TOWING SERVICES AGREEMENT
by and between
CITY OF LANCASTER,
a California charter city and municipal corporation and Velocity Towing and Recovery LLC,
a California Limited Liability Company
TABLE OF CONTENTS
Contents
RECITALS................................................................................................................................................28 ROTATION TOW SERVICE ......................................................................................................................28 TOW TRUCK CLASSIFICATIONS ..............................................................................................................30 RATES ....................................................................................................................................................31 STORAGE FEES.......................................................................................................................................33 COLLUSION............................................................................................................................................34 RESPONSE TO CALLS..............................................................................................................................34 STORAGE FACILITY.................................................................................................................................35 INSURANCE ...........................................................................................................................................37 INSPECTIONS .........................................................................................................................................38 BUSINESS RECORDS...............................................................................................................................38 FINANCIAL INTEREST .............................................................................................................................39 MEET AND CONFER REQUIREMENTS ....................................................................................................40 DEMEANOR AND CONDUCT..................................................................................................................40 COMPLIANCE WITH LAW.......................................................................................................................40 BUSINESS WITH PUBLIC OFFICIALS AND EMPLOYEES ...........................................................................41 COMPLIANCE WITH AGREEMENT .........................................................................................................41 DISCIPLINARY ACTIONS .........................................................................................................................41 HEARING/APPEAL..................................................................................................................................43 CANCELATION, TERMINATION AND EXEMPTIONS................................................................................43 CONFLICTING CITY ORDINANCE OR WRITTEN POLICY PROVISION EXCEPTION.....................................44 TERM OF AGREEMENT ..........................................................................................................................44 OPERATOR APPROVAL ..........................................................................................................................44
THIS TOWING SERVICES AGREEMENT (“TSA” or “Agreement”) is made and entered into as of July ,2026 (“Effective Date”), by and between CITY OF LANCASTER, a California charter city and municipal corporation (“City”), and Velocity Towing and Recovery LLC, a California Limited Liability Company (“Operator”).
RECITALS
A. City desires the services of tow operators to participate in the City of Lancaster Community Preservation rotational towing program pursuant to the terms of this Agreement.
B. Operator has completed and submitted the necessary Towing Applications and other Documents required by the City and has been approved by the City of Lancaster to provide rotational towing services under this Agreement.
C. Operator represents that it has the necessary expertise, equipment, storage facilities, personnel, and insurance to meet all requirements of City to provide towing services under this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows:
ROTATION TOW SERVICE
A. Any amendment, modification, exception, or other change to the terms of this Agreement must be in writing and signed by the City and Operator.
B. Operator shall have a business office and storage facility located within the City’s jurisdictional limits. A secondary storage facility does not qualify as a location unless this requirement is waived in writing by the City.
C. The City shall maintain the tow rotation lists. Operators with heavy duty capabilities called for heavy duty tows are not subject to the rotation unless more than one operator has these capabilities.
D. Nothing in this Agreement prohibits the City from requesting a specific tow operator when, in its opinion, the necessary resources to clear a hazard as expeditiously as possible are not available from the tow operator currently at the top of the rotation tow list. In such an instance, the tow operator selected should be the next tow operator on the list that has the qualifications (e.g., equipment, skills, timeliness, etc.) to provide the required service. After the request, the selected operator will then go to the bottom of the rotation tow list. A tow operator on the same list that was bypassed shall remain in the same order until its selection for a rotation tow for which it is qualified.
E. Nothing shall prohibit a Class B, C, or D operator from maintaining a place on a lighter class rotation tow list, provided the tow truck meets the equipment specifications for that class of operation.
F. Regardless of the class of tow truck utilized or responding to the call, charges shall not be more than for the class of vehicle towed or serviced, except where vehicle recovery operations require a larger class of tow truck.
G. A call to Operator shall constitute one turn on the list and Operator shall be moved to the bottom of the list. This includes when Operator fails to answer the phone, is unable to respond, is unable to perform the required service, refuses to respond or provide service, or is cancelled due to excessive response time. If it is determined that Operator is not needed and is cancelled by the requestor, up to and including arrival at the scene, there shall be no charges and Operator will be placed back at the top of the list.
1. If Operator’s service is cancelled by the vehicle’s owner or agent prior to Operator taking possession of the vehicle, there shall be no charges for towing. Operator shall immediately contact the City and advise it of the cancellation. Operator shall then be placed back at the top of the list.
2. If service, other than towing and recovery, has begun and is cancelled by the vehicle’s owner or agent, Operator may charge one-half of the regular hourly service charges, for the time expended on the call. For purposes of cancellation, service begins when physical work on the vehicle has begun, not the response. No lien shall arise for the service unless Operator has presented a written statement to the vehicle’s owner or agent for the signed authorization of services to be performed.
3. Operator shall not attempt to take possession of the vehicle in order to establish a lien for any non-towing services performed, or begun and subsequently cancelled, when not entitled to such lien by law. (See California Civil Code section 3068.1 for additional information regarding liens.)
H. Operator may dispatch more than one tow truck to a multi-vehicle scene in response to a rotation tow call.
I. If two or more operators are called to the same incident, distribution of the vehicles shall be at the discretion of the City.
J. The City may direct Operator to move vehicles to help clear a roadway. Operator shall provide the assistance as directed. There shall be no charge for this assistance, and the assistance provided shall not change Operator’s place in the rotation.
K. The City may request tow services outside the normal rotation on a special needs basis, including but not limited to, special enforcement activities, safety checkpoints, and D.U.I. checkpoints, and/or any other circumstance that the City deems necessary.
L. The City does not represent or warrant that Operator will be given an equal distribution of tows under the rotation in any given month or year as compared to other operators on the rotation.
TOW TRUCK CLASSIFICATIONS
A. Operator shall equip and maintain tow truck(s) covered under this Agreement in accordance with the provisions set forth in the California Vehicle Code, other applicable law, the specifications contained in this Agreement, and consistent with industry standards and practices.
1. Notwithstanding section 615 of the California Vehicle Code, all Operator’s tow trucks shall have recovery capabilities, wheel lift capabilities, and a boom meeting the specifications contained in this Agreement. For the purpose of this Agreement, “a trailer for hire that is being used to transport a vehicle” shall not qualify as a primary tow truck for rotation tow lists.
2. At the City’s discretion, a car carrier may be exempted from the recovery, wheel lift, and boom capability requirements.
B. A violation of the Gross Vehicle Weight Rating (GVWR) and safe loading requirements of a tow truck shall be cause for immediate suspension of this Agreement. This includes exceeding the tow truck’s GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50% of the tow truck’s unladen weight on the front axle when lifting/carrying a load.
C. Operator shall, at a minimum, have in service at all times the following classes of tow trucks:
1. Class A – Light Duty
a. Operator shall maintain a minimum of one tow truck that has a manufacturer’s GVWR of at least 14,000 pounds.
b. City may require that one of the additional required tow trucks be a car carrier in areas where rapid response for congestion relief is required or where the need exists based upon the type of vehicles towed.
c. A “trailer for hire” shall not be approved for listing as a Class A tow truck. d. Equipment previously approved and continuously used on rotation for the Los Angeles County Sheriff’s Department (“LASD”) or the City may be deemed suitable at the City’s discretion.
2. Class B – Medium Duty
a) Operator may maintain a minimum of one tow truck with a GVWR of at least 26,001 pounds. The truck shall be capable of providing and maintaining continuous air to the towed vehicle.
3. Class C – Heavy Duty
a) Operator may maintain at least one three-axle tow truck with a GVWR of at least 48,000 pounds. The truck shall be equipped with air brakes and must be capable of providing and maintaining continuous air to the towed vehicle.
4. Class D – Super Heavy Duty
a. Operator may maintain at least one three-axle tow truck with a GVWR of at least 52,000 pounds. The truck shall be equipped with air brakes and must be capable of providing and maintaining continuous air to the towed vehicle. This Tow Truck is not subject to standard rotation due to capabilities.
b. To properly and safely tow and service the wide variety of vehicles being operated on the highway, a towing procedure may require the use of auxiliary equipment specifically designed for the purpose. This auxiliary equipment should be used when appropriate. c. Only tow trucks approved by the City to participate in the rotation tow service program pursuant to this Agreement may be used by Operator when performing services pursuant to this Agreement.
d. Tow truck drivers shall perform all towing and recovery operations in the safest and most expedient manner possible. Tow truck drivers shall be duly and currently licensed by the State of California.
e. Operator shall maintain a current list of drivers and employees. Operator shall provide a current list of its drivers and employees to the City upon effectiveness of this Agreement.
Operator shall notify the City upon any change in driver status or employee status, including the addition of any new driver(s) or employee, or the termination of any driver or employee. An updated list shall be provided to the City within seven calendar days of any change in driver or employee status. This includes all employees having contact or access with vehicles towed, or having contact or access to administrative records.
RATES
A. Fees charged for response to calls originating from the City pursuant to this Agreement shall be reasonable and not in excess of the maximum chargeable rates established by the California Highway Patrol (“CHP”) (in the same region) and utilized by LASD rotation (if applicable).
Operator shall post rates as and to the same extent required by the CHP.
B. Reasonableness shall be determined as compared to other rates. If Operator’s rate is determined by the City to be excessive but not invalid, Operator may resubmit its rate once.
C. If Operator charges a rate in excess of the rate approved under this Agreement, Operator shall be in breach of this Agreement and subject to disciplinary action.
D. In an effort to remain competitive in the open market, Operator may lower retail rates at any time by notifying the City. If Operator lowers its retail rate, that retail rate becomes the new approved City rate. Rates for City calls shall remain at the lowest retail rate until the expiration of this Agreement.
E. The rate for towing shall be computed from portal to portal. Time expended shall be charged at a rate not to exceed the hourly rate. Time expended in excess of the minimums shall also be at the hourly rate in no more than one-minute increments. There shall be no additional charges for mileage, labor, fuel, oil, coolant, or for Operator’s time to release a vehicle when the storage facility is not at the same location where the request for release is received, and the request for release of the vehicle is made within normal business hours.
1. Operator may charge up to a thirty-minute minimum per call for any service or tow which is performed when the Operator or agent is present and the vehicle is not stored at the direction of an officer.
2. Operator may charge up to a one-hour minimum per call on responses which result in storage of a vehicle at the direction of the City.
3. Operator shall base towing charges upon the class of vehicle being towed regardless of the class of truck used, except when vehicle recovery operations require a larger class truck.
4. Operator shall base towing charges upon the class of vehicle being towed regardless of the class of truck used, except when vehicle recovery operations require a larger class truck.
F. Rates for a service call (e.g., out of gas, lockouts, tire changes, snow removal, and other problems) shall be from portal to end of service and may be at the hourly rate with up to a thirty-minute minimum. Charges in excess of thirty minutes may be charged in no more than one-minute increments.
G. Fees for Special Operations.
1. For special operations involving Class B, C, and D tow trucks, Operator shall submit its proposed fees for vehicle recovery operations and load salvage operations the City in advance for approval. Fees shall be reasonable and consistent with industry standards and practices for similar operations. Charges in excess of thirty minutes may be charged in no more than one-minute increments.
2. If Operator is on the two tow truck salvage and recovery list may charge a minimum two-hour rate. If it is determined that only one truck is required, the second truck may claim portal to portal and time expended on scene until determination was made that it was not required.
a. Hourly rates shall be established for the following:
i. Auxiliary and contracted equipment, e.g., airbags, converter gear/dolly, additional trailers, forklift, front loaders and the like. ii. Contracted equipment, e.g., airbags, converter gear/dolly, additional trailers, forklifts, scoop loaders, and the like. iii. Contract labor.
b. The City shall determine whether the submitted fees for these types of operations are reasonable, based upon the proposed fees submitted by other operators and a comparison to industry standards and practices for similar operations.
3. Operator shall submit a markup rate (i.e., percentage of the cost to Operator) for retail equipment and specialized labor not otherwise listed on the application.
4. If Operator performs a service for which a required rate was not submitted to, and approved by, the City, Operator shall only be entitled to charge for the actual cost of that service plus 10%.
5. Operator’s total fees charged for after-hours release shall be no more than one-half the hourly rate, and shall only be allowed if there is no person on duty at the storage facility for release and a call back is required outside normal business hours.
6. Operator shall tow any City-owned and/or -operated vehicle or motorized equipment free of charge.
7. When requested by the City for investigative purposes, Operator shall tow any vehicle or motorcycle free of charge, provided that if the City does not release the vehicle or motorcycle to Operator after 30 days, Operator may submit a claim for reimbursement for the services.
STORAGE FEES
A. Operator shall submit its proposed storage fees, for inside and outside storage, to the City. The City shall determine the reasonableness of the fees for inside and outside storage, based upon the average of the proposed fees submitted by those applying for rotation and any information submitted concerning industry standards and practices.
B. Operator shall display in plain view at all cashiers’ stations, a sign as described in section 3070(d)(2)(E) of the California Civil Code, disclosing all storage fees and charges in force, including the maximum storage rate.
C. Vehicles stored 24 hours or less shall be charged for no more than one day of storage. Each day thereafter shall be calculated by calendar day.
D. The approved schedule of rates charged by Operator shall be available in the tow truck and shall be presented upon demand to the person(s) for whom the tow services were provided, or his/her agent, or any City officer, employee, or agent at the scene.
E. Rate requirements represent the maximum rates of fees Operator may charge for a City call.
Operator is not precluded from charging less when deemed appropriate by the Operator.
These requirements shall not be construed as requiring a charge when Operator would not normally charge for such service.
COLLUSION
A. Operator shall not conspire, attempt to conspire, or commit any other act of collusion, with any other tow operator for the purpose of secretly, or otherwise, establishing an unfair understanding regarding rates or conditions to this Agreement that would bring about any unfair condition which could be prejudicial to the City, the motoring public, or other operator(s).
Examples of “collusion” include, but are not limited to, conspiracy by any operator(s) to establish artificially high or low rate(s) for services performed pursuant to this Agreement and/or conspiracy or attempt to circumvent the midterm review process.
B. A finding by the City that the Operator has been involved in collusion shall be cause for immediate termination of this Agreement. In such case, Operator shall be disqualified from participation in the City’s rotational tow service program for the remainder of the current term and the three subsequent terms.
RESPONSE TO CALLS
A. Operator shall respond to City calls 24 hours a day, seven days a week, within a maximum response time of 30 minutes. Operator shall respond with a tow truck of the class required to tow the vehicle specified by the City. Operator shall advise the City, at the time of the City’s request, if Operator is unable to respond or unable to meet the maximum response time. If, after accepting the call, Operator is unable to respond or will be delayed in responding, Operator shall immediately notify the City. Operator shall not assign any calls to other tow operator(s).
B. A failure to respond and perform required towing or service and/or repeated failure(s) to meet the maximum response time requirements shall constitute a breach of this Agreement.
1. The City may take immediate disciplinary action for any flagrant violation of the requirement to respond within the maximum response time.
2. If Operator will be temporarily unavailable to provide services due to a preplanned/scheduled activity, e.g., vacation, maintenance, medical leave, or other good cause, Operator shall notify the City at least 24 hours prior to the date that services will be unavailable, specifying the times and dates of unavailability.
C. Operator, or it employee(s) responding to a City call, shall perform the towing or service required for which it was called. This requirement may be waived by the City if the requested equipment is inadequate for the service to be performed.
D. Any refusal to respond or to perform the required towing or service will subject Operator to suspension or termination, if deemed appropriate by the City.
E. An Operator shall not respond to a City call assigned to another operator unless requested to do so by the City.
1. There may be times when Operator assigned the initial City call may require the assistance of an additional operator at the scene. Operator assigned the initial call may, subject to prior agreement with the City, request a specific operator (from the rotation tow list) to assist. The request shall be routed to the other operator through the City.
2. There may be times when Operator, although not called to a scene, comes upon a scene/tow request where a vehicle or vehicles are blocking a roadway and a City employee requests Operator’s assistance in clearing the roadway. In such a case, Operator may be requested to move the vehicle to a safe location, as directed by the City employee. There shall be no charge for this assistance, and the assistance provided shall not change Operator’s place in the rotation.
F. Only the tow truck personnel and equipment requested shall respond to a City call. Additional tow truck personnel and equipment shall be utilized only upon the approval of the City. This shall not preclude Operator from responding to an incident to ascertain if additional assistance or equipment is required. There shall be no additional charge for any personnel or equipment that is not necessary to perform the required service.
G. The City is responsible for contacting Operator for service and managing the rotation. Neither Operator nor its personnel shall contact, either directly or indirectly, the City for the purpose of requesting permission to tow a vehicle.
STORAGE FACILITY
A. Operator shall be responsible for maintaining adequate security of vehicles and property at its place of storage. At a minimum, a clean fenced or enclosed area shall be provided. Operator is responsible for the reasonable care, custody, and control of any property contained in towed or stored vehicles. The storage yard must conform to all local zoning use requirements then in effect and have any required permits to operate at that location.
B. Operator shall obtain written approval from the City prior to the removal of any property from a stored or impounded vehicle and shall provide a receipt, with a copy placed in the stored vehicle, for all removed property.
1. Operator shall release personal property from a stored or an impounded vehicle at the request of the vehicle owner or his/her agent.
a. There shall be no charge for the release of personal property during normal business hours. Operator may charge an after-hours release fee for property released after normal business hours. The fees charged shall be consistent with the after-hours vehicle release provisions. All persons requesting release of personal property will be notified of those fees at the time the request is made.
b. Personal property is considered to be items that are not affixed to the vehicle. i. Personal property includes, but is not limited to, papers, transportable cellular telephones, portable radios and/or portable stereo equipment, clothes, luggage, tools, and all other unaffixed contents.
ii. Items of personal property in a stored vehicle that are not required as evidence shall be released upon request of the vehicle owner or his/her agent. iii. Cargo not held as evidence shall be released upon demand of the carrier or pursuant to a court order.
C. Operator’s primary storage facility shall normally be at the same location as the business address.
If not at the same location, there shall be no charge for any additional distance traveled to and from a secondary location. The vehicle and/or personal property shall be released at the primary storage facility or place of business (when the primary storage facility and the place of business are not at the same location) upon request of the owner or a person having a legal entitlement to the vehicle and/or property.
D. Operator shall maintain sufficient storage capacity, as approved by the City.
E. Operator’s place of business shall have a sign that clearly identifies it to the public as a towing service. The sign shall have letters that are clearly visible to the public from the street. The sign shall be visible at night and shall inform the public where a complaint about the City’s rotational tow service program or a particular operator can be submitted.
F. For the purpose of this Agreement, “normal business hours” shall, at a minimum, mean from 8:00 a.m. to 5:00 p.m., Monday through Friday. Operator’s place of business shall be staffed continuously during normal business hours, except for the following state-recognized holidays:
New Year’s Day; Martin Luther King Day; Lincoln Day; Presidents’ Day; Memorial Day; Independence Day; Labor Day; Columbus Day; Veterans Day; Thanksgiving Day; day after Thanksgiving Day; and Christmas Day.
G. Operator’s business hours shall be posted in plain view to the public at both the place of business and/or storage facility.
H. Operator’s employees shall be properly trained and supervised in conducting business transactions related to towing, storage, and release of vehicles/property.
I. Operator’s release of vehicles shall be conducted in accordance with industry standard tow/impound procedures and all applicable law.
INSURANCE
A. Operator shall maintain the following minimum levels of insurance from an insurance carrier admitted in California or admitted in the state in which Operator’s business is located and is authorized to do business in California:
1. Commercial General Liability in an amount not less than $2,000,000 per occurrence and $2,000,000 aggregate for bodily injury, personal injury and property damage. Operator shall maintain insurance on an occurrence, not claims-made basis.
2. Auto Liability in an amount not less than $1,000,000 covering bodily injury, personal injury and property damage for all activities of the OPERATOR arising out of or in connection with the work to be performed under this AGREEMENT, including coverage for owned, hired and non-owned vehicles.
3. On-Hook Coverage – Insuring the vehicle in tow with limits based on the size of the tow truck.
a. Class A tow truck $50,000
b. Class B tow truck $100,000
c. Class C tow truck $200,000
d. Class D tow truck $250,000
4. Garage Keepers Liability in an amount not less than $1,000,000 for the loss or injury to or destruction of any stored vehicle as a result of fire, theft, explosion, riot and/or civil commotion, vandalism or malicious mischief.
5. Workers’ Compensation Insurance – Legal minimum requirement in effect.
B. Proof of required insurance shall be submitted to the City in the form of a certificate of insurance prior to consideration for placement on the rotation tow list. Operator is required to maintain the above insurance coverages for the duration of this Agreement. The expiration or cancellation of any insurance required by this Agreement shall constitute a breach of this Agreement and shall permit the City to immediately suspend or terminate this Agreement.
C. The insurance policies shall contain the following provisions, or Operator shall provide endorsements on forms supplied or approved by the City to state:
1. Coverage shall not be suspended, voided, reduced or canceled except after 30 days prior written notice by certified mail, return receipt requested, has been given to the City;
2. any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers;
3. coverage shall be primary insurance as respects the City, its elected officials, officers, employees, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Operator’s scheduled underlying coverage and that any insurance or self- insurance maintained by the City, its officials, officers, employees, and volunteers shall be excess of the Operator’s insurance and shall not be called upon to contribute with it;
4. for general liability insurance, that the City, its officials, officers, employees, and volunteers shall be covered as additional insureds with respect to the services or operations performed by or on behalf of Operator, including materials, parts or equipment furnished in connection with such work; and
5. for automobile liability, that the City, its officials, officers, employees, and volunteers shall be covered as additional insured with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Operator or for which the Operator is responsible.
INSPECTIONS
A. Operator must pass not less than one annual inspection of all tow trucks by a qualified law enforcement agency. The City, at its discretion, may accept a CHP inspection to satisfy this requirement. The City may conduct additional inspections without notice during normal business hours. Operator shall not dispatch a tow truck to a call pursuant to this Agreement that has not been inspected and approved by the City and/or CHP.
1. If Operator fails an inspection, it is entitled to only one reinspection. Failure to pass the reinspection shall be cause for the City to disqualify that tow truck from use pursuant to this Agreement. In such case, the disqualified tow truck shall be and remain disqualified until the next enrollment period.
B. If 80% of Operator’s tow trucks fail the initial annual inspection, no reinspection shall be permitted. In such case, this Agreement shall automatically terminate.
BUSINESS RECORDS
A. Operator shall maintain written or computerized records, at its place of business of all tow services furnished pursuant to this Agreement. By the 15th day of each month, Operator shall provide to the City a list of every vehicle towed pursuant to this Agreement during the previous
month. The list shall contain, at a minimum, the service date, time, location, and the vehicle license plate, VIN, make, and model.
B. Operator’s invoices shall at a minimum include a description of vehicle(s), nature of service, start time, end time, location of call, itemized costs of towing and storage, the tow truck driver’s name, and truck used.
C. Operator’s records for each call shall indicate the tow truck driver’s name and truck used.
D. Operator shall also maintain business records relating to personnel, insurance, personnel taxes, payroll, applicable operating authorities, local operating authorities, lien sale actions, Federal Communication Commission licensing, and non-city tows.
E. City or its authorized representative may inspect all Operator records without notice during normal business hours.
F. Operator shall permit the City to make copies of business records at Operator’s place of business or remove business records for the purpose of reproduction. The City shall provide a receipt for any original record removed from Operator’s place of business.
G. Records shall be maintained and available for inspection for a period of two years following expiration or termination of this Agreement.
H. Operator’s failure or refusal to comply with the inspection requirements of this section shall, at the City’s discretion, be cause for immediate suspension or termination of this Agreement.
FINANCIAL INTEREST
A. Operator shall not be directly involved in the towing-related business of any other operator. “Directly involved” means anything in common between operators or applicants with regard to business licensing, insurance, tow truck or equipment ownership, and/or employees.
B. Storage facilities owned by Operator and shared with another operator, shall only be approved if Operator charges for the space exclusively on a flat monthly rate rather than a vehicle-by- vehicle basis, or combination thereof.
C. Facilities shared by operators shall be physically separated and secured from each other unless approved by the City.
D. This Agreement shall immediately and automatically terminate upon the sale or other transfer of Operator, substantially all of Operator’s assets, and/or a controlling interest in Operator (whether in the form of a partnership interest, membership interest, shareholder interest, or otherwise).
MEET AND CONFER REQUIREMENTS
The City may from time-to-time request that Operator meet and confer with the City to discuss issues concerning the tow rotation and tow services. Attendance at such meeting(s) shall be mandatory for the Operator. The City shall give Operator at least 10 days written notice of such meeting(s).
DEMEANOR AND CONDUCT
A. While performing any service pursuant to this Agreement, Operator and/or its employee(s) shall refrain from any act(s) of misconduct, including, but not be limited to, any of the following: rude or discourteous behavior; lack of service, selective service, or refusal to provide service, which the Operator is/should be capable of performing; any act of sexual harassment or sexual impropriety; unsafe driving practices; exhibiting any objective symptoms of alcohol and/or drug use; showing up to a scene without proper equipment such as brooms, absorbent and other equipment required by this Agreement; appearing at a scene with improper or offensive clothing; any violation of the required equipment or safety practice required by the California Vehicle Code; and failure to arrive at a scene within the maximum response time.
B. All complaints received by the City concerning Operator’s and/or its employees’ performance under this Agreement will be accepted and investigated in a fair and impartial manner. As a result of such investigation, the City may initiate disciplinary action. In any event, Operator will be notified of the results of any investigation.
C. A violation of this section shall constitute a breach of this Agreement and, at the City’s discretion, be cause for the City to suspend or terminate this Agreement.
COMPLIANCE WITH LAW
A. Operator and its employees shall, at all times, comply with all federal, state, and local laws and regulations, which include, but are not limited to, those laws which are applicable to Operator.
1. In the event of a minor traffic violation(s) by rotation tow truck driver(s) which come(s) to the attention of the City, Operator will be granted the opportunity to take necessary steps to ensure that its driver(s) drive(s) in compliance with law. Any subsequent traffic violation(s) may be cause for disciplinary action against Operator and/or the involved employee(s).
2. Any flagrant traffic violation(s) may be cause for immediate disciplinary action against Operator and/or the involved employee(s).
3. A conviction of Operator or any of its employees involving a stolen or embezzled vehicle, fraud related to the tow business, stolen or embezzled property, a crime of violence, a drug- related offense, felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug while involved in a City rotation tow call, or moral turpitude shall be cause for immediate termination of this Agreement.
BUSINESS WITH PUBLIC OFFICIALS AND EMPLOYEES
All business conducted between Operator and/or its employees and any employee or official of either the City or any family member of any of these persons, shall be conducted in a manner consistent with normal business practices without favoritism or prejudice. Neither Operator nor its employees shall knowingly sell any vehicle to any employee or official of either the City and/or to any family member of any of these persons, without written authorization from the City.
COMPLIANCE WITH AGREEMENT
Operator agrees to comply with all of the terms and conditions of this Agreement. Furthermore, Operator agrees that its failure to comply with the terms and conditions of this Agreement shall be cause for written reprimand, suspension, or termination of this Agreement.
DISCIPLINARY ACTIONS
A. The City may take disciplinary action against Operator for violations investigated and confirmed or sustained. Unless otherwise noted, the City shall determine the period of suspension. The City shall retain discretion regarding the length of any suspension imposed pursuant to the terms and conditions of this Agreement.
B. Records of violations shall be retained by the City for at least 36 months.
C. Any disciplinary action taken against Operator by a local CHP Commander may also be imposed by the City, if the underlying violation relates to safety.
D. Operator’s violation of the equipment requirements related to safety may be cause for immediate suspension. The City shall determine the period of the suspension. The suspension will remain in effect until the period of suspension is completed and the City has conducted an inspection and found that Operator is in compliance.
E. Operator’s violation of the GVWR and safe loading requirements of a tow truck may be cause for immediate suspension. This includes exceeding the tow truck’s GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50% of the tow truck’s unladen weight on the front axle when lifting/carrying a load.
F. Operator’s intentional overcharging or a pattern of overcharging shall be cause for immediate suspension or termination. If suspension occurs, then the City shall determine the period of the suspension. The suspension will remain in effect until the period of suspension is completed and Operator has presented proof to the City that restitution of the overcharge has been made to the aggrieved customer(s).
G. Operator shall not offer or pay any gratuity to City employees.
H. Operator shall not refuse or fail to respond to or perform required towing or other service pursuant to this Agreement.
I. Operator’s failure or refusal to satisfy a court order mandating reimbursement to a vehicle or property owner for damage or loss shall be cause for suspension, which shall remain in effect until Operator has provided evidence satisfactory to the City that such order has been satisfied.
J. Operator’s failure or refusal to comply with the inspection requirements of this Agreement shall result in immediate suspension.
K. Operator’s use of a tow truck driver for a call under this Agreement for whom a Tow Operator/Driver Information Form has not been submitted to the City shall be cause for immediate suspension.
L. Operator’s failure or refusal to maintain the minimum insurance requirements set forth in this Agreement shall result in automatic and immediate termination of this Agreement.
M. If the Operator is serving a suspension for one year or more, he/she shall be required to comply with all terms and conditions of the current Agreement at the time of the reinstatement. No equipment shall be approved that is not in compliance with the equipment specifications contained in this Agreement at the time of reinstatement. Sections of this Agreement that are commonly referred to as “grandfather clauses” shall no longer apply to any Operator who is suspended for one year or more.
N. Major Violations. Violations of the terms and conditions of this Agreement that are subject to suspension for the first violation are categorized as major violations. Any subsequent or continuing major violation shall be cause for termination.
O. Minor Violations. Except as specifically stated in this Agreement, minor violations of the terms and conditions of this Agreement may be cause for disciplinary action in the following manner:
1. 1st violation – letter of written reprimand and mandatory meeting between the towing service owner and the City to discuss remediation and future avoidance of the violation.
2. 2nd violation within 12 months – 1 to 30-day suspension.
3. 3rd violation within 12 months – 1 to 90-day suspension.
4. 4th violation within 12 months – termination of this Agreement.
HEARING/APPEAL
A. In the event the City serves Operator with a written reprimand or suspension, Operator may request a hearing within seven calendar days by submitting a request in writing to the City’s Director of Community Development. If a hearing is requested, it shall be held as soon as practicable. The hearing shall be conducted by the City’s Director of Community Development and Operator shall be entitled to present all relevant facts and circumstances in support of its position. Operator shall be further entitled to present testimony of at least one representative of a tow truck association or other qualified person. The hearing shall be recorded. The City’s Director of Community Development shall send his or her decision to Operator within 10 business days of the date of completion of the hearing.
B. The decision by the City’s Director of Community Development shall be final and not subject to any further
administrative appeal.
C. A suspension shall not take effect until the hearing process has been exhausted, unless the City determines that the Operator’s conduct constitutes a danger to the motoring public or grossly violates the terms and conditions of this Agreement.
CANCELATION, TERMINATION AND EXEMPTIONS
A. This Agreement may be cancelled by either party for no reason or any reason, without fault or prejudice, by giving thirty (30) days written notice to the other party.
B. The City may temporarily relieve Operator of compliance with a required provision of this Agreement. Any such exemption must be requested in writing, stating valid reasons for the need and justification for a temporary exemption from a requirement of this Agreement. No exemption shall be effective unless it is expressly received by Operator in writing from and signed by the City.
1. No exemption shall be granted for a period greater than six months from the date of its approval.
Any noncompliance with a material provision of this Agreement after the expiration of a granted exemption shall result in the immediate termination of this Agreement.
2. No exemption shall be considered or granted if it would violate any applicable legal or safety requirement.
C. The City may immediately terminate this Agreement if the City determines that criminal activity is occurring upon or at Operator’s property.
D. The City may immediately terminate this Agreement if Operator fails or refuses to comply with any term of this Agreement.
CONFLICTING CITY ORDINANCE OR WRITTEN POLICY PROVISION EXCEPTION If any provision of this Agreement directly conflicts with one or more provisions of a City ordinance or written policy regulating tow service, the ordinance or written policy shall control; provided, however, that all other provisions of this Agreement shall remain in full force and effect.
TERM OF AGREEMENT
The term of this Agreement shall be for a period of three years, commencing on the Effective Date, and expiring on that same date in 2029, unless earlier terminated as set forth herein.
OPERATOR APPROVAL
Operator certifies that it has read and understands this Agreement and agrees to abide by all of its provisions. Operator further agrees to indemnify, defend, and hold harmless the City and the City’s officers, agents, employees, agents, attorneys, and volunteers from any and all claims and losses accruing or resulting from Operator in connection with its performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm, or corporation who may be injured or damaged by acts or omissions of Operator, its employees, and agents in the performance of this Agreement. Operator’s duties and obligations under this section shall survive termination or expiration of this Agreement. In performing services under this Agreement, Operator, as well as its agents and employees, is acting in an independent capacity and not as an officer, employee, or agent of the City [Signatures begin on next page.]
IN WITNESS WHEREOF, the parties have approved and executed this Agreement as of the date first set forth above.
CITY:
CITY OF LANCASTER,
a California charter city and municipal corporation
By:
Name:
Its:
OPERATOR:
Velocity Towing and Recovery LLC,
a California Limited Liability Company
By:
Name:
ATTEST:
Its:
City Clerk
APPROVED AS TO FORM:
City Attorney
DEPARTMENT HEAD APPROVAL
Department Director