HomeMy WebLinkAboutStaff Report 4.B 03/05/2012Agend w Ite vw #4.B
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DATE: March 5, 2012
TO: Honorable Mayor and.Members of the City Council through City Manager
FROM: Dan Fish, Chief of PoliceQ'
SUBJECT: Ordinance of the City Council of the City of Petaluma Amending Chapter 11.94
of the Petaluma Municipal Code to Remove the'Tow:Franchise Agreement and
Franchise Fee Amounts from the Municipal.Code, and Make Additional
Modifications Concerning Award of Tow Franchises
RECOMMENDATION
It is recommended that the City Council introduce the Ordinance Amending Chapter 11.94 of the
City of Petaluma MunicipafCode Entitled "Nonexclusive Tow Franchise Agreements" to
remove the Tow Franchise Agreement and franchise fee - amounts from the Municipal Code and
make additional modifications to the procedures for award of tow franchises.
BACKGROUND
Existing PMC Chapter 11.94'has the.Tow Franchise Agreement codified within the chapter. The
original agreement has been changed and the language in the chapter related to the agreement is
outdated and'inaccurate. The existing- chapter also lacks specified procedures for tow franchise
awards. Staff has identified needed changes in franchise fees and..in the tow franchise: agreement,
including standards for: towing operators that meet State. guidelines.. Because the need for
changes to the agreement and:fees is likely to.recur inthe future, staff also recognized that
removing the agreement from the Municipal Code and allowing,the;City Council to consider
franchise agreement and fee modifications by resolution will save time and expense when
changesare, needed..
DISCUSSION
The Police Department provides law enforcement and public safety towing;services to the
community by awarding Tow Franchise Agreements. Existing. agreements have expired and
need to be renewed. There have been changes.to the agreement and the fees which have not
been incorporated into the present Chapter 1`1.94: The City Attorney has recommended that due
to the need forannual review and periodic changes, the Tow Franchise Agreement and franchise
Agenda Review: no
City Attorney Finance Director City Managerkj!j
fee schedulgeshould be,removed from the Municipal ,Codes`so that:the City Council can approve
changes by resolution. The proposed code amendmentalso adds'application procedures which
are not included; in the existing ordinance.
The proposed: ordinance amendment allows future changes and updates to the form of the
franchise agreement or the amount of the fees to be adopted by City Council resolution, rather
than requiring amendment,of the 'Municipal Code by ordinance. If the proposed ordinance
amendment is introduced, at the time of the second reading /ordinance adoption, She City Council
will also be asked to consider a: resolution adopting an amended Nonexclusive Tow Franchise
Agreement and rate schedule, which will be presented` at that time.
FINANCIAL IMPACTS
There are no fnancial impacts to making these amendments to the Municipal Code or agreement
other than staff and city-attorney time for preparation of the ordinance, agenda materials and
future revisions to the tow franchise agreement
ATTACHMENTS
Ordinance Amending Chapter 11.94 of the City of Petaluma Municipal Code Entitled
"Nonexclusive Tow Franchise Agreements"
A-t�cc.ct.me n�
AN ORDINANCE OF CITY OF PETALUMA AMENDING CHAPTER 11.94 OF
THE PETALUMA MUNICIPAL CODE `TO' REMOVE THE TOW FRANCHISE
AGREEMENT AND FRANCHISE FEE AMOUNTS FROM THE MUNICIPAL
CODE, AND MAKE ADDITIONAL MODIFICATIONS CONCERNING AWARD
OF TOW FRANCHISES
WHEREAS, the City has entered into agreements ( "Tow Franchise Agreements ") that grant
non - exclusive franchises to provide towing and storage. services in the City of Petaluma ( "City")
as part of the Police. Department's towing program; and
WHEREAS, Petaluma Municipal Code Chapter 11.94 provides authority for granting of non-
exclusive tow franchises and execution of Tow Franchise Agreements between the City and
private tow companies operating in the City in accordance with and subject to the requirements
of Chapter 11.94, California Vehicle Code section 12110, subdivision (b), and sections 46, 51,
and 75 of the Petaluma Charter; and
WHEREAS, Petaluma Municipal Code Section 11.94.020 authorizes the City Manager to
execute Tow Franchise Agreements and incorporates as an exhibit: a copy of a Tow Franchise
Agreement form, thereby codifying the Tow Franchise Agreement form; and
WHEREAS, Petaluma Municipal Code section 11.94.040 permits amendment of the Tow
Franchise Agreement form by resolution, and the Tow Franchise Agreement form has been
amended by Resolution no. 2006 -167 adopted September 18, 2006 (and thus the exhibit to
Petaluma Municipal Code section 11.94.040 is no longer current); and
WHEREAS, Petaluma Municipal Code section 11.94.010 specifies the franchise fee amounts
applicable to Tow Franchise. Agreements; and
WHEREAS, codification in the Petaluma Municipal Code of the franchise fee amounts
applicable to Tow Franchise. Agreements is not a legal requirement, and results in unnecessary
administrative delay and related costs each time the tow franchise fee amounts are amended; and
WHEREAS, in order to avoid confusion regarding the current„ approved version of the Tow
Franchise Agreement form, and subsequent amendments to the approved Tow Franchise
Agreement form adopted by resolution, to permit updating of tow franchise fee amounts by
resolution, and to further clarify the award of Tow Franchise Agreements, the City Council
wishes to amend Chapter 11.94 of the Petaluma Municipal Code to delete the Tow Franchise
Agreement incorporated as an exhibit to section 11.94.020; to delete the tow franchise fee
amounts specified. in section 11.94.030 and to make other specified modifications to Chapter
11.94 of the Petaluma Municipal Code.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PETALUMA DOES
ORDAIN AS FOLLOWS:
Section 1: Chapter 11:94 of the Petaluma Municipal Code is hereby amended in accordance
with the following:
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a. Section 11.94.010 Amended'. Section 1.1.94.010 of the Petaluma
Municipal Code is hereby amended to read as follows:
11.94.010 Purpose
A. The city's police department maintains rotation tow lists used for
dispatching private tow °operators'to provide towing and storage services as part
of the police ,department's. towing program, and the; city incurs costs in
connection with the police department's towing program.
B. California Vehicle Code section 12110, subdivision (b) provides
that a public entity:_may require payment of a fee in. connection with the award of'
a franchise for towing vehicles on behalf of that public entity, provided that the
fee does not exceed the amount necessary to reimburse the public entity for its
actual and reasonable costs incurred in connection with. the towing program.
C. Inclusion on the city's rotation tow lists confers a benefit on
private tow operators because the registered owners of vehicles towed pursuant
to the towing-program must pay the tow operators for the tow and storage fees
incurred.
D. The city council wishes to grant nonexclusive tow franchises to
contractors for use of city streets and property in consideration of payment of a
franchise fee in accordance with the requirements of sections 46, 51 and 75 of
the Petaluma Charter, section 12110, subdivision (b) of the California Vehicle
Code, and other applicable -law.
b. Section 11.94.020 Amended. Section 11.94.020 of the Petaluma
Municipal Code is hereby amended to read as follows:
11.94.020 Authorization to execute tow franchise agreements.
The city manager is hereby authorized to execute on behalf of the city
and in accordance with, requirements specified in sections 46, 51 and 75 of the
city charter, and this chapter, nonexclusive tow franchise agreements with
eligible tow operators using the tow franchise agreement form most recently
approved by duly adopted resolution of the city council in accordance with
section 11.94:040..
C. Section, 11.94.030. Amended. Section 11.94:030 of the Petaluma
Municipal Code is.hereby amended to read as, follows:
11.94.030 Franchise fees
The city shall collect a franchise fee from tow franchisees for each vehicle
towed pursuant: to the police department's towing program and this chapter in an
amount. set, by duly adopted city council resolution.. '.In accordance with
California Vehicle Code section 12110, subdivision (b), and other applicable law,
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such franchise fee may not exceed the amount necessary to reimburse the city for
its actual reasonable costs incurred in connection with the police department's
towing program.
,d. Section 11.94A40 Amended. Section 11.94.040 of the Petaluma
Municipal Code is hereby amended to read as follows:
11.94.040 Approval and amendment of tow franchise agreement forms and
maximum tow rates.
The city council may by duly adopted resolution approve and amend tow
franchise agreement forms and maximum rates that may be charged by tow
franchisees for services provided pursuant to the police department's towing
program and this chapter.
e. Section. 11.94.050 Added. Section 11.94.050 is hereby added to
the Petaluma Municipal Code to read as follows:
11.94.050 Award of tow franchises
The city will,seek new tow franchisees by notice published in the official
city newspaper. The notice will provide details on obtaining franchise
application materials and submission of franchise applications. Franchise
application materials will detail tow operator eligibility and other requirements
that must be satisfied to be considered for award of a tow franchise. Eligibility
requirements and standards for tow operators and their .drivers shall be as set
forth in the tow agreement forms and shall be generally consistent with the
requirements and standards contained in the most recent California Highway
Patrol Tow Service Agreement, modified by the city as deemed appropriate.
The police chief will recommend to the city manager award of tow franchise
agreements to eligible operators so that at any given time a sufficient number of
franchisees (not to exceed three) are,included on the city's tow rotation lists.
Section,2: If. any section, subsection, sentence, clause, phrase or word of this ordinance is for
any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
ordinance. The' City Council of the City of Petaluma, hereby declares that it would' have passed
and adopted this ordinance and each and all provisions thereof irrespective of the fact that any
one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid.
Section 3: The City. Council finds that this Ordinance is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably .foreseeable indirect physical change. in the environment) and
15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines,
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because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Section 4: In accordance with section 51 of the Petaluma Charter, this ordinance may not be
adopted until 30 days or more have elapsed since its introduction. This ordinance shall become
effective thirty (30) days after the date of its adoption by the Petaluma City Council.
Section 5. The City Clerk is hereby directed to publish or post this ordinance or a synopsis for
the period and in the manner, provided by the City Charter and any other applicable law.
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