12 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
3.4 Re-Opener Clause - Fee Schedule
After the initial three (3) year term set forth in Sections 3.0 and 3.1, the Contractor may submit to the Chief of Police a request for an increase to the fee schedule set forth in Attachment A, seeking to adjust the fees consistent with the community standard for police towing in San Diego County. The request shall include a comparison of relevant fees in each law enforcement jurisdiction in San Diego County. City shall assist and consult with Contractor to provide Contractor with accurate data. The Chief of Police shall make appropriate comments, recommendations and submit the material for City Council consideration. The City Council, in its sole discretion, shall decide whether or not to adjust the fee schedule.
3.5 Re-Opener Clause – Administrative Review Fee
After the first twelve (12) consecutive month period of this Agreement, the City may review the number of Administrative Review hearing s held within a 30- day period to determine whether an adjustment is warranted. The Administrative Review Fee may be adjusted up or down based upon data.
IV. RESPONSE TIME, EXCEPTIONS AND PENALTY ASSESSMENT
4.0 Response Time
Response time is defined as the elapsed time between the relaying of the tow service request by the Dispatch Center or a City employee to the Contractor and the arrival of the specific tow truck type requested to fulfill the tow need on scene. (For example: NCPD Dispatch phones in a request for a low-profile truck to tow an evidence hold vehicle to the underground parking lot of NCPD. The response of a non low-profile tow truck which cannot accommodate towing the vehicle into the underground parking lot of NCPD does not qualify as fulfilling the Response Time requirement.) The Response Time for towing service shall not exceed twenty (20) minutes for tows inside the jurisdictional limits of City.
Due to the limited number of out -of-City jurisdiction towing service requests, response times shall be evaluated on an individual basis for towing service requests outside of the jurisdictional limits of City. Complaints or irregularities involving out-of-jurisdiction towing requests shall be managed between the Contract Administrators.
13 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
The Contractor is expected to dispatch immediately any available tow truck that will fulfill the tow need on scene upon receipt of a towing request.
The Contractor is expected to notify the National City Police Dispatch Center when the response time requirement cannot be met. The Police Dispatcher or the officer at the scene will have the discretion to cancel the tow if the response time cannot, or is not, met and re- dispatch to a secondary tow c ontractor, at no cost to City. “Secondary tow contractor” refers to the next tow company in rotation.
4.1 Response Time Computation
Response time is computed from the time the police dispatcher enters the request for a tow into the dispatch computer-aided dispatch (“CAD”) system and the Contractor arrives on scene. The on-scene investigating officer shall notify dispatch of the tow truck arrival. The police department CAD system shall be the final resolution of any actual time dispute regarding response times. Any failure to record relevant times by the on -duty dispatcher shall not be considered in any penalty assessment.
4.2 Response Time - Penalty
Failure to arrive at the requested location within the prescribed response time may result in cancellation of the service request. The secondary tow contractor may be notified.
4.3 Response Time - Penalty Assessment
The Contractor shall pay a five-hundred-dollar ($500.00) penalty if more than five percent (5%) of the tows in any calendar month period exceed the maximum response time requirement. This is calculated based on individual tow per any single request by the City for towing services and not average response times.
Failure to meet Response Time requirements may result in termination of this Agreement.
V. ON-CALL CONTRACTOR AND CONTRACTOR ROTATION SCHEDULE
5.0 Contractor On-Call & Rotation
The Contractor on-call rotation shall run, for two contractors, from 0001 hours on the first day of the month to midnight on the 15th day of the month for one contractor and from 0001 hours on the 15th day of the month to midnight on the last day of the month.
The Traffic Division Sergeant will do the selection for the on-call rotation at the beginning of each contract year. The Traffic Division Sergeant will select the c ontractor rotation by an impartial means agreeable to contractors involved. Should all contractors not meet an agreement as to means the Traffic Division Sergeant will make the selection, the means will be directed by the Chief of Police, and the Chief’s decision will be final.
Any contractor selected as the first in the rotation schedule at the beginning of a contract year will begin the first day of the contract.
14 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
It is understood that the number of contractors selected divided into the number of days per month may not result in each contractor having the same number of overall tow days per year.
In the event this Agreement is extended pursuant to S ection 3.2, Option to Renew, the schedule will continue to rotate as reflected.
VI. GENERAL DUTIES, REQUIREMENTS AND OBLIGATIONS
6.0 Business License
The Contractor shall at all times during the term of this Agreement retain a valid City Business License in compliance with National City Municipal Code Chapter 6.04.
Contractor businesses and storage lots located within the jurisdictional limits of the City of National City, if any, must conform to all City of National City building ordinances, zoning regulations, and land use requirements and must have the approval of the City Planning Department.
Contractor businesses and storage lots located outside the jurisdictional limits of the City of National City must conform to all city (if located within an incorporated city) or county (if located within an unincorporated county area) building ordinances, zoning regulations, and land use requirements within the jurisdiction of location.
6.1 Contractor Availability - Response to Service Requests The Contractor shall be available to promptly respond twenty-four (24) hours a day, seven (7) days a week, including all holidays, consistent with the On-Call and Rotation Schedule, for all requests initiated by City for towing services.
Upon award of Agreement, the Contractor shall operate a dispatching system.
The tow dispatching system shall be sufficiently staffed and equipped to accept all telephone calls, without delay, twenty-four (24) hours a day, seven (7) days a week.
Delay is defined as the City or the public receiving no answer after six (6) rings or busy signal to their telephone call. Contractors using paging systems are required to respond to a page within five (5) minutes of the initial page by the City.
The City does not currently have plans for adding automated tow dispatching to the existing NCPD dispatch system. Therefore, the City is not requiring any c ontractor to purchase equipment to be used to integrate into an automated tow dispatching system. It will be up to the Contractor to ensure they are able to meet the response time requirements of the Agreement by whatever means they deem appropriate.
Since there are no current plans to add automated tow dispatching to the existing NCPD dispatch system, there are no minimum requirements established for such a system upgrade at this time.
15 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
6.2 Contractor Towing Forfeited Vehicles
The Contractor shall tow all forfeited vehicles, as ordered by the City.
The Contractor shall not drive the forfeited vehicles except to move them within the storage facility. Use of vehicles for personal use or other use not permitted herein is strictly prohibited, and constitutes a material breach of this Agreement.
In the event it is found that a towed vehicle is subject to forfeiture, the City shall arrange for the vehicle to be picked up from the Contractor’s storage facility and the Contractor shall invoice the National City Police Department for all towing and storage fees.
6.3 Contractor Availability - Vehicle Release
The Contractor shall be available to release vehicles to their owners, agents or authorized representatives, twenty-four (24) hours a day, seven (7) days a week, including all holidays.
6.4 Business Office
The Contractor shall maintain a functional business office within the location of the yard used to store police-initiated tows.
6.5 Business Office Hours
The Contractor shall adequately staff their business office in order to remain open and available to meet the public during the normal business office hours. The business office of the Contractor shall be located within the storage yard for which a towed vehicle is located and be open to serve the public and the City from 0800 to 1800 hours, Monday through Friday, except for City-observed holidays. City-observed holidays are:
New Year ’s Day, Martin Luther King Day , Cesar Chavez Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and the Friday after, and Christmas Eve and Christmas Day.
6.6 Contractor’s Employees
All drivers must maintain a professional appearance. Staff shall work in a neat and clean uniform. The Contractor shall furnish staff with a shirt or some other type of outerwear bearing the company name and logo. Appropriate clothing will be worn at all times , including by employees that are being trained. All employees will conduct themselves in a professional manner when interacting with the public or City employees.
Within ten (10) days of award, Contractor shall provide the National City Police Department Traffic Division Sergeant with the names of all employees that will be assigned to provide services under the Agreement. Drivers and other employees associated with the processing and removal of vehicles shall be subject to a complete background investigation, which can be satisfied by Contractor providing the NCPD Traffic Division Sergeant with the results of a criminal background check from a Live Scan fingerprinting service certified by the State of California for all applicable employees of the Contractor. Such information will be kept confidential to the maximum extent allowed by law, and Contractor agrees to cooperate and provide additional information requested. In the event that the findings of the
16 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
background check indicate that the Contractor’s employee(s) criminal history or practice of doing business will endanger the public health, safety, or morals of the community, City may prohibit Contractor’s use of the affected employee(s) from providing services under this Agreement. If a sufficient number of Contractor’s employees are disqualified, City may elect to terminate this Agreement. Potentially disqualifying factors include, but are not limited to: misdemeanor or felony conviction in the past five (5) years involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of violence, a sexual offense, a drug -related offense, felony driving under the influence of drugs or alcohol, misdemeanor driving under the influence of drugs or alcohol, a crime of moral turpitude, or a crime involving the bidding, award or performance of a government contract. Additionally, evidence that an owner or manager of Contractor is operating any illegal business, or has an ownership interest in any illegal business, will be considered a disqualifying factor.
The Contractor will notify, within ten (10) days, National City Police Department Traffic Division Sergeant whenever an employee is terminated or a new employee is hired that is assigned to perform duties under the Agreement or may have access to vehicles impounded pursuant to police request.
The Contractor shall ensure that all tow truck drivers responding to calls initiated by the City are properly licensed, qualified and competent employees. The Contractor shall ensure all tow truck drivers are trained and proficient in the use of the tow truck and related equipment, including, but not limited to, the procedures necessary for the safe towing and recovery of ALL vehicles. All tow truck drivers shall possess the proper class license and certificates for towing vehicles, along with a Class ‘A’ endorsement to allow operation of special vehicle configurations and/or special cargos.
The Contractor’s employees shall be qualified to perform all work undertaken by or assigned to them. In the event a driver or the equipment is inadequate and the Contractor is unable to service the request, a charge for service or labor will not be permitted.
The Contractor shall have all tow truck drivers involved with NCPD’s rotation tow operations participate in a controlled substance and alcohol testing (“CSAT”) program. 1) Drivers requiring a Class A, Class B, or commercial Class C license (endorsed for hazardous materials transportation) shall participate in a CSAT program as defined in the Code of Federal Regulations, Title 49, Parts 40 and 382. 2) Those drivers that are not required to possess a Class A, Class B, or commercial Class C license shall be enrolled in a CSAT program substantially similar to the requirements as outlined in Section 1) above.
3) The Contractor shall ensure selection pools for commercially and non- commercially licensed drivers are maintained separately. The Contractor shall provide proof records of their CSAT programs to NCPD.
4) A driver possessing a non- commercial driver’s license who tests positive but subsequently returns with a negative test result shall meet the same reinstatement requirements as a driver required to possess a commercial driver’s license.
17 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
6.7 Signs
In compliance with California Civil Code Section 3070 (d)(2)(E), Contractor shall display inside the business office, in plain view at the cashier’s station, a sign. Said sign shall not be less than 17 by 22 inches in size, with lettering not less than one inch in height, disclosing all storage fees and charges in force, including the maximum daily storage rate. Posting of the City-approved fee schedule (Attachment A) in the appropriate size and lettering complies with California Civil Code Section 3070(d)(2)(E).
Additionally, the Contractor is required by California Vehicle Code Section 22850.3(b) to display in a conspicuous place a notice to the effect that a vehicle impounded at the direction of the Police Department may only be released upon proof of current registration.
Said notice must include the name and telephone number of the local police agency that caused the vehicles to be stored.
6.8 Method of Payment - Towing or Storage Charges (22651.1 CVC) Contractor shall comply with California Vehicle Code Section 22651.1 in providing services under this Agreement. At a minimum, the Contractor shall accept a valid bank credit card or cash for payment of towing and storage by the registered owner, legal owner, or the owner’s agent claiming the vehicle. Pursuant to California Civil Code Section 1748.1, Contractor shall not impose a surcharge on a cardholder who elects to use a credit card in lieu of cash for payment of any fees pursuant to this Agreement. In addition, Contractor shall have sufficient funds on the premises to accommodate and make change in a reasonable monetary transaction.
6.9 Storage of Vehicles; City, Seized
The Contractor shall immediately provide written notice to the National City Police Department Traffic Unit whenever a C ity vehicle or seized vehicle is stored in excess of forty-eight (48) hours. Failure to provide the required written notification to the City may result in forfeiture of Contractor’s right to storage fees.
The Contractor shall provide invoices to the National City Police Department Operations Assistant for the towing of each City -owned and each seized vehicle. The invoices shall include the description of the vehicle, the date, time, origin, and disposition of the towed vehicle, name and identification number of City employee authorizing the tow and/or storage, the mileage starting and finishing at destination, and an itemized cost of services provided (mileage, number of storage days) commensurate with the attached rate schedule.
Invoices shall be delivered to the National City Police Department Operations Assistant no later than the fifteenth (15th) of the month following services rendered. The City shall make payment for services rendered on a monthly basis from the month previous.
6.10 Removal from Private Property
Contractor shall comply with California Vehicle Code Section 22658 for tows from private property, including the limits on charges set forth in subsection (h) of that section .
Consistent with sub-section (i) (2), if a vehicle is released within 24 hours from the time the vehicle is brought into the storage facility, regardless of the calendar date, the storage charge shall be for only one day. Not more than one day’s storage charge may be
18 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
required for any vehicle released the same day that it is stored.
6.11 Notice to City - Private Property Impounds
In addition to the requirements set forth in California Vehicle Code Section 22658, the Contractor agrees to notify the National City Police Department of all vehicle impounds from private property within the jurisdictional limits of City that result in storage of the vehicle. Notice shall include, but not be limited to , a complete description of the vehicle, including the vehicle identification number, location of impound and name of property owner or agent who authorized the impound. Notice shall occur within one hour of taking possession of the vehicle. Generally, private property impounds are considered On- Demand Tows.
6.12 Gratuities (12110 CVC)
Contractor shall comply with California Vehicle Code Section 12110 in providing services under this Agreement. The Contractor or Contractor’s employees shall not offer or provide City, and no City employee shall accept, any direct or indirect commission, reduced fee, gift, recreation, favors, seasonal gratuity, or any compensation whatsoever from the Contractor. No City employee shall offer or provide the Contractor with any gift, recreation, favor, seasonal gratuity, or any compensation whatsoever. No City employee is permitted to purchase a lien sold vehicle from the Contractor that resulted from a police initiated tow or referral tow. City employees shall not purchase any vehicle or vehicle part from the Contractor for a reduced fee or a fee below the prevailing rate as determined by industry standards. The intent of this section is to avoid the mere appearance of impropriety involving the contractual relationship.
The Contractor, or the Contractor’s employees, are prohibited from accepting any money or anything of value from a repair shop for delivery or the arranging of a delivery of a vehicle for the purpose of storage or repair. Nothing in this section is intended to preclude the Contractor from charging a repair shop appropriate towing fees pursuant to the fee schedule (Attachment A).
No benefit provided to City by the Contractor, or benefit provided to the Contractor by the City, as defined in the terms and conditions of this Agreement , that resulted from the process of negotiations, shall be considered a gift or gratuity within the meaning of this section.
6.13 Tow Truck Driver - On-Scene Duties
Upon arriving on-scene of a police-initiated tow, the Contractor’s employee shall report to the investigating peace officer in charge. The officer- in-charge shall make every reasonable effort to inform the Contractor’s employee of any unusual circumstance or hazardous condition reasonably known to the officer. The Contractor’s employee shall make every reasonable effort to inform the officer-in-charge of any unusual circumstance or hazardous condition undetected by the officer-in-charge. The officer-in-charge may request additional towing services from the Contractor’s employee and the officer- in- charge shall have the authority to waive the Response Time requirements for additional services based on the on-scene needs. The Contractor’s employee shall make every
19 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
reasonable effort to comply with instructions or directions provided by the officer- in- charge. The Contractor’s employee may make any emergency alterations reasonably required to safely move and/or impound vehicles.
The Contractor shall be responsible for removing and appropriately disposing of collision related debris from the public right- of-way to ensure public safety. The Contractor shall also remove or render inert any liquid debris that may reasonably be considered a safety hazard to the public -right-of-way. If the removal of any type of debris or hazardous material is beyond the capability of the Contractor, the Contractor’s employee shall inform the officer-in-charge so accommodations can be made.
6.14 Access to Stored Vehicles
During regular business hours, the Contractor shall make vehicles stored at the request of the City available to that vehicle’s registered owner, a person who can be verified to be the registered owner’s agent, insurance agents, insurance adjusters, or representatives of automotive repair businesses for the purpose of estimating or appraising damages.
6.15 Access to Stored Vehicles – Removal of Private Property Pursuant to California Vehicle Code Section 22851(b), no lien shall attach to any personal property in or on the vehicle. The personal property in or on the vehicle shall be given to the current registered owner or the owner’s authorized agent upon demand. The lien holder shall not be responsible for personal property after any vehicle has been disposed of pursuant to Division 11, Chapter 10 of the California Vehicle Code.
Pursuant to California Civil Code Section 3068.1, the lien is deemed to arise on the date of possession of the vehicle. Possession is deemed to arise when the vehicle is removed and is in transit, or when vehicle recovery operations or load salvage operations have begun.
6.16 Access to Evidentiary Vehicles
Vehicles impounded by the City for investigative purposes pursuant to California Vehicle Code Sections 22655 or 22655.5 shall be held in maximally secured, nonpublic areas of the Contractor’s property, until the vehicle is released by order of the City or in conformance with Article 8 of this Agreement.
No person other than a police officer, reserve police officer, field evidence technician, property & evidence unit employee or crime scene specialist employed by the City shall remove any property or other contents from evidentiary vehicles. Property removed from such vehicles shall be recorded as removed on the content inventory and the content inventory dated and signed by the police officer, reserve police officer, field evidence technician, property & evidence unit employee or crime scene specialist removing the property and by a representative of the Contractor.
6.17 Invoices
All invoices for towing and impounds pursuant to this Agreement shall clearly and individually itemize each and every specific charge or fee type. Daily storage fees shall be itemized on a per day basis, for example: 10 days storage at $__ per day. All itemized City fees of all types shall be documented on the invoice. The customer shall be provided
20 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
no less than one copy of the invoice, after all fees have been paid and the invoice marked “Paid.”
6.18 Vehicle Impound Control Form (PD Form 250)
A Vehicle Impound Control Card (PD Form 250) shall be completed when a police hold is placed on a towed vehicle. The impounding officer shall obtain a case number and enter the case number on the control card before giving the tow truck driver a copy of the control card.
The Contractor shall not be liable for uncollected City Administrative Review Fees when the Vehicle Impound Control Card (PD Form 250) is not properly completed by the impounding officer. The PD Form 250 shall contain the lawful authority to impound pursuant to the California Vehicle Code. However, the impounding officer may elect to use the words “Admin Fee Applies” listed in the OTHER section of the form.
6.19 Proceeds from Lien Sale
In conformance with California Civil Code Section 3073 and California Vehicle Code Section 22850.5, the proceeds from the lien sale of any vehicle impounded pursuant to the Negligent Vehicle Impound Release (NVIR) program or the Administrative Review Fee shall be distributed in the following order:
1. Any and all costs necessary to discharge the lien, including but not limited to impound and storage fees, and the costs of processing the vehicle for lien sale shall be paid to the lien holder (Contractor).
2. Any and all City administrative fees, including individual fees or any partial fees associated with the Administrative Review and/or NVIR programs, shall be paid to the City. Any partial fees recovered by the City, resulting from the lien sale, shall first be attributed to the Administrative Review program.
3. The balance, if any, shall be forwarded to the California Department of Motor Vehicles for deposit in the Motor Vehicle Account in the State Transportation Fund.
VII. FEES
7.0 Fee Schedule
Attachment A to this Agreement provides a complete schedule of all charges and fees the Contractor will be authorized to collect from consumers for towing, impound, and storage services rendered on behalf of City. The Attachment A rate schedule shall remain in place unless and until amended by the City Council of the City of National City, pursuant to section 3.5 Re-Opener - Fee Schedule, of this Agreement.
The schedule of rates charged by the operator shall be available in the tow truck, and shall be presented upon demand to person(s) for whom the tow services were provided, or his/her agent, or any representative of the City at the scene.
7.1 Secondary Tow Fees
Secondary towing fees are the responsibility of the vehicle owner, operator or agent. If it
21 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
is determined that the City is liable for the secondary tow fees, the Contractor shall charge the City 50% of the Basic Tow Fee for Secondary Tows, if applicable.
No storage fees shall accrue while the subject vehicle is in the actual possession of the National City Police Department. Police personnel shall not release a vehicle from the National City Police Department until all the Contractor fees have been paid to the Contractor by the vehicle owner, operator or agent. In the event a vehicle is released from the police department and the Contractor fees were not paid, the City shall be liable for the full fee.
7.2 City Vehicle Tow Fees
The Contractor agrees not to charge the City a fee for the towing of marked or unmarked City police vehicles within the jurisdictional limits of National City.
The Contractor shall provide the C ity five (5) free tows per quarter and then charge 25% of the Basic Tow Fee for the towing of all other City vehicles (non-police vehicles) within the jurisdictional limits of National City.
Fees for all City vehicle tows, including police vehicles, which occur outside the jurisdictional limits of National City shall be resolved between the Contract Administrators, but shall not exceed 25% of the Basic Tow Fee.
7.3 Fees - Police Department Errors and Omissions
When any vehicle has been directed by the City to be towed and it is established that the tow was in error through a mistake of fact, Contractor shall release the vehicle to its owner, operator or agent at no cost. The Contractor shall bill the City at no more than 50% of the basic tow fee.
If an error by the City results in a vehicle being stored longer than it can reasonably be established that it should have been, the Contractor shall release the vehicle and bill the owner, operator or agent only those storage charges that would have accrued if no error had occurred. The Contractor shall bill the City storage fees at no more than $2.50 per day for every day beyond the owner, operator or agent’s responsibility.
If the error in towing or storage is discovered after the vehicle owner, operator or agent recovers the vehicle and all fees have been paid to the Contractor, the owner, operator, or agent may be referred to the City Clerk, City of National City to file a claim for damages against City.
7.4 Towing Program Fee
The total annual Towing Program Fee due to the City shall be one hundred fifty thousand three hundred twenty-eight dollars ($150,328), divided equally amongst the tow operators awarded contracts, and paid quarterly. The Contractor shall make quarterly Towing Program Fee payments to the City for the right to provide towing and storage service to the City. The minimum Towing Program Fee payment amount per the Contractor, when two contractors have been awarded, shall be thirty -seven thousand five hundred eighty- two dollars ($37,582) per quarter. The Towing Program Fee shall be payable for a period of
22 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
three (3) years subject to adjustments as defined in Section 3. 3 - Re-Opener Clause – Towing Program Fee. The Towing Program fee shall continue in the above-described manner in the event of Agreement extension renewal.
7.5 Towing Program Fee - Due Date
The Towing Program Fee payment shall be due and payable no later than the fifteenth (15th) day of the calendar month following the end of each quarter, pursuant to the following schedule:
First Contract Year; Quarter End Dates
1st Quarter – January 15, 2027
2nd Quarter – April 15, 2027
3rd Quarter – July 15, 2027
4th Quarter – October 15, 2027
Second Contract Year; Quarter End Dates
1st Quarter – January 15, 2028
2nd Quarter – April 15, 2028
3rd Quarter – July 15, 2028
4th Quarter – October 15, 2028
Third Contract Year; Quarter End Dates
1st Quarter – January 15, 2029
2nd Quarter – April 15, 2029
3rd Quarter – July 15, 2029
4th Quarter – October 15, 2029
7.6 Towing Program Fee - Late Fee
Any amount owed to the City more than fifteen (15) calendar days beyond the due date shall be considered delinquent and will be in breach of contract. Failure to pay any amount owed to the City may result in the Contractor being suspended from the Agreement until such amount is paid. Interest will be charged on unpaid amounts at an annual rate equal to twelve percent (12%) per annum, or at the maximum rate permitted by applicable law, whichever is lower. Partial payments will not be accepted.
7.7 Towing Program Fee - Payments
The Towing Program Fee is payable by electronic transfer (ACH) deposit to the “City of National City Finance Department.” ACH payments shall be directed as follows:
Finance Department
23 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
National City Police Department
1243 National City Blvd National
City, CA 91950
Copies of all ACH deposits shall also be sent to the Traffic Office Coordinator at the National City Police Department via email to [email protected] . Upon receipt and no later than five (5) days from receipt, the Traffic Office Coordinator shall record and account for the Towing Program Fee payment consistent with the terms of this Agreement.
7.8 Negligent Vehicle Impound Release (NVIR) Fee
The Negligent Vehicle Impound Release Fee shall be an amount established by City. Said fee is one hundred twenty-four ($124) dollars. The NVIR fee is recognized as a necessary and effective method of generating those revenues necessary to offset program costs, services and facilities. The NVIR fee applies only to vehicles released by the Contractor for violating certain sections of the California Vehicle Code (CVC) and/or the National City Municipal Code (NCMC). See Attachment B for a list of applicable sections.
7.9 NVIR Fee - Collection
The Contractor shall collect the NVIR fee of one hundred twenty-four ($124) dollars per vehicle upon the release of any vehicle impounded pursuant to the above listed California Vehicle Code sections. Contractor shall remit the collected fees via ACH deposit to the City pursuant to the below listed payment schedule. The collected NVIR fees shall be properly identified and itemized.
7.10 NVIR Fee - Payment Due Date
The Towing Program Fee is payable by electronic transfer (ACH) deposit to the “City of National City Finance Department.” ACH payments shall be directed as follows:
Finance Department
National City Police Department
1243 National City Blvd National
City, CA 91950
The NVIR fees collected by the Contractor shall be due and payable to the City via electronic transfer (ACH) deposit no later than the fifth (5th) day of each month and the twentieth (20th) day of each month.
Payments due on the fifth (5th) day of each month shall include and account for all vehicles released by the Contractor between the sixteenth (16th) day of the month, and the last day of the month, inclusive.
Payments due on the twentieth (20 th) day of the month shall include and account for all vehicles released by the Contractor between the first (1st) day of the month and the fifteenth (15th) day of the month, inclusive.
7.11 NVIR Fee -Payments
The NVIR Fee is payable via electronic deposit (ACH) to “City of National City Finance
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City of National City
and Tony’s Auto Center Inc.
Department.” Copies of all ACH deposits shall be forwarded to:
Traffic Office Coordinator ([email protected]) National City Police Department
1200 National City Blvd National
City, CA 91950
Upon receipt and no later than five (5) days from receipt, the Traffic Office Coordinator shall record and account for the NVIR Fee payment, consistent with the terms of this Agreement.
7.12 NVIR Fee Payment - Late Fee
Any amount owed to the City more than fifteen (15) calendar days beyond the due date shall be considered delinquent and will be in breach of contract. Failure to pay any amount owed to the City may result in the Contractor being suspended from the Agreement until such amount is paid. Interest will be charged on unpaid amounts at the maximum rate permitted by law. Partial payments will not be accepted.
7.13 Administrative Review Fee
The Administrative Review fee shall be an amount established by the City. Said fee is one hundred fifty ($150) dollars. The Administrative Review fee is recognized as a necessary and effective method of generating revenues necessary to offset program costs, services and facilities. Vehicles impounded by the City, pursuant to California Vehicle Code 12500(a) and 14601.1, shall be released by the City upon expiration of a thirty (30) day hold and shall only be released by the City upon a showing of proof that the owner, operator or agent has a valid driver’s license.
The Contractor shall collect Administrative Review fees prior to the actual release of the vehicle. The Contractor shall remit the collected fees to the City pursuant to the below listed payment schedule. The Administrative Review fees shall be properly identified and itemized. The Administrative Review fee applies only to vehicles impounded pursuant to certain California Vehicle Code Sections. (See Attachment C for a list of applicable sections.)
7.14 Administrative Review Fees - Due Date
The fees collected by the Contractor shall be due and payable to the City via electronic transfer (ACH) deposit no later than the fifth (5th) day of each month and the twentieth (20th) day of each month.
Payments due on the fifth (5th) day of each month shall include and account for all vehicles released by the Contractor between the sixteenth (16th) day of the month, and the last day of the month, inclusive.
Payments due on the twentieth (20 th) day of the month shall include and account for all vehicles released by Contractor between the first (1 st) day of the month and the fifteenth (15th) day of the month, inclusive.
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City of National City
and Tony’s Auto Center Inc.
7.15 Administrative Review Fee -Payment
The Administrative Review fee is payable via electronic deposit (ACH) to “City of National City Finance Department.” Copies of all ACH deposits shall be forwarded to:
Traffic Office Coordinator ([email protected]) National City Police Department
1200 National City Blvd National
City, CA 91950
Upon receipt, and no later than five (5) days from receipt, the Traffic Office Coordinator shall record and account for the Administrative Review fees consistent with the terms of this Agreement. The Administrative Review fee of one-hundred fifty ($150) dollars per vehicle shall be divided and deposited with the City Finance Department as directed by the Finance Department.
7.16 Administrative Review Late Fee
Any amount owed to the City more than fifteen (15) calendar days beyond the due date shall be considered delinquent and will be in breach of contract. Failure to pay any amount owed to the City may result in the Contractor being suspended from the Agreement until such amount is paid. Interest will be charged on unpaid amounts at an annual rate equal to twelve percent (12%) per annum, or at the maximum rate permitted by applicable law, whichever is lower. Partial payments will not be accepted.
VIII. VEHICLE RELEASE
8.0 General Rule - Vehicle Release
As a general rule, the Contractor shall be responsible for the release of all vehicles in the Contractor’s possession as a result of police initiated or referral tows.
8.1 Exceptions to General Rule
Vehicles impounded pursuant to the following California Vehicle Code Sections shall not be released by the Contractor. The Contractor shall refer the vehicle owner, operator or agent to the police department to obtain a release:
1. 14602.6 – Suspended Driver’s License
2. 22651 (i) - Five or more Parking Citations
3. 22655 - Hit & Run Investigation
4. 22655.5 - Evidentiary Reasons
5. And as otherwise required by the California Vehicle Code
8.2 Hit & Run Investigation - Mandatory Release 22655(b) CVC Any vehicle impounded for hit & run investigation ( California Vehicle Code Sections 20002 thru 20006), pursuant to the authority of California Vehicle Code Section 22655, shall be released within 48 hours after removal from highway or private property. When determining the 48-hour period, weekends, and holidays shall not be included. Any vehicle
26 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
not released by the City within the maximum 48 -hour period, shall be released by the Contractor upon demand of the vehicle owner, operator or agent upon the expiration of the 48- hour period, regardless of the City hold status.
8.3 Questions, Problems, or Controversy Associated with Vehicle Release In the event the Contractor experiences problems, questions or controversy associated with a customer demanding the release of a police initiated or referral tow, the Contractor shall notify the police department. Additionally, if the Contractor discovers a questionable DMV document, an officer shall be dispatched to resolve the problem.
8.4 Expert Training - DMV Document Identification
During the term of this Agreement and at the Contractor’s request, the City may provide the Contractor, the Contractor’s employees, and new employees with training in the identification and recognition of all relevant California Department of Motor Vehicles documents including, but not limited to, California Driver Licenses and California Vehicle Registration documents. A recognized expert employed by the California Department of Motor Vehicles shall conduct training. Training shall include, but not be limited to, recognition and identification of counterfeit, altered, or forged California Driver’s License and California Registration and Title Certificates. The Contract Administrators shall coordinate date, time and location of training.
IX. MINIMUM TRUCK EQUIPMENT AND STORAGE LOT REQUIREMENTS At all times during the term of this Agreement, the Contractor shall meet the following minimum tow truck equipment requirements and storage lot requirements:
9.0 Minimum Tow Truck Requirements
During the term of this Agreement, the Contractor shall have available no less than three (3) tow rigs of at least one -ton capacity. Each tow rig shall have dual rear wheels. Each vehicle used for towing police impounds shall have a manufacturer’s gross vehicle weight rating (GVWR) of not less than 14,500 pounds. During the term of this Agreement, the Contractor shall have a tow rig capable of towing large, oversize vehicles, including Class B (minimum 26,001 GVWR), Class C (minimum 48,000 GVWR), and Class D (minimum 52,000 GVWR). During the term of this Agreement, the Contractor shall have a truck with Landoll type trailers acceptable for Class C and Class D towing.
In addition, during the term of this Agreement, the Contractor shall have available one (1) tow rig, commonly known as a “Sub- Garage Tow Vehicle,” capable of entering and removing impounded vehicles from the underground parking garage of the National City Police Department. The sub-garage tow vehicle is a limited use vehicle and does not require dual wheels or a GVWR of 14,500 pounds. The Contractor shall have a vehicle capable of towing/recovery from off road areas.
9.1 Minimum Tow Truck Equipment Requirements
Each tow truck responding to requests for police initiated towing and impound services shall be equipped with radio communications equipment capable of effecting two- way radio communications between the tow truck operator and Contractor’s dispatching
27 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
operation. Citizen Band radios shall not be used to meet this requirement.
Each tow truck shall have a maximum 8,000-pound capacity winch that is power driven by power takeoff from transmission, in both directions, and equipped with safety dogs or an adequate braking system. Winches must be fitted with a minimum of 100 feet of cable for recovery tasks. Roll back car carriers must be fitted with a minimum of fifty (50 ) feet of cable. All cable (wire rope) must be maintained in good condition. Only wire rope with swaged ends, wedge locks or braided ends, with metal sleeves in the loops shall be approved for use under the terms of this A greement. Consistent with the California Code of Regulations, Title 13, Section 1305(b), wire rope is not in good condition when it is stranded, knotted, crushed, excessively rusted, kinked, badly worn, when there are twelve (12) or more wires broken in lay length, or where there is other visible evidence of loss of strength.
The Contractor shall maintain dollies for use by in -service tow trucks providing police towing services to the City. Each tow truck, with the exception of slide back carriers, shall carry its own set of dollies.
Each tow truck shall be equipped with no less than two (2) safety chains. No less than two (2) safety chains shall be used for each vehicle being towed. Each safety chain shall be rated at no less than the rating specified by the original equipment manufacturer (OEM).
The safety chains shall be securely affixed to the bed frame or wrecker boom, independent of the towing sling, bar, hitch, wheel lift, or under lift towing equipment. The towed vehicle shall be secured to the towing equipment independent of the safety chains by either two (2) chains or two (2) straps. All safety connections and attachments shall have a positive means, of sufficient strength, to ensure that the safety connection or attachment cannot become disengaged while in transit. Vehicles being transported on slide back carriers shall be secured by four (4) tie down chains or straps, independent of the winch or loading cable.
In addition to the requirements set forth in California Vehicle Code Section 27700, the City requires the Contractor to equip each tow truck with red flares, lanterns or reflectors, hand tools (screw drivers, pliers, ratchet and sockets, crescent wrenches, metric and standard lug wrenches), bolt cutters, six foot crowbar, rope, broom, shovel, dustpan, fire extinguisher (dry chemical or carbon dioxide type), utility flood lamps, portable red taillights and stoplights for towed vehicles, equipment for opening locked vehicles, safety snubber chains, and a trash can with absorbent material.
Each tow truck shall be equipped with disposable (one time use) latex or rubber gloves for use by the Contractor’s employees to prevent contamination or contact with potential blood borne pathogens. The decision to use said equipment rests solely with the Contractor.
9.2 Tow Truck Identification
Each tow truck responding to police initiated towing and impound services shall, on both sides of the vehicle, conspicuously bear the Contractor’s company name, local address, and local phone number(s) in lettering that complies with California Vehicle Code Section 27907.
28 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
9.3 Tow Truck Lighting Equipment
Each tow truck responding to police initiated towing and impound services shall be equipped with lighting systems as required by California Vehicle Code Sections 24605, 24606 and 25253. Additionally, tow trucks shall be equipped with utility lamp lighting systems than comply with California Vehicle Code Section 25110.
9.4 California Highway Patrol Inspection Certification
During each year of this Agreement, the Contractor shall obtain and retain an annual California Highway Patrol (“ CHP”) tow truck safety inspection certification. The Contractor shall annually be able to show proof that every vehicle in each category required for service under this Agreement providing services to the City has passed a CHP tow truck safety inspection. Tow trucks not passing inspections or meeting the requirements of this section shall immediately be removed from rotation. The tow truck may return to rotation once the truck has successfully passed a re-inspection by the original inspecting agency.
Nothing in this section is intended to prevent, or preclude the National City Police Department from performing periodic unscheduled inspections to ensure compliance with the requirements of the California Vehicle Code and this Agreement.
9.5 Tow Truck Maintenance
Each tow truck responding to police initiated towing and impound services shall be well maintained and reasonably clean on the exterior and interior and should reflect the clean, professional image of the City of National City.
9.6 Storage Lot, Minimum Requirements
There shall be a minimum of one (1) vehicle storage yard within a ten (10) mile radius from City Hall, 1243 National City Boulevard, National City, with adequate storage capabilities for all vehicles retrieved from the City and requiring storage. The Contractor shall identify the exact location and size of any storage yards to be used pursuant to this Agreement.
The storage yard shall be a minimum of 10,000 sq. ft. and have space necessary to accommodate all Police Department tows and comply with all applicable Building Codes and zoning regulations (including but not limited to: Fire, Sign, Zoning, and Building Codes). There shall also be the following:
1. Be completely enclosed by an 8-foot solid high fence with a lockable gate.
Construction of the fence and gates must be of sufficient construction to prevent entry into the storage area of unauthorized persons or vehicles.
2. Alarms and intrusion sensors that provide immediate notification capabilities at all times or similar devices or security measures.
3. Sufficient lighting to detect unauthorized entrance at night.
4. The storage yard shall be served by drainage facilities adequate to prevent
29 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
the accumulation of standing water. The vehicle storage area must remain free of mud, pools of standing water, debris, or other elements that would be harmful to the stored vehicle, vehicle contents, or to persons viewing, inspecting or recovering the vehicles.
The vehicle storage area, including all driveways and access roads, shall be surfaced in a manner so as to prevent the listed conditions. An acceptable surface includes concrete, asphalt, asphaltic concrete, or decomposed granite with oil.
5. All areas open to vehicular traffic shall be paved with cement, asphalt surfacing or oil and aggregate mixture.
6. The entire site is to be continuously maintained to prevent accumulation of trash, combustible waste, and hazardous debris.
7. The storage yard must be a reasonable distance from public transportation.
8. Stored vehicles shall be arranged to provide reasonable and immediate inspection at any time by the City’s agents.
The Contractor shall provide service to the public twenty -four (24) hours a day, seven (7) days a week so that an owner may pay towing and storage fees at the s torage yard where their vehicle is stored and obtain its release.
The Contractor is responsible for the reasonable care, custody, security, and control of any property contained in towed or stored vehicles. All items removed from a vehicle or left stored within the vehicle shall be released to the owner or agent of the impounded vehicle upon demand during normal business hours unless the vehicle is under law enforcement hold.
Vehicles may not be taken off-site of the storage yard without the City’s permission.
9.7 Minimum Lighting Requirements - Storage Lot
There must be adequate lighting, and all yard and office construction must comply with applicable building codes, fire codes, and zoning regulations. The minimum lighting requirements per ten thousand (10,000) square feet are in effect unless zoning or other local regulations dictate increased or diminished lighting requirements:
1. Four (4) 300-Watt incandescent medium-wide flood lights, or
2. Three (3) 300-Watt quartz halogen lights, or
3. Two (2) 100-Watt high-pressure sodium lights.
9.8 Vehicle Examination Area
The Contractor will set aside an area of sufficient size to place a standard sized passenger sedan and have a minimum of forty- eight (48”) inches from each side, the front, and rear of the vehicle for the purpose of inspecting the vehicle. This examination area must be flat, level, and paved with concrete, asphalt or asphaltic-concrete, or other suitable all-weather surfaces.
30 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
9.9 Secure Area - Evidentiary Vehicles
Vehicles impounded by the City for investigative purposes shall be held in a maximally secured, non- public area of the Contractor’s property until released by the City. The Contractor shall ensure, by the use of various security devices and measures, including but not limited to walls, fences, containers, buildings or the like, that no unauthorized person, whether intentionally or accidentally can come into physical contact with evidentiary vehicles. Located within the storage yard, the Contractor shall set aside a secure area, sufficient in size to hold four (4) vehicles, with sufficient room to walk around, open doors, and examine each separate vehicle.
9.10 Special Operations
During the Agreement term, it is anticipated that numerous special police operations may be conducted that require the towing of vehicles. An example of this type of operation is a Sobriety/Driver’s License checkpoint. The Police Department will attempt to equally distribute these special operations between the contractors. However, many of these operations have special date or period requirements beyond the control of the Police Department. Due to these special requirements, a c ontractor may obtain more operations than the other contractor(s). The Contractor agrees to this potentially inequitable distribution of special operations as a City contractor.
X. INSURANCE REQUIREMENTS
10.0 Minimum Insurance Requirements
All required insurance shall be submitted to the City prior to the granting of the provisional award. Failure to provide the insurance certificates as previously set out shall cause the bid to be rejected as non-responsive. The Contractor shall maintain insurance in full force and effect during the entire period of performance under this Agreement. Failure to do so shall be cause for immediate termination of the Agreement.
All policies must have a thirty (30) day cancellation clause, giving the City thirty (30) days prior written notice in the event a policy is cancelled.
At the end of each contract year, the City reserves the right to review insurance requirements and to require more or less coverage, depending upon assessment of the risk, the Contractor’s past experience, and the availability and affordability of increased liability insurance coverage.
Insurance shall be written with only insurers authorized to conduct business in California which hold a current policy holder’s alphabetic and financial size category rating of not less than A: VII according to the current Best’s Key Rating Guide, or a com pany of equal financial stability that the City’s Risk Manager approves. In the event coverage is provided by non-admitted “surplus lines” carriers, they must be included on the most recent List of Approved Surplus Line Insurers (“LASLI”) and otherwise meet rating requirements.
All policies must be endorsed to provide that the insurance afforded by the Contractor is primary to any insurance or self-insurance maintained by the City and its elected officials, officers, employees, agents, and representatives as respects operations of the Named
31 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
Insured. Any insurance or self -insurance maintained by City and its elected officials, officers, employees, agents, and representatives shall be in excess of the Contractor’s insurance and shall not contribute to it.
The following coverage is required:
Commercial General Liability Insurance, with minimum limits of either $2,000,000 per occurrence and $4,000,000 aggregate, covering all bodily injury and property damage arising out of its operations, work, or performance under this Agreement. The policy shall name the City and its officers, agents, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided. The general aggregate limit must apply solely to this “project” or “location.” The “project” or “location” should be noted with specificity on an endorsement that shall be incorporated into the policy.
Automobile Liability for a minimum of two million dollars combined single limit ($2,000,000.00 CSL) per person and four million dollars ($4,000,000.00) per accident. The City of National City must be named as an additional insured on the certificate.
Garage Keepers for a minimum of one million dollars each occurrence ($1,000,000.00 EO).
On Hook/Cargo in amounts not less than fifty thousand dollars ($50,000.00) / twenty thousand dollars ($20,000.00) /one hundred thousand dollars ($100,000.00), the maximum deductible shall be no more than two thousand five hundred dollars ($2,500.00).
Workers’ compensation insurance in an amount sufficient to meet statutory requirements covering all of the Contractor’s employees and employers’ liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the City. Said endorsement shall be provided prior to commencement of work under this Agreement.
The City does not require a performance bond.
If required insurance coverage is provided on a ‘claims made’ rather than ‘occurrence’ form, the contractor shall maintain such insurance coverage for three (3) years after expiration of the term (and any extensions) of the Agreement. In addition, the “retro” date must be on or before the date of this Agreement
Any aggregate insurance limits must apply solely to the Agreement.
The Certificate Holder for all policies of insurance required by this Agreement shall be:
City of National City
c/o Risk Manager
1243 National City Boulevard
National City, CA. 91950-4397
If the Contractor maintains broader coverage or higher limits (or both) than the minimum limits shown above, the City shall be entitled to the broader coverage or higher limits (or both) maintained by the Contractor. Any available insurance proceeds in exc ess of the
32 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
specified minimum limits of insurance and coverage shall be available to the City.
This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with, and approved by the City’s Risk Manager.
XI. CONSTRUCTION OF AGREEMENT
The parties acknowledge and agree that (1) each party is of equal bargaining strength; (2) each party has actively participated in the drafting, preparation and negotiation of this Agreement; (3) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement; (4) each party and such party’s counsel and advisors have reviewed this Agreement; (5) each party has agreed to enter into this Agreement following such review and the rendering of such advice; and (6) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any attachments, or any amendments hereto.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written.
33 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
CITY OF NATIONAL CITY
By:
Ron Morrison, Mayor
APPROVED AS TO FORM:
TONY’S AUTO CENTER INC.
By:
Sanar Q. Abed, President
By:
Anthony A. Charlton Jr, Vice
President
Heidi Skinner, City
Attorney
34 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
ATTACHMENT A
TOWING FEE SCHEDULE
• BASIC TOWING
SERVICE FEE
Includes first hour hookup, labor, standby time, for vehicles under 9,500 GVW (unloaded).
• MEDIUM SIZE - BASIC TOWING
Includes first hour hookup, labor, standby time, for vehicles over 9,500 GVW but less than 22,000 GVW (unloaded).
• LARGE SIZE - BASIC TOWING
Includes first hour hookup, labor, standby time, for vehicles over 22,000 GVW (Unloaded).
• ON-SCENE OR STAND-BY
Labor = Each 15-minute increment, beyond first hour is charged only when extra ordinary labor must be expended to recover a vehicle.
Stand-by is charged when the job cannot be started and must be explained on the tow bill.
• DOLLIES
Will only be used when there is not a less expensive, safe manner of handling the situation.
• DRY RUN
May also be known as a “hook-up – drop fee” and is charged when the vehicle is hooked up and the owner returns before the vehicle is in transit.
• PER MILE TOWING
Applies only to vehicles recovered outside the jurisdiction of the City of National City.
• MAXIMUM STORAGE - PER DAY
Per day is defined as a 24-hour period.
• STORAGE PER HOUR
Up to maximum of $50.00 per day.
• AFTER HOURS VEHICLE RELEASE
After 6 p.m. and before 8 a.m., including weekends and all holidays. • NOTIFICATION OF LIEN SALE
Vehicle valued at less than $4.000 (22851.12 CVC).
$200
$220
$240
$40
$55
$0
$5
$50
$5
$70
$70
35 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
• NOTIFICATION OF LIEN SALE
Vehicle valued at over $4,000. (22851.12 CVC).
• POLICE EQUIPMENT TOWING
Inside jurisdictional limits of National City.
• CITY EQUIPMENT TOWING
Five (5) free tows per quarter, then 25% of the basic towing fee, includes all City vehicles. Also includes police vehicles towed from outside jurisdictional limits of National City.
$100
No Charge
25%
Basic
Towing
Fee
• EVIDENTIARY TOWING AND STORAGE
Daily storage fees for City/vehicles, seized vehicles, and vehicles for 25% of daily basic evidentiary purposes (for the first 6 months). Storage fee No additional charges after 6 months
25% of Basic
Towing Fee
______________________________________________________________________________________ • TOWING OF VICTIMS VEHICLES $60.00
_______________________________________________________________________________
CITY ADMINISTRATIVE FEES
• NEGLIGENT VEHICLE IMPOUND RELEASE $124.00
• SERIOUS TRAFFIC OFFENDER PROGRAM $150.00
36 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
ATTACHMENT B
Pursuant to Section 7.9 of this Agreement, the Negligent Vehicle Impound Release Fee shall apply to vehicles impounded pursuant to the following California Vehicle Code sections and/or National City Municipal Code sections. One or more the listed sections must be included on the impounding documents.
California Vehicle Code
22500 et seq. Prohibited Stopping, Standing, or Parking 22500.1 Prohibited Stopping, Standing, or Parking: Fire Lane 22651 (a) Unattended on Bridge
22651 (b) Hazard to flow of traffic
22651 (d) Blocking a driveway
22651 (e) Blocking fire hydrant access
22651 (h) Operator taken into custody - not practical to park or lock 22651 (i) Unpaid parking citations
22651 (j) Illegally parked and no evidence of registration displayed 22651 (k) Parking over 72 hours
22651 (1) Temporary tow away signs for street repair
22651 (m) Highway authorization for other use, with 24-hour notice 22651 (n) No parking tow away signs posted
22651 (o) (1) Expired registration in excess of six months 22651 (p) Unlicensed or suspended/ revoked license in violation of 12500, 14601, 14601.1, 14601.2, 14601.3, 14601.4, 14601.5, or 14604. 22651 (r) Illegally parked, blocking a legally parked vehicle 22652 Illegally parked in designated handicapped parking space 22653 (c) Removal from private property, at request of property owner, when operator is taken into custody
22655 (a) Hit & Run suspect vehicle
22656 Illegally parked or abandoned within 7-1/2 feet of nearest railroad rail 22669 et seq. Removal of Abandoned Vehicles as determined pursuant to section 22523 CVC
37 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
National City Municipal Code
11.32.060 Illegally parked - 72 hour violation - vehicle removal
11.32.070 Illegally parked - Restricted hours - vehicle removal
11.32.160 Illegally parked - Emergency parking - vehicle removal
11.32.250 (e) Illegally parked - Taxi Stand - vehicle removal
38 Contract for Towing & Impound Services
Oct 1, 2026 –Sept 30, 2029
City of National City
and Tony’s Auto Center Inc.
ATTACHMENT C
Pursuant to Section 7.14 of this Agreement, the Serious Traffic Offender Program Fee shall apply to vehicles impounded pursuant to the following California Vehicle Code Sections. One or more of the following sections must be included on the impounding documents.
California Vehicle Code
22651(p) Includes Sections 12500, 14601, 14601.1, 14601.2, 14601.3, 14601.4, 14601.5 or 14604.
22651(h)(2) Upon service of notice of an order of Suspension or Revocation, pursuant to 13388 CVC.
14602.6 Unlicensed, Suspended or Revoked and involved in traffic collision. Sub- section (b) - Certified Mail, 2 -day notice to legal owner. Failure to notify legal owner results in maximum fee for 15 days vehicle storage. 14602.7 Fleeing a Peace Officer - Court Order upon affidavit of Peace Officer, to seize vehicle, not to exceed 30 days. Failure to notify legal owner (2 days’ notice) results in maximum fee for 15 days vehicle storage. 14607.6 Impoundment and Forfeiture of Motor Vehicle.
PURCHASING TOWING CONTRACT
PRICE COMPARISONS
8/12/2026
Final Pricing
Road 1 Cortes Angelos Quality ASAP TONY'S LOYAL 2026 Difference
FEE SCHEDULE
BASIC TOWING. Includes First Hour Hookup,
Labor, Standby Time, for vehicles Under 9,500
GVW (unloaded).
$280 $180 $260 $200 $291 $220 $195 $200 +$20
MEDIUM SIZE - BASIC TOWING. Includes first
hour hookup, labor, standby time, for vehicles
over 9,500 GVW but less than 22,000
(unloaded)
$360 $205 $295 $220 $328 $230 $225 $220 +$15
LARGE SIZE - BASIC TOWING. includes first hour
hookup, labor, standby time, for vehicles over
22,000 GVW (unloaded)
$420 $240 $345 $240 $390 $240 $245 $240
ON-SCENE or Stand-by labor = each 15-minute
increment, beyond first hour. Is charged only
when extra ordinary labor must be expended to
recover a vehicle. Stand-by is charged when the
job cannot be started and must be explained on
the tow bill.
$120 $40 $40 $25 $60 $0 $170 per
hour
$40
DOLLIES. Will only be used when there is not a
less expensive, safe manner of handling the
situation.
$80 $55 $55 $50 $0 $0 $60 $55
DRY RUN. May also be known as a “hook-up –
drop fee” and is charged when the vehicle is
hooked up and the owner returns before the
vehicle is in transit.
$140 $0 $90 $50 $145 $0 $85 $0 -$50
PER MILE TOWING. Applies only to vehicles
recovered outside the jurisdiction of the city of
National City
$8 $5 $12 $5 $0 $0 $6 $5
MAXIMUM STORAGE - PER DAY. Per day is
defined as a 24-hour period.
$75 $50 $65 Basic $45
Med $55
Hvy $65
$75 $50 $55 $50
STORAGE PER HOUR. The maximum daily hourly
storage rate, not to exceed the maxiumum
storage-per day rate.
$15 $2.08 $15 $15 $75 $5 $2.29 $5 -$10
AFTER HOURS VEHICLE RELEASE. After 5PM
and before 8AM including weekends and all City-
observed holidays.
$140 $65 $100 $75 $60 $75 $75.00 $70 +$5
NOTIFICATION OF LIEN SALE. Vehicle valued at
less than $4.000, (22851.12 CVC).
$70 $35 $75 $70 $70 $70 $70 $70
NOTIFICATION OF LIEN SALE. Vehicle valued at
over $4,000. (22851.12 CVC).
$100 $70 $100 $100 $100 $100 $100 $100
POLICE EQUIPMENT TOWING. Inside jurisdictional
limits of National City
$0 $0 $0 $0 $0 $0 $0 $0
CITY EQUIPMENT TOWING & STORAGE Includes
all City vehicles. Also includes police vehicles towed from outside juridictional limits of National City
25% of
Basic
Towing
Fee
25% of
Basic
Towing
Fee
25% of
Basic
Towing Fee
25% of
Basic
Towing
Fee
25% of
Basic
Towing
Fee
25% of
Basic
Towing
Fee
25% of
Basic
Towing
Fee
25% Basic
Tow Fee
EVIDENTIARY TOWING AND STORAGE. Daily
storage fees for City/vehicles, seized vehicles, and
vehicles for evidentiary purposes.
25% of
Daily
Storage
fee &
25%
Basic
Towing
f
25% of
Daily
Storage
fee &
25%
Basic
Towing
f
25% of
Daily
Storage fee
& 25%
Basic
Towing fee
25% of
Daily
Storage
fee &
25%
Basic
Towing
f
25% of
Daily
Storage
fee & 25%
Basic
Towing fee
$0 25% of
Daily
Storage
fee &
25%
Basic
Towing
f
25% of Daily
Storage fee
TOWING OF VICTIMS' VEHICLES $60 $60.00 $60.00 $60 $60 $60 $90 $60 Red hilight = disqualified
**FINAL
: Final negotiated rates to which both
recommended vendors agreed. Contracts with
PURCHASING TOWING CONTRACT
PRICE COMPARISONS
8/12/2026
Road 1 Cortes Angelos Quality ASAP TONY'S LOYAL 2026 Difference both vendors will charge the same rates
RESOLUTION NO. 2026 –
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA,
AUTHORIZING THE MAYOR TO EXECUTE AGREEMENTS WITH CORTES TOWING ENTERPRISES INC. AND TONY’S AUTO CENTER INC . DBA TONY’S AUTO CENTER FOR TOWING AND IMPOUND SERVICES , WITH INITIAL TERMS OF OCTOBER 1, 2026 TO SEPTEMBER 30, 2029.
WHEREAS, the City of National City (“City) Police Department requires professional towing and impound services to maintain the safety of the public right-of-way and to seize and secure vehicles in accordance with the laws of the State of California, the National City Municipal Code, and City regulations; and
WHEREAS, the City currently has two (2) towing and impound operators performing exclusive towing services within the City and desires to continue to receive such services from two (2) operators; and
WHEREAS, on May 5, 2026, the City Council adopted Resolution 2026-45, authorizing Request for Proposal (“RFP”) No. GS2526 -1 for towing and impound services and adopting policies for the selection of towing services in the City; and
WHEREAS, the RFP for towing and impound services was posted on May 12, 2026 on PlanetBids, a free public electronic bidding system; and
WHEREAS, the RFP was advertised in local newspapers (the San Diego Union Tribune and the Star News) and was mailed to potential vendors; and
WHEREAS, seven (7) proposals were received by the 12:00 p.m. deadline on June 15, 2026; and
WHEREAS, the tow contract working group, comprised of City staff from various departments, evaluated the proposals for compliance with the requirements of the RFP , conducted site visits, contacted references, and ranked the responsive proposals to determine the best overall value to the City; and
WHEREAS, upon review of the proposals, all documents submitted, and the results of the site visits and reference checks, the proposals of the two top-ranked tow operators, Cortes Towing Enterprises Inc. and Tony’s Auto Center Inc. dba Tony’s Auto Center, were deemed responsive and to provide the best overall value to the City, with each hav ing a history of accurate, dependable, and reliable service for public agencies, having participated in a competitive process through the RFP, and having the best qualifications and capability of delivering the highest quality, professional towing services for the City at reasonable prices; and
WHEREAS, Cortes Towing Enterprises Inc. and Tony’s Auto Center Inc. dba Tony’s Auto Center represent and warrant they are experienced and staffed in a manner such that they are capable and prepared to deliver the services required by the City, all in accordance with the terms and conditions of the RFP and resulting agreements; and
WHEREAS, City staff recommends awarding contracts to Cortes Towing Enterprises Inc. and Tony’s Auto Center Inc. dba Tony’s Auto Center for towing and impound services for the City
of National City, with initial terms of October 1, 2026, to September 30, 2029, and authorizes the Mayor to execute the agreements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: That the City Council hereby authorizes the Mayor to execute Agreements with Cortes Towing Enterprises Inc. and Tony’s Auto Center Inc . dba Tony’s Auto Center for towing and impound services, with initial terms beginning October 1, 2026 and ending September 30, 2029.
Section 2: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED and ADOPTED this 15th day of September, 2026.
Ron Morrison, Mayor
ATTEST:
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
Heidi Skinner, City Attorney
AGENDA REPORT
Department: City Manager's Office
Prepared by: Pedro Garica, Economic Development Manager Meeting Date: Tuesday, September 15, 2026
Approved by: Douglas J. Schulze, City Manager
SUBJECT:
Downtown National City Community Benefit Improvement District Feasibility Study and Direction on Next Steps.
RECOMMENDATION:
Receive a presentation regarding the feasibility of establishing a Downtown National City Community Benefit Improvement District and provide direction to staff regarding whether to proceed with the formal district formation process.
BOARD/COMMISSION/COMMITTEE PRIOR ACTION:
Not Applicable.
EXPLANATION:
Discussions regarding the potential formation of a Downtown National City Community Benefit Improvement District date back to approximately August 2022, when the concept was first discussed with the Office of then-San Diego County Supervisor Nora Vargas, District 1.
Following those discussions, the South County Economic Development Council (SCEDC) pursued County Community Enhancement funding to support an investigation into the potential formation of a Downtown National City assessment district. The grant application identified Downtown National City revitalization and the investigation of a new Community Be nefit District as primary activities to be funded.
The formal grant application process moved forward in early 2023. The proposed work contemplated investigating and potentially forming a Downtown property assessment district, with SCEDC serving as the grant recipient and project administrator.
County funding was ultimately made available on June 30, 2024 , allowing the investigative and feasibility phase to proceed. SCEDC subsequently engaged New City America, Inc. to evaluate the viability of establishing a district in Downtown National City.
New City America conducted property and parcel research, stakeholder engagement, boundary analysis, property-owner surveys, service-priority analysis, assessment modeling, and evaluation of potential district formation options. The consultant completed its investigative work in 2025 and issued a Final Investigation Report in October 2025.
The proposed district is intended to establish a long -term, sustainable mechanism for funding enhanced services and improvements in Downtown National City above and beyond the City’s existing baseline services. Potential services include enhanced cleanliness, beautification, public safety support, business attraction, marketing, placemaking, and other district-focused activities.
New City America has completed the investigative phase for the potential formation of a Downtown National City Community Benefit Improvement District. The study evaluated the proposed district boundaries, property-owner interest, potential enhanced services, assessment methodologies, and estimated costs.
The proposed district would create a property -based assessment mechanism to fund services above and beyond the City’s existing baseline services. Potential services include enhanced cleaning and beautificati on, public-safety support, marketing and promotion, placemaking, and other activities intended to improve the Downtown environment.
Property-owner outreach conducted during the feasibility phase demonstrated sufficient interest to warrant further consider ation of district formation. The consultant also developed several preliminary service and assessment scenarios for Council consideration.
Because the City owns property within the proposed district, City -owned parcels would also be subject to an annual a ssessment if the district is ultimately formed. Preliminary estimates range from approximately $47,000 to $64,000 annually, depending on the final boundaries, service plan, and assessment methodology.
The purpose of this item is to present the findings of the feasibility study and receive City Council direction on whether staff should proceed with the formal district formation process.
FINANCIAL STATEMENT:
There is no immediate fiscal impact associated with receiving the presentation and providing direction.
If Council directs staff to proceed with district formation, because the City owns property within the proposed district, the City would be responsible for an annual assessment if the district is ultimately established. Preliminary estimates ra nge from approximately $47,000 to $64,000 annually, depending on the final district boundaries, service plan, and assessment methodology.
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Balanced Budget and Economic Development
ENVIRONMENTAL REVIEW:
This is not a project under CEQA , and is therefore , not subject to environmental review.
CCR15378; PRC 21065.
PUBLIC NOTIFICATION:
The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act
ORDINANCE:
Not Applicable
EXHIBITS:
Exhibit A – Final Investigation Report
Exhibit B – Community Benefit District Presentation
Corporate Office ▪ 710 W. Ivy Street ▪ San Diego, CA 92101 ▪ 619-233-5009 ▪ Fax 619-239-7105 New England Office: 794 Purchase Street ▪ New Bedford, MA ▪ 02740 [email protected] ▪ www.newcityamerica.com ▪ Facebook: New City America, Inc.
October 16, 2025
Mr. Pedro Garcia
Economic Development Director
City of National City
SUBJECT: Final report for the Investiga tive Phase of the Proposed Downtown National City Community Benefit District ( Landscaping and Lighting District/Parking meters)
Dear Pedro:
Attached is my final report on the investigation of a prospective property assessment district to subsidize special benefit services for Downtown National City . We believe property owner support existed at the time we conducted this survey , as the Downtown evolve s, the need for these services will increase and the need for a funding mechanism to manage the district will become more apparent.
We have paused our efforts until such time that the City Council hears the plan, costs and services for a newly proposed district. Without the City Council voting to move forward, as the largest single property owner in Downtown National City, we would not be able to move toward the formation of the district.
We hope you find this report responsive to what the City and Downtown properties owners will require, as the Downtown business district become s more of an attraction to visitors and customers throughout the South Bay and San Diego County.
Sincerely,
Marco Li Mandri
President
New City America, Inc.
2 REPORT TO THE CITY OF NATIONAL CITY COUNCIL -OCTOBER 2025
RESULTS OF THE INVESTIGATION OF A NEW DOWNTOWN COMMUNITY BENEFIT DISTRICT
(FORMED UNDER THE LANDSCAPING AND LIGHTING ACT OF THE STATE STREETS AND HIGHWAY CODE AS WELL AS
REVENUE FROM THE NEW PARKING METER PROGRAM IN DOWNTOWN)
Overview
The discussion on a new district management corporation for Downtown National City began in the Spring of 202 3 between City officials in the City Manager’s office, the City’s Chamber of Commerce, the South Bay Economic Development Corporation and the County Supervisor’s office under Nora Vargas.
Due to a series of issues regarding the status of the recipient of the grant for the study of a new Downtown Community Benefit Improvement District, it was decided by City staff to have the grant sent to the South County Economic Development Corporation who would act as a fiduciary for the implementation of the study.
New City America, a local company who has formed over 100 similar districts nationwide, was the consultant selected to do this study which commenced in the Spring of 2024 . New City America completed the study in early 2025 and was scheduled to report on its findings to the City Council in April 2025, but that was rescheduled due to staff changes in the City Manager’s office.
There was tremendous interest , statewide, from cities wanting their Downtowns to rebound quickly following the forced government shutdowns due to the pandemic . In tandem, business owners were suffering, so it seemed to be an opportune time to engage property owners on their desire for a property assessment district to be put in place, to fund special benefit services in Downtown. Special benefit services are services which are over and above what the City of National City is currently providing to Downtown businesses and property owners.
From the outset, our strategy for financing improvements in Downtown would include:
1. Property Assessment District: Revenues generated from the 1972 Act, Landscaping and Lighting Act to respond to issues in the public rights of way (sidewalk sweeping, pressure washing, landscape planting and maintenance, graffiti removal, public space development and management, etc.)
These property assessment districts are allowable due to the adoption of Proposition 218 and the amendment of Article XIII (d) of the state constitution. Such districts have been formed since they became legislatively allowable in the mid-1990s.
2. Parking Meter Revenues: Revenues generated on a 50/50 split with the City in regard to parking meter revenues, as per a newly adopted ordinance by the City Council that would spell out acceptable use for these parking meter funds in Downtown . The services covered by the
3 parking meter revenues would include marketing and promotion, social media, security, enhanced lighting, minor capital improvements and administration.
We believe that this would be the best scenario for generating sustainable revenues in Downtown since the property owner contribution would be matched by “customer/visitor” contribution in the form of new parking meter revenues . The nexus of the use of parking meter revenues is that the more we can market and promote Downtown National City, the more it will generate an increase in traffic for parking meters and will contribute to the overall vibrancy of Downtown.
New City America calls such districts “Community Benefit Improvement Districts” instead of Property Business Improvement Districts, since the term “ Community Benefit Improvement District” more appropriately addresses all land uses, as well as public and private property in a Downtown environment. For example, resident ial owners of properties, ecumenical buildings, public sector properties, and other non-profit entities do not necessarily classify themselves as “businesses” however, they all may also want the special benefit services that a property assessment district might provide.
Tools and strategy used for the investigation
New City America has formed 101 similar districts nationwide since the late 1990 s. It also currently manages 8 Business Improvement Districts and Community Benefit Improvement Districts in the state of California.
The first step in investigating a property assessment district is to det ermine, with a group of business and property owners and City reps, the district’s proposed boundaries. This is the widest potential area to capture all future growth within the District and gives us the opportunity to scale back the district should there be opposition to the concept on the peripheral areas.
Property assessment districts in the state constitution have specific guidelines for formation. As such, one must look at the larger property owners due to their dollar contributions to represent the k ey foundation for consideration for the success of such a District. Though the state constitution does not require an initiating petition, nor t erm for such Districts, the constitution states clearly that such districts must “ confer a special benefit to re al property owners ” to be established. Furthermore, the state constitution requires the following:
1. That special benefit services funded by a Community Benefit Improvement Districts (CBID) or Property Business Improvement District (PBID) can only be established by a “weighted vote” of the benefitting property owners. The weight is determined by the dollar amount that each property owner will have relative to the overall gross budget of the CBD or PBID.
2. No properties, including ecumenical, non-profit, tax-exempt or public, are exempted from the assessments levied unless federal and state properties can provide “clear and convincing evidence” that they will not benefit from such services.
4 3. The plan must be reviewed and a certified engineer’s report submitted to the city.
4. Unless a city is a Charter City, they must use the legislative tools outlined in the Street and Highway Code, to implement their special benefits districts. Other property assessment districts could include the Landscaping and Lighting Districts of 1972 or the Community Facilities Districts (Mello Roos), also to be found in the State codes . Charter cities are allowed to create their own form of assessment districts as long as they follow the State Constitution.
Timeline for the Investigation/Survey
The contract for the investigation of the Downtown National City CBD commenced in the Spring of 2024 under a ten-month contract ending in March 2025. As part of this contract , multiple meetings were held with property owners on site, in person and via Zoom with the previous City Manager and Economic Director in preparation for the mailing out of the survey. The survey, after review and approval by City staff, was sent out in early September 2024 to all property owners in the study area. (see attached map for the study area).
The survey’s purpose was to ascertain the following information:
• If property owners were conceptually supportive of a district that will fund special benefits within a designated area of Downtown National City
• If yes, which special benefits (tangible) would they be willing to support. • If there were other issues that needed to be addressed • If they would like to be included in Downtown National City CBID Steering Committee • Collection of data from the property owner or authorized representative of the property including contact name, e-mail address, phone and updated mailing address
Data of Downtown Survey Area
New City America purchases data to mail the survey from Parcelquest. City staff was critical in allowing us to use the best property contact with authorization to fill out the survey on behalf of the property owner (whether local, publicly traded or another corporate entity).
The data resulting from the survey included:
• 313 Parcels
• 198 Property Owners
• 170 Residential Condominiums
•
Based upon the survey data collected, t he property data related to the study area had the following gross property variables, which forms the foundation of any property assessment district plan:
• 92,450 building square footage in residential condominiums • 976,701 in gross building square footage
• 1,594,331 in gross lot or parcel size square footage
• 21,157 in linear frontage
5 Based upon the information above, we can calculate budget scenarios that could possibly spread the overall assessments to a very large area . For example, an emphasis on building square footage, deemphasize lot assessments and a linear frontage cost, the assessment methodology examples would be:
Condominiums (residential condominium square footage):
1,200 sf x $0.16 = $192.00
Building Square Footage:
1,200 x $0.16 =$192.00
Lot Square Footage:
5,000 x $0.14 = $700.00
Linear Frontage:
50 x $8.00 = $400.00
This conceptual first year budget, which includes a combination of building square footage, lot size and linear frontage per parcel ( condominiums only pay for building square footage) the annual budget could amount to $563,526.00. This first year’s budget would be more than enough to cover services including security, cleaning, marketing and promotion, events, public space development, and management.
Remember, with each building square footage added to the district, this would result in an extra .16 cents per square foot added to the ove rall budget per year. Linear frontage and lot size will remain the same throughout the life of the district besides possible annual adjustments, unless expansion is considered at a later point.
Survey of Property owners/results:
After the e-mail and postage mail survey mailings, we received 57 responses, or only about 18% of the total number of property owners in the study area. This number is a bit skewed due to 170 of the 313 property owners being residential condominium property owners, which would pay very low annual property assessments. Taking out the high-rise condominiums would leave 143 property owners in Downtown. We received 57 responses, which represents almost 40% of the non-residential condominium owner parcels . That is a f airly strong return from the property owners. New City America has prepared similar surveys of downtown property owners over the past 22 years, and this was a strong return rate to other similar districts . Please review t he following results:
a. Survey area
(please see attached map, as attachment A, responses in color)
b. Date and number sent out:
6 313 surveys were mailed out in September 2024 and November 2024, with personal and e-mail follow up by staff and Marco Li Mandri of New City America. c. District totals:
New City America “weighs” the responses based on three variable s common to each parcel: linear frontage, lot or parcel size, and building square footage. We use this process as these are the building blocks of any assessment methodology to be applied in the creation of a budget for the new Downtown National City CBD.
d. Goal of Survey:
Consistent with our experience investigating and forming simi lar property assessment districts, the survey mailed to property owners informs New City America of what the special benefit priorities of the property owners are . Each question, excluding the first two, ask property owners which special benefit services they are willing to pay for. It gives them the choice of “yes ,” “no,” or “no opinion” to each question . The survey would constitute the foundation of any property assessment district plan presented if the investigation evolved into a formation agreement with New City America . Please see attachments.
e. Priority services:
The five top priorities from the respondents to the survey were as follows:
1. Property owner supported parking mitigation strategies for the Downtown.
2. Property owner supported efforts dedicated to working with the City to respond to homeless, panhandling and loitering issues.
3. Property owners supported efforts to locate new public spaces and management of those public spaces.
4. Property owner supported marketing and promotion, social media and branding campaigns to create demand for Downtown National City
5. Property owner supported sidewalk and gutter cleaning throughout downtown.
Note: The third question on the survey, which is not a funding question, asked property owners “in terms of security and public safety do you feel that Downtown National City is?”
a. Safe and orderly(10)
b. Relatively safe, but with image issues (20)
c. Unsafe at certain times (12)
The combined response of 42 respondents to this question stating that Downtown has an image problem, or is unsafe at certain times , is highly problematic and could discourage new investment, new retail and restaurants and residents from coming Downtown.
f. Threshold goal:
In every survey that New City America conducts, the goal is to have an average of 30% of the property owners (by lot size linear frontage and building square footage) demonstrate support for the key special benefit funding questions on the survey . To reach that goal
7 from our original database, we will have had to have the following property variables meet the average 30% threshold:
After the e-mail and mailed surveys as well as meetings with various property owners, our survey respondents tallied this level of support from the following property categories:
5% from condominium owners
37% of building square footage
28% of lot square footage
27% of linear frontage
Based upon the levels of support listed above the average support was almost 31%, therefore meeting our goal.
The level of opposition on all four categories resulted in the following percentages:
0% from condominium owners
10% opposition in building square footage.
8% opposition in lot size and
9% opposition in linear frontage
Types of Special Assessment Districts:
There are three types of assessment districts or fee -based, mandatory legislative tools that are relevant to providing additional funding for Downtown services.
a. Business Improvement District – formed under the 1989 Act in the Streets and Highway code . This legislation does not require a plan, a petition or vote, but rather can be established by a majority vote of the City Council . These districts are highly unpopular and can create a situa tion whereby it may violate the intent of Proposition 26, passed by voters around 10 years ago.
b. PBID – legislation founded in 1994 that allows for special benefit property assessment districts, in Section 36600 of the California Streets and Highway code . This is, by far, the only choice of general law cities and their respective Downtown property owners to fund special benefit services in Downtowns.
c. CBID: Combination of a Landscaping and Lighting district (1972 Act in the Streets and Highway Code) combined with revenues generated from a local Downtown Parking District that will allow for payment of services that are not covered by the limited Landscaping and Lighting Act (security, marketing and promotion and parking management).
Future Options
Our investigation shows that property owners in Downtown National City are open to assessing themselves for enhanced services. The absence of strong opposition to the idea is an encouraging
8 sign. There is genuine interest, particularly among major property owners downtown —but it seems the timing simply has not been right – at this point.
Strong Examples of Well-Functioning CBIDs
New City America brings deep expertise to the field, having formed, managed, and consulted with Downtown organizations, property owner associations, and municipalities across the country. Our direct oversight of eight distinct districts within California provides us with unique, first-hand knowledge—not just of how these districts are formed, but more critically, how to manage them effectively to deliver lasting benefits to property owners, businesses, and residents.
We encourage city leaders and stakeholders in Downtown National City to look to well - established models of Business Improvement Districts (BIDs), Community Benefit Improvement Districts (CB IDs), and their managing entities for guidance. From our experience, exemplary Downtown organizations include in Southern California —Downtown San Diego/Little Italy, Downtown Chula Vista, and Downtown Glendale; Downtown El Cajon and i n Northern California—Downtown Hayward and Downtown Redwood City.
Conclusion
Downtown National City is on the brink of a major transformation. Over the next decade, new mixed-use developments and market -rate housing (both apartments and condominiums) will reshape our skyline—and with that shift comes both opportunity and responsibility.
Now is the time for action. The City must actively partner with property owners to chart a shared vision: where do we want Downtown National City to be i n 5, 10, and 15 years? When property owners are part of the planning process —not passive recipients —our plans will be stronger, bolder, and more aligned.
Establishing a property -based special benefit assessment district is the catalyst we need to accelerate revitalization. Such a District offers a proven, equitable framework to fund enhanced public services and improvements—above and beyond what is currently available. It ensures that the benefits flow directly to those investing in Downtown: property owne rs, residents, and business operators.
By doing this, we build more than just infrastructure. We build trust. A well-financed partnership between property owners, local businesses, residents, and City government not only boosts safety, cleanliness, and aesthetics—it drives property values, attracts investment, and fosters the kind of vibrancy that makes Downtown National City a place people want to live, work, and visit.
ATTACHMENTS
DISTRICT TOTALS
SURVEY MAP
9 SURVEY MAP RESPONSES
DOWNTOWN NATIONAL CITY DISTRICT Total # of Parcels: 313 Total # of Property Owners: 1988/20/2026
District Totals
976,701Bldg SF
1,594,331Lot Sz
21,157Frontage 100%
100%
100%
92,450Condo SF Total 100%
New City America, Inc.| 710 W. Ivy Street | San Diego, California 92101 | 888-356-2726Page 347 of 366
Downtown National City |Survey Totals
8/20/2026
313 Parcels
198 Property Owners
District Totals - Zone
976,701Bldg SF Total
1,594,331Lot Sz Total
21,157Frontage Total 100%
100%
100%
Condos Total 92,450 100%
363,595Bldg SF Total
438,797Lot Sz Total
5,725Frontage Total
Supportive
27%
28%
37%
Condos Total 4,650 5%
100,770Bldg SF Total
123,761Lot Sz Total
1,904Frontage Total
Opposed
9%
8%
10%
Condos Total 0%
22,700Bldg SF Total
22,950Lot Sz Total
342Frontage Total
No Opinion
2%
1%
2%
Condos Total 1,000 1%
134,930Bldg SF Total
196,202Lot Sz Total
1,900Frontage Total
City
9%
12%
14%
Condos Total 0%
354,706Bldg SF Total
812,621Lot Sz Total
11,286Frontage Total 53%
51%
36%
Condos Total 86,800 94%
New City America, Inc.| 710 W. Ivy Street | San Diego, California 92101 | 888-356-2726Page 349 of 366 Downtown
National
City
Marco Li Mandri
President
New City America, Inc. Page 350 of 366
Top 3 Questions & Key Concerns from Property Owners
9. Would you support property owner funded parking mitigation strategies and programs to improve the parking experience of customers, such as valet or leasing of office parking spaces for evening hours?
a. Yes(30 Responses) b. No (11 Responses) c. No Opinion (2 Responses)
6. Would you support property owner funded planting, trimming and maintenance of trees, flowers, hanging plants and shrubs throughout the Downtown National City District, a. Yes (29 Responses) b. No (11 Responses) c. No Opinion (5 Responses)
8. Would you support developing locations for new public space designations and management of those public spaces to ensure that they remain an asset to everyone in Downtown? a. Yes (28 Responses) b. No (9 Responses) c. No Opinion (6 Responses)
2210 Columbia Street
San Diego, CA 92101
(619) 233-5009
NCPublicSpaces.com
NewCityAmerica.com
THANK YOU.
AGENDA REPORT
Department: Fire Department
Prepared by: Jeremy Day, Battalion Chief
Meeting Date: Tuesday, September 15, 2026
Approved by: Douglas J. Schulze, City Manager
SUBJECT:
Resolution authorizing an Inter -Fund Loan from the Sewer Fund to the Ambulance Transport Services Enterprise Fund in an Amount Not to Exceed $6,500,00 for the Implementation of an In- House Ambulance Transport Program.
RECOMMENDATION:
Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, Authorizing an Inter-Fund Loan from the Sewer Fund to the Ambulance Transport Services Fund in an Amount Not-To-Exceed $6,500,000 for the Implementation of an In -House Ambulance Transport Program.”
BOARD/COMMISSION/COMMITTEE PRIOR ACTION:
On March 17, 2026, the City Council received a presentation regarding the Emergency Medical Services Transportation & Optimization Study and progress toward development of a Public Provider Ground Emergency Medical Transport Program. On May 19, 2026, the City Council received an update regarding Phase I and Phase II implementation planning, including evaluation of startup financing alternatives. Staff presented financing options and identified full internal financing as the pr eferred approach. The City Council expressed support for continuing implementation planning and advancing the recommended financing strategy.
EXPLANATION:
The City of National City is pursuing the establishment of an in -house Ambulance Transport Services (ATS) program to provide emergency medical transportation services as a municipal enterprise. The proposed inter -fund loan represents the next phase of implementation efforts previously presented to and supported by the City Council. This funding mechanism will provide the financial resources necessary to support startup costs, operational readiness, and program activation while allowing the Ambulance Transport Services Enterprise Fund sufficient time to establish a sustainable revenue stream.
Implementation of the ATS program requires significant startup investments, including ambulance acquisition, medical equipment, communications systems, information technology infrastructure, facility improvements, personnel recruitment and training, supplies, licensin g requirements, and working capital necessary to initiate operations. Staff estimates implementation expenditures of approximately $3.5 million to $4.0 million during Fiscal Year 2026 -27 and approximately $2.5 million during Fiscal Year 2027-28.
Staff evaluated both external and internal financing alternatives to support establishment of the Ambulance Transport Services (ATS) program. Based on that analysis, staff recommends an internal financing approach because it provides greater flexibility, lower borr owing costs, simplified administration, and the ability to fund both operational and capital startup expenditures.
The proposed inter -fund loan would provide funding during implementation and throughout the first twelve (12) months of ATS operations, allow ing sufficient time for the Ambulance Transport Services Enterprise Fund to establish operational revenues before repayment begins.
Interest shall accrue only on amounts actually advanced and shall be calculated quarterly. Upon expiration of the draw peri od, the Finance Director will determine the total principal advanced, accrued interest, and final outstanding loan balance. The final loan balance will be repaid over a ten-year period from net revenues generated by the Ambulance Transport Services Enterpr ise Fund.
Following expiration of the draw period, the Finance Director will prepare a Final Amortization Schedule based on actual principal advances, accrued interest, applicable LAIF rates, and the final loan balance. An example preliminary repayment methodology is attached as Exhibit A and is provided for planning purposes only. The Final Amortization Schedule shall supersede Exhibit A and become the official repayment schedule for the inter-fund loan.
FINANCIAL STATEMENT:
Approval authorizes an inter-fund loan from the Sewer Fund to the Ambulance Transport Services Enterprise Fund in an amount not-to-exceed $6,500,000.
Interest shall accrue only on amounts actually advanced and shall be calculated using the Local Agency Investment Fund (LAIF) rate. The use of the LAIF rate is intended to allow the Sewer Fund to receive interest earnings comparable to those that would otherwise have been earned had the funds remained invested in the City's investment portfolio.
Repayment of the loan is anticipated to be funded from net revenues generated by the Ambulance Transport Services Enterprise Fund. No General Fund contribution is anticipated.
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Public Safety
ENVIRONMENTAL REVIEW:
This is not a project under CEQA , and is therefore , not subject to environmental review.
CCR15378; PRC 21065.
PUBLIC NOTIFICATION:
The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
Exhibit A – Preliminary Loan Repayment Methodology (For Planning Purposes Only) Exhibit B – Resolution
EXHIBIT A
PRELIMINARY LOAN REPAYMENT METHODOLOGY
(Planning Purposes Only)
Loan Assumptions for Planning Purposes
Item Assumption
Maximum Loan Authorization $6,500,000
Lender Fund Sewer Fund
Borrowing Fund Ambulance Transport Services
Enterprise Fund
Interest Rate 3.92% (Illustrative Only)
Draw Period Through the date that is twelve (12)
months after commencement of
operations
Repayment Term Ten (10) years
Repayment Source Net revenues of the Ambulance
Transport Services Enterprise Fund
Estimated Draw Schedule
Fiscal Year Estimated Advance
FY 2026-27 $4,000,000
FY 2027-28 $2,500,000
Total Estimated Advances: $6,500,000
Estimated Interest Accrual During Draw Period
Description Amount
Interest Accrued Initial Draw Period (9 months
@3.92%)
$117,600
Interest Accrued Subsequent Draw Period (12 months
@3.92%)
$259,410
Total Accrued Interest $377,010
Estimated Final Loan Balance
Description Amount
Total Principal Advances $6,500,000
Total Accrued Interest $377,010
Final Loan Balance $6,877,010
Preliminary Ten (10) Year Repayment Schedule
Year Beginning
Balance
Annual
Payment
Interest Principal Ending
Balance
1 $6,877,010 $844,500 $269,579 $574,921 $6,302,089
2 $6,302,089 $844,500 $247,042 $597,458 $5,704,631
3 $5,704,631 $844,500 $223,622 $620,878 $5,083,753
4 $5,083,753 $844,500 $199,283 $645,217 $4,438,536
5 $4,438,536 $844,500 $173,991 $670,509 $3,768,027
6 $3,768,027 $844,500 $147,707 $696,793 $3,071,234
7 $3,071,234 $844,500 $120,392 $724,107 $2,347,127
8 $2,347,127 $844,500 $92,007 $752,492 $1,594,634
9 $1,594,634 $844,500 $62,510 $781,990 $812,644
10 $812,644 $844,500 $31,856 $812,644 $0
Total Interest: $1,944,998
Final Loan Calculation
At expiration of the Draw Period, the Finance Director shall calculate: Final Loan Balance = Actual Principal Advanced + Accrued Interest. The resulting balance shall be amortized over a ten (10) year repayment period in accordance with Section 4 of this Resolution.
Disclaimer
The foregoing schedule is provided solely for planning and illustrative purposes. Actual principal advances, accrued interest, applicable LAIF rates, repayment amounts, and repayment dates shall be determined by the Finance Director following expiration of the Draw Period. The Final Amortization Schedule prepared pursuant to Section 5 of this Resolution shall supersede this Exhibit and become the official repayment schedule of the inter-fund loan.
RESOLUTION NO. 2026 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY , CALIFORNIA,
AUTHORIZING AN INTER -FUND LOAN FROM THE SEWER FUND TO THE AMBULANCE TRANSPORT SERVICES FUND IN AN AMOUNT NOT -TO-EXCEED $6,500,000 FOR THE IMPLEMENTATION OF AN IN-HOUSE AMBULANCE TRANSPORT PROGRAM.
WHEREAS, the City of National City (“City”) has determined that establishing an in-house ambulance transport services program (“Ambulance Transport Services”) is necessary to enhance emergency medical services, improve continuity of patient care, maintain local control of emergency transport operations, and provide long-term operational and financial benefits to the community; and
WHEREAS, the City intends to establish Ambulance Transport Services as an enterprise fund, with all revenues, expenditures, assets, liabilities, and reserves accounted for separately from the City’s general fund; and
WHEREAS, the implementation of Ambulance Transport Services requires significant startup capital expenditures including, but not limited to, acquisition of ambulances, medical equipment, communications systems, information technology infrastructure, and supplies; facilities modifications; personnel recruitment and training; and working capital necessary to commence operations; and
WHEREAS, the City anticipates needing approximately $6,500,000 in initial capital for implementation of Ambulance Transport Services, with approximately $3,500,000 to $4,000,000 utilized during Fiscal Year 2026-2027 and approximately $2,500,000 utilized during Fiscal Year 2027-2028; and
WHEREAS, the actual amounts needed may be less than the anticipated amount of $6,500,000, depending upon implementation needs, equipment costs, operational requirements, and other project expenditures; and
WHEREAS, sufficient funds are available within the Sewer Fund to provide interim financing for Ambulance Transport Services without impairing the Sewer Fund’s ability to meet its operational, maintenance, capital improvement, and reserve requirements; and WHEREAS, providing interim financing through an inter-fund loan will allow the City to implement Ambulance Transport Services in a timely manner and establish a revenue-generating municipal enterprise capable of repaying such advances; and WHEREAS, repayment of the inter-fund loan is expected to be derived from revenues generated by Ambulance Transport Services.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1. That the City Council hereby authorizes an inter-fund loan from the Sewer Fund to the Ambulance Transport Services Enterprise Fund in an amount not -to-exceed $6,500,000. The purpose of the loan shall be to finance startup and implementation costs to
establish an in-house ambulance transport services program (“Ambulance Transport Services”).
The terms of the inter-fund loan are as follows:
A. Draw Period: Advances may be made from the Sewer Fund to the Ambulance Transport Services Enterprise Fund beginning upon adoption of this Resolution and continuing until the date that is twelve (12) months after commencement of Ambulance Transport Services operations (the “Draw Period”). No additional advances shall be made following the expiration of the Draw Period unless authorized by subsequent action of the City Council.
The City anticipates advances totaling approximately $3.5 million to $4.0 million during Fiscal Year 2026 -2027 and approximately $2.5 million during Fiscal Year 2027 - 2028. Such amounts are estimates only and shall not constitute a limitation or obligation.
B. Interest Rate: Interest shall accrue only on funds actually advanced from the Sewer Fund. The applicable interest rate shall be equal to the interest rate earned through investments in the Local Agency Investment Fund (LAIF), as published by the California State Treasurer, and calculated quarterly on the outstanding principal balance.
Interest shall accrue and be included in the final loan balance.
C. Repayment: Upon expiration of the Draw Period, the Finance Director shall determine:
1. The total principal amount advanced;
2. The total accrued but unpaid interest; and
3. The final outstanding loan balance
The final outstanding loan balance shall be repaid over a period of ten (10) years, commencing upon expiration of the Draw Period. Repayment shall be made through annual installments from net revenues of the Ambulance Transport Services Enterprise Fund. The City Council may authorize accelerated repayment at any time without penalty.
D. Final Amortization Schedule: Following expiration of the Draw Period, the Finance Director shall prepare a Final Amortization Schedule based upon: actual principal advanced, actual accrued interest, applicable LAIF rates, and a ten (10) year repayment term.
An example preliminary r epayment methodology is attached as Exhibit A to the Agenda Report and is provided for planning purposes only. The Final Amortization Schedule shall supersede Exhibit A and shall become the official repayment schedule for the inter-fund loan.
Section 2. That the City Council hereby authorizes the City Manager and Finance Director to take all actions necessary to implement this Resolution, including establishing accounting procedures, fund transfers, reserve policies, repayment schedules, and related administrative actions.
Section 3. That the City Council hereby finds that funding and establishing Ambulance Transport Service s serve an important public purpose by improving emergency medical transportation capabilities, enhancing patient care delivery, strengthening local emergency response capacity, and creating a sustainable municipal enterprise.
Section 4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED and ADOPTED this 15th day of September, 2026.
Ron Morrison, Mayor
ATTEST:
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
Heidi Skinner, City Attorney
CITY COUNCIL ITEM REQUEST
The City Council Item Request Form is for members of the City Council to submit written requests to the City Manager’s Office for inclusion of an item on a future City Council Meeting Agenda. At the meeting where the initial written request is heard, discussion should be limited to whether the item should be added to an agenda and a date, not the merit of the item. A majority vote of the City Council is required for the item to be added to a future City Council Meeting Agenda for action.
Requesting Member of City Council: Council Member Rodriguez
Today’s Date: Tuesday, September 8th 2026
Is this matter considered Time-Sensitive by another entity deadline? Yes
WRITTEN REQUEST
I, Council Member Rodriguez hereby request that the following item be placed on the National City
Council meeting agenda for consideration on Tuesday, October 6th 2026.
Section 2. Justification Statement
What is the need/problem to be addressed?
The City needs to place the staff recommendation of Option 1 of the Business License Tax Reform on the ballot for voter consideration. This reform requires a public vote to move forward, and selecting the right election cycle is critical to both cost and community representation.
Who is proposed to do the work?
City staff, in coordination with the City Clerk's Office and City Attorney, would be responsible for preparing and submitting the necessary ballot measure documentation and coordinating placement on the March 7, 2028 Primary Election ballot.
Why is the timing appropriate now?
Placing this measure on the March 7, 2028 Presidential Primary Election ballot instead of a special election in 2027 significantly reduces costs to the City. A Presidential Primary draws a much larger voter turnout, which would produce a more accurate and representative reflection of the community's position on this issue.
Section 3. Impact Statement
Expected costs or budget implications (consultant fees, legal review, etc.)? Placing this measure on the March 7, 2028 Presidential Primary Election ballot would result in considerably lower costs compared to holding a standalone special election in 2027.
Section 4. Urgency
Urgent - Potential Financial Loss
Placing the measure on a special election in 2027, will result in a significantly higher cost to the city. The March 7, 2028 presidential election is the lower cost option and avoids unnecessary expenditure of public funds.
Section 5. Strategic Alignment
Explain how this proposal aligns with the City’s Strategic Plan or Council priorities This proposal directly supports the City's strategic goal of maintaining a balanced budget and promoting economic development. By pursuing Business License Tax Reform through the most cost effective election option available, the city demonstrates responsible fiscal responsibility.