Contractor has full control over the means and methods of performing said
services, and is solely responsible for its acts and omissions, including the acts
and omissions of its employees and agents.
- --
omphance wiili-L- aws. == Contractor shall- complywith. all - applicable laws;- -
ordinances, codes and regulations of the federal, state and local governments,
including without limitation, any and all laws specified elsewhere in this
Agreement. Non- compliance shall constitute a material breach of this Agreement.
I. Conflict of Interest. Contractor shall avoid all conflicts of interest or the
appearance of conflicts of interest in performance of this Agreement.
J. Nondiscrimination. Contractor shall not discriminate in the provision of service
or in the employment of persons engaged in the performance of this Agreement
on account of race, color, national origin, ancestry, religion, gender, marital
status, sexual orientation, age, physical or mental disability in violation of any
applicable local, state-or federal laws.
K. Confidential Information. All data, documents, discussions or other information
developed or received by or for Contractor in performance of this Agreement are
confidential and must not disclosed to any person except as authorized by the
City, or as required by law.
L. Assignability. The parties agree that the expertise and experience of Contractor
are material considerations for this Agreement. Unless specifically authorized by
this Agreement, Contractor may not assign the performance of any obligation or
interest under this Agreement without the prior written consent of the City. Any
attempt by Contractor to assign this Agreement, in violation of this Section, will
be voidable at the City's sole option.
M. Subcontractors. Contractor must obtain the City's prior written consent for
subcontracting any services pursuant to this Agreement. Contractor shall ensure
that Contractor's subcontractor(s) comply with this Agreement by requiring any or
all of Contractor's subcontractor(s) to sign an agreement with Contractor requiring
compliance with this Agreement.
N. Govemina Law and Venue. This Agreement shall be construed and its
performance enforced under California law. Any litigation between the parties
arising from this Agreement shall be venued in the Superior Court of California in
the County of Sonoma.
0. Notices.
All notices and other conununications required or permitted to be given
under this Agreement must be in writing and must be personally served, or
mailed, postage prepaid via U.S. Mail, or sent via courier service,
addressed to the respective parties as follows:
To City: City Cleric
City of Petaluma
P. 0. Box 61
Petaluma, CA 94593
R
Traffic Division Sergeant
Petaluma Police Department
969 Petaluma Blvd, North
Petaluma, Ca. 95942
To Contractor: [Contractor Contact Name]
[Company Name]
[Address]
[City, State ZIP Code]
2. Notice will be effective on the date personally delivered or if sent by
courier service, on the date of receipt. If mailed, notice will be effective
three (3) days after deposit in the mail.
The parties may change their respective addresses in accordance witli the
provisions of this section.
P. Headings. The headings of the sections and exhibits of this Agreement are
inserted for convenience only. They do not constitute part of this Agreement and
are not to be used in its construction.
SECTION 10 - ACKNOWLEDGEMENT AND WAIVER
By executing this Agreement, Contractor agrees to all of the terms and conditions set forth
herein, and acknowledges that this Agreement and each of the teens and conditions herein,
including the franchise fee, constitutes a proper exercise of the City's police power under the
City's Charter and pursuant to California law, including, but not limited to, the provisions of the
California Vehicle Code. Contractor fitrther acknowledges that Contractor has had the
opportunity to have this Agreement reviewed by Contractor's legal counsel, and that Contractor
has freely entered into this Agreement. Contractor hereby waives any right to challenge any part
of tl-ds Agreement or the procedures by which this Agreement, including the franchise fee, is
adopted and implemented by City. Contractor's initials, affixed below, indicate that Contractor
has read, uizderstood and agreed to this provision of the Agreement.
Contractor's initials:
WHEREFORE, City hereby awards Contractor a non - exclusive franchise to provide, towing and _
- - --
storage ; Piealuma Ci t
y servcespursuto V n 110 -C- - cd 2and the
Charter, in accordance with the terms and conditions set forth herein.
CITY OF PETALUMA
City Manager
ATTEST:
City Cleric
APPROVED AS TO FORM:
City Attorney
APPROVED:
Department Director
APPROVED:
Risk Manager
APPROVED:
Finance Director
##181840 -3
6/6/03
CONTRACTOR
By
Name
Title
Address
City State Zip
Taxpayer I.D. Number
Petaluma ]Business Tax Certificate Number
EXHIBIT A
TOWING AND STORAGE CHARGES
The maximum rates which Contractor may charge for the towing and .storage of a vehicle
pursuant to this Agreement are as follows:
- - Tow ......
-- �------ - - - - -- Storage (Outside); � -- .- .- - - - - -- ------ $- - - - - -- -- - - -...- ._ _. -- - ___---------- - -..._ _
Storage (Inside) ................. $
Gate Fee ...................... $
Service Call ................... $
Police Special Services .......... $ /hour
When a vehicle owner presents an authorized release and requests release of a vehicle within
twenty -four (24) hours from the time the vehicle was towed, the Contractor may not charge the
vehicle owner for more than one day's storage in addition to any other applicable charges.
Evidence of overcharging customers shall be cause for immediate suspension or termination of
this Agreement at the City's discretion. Evidence of overcharging shall include, but not be
limited to, attempts to charge for equipment or services which were neither requested nor
required, such as charging for dispatching more than one tow truck in response to a call, when
only one tow track has been requested or required.
Exhibit 1 Ordinance 2153 N.C.S. Page 17 of 17