01. PH Adopt Reso Approving Franchise Agrmt w-Mr. C’s Towing for Towing & Storage Services

Item No. 1.

TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:OFFICE OF THE CITY MANAGER
BY:SCOTT LOUGHNER, POLICE CHIEF
DATE:FEBRUARY 24, 2026
SUBJECT:PUBLIC HEARING TO CONSIDER A RESOLUTION APPROVING A FRANCHISE AGREEMENT WITH MR. C’S TOWING FOR TOWING AND STORAGE SERVICES

EXECUTIVE SUMMARY

The City Council will consider adopting Resolution No. 26-8337, approving a franchise agreement for towing and storage services with Mr. C’s Towing for a three-year term beginning March 28, 2026 and ending March 27, 2029.

This agreement is necessary to ensure continued towing services as the previous franchise agreement is set to expire on March 27, 2026.

RECOMMENDATION

That the City Council:

Adopt Resolution No. 26-8337, approving a Franchise Agreement for towing and storage services with Mr.

C’s Towing.

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
The City's existing police towing and storage services agreement is set to expire on March 27. 2026. In anticipation of this expiration date, the Police Department initiated a formal Request for Proposals (RFP) on September 9, 2025, to ensure a renewal could be conducted in a timely manner with no service interruptions.

The RFP was posted for the required 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, Titan Transportation, Inc., advised us they no longer had a lease at their current location and could no longer meet the requirements of the agreement. Titan Transportation, Inc., attempted to secure a different viable location within the City or nearby location to store vehicles but were unable to locate one. 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.

In accordance with Downey City Charter Section 1403, a public hearing is being conducted to hear all persons wishing to be heard regarding the granting of the proposed franchise agreement. Notice of the public hearing was published in the Downey Patriot on February 12, 2026, in compliance with legal requirements. All additional procedural requirements set forth in Chapter 12 of the Downey Municipal Code have been satisfied, and a resolution consistent with Section 6972(a) has been prepared for Council consideration.

Based on the results of the RFP process, Mr. C’s Towing’s 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.

CITY COUNCIL PRIORITIES

Quality of Life, Safety & Infrastructure

FISCAL IMPACT

Approval of the recommended actions will result in no cost to the City for towing and storage services under the proposed franchise agreement . There is an established franchise fee of 20% of the tow operator's gross revenues for services provided to the City, which on average is approximately $60,000 annually. Franchise fee revenues are recorded in General Fund revenue account no. 10-3-7533. This fee is established to recover actual and reasonable costs in administering the Towing Service Franchise Program and this Agreement. In addition, Mr. C's shall provide emergency service for City vehicles and store vehicles for evidentiary purposes at no charge to the City.

Attachments
Attachment A: Resolution No. 26-8337 - Approving Franchise Agreement for Towing and Storage Services with Mr.C's Towing Attachment B: Franchise Agreement Between the City of Downey and Mr. C's Towing for Towing and StorageServices Attachment C: RFP Towing and Storage Services 2025

FRANCHISE AGREEMENT

BETWEEN THE CITY OF DOWNEY AND
MR. C’S TOWING FOR TOWING AND STORAGE SERVICES
This Franchise Agreement (“Agreement”), is entered into on MARCH 28, 2026 (“Effective Date”) by and between the CITY OF DOWNEY, a Municipal Corporation and Charter City, hereinafter referred to as “City,” and MR. C’S TOWING, INC., a California corporation, hereinafter referred to as “Franchisee” and collectively referred to herein as the “Parties”.

RECITALS
A. Pursuant to California Vehicle Code section 22660, City has the authority to grant a franchise to a tow truck operator for towing and storage services required for the abatement and removal as public nuisances, of abandoned, wrecked, dismantled, or inoperat ive vehicles or parts thereof from private or public property within the boundaries of City.

B. California Vehicle Code section 12110(b) allows City to require a fee in connection with the award of a franchise for towing vehicles on its behalf provided that the fee does not exceed the amount necessary to reimburse the City for its actual and reasonable costs incurred in connection with the towing program.

C. Chapter 12 of Article VI of the Downey Municipal Code establishes a Towing Service Franchise Program which authorizes the City Council to grant, at its discretion, a nonexclusive franchise to one or more tow truck operators to provide towing and storage services to the City and to charge a franchise fee pursuant to a franchise agreement.

D. For the purpose of insuring the continued protection and preservation of the public health, welfare and convenience of the City, City desires to grant Franchisee a nonexclusive franchise agreement for towing services as defined herein within the City.

E. Franchisee desires to provide such towing services upon the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the promises and of the covenants and conditions hereinafter contained, City and Franchisee mutually agree as follows:

1. INCORPORATION OF RECITALS.

The Recitals set forth above constitute a material part hereof, and are hereby incorporated by reference herein as though fully set forth herein.

2. GRANT OF FRANCHISE.

City hereby grants a Franchise to Franchisee to provide Towing Services, as defined in Section 3.

Franchisee shall have throughout the term of this Agreement the nonexclusive right to engage in the business of providing Towing Services requested by City within the boundaries of City as the same now exist, and within any territory City hereafter annexes, except to the extent that towing services within such territory annexed would be unlawful or violate the legal rights of another person.

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2 3. SCOPE OF TOWING SERVICES.

During the term of this Agreement, Franchisee shall provide the following Towing Services (“Towing Services”) to City:

A. Removing illegally parked vehicles;
B. Towing inoperative vehicles as a result of traffic accident; C. Towing vehicles as a result of mechanical breakdowns; D. Storing or impounding vehicles for investigations, evidence, or violation of the law or for any other lawful purpose;
E. Remove vehicle debris from accident scene;
F. Cover oil and vehicle fluids with sand at accident scenes.

G. Change vehicle tires;
H. Maintaining tow records of stored and impounded vehicles; I. Provide secured storage lot for stored and impounded vehicles; J. Provide service to start drained car battery or other vehicle malfunctions; K. Unlock vehicles.

L. Periodically provide the deployment of trucks for special events such as sobriety check points, street fairs and parades.

4. EFFECTIVE DATE OF AGREEMENT.

The term of this Agreement shall commence on March 28, 2026, and terminate on March 27, 2029, unless sooner terminated pursuant to the terms of this Agreement.

5. NONEXCLUSIVE FRANCHISE.

Franchisee shall have the nonexclusive right to receive calls from the City subject to the terms and conditions of this Agreement, to provide Towing Services for vehicles which are involved in accidents, disabled, abandoned, impounded for evidence, impeding the flow of traffic or otherwise subject to being non-consensually towed and stored at the direction of the City. If the enters into more than one nonexclusive franchise agreement with a franchisee, Franchisee understands that Towing Services shall be provided by franchisees on a rotating basis as determined by the Chief of Police or his/her designee.

6. BASIS FOR ACCEPTANCE OF SERVICE.

The Chief of Police, or his/her designee, has the final authority to determine disputes as to the ability or authority of Franchisee to perform Tow Services for the City. If it is determined that Towing Services are not needed and are canceled by City, acting by and through the Downey Police Department, up to, and including arrival at the scene, there shall be no charges assessed to City by Franchisee for the request.

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3 7. LOCATION OF TOWING AND STORAGE YARD FACILITIES AND BUSINESS OFFICE.

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 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.

8. COMPLIANCE WITH LAWS.

Franchisee must at all times throughout the term of this Agreement, comply with the terms of this Agreement, all state and federal laws, and all current and subsequently enacted towing ordinances, rules or regulations enacted by City that are applicable to Franchisee.

9. BUSINESS LICENSE.

Franchisee shall possess a valid City Business License prior to providing Towing Services under this Agreement.

10. RESPONSE TIME.

During the term of this Agreement, Franchisee shall arrive at the site at which the vehicle to be towed is located within twenty (20) minutes of a verbal request for service by a member of the Downey Police Department, or other authorized City personnel. Franchisee shall be available for requests for service by the Downey Police Department or other authorized City personnel, 24 hours per day, 7 days per week, 365 days per year, including holidays and weekends. No exceptions.

The Franchisee 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. 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.

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4 11. STAFFING.

Franchisee shall maintain at least two (2) qualified tow truck drivers to respond to requests for service by the Downey Police Department or other authorized personnel at all times.

12. PERSONNEL TRAINING - QUALIFICATIONS.

Franchisee’s tow truck drivers must be sufficiently trained to ensure the safe and proper discharge of the responsibilities set forth in this Agreement. To ensure the proper qualifications of Franchisee’s tow truck drivers, Franchisee agrees to the following terms:

A. Driver Information. Franchisee shall provide the name, date of birth, current photo and valid California driver’s license number of all drivers employed by Franchisee in writing to the Downey Police Department Field Operations Captain. Franchisee shall notify the Downey Police Department Field Operations Captain, or his/her designee, in writing of any new drivers or any change in employment status of a current driver within five (5) days of their date of hire or change in employment status.

B. Pull Notice Program. Franchisee shall participate in the Employer Pull Notice Program through the Department of Motor Vehicles. Franchisee shall notify the Downey Police Department Field Operations Captain, or his/her designee of any Pull Notices received for any of Franchisee’s current drivers.

C. Tow Truck Driver Qualifications/Requirements:
(1) Tow truck drivers employed by Franchisee shall be at least 18 years old, possess the required class driver’s license to operate a tow vehicle.

Franchisee must have drivers available to operate any and all tow vehicles specified in this Agreement. All drivers must be sufficiently capable and trained to ensure safe and proper discharge of their Towing Services in a safe and courteous manner.
(2) All tow truck drivers shall comply with the requirements set forth in California Vehicle Code Sections’ 27700 and 24605. All tow truck drivers shall meet all requirements specified in Sections 2430.5 and 12520 of the California Vehicle Code.
(3) During the term of this Agreement, Franchisee and/or tow truck drivers shall provide the Downey Police Department Field Operations Captain, or his/her designee, with information in writing concerning any driving citations received by the tow truck driver(s) in the immediate prior three (3) years and all information regarding any criminal convictions. (4) Franchisee’s tow truck drivers shall present a neat, clean and professional appearance. Tow truck drivers shall wear uniform type pants (or shorts during warm weather) and shirts that identify the tow service company and their name (first or last).
(5) The Chief of Police, or his/her designee, in his or her sole discretion, may require that Franchisee’s tow truck drivers:

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5 (a) Be fingerprinted;
(b) Undergo background checks by the California Department of Motor Vehicles and any other agency deemed appropriate to determine the safety practices of the tow truck drivers;
(6) Franchisee shall not utilize a tow truck driver to render services pursuant to this Agreement if any of the following conditions exist:
(a) A tow truck driver who is subject to epilepsy, fainting or loss of consciousness by reason of chronic medical condition;
(b) A tow truck driver whose driving record indicates five (5) violations of traffic laws involving moving vehicles within two (2) years preceding the date of the effective date of this Agreement; (c) A tow truck driver who has furnished false information in any document submitted to City in connection with this Agreement or who has omitted to furnish all information requested by City in connection with this Agreement;
(d) A tow truck driver who has been convicted of driving while under the influence of intoxicating liquor or narcotic drugs, or both, within three (3) years of the effective date of this Agreement; or (e) A tow truck driver who has been convicted of a felony, any crime involving moral turpitude, or any crime(s) specified in this Agreement within two (2) years preceding the effective date of this Agreement.
(7) Notwithstanding compliance with the foregoing provisions, the City may prohibit certain tow truck drivers from providing Towing Services to the City or the Downey Police Department in its sole discretion. Such directives shall be made by the Chief of Police, or his/her designee, in writing to Franchisee.

13. COMMUNICATIONS.

Franchisee shall install and maintain radio transmission and reception equipment allowing for two- way communication with each authorized tow vehicle.

14. BUSINESS HOURS - AVAILABILITY BY TELEPHONE.

There shall be a Franchisee employee or agent available in person during normal business hours at Franchisee’s office to handle requests for service and release of impounded/stored vehicles.

Normal business hours shall be Monday to Friday, inclusive, from 7:00 a.m. to 5:30 p.m., inclusive, except state holidays. Franchisee shall have an attendant on duty after hours to accommodate the release of vehicles after normal business hours.

15. IMPOUNDED VEHICLES.

A tow truck driver shall give to the driver or owner of a vehicle to be stored, impounded or towed away, a business card, and a receipt with the Franchisee’s name, address and phone number. The Docusign Envelope ID: B4AE1719-D1EF-4459-8C22-424997A6BB8E

6 Franchisee’s information shall be provided to the Downey Police Department in the event that the driver is unavailable or incapacitated.

A vehicle impounded pursuant to the authority granted by local, state or federal law will be documented by Downey Police Department personnel. Franchisee shall obtain authorization from the Downey Police Department before any vehicle ordered towed, stored or impounded by the Downey Police Department can be released by Franchisee.

16. RELEASE OF VEHICLE AFTER STORAGE / IMPOUND.

Franchisee shall require proper identification and a Downey Police Department authorized release form from any person requesting release of a stored or impounded vehicle. If the person requesting the release of a vehicle does not proper identification and a Downey Police Department authorized release form, Franchisee shall not release the vehicle, but instead refer the person to the Downey Police Department for further processing. The final decision for release of a vehicle shall come from the on-duty Watch Commander, or his/her designee. Franchisee shall adhere to the decision of the on-duty Watch Commander or his/her designee.

Franchisee further agrees that it will release any stored or impounded vehicle to the person presenting proper identification and a Downey Police Department authorized release form within, at a minimum, 45 minutes of presentation by a person of this documentation or upon receiving written instructions to release a vehicle by the Downey Police Department Watch Commander, or his/her designee. Franchisee further agrees that all storage or impound fees cease to accrue immediately upon presentation of such documentation, regardless of the ultimate time of release of the stored or impounded vehicle.

17. RELEASE OF PERSONAL PROPERTY.

No personal property shall be removed from the stored or impounded vehicle without prior written authorization from the Watch Commander. For purposes of this Agreement “personal property” means items in the stored or impounded vehicle that are not affixed to the vehicle.

18. FRANCHISEE VEHICLE STORAGE YARD FACILITY STANDARDS.

During the term of this Agreement, Franchisee shall, at a minimum, comply with the following requirements and standards with respect to its vehicle storage yard facilities:

A. Storage Facility Requirements: Franchisee shall provide adequate security measures for the protection of vehicles and property at all storage yard facilities.

The Downey Police Department Field Operations Captain, or his/her designee, shall determine the adequacy of Franchisee’s security measures and may grant additional consideration for state-of-the -art security measures, including, but not limited to, security cameras and motion sensors. At a minimum, all storage facilities shall comply with the following requirements:
(1) All vehicles stored or impounded by Franchisee at the direction of the Downey Police Department or other authorized City personnel must be stored in storage yard facilities that are enclosed by a substantial wire fence or wall enclosures. The storage yard facilities must have locks for all gates, doors, or other means of access. Such fence or wall enclosures shall be not less than six (6) feet in height and shall be provided with not less than one gate, door, or other means of access of adequate width and height. The Docusign Envelope ID: B4AE1719-D1EF-4459-8C22-424997A6BB8E

7 bottom edge of the fence or wall enclosure structure shall not be more than two (2) inches above the finished parking surface of the enclosed area.

The top edge of the fence or wall enclosure, including all gates, doors, or other means of access shall be equipped with not less than two (2) barbed wires installed in such manner as to discourage access over the top of the fence or wall enclosure. In cases where wire mesh is attached to the roof, barbed wire will not be required. Wire mesh installation erected inside of building need not be provided with barbed wire.

All fence or wall enclosures shall be maintained and repaired throughout the term of this Agreement. Any damage to such fence or wall enclosures shall be repaired within twenty-four (24) hours to ensure proper protection for the stored or impounded vehicles.

All storage yard facility structures, including walls or fences, shall meet the requirements of the City of Downey Municipal Code, and shall be approved by the Downey Police Department Field Operations Captain, or his/her designee.
(2) The storage yard facilities shall have capacity to store a minimum of 100 vehicles.
(3) The security measures provided for the storage yard facility shall be adequate to preclude theft, vandalism or damage by activity while in Franchisee’s lot. The storage yard facility and lot shall be configured in such a way that no vehicles shall be left parked or stored on the public streets at any time.

B. During the term of this Agreement, all storage yard facilities must be available for inspection upon request by the Downey Police Department.

C. All necessary vehicle storage yard facilities needed to meet the minimum requirements of this section shall be the sole responsibility of Franchisee. All necessary approvals for such storage yard facilities shall comply with the applicable provisions of the Downey Municipal Code, and/or the appropriate State or County codes. Compliance with this subsection shall not be deemed to create any duty by the City to award a permit to Franchisee.

D. The Downey Police Department may inspect Franchisee’s storage yard facilities used under this Agreement at any time during normal business hours. Franchisee must have equipment for and have personnel proficient in unlocking locked vehicles when requested by the Downey Police Department.

E. Throughout the term of this Agreement, Franchisee shall maintain in good condition the real property and improvements thereon, of the storage yard facilities used in the performance of the service required by this Agreement.

19. INDOOR STORAGE FACILITIES.

Franchisee shall provide indoor storage facilities or sheltering cover for a minimum of twenty-five (25) vehicles sufficient to protect vehicles from the elements (i.e., wind, heat, dust, adverse weather Docusign Envelope ID: B4AE1719-D1EF-4459-8C22-424997A6BB8E

8 and other forms of contamination). The Downey Police Department Field Operations Captain, or his/her designee, shall determine the adequacy of the indoor storage facilities or sheltering cover.

The Downey Police Department may inspect Franchisee’s indoor storage facilities used under this Agreement at any time during normal business hours. Franchisee must have equipment for and have personnel proficient in unlocking locked vehicles when requested by the Downey Police Department.

The Franchisee shall take all precautions required by the Downey Police Department to avoid any damage to any evidence, such as fingerprints or stains. Vehicles taken into custody that involve evidence shall be stored in an area protected against entry by unauthorized persons.

20. EQUIPMENT STANDARDS.

During the term of this Agreement, Franchisee shall comply with the following equipment standards:

A. At its sole expense, Franchisee shall secure the following vehicles that conform to the California Highway Patrol’s Classification (CHP Class) for the gross vehicle weight ratings GVWR) of a truck chassis1.
(1) A minimum of one (1) flatbed car carriers (Class A or Class B); plus (2) A minimum of three (3) light-medium duty tow trucks, consisting of:
(a) At least two (2) light duty (Class A); plus
(b) At least one (1) medium duty (Class B); plus
(3) Preferably, at least one (1):
(a) Heavy duty (Class C); or
(b) Super heavy duty (Class D); plus
(4) Preferably, at least one (1) tow truck that is equipped to lift and carry a disabled person in a wheel chair.
(5) All trucks must have two-way radio communication equipment.

B. Franchisee further agrees that all Franchisee’s tow vehicles shall have basic equipment for the towing of vehicles. Basic equipment shall include:
• Fire Extinguisher
• Broom
• Shovel
• Reflective Triangles
• Flares
• Trash Can(s) with Absorbent Material
• Office, to Truck Radio System

1 GVWR Range (lbs.) CHP Class
10,000 - 19,500 A
19,501- 33,000 B
33,001 – 49,999 C
50,000 or more D
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9 • Winch
C. Motorcycles that are stored, impounded, or towed at the direction of the Downey Police Department or other authorized City personnel shall be towed by a trailer that is designed to carry motorcycles or by a flatbed truck in an upright position.

D. Any and all equipment used and maintained by Franchisee must be made available for inspection by the Downey Police Department upon request. The Downey Police Department may conduct random vehicle and equipment inspections to ensure compliance with this Agreement.

E. All equipment and vehicles to be used during the term of this Agreement shall be inspected by the California Highway Patrol at least one time per year. All vehicles and equipment shall display a current inspection sticker (or satisfactory proof thereof) issued by the California Highway Patrol prior to its use pursuant to this Agreement.

F. Throughout the term of this Agreement, Franchisee shall maintain in good condition all vehicles, facilities, equipment and material used in the performance of the service required by this Agreement.

21. DUTIES AT THE SCENE.

After being requested to respond to the scene by the Downey Police Department or other authorized City personnel, Franchisee operator shall:

A. Neither move the vehicle nor attach to any vehicle until instructed to do so by a member of the Downey Police Department.

B. Shall clean up and remove any and all debris from the accident scene as required by the Downey Police Department and the California Vehicle Code.

C. Provide towed vehicle owners, when present at the scene, with a business card or other information, indicating the name of the Franchisee and address where the vehicle will be stored, the telephone number and hours of operation.

22. RECORDS AND REPORTING.

Franchisee shall maintain records relating to vehicles towed, stored or impounded for a period not to exceed five (5) years. Each month, Franchisee shall furnish to the Chief of Police or his/her designee in writing as well as via email, a report of all vehicles that have been towed by Franchisee under the terms of this Agreement for the previous calendar month. Such report shall indicate the storage location of each vehicle, and shall include the vehicle make, license number and vehicle identification number. Such report shall also indicate whether a vehicle has been stored for thirty (30) days or for a longer period. The report shall also list the number of vehicles towed, stored, or impounded at the request of City that have been sold through lien sale. The written report required under this Section shall be due no later than ten (10) days after the end of the previous calendar month. Franchisee owner must also notify the California Highway Patrol (CHP) as required by Section 10652 of the California Vehicle Code.

23. INSPECTION OF RECORDS, FACILITIES, EQUIPMENT AND DRIVERS.

All records required to be kept by Franchisee owner shall be available for inspection by representatives of the Downey Police Department and the California Highway Patrol. In addition, Docusign Envelope ID: B4AE1719-D1EF-4459-8C22-424997A6BB8E

10 Franchisee shall submit to, at any reasonable time, an inspection of all drivers, vehicles, equipment and storage yard facilities by the Downey Police Department. Franchisee shall provide California Highway Patrol inspection certifications for each of its towing vehicles to the Downey Police Department. If Franchisee cannot produce an annual California Highway Patrol certification, the Downey Police Department reserves the right to require that all towing vehicles be inspected by an automotive professional certified by the State of California Bureau of Automotive Repair, selected by the Downey Police Department. All vehicle inspection fees shall be borne solely by Franchisee and shall be due and payable upon presentation of the vehicles for inspection. Any tow vehicle that fails an inspection shall not be used to provide Towing Service in the City until it is repaired and passes re-inspection. All tow vehicles shall be operated and maintained in compliance with all applicable state and federal laws and regulations.

24. TOWING RATES & 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 Fee Schedule for Public Tows. Franchisee’s rates may be reviewed annually on June 1st to confirm that they match the CHP Fee Schedule for Public Tows. Franchisee must notify the Chief of Police or his/her designee in writing of any tow rate and storage fee increases to match the CHP 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 Docusign Envelope ID: B4AE1719-D1EF-4459-8C22-424997A6BB8E

11 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., inclusive, except state holidays.

However, when in the opinion of the Chief of Police or his/her designee, unusual circumstances warrant the release of an impounded vehicle or vehicles outside of the normal business hours, the Franchisee shall provide personnel at a call station where they may be contacted for such emergency release or releases during such hours. Such after-hour releases shall be charged at 50 percent (50%) of the current tow rate for release pursuant to California Vehicle Code section 22658(n)(2)(B).

G. Towing of City Vehicles. Franchisee further agrees to tow and store, for a period not exceeding five days, all City vehicles free of charge. Moreover, Franchisee agrees not to charge for the changing of flat tires, service to start drained car battery or other vehicle malfunctions and lockout service on City vehicles.

25. FRANCHISE FEES.

In order City to recover its actual 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 provided, 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.”
B. The Franchise Fees shall be paid by Franchisee on at a quarterly basis to the City of Downey Finance Department on January 15th, April 15th, July 15th and October 15th. If Franchisee chooses to pay Franchise Fees other than on the described quarterly basis, the proposed payment schedule must be approved by the Field Operations Captain or by his/her designee.

C. The report mentioned in Section 22 shall accompany the quarterly Franchise Fee payments from Franchisee.

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12 D. The Franchise Fee may be adjusted annually by City Council resolution starting March 28, 2027, to reflect the City and the Downey Police Department’s current costs for operating the Towing Service Franchise Program. Any such adjustment shall be applicable to Franchisee upon ten (10) days written notice of the adoption of such resolution.

E. The City retains the right to impose alternative forms of fees, to the extent permitted by law, in the event that the fees provided for in the towing services agreements are no longer assessable due to a subsequent change in federal, state or local law.

26. AUDITS.

A. Franchisee must make available to the Downey Police Department, the City or their designated representative(s), upon three (3) day’s written notice, its accounting records and books for inspection and audit. The Downey Police Department, the City or City’s designated representative(s) agree to maintain the confidentiality of such accounting records and books. Franchisee shall submit quarterly documentation detailing its operations on behalf of the City in both written and electronic formats that are acceptable to the Downey Police Department. Such documentation shall include the following information: the date, time, location, case number (if any), vehicle description (including make, model and vehicle license number) and a brief description of the circumstances surrounding the tow (traffic collision, Department impound etc.).

B. Franchisee shall maintain these records for a period of five (5) years. Such records shall be available at all times during regular business hours and shall be subject to audit by the City of Downey or an outside auditing firm contracting with the City.

Failure to make available for audit all gross receipts within two business days shall constitute cause for termination of this Agreement by the City.

C. If the results of any audit show a Franchise Fee underpayment of greater than five (5) percent, Franchisee will pay a penalty of the amount of the underpayment plus 50 percent of the underpayment to the City within 15 days of issuance of the audit results. Any underpayment and any resulting penalty shall accrue interest at the rate of ten percent per annum, compounded daily from the date the underpayment should have initially been paid to the City.

D. In the event the results of any audit are disputed by Franchisee or City, the City may, at its sole discretion, elect to a resolve the dispute by submitting the matter to independent auditors for review. The City and Franchisee shall each select an independent auditor at their own cost. The two auditors shall agree upon the results of the audit and submit their recommendations to the City and Franchisee. If the two independent auditors cannot agree upon the results of the audit, a third auditor will be selected by the two independent auditors to make a final determination. The cost of the third auditor shall be borne equally by both City and Franchisee. The determination of the third independent auditor shall be final.

E. By accepting and signing this Agreement, Franchisee irrevocably waives the defenses of any statute of limitation, laches, waiver or other equitable doctrine of Docusign Envelope ID: B4AE1719-D1EF-4459-8C22-424997A6BB8E

13 similar import or effect in any action brought by the City to recover any fees, interest or penalties due under this Agreement.

F. By accepting and signing this Agreement, Franchisee agrees that if it challenges the right of the City to collect the Franchise Fees set forth in this Agreement, any relief requested by Franchisee and awarded to it by virtue of such challenge shall be prospective only from and after the date of the filing of the initial pleading seeking such relief in a court of competent jurisdiction. Franchisee hereby waives any and all claims or rights to collect back from the City, or obtain credit against future payment obligations, any amounts collected by the City prior to the filing of the initial pleading seeking such relief. In the event Franchisee’s challenge to any Franchise Fee payments should result in an initial judgment in its favor, Franchisee shall continue to make all Franchise Fee payments in accordance with this Agreement pending an appeal by the City. In the event the court of appeal, or trial court if the City elects not to appeal, determines that the City is not entitled to collect any or all of the Franchise Fees, the City shall refund to Franchisee those portions of the Franchise Fee which the court deems the City was not entitled to collect which were made subsequent to the filing of the initial action by Franchisee, exclusive of interest on such amount.

27. ACCEPTANCE OF PAYMENT.

The Franchisee shall accept payment by a valid bank credit card or cash for towing and storage charges. The Franchisee shall have sufficient funds on the premises to accommodate and make change in a reasonable monetary transaction. Franchisee shall accept payment from the registered owner, legal owner or the agent claiming the vehicle in accordance with California Vehicle Code section 22651.1.

28. SIGNS AND ADVERTISING.

Franchisee’s office must have a sign posted including the company name, address, phone number and hours of operation, clearly visible from the roadway. Franchisee shall not display any signs or advertising material which indicates that his/her business is an official towing service or police storage facility of the City of Downey or the Downey Police Department.

29. INDEMNITY, DUTY TO HOLD HARMLESS AND DUTY TO DEFEND.

A. Duty to Indemnify/Hold Harmless
To the fullest extent permitted by law, Franchisee agrees to indemnify, defend, protect, hold harmless, and assume all liability of the City, its elected officials, officers, employees, agents and volunteers (collectively “Indemnified Parties”) from and against all claims (including, without limitation, claims for bodily injury, death, damage to property or workers’ compensation benefits), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney’s fees, disbursements and costs, and all other professional, expert or consultant’s fees) of every kind and nature whatsoever (individually, a “claim”; collectively, “claims”), whether under state or federal law, which may arise from or are in any manner related to this Agreement, regardless of any active or passive negligence or strict liability of the Indemnified Parties, and further agrees to indemnify the Docusign Envelope ID: B4AE1719-D1EF-4459-8C22-424997A6BB8E

14 Indemnified Parties, regardless of whether the Claim or Claims is/are asserted by an elected official, officer, employee, agent or volunteer of the City.

Franchisee understands and acknowledges that the indemnification obligation hereunder, includes, but is not limited to, a “Type I” indemnity under California law and extends to and includes all claims arising from the active or passive negligence of the Indemnified Parties.

Franchisee further understands and acknowledges that the indemnification obligation hereunder extends to workers’ compensation claims made by any elected officials, officers, employees, agents or volunteers of the City which may arise from or are in any manner related to the provision of towing services by Franchisee pursuant to this Agreement.

B. Duty to Defend
The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend exists regardless of any ultimate liability of the Indemnified Parties. Such defense obligation, which shall be managed by Franchisee, shall arise immediately upon presentation of a Claim by any party and written notice of such Claim being provided to Franchisee. Payment to Franchisee by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party’s rights to indemnification hereunder. Franchisee’s duties to indemnify, defend and hold harmless pursuant to this Agreement shall survive the either the expiration or earlier termination of this Agreement until such time as any legal action against the Indemnified Parties for any such matters indemnified hereunder are fully and finally barred by all applicable statutes of limitation or statutes of repose. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Franchisee’s duties to indemnify, defend or hold harmless pursuant to this Agreement.

30. LIABILITY INSURANCE.

A. Franchisee shall, at its own cost and expense, maintain policies of insurance affording protection against third party bodily injury liability and property damage liability occasioned by reason of the provision towing services, impoundment and storage of vehicles. The minimum insurance established for the following categories are:
(1) General Liability Insurance — Franchisee agrees to maintain a comprehensive general liability insurance policy with a combined single limit for bodily injury and property damage of not less than Two Million Dollars ($2,000,000.00).
(2) Commercial Business Automobile Liability (as required by Section 16500.5 California Vehicle Code) - Bodily injury and property damage with a combined single limit of not less than Three Two Million Dollars ($2,000,000.00). The policy shall also include owner, non-owner, and hired auto coverage.
(3) Uninsured Motorist — Legal minimum, combined single limits.

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15 (4) Garage Liability — Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than Five Hundred Thousand Dollars ($500,000.00).
(5) Garage Keeper’s legal liability insurance coverage with limits of not less than Six Hundred Thousand Dollars ($600,000.00) for loss or injury to or destruction of any stored vehicles as a result of Fire, Theft, Explosion, Riot and Civil Commotion or Vandalism and Malicious Mischief.

B. Franchisee shall obtain and maintain at all times in full force and effect during the term of this Agreement all insurance policies and coverage listed above, which shall not’ be canceled prior to the termination of this Agreement. The insurance provided under this Section shall include an endorsement page(s) naming “the City of Downey, its elected and appointed officials, officers, employees, agents, and volunteers as additional insured. Franchisee agrees to deliver a copy of all insurance policies, endorsements, and certificates to the Downey Police Department, which are subject to the approval of the City Attorney as to form, prior to the commencement of the Towing Services.

C. Franchisee agrees that its insurance shall be primary insurance with respect to any claims, losses, or liability arising from the provision of towing services by Franchisee pursuant to this Agreement, and that the insurance carried by the City of Downey shall be excess and not contributory with the insurance provided by Franchisee. Franchisee further agrees to provide an endorsement to its insurance policies with such language.

D. Franchisee agrees to notify City in writing at least thirty (30) days prior to any cancellation or reduction in coverage in Franchisee’s insurance coverage for any insurance providing coverage for the services relating to this Agreement.

Franchisee further agrees that it will provide the City with prompt and timely notice of any claim made or suit instituted arising from or any way related to the provision of towing services pursuant to this Agreement. Defense coverage must be in addition to policy limits. If umbrella coverage is used, it must include drop down coverage if underlying coverage does not apply, and the umbrella policy must have the same starting and ending date as the primary policy.

E. Franchisee shall have the sole right to select its insurance carrier(s), provided such carrier lawfully transacts business in the State of California. However, all insurance required by this Agreement must be issued by companies admitted to do business in California, with an A.M. Best’s rating of A: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 this Agreement creates an increased or decreased risk of loss to the City, Franchisee agrees that the minimum limits of any insurance policies and/or performance bond required by this Agreement may be changed accordingly upon receipt of written notice from the City Attorney; provided that Franchisee will have the right to appeal a determination of increased coverage by the City Attorney to the City Council of the City within ten (10) days of receipt of notice from the City Attorney.

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16 F. Franchisee shall not perform any services pursuant to this Agreement unless and until all insurance policies and coverage set forth herein are obtained and copies of said policies, endorsements and certificates are provided to the City in accordance with the provisions specified above.

31. WORKERS COMPENSATION INSURANCE.

Franchisee’s employees shall be covered by Worker’s Compensation Insurance in an amount and form to meet all applicable requirements of the Labor Code of the State of California, and any other insurance requirements that may be required under federal, state, and/or local law.

32. ASSIGNMENT.

Franchisee shall not sell, transfer, lease, assign, sublet, mortgage or dispose of in whole or in part, either by forced or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, or any rights or privileges herein granted, without the prior written consent of the City Council. For purposes of this Section, an acquisition by any person, group, partnership or other entity of at least 10% of the Franchisee shall be considered a sale, transfer or assignment. The approval of a transfer or assignment of this Agreement shall be conditioned upon Franchisee’s sale or disposal of all ownership rights in Franchisee’s tow truck business. If Franchisee desires to transfer or assign its rights in the tow truck business, because he or she intends to sell or dispose of all interests in the tow truck business that is authorized to perform towing services on behalf of City, Franchisee shall make a written request to the Chief of Police for a transfer or assignment of the Agreement. The written request, along with a deposit fee of one thousand dollars ($1,000.00) to cover the City’s reasonable investigation costs, and review of the proposed sale agreement or other document evidencing disposal of the tow truck business shall be submitted to the Downey Police Department at least one hundred twenty (120) calendar days before the requested effective transfer or assignment date. The City shall investigate the proposed transferee or assignee and determine whether the transferee or assignee is qualified to serve as a tow truck operator pursuant to the criteria and requirements set forth in this Agreement and under local and State law. If the Downey Police Department determines that the proposed transferee or assignee is qualified to be a tow truck operator, it will recommend that the City Council approve the transfer or assignment. Such decision shall be in the sole and absolute discretion of the City Council. Upon completion of the investigation process, the City shall provide Franchisee with an accounting of the total amount of administrative and legal costs associated with the City’s review of Franchisee’s request for a transfer or assignment of the Agreement, and refund of a portion of the initial $1,000 deposit or request additional funds as appropriate. Any attempt to sell, transfer, lease, assign or otherwise dispose of the Agreement without the prior written consent of the City Council shall be null and void.

33. RISK OF DAMAGE.

Franchisee assumes all risk in the event of damage, theft, fire of the vehicles or any property towed and stored by Franchisee, its employees or agents. Any and all claims, demands or liability arising out of or encountered in connection with this Agreement shall be borne by Franchisee.

34. OFFICIAL POLICE TOW SERVICE/ DOWNEY POLICE DEPARTMENT COMMUNICATIONS.

The Field Operations Captain, or his/her designee, shall conduct meetings to discuss issues of concern with respect to performance by Franchisee under the Agreement. These meetings shall be Docusign Envelope ID: B4AE1719-D1EF-4459-8C22-424997A6BB8E

17 mandatory for the operator, or his/her designee. The Downey Police Department shall give the operator five (5) days advance written notice of these meetings.

35. DISCIPLINARY PROCEDURES.

A. Compliance with Agreement
Franchisee agrees that failure to comply with the terms and conditions of this Agreement shall be cause for either a WRITTEN WARNING, SUSPENSION OR TERMINATION OF THE AGREEMENT, as set forth in this Section.

The Downey Police Department will investigate alleged violations of this Agreement and/or violations of Federal, State or local laws in the provision of Towing Services pursuant to this Agreement. Franchisee will be notified of the findings in writing within thirty (30) days of completion of the investigation.

Franchisee acknowledges that it shall be subject, and consents, to integrity checks to ensure that it is complying with the terms of this Agreement, and that its employees are performing their duties in a manner suitable for provision of Towing Services to City residents and members of the public. The Franchisee shall be notified of the results in writing within 14 days of such an “integrity check.” Franchisee will be billed for the actual costs incurred for such an event(s) in its entirety up to a maximum of $1,000 per occasion. Franchisee agrees to pay for up to two such “integrity checks” annually.

B. Disciplinary Action
The Field Operations Captain shall use the following guidelines for action against Franchisee if Franchise is found in violation of this Agreement. This is only a guide, with the Field Operations Captain having discretion for serious violations of the Agreement, such as criminal offenses.
1st Violation within 12 consecutive months

WRITTEN WARNING
2nd Violation within 12 consecutive months

WRITTEN WARNING
3rd Violation within 12 consecutive months
30 day SUSPENSION
4th Violation within 12 consecutive months
60 day SUSPENSION
There shall be no appeal process for written warnings issued to Franchisee by the Downey Police Department. However, in the event the Downey Police Department serves Franchisee with a notice of suspension, Franchisee may request a hearing within seven (7) calendar days by submitting a request in writing to the Chief of Police. The hearing shall be held as soon as practicable. The hearing shall be conducted by the Chief of Police, or his/her designee. Franchisee shall be entitled to present all relevant information, evidence and circumstances in support of its position. Franchisee shall be notified in writing of the Chief of Police, or his/her designee’s, final decision concerning the suspension within seven (7) calendar days of the date of the hearing.

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18 Franchisee may appeal the Chief of Police’s or the Chiefs designee’s decision concerning a suspension for a hearing de novo before the City Manager, or his/her designee. Franchisee must serve a written notice of appeal on the City pursuant to the notice provisions set forth herein within ten (10) calendar days of the date upon which the Chief of Police, or his/her designee’s, decision becomes effective.

Franchisee’s notice of appeal must set forth the grounds for its appeal in clear and concise language, which shall include a summary of the claimed factual or decisional error. If Franchisee fails to request a hearing or appeal within the specified deadlines, or fails to appear at a scheduled hearing or appeal, the action taken by the Chief of Police, or his/her designee, shall be final and the suspension shall take effect upon written notification to Franchisee by the Chief of Police.

The City Manager, or his/her designee, shall conduct the hearing on the administrative appeal. The hearing shall be held as soon as practicable, but in no event later than thirty (30) days from the notice of appeal therefore unless both Parties agree in writing to an extension of time for the hearing. The City Manager, or his/her designee’s, decision on an issue shall be deemed final.

A suspension generally shall not take effect until the hearing and administrative appeal processes have been exhausted. However, the Chief of Police, or his/her designee, shall have the authority to suspend the Agreement effective immediately if, in the sole and absolute discretion of the Chief of Police, or his/her designee, the conduct by Franchisee or its agents is deemed to constitute a danger to the public health, safety or welfare or constitutes a gross violation of the terms and conditions of this Agreement.

C. Citizen Complaints
The Downey Police Department shall be authorized to receive written complaints from citizens regarding Franchisee, and/or Franchisee’s principals, officers, employees and agents pertaining to alleged violations of this Agreement and/or Federal, State or local laws. Any such complaint may be investigated by the Downey Police Department and may form the basis for disciplinary action as set forth in this Section or termination of this Agreement.

36. TERMINATION OF AGREEMENT.

A. Termination without Cause.

Either party may terminate this Agreement at any time, without cause, upon providing 30 days’ written notice to the other party. Upon receipt of the notice of termination from the City, Franchisee must immediately cease all work or services except as may be specifically approved by the City. Franchisee will be entitled to compensation for all services rendered prior to 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.

19 to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of a contract or subcontract; (ii) under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty which currently, seriously, and directly affects responsibility as a public consultant or contractor; (iii) under state or federal antitrust statutes arising out of the submission of bids or proposals; or (iv) of violation of the conflict of interest provision of this Agreement, or for any other cause the City determines to be so serious and compelling as to affect Franchisee’s responsibility as a public contractor, including but not limited to, disbarment by another governmental agency, then the City reserves the unilateral right to terminate this Agreement upon providing Franchisee with ten (10) days’ written notice of termination, or to impose such other sanctions (which may include financial sanctions, temporary suspensions, or any other condition deemed appropriate short of termination) as it deems proper. In the event that the City terminates the Agreement for cause, Franchisee shall be entitled to the hearing and appeal rights applicable to disciplinary procedures above. However, termination for cause pursuant to this paragraph shall be effective upon expiration of the ten (10) days’ notification period set forth above.

37. FORCE MAJEURE.

If any party fails to perform its obligations 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.

38. CONFLICT OF INTEREST.

A. No officer or employee of the City may have any financial interest, direct or indirect, in this Agreement, nor may any officer or employee participate in any decision relating to the Agreement that effects the officer or employee’s financial interest or the financial interest 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 of the City, nor may any officer or employee of the City solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation or any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any way pertaining to any program requirement, contract or subcontract, or to any solicitation or proposal.

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20 39. NOTICES.

Any notice required to be given under this Agreement shall be given by placing such notice in the United States mail, postage prepaid, addressed as follows:

Franchisee: City:
[Name and Address of Franchisee] Downey Police Department Attn: Chief of Police
10911 Brookshire Avenue
Downey, CA 90241
City Attorney for the City:

City Attorney for City of Downey
11111 Brookshire Avenue
Downey, CA 90241 (fax) 562-923-6388
or to such other address as may be indicated by notice in writing. Such notice shall be deemed made when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S. mail, first-class postage prepaid and addressed to the party at its applicable address.

40. AUTHORITY TO ENTER AGREEMENT.

The City and Franchisee warrant that the individuals who have signed this Agreement have the legal power, right and authority to enter into this Agreement so as to bind each respective party to perform the conditions contemplated herein.

41. SEVERABILITY.

If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect.

42. ATTORNEYS’ FEES AND COSTS.

If any legal action or other proceeding is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default, or misrepresentation in connection with any provisions of this Agreement, the prevailing party, as determined by the court, shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition to any other relief to which it may be entitled.

43. GOVERNING LAW AND VENUE.

This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any lawsuit brought to enforce this Agreement shall be brought in the appropriate court in Los Angeles County, State of California.

44. WAIVER
No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be deemed a waiver and no waiver shall be binding unless executed in writing by the party making the waiver.

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21 45. DAYS.

Any term in this Agreement referencing time, days, or period for performance shall be deemed to be calendar days and not work days.

46. ENTIRE AGREEMENT.

This Agreement contains the entire agreement of the City and Franchisee and supersedes any prior oral or written statements or agreements between the City and Franchisee. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by both the City and Franchisee. Franchisee represents that it has conducted all due diligence and investigation prior to entering into this Agreement, and has not relied upon any representations that are not set forth herein as an inducement to enter into this Agreement.

47. BINDING ON ASSIGNS.

Each and all of the terms, covenants and conditions of this Agreement shall be binding on and shall inure to the benefit of the successors and assigns of the City and Franchisee.

48. CAPTIONS.

The captions of the various sections, articles and/or paragraphs of this Agreement are for the convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement or of any part or parts of this Agreement.

49. CONSTRUCTION.

In all cases, the language in all parts of this Agreement shall be construed simply, according to its fair meaning and not strictly for or against any party, it being agreed that the City and Franchisee or their respective agents have all participated in the preparation of this Agreement.

50. COOPERATION BY PARTIES.

The City and Franchisee shall fully cooperate with one another in attaining the purposes of this Agreement and, in connection therewith, shall take any such additional further acts and steps and sign any such additional documents as may be necessary, appropriate and convenient as related thereto.

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22 IN WITNESS WHEREOF, the city and Franchisee have caused this Agreement to be executed by their respective officers hereunto duly authorized.

CITY OF DOWNEY MR. C’S TOWING, INC.

By: By:

Claudia Frometa, Mayor Mark Mathis

Dated: Dated:

ATTEST:

Maria Alicia Duarte, CMC, City Clerk

APPROVED AS TO FORM: CONCUR:

John Funk
City Attorney
Scott R. Loughner
Chief of Police

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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

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.

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:

Name Date Last Date Driver’s
(Last, First, Middle) Trained of Hire License #

DISPATCHER: _____________ __________ __________ ___________

_____________ __________ __________ ___________

Name Date Last Date Driver’s
(Last, First, Middle) Trained of Hire License #

TOW TRUCK
DRIVER: _____________ __________ __________ ___________

______________ __________ __________ ___________

28 ______________ __________ __________ ___________

______________ __________ __________ ___________

Name Date Last Date Driver’s
(Last, First, Middle) Trained of Hire License #

LIEN-SALE: ______________ __________ __________ ___________

______________ __________ __________ ___________

Name Date Last Date Driver’s
(Last, First, Middle) Trained of Hire License #

SECURITY: ______________ __________ __________ ___________

______________ __________ __________ ___________

Name Date Last Date Driver’s
(Last, First, Middle) Trained of Hire License #

VEHICLE
STORAGE: ______________ __________ __________ ___________

______________ __________ __________ ___________

29 Name Date Last Date Driver’s (Last, First, Middle) Trained of Hire License #

RELEASE OF
VEHICLES: ______________ __________ __________ ___________

______________ __________ __________ ___________

Name Date Last Date Driver’s
(Last, First, Middle) Trained of Hire License #

CUSTOMER
SERVICE: ______________ __________ __________ ___________

______________ __________ __________ ___________

Name Date Last Date Driver’s
(Last, First, Middle) Trained of Hire License # OFFICE
SUPPORT: ______________ __________ __________ ___________

______________ __________ __________ ___________

30 Name Date Last Date Driver’s (Last, First, Middle) Trained of Hire License #

EMERGENCY

OR AFTER-
HOURS: ______________ __________ __________ ___________

______________ __________ __________ ___________

Name Date Last Date Driver’s
(Last, First, Middle) Trained of Hire License # OTHER
PERSONNEL: ______________ __________ __________ ___________

______________ __________ __________ ___________

31 8. EMPLOYEE SAFETY AND TRAINING

8.1 Does your firm have a written Injury and Illness Prevention Program (“IIPP”) that complies with California’s Code of Regulations, Title 8, Section 3203, or any other written policy manual for your employees’ safety?
□ Yes □ No

8.2 Does your firm have a written policy for handling, transporting and disposing of hazardous materials?
□ Yes □ No

8.3 Does your firm have a training program for new employees? □ Yes □ No

8.4 Does your firm have annual or biennial training for its tow unit operators? □ Yes □ No

8.5 In the past five years, has your firm’s employees suffered any work-related fatalities?
□ Yes □ No

If Yes, list the date; describe the facts and circumstances about each instance; identify any governmental entity that issued a citation or notice of violation; list the date, court and case number of any criminal action or civil suit arising out of each instance; and set forth the status, outcome or disposition of the citation, notice of violation, criminal action or civil suit. Attach additional sheets as necessary.

____________________________________________________________

32 8.6 In the past five years, has your firm received an OSHA or Cal/OSHA citation or notice of violation?
□ Yes □ No

If Yes, list the date; describe the facts and circumstances about each instance; identify any citation or notice of violation that the agency issued; list the date, court and case number of any criminal action or civil suit arising out of each instance; and set forth the status, outcome or disposition of the citation, notice of violation, criminal action or civil suit. Attach additional sheets as necessary.

____________________________________________________________

33 9. SECURITY AND SAFEKEEPING

9.1 The RFP and the Contract require that the Proposer provide a safe and secure:

Business Office, Primary Storage Lot, Secondary Storage Lot and Police Hold Vehicles Storage Area. Please place an “X” below for each security device or measure in operation for each location:

Business Primary Secondary Police Hold
Office Storage Storage Vehicle Storage
Lot Lot Area

SURVEILLANCE
CAMERA: _______ _______ _______ __________

ALARM
SYSTEM: _______ _______ _______ __________

FLOOD
LIGHTS: _______ _______ _______ __________

PERIMETER
FENCE OR WALL: _______ _______ _______ __________

LOCK AND KEY: _______ _______ _______ __________

GUARD OR
WATCH PERSON: _______ _______ _______ __________

GUARD DOG: _______ _______ _______ __________

DRIVE BY SECURITY
COMPANY PATROL: _______ _______ _______ __________

34 10. FINANCIAL RESOURCES AND RESPONSIBILITY

10.1 In the past seven years, has your firm or anyone else acting on behalf of your firm, filed for bankruptcy, insolvency, receivership, or reorganization? □ Yes □ No

If Yes, list the filing date, identify the court and case number, describe the facts and circumstances giving rise to each instance and set forth the disposition or current status.

Attach additional sheets as necessary.

____________________________________________________________

10.2 In the past five years, has your firm had any consolidations, mergers, acquisitions, closings, layoffs, or staff reductions?

□ Yes □ No

If Yes, list the date and describe the facts and circumstances about each instance.

Attach additional sheets as necessary.

____________________________________________________________

35 11. BID REJECTION AND CONTRACT TERMINATION

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

11.1 Has a government entity or a client ever rejected your firm’s bid or proposal for services?
□ Yes □ No

If Yes, list the date and describe the facts and circumstances about each instance. Attach additional sheets as necessary.

____________________________________________________________

11.2 Has a government entity or a client ever determined that your firm is a non- responsible bidder or contractor?
□ Yes □ No

If Yes, list the date and describe the facts and circumstances about each instance.

Attach additional sheets as necessary.

____________________________________________________________

36 11.3 Has your firm ever failed to fulfill or perform a contract or an agreement with a government entity?
□ Yes □ No

If Yes, list the date and describe the facts and circumstances about each instance.

Attach additional sheets as necessary.

____________________________________________________________

11.4 Has a government entity or a client ever terminated a contract for tow services with your firm?
□ Yes □ No

If Yes, list the date and describe the facts and circumstances about each instance. Attach additional sheets as necessary.

____________________________________________________________

37 11.5 In the past five years, has your firm or any of its owners, partners, o fficers or employees been convicted of a crime related to the bidding of a government contract, the awarding of a government contract or the performance of a government contract? (“Convicted” includes a verdict of guilty by a judge or jury, a plea of guilty, a plea or nolo contendere or a forfeiture of bail.) □ Yes □ No

If Yes, identify the government entity; list the date, court and case number; describe the facts and circumstances about each instance; and set forth the penalty or punishment imposed. Attach additional sheets as necessary.

____________________________________________________________

12. BUSINESS INTEGRITY

For the following questions, the term “owner” does not include owners of stock in your firm if your firm is a publicly traded corporation. The term “convicted” includes a verdict of guilty by a judge or jury, a plea of guilty, a plea of nolo contendere, or a forfeiture of bail.

12.1 In the past five years, has your firm or any of its owners, partners, officers or employees been convicted in a criminal action or found liable in a civil suit for making false claims(s) or material misrepresentations(s) to any government entity? □ Yes □ No

If Yes, identify the government entity; list the date, court and case number; describe the facts and circumstances about each instance; and set forth the outcome or disposition. Attach additional sheets as necessary.

____________________________________________________________

38 ____________________________________________________________

____________________________________________________________

12.2 In the past five years, has your firm or any of its owners, partners, officers or employees been convicted of a crime involving embezzlement, theft, fraud, forgery, bribery, deceptive or unlawful business practices, perjury, falsifying or destroying records or evidence or receiving stolen property?
□ Yes □ No

If Yes, identify the crime or offense; list the date, court and case number; describe the facts and circumstances about each instance; and set forth the penalty or punishment imposed. Attach additional sheets as necessary.

____________________________________________________________

12.3 To your knowledge, is a government entity currently investigating your firm or any of its owners, partners, officers or employees for making false claim(s) or material misrepresentations(s)?
□ Yes □ No

39 If Yes, identify the government entity and describe the facts and circumstances about each instance. Attach additional sheets as necessary.

____________________________________________________________

13. CLAIMS AND SUITS

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

13.1 In the past three years, has your firm or any of its owners, partners, officers or employees been a defendant in court on a matter related to:

13.1.1 The performance, non-performance, default, or breach of a contract or agreement?
□ Yes □ No

13.1.2 A vehicle collision or other accident involving your firm’s tow truck operator?
□ Yes □ No

13.1.3 Bodily injury or personal injury (libel, slander, false imprisonment) to a customer?
□ Yes □ No

13.1.4 Employment-related litigation brought by an employee of your firm? □ Yes □ No

13.1.5 Payment to a subcontractor?
□ Yes □ No

If the answer to any of the questions 13.1.1 to 13.1.5 above is Yes, identify the name of the person or entity that sued (i.e., “the plaintiff”); list the date, court and case number; describe the facts and circumstances giving rise to the lawsuit; and set forth the outcome or disposition. Attach additional sheets as necessary.

40 ____________________________________________________________

____________________________________________________________

13.2 In the last three years, has your firm ever filed a claim for damages or a lawsuit or requested arbitration or mediation against a government entity? □ Yes □ No

If Yes, identify the government entity; list the date, court and case number; describe the facts and circumstances about the claim for damages or the lawsuit or both; and set forth the outcome or disposition. Attach additional sheets as necessary.

____________________________________________________________

41 13.3 Are there any pending or outstanding judgments or liens against your firm? □ Yes □ No

If Yes, identify the name of the person or entity entitled to payment; list the date, court and case number; describe the facts and circumstances giving rise to the judgment or lien; and set forth the amount of the judgment or lien. Attach additional sheets as necessary.

____________________________________________________________

13.4 For the last four years, state how many vehicle collisions or accidents occurred which involved your firm’s tow truck operators (whether or not the tow truck operator was at fault):

13.4.1 2022: __________

13.4.2 2023: __________

13.4.3 2024: __________

13.4.4 2025: __________

13.5 For the last three years, state how many customers reported to your firm vehicle damage or theft including the vehicle’s contents, while the vehicle was towed or stored by your firm (whether or not your firm believes it was responsible for the loss or damage).

13.5.1 2023: __________

13.5.2 2024: __________

13.5.3 2025: __________

42 14. INSURANCE

14.1 A Proposer who is awarded a contract must maintain liability and workers’ compensation insurance as indicated below, as more fully described in this RFP and the Contract. As part of this proposal, your firm must submit evidence of its current insurance coverage. This information will be used only for the purpose of determining whether the Proposer has insurance to perform the requested services.

Contact your firm’s insurance company or agent and request a “Certificate of Insurance” (an ACORD form or equivalent). Attach the certificate of insurance to this proposal.

NOTE: Do not add the City to your insurance policy or otherwise change your current policy or its coverage.

14.2. Please place an “X” below to indicate the type of insurance coverage that your firm now has and list the coverage amounts for each:

______ Commercial General Liability Coverage:______________________________

______ On-Hook Liability Coverage:______________________________

______ Business Automobile Liability Coverage:______________________________

______ Cargo Liability Coverage:______________________________

______ Garage Liability Coverage:______________________________

______ Uninsured Motorist/Bodily Injury Coverage:______________________________

______ Garage keepers Liability Coverage:______________________________

______ Pollution Liability Coverage:______________________________

______ Workers’ Compensation Liability Coverage:______________________________ ______ Excess Liability or Umbrella Coverage:______________________________

14.3 If your firm is self-insured, identify the liability(s) listed above for which your firm insures itself and set forth the amount of the self-insured retention (SIR):

Liability: __________________________SIR amount: ___________

Liability: __________________________SIR amount:____________

43 14.4 For the last three years, state how many bodily injury, personal injury or property damage claims (whether or not your firm believes it was responsible for the loss or injury), filed by customers or third parties, that your firm forwarded to its insurance carrier(s). Include paid and unpaid claims:

14.4.3 2023: _____________

14.4.4 2024: _____________

14.4.5 2025: _____________

14.5 In the past five years, has an insurance company or a surety company:

14.5.1 Refused to insure your firm for a type of insurance policy listed in Question 14.2 above?

14.5.2 Canceled or non-renewed your firm’s insurance coverage?

If the answer to question 14.5.1 or 14.5.2 is Yes, identify the name of the insurance company or surety company; list the date; and describe the facts and circumstances about each instance. Attach additional sheets as necessary.

____________________________________________________________

44 15. CUSTOMER SERVICE COMPLAINTS AND DAMAGE CLAIMS

Below, please describe the process and procedures that your firm has in place for responding to and resolving: (1) Customer complaints; and (2) Customer claims for vehicle or contents damage or theft. (You may attach your firm’s written policy).

____________________________________________________________

45 16. CREDIT AND REFERENCE CHECK

16.1 The City of Downey may: (1) request credit reports or investigative reports, or both, about your firm; and, (2) contact the reference, government entities and other persons listed in this proposal. The City of Downey will use this information to evaluate your firm’s financial resources, responsibility and integrity with respect to this proposal, an award of the Contract, or any contract renewal. The City of Downey will treat any information that it obtains now or later as confidential.

16.1.1 Does your firm authorize the City of Downey to obtain credit and investigative reports about your firm?
□ Yes □ No

16.1.2 Does your firm authorize the references, government entities and other persons listed in the proposal to release information about your firm to the City of Downey?
□ Yes □ No

17. ADDITIONAL INFORMATION

Below, please state any other information that your firm believes is essential to a complete evaluation of the proposal. If your firm has no additional information, please state below: “Our firm does not have any additional information to present.”

____________________________________________________________

46 18. ATTACHMENTS

Certain sections of the Proposal Forms requested photographs, insurance certificates and further explanations if your firm answered “yes” to a question. For each attachment that is a part of this Proposal, please list and describe the attachment (e.g., “#3 photographs of our tow trucks” or “Explanation concerning questions 9.3-2 pages.” If your firm has no attachments, write “None” on 18.1).

Our firm declares that the attachments listed below are added and are made a part of this Proposal in order to fully and accurately respond to the RFP:

18.1 _____________________________________________________

18.2 _____________________________________________________

18.3 _____________________________________________________

18.4 _____________________________________________________

18.5 _____________________________________________________

18.6 _____________________________________________________

18.7 _____________________________________________________

18.8 _____________________________________________________

18.9 _____________________________________________________

18.10 _____________________________________________________

18.11 _____________________________________________________

18.12 _____________________________________________________

18.13 _____________________________________________________

18.14 _____________________________________________________

18.15 _____________________________________________________

18.16 _____________________________________________________

18.17 _____________________________________________________

18.18 _____________________________________________________

47 18.19 _____________________________________________________

18.20 _____________________________________________________

18.21 _____________________________________________________

18.22 _____________________________________________________

18.23 _____________________________________________________

18.24 _____________________________________________________

18.25 _____________________________________________________

18.26 _____________________________________________________

18.27 _____________________________________________________

18.28 _____________________________________________________

18.29 _____________________________________________________

18.30 _____________________________________________________

48 PROPOSER CERTIFIES THAT:

A. This proposal is genuine, is not a sham or collusive, and is not made in the interest of or on behalf of any person, partnership, corporation, firm, organization or another entity not named or disclosed in the proposal;

B. All facts and statements in the proposal are completely true, accurate and correct.

C. By signing this proposal, each individual below represents and warrants that the individual:

(1) Has the right, power, legal capacity and authority not only to sign this Proposal on the Proposer’s behalf, but also to bind the Proposer to this Proposal; and,

(2) Binds the Proposer to this proposal.

PROPOSER

By ______________________________
Signature

Name ____________________________
Printed

________________________________
Title

Address

________________________________

Telephone _______________________

Downey City CouncilFebruary 24, 2026

Downey City Council
February 24, 2026