CITY COUNCIL
AGENDA
Study Session
Wednesday, May 24, 2023
3:00 PM
City Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
MAYOR
Rita Lamb
CITY COUNCIL MEMBERS
Mayor Pro Tem
Mark Carnevale
Councilmember
Nancy Ross
Councilmember
Raymond Gregory
Councilmember
Ernesto Gutierrez
• CALL TO ORDER
• ROLL CALL
• AGENDA FINALIZATION
At this time the City Council may announce any items being pulled from the agenda or continued to another date.
1. PUBLIC COMMENT
This is the opportunit y for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda but may briefly respond to statements made o r ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. Public Comment will be limited to three (3) minutes.
2. STUDY SESSION
Normally no action is taken on Study Session items, however, the City Council reserves the right to give specific policy direction and take specific action as Cathedral City P a g e 2
necessary. Presentation will be limited to 10 minutes unless other provisions are made in advance.
A. Introduction of the City's FYs 2024-2028 RMRA (SB-1) Projects.
Recommendation: City Staff will introduce the City’s FYs 2024-2028 Capital Improvement Program (CIP) Projects funded by Senate Bill 1 (SB-1): The Road Repair and Accountability Act of 2017, for review and discussion only.
B. Vehicle Tow Service Franchise Agreement
Recommendation: That the City Council provide direction to City Staff on the following policy decisions:
1. Should the City have an ordinance that codifies the
process for selecting non-exclusive tow contracts to provide towing services on behalf of the City?
2. Does the City Council wish to continue to operate a
tow rotation franchise with tow operators? If so, does the City Council want to recover the entire cost of operating a tow rotation program?
3. Does the City Council want to eliminate the
requirement that the tow company impound yard and tow
business must be within the city limits? If so, what
reasonable distances or metrics does the City Council wish to adopt?
Staff recommends that City Council adopt an ordinance to codify a tow rotation program that includes policy direction provided by Council.
3. CLOSED SESSION
A. Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8.
Property Location: Approximately 1.8 acres, Parcel 3 of Tract No. 28339 Negotiating Parties: Unspecified Parties
Property Owner: City of Cathedral City
Under Negotiations: Price and Terms for potential sale of real property B. Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8.
Property Location: Approximately 13.5 acres south of East Palm Canyon Drive at Date Palm Drive
Negotiating Parties: City of Cathedral City as the Successor Agency to the former Redevelopment Agency and the City Urban Revitalization Corporation Property Owner: City Urban Revitalization Corporation
Under Negotiations: Price and Terms for potential sale of real property Cathedral City P a g e 3
ADJOURN
NOTES TO THE PUBLIC:
The City of Cathedral City complies with t he Americans with Disabilities Act of 1990. If you require special assistance to participate in this meeting, please call the City Clerk’s Office at (760) 770-0322 at least 48 hours prior to the meeting.
If you desire to address the City Council during t he meeting, please complete a Request to Speak Form available at the entrance and present it to the City Clerk. Speakers will be called upon at the appropriate time.
Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s office at City Hall located at 68 -700 Avenida Lalo Guerrero during normal business hours. In addition, such documents will be posted on the City’s website at www.cathedralcity.gov.
Cathedral City Page 1 of 5 Printed on 5/19/2023
Staff Report
City Council
Item No. 2.A
Meeting Date: May 24, 2023
From: John Corella, Director of Engineering/Public Works Title: Introduction of the City's FYs 2024-2028 RMRA (SB-1) Projects.
City Council
RECOMMENDATION:
City Staff will introd uce the City’s FYs 2024 -2028 Capital Improvement Program (CIP) Projects funded by Senate Bill 1 (SB -1): The Road Repair and Accountability Act of 2017, for review and discussion only.
BACKGROUND:
Prior to Senate Bill 1 ( SB-1), cities and counties across the state delayed and even cancelled road improvement projects due to lack of funding; neglecting basic maintenance and repairs to their local streets. The 2016 California Statewide Local Streets and Roads Needs Assessment found the condition of these loc al streets, on average, were “at risk” or degraded to failing infrastructure.
On April 28, 2017, Governor Brown signed SB -1, known as the Road Repair and Accountability Act of 2017, to address basic road maintenance, rehabilitation, and critical needs fo r both state highways and local streets and roads known as the Local Streets and Roads Program (LSRP). SB -1 generates funds through increase d per gallon fuel excise taxes, diesel fuel sales taxes, vehicle registration fees and provides for inflationary adjustments on future tax rates.
Various portions of the funds generated are deposited into the Road Maintenance and Rehabilitation Account (RMRA) fund. A percentage of the RMRA funding is apportioned to Cathedral City by formula for road maintenance, rehab ilitation, and critical safety projects. This amount averages $900,000 per year paid in monthly installments.
Additionally, to be eligible for the above outlined RMRA funding t he City is required to maintain its existing commitment roadway improvements b y the utilization of approved local funds for Capital Improvement Projects. This is a requirement to remain eligible for our RMRA/SB-1 funding apportionment. Thus, the City will need to spend no less than the annual average of its General Fund expenditur es, as determined during fiscal years (FY) 2009/2010, 2010 /2011, and 2011 /2012 for streets, road, and highway purposes from the City’s General or Traffic Safety Funds (Maintenance of Effort (MOE)),
2.A
Packet Pg. 4
Cathedral City Page 2 of 5 Printed on 5/19/2023
amounting to approximately $900,000 annually to remain eligible in the Program. As the City has achieved its MOE commitment in the past 7 years since the RMRA inception, it will continue to receive an average of $900,000 annually in RMRA/SB1 funding. (Please note the required MOE funding is included in the City’s proposed FY 2023/2024 and FY 2024/2025 Biennial CIP Plan.)
DISCUSSION:
RMRA requires all RMRA -funded projects be included in the City Capital Improvement Project (CIP) Plan. Initiating RMRA, on September 13, 2017, the City Council approved Resolution No. 2017-43 adding the proposed RMRA projects to the five-year CIP Plan.
Additionally, City Council must approve a resolution every year list ing the proposed projects the City plans to undertake with RMRA funding during that fiscal year. Once the resolution is approved, the City will submit an approved copy of this resolution to the California Transportation Commission (CTC) as required by the LSRP.
At the Council Meeting held on March 23, 2022, City Council approved Resolution 2022-16, which included the following three Projects:
Landau Boulevard and McCallum Way Intersection Traffic Signal Construction The scope of this Project is to reconstruct and improve the intersection at Landau Blvd. and McCallum Way adjacent to Mt. San Jacinto High School loca ted at the northeast corner of this intersection. This intersection receives significant pedestrian traffic from the adjacent communities and local school students and residents. This intersection was also the location of a 2015 pedestrian fatality. The pr oposed Project modifies the existing four -way stop intersection into a signalized intersection, upgrades and/or reconditions ADA ramps, and includes repaving the intersection to the north and south on Landau Boulevard.
The Project design was completed in May 2023, and the City is currently soliciting bids for the construction of the Project. The construction contract award is scheduled to be presented to the City Council in June 2023 with the construction work starting in August 2023.
Century Park Neighborhood Street Pavement Rehabilitation The scope of this Project included a combination of street reconstruction on specified streets and the application of Rubberized Emulsion Aggregate Slurry (REAS) on other streets within the internal street system of th e Century Park area, bounded by Avenue 30 to the north, McCallum Way to the south, Santoro Drive to the west and Da Vall Drive to the east.
This Project was successfully completed with the Notice of Completion dated October 27, 2022.
La Pasada Neighborhood Street Pavement Rehabilitation
The scope of this Project included a combination of street reconstruction on specified streets and the application of REAS on other streets within the internal street system of the La Pasada Neighborhood area, located n orth of Vista Chino and east and west of
2.A
Packet Pg. 5
Cathedral City Page 3 of 5 Printed on 5/19/2023
Avenida Maravilla. Streets included Santiago Road, Posada Road, Madrid Road, Riviera Road, Avenida Maravilla, San Martin Street, Calle Prado, La Medera Road, and Tangelo Street.
This Project , with the final coat o f striping being the only remaining item, will be completed this month.
FY 2024-2028 Projects
With two of the three Projects from Resolution 2022-16 completed within FY 2022/2023, and the third Project expected to be completed in FY 2023 /2024, City Staff is proposing the following projects to be funded with RMRA funds and to be completed in the next five years. These projects are included in the City’s FY 202 4/2028 Capital Improvement Program (CIP) and listed in the City’s FY 2023 /2024 and FY 2024 /2025 Bi ennial Budget.
Landau Boulevard and McCallum Way Intersection Traffic Signal Construction In FY 2023 /2024, the City propos es completing the construction of Landau Boulevard and McCallum Way Intersection Traffic Signal Project. The scope of this Project i s to reconstruct and improve the intersection at Landau Blvd. and McCallum Way adjacent to Mt. San Jacinto High School located at the northeast corner of this intersection.
The Project design has been completed and the City is currently soliciting constr uction bids for this Project.
The estimated cost for the design and construction of the Project is $ 715,000. This Project will be included as Project 1 in the RMRA FY 2023/2024 Resolution.
Landau Public Alleyway Reconstruction
In FY 2023/2024, the City is proposing the Landau Public Alley Reconstruction Project.
This is the alleyway bounded by Vista Chino to the north, 30th Avenue to the south, Landau Boulevard to the west, and Avenida La Paz to the east.
The Project proposes the removal and reconstruc tion of pavement within the alley right of way in the public alley between Vista Chino and 30 Th Avenue. This public alley provides parking access to multifamily and single -family residences in the Panorama Neighborhood.
The estimated cost for the design and construction of the Project is $900,000. This Project will be funded with RMRA (SB -1) funds and will be included as Project 2 in the RMRA FY 2023/2024 Resolution.
Whitewater Area Street Rehabilitation Between 33rd Avenue and Ortega Road In FY 2024 -2025, the City proposes to reconstruct various residential streets in the Whitewater Area, bounded by 33 rd Avenue to the north, Dinah Shore Drive to the south, Shifting Sands Trail to the west, and Cathedral Canyon Drive to the east.
The Project will consi st of the removal and reconstruction of pavement within the roadway surface on Shifting Sands Trail, Whispering Palms Trail, Sky Blue Water Trail,
2.A
Packet Pg. 6
Cathedral City Page 4 of 5 Printed on 5/19/2023
Navajo Trail, and Pueblo Trail between 33 rd Avenue and Ortega Drive, and 33 rd Avenue from Shifting Sands Trail to Cathedral Canyon Drive.
The estimated cost for this Project is $750,000. This Project will be funded with Community Development Block Grant (CDBG) funds in the amount of $480,000 and RMRA (SB-1) funds in the amount of $270,000. This Project will be i ncluded as Project 3 in the RMRA FY 2023/2024 Resolution.
N/O Baristo Road, S/O Vega Road, E/O Landau Boulevard W/O Avenida Los Niños Street Improvements.
In FY 2025 /2026, the City proposes to reconstruct various residential streets located within the area bounded by Vega Road to the north, Baristo Road to the south, Landau Boulevard to the west, and Avenida Los Niños to the east.
The Project proposes the removal and reconstruction of pavement on Avenida El Mundo and Avenida El Pueblo between McCallum Way and Baristo Road.
The estimated cost of this Project is $365,000. This Project will be funded with RMRA (SB-1) funds and will be included as Project 4 in the RMRA FY 2023/2024 Resolution.
Victoria Drive Neighborhood REAS
In FY 2025/2026, the City propo ses the REAS application on streets within the internal street system of the Victoria Drive Neighborhood. This neighborhood is bounded by Dinah Shore Drive to the north, 35 th Avenue to the south, Date Palm Drive to the west, and Plumley Road to the east.
The Project will consist of the application of REAS on residential streets within the Victoria Drive Neighborhood boundaries.
The estimated cost of this Project is $485,000. This Project will be funded with RMRA (SB-1) funds and will be included as Project 5 in the RMRA FY 2023/2024 Resolution.
N/O Ramon Road, S/O McCallum Way, E/O Date Palm Drive, W/O Santoro Drive Street Improvements
In FY 2026 /2027, the City proposes to reconstruct various residential streets located within the area bounded by McCallum Way to the north, Ramon Road to the south, Date Palm Drive to the west, and Santoro Drive to the east.
The Project proposes the removal and reconstruction of pavement within the roadway surface on El Toro Road, Victor Road, and Nuema Drive from Ramon R oad to Baristo Road; and Baristo Road from the east end to San Eljay Avenue.
The estimated cost of this Project is $915,000. This Project will be funded with RMRA (SB-1) funds and will be included as Project 6 in the RMRA FY 2023/2024 Resolution.
Panorama Park Area Street Improvements Between Avenida Maravilla and Avenida La Vista
In FY 2027 /2028, the City proposes to reconstruct various residential streets located within the Panorama Park Area, generally bounded by Vista Chino to the north, 30 th
2.A
Packet Pg. 7
Cathedral City Page 5 of 5 Printed on 5/19/2023
Avenue to the south, Landau Boulevard to the west, and Date Palm Drive to the east.
The Project will consist of the removal and reconstruction of pavement on Los Gatos Road from Val Yermo Trail to Avenida La Vista, and Jarana Road from Avenida Maravilla to Avenida La Vista.
The estimated cost of this Project is $550,000. This Project will be funded with RMRA (SB-1) funds and will be included as Project 7 in the RMRA FY 2023/2024 Resolution.
FISCAL IMPACT:
This agenda item is for review and discussion in preparation of the annual RMRA/SB -1 Resolution that will be placed on the June 14, 2023 City Council Agenda for approval.
The Resolution will need to be submitted to the State by June 30, 2023.
Please note all RMRA/SB-1 Projects will be brought forward individually for City Council approval when construction contracts are proposed as scheduled in the Engineering Division’s Projects Schedule Pipeline.
Also note if the City’s Pavement Management Program (PMP) does not align with the recommended Projects in this year’s Resolution, beyond the already scheduled SB -1 Projects from the original 2017 Resolution, SB -1 allows flexibility to change out projects within the required annual Resolution submission.
ATTACHMENTS:
RMRA 2023-2028 projects
2.A
Packet Pg. 8
Landau Boulevard and McCallum Way Intersection Traffic Signal Construction FY 2023-2024
2.A.a
Packet Pg. 9
Attachment: RMRA 2023-2028 projects (3692 : Introduction of the City's FY 2024-2028 RMRA (SB-1) Landau Public Alleyway Reconstruction
FY 2023-2024
Landau Blvd
Vista Chino
30TH Avenue
PUBLIC ALLEY
2.A.a
Packet Pg. 10
Attachment: RMRA 2023-2028 projects (3692 : Introduction of the City's FY 2024-2028 RMRA (SB-1) Whitewater Area Street Rehabilitation Between 33rd Avenue and Ortega Road FY 2024-2025
Navajo Trail
Pueblo Trail
33RD Avenue
Ortega Road
2.A.a
Packet Pg. 11
Attachment: RMRA 2023-2028 projects (3692 : Introduction of the City's FY 2024-2028 RMRA (SB-1) N/O Baristo Road, S/O Vega Road, E/O Landau Boulevard W/O Avenida Los Niños Street Improvements FY 2025-2026
McCallum Way
Baristo Road
Avenida El Mundo
Avenida El Pueblo
2.A.a
Packet Pg. 12
Attachment: RMRA 2023-2028 projects (3692 : Introduction of the City's FY 2024-2028 RMRA (SB-1) Victoria Drive Neighborhood REAS
FY 2025-2026
Dinah Shore
35TH Avenue
2.A.a
Packet Pg. 13
Attachment: RMRA 2023-2028 projects (3692 : Introduction of the City's FY 2024-2028 RMRA (SB-1) N/O Ramon Road, S/O McCallum Way, E/O Date Palm Drive, W/O Santoro Drive Street Improvements FY 2026-2027
McCalLum Way
Ramon Road
Baristo Road
El Toro Road
2.A.a
Packet Pg. 14
Attachment: RMRA 2023-2028 projects (3692 : Introduction of the City's FY 2024-2028 RMRA (SB-1) Panorama Park Area Street Improvements Between Avenida Maravilla and Avenida La Vista FY 2027-2028
Vista Chino
Tachevah Drive
Avenida La Paz
2.A.a
Packet Pg. 15
Attachment: RMRA 2023-2028 projects (3692 : Introduction of the City's FY 2024-2028 RMRA (SB-1)
Cathedral City Page 1 of 13 Printed on 5/19/2023
Staff Report
City Council
Item No. 2.B
Meeting Date: May 24, 2023
From: George Crum, Police Chief
Title: Vehicle Tow Service Franchise Agreement
City Council
RECOMMENDATION:
That the City Council provide direction to City Staff on the following policy decisions:
1. Should the City have an ordinance that codifies the process for selecting non - exclusive tow contracts to provide towing services on behalf of the City?
2. Does the City Council wish to continue to operate a tow rotation franchise with tow operators? If so, does the City Council want to recover the entire cost of operating a tow rotation program?
3. Does the City Council want to eliminate the requirement that the tow company impound yard and tow business must be within the city li mits? If so, what reasonable distances or metrics does the City Council wish to adopt?
Staff recommends that City Council adopt an ordinance to codify a tow rotation program that includes policy direction provided by Council.
BACKGROUND:
California Vehicle Code Section 12110 (b) authorizes the city to grant franchises to companies providing certain towing services and to collect a franchise tow service fee to offset actual and reasonable costs incurred in connection with administering its towing program.
The first contract entered into between Cathedral City (“City”) and a towing contractor was entered into on June 1, 1983, between the City and Bois’ Low Desert Towing. This was an annual contract and renewed yearly until 1991. In 1991, the City issu ed a request for Proposal (RFP) soliciting companies to provide towing services to the City’s Police Department with a requirement the towing companies have their impound yard and business within the city limits. In 1991, it was the first time the requirem ent was listed for the impound yard and business to be within the City limits. Four towing
2.B
Packet Pg. 16
Cathedral City Page 2 of 13 Printed on 5/19/2023
companies responded to the RFP and the City Council awarded a three-year contract to Low Desert Towing with the option to extend two additional three -year terms. O n December 29, 1994, the City Council approved a three -year towing contract with TNV Towing which was later terminated in 1995.
In 1998, the City issued a Request for Proposal (RFP) soliciting companies to provide non-exclusive franchise towing services t o the City’s Police Department. The RFP was sent to thirteen (13) Coachella Valley towing companies. Two companies responded to the RFP, Mohica Towing and South West Towing. On July 8, 1998, the City Council approved Tow Franchise Agreements with Mohica To wing and South West Towing which expired in August 2001.
On August 9, 2001, the City Council approved a three -year Vehicle Tow Service Franchise agreement with Mohica Towing and South West Towing which included the option to exercise two three -year extensions. On June 15, 2004, the City extended the contract for three more years. On August 8, 2007, the City Council authorized the second three-year extension which expired on August 8, 2010. The City did not have a Vehicle Tow Service Franchise Agreemen t in place from August 2010 until January 14, 2014. Although no franchise agreement was in place, Mohica Towing and South West Towing continued to provide towing services to the City and did not pay a franchise fee during this time.
In October 2013, the P olice Department issued a Request for Proposal (RFP) soliciting companies to provide non -exclusive franchise tow services to the City’s Police Department. The RFP was sent to twenty-nine tow companies in the Coachella Valley in which three companies respon ded, Mohica Towing, South West Towing as well as Yucaipa Towing of Palm Springs.
On January 15, 2014, the city entered into a three -year Vehicle Tow Service Franchise Agreement with Mojica Towing and South West Towing with the approval of the City Council. This agreement was entered into with the option to extend two additional three-year terms. On February 28, 2017, with City Council authorization, the City Manager executed the first amendment to the contract extending the Vehicle Tow Service Agreement w ith Mojica Towing and South West Towing for three additional years to January 15, 2020. On January 9, 2020, with City Council authorization, the City Manager executed the second amendment extending the Vehicle Tow Service Franchise Agreement with Mohica To wing and South West towing an additional three years, with a new expiration date of January 31, 2023.
As a result of the Vehicle Tow Service Franchise Agreement expiring on January 31, 2023 the City needed to negotiate a new agreement. The Police Chief, in reviewing this matter, recognized there was not an ordinance governing the award of contracts for tow franchises with the City. Police Department staff have been working with the City Attorney’s Office to review the history of this agreement and determ ined it necessary to seek City Council direction. To bridge the gap, the City executed with the current vendors a ninety (90) day extension of their existing contracts starting February 1, 2023 to April 30, 2023. A second one hundred and twenty (120) day e xtension was executed with the two current vendors that extends the contract from May 1, 2023 to August 31, 2023. Under the current terms of the franchise agreement, Mohica Towing and South
2.B
Packet Pg. 17
Cathedral City Page 3 of 13 Printed on 5/19/2023
West Towing are the only two companies with businesses and impound yards within the City and therefore are the only two vendors eligible to compete for the contract unless a new vendor established a business and a impound yard within the City. As such, the City is currently unable to add additional tow operators to the t ow rotation list, which has restricted competition and disadvantaged the City during contract negotiations.
DISCUSSION:
Historically, the City has had Vehicle Tow Service Agreements with Mohica Towing and South West Towing. The current contract, which wa s entered into on January 15, 2014, expired on January 31, 2023 and has most recently been extended to July 31, 2023 to allow the Police Department to develop, in cooperation with the City Attorney’s Office, a new RFP process, including a tow franchise ord inance and model tow franchise agreement. The proposed ordinance and model agreement was presented to Council on April 26, 2023 and Council directed this item be brought back at a study session with additional information. The process contemplated is to a dopt the proposed ordinance and model agreement, conduct a new RFP process, and then select and award contracts with tow companies, by September 27, 2023.
A. Reasons Supporting a Tow Ordinance
While the California Vehicle Code authorizes City to have t owing franchises, the law does not specify whether the franchise must be by ordinance, agreement or both. The City Attorney recommends the City Council adopt an ordinance governing the City’s tow program for a number of reasons. The proposed ordinance, wh ich would add Chapter
12.78, to the Cathedral City Municipal Code, is attached to this staff report for Council consideration as Attachment 1.
An ordinance preserves both the policy making function of the Council and ensures clear policy direction. Th is becomes more important as the City increases the number of tow franchises to avoid the inherent proclivity toward individualized agreements with terms that may drift from Council policy over time as agreements are extended or renegotiated. An ordinance establishes a clear baseline applicable to all vendors and clear criteria for city staff to apply, such as establishing a Tow Rotational Program providing for safe, efficient and rapid removal of vehicles that helps maintain safety on the roadways and throughout the City.
An ordinance also ensures members of the towing industry can participate in a rotational tow list that equitably distributes service calls and the cost of operating the Tow Rotation Program. Proposed, Chapter 12.78 provides for a fair and impartial means of distributing requests for towing services among qualified franchises and ensures that such service is prompt and reasonably priced, and in the best interests of the public as well as the interest of efficient policing operations for the removal of such vehicles from public streets. Doing so by ordinance ensures these critical elements are not changed by individual negotiation, but only upon review and approval of the Council.
Another reason to have an ordinance is that it will spe cify the fees that can be charged and the basis or formula for those fees. This ensures the Council establishes the basis for the fees, is satisfied the fee s are adequately supported and makes the decision
2.B
Packet Pg. 18
Cathedral City Page 4 of 13 Printed on 5/19/2023
whether to charge fees at 100% of the fully burd ened cost or some lesser amount determined to be equitable by the Council.
Finally, the proposed ordinance ensures that the selection of the franchisees is done through a competitive selection process in cooperation with the Police Chief and City Manager based on criteria set by the City Council.
B. Operational Changes in the Model Tow Agreement
Under the current franchise agreements, the tow operator’s place of business and vehicle storage facility must be located within the boundaries of the C ity. While this has been a term of the franchise agreement since 1991, staff have not found any administrative records (such as a resolution) mandat ing that tow operators be within the City limits.
Staff is proposing several changes to the new Model Tow Agreement, which are listed below. Staff is seeking the City Council’s direction on removing the requirement that the impound yard and tow business facility must be located within the boundaries of the City to increase the number of tow operators eligible to compete to be on the tow rotation list to achieve rapid removal of vehicles from public streets. Additional proposed changes establish minimum requirements for tow operators, establishes the types of tow services the City wishes to have available bas ed on the needs of the Police Department, prohibits collusion between operators, and provides the City the authority to suspend or cancel a contract for failure to perform, the latter being a term in all current city contracts but one that hasn’t been updated in the franchise agreement.
Current Franchise Agreement Proposed Model Tow Agreement Place of business and primary storage
facility must be within the established
boundaries of the City.
Staff seeks the City Council’s Direction
Should the primary storage yard be
located no greater than approximately 30
minutes driving distance from the
Cathedral City Police Department?
Section 7(C).
Should the tow operator’s business be
located within the City limits? 1
15-minute response time. 30-minute response time. Section 6(A).
Two operators on the rotation list. No limitation to the number of operators on the rotation list. Based on operational
need.
No minimum requirement for years of for -
hire towing experience.
Operators must have a minimum of 3
years of for -hire towing experience.
Section 4(A)-(B).
Operator must possess or be able to
obtain the services or use of a Class " D"
Operators must possess or be able to
obtain the services or use of a Class A, B,
1 This time frame is based on tow yards located no greater than 15 miles or 30 -minute drive time from the Cathedral City Police Department, as shown below.
2.B
Packet Pg. 19
Cathedral City Page 5 of 13 Printed on 5/19/2023
Current Franchise Agreement Proposed Model Tow Agreement tow truck.
C, and D tow truck. Section 9(C).
No provision. Prohibits collusion between operators that would prejudice the City or other
operator(s). Section 15.
No provision. Establishes disciplinary action for
violation(s) of terms and conditions of the
agreement. Section 22. As well as, appeal
and hearing procedures for disciplinary
actions taken against operator. Section 23.
Towing Data for Cathedral City
The Cathedral City Police Department routinely requires the services of private towing companies to store and remove vehicles i n emergency situations, and vehicles abandoned, involved in an accident, or constitute an obstruction to traffic. As indicated below, between 2000 and 2022, franchisees towed over 800 vehicles per year at the City’s request.2 In addition, there have been on average 227 owner requested tows per year in which an owner of a disabled vehicle has requested the Police Department call for a tow.
Police/City Tows 2020 2021 2022 Per Yr
Avg
Per Mo
Avg
Police Storages 773 748 656 726 60
Code Compliance 20 24 64 36 3
COP 25 73 162 87 7
Total Tows 818 845 882 848 71
Owner Requests 134 247 299 227 19
Grand Total 952 1092 1181 1075 90
2 Police Storages: Any storage required by the department where a CHP 180 is completed. The vehicle has been removed from the roadway at the discretion of the Police Officer, Community Service Officer, Citizens on Patrol, and/or Code Compliance Officers. The removal of th e vehicle could be for a multitude of purposes (proactive stop resulting arrest/ incapacitated driver/ parking violation/ blight issues) where the officer is completing a CHP 180.
Code Compliance: Removal of inoperable/junk vehicles from private property where the legal owner is usually cooperating with the removal of the vehicle. Recently, Code Compliance has become more involved in the removal of blight and illegally parked vehicles requiring CHP 180’s to be completed.
Citizens on Patrol : The majority of these vehicle storages are parking enforcement matters requir ing a CHP 180. Costs include support service staff time and Sergeant time for processing the CHP 180 through Dispatch and Records.
Owner Reques t: A storage in which the operator of the vehicl e is requesting to have the vehicle removed. This is often the result of an inoperable vehicle that is impeding traffic and must be removed from the roadway. If the vehicle operator does not have a preferred tow company, the police department will request towing services from a tow franchisee. These requests provide additional business to the franchisee. Though a CHP 180 is not completed, the officer remains on scene to maintain safety until the vehicle is removed from the roadway. The tow companies may cha rge their regular private tow rates; however, they often charge the indicated rate for a police storage under the franchise agreement.
2.B
Packet Pg. 20
Cathedral City Page 6 of 13 Printed on 5/19/2023
Staff also looked at the performance of the two current operators, specifically their availability to take a tow, the availability of having the right type of equipment to be able to take the tow, and their ability to respond in less than 30 minutes.
Tow Operator South West Mohica South West Mohica South West Mohica Unavailable 36 0 45 0 43 0
No Answer 7 0 13 2 13 0
Lacked Equipment 4 0 6 0 2 0
Response >30 2 0 1 0 0 0
Total 49 0 65 2 58 0
Total Calls (Police,
Code, COP 818 818 845 845 882 882
% time operator
unavailble or able to
respond or
response > 30 min 6% 0% 8% 0% 7% 0%
2020 2021 2022
i. Current Franchise Fees and Tow Rates
California Vehicle Code section 12110(b) allows a public entity to charge a franchise fee for awarding a private company the right to tow vehicles on the City’s behalf. However, the franchise fee cannot exceed the City's annual cost of administration and enforcement of the tow program. Historically, the City has charged franchisees a franchise fee to recover a portion of the costs to operate and implement a tow rotation program.
ii. Franchise Fees 2014 – 20233
Under the terms of the 2014 agreement, the Franchise Fee was calculated based on the total incurred costs, minus revenue collected (vehicle release fees, lien sales, etc.).
The Franchise Fee was then divided by the total number of tow operators, which in the case of Cathedral City was two - Mohica and South West. The Franchise Agreement provided an annual 3% increase to cover increasing costs of program operation.
In 2017, the City wished to extend the agreement for an additional three -year term. At the time, the City changed its calculations from a straight hourly cost for personnel to a fully burdened rate . That same year, the City collected less revenues than in the prior year, which would have resulted in an overall increase to the franchise fee of $64,943 in one year or a $32,471.50 increase per operator. To ease the burden to the franchisee, the City established a flat rate increase of $12,000 in year 2017, and $4,000 per year in years 2018 and 2019. This formula was continued during a second extension of the
3 Data from Tow Franchise Agreement and Amendments from 2014 to 2023.
2.B
Packet Pg. 21
Cathedral City Page 7 of 13 Printed on 5/19/2023
agreement executed in January 2020 - a flat $4,000 per year increase to the Franchise Fee with no change to the incurred cost. In 2023, the City needed to negotiate a 120 - day extension since the contract had lapsed. The negotiated rate with the operators was $148 per vehicle towed.
Year Incurred Cost
Revenue
Collected Franchise Fee
Franchise
Fee Per
Operator
Total Paid By
Franchisees Notes
2015 156,039$ 89,721$ $66,318 $33,158.96 $66,317.92 3% increase 2016 160,720$ 92,412$ $68,308 $34,153.73 $68,307.46 3% increase 2017 206,751$ 73,500$ $133,251 $46,153.73 $92,307.46 Flat increase = $12,000 2018 206,751$ 73,500$ $133,251 $50,153.73 $100,307.46 Flat Increase = $4,000 2019 206,751$ 73,500$ $133,251 $54,153.73 $108,307.46 Flat Increase = $4,000 2020 206,751$ 73,500$ $133,251 $58,153.73 $116,307.46 Flat Increase = $4,000 2021 206,751$ 73,500$ $133,251 $62,153.73 $124,307.46 Flat Increase = $4,000 2022 206,751$ 73,500$ $133,251 $66,625.50 $133,251.00 Flat Increase = $4,000 2023 120 Day Extension $148 per tow
iii. Tow Rates Charged by Contractor 2014 – 2023
The Franch ise Agreement also specifies the amount that can be charged by the tow companies for hourly rates to tow a vehicle based on the class of tow vehicles used and storage fees.
Yearly Tow
rates
Class A tow
Trucks
Special Duty
Hourly Rate
Heavy Duty
Hourly Rate
Class B
Heavy Duty
Hourly Rate
Class C and D
2014 $170 $250 $250 $350
2015 $170 $250 $250 $350
2016 $170 $250 $250 $350
2017 $195 $250 $300 $400
2018 $205 $250 $300 $400
2019 $215 $250 $300 $400
2020 $215 $250 $300 $400
2021 $215 $250 $300 $400
2022 $215 $250 $300 $400
2023 $245 $250 $300 $400
iv. Storage Rates Charged by Contractor 2014 – 2023
Year
Storage
Fees
Outside
storage:
Motorcycles,
passenger
cars
and trucks
20' or less
Inside
storage:
Motor-
cycles,
passenger
cars
and trucks
20' or less
Trailers 15'
or less
Trucks,
Trailers,
and other
vehicles 20’
to 30’
Trucks,
Trailers,
and other
vehicles of
30’ or more
2014 $50 $80 $50 $80 $80
2.B
Packet Pg. 22
Cathedral City Page 8 of 13 Printed on 5/19/2023
Personnel Costs Hourly rate Hours (per tow) Tows Total Cost 2022 Police Officer (80% of total Police tows) 174$ 0.5 525 45,675$ Community Service Officer (20% of total Police tows) 104$ 0.5 111 5,772$ Dispatcher 127$ 0.5 882 56,007$
Records Clerk 118$ 0.5 882 52,038$
Code Compliance Officer 133$ 0.5 36 2,394$
Citizens On Patrol (COP) -$ 162 -$
# of tows requiring 180 form* 882 Total Personnel Cost 161,886.00$ Program Administration Annual
Professional Services -Legal (hrs/yr) 290$ 13 3,770.00$ Sergeant (hrs/yr) 248$ 52 12,896$
Police Chief (hrs/yr) 369$ 0 -$
Commander (hrs/yr) 287$ 13 3,731$
Analyst II (hrs/yr) 146$ 24 3,504$
Building Maintenance 2.50% 532,775$ 13,319$ Information Systems 2.50% 763,641$ 19,091$ Supplies 1,000$ 1,000$ Total Administrative Costs 57,311$
Total Tow Program Costs 219,197$
Revenues FY 21/22 (91,306)$
Total Franchise Cost 127,891$
2 Total Franchise Cost/# of Operators 63,945.70$
2015 $50 $80 $50 $80 $80
2016 $50 $80 $50 $80 $80
2017 $62 $100 $50 $80 $90
2018 $67 $100 $50 $80 $90
2019 $72 $100 $50 $80 $90
2020 $72 $100 $50 $80 $90
2021 $72 $100 $50 $80 $90
2022 $72 $100 $50 $80 $90
2023 $80 $100 $50 $80 $90
If the City elects to use the same formula as in the past for determining Franchise Fees, the proposed Fee for 2023/2024 is below:
There are some changes reflected in the newly proposed franchise fees. The Police Department began a Community Service Officer (CSO ) program in 2023. The CSO’s perform the same types of duties as a Police Officer in regard to vehi cle tows – they are actively involved conducting vehicle collision investigations; notifying dispatch; completing the CHP 180 form; remaining on scene until the vehicle is removed; and assisting with traffic control associated with collisions until the veh icle is removed from the roadway. When the CHP 180 form is completed, the CSO returns it to the station for entry by the Police Dispatcher. Costs for the use of CSO’s have been included. Costs for Code Compliance staff have also been included. The Cod e Compliance program was formerly part of the Police Department but has since been reassigned to Development Services. Code Compliance Officers are responsible for the removal of inoperable/junk vehicles from private property where the legal owner is usu ally cooperating with the removal of the vehicle. Recently, Code Compliance has become more involved in the removal of blight and illegally parked vehicles requiring CHP 180’s to be completed. Staff have also reviewed the overhead costs and made some sligh t adjustments to lessen the program administration costs.
2.B
Packet Pg. 23
Cathedral City Page 9 of 13 Printed on 5/19/2023
Additionally, Staff proposes elimination of the Vehicle Impound Recovery Fee. With the passage of Assembly Bill 60 in 2015 making it easier for people to obtain drivers licenses, the amount of 30 -day impounds reduced significantly. With this reduction in 30- day impounds, the need for this fee has been virtually eliminated.
Alternatives to Franchise Fees
Under the proposed franchise fee, the City would recover the entire cost of operating a tow rotation program. However, as described above in the franchise fee chart, the City has previously subsidized the franchise fee. From 2017 to 2021, the fee payable to the City by each tow operator was less than the total cost of operating the tow franchise program.
Below are cities that have adopted similar subsidized tow franchise fees:
• City of Baldwin Park – Franchisee pays (1) an administrative fee ($118.05) per vehicle towed at the request of the police department; and (2) a percentage (25%) of gross r evenue received from owner or resident requests, vehicles stored over 30 days, and all vehicles sold at lien sales. https://www.riversidesheriff.org/
• City of Riverside – Tow operators pay a per tow fee for each vehicle towed at the request of the police department, rather than a franchise fee. Chapter 5.15 Riverside Municipal Code.
• City of El Monte – Franchise fee is a percentage (25%) of franchisees gross revenues attributable to towing, storage and imp ound services provided to the City under the towing services agreement.
Status of Tow Services in Greater Palm Springs
The City of Palm Springs and the City of Desert Hot Springs are the only cities in Greater Palm Springs with tow franchise ordinances . A notable provision to highlight under each ordinance is the requirement that tow yards be within or near city limits.
Section 11.82.130 of the Palm Springs Municipal Code requires the vehicle storage facility to be located within the corporate city li mits of the City of Palm Springs. In contrast, the Desert Hot Springs Municipal Code does not require tow yards to be within the City limit s. However, a 2019 Request For Proposal (RFP) for towing franchise services for the City of Desert Hot Springs includ ed a tow services agreement requir ing operators to maintain a place of business and primary storage facility within the city limits. The agreement also states that if an operator stores vehicles at a different location from the primary location, the additi onal location must be located not greater than ten (10) miles from the city limits. Based on the 2019 RFP, two tow operators were awarded franchises.
The City of Indio requires the tow company’s primary physical facility with an impound yard be located within the City limits.
2.B
Packet Pg. 24
Cathedral City Page 10 of 13 Printed on 5/19/2023
Below is a breakdown of the charges each City has adopted:
City # tow
operators
Franchise Fee VTACR Fee
charged to
registered
Owner
Vehicle
Impound Cost
Recovery Fee
Cathedral City 2 2022 rate:
$133,251 total
$66,625 per operator
$225 $11.50 per day –
vehicles
released to
owner before 30
days
$345.00 paid by
tow operator
after 30 days if
lien sale
exceeds 985.00
Lien sales by
tow operator,
prorated to
reflect 1/4 or
25% of total
proceeds of sale
(between
600.00-984.99)
less cost of the
Operator tow fee
and lien fee as
stipulated in fee
section. The city
receives zero
dollars if lien
sale is under
600.00.
Palm Springs
*Currently in
negotiations for
a new
agreement
3 No charge to operator –
full cost recovery passed
on to registered owner
Previously charged
$50,000 annually to the
operator (equivalent to
$50 per tow)
Adopted in 2020
$235.10 based
on 627 vehicles
towed
Desert Hot
Springs
*Currently in
negotiations for
a new
agreement
2 $158,364 total
$52,788 per operator
226.71 $226 per
impound (paid
by tow operator)
Vehicles sold by
operator
prorated to
2.B
Packet Pg. 25
Cathedral City Page 11 of 13 Printed on 5/19/2023
City # tow
operators
Franchise Fee VTACR Fee
charged to
registered
Owner
Vehicle
Impound Cost
Recovery Fee
reflect 1/3 or
33% of total
proceeds of sale
less cost of the
Operator tow fee
and lien fee as
stipulated in fee
section; 3%
increase per
year
Indio 3 Operator charged 8% of
annual towing cost =
$75,000 or 33% of the
total program cost
$18,650 per operator
$108 per vehicle towed
$265
Riverside County Sheriff’s Office – Indio Station
La Quinta
Coachella
Unincorporated
$214
$210
$92
Riverside County Sheriff’s – Palm Desert
Rancho Mirage
Palm Desert
Indian Wells
None $145
$165
$150
Tow Companies in Greater Palm Springs
There are ten tow companies within 15 miles and under 30 minutes driving distance from the Cathedral City Police Department 4:
4 Whether companies have sufficient tow operators to meet 24/7 requirement, and/or insurance, permit, and other qualifications is unknown.
2.B
Packet Pg. 26
Cathedral City Page 12 of 13 Printed on 5/19/2023
Tow Operator Address Distance to
Cathedral City
Police
Department
Drive Time
Between Police
Department and
Tow Operator
Mohica Towing 68315 Kieley Rd.
Cathedral City
.7 miles 3 minutes
South West Towing 36069 Campbell St.
Cathedral City
.7 miles 2 minutes
TNV Towing 74-894 42nd Ave, Suite B
Palm Desert
8.6 miles 17 minutes
Plaza Towing 74823 Velie Way
Palm Desert
8.6 miles 17 minutes
Advanced Towing 42200 Beacon Hill, Ste A
Palm Desert
8.9 miles 18 minutes
Palms to Pines
Towing
74883 Velie Way
Palm Desert
9.1 miles 18 minutes
Dave’s Towing
Service
370 W. San Rafael Dr.,
Unit 9, Palm Springs
9.4 miles 20 minutes
Affordable Desert
Towing
401 W. Radio Rd., Ste
B19, Palm Springs
9.7 miles 21 minutes
Flat Rate Towing 15775 Palm Dr.
Desert Hot Springs
12.1 miles 24 minutes
E & C Towing 17448 Ben-Mar
Desert Hot Springs
13.2 miles 25 minutes
Aarco Towing 14350 Little Morongo Rd.
Desert Hot Springs
14.3 miles 25 minutes
2.B
Packet Pg. 27
Cathedral City Page 13 of 13 Printed on 5/19/2023
FISCAL IMPACT:
Adopting the Ordinance as proposed will have no impact on the Fiscal Year 2023 -2024 operating budget. However, if the City Council wishes to adopt a franchise fee that collects less than full cost recovery, there could be an impact to the budget ed revenue depending on the direction of the City Council.
ATTACHMENTS:
Attachment 1 - Ordinance re Rotation Tow Services
Attachment 2 - Sample Rotation Tow Service Agreement
2.B
Packet Pg. 28
LA #4867-7241-4542 v1
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CATHEDRAL CITY, CALIFORNIA, ADDING CHAPTER
12.78 TO THE CITY OF CATHEDRAL CITY MUNICIPAL
CODE REGARDING ROTATIONAL TOWING SERVICES
WHEREAS, Pursuant to California Vehicle Code section 12110(b), the City has the authority to grant franchises to companies that provide certain towing services and to collect a franchise tow service fee to offset actual and reasonable costs incurred in connection with administering its towing program; and
WHEREAS, since 2014 the City has had nonexclusive franchise agreements with two tow operators for tow service, which serve on a revolving rotational schedule as determined by the Cathedral City Police Department (“Police Department”); and WHEREAS, the City Council desires to increase the number of tow operators providing services to the City; and
WHEREAS, the City Council desires to create a Tow Rotational Program that provides for safe, efficient and rapid removal of vehicles and to help maintain safety on the roadways and throughout the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. FINDINGS.
The City Council hereby finds that all of the foregoing recitals and the staff repor t presented herewith are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.
SECTION 2. CHAPTER 12.78 OF TITLE 12 OF THE CITY OF CATHEDRAL CITY MUNICIPAL CODE.
Chapter 12.78 [Rotational Towing Services] of Title 12 the City of Cathedral City Municipal Code is hereby added to read as shown in Exhibit "A".
SECTION 3. EFFECTIVE DATE.
This ordinance shall be effective 30 days from and after its final passage.
SECTION 4. SEVERABILITY.
If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional b y the decision of any court of competent jurisdiction, then such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Cathedral City hereby declare they would have adopted this ordinance, and e ach section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any
2.B.a
Packet Pg. 29
Attachment: Attachment 1 - Ordinance re Rotation Tow Services (3764 : Vehicle Tow Service Franchise Agreement)
LA #4867-7241-4542 v1
one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
SECTION 5. PUBLICATION.
The City Clerk is authorized and directed to cause this ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Se ction 36933(a) or, to cause this ordinance to be published in the manner required by law using the alternative summary and posting procedure authorized under Government Code (c).
INTRODUCED at the regular meeting of Cathedral City Council on the _____ day of __________2023.
PASSED, APPROVED AND ADOPTED at the regular meeting of Cathedral City Council on the _______ day of ___________2023.
AYES:
NOES:
ABSTAIN
Rita Lamb, Mayor
ATTEST:
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
Eric S. Vail, City Attorney
2.B.a
Packet Pg. 30
Attachment: Attachment 1 - Ordinance re Rotation Tow Services (3764 : Vehicle Tow Service Franchise Agreement)
LA #4867-7241-4542 v1
Exhibit A
Chapter 12.78
ROTATIONAL TOWING SERVICES
Sections:
12.78.010 Purpose and intent.
12.78.020 Definitions.
12.78.030 Tow truck operator franchise.
12.78.040 Nonexclusive franchise.
12.78.050 Selection of franchisees.
12.78.060 Rotation Tow Services Program.
12.78.070 Vehicle impound cost recovery fee.
12.78.080 Franchise fees.
12.78.090 Franchise agreements.
12.78.100 Additional services to be provided.
12.78.110 Authority to maintain City towing operations and towing yard.
12.78.010 Purpose and intent.
It is the intent of this chapter and any subsequent amendments thereto to prescribe the basic regulations for the operation of the City of Cathedral City ("City") and Cathedral City Police Department ("Police Department") towing service in emergency situations and in the removal of vehicles that are abandoned, involved in an accident, or constitute an obstruction to traffic because of mechanical failure. It is the purpose of the City Council in enacting this chapter to provide a fair and impartial means of distributing requests for towing services among qualified franchises, and to ensure that such service is prompt and reasonably priced, and in the best interests of the public as well as the interest of efficient policing operations for the removal of such vehicles from public streets.
12.78.020 Definitions.
For purposes of this chapter, the following terms, phrases, words, and derivations shall have the meaning given in this section:
"City Manager" means the City Manager of the City of Cathedral City. "Franchise agreement" means an agreement between the City and a franchisee for the purpose of providing towing services as provided in this chapter.
2.B.a
Packet Pg. 31
Attachment: Attachment 1 - Ordinance re Rotation Tow Services (3764 : Vehicle Tow Service Franchise Agreement)
LA #4867-7241-4542 v1
"Franchisee" means a certain tow truck operator to which the Police Chief, in cooperation with the City Manager, grant a nonexclusive franchise for purposes of providing towing services to the City under and pursuant to the provisions of this chapter. "Police Chief means the Chief of Police of the Police Department of the City of Cathedral City. "Police Department" means the Police Department of the City of Cathedral City. "Tow truck operator" means a towing company and the owner(s) and/or managing employee(s) of a towing company.
12.78.030 Tow truck operator franchise.
The Police Chief, in cooperation with the City Manager, may at their discretion grant a nonexclusive franchise to a tow truck operator ("franchisee") to provide towing services to the City under and pursuant to the provisions of this chapter.
12.78.040 Nonexclusive franchise.
A. All franchises granted to franchisees pursuant to this chapter shall be nonexclusive and shall be for a term to be specified by the Police Chief in the franchise agreement between the City and the franchisee.
B. No provisions of this chapter shall be deemed to require restricting the number of franchises to one or any particular number, and no provision of this chapter shall be deemed to require the Police Chief to grant any franchise if the Police Chief determines that the grant of any such franchise is not in the best interest of the City and the public.
C. No provision of this chapter shall be deemed to restrict the Police Chief’s ability to enter into an agreement with a towing company that does not meet the qualifications as provided herein in order to provide specialized towing services on behalf of the City.
12.78.050 Selection of franchisees.
A. The selection of the franchisees shall be done through a competitive selection process.
Upon any opening(s) on the rotation list, the Police Chief, in cooperation with the City Manager, shall issue a notice of request for qualifications (RFQ) to solicit interested tow truck operators.
The RFQ shall be posted on the City's website and posted on a website devoted to procurement services, bid and vendor management such as Planetbids.com. Responses to the RFQ shall be due no earlier than 20 days following posting of the notice as required herein.
B. The Police Chief, in coordination with the City Manager or designee, shall evaluate the qualifications of the tow truck operators responding to the RFQ. No later than 60 days after receipt of the responses to the RFQ, the Police Chief shall submit to the City Council for consideration the qualifications of the tow truck operator(s) that they deem most qualified together with a franchise agreement pursuant to the Rotation Tow Services Program.
C. With respect to the selection process as provided herein, the Police Chief shall determine the number of franchisees needed to provide towing services to the Police Department. In determining the required number of franchisees, the Police Chief may consider the following factors:
2.B.a
Packet Pg. 32
Attachment: Attachment 1 - Ordinance re Rotation Tow Services (3764 : Vehicle Tow Service Franchise Agreement)
LA #4867-7241-4542 v1
1. The operational needs of the Police Department;
2. Population growth;
3. The number of currently authorized franchisees and their average response time;
4. Administrative burdens imposed by the number of franchisees to be included in a rotation list; and
5. Such other reasonable factors as determined by the Police Chief.
D. With respect to evaluating the qualifications of the tow truck operators responding to the RFQ, the Police Chief shall consider the following factors:
1. Whether the tow operation applicants can satisfy the insurance, business license, and tow operator permit requirements of the franchise agreement;
2. Whether the applicants are qualified on the basis of prior experience in the towing operation business and financial responsibility;
3. Whether the tow operation applicants can provide service calls for the police department twenty-four hours a day, including holidays;
4. Whether the applicants will accept all tows requested by the city, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment;
5. Whether the applicant, or any person involved with the applicant has been refused a towing permit or contract or had a towing permit or contract suspended or revoked by this city or any other city;
6. Applicants’ rates, fees and other charges when the tow is initiated by a call from the city, including, applicants standard tow rate; impoundment rates for day and night and whether an after-hours release fee is charged; hourly rates for extended service, based on a thirty minute maximum normal time after arrival at the location for the tow; and daily storage fees and list of other miscellaneous tow operation fees; and
7. Whether applicants are able to meet the maximum response time as determined by the Police Chief.
12.78.060 Rotation Tow Services Program
The tow truck operators who obtain a franchise pursuant to this chapter shall provide towing service to the City pursuant to the Rotation Tow Services Program established by the Police Chief.
12.78.070 Vehicle impound cost recovery fee.
A. The vehicle impound cost recovery fee ("VICR fee") shall be set by the Police Department.
B. The City hereby establishes a VICR fee, payable when a registered owner or a legal owner seeks the release of a vehicle which the Police Department has impounded.
2.B.a
Packet Pg. 33
Attachment: Attachment 1 - Ordinance re Rotation Tow Services (3764 : Vehicle Tow Service Franchise Agreement)
LA #4867-7241-4542 v1
C. A registered owner who redeems an impounded vehicle or requests its release from a franchisee's storage facility shall first pay to the Police Department the VICR fee.
D. The Police Department may waive the VICR fee due to extenuating circumstances. It is not the intention of the City nor the Police Department to penalize victims. Circumstances under which the VICR fee may be waived include the impounding of recovered stolen or embezzled vehicles, and vehicles impounded due to driver injury or incapacitation.
12.78.080 Franchise fees.
Any tow truck operator granted a franchise pursuant to the provisions of this chapter shall pay to the City franchise charges and fees pursuant to the franchise agreement. Such fee shall not exceed the City's annual cost of administration and enforcement of this chapter.
12.78.090 Franchise agreements
All franchises granted by the Police Chief pursuant to this chapter shall be memorialized in a written franchise agreement between the franchisee and the City.
12.78.100 Additional services to be provided.
Franchisee shall provide to the City, at no charge, the services needed to facilitate the City's vehicle abatement program. Additionally, the franchisee will provide emergency response to aid and service City and Police Department vehicles that are one ton or less, within fifty miles of City limits, at no cost to the City or Police Department.
12.78.110 Authority to maintain City towing operations and towing yard.
Nothing in this chapter shall be construed as restricting or prohibiting the City from conducting its own towing operations or maintaining its own towing yard, either in lieu of, or in addition to, any franchise awarded pursuant to this chapter.
2.B.a
Packet Pg. 34
Attachment: Attachment 1 - Ordinance re Rotation Tow Services (3764 : Vehicle Tow Service Franchise Agreement)
LA #4877-7904-7502 v2
ROTATION
TOW SERVICE
AGREEMENT
May 2023
2.B.b
Packet Pg. 35
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
TABLE OF CONTENTS
ELEMENT PAGE
-i-
1. DEFINITIONS ................................................................................................................................. 2
2. TERM OF THE AGREEMENT AND OPTION TO RENEW ....................................................... 2
3. ROTATION LISTS .......................................................................................................................... 2
4. TOW OPERATORS ........................................................................................................................ 3
5. TOW OPERATOR’S BUSINESS ................................................................................................... 5
6. RESPONSE TO CALLS .................................................................................................................. 6
7. STORAGE YARD ........................................................................................................................... 8
8. TOW TRUCK DRIVERS .............................................................................................................. 10
9. TOW TRUCK CLASSIFICATIONS ............................................................................................ 10
10. GENERAL EQUIPMENT SPECIFICATIONS ............................................................................ 12
11. INSPECTIONS .............................................................................................................................. 12
12. FEES PAYABLE TO CITY .......................................................................................................... 13
13. RATES CHARGED BY CONTRACTOR TO VEHICLE OWNERS .......................................... 14
14. ADJUSTMENT OF RATES UPON EXERCISE OPTION .......................................................... 16
15. COLLUSION ................................................................................................................................. 16
16. INSURANCE ................................................................................................................................. 17
17. DEMEANOR AND CONDUCT ................................................................................................... 19
18. TOW COMPLAINTS .................................................................................................................... 19
19. COMPLIANCE WITH LAW ........................................................................................................ 20
20. COMPLIANCE WITH TOW SERVICE AGREEMENT ............................................................. 20
21. DISCIPLINARY ACTION ............................................................................................................ 21
22. TERMS OF DISCIPLINARY ACTION ....................................................................................... 22
23. HEARING/APPEAL ..................................................................................................................... 23
24. ADVERTISING ............................................................................................................................. 23
25. CANCELLATION ......................................................................................................................... 23
26. ENTIRE AGREEMENT ................................................................................................................ 24
27. INTERPRETATION ...................................................................................................................... 24
28. SEVERABILITY ........................................................................................................................... 24
29. GOVERNING LAW ...................................................................................................................... 24
30. VENUE .......................................................................................................................................... 24
31. ATTORNEYS FEES ...................................................................................................................... 24
32. AUTHORITY ................................................................................................................................ 25
2.B.b
Packet Pg. 36
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
TABLE OF CONTENTS
(continued)
ELEMENT PAGE
-ii-
33. OPERATOR APPROVAL ............................................................................................................ 25 EXHIBIT A ................................................................................................................................................. 26 EXHIBIT B ................................................................................................................................................. 28
2.B.b
Packet Pg. 37
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
1 of 30
LA #4877-7904-7502 v2
VEHICLE TOW SERVICE FRANCHISE AGREEMENT
BY AND BETWEEN THE CITY OF CATHEDRAL CITY
AND
_______________________________
THIS VEHICLE TOW SERVICE FRANCHISE AGREEMENT (“AGREEMENT”) is made and entered into this _______ by and between the City of Cathedral City, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as “CITY” and _______, hereinafter referred to as “OPERATOR.”
This AGREEMENT contains terms and conditions that a company agrees to comply with in order to receive and maintain a rotation tow listing with the CITY. Participation in the CITY’s Rotational Tow Program is voluntary and is not intended to be a main source of income. An OPERATOR, by agreeing to participate in the Program is not acting as an agent for the CITY or the Cathedral City Police Department when performing services under the AGREEMENT. Exceptions to compliance with the AGREEMENT shall not be authorized by verbal agreement.
WHEREAS, CITY desires vehicle towing companies as independent contractors for the purposes of satisfying all of CITY’s vehicle towing needs pursuant to CITY’s request; and WHEREAS, CITY finds and determines that the unauthorized parking of vehicles that cannot be removed constitutes a public nuisance and public emergency affecting the property, public safety, and welfare of the residents of the CITY; and
WHEREAS, CITY solicited proposals from qualified vehicle towing companies which included, but was not limited to, OPERATOR; and
WHEREAS, based on OPERATOR’s qualifications and experience, it was determined by CITY that OPERATOR is “uniquely” qualified to perform the services described in this AGREEMENT; and WHEREAS, on _______, the CITY’s City Council, at a regularly scheduled meeting of the CITY’s City Council and pursuant to the recommendation of the CITY’s Chief of Police, authorized CITY to enter into an agreement with OPERATOR for vehicle towing services on behalf of CITY; and WHEREAS, this AGREEMENT is drafted in accordance with all applicable terms and provisions set forth in the California Vehicle Code; and
WHEREAS, this AGREEMENT applies only to vehicles towed and/ or stored at the request of the POLICE DEPARTMENT or CODE COMPLIANCE DEPARTMENT; and
WHEREAS, CITY shall request vehicle towing service by OPERATOR on a rotation/alternate basis between OPERATOR and an additional vehicle towing company currently servicing CITY.
2.B.b
Packet Pg. 38
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
2 of 30
LA #4877-7904-7502 v2
1. DEFINITIONS
A. The term “CITY” shall refer to the City of Cathedral City, and its duly authorized employees, agents, assignees, or designees.
B. The term “OPERATOR” shall refer to the tow operating company and its duly authorized employees, agents, assignees, or designees
C. The term “AGREEMENT” shall refer to the Vehicle Tow Service Franchise Agreement entered into by and between the CITY and OPERATOR.
D. The term “POLICE DEPARTMENT” shall refer to the CITY’s Police Department.
E. The term “CODE COMPLIANCE DEPARTMENT” shall refer to the CITY’s Code Compliance Department.
F. The term “CONTRACT ADMINISTRATOR” shall refer to the CITY’s Chief of Police or their authorized designee.
G. The term “VEHICLE CODE” shall refer to the State of California Vehicle Code.
2. TERM OF THE AGREEMENT AND OPTION TO RENEW
A. The initial term of this AGREEMENT shall be for a total period of three (3) years commencing on the date the AGREEMENT is mutually executed. CITY shall have the right, at its sole discretion, to exercise an option to renew the AGREEMENT for two (2) additional three (3) year periods or portions thereof by providing OPERATOR with a notice to renew within a period of at least thirty (30) days and not greater than sixty (60) days prior to the date on which the term of the AGREEMENT, as may be extended, expires
B. In the event CITY exercises its option to renew this AGREEMENT for an additional three (3) year period or a portion thereof, all terms, conditions, and provisions of this AGREEMENT shall remain in effect and govern the duties, responsibilities, and liabilities of the parties hereto, subject to Section 14 herein. Any and all proposed adjustments in fees, rates, and service charges must be approved by the CITY’s City Council before CITY exercises its option to renew this AGREEMENT.
3. ROTATION LISTS
A. A call to an OPERATOR shall constitute one turn on the list, and the OPERATOR shall be moved to the bottom of the list.
1) This includes when the OPERATOR fails to answer the phone, is unable to respond, is unable to perform the required service, refuses to respond or provide service, or is canceled due to excessive response time.
B. If it is determined the OPERATOR is not needed and is canceled by the CITY, up to and including arrival on scene and standby time which does not result in a tow, there shall be no charges and the OPERATOR shall be placed back at the top of the list.
2.B.b
Packet Pg. 39
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
3 of 30
LA #4877-7904-7502 v2
C. If the OPERATOR responds to a CITY call and is canceled by the vehicle’s registered owner or agent, prior to the OPERATOR taking possession of the vehicle, there shall be no charge and the OPERATOR shall be placed back at the top of the list. 1) Possession is deemed to arise when the vehicle is removed and is in transit, or when vehicle recovery operations or load salvage operations have begun (Section 3068.1[a] of the Civil Code [CC] and Section 22851[a][1] of the California Vehicle Code [CVC]).
2) Whenever a vehicle owner returns to a vehicle that is in possession of a towing company prior to the removal of the vehicle, the owner may regain possession of the vehicle from the towing company if the owner pays the tow company the towing charges incurred at the time service is concluded (Section 22851[a][2] CVC).
NOTE: Simply attaching a cable to or blocking a vehicle does not constitute recovery or load salvage operations.
D. Nothing in the AGREEMENT shall prohibit a Chief of Police, supervisor, responding officer, or designee, from requesting a specific tow company when, in their opinion, the necessary resources to clear a hazard are not available from the tow company currently at the top of the rotation tow list.
1) In such an instance, the selected company would then go to the bottom of the list and those tow companies which were by-passed, would remain in the same list order.
E. Nothing shall prohibit a Class B, C, or D OPERATOR from maintaining a position on a lighter class rotation list, provided the tow truck meets the equipment specifications for that class of operation.
1) Regardless of the class of tow truck utilized or responding to the call, charges shall not be more than for the class of vehicle towed or serviced, except when vehicle recovery operations require a larger class tow truck.
4. TOW OPERATORS
A. OPERATORs applying for the rotation tow program shall have a minimum of three (3) verifiable years of for-hire towing experience, as an owner or principal, prior to responding to a request for qualifications to qualify for a rotation tow listing. 1) The three (3) verifiable years of for-hire experience shall be determined by the CITY.
B. OPERATORs and owners who do not meet the three (3) verifiable years of for-hire towing experience, may be considered if a full-time manager is employed who possesses three (3) verifiable years of for-hire tow experience, as an owner, principal, or full-time manager.
1) The three (3) verifiable years of for-hire experience, as an owner, principal, or full-time manager shall be determined by the CITY.
2.B.b
Packet Pg. 40
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
4 of 30
LA #4877-7904-7502 v2
C. Management experience shall be determined and qualified by the CITY as follows:
1) The designation of “manager” implies general power and permits reasonable inferences that the employee so designated is vested with the general conduct and control of their employer’s business.
2) An individual who has charge and control of a business and is vested with a certain amount of discretion and independent judgment.
D. OPERATOR shall notify the CITY of arrest/conviction notifications for all OPERATORs, managers, and tow truck drivers. An OPERATOR shall notify the CITY of any arrest and/or conviction of a tow truck driver, manager, or the OPERATOR, prior to the beginning of the next work shift. Failure to make notification should be cause for disciplinary action.
E. The OPERATOR, manager, and all tow truck drivers shall be enrolled in the Employer Pull Notice (EPN) program.
1) The OPERATOR shall provide a current list of all managers and drivers, and a copy of the current EPN report, or in the case of a newly hired tow truck driver, proof of enrollment in the EPN program, in a response to a request for qualifications.
2) Upon the addition of new managers or drivers, an OPERATOR shall be granted a maximum of 30 days to enroll drivers in the EPN.
F. OPERATOR shall provide to the CITY, on the Effective Date, and then annually thereafter within ten (10) days of the Effective Date’s anniversary, a list of its tow truck operators. This list shall include each tow truck operator’s driver’s license number and a DMV printout for each operator.
G. OPERATORs shall have a Carrier Identification number and a valid Motor Carrier Property (MCP) permit. The MCP documentation shall be provided to the CITY. 1) The expiration of an OPERATOR’s MCP and/or suspension of the MCP, pursuant to Section 34623 CVC, shall result in the immediate suspension of the tow OPERATOR, as well as additional disciplinary action which may be imposed by the Chief of Police.
H. OPERATORs shall have a sufficient number of drivers in order to comply with hours-of- service. All drivers shall comply with intrastate and/or interstate hours of service pursuant to Title 13, Sections 1212 and 1212.5 of the California Code of Regulations (CCR). 1) OPERATORs shall ensure their drivers’ record of duty status complies with Title 13, Section 1213 CCR
I. OPERATORs shall maintain a valid Cathedral City Business License pursuant to Chapter
3.28 of the Cathedral City Municipal Code.
2.B.b
Packet Pg. 41
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
5 of 30
LA #4877-7904-7502 v2
5. TOW OPERATOR’S BUSINESS
A. An OPERATOR’s place of business shall have a sign which clearly identifies it to the public as a tow service.
1) The sign shall have letters which are clearly visible to the public from the street and shall be visible at night.
B. Business hours shall be posted in plain view to the public.
C. An OPERATOR’s place of business shall have posted in plain view to the public the “Towing and Storage Fees and Access Notice” and copies of the notice readily available to the public pursuant to Section 22651.07(a)(1)(A) CVC. 1) The “Towing and Storage Fees and Access Notice” shall be a standardized document plainly printed in no less than 10-point type and shall contain the required language pursuant to Section 22651.07(e) CVC.
D. An OPERATOR’s place of business shall be sufficiently staffed to allow customers to talk face-to-face with a tow company’s owner, manager, or employee during normal business hours.
1) Normal business hours shall not be less than 8 a.m. to 5 p.m., Monday through Friday, except for the following state recognized holidays: New Year’s Day, Martin Luther King Day, President’s Day, Cesar Chavez Day, Memorial Day, Independence Day, Labor Day, Veteran’s Day, Thanksgiving Day, day after Thanksgiving Day, and Christmas Day.
E. An OPERATOR’s place of business shall be open during normal business hours pursuant to Section 22651.07 (d) CVC except for the recognized holidays outlined on D.1. above.
F. The OPERATOR shall maintain records of all tow services furnished at the OPERATOR’s primary business office. (Note: printable electronic records are acceptable.)
1) Invoices shall contain the required itemized information pursuant to Section 22651.07(e) CVC.
2) Itemized invoices shall contain a distinct notice upon the invoice stating “Upon request, you are entitled to receive a copy of the Towing and Storage Fees and Access Notice.” This notice shall be contained within a bordered text box, printed in no less than 10-point type pursuant to Section 22651.07(a)(1)(B)(3) CVC.
G. The OPERATOR’s primary business office shall also maintain business records relating to personnel, insurance, personnel taxes, payroll, applicable operating authorities, local operating authorities, lien sale actions, driver’s record of duty status (intrastate and/or interstate), Federal Communication Commission licensing (if applicable), and non-CITY tows.
H. The CITY may inspect all OPERATOR records relating to compliance with the AGREEMENT and Section 2424 CVC without notice during normal business hours.
2.B.b
Packet Pg. 42
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
6 of 30
LA #4877-7904-7502 v2
I. OPERATORs shall permit the CITY to make copies of business records at their place of business, or to remove business records for the purpose of reproduction. 1) The CITY shall provide a receipt for any record removed from the place of business.
J. An OPERATOR shall maintain business records for a period of two (2) years (effective July 1, 2012), plus the current term of this AGREEMENT, and shall make them available for inspection.
1) Failure of the OPERATOR to comply with the aforementioned inspection requirements shall be cause for disciplinary action.
6. RESPONSE TO CALLS
A. The OPERATOR shall respond to calls 24 hours a day, seven (7) days a week. The time period within which the OPERATOR shall respond to requests for service by service by the Police Department or Code Compliance by providing a tow vehicle at the response location shall be no greater than thirty (30) minutes form the time of such requests.
B. An OPERATOR or tow truck driver shall respond with a properly equipped tow truck of the class required to tow the vehicle, perform vehicle recovery (e.g., rollover, down embankment), provide service (e.g., fuel, flat tire change), and be in possession of the appropriate class of driver license, applicable endorsements, and permits. 1) Any applicable permits (e.g., load variance, oversize) shall be valid and maintained in the tow truck.
C. The OPERATOR shall advise CITY dispatch, at the time of notification, if they are either unable to respond or unable to meet the maximum response time. 1) If, after accepting the call, the OPERATOR is unable to respond or will be delayed in responding, the OPERATOR shall immediately notify the appropriate CITY communications center.
D. A failure or refusal to respond to towing or service calls, and/or repeated failures to meet maximum response time requirements, without justification, shall result in disciplinary action. (This includes refusing to respond for junk vehicle calls. Justification for failure or refusal to respond to calls shall be determined by the CITY.) E. If service, other than towing, recovery, and load salvage, is canceled by the vehicle’s registered owner or agent, no lien shall arise for the service unless the OPERATOR has presented a written statement to the vehicle’s registered owner or agent for the signed authorization of services to be performed pursuant to Section 3068(a) CC. 1) The OPERATOR shall not attempt to take possession of a vehicle in order to establish a lien for any non-towing services performed, or initiated and subsequently canceled.
2.B.b
Packet Pg. 43
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
7 of 30
LA #4877-7904-7502 v2
F. Nothing shall prohibit a Class B, C, or D tow truck from maintaining a place on a lighter class rotation tow list, provided the tow truck meets the equipment specifications for that class of operation.
1) Regardless of the class of tow truck utilized or responding to the call, charges shall not be more than for the class of vehicle towed or serviced, except when vehicle recovery operations require a larger class tow truck.
G. One tow company per vehicle shall be dispatched to a multi-car incident unless the Chief of Police has established policy which allows an OPERATOR to dispatch more than one tow truck to a multiple vehicle collision scene in response to a rotation tow call.
H. If two or more OPERATORs are called to the same incident, distribution of the vehicles shall be at the discretion of the CITY incident commander.
I. When an OPERATOR will be temporarily unavailable to provide services due to a pre- planned or scheduled activity, the OPERATOR shall notify the CITY at least 24 hours prior to the date that services will be unavailable, noting the times and dates of the unavailability.
J. Only tow truck personnel and equipment requested shall respond to a CITY call (e.g., tow truck driver bringing significant others, family members, friends, or pets, is not allowed).
K. An OPERATOR/tow truck driver shall not respond to a CITY call assigned to another OPERATOR or reassign a call to another tow OPERATOR, unless requested to do so by the CITY.
1) Nothing would preclude the assigned OPERATOR/tow truck driver from responding to an incident to ascertain if additional assistance or equipment is required.
L. There shall be no additional charge for any personnel or equipment which is not necessary to perform the required service. Any additional personnel or equipment shall be approved by CITY on scene.
M. There may be times when the OPERATOR/tow truck driver assigned the initial call, may require assistance from an additional OPERATOR/tow truck driver. 1) The assigned OPERATOR/tow truck driver may, with concurrence of the scene manager, request a specific OPERATOR/tow truck driver for additional assistance.
2) The OPERATOR/tow truck driver’s approved request shall be routed through the CITY on scene incident commander.
N. There may be times when an OPERATOR/tow truck driver, who was not called to the scene, comes upon a collision scene where a vehicle or vehicles are blocking a roadway and the on-scene officer requests assistance in clearing the roadway. 1) In such a case, the OPERATOR/tow truck driver may be requested by the officer to move the vehicle to a safe location and leave it.
2.B.b
Packet Pg. 44
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
8 of 30
LA #4877-7904-7502 v2
2) There shall be no charge for this assistance, and the assistance provided shall not change the OPERATOR’s place in the rotation.
a) Violations of Section 22513 CVC shall result in disciplinary action. 3) If the OPERATOR/tow truck driver is requested to provide service at the scene resulting in a tow, that company will be moved to the bottom of the list.
O. It shall be CONTRACTOR’s responsibility to perform the following at no cost to CITY:
1) Tow and store vehicles as requested by CITY including, but not limited to the following:
a) Vehicles taken into custody by the Police Department; b) Any and all vehicles requested to be towed and/ or stored by the POLICE DEPARTMENT or the CODE COMPLIANCE DEPARTMENT
including CITY owned vehicles within fifty miles of CITY limits; c) Vehicles abandoned in public places or on public property or private property within the jurisdiction of CITY so long as requested to be towed and/or stored by the POLICE DEPARTMENT or the CODE
COMPLIANCE DEPARTMENT pursuant to their enforcement powers of the law;
d) Vehicles seized and impounded pursuant to VEHICLE CODE Sections 14602.6 and 14607. 6; and
e) Vehicles requested to be towed and/ or stored pursuant to CITY’s Vehicle Abatement Program as more fully described below.
2) Tow and store vehicles as requested by CITY including, but not limited to the following:
a) Remove all debris resulting from vehicle accidents, including sweeping; b) Perform all necessary work preliminary to towing vehicles such as removing vehicles from ditches, righting vehicles, separating entangled vehicles, disconnecting drive shafts, and other such work as shall be required to enable the towing of certain vehicles; and
c) Perform all requested and necessary towing, battery jump start, and tire change services on City- owned vehicles at the City’s request.
7. STORAGE YARD
A. The OPERATOR shall be responsible for the safekeeping and prevention of vandalism of all vehicles and contents which are stored/impounded by the CITY. 1) At a minimum, a permanent securely fenced or an enclosed storage area of an adequate size shall be provided for the proper storage of vehicles.
2.B.b
Packet Pg. 45
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
9 of 30
LA #4877-7904-7502 v2
B. The primary storage yard shall be at the same location as the business address. 1) Stored/impounded vehicles shall be at the primary storage yard. 2) This requirement may only be waived by a written addendum from the Chief of Police with justification.
C. The primary storage yard must be located no greater than approximately thirty (30) minutes driving distance from the Cathedral City Police Department.
D. A secondary storage yard shall be located reasonably close to the main business office. 1) There shall be no charge to the vehicle’s owner/agent for towing a vehicle from a secondary storage yard to the primary storage yard.
E. Tow OPERATORs shall maintain sufficient storage spaces. 1) A secondary storage yard shall only be utilized if the primary storage yard is full and only with prior CITY approval.
a) This requirement may be only waived by a written addendum from the Chief of Police with justification.
F. An OPERATOR’s employee shall be properly trained to conduct business transactions related to towing, storage, and release of vehicles/property.
G. The OPERATOR or their employee shall release personal property from a vehicle which has been stored/impounded by the CITY at the request of the vehicle’s registered owner or agent pursuant to Sections 22851(b) and 22651.07 CVC. 1) Cathedral City Police Department approval shall be obtained prior to the release of personal property from a vehicle that has been impounded for evidence or investigation.
2) A receipt shall be provided for the removed personal property, with a copy placed inside the stored/impounded vehicle.
a) This procedure shall also apply to the removal of property by the tow OPERATOR and/or their employee to a secured area within the business.
H. Personal property and/or the vehicle shall be released at the primary storage yard. 1) Personal property or a vehicle release from a secondary storage yard shall only be granted if it’s acceptable to the vehicle’s registered owner or agent. a) Personal property is considered to be items which are not affixed to the vehicle. Personal property includes: papers, cellular phones, pull-out radios, clothes, luggage, tools, etc.
I. No fee shall be charged for the release of a vehicle or personal property during normal business hours pursuant to Sections 22851(b) and 22651.07(c)(1) CVC.
2.B.b
Packet Pg. 46
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
10 of 30
LA #4877-7904-7502 v2
1) The maximum charge for a non-business hours release shall be one-half the hourly tow rate charged for the vehicle towed, or less, for initially towing the vehicle pursuant to Section 22851(b) CVC.
2) No lien shall attach to any personal property in or on the vehicle pursuant to Section 22851(b) CVC.
3) Loads for hire (i.e., cargo) are not considered personal property pursuant to Section 3051.5 CC.
J. The OPERATOR shall keep a written record of every vehicle stored/impounded for a period longer than 12 hours pursuant to Section 10650(a) CVC. 1) The record shall contain the name and address of the person storing or requesting the tow, the names of the owner and driver of the vehicle (if ascertainable), and a brief vehicle description (make, model, license plate number, and any vehicle damage) pursuant to Section 10650(b) CVC.
K. The OPERATOR shall allow insurance companies to inspect vehicles at their storage yard at no charge and allow 45 consecutive minutes for inspection as necessary pursuant to Section 22651.07 (3)(B) CVC.
8. TOW TRUCK DRIVERS
A. The OPERATOR shall ensure tow truck drivers responding to calls initiated by the CITY are competent and possess a valid California driver's license of an appropriate class for the vehicle to be driven, and a tow truck driver certificate or a temporary tow truck driver certificate issued by the Department of the California Highway Patrol, to permit the operation of the tow truck pursuant to Section 12520(a) CVC.
B. Tow truck drivers shall perform all towing and recovery operations in the safest and most expedient manner possible.
C. Tow truck drivers shall be at least 18 years of age and shall possess the proper class of license and endorsements for the towed and towing vehicle.
D. Uniforms: CITY rotation tow truck drivers shall wear an identifiable uniform (either shirt and pants, or coveralls) displaying the company and the driver’s name while engaged in CITY rotation tow operations.
E. Safety Garments: CITY rotation tow truck drivers shall wear appropriate warning garments (e.g., vests, jackets, shirts, retroreflective clothing) during daylight and hours of darkness in accordance with Code of Title 8, Section 1598 CCR.
9. TOW TRUCK CLASSIFICATIONS
A. An OPERATOR shall equip and maintain tow trucks covered under the AGREEMENT in accordance with the provisions set forth in the CVC, Title 13 of the CCR, the specifications contained in this AGREEMENT, and in a manner consistent with industry standards and practices.
2.B.b
Packet Pg. 47
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
11 of 30
LA #4877-7904-7502 v2
B. All recovery vehicles (wreckers) shall have an extendable/retractable recovery boom. 1) Class D tow trucks used exclusively for salvage and recovery operations are not required to possess wheel lift capabilities.
2) An OPERATOR who has a car carrier is exempted from the recovery, wheel lift, and boom capability requirements. However, the car carrier must be an additional unit and shall not be used for recovery.
3) An auto-loader without an extendable/retractable boom is an additional unit and shall not be used for recovery.
a) For purposes of the AGREEMENT, recovery is defined as a vehicle which is overturned, down an embankment, or otherwise not upright on its wheels.
C. A violation of the gross vehicle weight rating (GVWR) and/or safe loading requirements of a tow truck should be cause for immediate suspension. This includes exceeding the tow truck’s GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck’s unladen front axle weight on the front axle when towing.
There are four (4) classes of tow trucks covered under this AGREEMENT. 1) Class A - Light Duty
a) An OPERATOR shall possess or be able to obtain at least minimum one tow truck which has a manufacturer’s GVWR of at least 14,000 pounds. 1) After June 30, 2006, Class A 4-wheel drive tow trucks with a GVWR of less than 14,000 pounds may be listed as special equipment on the CITY 234A. These tow trucks shall be used only for recoveries requiring the use of 4-wheel drive. 2) Class B - Medium Duty
a) An OPERATOR shall possess or be able to obtain at least one tow truck with a GVWR of at least 33,000 pounds. The truck shall be equipped with air brakes and a tractor protection valve or device, and be capable of providing and maintaining continuous air to the towed vehicle. 3) Class C - Heavy Duty
a) An OPERATOR shall possess or be able to obtain at least one three-axle tow truck with a GVWR of at least 52,000 pounds. The truck shall be equipped with air brakes and must be capable of providing and maintaining continuous air to the towed vehicle.
4) Class D - Super Heavy Duty
2.B.b
Packet Pg. 48
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
12 of 30
LA #4877-7904-7502 v2
a) An OPERATOR shall possess or be able to obtain at least one three-axle tow truck with a GVWR of at least 54,000 pounds. The truck shall be equipped with air brakes and must be capable of providing and maintaining continuous air to the towed vehicle.
NOTE: For purposes of the AGREEMENT, a “low-boy trailer” is considered special equipment.
10. GENERAL EQUIPMENT SPECIFICATIONS
A. Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chassis GVWR and the classification system used by the American Trucking Association and truck manufacturers. Tow truck and car carrier classifications shall meet all applicable state and/or federal standards.
B. Identification Labels: Each piece of towing equipment shall have a manufacturer’s label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number, model, and rated capacity.
C. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can lift in a winching mode, when the boom is static at a 30- degree elevation with the load lines vertical and the lifting cables sharing the load equally, measured with a live load (weight or load cell).
1) The structural design of the recovery equipment must have a higher load capacity than the performance ratings.
2) Winches shall conform to, or exceed, the specifications set forth by the Recovery Equipment Rating, Society of Automotive Engineers (SAE) Handbook, SAE J706.
3) All ratings for wire rope and chain assemblies are for the undamaged assembly condition. All wire rope and chain assemblies should be the same type, construction, and rating as specified by the original equipment manufacturer.
D. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions.
11. INSPECTIONS
A. The CITY reserves the right to inspect all tow trucks utilized on CITY rotation calls, as well as the OPERATOR’s storage yards(s).
B. The intent of the inspections is to ensure OPERATORs are involved in an ongoing safety maintenance program for their tow trucks. The inspection is not intended to find out what needs to be repaired/replaced on an OPERATOR’s tow truck. A tow truck responding to a CITY call shall be properly equipped and operating in a safe condition.
C. Tow trucks shall comply with California Air Resources Board requirements. Tow trucks not in compliance shall be cause for disciplinary action. OPERATORs shall provide a
2.B.b
Packet Pg. 49
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
13 of 30
LA #4877-7904-7502 v2
current copy of their California Air Resources Board Certificate of Reported Compliance Truck and Bus Regulation in a response of request for qualifications.
12. FEES PAYABLE TO CITY
A. OPERATOR hereby agrees to pay to CITY that amount of fees in accordance with CVC Section 12110 which provides that “a fee in connection with the award of a franchise for towing vehicles on behalf of that public entity . . . . shall not exceed the amount necessary to reimburse the public entity for its actual and reasonable costs incurred in connection with the towing program.”
B. The total amount of franchise fees that each OPERATOR shall pay to CITY in advance during the term of the AGREEMENT is the amount of ________ for the first year of this AGREEMENT which amount shall increase by 3% in Year 2 and 3% in Year 3. The parties acknowledge that the above amount, as adjusted, represents a reasonable estimate of “the amount necessary to reimburse the public entity for its actual and reasonable costs incurred in connection with the towing program” for each annual period. Attached hereto as Exhibit “A” and incorporated herein by this reference is a summary of an estimate of the total costs incurred by CITY in connection with the towing program and the parties hereto agree that said costs are reasonable
C. In addition, for vehicles impounded pursuant to VEHICLE CODE Sections 14602. 6 and 14607. 6, OPERATOR shall pay to CITY on a monthly basis the following amounts which represents a reasonable estimate of the actual and reasonable costs incurred by CITY with regard to vehicles impounded or forfeited pursuant to CVC Sections 14602.6 and14607. 6:
1) Vehicles released to the owner at or after 30 days: $ 361.92 2) Vehicles released to the owner before 30 days: $ 12.06 per day 3) Vehicles sold by OPERATOR: prorated to reflect 1/3 or 33% of total proceeds of sale less the cost of the OPERATOR tow fee and lien fee as stipulated in OPERATOR awarded proposal for vehicles impounded pursuant to CVC section 14602.6 and 14607.6.
D. Both parties acknowledge that the total amount of franchise fees that each OPERATOR shall pay to the CITY is subject to change in the event that an operator is removed from the tow rotation list. In the event that the franchise fees are adjusted, the total amount of franchise fees that each OPERATOR shall pay to the CITY shall not exceed the amount necessary to reimburse the CITY for its actual and reasonable costs incurred in connection with the towing program.
E. Payment of the franchise fees to CITY by OPERATOR for each term of the AGREEMENT shall be made in twelve (12) monthly payments in the total amount of __________ due within ten (10) days after execution of this AGREEMENT and thereafter within ten (10) days of the first of the month, as may be extended pursuant to Section 2 hereof. With regard to those fees paid by OPERATOR for the costs incurred by CITY for vehicles impounded pursuant to CVC Sections 14602.6 and 14607.6, OPERATOR shall
2.B.b
Packet Pg. 50
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
14 of 30
LA #4877-7904-7502 v2
pay all fees on a monthly basis and not later than thirty (30) days after collection of the storage fees by OPERATOR.
F. All payments made pursuant to this AGREEMENT shall be made payable to the “City of Cathedral City” and directed to the attention of the CONTRACT ADMINISTRATOR and shall not be made contingent on any payments due or paid to OPERATOR for the actual tow and/ or storage of any vehicles. With regard to vehicles impounded pursuant to CVC Sections 14602.6 and 14607.6, the actual source of storage fee payments shall have no bearing on OPERATOR’s duty to pay CITY under this AGREEMENT and shall include proceeds that OPERATOR may receive from an auction or other sale of a forfeited vehicle. OPERATOR may prorate payment to CITY to reflect 1/3 or 33% of total proceeds of sale less the cost of the OPERATOR tow fee and lien fee as stipulated in OPERATOR awarded proposal for vehicles impounded pursuant to CVC section 14602.6 and 14607.6.
13. RATES CHARGED BY CONTRACTOR TO VEHICLE OWNERS
A. The rates charged by OPERATOR to vehicle owners for tow and storage services are set forth in the “Rate Schedule” which is incorporated herein by this reference and attached hereto as Exhibit “B”.
B. Even when tow and storage services are specifically requested by CITY, OPERATOR acknowledges that it shall charge vehicle owners only for its tow and storage services incurred pursuant to the terms and provisions of this AGREEMENT. At no time shall OPERATOR hold CITY liable for any tow, storage, or disposal costs incurred pursuant to and during the term of this AGREEMENT even when such services are requested by CITY. It is specifically acknowledged by OPERATOR that the vehicle owner shall be solely responsible for such charges.
C. The rates set forth in the “Rate Schedule” shall apply to OPERATOR’s services for tow and storage for the initial three (3) year period of this AGREEMENT and thereafter unless otherwise adjusted by and between CITY and OPERATOR as set forth in Section 14 herein.
D. OPERATOR shall not make any demand upon the owner of the vehicle for a sum in excess of the rates set forth in Exhibit “B” or otherwise negotiated in accordance with Section 14 herein.
E. Any OPERATOR who charges rates above the rates in this AGREEMENT call shall be subject to disciplinary action.
F. A valid bank credit card or cash payment shall be accepted for payment of towing and/or storage pursuant to Sections 22651.1 and 22651.07(c)(5) CVC. 1) A surcharge shall not be imposed upon a cardholder who elects to use a credit card for payment as a result of a rotation call, pursuant to Section 1748.1 CC and Section 22651.07(c)(5) CVC.
2.B.b
Packet Pg. 51
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
15 of 30
LA #4877-7904-7502 v2
G. The approved schedule of rates charged by the OPERATOR shall be available in the tow truck, and shall be presented upon demand to the vehicle owner/agent for whom the tow service was provided or any CITY officer at the scene.
H. There shall be no additional charge for moving (i.e., driving, towing, pushing, utilizing a forklift) a stored/impounded vehicle from inside an OPERATOR’s storage yard to the front of the business establishment.
I. Storage Fees
1) A vehicle stored/impounded 24 hours or less shall be charged no more than one- day storage pursuant to Section 3068.1(a) CC.
a) If the vehicle is released from storage after 24 hours has lapsed, charges may be allowed on a full, calendar-day basis for each day of storage, or part thereof pursuant to Section 3068.1(a) CC.
1) Storage of vehicles in combination should be charged a per vehicle rate except for dollies, con-gear, vehicle on a car carrier/trailer, etc.
a. Dollies and con-gear, not in combination, may be
charged a storage rate not to exceed Class A storage fees. 2) Inside storage fees shall only be charged when inside storage is requested by the CITY, registered owner, legal owner, insurance company, or when the inside storage can be justified by the tow OPERATOR.
3) The OPERATOR shall display in plain view at all cashier’s stations, a sign as described in Section 3070(d)(2)(E) CC, disclosing all storage fees and charges in force, including the maximum storage rate.
J. Lien Fees
1) If a vehicle has been determined to have a value exceeding four thousand dollars ($4,000), pursuant to Section 22670 CVC, the lien shall be satisfied pursuant to Section 3071 CC (Section 3074 CC).
2) The lienholder may charge a fee for lien sale preparations not to exceed seventy dollars ($70), for a vehicle valued at four thousand dollars ($4,000) or less, and not to exceed one hundred dollars ($100) for a vehicle valued at greater than four thousand dollars ($4,000) (Section 3074 CC).
a) These charges may commence when the lienholder requests the names and addresses of all persons who have an interest in the vehicle from the Department of Motor Vehicles (Section 3074 CC).
b) Not more than 50 percent of the allowable fee may be charged until the lien sale notifications are mailed to all interested parties and the lienholder or registration service agent has possession of the required lien processing documents (Section 3074 CC).
2.B.b
Packet Pg. 52
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
16 of 30
LA #4877-7904-7502 v2
c) This charge shall not be made in the case of any vehicle redeemed prior to 72 hours from the initial storage (Section 3074 CC).
14. ADJUSTMENT OF RATES UPON EXERCISE OPTION
A. In the event CITY desires to exercise its option or options to renew the AGREEMENT for two (3) year term(s) or a portion thereof and OPERATOR decides to adjust its rates for tow and storage services, OPERATOR shall perform the following:
1) Provide CITY with sixty (60) days notification of its desire to adjust its rates prior to the date by which CITY must exercise its option to renew the AGREEMENT; 2) Enter into good faith negotiations for the adjustment of its rates; 3) If, after two (2) weeks from the date of OPERATOR’s notice to CITY of its desire to adjust its rates, CITY and OPERATOR are unable to negotiate rates agreeable to both parties, the parties shall seek immediate mediation of the dispute within thirty (30) days from the date negotiations commenced between the parties; and
4) If mediation between the parties is not successful, then either one of the following shall occur:
a) The tow and storage service rates in effect prior to negotiations between the parties shall apply to the term of the AGREEMENT, or b) The AGREEMENT shall be terminated by either party upon thirty (30) days written notification to the other party.
B. In the event a dispute regarding the adjustment of rates for tow and storage services is submitted to mediation, each party shall bear its own costs for mediation and shall divide the cost of the mediator equally.
15. COLLUSION
A. An OPERATOR and/or applicant shall not conspire, attempt to conspire, or commit any other act of collusion with any other OPERATOR or applicant for the purpose of secretly, or otherwise, establishing an understanding regarding rates or conditions to the AGREEMENT that would bring about any unfair condition which could be prejudicial to the CITY, the motoring public, or other OPERATORs.
B. A finding by the CITY that any OPERATOR or applicant has been involved in collusion shall be cause for denial of an application or shall nullify the AGREEMENT. Any OPERATOR or applicant found to be involved in any act, or attempted act of collusion, shall be disqualified from participation on all CITY rotation tow lists for the current term, plus three years.
2.B.b
Packet Pg. 53
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
17 of 30
LA #4877-7904-7502 v2
16. INSURANCE
A. OPERATOR, at OPERATOR’S own cost and expense, shall procure and maintain during the term of this AGREEMENT insurance including, but not limited to, insurance required pursuant to VEHICLE CODE Section 16500.5 and the following:
1) OPERATOR shall maintain worker's compensation insurance and employer’s liability insurance for its employees in accordance with the laws of the State of California. In addition, OPERATOR shall require each sub-OPERATOR, if any, to similarly maintain worker’s compensation insurance and employer’s liability insurance in accordance with the laws of the State of California for all of the sub- OPERATOR’s employees. If any class of employees employed by OPERATOR pursuant to this AGREEMENT is not protected by the California State Worker’s Compensation Law, OPERATOR shall provide adequate insurance for the protection of such employees to the satisfaction of the CITY. This provision shall not apply if OPERATOR has no employees performing work under this AGREEMENT. OPERATOR agrees to waive its statutory immunity under any worker's compensation or similar statute, as respecting the CITY, and to require any and all sub-OPERATORs and any other person or entity involved in the services required in this AGREEMENT to do the same.
2) OPERATOR shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence and two million dollars ($ 2,000, 000) in the aggregate for bodily injury, personal injury and property damage. OPERATOR shall maintain insurance on an occurrence, not claims-made basis. OPERATOR acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an offense while bodily injury and property damage coverage shall be triggered by an occurrence during the policy period.
3) OPERATOR shall maintain automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the OPERATOR arising out or of in connection with the work to be performed under this AGREEMENT, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence.
B. Unless otherwise specified hereunder, each insurance policy required herein shall be with insurers possessing a Best' s rating of no less than A:VII and shall be endorsed with the following specific language:
1) Except for worker's compensation, errors and omissions, professional liability or directors and officers coverage, the CITY, its elected or appointed officers, employees, agents and volunteers are to be covered as additional insured’s with respect to liability arising out of work performed by or on behalf of the OPERATOR, including materials, parts or equipment furnished in connection with such work or operations.
2.B.b
Packet Pg. 54
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
18 of 30
LA #4877-7904-7502 v2
2) This policy shall be considered primary insurance in respect to the CITY, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the CITY, including any self-insured retention the CITY may have shall be considered excess insurance only and shall not contribute with it.
3) This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
4) The insurer waives all rights of subrogation against the CITY, its elected or appointed officials, officers, employees or agents.
5) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the CITY, its elected or appointed officers, officials, employees, agents or volunteers.
6) The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the CITY.
C. Any deductibles or self-insured retentions must be declared to and approved by the CITY.
At the CITY’s option, OPERATOR shall demonstrate financial capability for payment of such deductibles or self-insured retentions.
D. OPERATOR shall provide certificates of insurance with original endorsements to the CITY as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the CITY on or before commencement of performance of this AGREEMENT. Current certification of insurance shall be kept on file with the CITY at all times during the term of this AGREEMENT.
E. Provided the CITY gives its written consent for any persons other than OPERATOR to perform any part of the services required in this AGREEMENT, OPERATOR agrees to require that all parties with whom OPERATOR enters into contracts or whom OPERATOR hires or retains pursuant to or in any way related to the performance of this AGREEMENT, provide the insurance coverage required herein, at minimum, and name as additional insured’s the parties to this AGREEMENT. OPERATOR agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section.
F. In the event this AGREEMENT is terminated for any reason prior to the completion of all obligations and requirements of this AGREEMENT, OPERATOR agrees to maintain all coverages required herein until the CITY provides written authorization to terminate the coverages following the CITY’s review and determination that all liability posed under this AGREEMENT as to the party providing insurance has been eliminated.
G. OPERATOR agrees and acknowledges that if it fails to obtain all of the insurance required in this AGREEMENT in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any sub-OPERATORs or others involved in any way with the performance of services, to the extent such is
2.B.b
Packet Pg. 55
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
19 of 30
LA #4877-7904-7502 v2
permissible under this AGREEMENT, OPERATOR shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the CITY or its officers, employees, servants, volunteers, agents and independent OPERATORs.
H. Proof of insurance shall be in the form of a certificate of insurance. The OPERATOR’s insurance policy shall provide for not less than 30 days written notice to the CITY in the event the insurance policy is canceled or is due to expire.
I. Failure of the OPERATOR to maintain the minimum insurance requirements set forth in the AGREEMENT shall immediately nullify the AGREEMENT, remove the OPERATOR from the rotation tow list, and be subject to disciplinary action by the Chief of Police.
17. DEMEANOR AND CONDUCT
A. While involved in CITY rotation tow operations or related business, the tow OPERATOR and/or employee(s) shall refrain from any acts of misconduct including, but not limited to, any of the following:
1) Rude or discourteous behavior.
2) Lack of service, selective service, or refusal to provide service which the OPERATOR is capable of performing.
3) Any act of sexual harassment or sexual impropriety.
4) Unsafe driving practices.
5) Exhibiting any objective symptoms of alcohol or drug use. a) The OPERATOR/tow truck driver shall submit to a preliminary alcohol screening test upon demand of the CITY if an odor of an alcoholic beverage is detected upon the person.
6) Any acts of discrimination based on a protected group.
18. TOW COMPLAINTS
A. All CITY related tow service complaints received or initiated by the CITY against a tow OPERATOR or tow OPERATOR’s employee shall be accepted and investigated in a fair and impartial manner.
1) The tow OPERATOR and their employees shall cooperate with CITY investigators during the course of an investigation.
B. Alleged violations of the AGREEMENT shall be investigated by the CITY.
C. Complaints for violations of the law not normally investigated by CITY shall be referred to the agency with investigation jurisdiction.
2.B.b
Packet Pg. 56
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
20 of 30
LA #4877-7904-7502 v2
D. The OPERATOR shall be notified in writing of the findings within 30 days of the conclusion of any investigation.
19. COMPLIANCE WITH LAW
A. The tow OPERATOR and employees shall, at all times, comply with federal, state, and local laws and ordinances.
B. Any conviction of the OPERATOR or employee involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of violence, a sexual offense, a drug-related offense, felony driving while under the influence of alcohol and/or drugs, misdemeanor driving while under the influence of alcohol and/or drugs, or acts of moral turpitude should be cause for suspension or removal of an OPERATOR/employee, denial of an OPERATOR/employee’s application, or termination of the AGREEMENT.
C. CITY personnel, as well as tow OPERATORs and their employees, shall not be offered nor accept gratuities pursuant to Section 12110(a) CVC.
D. No tow OPERATOR or their employees shall accept any gratuities from a repair shop for the delivery of a vehicle, not owned by the repair shop or tow company, for the purpose of storage or repair pursuant to Section 12110(c) CVC.
E. An OPERATOR shall satisfy a court order mandating reimbursement to the vehicle or property owner for the damage or loss which occurred while the vehicle was in the OPERATOR’s custody.
F. An OPERATOR or employee arrested/charged for a violation involving any of the above crimes should be suspended until the case is adjudicated.
20. COMPLIANCE WITH TOW SERVICE AGREEMENT
A. The OPERATOR agrees, as a condition of inclusion in the rotation tow program, to comply with the terms and conditions of the AGREEMENT. Furthermore, the OPERATOR or OPERATOR’s agent agrees that failure to comply with these terms and conditions shall be cause for disciplinary action (i.e., written reprimand, suspension, termination, or denial of an application).
B. A violation of the equipment requirements related to safety shall be cause for immediate suspension.
1) The suspension shall remain in effect until the suspension period is completed and the CITY has inspected the equipment and concluded the OPERATOR is in compliance.
C. A violation of the GVWR and/or safe loading requirements of a tow truck may be cause for disciplinary action.
1) This includes exceeding the tow truck’s GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck’s unladen front axle weight on the front axle when in tow.
2.B.b
Packet Pg. 57
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
21 of 30
LA #4877-7904-7502 v2
D. A violation of intentionally overcharging or a pattern of overcharging shall be cause for suspension.
1) The suspension shall remain in effect until the suspension period is completed and proof of reimbursement to the aggrieved customer has been provided to the CITY.
E. Any unsatisfactory evaluation rating issued by the CITY shall be cause for suspension. 1) The suspension shall remain in effect until proof of a satisfactory compliance rating from the CITY has been provided to the Chief of Police.
F. Allowing an incompetent tow truck driver to respond to a CITY call shall be cause for disciplinary action of the OPERATOR.
G. An OPERATORs failure or refusal to respond to a call by the CITY shall be cause for disciplinary action of the OPERATOR.
H. An OPERATOR responding a tow truck driver to a CITY call (i.e., the drivers dispatched by the tow OPERATOR’s business) who has not been approved by the CITY shall be cause for disciplinary action of the OPERATOR.
I. Tow OPERATORs shall not record (i.e., videotape or photograph) a scene unless it is for official use by the tow company for business related reasons. 1) The on-scene investigating officer or incident commander shall make the determination when a tow OPERATOR may record a scene for tow related business reasons.
2) In the event a tow OPERATOR is determined to be in violation of this provision, they will immediately surrender any such recording device to an officer of the CITY.
21. DISCIPLINARY ACTION
A. The Chief of Police shall take disciplinary action against an OPERATOR for violations investigated and sustained. Furthermore, the OPERATOR agrees that failure by the OPERATOR, or their agent, to comply with these terms and conditions shall be cause for disciplinary action (i.e., written reprimand, suspension, denial of an application, or termination from the CITY Rotation Tow Program).
1) The Chief of Police shall retain discretion regarding the length of any suspension imposed pursuant to the terms and conditions of this AGREEMENT.
B. Nothing shall preclude the CITY from taking the appropriate enforcement or administrative action for any violations of law.
C. Nothing herein shall be deemed to prohibit the CITY from immediately suspending, terminating, or denying an application of any OPERATOR or employee for any of the following:
2.B.b
Packet Pg. 58
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
22 of 30
LA #4877-7904-7502 v2
1) Whose conduct, in the opinion of the Chief of Police, is deemed to be a danger to the motoring public (e.g., registered sex offender, acts of violence, fraud). 2) A violation of equipment requirements, related to safety. 3) Repeated failures or refusals to respond to a call.
4) Who has engaged in conduct constituting a flagrant violation of the AGREEMENT.
D. Records of violations shall be retained by the CITY for 36 months, plus the current AGREEMENT term.
22. TERMS OF DISCIPLINARY ACTION
A. Violations of the terms and conditions of the AGREEMENT may be cause for disciplinary action in the following manner:
1) First violation within a 12-month period – letter of written reprimand. 2) Second violation within a 12-month period – one to 30-day suspension. 3) Third violation within a 12-month period – 60 to 90-day suspension. 4) Fourth violation within a 12-month period – termination of the AGREEMENT.
NOTE: Nothing may preclude a Chief of Police from imposing a suspension for a first violation.
B. Violations of the terms and conditions of the AGREEMENT which warrant suspension for the first violation are categorized as major violations. Any subsequent or continuing major violation may be cause for termination.
1) In lieu of termination, the CITY may impose additional suspensions for longer periods, if deemed appropriate.
2) When considering disciplinary action for a major violation of the AGREEMENT, a Chief of Police should take into consideration all violations which have occurred within 36 months prior to the date of the current violation.
C. A suspended or terminated OPERATOR, and/or the tow business owner at the time of the suspension or termination, shall not be eligible for a rotation listing for the duration of the suspension or termination.
1) This provision applies to the OPERATOR working in any capacity within any tow business or operating any tow business, even if operated under new ownership.
D. If the OPERATOR is serving a suspension, the OPERATOR shall be required to have complied with all terms and conditions of the current AGREEMENT at the time of reinstatement.
2.B.b
Packet Pg. 59
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
23 of 30
LA #4877-7904-7502 v2
E. An OPERATOR shall comply with all the terms of the suspension (i.e., restitution to victims, court orders) prior to reinstatement or reapplication.
23. HEARING/APPEAL
A. A hearing shall be granted, upon an OPERATOR’s request, within ten (10) calendar days, for any of the following circumstances:
1) OPERATOR is served with disciplinary action.
2) Denial of an OPERATOR’s rotation tow application or an OPERATOR/driver application.
B. The Chief of Police shall provide written notification to the OPERATOR requesting a hearing indicating acknowledgement of the hearing request and a hearing date assigned.
C. A hearing shall be held as soon as practicable.
D. The hearing shall be conducted by the Chief of Police or designee, and the OPERATOR shall be entitled to present all relevant facts and circumstances in support of the OPERATOR’s position.
1) The OPERATOR shall be entitled to present testimony of at least one qualified person (i.e., representation by counsel or attorney).
E. The OPERATOR shall be notified in writing of the Chief of Police’s decision(s) within ten (10) business days of the date of completion of the hearing.
F. Disciplinary action shall not take effect until the hearing and appeal process has been exhausted, with the exception of OPERATORs whose conduct is deemed to be a danger to the motoring public or who continue to violate the terms and conditions of this AGREEMENT.
G. If an OPERATOR fails to request a hearing or appeal within the specified time or fails to appear at a scheduled hearing or appeal, the action taken by the CITY Chief of Police shall be final and the disciplinary action shall take effect upon written notification to the OPERATOR by the Chief of Police.
24. ADVERTISING
A. The OPERATOR shall not display any sign or engage in any advertisement indicating an official or unofficial connection with the CITY.
25. CANCELLATION
A. This AGREEMENT may be canceled by an OPERATOR by providing written notice to the CITY.
2.B.b
Packet Pg. 60
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
24 of 30
LA #4877-7904-7502 v2
26. ENTIRE AGREEMENT
A. This AGREEMENT supersedes any and all other AGREEMENTs, either oral or written, between the CITY and OPERATOR with respect to the subject matter of this
AGREEMENT
B. This AGREEMENT contains all of the covenants and AGREEMENTs between the parties with respect to the subject matter of this AGREEMENT, and each party to this AGREEMENT acknowledges that no representations, inducements, promises, or AGREEMENTs have been made by or on behalf of any party except those covenants and AGREEMENTs embodied in this AGREEMENT.
C. No AGREEMENT, statement, or promise not contained in this AGREEMENT shall be valid or binding.
27. INTERPRETATION
A. This AGREEMENT was prepared by the parties jointly and equally, and shall not be interpreted against either party on the ground that one of the parties was solely responsible for preparing the AGREEMENT or caused the AGREEMENT to be prepare.
28. SEVERABILITY
A. If any one or more of the sentences, clauses, paragraphs or sections contained herein is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this AGREEMENT and shall not affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein.
29. GOVERNING LAW
A. The validity of this AGREEMENT and any of its terms or provision, as well as the rights and duties of the parties under this AGREEMENT, shall be construed pursuant to and in accordance with California Law.
30. VENUE
A. All proceedings involving disputes over the terms, provisions, covenants or conditions contained in this AGREEMENT and all proceedings involving any enforcement action related to this AGREEMENT shall be initiated and conducted in the applicable court or forum in Riverside County, California.
31. ATTORNEYS FEES
A. In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this AGREEMENT or as a result of any alleged breach of any provision of this AGREEMENT, the prevailing party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorneys' fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof.
2.B.b
Packet Pg. 61
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
25 of 30
LA #4877-7904-7502 v2
32. AUTHORITY
A. The persons executing this AGREEMENT on behalf of the parties hereto warrant that they are duly authorized to execute this AGREEMENT on behalf of said parties.
33. OPERATOR APPROVAL
I certify that all drivers operating under this Tow Service Agreement (AGREEMENT) are qualified and competent. I further certify that I have read and understand this AGREEMENT and agree to abide by all the provisions. I further agree to indemnify, defend, and save harmless the CITY, its officers, agents, and employees from any and all claims and losses accruing or resulting to the OPERATOR in connection with the performance of the AGREEMENT, and from any and all claims and losses accruing or resulting to any person, firm, or corporation who may be injured or damaged by the OPERATOR in the performance of this AGREEMENT. The OPERATOR, and the agents and employees of the OPERATOR, in the performance of this AGREEMENT, shall act in an independent capacity and not as officers or employees or agents of the City of Cathedral City. The terms of this AGREEMENT will become effective:
__________________________ and end _____________________________________.
Date Date
OPERATOR Approval
Signature
Printed Name
Company
Title
Date
Business Address
Phone Number
Motor Carrier Permit Number
IN WITNESS WHEREOF, the Parties hereto have executed this AGREEMENT on the date first indicated above.
CITY OF CATHEDRAL
2.B.b
Packet Pg. 62
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
26 of 30
LA #4877-7904-7502 v2
____________________________
Charles McClendon, City Manager
OPERATOR
____________________________
ATTEST: APPROVED AS TO FORM:
____________________________ ___________________________ Tracey Martinez, City Clerk Eric S. Vail, City Attorney
2.B.b
Packet Pg. 63
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
27 of 30
LA #4877-7904-7502 v2
EXHIBIT “A”
SUMMARY OF ANNUAL PROGRAM COSTS
A) Facilities and Infrastructure
(1) Building - 2.5% of Operating costs of $602,553 $15,064 (2) Information Systems Expense – 4% of City’s total information Systems Expenditures ($1,670,682) $41,767
Total Incurred Facilities and Infrastructure costs $56,831
B) Professional Services
(1) Legal Expenses for contract, consulting and litigation 15 hours - @$290.00 per hour =$4350.00/3 $1,450
C) Personnel Costs – Administrative (Fully Benefitted per hour cost) Based on 720 Vehicles Towed in Fiscal Year
(1) Police Officer - 400 hours @ $174 $69,600 (2) Community Service Officer-140 hours @$104 $14,560 (3) Dispatcher –360 hours @ $127 $45,720 (4) Records Clerk – 360 hours @ $118 $42,480 (5) Sergeants – 48 hours @ $248 $11,904
(6) Chief of Police – 13 hours @ $369.00 $4,797
(7) Deputy Chief of Police* – 20 hours @ $206 per hour $4,120 (8) Commander - 20 hours @ $287 per hour $5,740
(9) Administrative Office Coordinator – 20 hours @ $94 $1,880 (10) Management Analyst – 40 hours @ $146 $5,840
Total Incurred Administrative Personnel Costs $195,844
D) Materials and Supplies
(1) Total Incurred forms, supplies and postage costs $1,000
Summary of Incurred Costs
1) Facilities and Infrastructure $56,832 2) Professional Services $1,450 3) Personnel Costs Administrative $195,944 4) Materials and Supplies $1,000
2.B.b
Packet Pg. 64
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
28 of 30
LA #4877-7904-7502 v2
Grand Total Incurred Costs $255,126
E) Revenue Received
Annual Revenue Received for Storage and Impound Releases $91,306 and Lien Sales from Tow Contracts
Incurred Costs of $255,126 – Revenue Received $91,306 = $163,820
Franchise Fee for ___ tow operators $__
F) 30 Day Impound Vehicles – Additional Incurred Costs
1) Additional Tow Hearing Expense – 50 hearings at one-half hour per Hearing for Sergeant’s salary and benefits $248 (fully benefitted Per hour) $6,200
2) Mobile Data Computer System Expense - $60,850 per year at 17% Vehicle storage and impound related emphasis $11,896
3) Incurred cost per 30 day impound per year at 50 impounded vehicles $18,096 ($6,200 + $11,896) divided by 50 impounded vehicles results in a cost of $361.92 per vehicle impounded for 30 days.
Note: Line items that are struck through above are estimated actual and reasonable costs incurred by CITY that CITY has determined not to pass through to CONTRACTOR.
2.B.b
Packet Pg. 65
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
29 of 30
LA #4877-7904-7502 v2
EXHIBIT “B”
Chart of Tow Fee Schedules
The following rate structure shall apply for all towing and storage services requested by the Police Department and Code Compliance Division, except those services requested by City employees for City-owned vehicles which shall be subject only to the charges in Section 6(O)(1)(B) of the Agreement. The hourly rates below are calculated on a “door to door” basis, and charges commence when the tow truck is dispatched to the scene and conclude when the tow truck returns to the storage yard.
A. Basic Hourly Tow Rate: Class A Tow Truck $245
One hour minimum
1) The base hourly rate per tow shall apply to all towed passenger vehicles and trucks rated at less than ten thousand (10,000) pounds gross vehicle weight. This rate also applies to difficult removal work involving the remove of vehicles from deep ditches or flood control channels or separating two entangled vehicles.
B. Special Duty Hourly Tow Rate: $250
One hour minimum
1) The special duty hourly rate shall apply when a four-wheel drive tow truck is necessary for off-road recovery of vehicles. The hourly rate
C. Heavy Duty Hourly Tow Rate:
1) Two Axel Category: Class B Tow Truck $300
One hour minimum
a. The two (2) axel hourly rate shall apply to all towed vehicles with a rate capacity of ten thousand (10,000) pounds gross vehicle weight to, but not including vehicles with thirty (30,000) pounds gross vehicle weight.
2) Three (3) Axel Category: Class C and D Tow Trucks $400 One hour minimum
a. The three (3) axel hourly rate shall apply to all towed vehicles with a rate capacity of thirty (30,000) pounds gross vehicle weight or more.
3) The hourly rate for all heavy -duty towing (two and three axels) includes difficult removal of vehicles, up righting overturned vehicles, and the use of special equipment and preparation prior to towing.
2.B.b
Packet Pg. 66
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
30 of 30
LA #4877-7904-7502 v2
D. Charges for Related Services:
1) Lock Out, Tire Change, Jump Start: $90
a. The standard charge for opening locked vehicles, tire change and jump start is ninety dollars ($90) when no towing is involved. If towing is involved, there shall be no additional charge for these services.
2) Dolly:
a. There is no additional charge for the use of dolly in the towing service.
3) After Hours Release Fee:
a. There shall be an after -hours gate fee of ninety dollars ($90) for anyone desiring release of a vehicle at any time other than normal business hours.
E. Storage Fees: (Per Day)
1) Motorcycles, passenger cars
and trucks 20’ or less Outside Storage: $ 80 per day Inside Storage: $100 per day
2) Trailers 15’ or less Outside Storage: $50 per day
3) Trucks, trailers and other Outside Storage $80 per day vehicles 20’ to 30’
4) Trucks, trailers and other Outside Storage $90 per day vehicles 30’ or more
5) Storage fees are charged per calendar day, not on a rolling 24 hour basis. The first daily fee per vehicle is incurred four hours after drop off at the storage facility. Thereafter, a full day’s storage fee will be charged for each calendar day, or part thereof, that the vehicle is stored at Contractor’s facility.
6) In addition to the daily storage fees above , Contractor may charge the following fees for vehicles impounded pursuant to VEHICLE CODE Sections 14602. 6 and 14607. 6:
a. Vehicles released to the owner at or after 30 days: $ 361.92
b. Vehicles released to the owner before 30 days: $ 12.06 per day
Such fees shall be passed through to the City in satisfaction of Contractor’s obligations under Section 12(C) of this Agreement.
2.B.b
Packet Pg. 67
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
31 of 30
LA #4877-7904-7502 v2
F. Lien Fee:
Contractor shall charge lien fees in compliance with Civil Code Section 3074, which are presently $70 for vehicles with a value of $4,000 or less or $100 for vehicles valued at over $4,000. No lien fee shall be charged if the vehicle is redeemed within seventy -two hours of initial storage.
G. Additional Conditions:
1) The above towing charges shall apply regardless of the location from which the tow is made or the location of the storage area or garage where the vehicle is delivered. Such towing charges shall include the clearing and clean -up of an accident site as may be required by the Police Department;
2) There shall be no additional charge for righting an overturned p assenger car or a light pick-up truck if towing is involved;
3) There shall be no additional charge for disconnecting a drive shaft where required for towing;
4) There shall be no charge to City for the storage of a vehicle that has been seized as evidence in a pending investigation.
5) From time to time, the City may request Contractor waive its fees in the event that a vehicle is erroneously stored. When so requested by a sworn supervisor (sergeant or above) of the City’s police department, Contractor shall waive its all fees and report the waiver to a Commander in the City’s Police Department as soon as is feasible thereafter.
2.B.b
Packet Pg. 68
Attachment: Attachment 2 - Sample Rotation Tow Service Agreement (3764 : Vehicle Tow Service Franchise Agreement)
Cathedral City Page 1 of 1 Printed on 5/19/2023
Staff Report
City Council
Meeting Date: May 24, 2023
From: Charles McClendon, City Manager
Title: Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8.
Property Location: Approximately 1.8 acres, Parcel 3 of Trac t No. 28339
Negotiating Parties: Unspecified Parties
Property Owner: City of Cathedral City
Under Negotiations: Price and Terms for potential sale of real property
3.A
Packet Pg. 69
Cathedral City Page 1 of 1 Printed on 5/19/2023
Staff Report
City Council
Meeting Date: May 24, 2023
From: Charles McClendon, City Manager
Title: Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8.
Property Location: Approximately 13.5 acres south of East Pa lm Canyon Drive at Date Palm Drive
Negotiating Parties: City of Cathedral City as the Successor Agency to the former Redevelopment Agency and the City Urban Revitalization Corporation
Property Owner: City Urban Revitalization Corporation
Under Negotiati ons: Price and Terms for potential sale of real property
3.B
Packet Pg. 70