09. Adopt Reso Declaring City's Intention to Grant a Franchise Agrmt for Towing & Storage Srvc and Setting Date for PH to Consider Matter

Item No. 9.

TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:OFFICE OF THE CITY MANAGER
BY:SCOTT LOUGHNER, POLICE CHIEF
DATE:FEBRUARY 10, 2026
SUBJECT:

ADOPT A RESOLUTION DECLARING THE CITY'S INTENTION TO GRANT A

FRANCHISE AGREEMENT FOR TOWING AND STORAGE SERVICES AND SETTING A

DATE FOR THE PUBLIC HEARING TO CONSIDER THE MATTER

EXECUTIVE SUMMARY

The City Council will consider adopting a resolution declaring its intention to grant a Franchise Agreement for towing and storage services and setting a Public Hearing for granting the agreement per the City's Charter. This report is an update on the current towing and storage agreement and the next steps required to approve a new agreement.

RECOMMENDATION

That the City Council:

1. Adopt a Resolution No. 26- 8335, declaring the City's intention to grant a Franchise Agreement for towing and storage services and setting forth the notice of the time and date for hearing objections thereto; and,

2. Set Public Hearing for granting the Franchise Agreement for towing and storage services for February 24, 2026.

BACKGROUND

The Police Department relies on contracted towing and vehicle storage services to support daily enforcement operations, including traffic collisions, abandoned vehicles, impounds, and the secure storage of vehicles held as evidence. The City’s current towing and storage franchise agreement expires on March 27, 2026. In order to ensure continuity of service and avoid any lapse in police towing operations, the City initiated a formal procurement process to establish new franchise agreements prior to the expiration of the existing contract.

Accordingly, the City issued a Request for Proposals (RFP) seeking qualified private towing contractors to provide non-consensual towing and vehicle storage services for the Downey Police Department under a non-exclusive franchise model. The RFP was structured to ensure the City maintains reliable, 24-hour towing and storage services for vehicles involved in collisions, abandoned or inoperable vehicles, evidence holds, and other lawfully authorized police tows. Proposers were required to have a minimum of three years of municipal towing experience and to demonstrate adequate staffing, equipment, facilities, insurance, and financial stability. Proposals were submitted electronically through the City’s PlanetBids system and evaluated by Police Department management staff based on experience, qualifications, responsiveness, references, cost structure, and the ability to meet the City’s operational and public safety needs.

The proposed franchise agreement has a three-year term commencing March 28, 2026. Franchisees must meet defined response-time standards, maintain secure storage facilities for police-hold vehicles, comply with California Highway Patrol towing rate schedules, and adhere to detailed operational and customer service requirements. The agreements also require franchisees to provide certain services at no cost to the City, including towing and storage of vehicles held as evidence and emergency assistance for City vehicles. In addition, franchisees are required to remit a franchise fee equal to 20 percent of gross revenues derived from City-initiated tows, which helps offset the City’s administrative and oversight costs associated with the towing program.

ANALYSIS
In anticipation of the expiration of the City’s existing police towing and storage services agreement, on September 9, 2025, the Police Department initiated a formal Request for Proposals (RFP) process to secure qualified towing and storage services on a non-exclusive franchise basis. The RFP was posted for over a 30-day period and closed on October 11, 2025. The solicitation outlined minimum qualifications, operational requirements, facility standards, response times, and evaluation criteria necessary to ensure the continuation of reliable, secure, and professional towing and storage services in support of police operations. A total of three proposals were received and evaluated by Police Department management staff in accordance with the criteria set forth in the RFP.

One proposal was submitted by Titan Transportation, Inc., who had been the Downey Police Department’s towing and storage services provider since 2009. However, in October of 2025, they could no longer meet the requirements of the agreement due to no longer having a lease at their current location. Titan Transportation, Inc. was unable to secure a different viable location within the City or nearby location to store vehicles. Titan Transportation, Inc. has since closed down and does not meet the minimum requirements of the RFP.

A second proposal was submitted by Astro Tow, a tow company based in Bellflower. Upon review, this proposer was disqualified for failure to meet the RFP’s minimum facility requirements. Specifically, the company’s storage lot was not of sufficient size to accommodate police impounded vehicles, and it lacked secure facilities necessary for the storage of sensitive and evidentiary vehicles. Although the proposer indicated an intent to expand and construct facilities in the future, the required infrastructure did not exist at the time of evaluation and therefore did not satisfy the RFP’s mandatory criteria.

The third proposal was submitted by Mr. C’s Towing, which met all minimum qualifications and requirements outlined in the RFP. Mr. C’s Towing operates a facility located within a reasonable distance of the City of Downey, near Firestone Boulevard and the Interstate 710 Freeway, allowing for timely response to police requests and convenient access for both Police Department personnel and members of the public. The company is well established as a municipal police towing and storage services provider and currently serves several neighboring agencies, including the Montebello, Bell Gardens, and South Gate Police Departments. Police Department staff contacted representatives from these agencies, all of whom provided strong positive feedback regarding Mr. C’s Towing’s professionalism, response times, quality of service, and community involvement.

Mr. C’s Towing began providing towing and storage services to the Downey Police Department on an emergency basis effective October 15, 2025. Over the past few months, Mr. C’s Towing has performed these services in a prompt, professional, and reliable manner. Staff report consistently prompt response times, and diligent safeguarding of sensitive vehicles, including the successful transfer and secure storage of more than 40 evidentiary vehicles previously held by Titan Transportation, Inc.

Based on the results of the RFP process, Mr. C’s Towing demonstrated qualifications, positive performance history with other law enforcement agencies, and the Police Department’s direct experience with the company during the emergency service period, staff recommends approval of a non-exclusive franchise agreement with Mr. C’s Towing for a three-year term beginning March 28, 2026 and ending March 27, 2029.

In accordance with Downey City Charter Section 1403, a public hearing is required to declare the intention to grant a franchise agreement to Mr. C’s Towing. It is requested that the City Council adopt the resolution setting the public hearing for February 24, 2026. This public hearing will be advertised in the Downey Patriot on February 12, 2026, to meet the requirement of being advertised at least once, to said hearing in the official newspaper.

CITY COUNCIL PRIORITIES

Quality of Life, Safety & Infrastructure

FISCAL IMPACT

There is no fiscal impact in this report.

Attachments
Resolution No. 26-8335 - Declaring Intention to Grant Franchise for Towing and Storage Services & Fixing a PublicHearing.pdf RFP - TOWING AND STORAGE SERVICES-2025_Final.pdf

1 CITY OF DOWNEY
NOTICE

REQUEST FOR FORMAL PROPOSALS

NON-EXCLUSIVE FRANCHISE AGREEMENT

FOR TOWING AND STORAGE SERVICES

Notice is hereby given that electronic proposals must be submitted through The City of Downey’s Planet Bids link, located on The City of Downey’s website: www.downeyca.org , by Saturday, October 11, 2025, 4:00 p.m. local time, for the following item(s):

Non-Exclusive Franchise Agreement for Towing and Storage Services

The City of Downey Planet Bids link for downloading the documents for the project is:
https://www.planetbids.com/portal/portal.cfm?CompanyID=24661 .

Proposal responses shall be labeled “Proposal for Non-Exclusive Franchise Agreement for Towing and Storage Services” and submitted, electronically, by Saturday, October 11, 2025, 4:00 p.m. local time. Proposals received after the designated time and date will not be considered. The receiving time on Planet Bids will be the governing time for acceptability of proposals. Proposals must bear original signatures and figures.

2 1. Introduction

The City of Downey (City) is soliciting proposals from qualified, private contactors, who have a minimum of three (3) years of actual operating experience as municipal tow and storage providers, to furnish “non-consensual” vehicle towing and storage operations as a “Franchisee” under a Non-Exclusive Franchise Agreement for Towing and Storage Services. “Non- consensual” towing and storing operations are those tow services ordered or requested by the City’s Police Department or other City employees who are duly authorized by law to remove, impound, or store vehicles for police emergency situations, abandoned or inoperable vehicles, vehicles involved in collisions or which may constitute an obstruction to traffic because of mechanical failure, and any other lawful purposes serving the public health, safety and welfare of the City.

The term of the agreement will be three (3) years, commencing on March 28, 2026.

Proposals must be submitted on the forms provided and submitted electronically using the City of Downey’s Planet Bids link. Proposals will be evaluated by Police Management Staff.

All proposers assume all costs associated with preparation of a proposal in response to this Request for Proposal.

The City of Downey requires a well-managed and financially sound firm with demonstrated experience and technical ability; qualified and trained personnel; secure and well-maintained facilities; updated and reliable equipment; and high levels of customer service and satisfaction to fulfill the requirements outlined in the Request for Proposal (RFP).

The RFP provides an overview of the scope of services and the duties of a Franchisee. The sample Franchise Agreement, attached hereto and made a part of this RFP, includes the full terms, conditions, requirements, specifications, and minimum performance standards for a Franchisee. The Franchise Agreement will constitute the contract between the successful proposer and the City of Downey. The successful proposer will be expected to sign the attached Franchise Agreement without any changes. No other contracts will be executed by the City.

Therefore, before submitting a proposal, the proposer must read and understand the terms of the Franchise Agreement. The proposer must also have the wherewithal to meet each of the Franchise Agreement’s terms, conditions, requirements, specifications and minimum performance standards.

Criteria to be used as a guide in the evaluation shall include but not be limited to the following evaluation factors.

1. Thoroughness and quality of content of the response to the RFP as well as completed and satisfactory responses to the RFP.

2. Company’s overall experience with engagements of similar scope.

3. Company’s technical experience.

3 4. Technical background, experience, tenure and availability of the assigned members.

5. Management of the company, impression of principals and quality of staff.

6. The ability to effectively communicate and work with City officials and staff members in a highly professional capacity.

7. References provided and satisfactory responses from prior references for the proposed company.

8. Acceptability of proposed fee, cost structure(s).

9. Community involvement.

2. Scope of Services; General Duties

The Franchisee’s primary duty will be: responding, on a first priority basis, to requests for towing and storage services initiated by the Police Department. The Franchisee must have a minimum of two (2) tow trucks available at all times (24 hours/day, 7 days/week, 365 days/year, including holidays and weekends) to respond to requests for service from the Police Department.

No exceptions. The Franchisee must also respond to towing requests from other City employees who are duly authorized by law to remove vehicles for storage, investigations, or both.

Typical towing situations will include, but will not be limited to: removing illegally parked vehicles, towing inoperative vehicles as a result of traffic accidents, mechanical breakdowns, storing, or impounding vehicles for investigations, evidence or a violation of law. The Franchisee must provide towing and storage services 24 hours/day, 7 days/week, 365 days/year, including holidays and weekends. No exceptions.

The Franchisee must maintain adequate personnel, equipment, and facilities at all times to perform the required towing services, within the time frames outlined in this proposal and the executed contract.

While the Franchisee has custody of vehicles, the Franchisee will be responsible for their safekeeping, including their contents, until they have been released to the owner or owner’s agent, or disposed of in the manner permitted by law.

Until the Franchisee receives the Police Department’s written authorization, the Franchisee must not release a vehicle to an owner or the owner’s agent when the Police Department is:

a. Holding the vehicle for investigation, examination, or evidence, or requests its special handling or protection (“police hold vehicles”); or

b. Impounding that vehicle for unpaid parking citations, lack of current registration, or a violation of law.

4 To prevent damage to police hold vehicles or denigration of any evidence in or upon those vehicles, such as fingerprints or stains, the Franchisee must store police hold vehicles in a secure area protected against the elements, sources of contamination, and entry by unauthorized persons. The Franchisee must make the secure storage area available for the period of time determined by the Police Department to allow for the proper collection, documentation, and analysis of the evidence.

The Franchisee’s rates, charges, and fees for non-consensual towing, storage, or performing other services under the Franchise Agreement must not exceed the rates, charges, and fees set forth in the “Towing Rates and Storage Fees” section stated in the sample Franchise Agreement, which is fully incorporated as part of this RFP.

3. Franchise Fees

In order for the City to recover its actual and reasonable costs in administering its Towing Service Franchise Program and to administer this Agreement, Franchisee shall pay Franchise Fees to City which shall be shall be due and payable as follows:
a. Franchisee agrees to pay City a Franchise Fee in an amount equal to 20% of Franchisee’s Gross Revenues attributable to the towing, storage and impound services provided by Franchisee to City pursuant to this Agreement for those vehicles towed, stored or impounded when a storage form (CHP 180) has been completed and a Department case number has been assigned.

For purposes of this Agreement, the term “Gross Revenues” means all cash, credits, revenues, property of any kind or nature or other consideration as determined according to generally accepted accounting principles consistently applied, derived directly or indirectly by Franchisee, its affiliates, subsidiaries, parents, and any other person or entity in which Franchisee has a financial interest or which has a financial interest in Franchisee’s tow truck business, arising from or attributable to the towing and storage services, except that credit card processing fees, also known as “discount merchant fees,” and which includes all fees in connection with a credit card transaction, in an amount not to exceed three (3)% per transaction, shall not be included in the calculation of “Gross Revenues,” as defined herein. No other fees or costs in connection with operating expenses are to be deducted from “Gross Revenues.”

4. Facilities

The Franchisee shall maintain a business office and primary storage facility in or within a reasonable distance of the City of Downey to ensure that required response times are consistently met. The location does not need to be within City limits; however, it must be close enough to allow the Franchisee to respond to calls for service without delay and in compliance with the performance standards set forth in this Agreement. In addition, the facility must be located so that it is readily accessible to both police personnel and members of the public who need to retrieve vehicles or conduct business with the Franchisee. The business office and primary storage lot must be in compliance with all specifications set forth in the sample Franchise

5 Agreement attached hereto. The primary storage lot must also be in compliance with all other applicable City, State, and Federal regulations relating to the operation and maintenance of tow service business.

If the Franchisee maintains a secondary storage facility, it shall also be located within a reasonable distance of the City of Downey. The secondary facility must be close enough to allow the Franchisee to transfer or retrieve vehicles without delay, ensure timely response to Police Department needs, and provide convenient access for police personnel and members of the public. The secondary storage lot must also be in compliance with the specifications set forth in the sample Franchise Agreement and all applicable City, State, and Federal regulations relating to the operation and maintenance of a tow service business.

The Police Department may inspect any storage and business facility to ensure it meets all specifications.

5. Response Times and Requirements

a. After receipt of a request to respond, the response time for arrival shall not exceed 20 minutes.

b. The operator shall notify the Police Department Communications Center when a tow unit cannot respond within the 20-minute time period. The operator must give reason and an estimated time of arrival.

c. In the event that the tow vehicle is unable or does not arrive within 30 minutes of time of call, the Downey Police Department reserves that right to request towing services from another tow company.
d. Franchisee may be requested periodically to provide the deployment of trucks for special events such as sobriety check points, street fairs and parades

6. Service of City Vehicles

a. Franchisee shall provide emergency service for City vehicles at no charge to the City.

This service shall be provided at all times including weekends and holidays. Emergency service shall include but is not limited to tire changes, battery jump starts, and towing inoperable vehicles.

7. Towing Rates and Storage Fees

a. CHP Rates Apply. The towing rates and storage fees initiated incurred by City under this Agreement cannot exceed the towing rates and storage fees established each year by the California Highway Patrol (CHP) in accordance with the CHP/Santa Fe Springs Station- Fee Schedule for Public Tows. Franchisee’s rates may be reviewed annually on June 1st to confirm that they match the CHP/Santa Fe Springs Station-Fee Schedule for Public

6 Tows. Franchisee must notify the Chief of Police or his/her designee in writing of any tow rate and storage fee increases to match the CHP/Santa Fe Springs Station-Fee Schedule for Public Tows. The Downey Police Department will verify any increases.

Any disputes will be reconciled through a meeting between the Chief of Police or his/her designee and Franchisee owner. If the rate and fee increases are verified, the new rates will take effect on July 1st. Franchisee agrees that Chief of Police’s, or his/her designee’s, determination concerning tow rates and storage fees shall be final.

b. Short Storage Period. Vehicles stored eight hours or less shall be charged no more than one-day’s storage fees. Each day thereafter shall be calculated by the calendar day.

c. Posting of Rates. Franchisee must maintain a sign listing the rates, fees and charges of all towing and storage services offered. Such sign shall be conspicuously placed in the office or other places where customer financial transactions take place. A copy of the rate schedule shall be maintained inside each tow vehicle and presented upon request by a vehicle owner or driver for any vehicle towed or stored by Franchisee.

d. City Responsible for Rate. In the event that a vehicle is stored or impounded at the direction of the Downey Police Department or other authorized City personnel, and it is subsequently determined that the City is responsible for the cost of such storage and/or towing, Franchisee agrees not to assess the City for costs of tow and/or storage of the vehicle.

e. Storage of Vehicles in Criminal Matters. Franchisee agrees to tow and store vehicles that will be used as, or contain, evidence of crimes for the Downey Police Department without charge to City. Franchisee’s inability to perform this function constitutes a material breach of this Agreement and shall provide the basis for either suspension or revocation of this Agreement, in the discretion of the City. However, Franchisee shall not be required to tow and store vehicles that will be used as, or contain, evidence of crimes if criminal charges are pending against Franchisee, or one of its owners, principals or employees.

f. After Hour Vehicle Releases. Franchisee normal business hours shall be Monday to Friday, inclusive, from 7:00 a.m. to 5:30 p.m., except state holidays. However, when in the opinion of the Chief of Police or his/her designee, unusual circumstances warrant the release of an impounded vehicle or vehicles outside of the normal business hours, the Franchisee shall provide personnel at a call station where they may be contacted for such emergency release or releases during such hours. Such after-hour releases shall be charged at 50 percent (50%) of the current tow rate for release pursuant to California Vehicle Code section 22658(n)(2)(B).

g. In the event any vehicle is towed or impounded or both, through any error of the City of Downey or the operator, neither the vehicle owner nor the City shall have the duty to pay any towing, storage or other fees or charges. Additionally, the Franchisee shall agree to

7 immediately release any vehicle, without charge, upon request of the on-duty Watch Commander.

8. Operating Equipment

At its expense, a proposer must have the following equipment that conforms to the California Highway Patrol’s Classification (CHP Class) for the gross vehicle weight ratings (GVWR) of a truck chassis1. The proposer’s vehicles must also be in compliance with the applicable provisions of the California Vehicle Code, applying to tow trucks (615 CVC), including but not limited to Sections 615, 21711, 24606, 25100, 27700, 27907, and all other regulations pertaining to lighting and safety equipment.

a. A minimum of one (1) flatbed car carrier (Class A or Class B); plus b. A minimum of three (3) light-medium duty tow trucks, consisting of:

1. At least two (2) light duty (Class A); plus

2. At least one (1) medium duty (Class B); plus

c. Preferably, at least one (1):

1. Heavy duty (Class C); or

2. Super heavy duty (Class D); plus

d. Preferably, at least one (1) tow truck that is equipped to lift and carry a disabled person in a wheel chair; plus

e. All trucks must have two-way radio communication equipment.

If the Franchisee is unable to handle the call due to size, location, etc., they will be responsible for requesting another tow service to respond that can handle the situation.

The Franchisee’s tow trucks and flatbed car carriers must meet the Franchise Agreement’s equipment requirements and specifications.

1 GVWR Range (lbs.) CHP Class

10,000 - 19,500 A
19,50 1- 33,000 B
33,001 – 49,999 C
50,000 or more D

9. Trained Personnel

At its expense, the Franchisee must have a sufficient number of properly licensed, trained, and qualified employees to perform the services described in the Franchise Agreement. The City

8 may, at its discretion, conduct a background check as part of the proposal evaluation process of any employee that may include, but is not limited to: fingerprinting, a check of criminal convictions, credit history, driving history, and civil liens and judgments. If the City determines, through a background check, that an employee is not qualified to provide services to the City as specified in the RFP and Franchise Agreement, the City will notify the proposer in writing as to the City’s findings. Although the Franchisee may retain the disqualified employee, the Franchisee must not use or dispatch the disqualified employee for a service that Franchisee provides to the City pursuant to the Franchise Agreement.

10. Insurance

The successful Franchisee will be required to obtain, maintain, and pay for all necessary insurances per the following:

a. General Liability Insurance – Franchisee agrees to maintain a comprehensive general liability insurance policy with a combined single limit for bodily injury and property damage of not less than Two Million Dollars ($2,000,000.00).

b. Commercial Business Automobile Liability (as required by section 16500.5 CVC).

Bodily injury and property damage with a combined single limit of not less than $2,000,000.00.

c. Uninsured Motorist Insurance – legal minimum, combined single limits

d. Garage Liability-Including the premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than $500,000.00.

e. Garage-Keepers Liability-Protecting a vehicle from loss or damage while the vehicle is in Franchisee’s care, custody or control.

f. Workers Compensation Insurance-Maintain a policy of worker’s Compensation insurance providing coverage of persons employed by the Franchisee in connection with work performed in, upon, or around the vehicle to be towed, stored or impounded during the period covered by the Franchise Agreement. The policy must meet all statutory benefit requirements of the Labor Code of the State of California.

11. Interpretation or Correction of RFP

It shall be the sole responsibility of the proposer to read and understand all terms, conditions, specifications, and requirements contained within this request for proposal and the attached sample Franchise Agreement.

If the proposer has any questions about this RFP, the Franchise Agreement, or the scope of work, or if the proposer finds any errors, inconsistency, or ambiguity in the RFP, or the Franchise Agreement, or both, the proposer must submit their question through the Planet Bids link by

9 Friday, September 26, 2025, 1:00 p.m. Any clarifications, interpretations, corrections, or changes made to this RFP or the Franchise Agreement will be posted to the Planet Bids site by Friday, October 3, 2025, 5:00 p.m.

12. Independent Contractor Status

This RFP and the Franchise Agreement are not intended, and must not be construed, to create the relationship of agent, servant, employee, partnership, joint venture, or association between the City and the Franchisee. The Franchisee understands that in performing its services under the Franchise Agreement, the selected Franchisee is, and will be, an independent contractor. The Franchisee proposer acknowledges that the Franchisee and its employees, subcontractors, and anyone who the Franchisee directly or indirectly hires, employs, or uses, are not employees or agents of the City of Downey under any circumstance.

The selected Franchisee has, and will retain, the right to exercise full control over the employment, direction, compensation, and discharge of all persons who the selected Franchisee uses in performing the services under the Franchise Agreement. The selected Franchisee must provide the required services in its own manner and method, except as specified in the Franchise Agreement.

13. Using the Proposal Forms

The Franchisee must submit its proposal only on the forms provided with this RFP. With its proposal, the Franchisee must also submit various required attachments (e.g., photographs, City Business License, list of references, etc.).

The Franchisee must fill in the blanks on the proposal forms, electronically, or by printing legibly in ink. The proposer must complete all portions of the proposal. If a Franchisee fails to provide the information that the forms require, fails to return all of the forms, or fails to submit the required attachments, the City may treat the proposal as incomplete and reject it accordingly.

The Franchisee must place initials next to any/all alterations and erasures on the proposal forms.

The Franchisee should make every reasonable effort to not modify or alter their proposals.

Unauthorized conditions, exceptions, limitations or provisions other than those listed will not be accepted. No exceptions.

14. Submission of Proposals

Proposals must be submitted electronically, on the attached proposal forms and uploaded through The City of Downey’s Planet Bids link, by Saturday, October 11, 2025, 4:00 p.m. local time Proposals will be evaluated by Police Management Staff.

15. Disposition of Proposals

10 All proposals submitted in response to this RFP will become property of the City of Downey, and the City will retain them for a period of time as outlined in accordance with the City’s Record Retention Policy.

16. Award of Franchise Agreement

The Chief of Police and Police Management Staff will evaluate, rate, and rank the proposals and make a recommendation to the City Council to award the Franchise Agreement to the Franchisee(s) that they deem most qualified to meet the specifications set forth in Franchise Agreement and the City’s needs.

It shall be the sole decision of the Chief of Police and Police Management Staff to make award recommendations.

By responding to this RFP, all Franchisees agree to accept the City’s decision on which Franchisees best meets the City’s needs and shall be accepted without hesitation or recourse.

The City Council has the right to reject all bids at their sole discretion.

17. Termination of Agreement

Franchisees are advised that the Franchise Agreement provides for termination of the Agreement under the following circumstances:

a. Termination without Cause

Either party may terminate the Franchise Agreement at any time, without cause, upon 30 days’ written notice to the other party. Upon receipt of the notice of termination, the provider must immediately cease all work or services except as may be specifically approved by the City. Provider will be entitled to compensation for all services rendered prior to the effectiveness of the notice of termination and for additional services specifically authorized by the City. The City will be entitled to reimbursement for any expenses that have been paid for but not rendered.

b. Termination for Cause.

In the event Franchisee, or any of its officers, directors, shareholders, employees, agents, subsidiaries, or affiliates is convicted; (i) of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of a contract or subcontract; (ii) under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty which currently, seriously, and directly affects responsibility as a public consultant or contractor; (iii) under state or federal antitrust statutes arising out of the submission of bids or proposals; or (iv) of violation of the conflict of interest provision of this Agreement, or for any

11 other cause the City determines to be so serious and compelling as to affect Franchisee’s responsibility as a public contractor, including but not limited to, disbarment by another governmental agency, then the City reserves the unilateral right to terminate this Agreement upon providing Franchisee with ten (10) days’ written notice of termination, or to impose such other sanctions (which may include financial sanctions, temporary suspensions, or any other condition deemed appropriate short of termination) as it deems proper. In the event that the City terminates the Agreement for cause, Franchisee shall be entitled to the hearing and appeal rights applicable to disciplinary procedures above.

However, termination for cause pursuant to this paragraph shall be effective upon expiration of the ten (10) days’ notification period set forth above.

18. Force Majeure

If any party fails to perform its obligations under the Franchise Agreement because of strikes, lockouts, labor disputes, embargoes, acts of God, inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond the reasonable control of the party obligated to perform, then that party’s performance will be excused for a period equal to the period of such cause for failure to perform.

19. Sufficiency of Insurers and Sureties

Insurance required by the Franchise Agreement will be satisfactory only if issued by companies admitted to do business in California, rated “A” in the most recent edition of Best’s Key Rating Guide, and only if they are of a financial category Class VII or better, unless these requirements are waived by the City Attorney of the City due to unique circumstances. In the event the City Attorney determines that the work or services to be performed under the Franchise Agreement creates an increased or decreased risk of loss to the City, the provider agrees that the minimum limits of any insurance policies and/or performance bond required by the Franchise Agreement may be changed accordingly upon receipt of written notice from the City Attorney.

20. Conflict of Interest

a. No officer or employee of the City may have any financial interest, direct or indirect, in the Franchise Agreement, nor may any officer or employee participate in any decision relating to the Franchise Agreement that effects the officer or employee’s financial interest or the financial interest of any corporation, partnership or association in which the officer or employee is, directly or indirectly interested, in violation of any law, rule or regulation.

b. No person may offer, give, or agree to give any officer or employee or former officer or employee, nor may any officer or employee solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation or any part of a program

12 requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any way pertaining to any program requirement, contract or subcontract, or to any solicitation or proposal.

13 City of Downey
Police Department

Proposal Forms for:

Non - Exclusive Franchise Agreement for Towing and
Storage Services

Proposal for Franchise Agreement for
Towing and Storage Services for
The City of Downey Police Department
Date: __________________, 20______

Franchisee: __________________________________________________________ (Print Name of Business)
Address: __________________________________________________________

City: ________________ State: _____________ Zip Code: ____________

Telephone: _____________________ FAX: _________________________

Contact Name: _____________________________

TO THE CITY OF DOWNEY, CALIFORNIA:

In response to the Request for Proposals (“RFP”) by the City of Downey (“City”), the undersigned person or entity (“Proposer”) now submits this proposal, with the accompanying forms and attachments.

1. In submitting this proposal, Proposer certifies that:

A. Proposer has thoroughly read, examined, and fully understands the following documents:

(1) The RFP’s provisions; and,
(2) All terms, conditions, requirements, specifications, and minimum performance standards.

14 B. Proposer understands and accepts all of the terms and conditions set forth in the documents listed in Section 1(A);

C. Proposer has carefully checked all words, figures and statements made in proposal;

D. Proposer’s documents and information submitted in response to the City’s RFP are complete and accurate;

E. Proposer has fully considered all other matters that may affect, in any way, Proposer’s services or costs;

F. Proposer offers to fully perform all of the duties and obligations specified in the documents in exchange for the consideration described in the documents;

G. Proposer agrees that the City is not liable or responsible for any costs, fees or expenses that Proposer incurs for any one or more of the following:

(1) Responding to this RFP;
(2) Anticipating or preparing for an award of a tow contract; (3) Obtaining any equipment, personnel facilities or other items to comply with the Documents’ provisions; or,
(4) Performing the services under the Contract.

H. Within seven (7) calendar days after City issues the Notice of Intent to Award the Franchise Agreement for Towing and Storage Services, or within any extension that City may allow, Proposer agrees to:

(1) Sign and deliver the Franchise Agreement, along with any required attachments; and,
(2) Furnish all required proofs of insurance.

I. At its expense, Proposer agrees to indemnify, defend and hold harmless the City, its directors, officials, officers, employees, agents, and designated volunteers from and against any and all liability, suits, actions, proceedings, judgments, claims, demands, liens, losses, damages, costs and expenses (including attorneys’ fees, litigation, arbitration, mediation and appeal expenses) if a dispute, lawsuit or other proceeding arises out of any one or more of the following:

(1) Proposer’s submitting the proposal;
(2) City accepting Proposer’s proposal; or,
(3) City awarding a contract to Proposer in compliance with this RFP.

15 PROPOSER’S QUALIFICATIONS STATEMENT

All responses must be typewritten or printed legibly in ink. When additional space is needed to explain an answer, attach sheets as necessary. Failure to (1) complete this form, (2) return i t, or (3) attach a required document may render the Proposal non-responsive.

1. BUSINESS ORGANIZATION / STRUCTURE

1.1 Your firm is a:
□ Corporation □ Sole Proprietorship □ Other:______________ □ Limited Liability Company □ General or Limited Partnership

1.2 If your firm is a corporation, answer the following:

1.2.1 Date of incorporation: ___________________________

1.2.2 State of incorporation: ___________________________

1.2.3 Corporate ID number: ___________________________

1.2.4 President’s name: ______________________________

1.2.5 Vice President’s name: __________________________

1.2.6 Secretary’s name: ______________________________

1.2.7 Treasurer’s name: ______________________________

1.2.8 Agent for Service of Process: ______________________

1.2.9 Agent’s Address: ________________________________

______________________________________________

1.2.10 Is your firm a publicly traded corporation?
□ Yes □ No

1.3 If your firm is a limited liability company, answer the following:

1.3.1 Date of formation: ______________________________

16 1.3.2 State of formation: ______________________________

1.3.3 Secretary of State’s File or ID number: ______________

1.3.4 Chief Executive Officer’s name: ____________________

1.3.5 Name of Manager(s): ____________________________

___________________________________

1.3.6 Agent for Service of Process: ______________________

1.3.7 Agent’s Address: _________________________________

_______________________________________________

1.4 If your firm is a partnership, answer the following:

1.4.1 Date of formation: ______________________

1.4.2 Type of partnership (General, Limited, LLP): ________________

1.4.3 Secretary of State’s Registration or ID number: ______________

1.4.4 List the name of the General Partner(s) and any individual who has any equity interest in the partnership:

________________________________________________

17 1.4.5 List jurisdictions in which your firm’s fictitious name (dba) is filed:
_______________________________________________

_______________________________________________

1.5 If your firm is individually owned (a sole proprietorship), answer the following:

1.5.1 Date your firm started: _________________________

1.5.2 Name of owner: ______________________________

1.5.3 List jurisdictions in which your firm’s fictitious name (dba) is filed:
_______________________________________________

_______________________________________________

2. OWNERSHIP AND NAME CHANGES

2.1 How many years has your firm been in business under its present name?

_______________________________________________________

2.2 In the past five years, has your firm changed names? □ Yes □ No

If yes, list all prior names, addresses and the dates they were used. Explain the reason for each name change:

2.2.1 Prior name: ____________________________________________

2.2.2 Address: ____________________________________________

2.2.3 Reason name changed:
____________________________________________

2.2.4 Starting / ending dates of prior name: __________/___________

2.2.5 Prior name: ____________________________________________

18 2.2.6 Address: ____________________________________________

2.2.7 Reason name changed: ________________________________

2.2.8 Starting / ending dates of prior name: ___________/__________

3. LICENSING

For the following questions, the term “owner” does not include owners of stock in your firm if your firm is a publicly traded corporation.

3.1 Are any of your firm’s licenses held in the name of a corporation or partnership? □ Yes □ No

If Yes, list below the name of the corporation or partnership that actually holds the license:

3.1.1 Corporation or partnership name: ____________________

_____________________________________________________

3.2 List jurisdictions in which your firm is legally qualified to do business, provide license or registration number, and set forth the type of license. Attach additional sheets as necessary.

3.2.1 Jurisdiction: __________________________________________

3.2.2 License or registration number:
__________________________________________

3.2.3 Type of license: __________________________________________

3.2.4 Jurisdiction: __________________________________________

3.2.5 License or registration number:
__________________________________________

3.2.6 Type of license: __________________________________________

3.2.7 Jurisdiction: __________________________________________

3.2.8 License or registration number:
__________________________________________

19 3.2.9 Type of license: __________________________________________

3.3 In the past seven years, has your firm or any of its owners, partners, officers or employees been investigated, cited, assessed any penalties, subjected to disciplinary action by a licensing agency or found to have violated any licensing laws or regulations?
□ Yes □ No

If Yes, identify the licensing agency, type of license, date and reason for the disciplinary action. Attach additional sheets as necessary.

3.3.1 Licensing Agency: _________________________________________

3.3.2 Type of license: _________________________________________

3.3.3 Date of disciplinary action:
_________________________________________

3.3.4 Reason for disciplinary action:
_________________________________________

3.3.5 Licensing Agency: _________________________________________

3.3.6 Type of license: _______________________________________

3.3.7 Date of disciplinary action:
_______________________________________

3.3.8 Reason for disciplinary action:
_______________________________________

3.3.9 Licensing Agency: _______________________________________

3.3.10 Type of license: _______________________________________

3.3.11 Date of disciplinary action:
_______________________________________

3.3.12 Reason for disciplinary action:
_______________________________________

20 4. EXPERIENCE AND PERFORMANCE HISTORY

For the following questions, the term “owner” does not include owners of stock in your firm if your firm is a publicly traded corporation.

4.1 How many years has your firm been in business as a Tow Service? ______

4.2 In the past five years, have any of your firm’s owners, partners, or officers operated a similar towing business?
□ Yes □ No

If Yes, list the business’ name and address and the person who operated the business. Attach additional sheets as necessary.

4.2.1 Tow business name:
_____________________________________________

4.2.2 Address,: _____________________________________________

4.2.3 Name of your firm’s owner, partner or officer who operated other towing business: _____________________________________________

4.2.4 Starting / ending dates of ownership: ____________/___________

4.2.5 Tow business name:
______________________________________________

4.2.6 Address: ______________________________________________

4.2.7 Name of your firm’s owner, partner or officer who operated other towing business: ______________________________________________

4.2.8 Starting / ending dates of ownership: _____________/__________

21 4.3 Does your firm currently dismantle vehicles or have a salvage operation? □ Yes □ No

4.4 Does your firm currently own or operate any other business? □ Yes □ No

If yes, list the business’ name and address and the person who operates the business. Attach additional sheets as necessary.

4.4.1 Business name: _____________________________________________

4.4.2 Address: ______________________________________________

4.4.3 Person’s name who operates business:
______________________________________________

4.4.4 Description of business:
______________________________________________

4.4.5 Business name: ______________________________________________

4.4.6 Address: ______________________________________________

4.4.7 Person’s name who operates business:
_____________________________________________

4.4.8 Description of business:
_____________________________________________

4.5 List the government entities for which your firm has performed towing, storage, lien sale services, whether or not under contract or as an Official Police Tow Service. Provide the name and telephone number of the person within the government entity who is most familiar with your performance of the services (i.e., “Contact Person”). Attach additional sheets as necessary.

4.5.1 Government entity’s name:
____________________________________________

4.5.2 Services that your firm provided:
____________________________________________

4.5.3 Starting / ending dates of services:
____________/________________________________

22 4.5.4 Was your firm:

Selected by a bid or RFP? □ Yes □ No
Under a contract or agreement? □ Yes □ No

4.5.5 Contact Person: ____________________
Phone: _____________

4.5.6 Government entity’s name: _______________________________

4.5.7 Services that your firm provided: _______________________________

4.5.8 Starting / ending dates of services: ____________/_____________

4.5.9 Was your firm:

Selected by a bid or RFP? □ Yes □ No
Under a contract or agreement? □ Yes □ No

4.5.10 Contact Person: ____________________
Phone: ______________

4.5.11 Government entity’s name: _________________________________

4.5.12 Services that your firm provided:
_________________________________

4.5.13 Starting / ending dates of services: ____________/_____________

4.5.14 Was your firm:

Selected by a bid or RFP? □ Yes □ No
Under a contract or agreement? □ Yes □ No

4.5.15 Contact Person: ____________________
Phone: ______________

23 4.6 Describe your firm’s lien-sale experience in terms of knowledge and procedures used in the processing and disposing of vehicles in accordance with California’s laws. Attach additional sheets as necessary.

_____________________________________________________

5. FACILITIES

5.1 List the address where the facilities will be located, and attach photographs depicting each on of the areas and facilities listed in (a) through (f) below.

(a) Up to 3 photos of the: Business office
(b) Up to 3 photos of the: Customer waiting area
(c) Up to 3 photos of the: Secure area for police hold vehicles (d) Up to 3 photos of the: Primary storage lot
(e) Up to 3 photos of the: Secondary storage lot
(f) Up to 3 photos of the: Disposal lot

PRIMARY STORAGE LOT AND BUSINESS OFFICE

ADDRESS

5.1.1 Business office: ________________________________________

5.1.2 Primary vehicle storage lot:
________________________________________

5.1.3 Secure area for police hold vehicles:
________________________________________

24 5.1.4 Secondary vehicle storage lot:
________________________________________

5.1.5 Disposal / salvage vehicle lot:
________________________________________

SECONDARY STORAGE LOT AND BUSINESS OFFICE

ADDRESS

5.1.6 Business office: ________________________________________

5.1.7 Primary vehicle storage lot:
________________________________________

5.1.8 Secure area for police hold vehicles:
________________________________________

5.1.9 Secondary vehicle storage lot:
_______________________________________

5.1.10 Disposal / salvage vehicle lot:
_______________________________________

6. EQUIPMENT

6.1 For each piece of towing equipment below, (1) list the requested information; and, (2) attach a photograph of each tow unit:

Year of
Manufacture Make

FLATBED CARRIER: _____________________ _____________________

_____________________ _____________________

CLASS A TOW: _____________________ _____________________

_____________________ _____________________

25 CLASS B TOW: _____________________ _____________________

_____________________ _____________________

CLASS C TOW: _____________________ _____________________

_____________________ _____________________

CLASS D TOW: _____________________ _____________________

_____________________ _____________________

6.2 Does your firm lease, loan or rent its tow units to any other towing firm? □ Yes □ No

If Yes, identify the person or company to whom your firm leases, loans or rents its tow units and describe the details of your firm’s lease, loan or rental arrangement with the other person or company. Attach additional sheets as necessary.

_______________________________________________________

6.3 If your firm does not have “Heavy Duty” or “Super Heavy Duty” (i.e., Class C or Class D) tow trucks, (1) identify the subcontractors(s) whom your firm will use, (2) attach a photograph of each tow truck, and (3) list the equipment:

6.3.1 Subcontractor’s Name: _____________________________________

6.3.2 Address where tow units are kept:
_____________________________________

26 6.3.3 Contact Person: _________________

Phone: ________________

Year of
Manufacture Make

CLASS C TOW: _____________________ _____________________

_____________________ _____________________

Year of
Manufacture Make

CLASS D TOW: _____________________ _____________________

_____________________ _____________________

6.3.4 Subcontractor’s Name: _________________________________

6.3.5 Address where tow units are kept:
_________________________________

6.3.6 Contact Person: ____________________

Phone: ________________

Year of
Manufacture Make

CLASS C TOW: _____________________ _____________________

_____________________ _____________________

Year of
Manufacture Make

CLASS D TOW: _____________________ _____________________

27 _____________________ _____________________

_____________________ _____________________

7. PERSONNEL

7.1 At present, how many people (whether paid or unpaid) work at your firm?

_______________________________________________________

7.2 Does your firm have an agreement or an arrangement with any other towing firm to loan or share your firm’s employees?
□ Yes □ No

7.3 For each employee whose function is described below, (1) list the requested information, (2) attach the person’s resume and (3) attach a current photo: