1.E APPROVAL OF AGMT FOR TOW COMPANY SVCS — Placentia City Council, December 3, 2024

PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: December 3, 2024
Submitted by: Teri Knutson
From: Police Department
Subject:

Approval of Agreement for Official Tow Company Services Financial Impact:

Fiscal Impact:

Revenue: $73,000
Franchise Fee (Flat Fee of $75 per Vehicle)
Agenda Item No: 1.e
Summary:

The Placentia Municipal Code provides for the establishment of an official tow service provider. Anaheim Fullerton Towing Company was the successful bidder in a comprehensive Request for Proposals process that occurred in late 2021. Pursuant to Municipal Code Section 6.76.060, Change of Rates — Procedure, the Company is requesting a rate increase in line with other agencies, as it has kept its towing rates constant for the past ten years, since 2014. This action is for an extension of the contract until June 30, 2025, and adjustment of the rates. The Police Department will begin the process to issue an Invitation for Bids for Tow Services in early 2025 ahead of the June 30, 2025, expiration date.

Recommendation:

Recommended Action: It is recommended that the City Council:

1. Approve the Official Tow Service Agreement with Anaheim Fullerton Towing Company with an expiration date of June 30, 2025; and

2. Adopt Resolution R-2024-81, a Resolution of the City Council of the City of Placentia, California, issuing Certificates of Public Convenience and Necessity and Approving the Official Tow Service Agreement; and

3. Authorize the Acting City Administrator and/or her designee to execute the necessary documents, in a form approved by the City Attorney.

Strategic Plan Statement:

This item conforms to Strategic Plan Goal 2, Ensure that Public Safety Continues to be a High Priority.

Discussion:

Placentia Municipal Code Section 6.76 provides for the establishment of an official tow service. A Request for Proposals and Statement of Qualifications was issued on July 1, 2021, for official tow services by the Police Department. Anaheim Fullerton Tow Company was awarded the contract on October 5, 2021, based on the firm's demonstrated financial strength, 134

quality of the proposer's equipment and personnel, successful completion of services of similar scope and size, and safety record for employees and its tow vehicles. The Police Department has had good service and no complaints since award of the contract.

Charges for tow services are governed by the Placentia Municipal Code. Section 6.76.060 requires that the tow company provide thirty (30) days written notice to the City Council of its intention to do so. The Company advised the Police Department that it wished the Placentia City Council to consider a rate increase to meet the level of Orange County agencies that it services. In order to grant the rate increase, the City Council needs to make a finding that the rates are fair and reasonable.

In its rate increase request, the Tow Company explained to the Police Department that it has held rates constant for the past 10 years, including when it competed during the 2021 RFP process. The Tow Company is asking Placentia to consider establishing new rates consistent with those charged by agencies they serve including the City of Fullerton, California Highway Patrol's Santa Ana and Westminster areas, the Orange County Sheriff's Department, and California State University at Fullerton. Attached is a comparison of these agencies that the company serves, as well as the nearby cities of Buena Park and La Habra. Staff believes that a rate increase is warranted given that rates have not been adjusted for 10 years and compares well with Placentia's adjacent public safety agencies.

This action includes adoption of the Resolution issuing Certificates of Public Convenience and Necessity and Approving the Official Tow Service Agreement. This Certificate is required pursuant to Placentia Code Section 6.76.050 and must be granted by the City Council.

Finally, with the Agreement set to expire on June 30, 2025, the Police Department will begin the process to issue an Invitation for Bids in early 2025. In the previous bidding process, two firms responded to the City's solicitation.

Fiscal Impact Summary:

The City receives revenue pursuant to the Agreement, to cover Staff administrative costs to administer the overall Tow Services program. Anaheim Fullerton Tow Company remits $75 per vehicle towed on a quarterly basis, with an estimated 970 vehicles towed per year. The flat $75 per vehicle is considered a franchise fee, in lieu of the percentage formula that is used for other services with franchise fees (i.e., utilities).

Attachments
Attachment - Comparison of Agency Tow Service Rates 2024.docx Anaheim Fullerton Towing Company - Short Term Contract.docx Certificate of Insurance.pdf
Anaheim_Fullerton_5_mile_radius_map.pdf
Resolution for Short Term Tow Contract.docx
135

Comparison of Agency Tow Service Rates
City of Placentia Current Rates (As of 2014)
Towing
Class "A" Class "B" Class "C" Class "D"
Hourly Rate (Maximum $185.00 $210.00 $295.00 $325.00
allowed)
Storage Rate (Outside) $45.00 $50.00 $60.00 $60.00
Storage Rate (Inside) $50.00 $55.00 $65.00 $65.00
Long-term Storage Daily Rate Daily Rate Daily Rate Daily Rate After-hours Release $83.50 $96.50 $117.50 $152.50
Service Call - Minimum $78.00 $86.00 $117.50 $152.50
Labor Rate (Per hour) $103.00 $103.00 $103.00 $103.00
Special Equipment at Scene 1 hour 1 hour 1 hour 1 hour
minimum minimum minimum minimum
City of Placentia Proposed Rates (effective December 2024) Towing
Class "A" Class "B" Class "C" Class "D"
Hourly Rate (Maximum $275.00 $325.00 $425.00 $525.00
allowed)
Storage Rate (Outside) $75.00 $85.00 $100.00 $115.00
Storage Rate (Inside) $80.00 $90.00 $105.00 $125.00
Long-term Storage Daily Rate Daily Rate Daily Rate Daily Rate After-hours release $105.00 $175.00 $210.00 $260.00
Service Call - Minimum $105.00 $175.00 $210.00 $260.00
Labor Rate (Per hour) $110.00 $110.00 $110.00 $110.00
Special Equipment at Scene 1 hour 1 hour 1 hour 1 hour
minimum minimum minimum minimum
City of Fullerton Rates (Effective 7/1/2024)
Towing
Hourly Rate (Maximum
allowed)
Storage Rate (Outside)
Storage Rate (Inside)
Class "A"
$275.00
Class "B" Class "C" Class "D"
$325.00 $425.00 $525.00
$75.00 $85.00 $100.00 $115.00
$80.00 $90.00 $105.00 $120.00
136

California Highway Patrol -
Towing
Hourly Rate (Business
Hours)
Hourly Rate (After-hours &
Weekends)
Storage Rate (Inside)
Storage Rate (Outside)
After -Hours Release
Service Call - Minimum
California Highway Patrol -
Towing
Hourly Rate
Storage Rate (Outside)
Storage Rate (Inside)
Long-term Storage
After -Hours Release
Service Call - Minimum
Labor Rate (Per hour)'
Santa Ana Rates
Class "A"
$320.00
$350.00
$95.00
$88.00
1/2 Hourly
Tow Rate
1/2 Hourly
Tow Rate
Class "B"
$365.00
$385.00
100.00
$95.00
1/2 Hourly
Tow Rate
1/2 Hourly
Tow Rate
Class "C"
$490.00
$515.00
N/A
$100.00
1/2 Hourly Tow
Rate
1/2 Hourly Tow
Rate
Class "D"
$490.00
$515.00
N/A
$100.00
1/2 Hourly Tow
Rate
1/2 Hourly Tow
Rate
Westminster Rates
Class "A" Class "B" Class "C" Class "D"
$300.00 $350.00 $450.00 $550.00
Orange County Sheriff Rates
Towing
Hourly Rate (Business
Hours)
Hourly Rate (After Hours &
Weekends)
Mileage Charge
Storage Rate (Outside)
Storage Rate (Inside)
After -Hours Release
$90.00 $110.00 $125.00 $125.00
$100.00 $120.00 $135.00 $135.00
Daily Rate Daily Rate Daily Rate Daily Rate
$150.00 $175.00 $225.00 $275.00
$150.00 $175.00 $225.00 $275.00
$110.00 $110.00 $110.00 $110.00
Class "A"
$304.64
$311.43
$11.77
$83.79
$102.50
50% of Tow
Rate
Class "B"
$410.00
$410.00
$11.77
$102.50
$100.00
50% of Tow
Rate
Class "C"
$578.33
$578.33
$11.77
$102.50
N/A
50% of Tow
Rate
Class "D"
$578.33
$578.33
$11.77
$102.50
N/A
50% of Tow
Rate
137

California State University at Fullerton Police Department Rates Towing
Hourly Rate (Business
Hours)
Hourly Rate (After-hours &
Weekends)
Storage Rate (Inside)
Storage Rate (Outside)
After -Hours Release
Service Call - Minimum
Class "A"
$320.00
$350.00 $385.00
Class "B"
$365.00
$95.00 100.00
$88.00 $95.00
1/2 Hourly 1/2 Hourly
Tow Rate Tow Rate
1/2 Hourly 1/2 Hourly
Tow Rate Tow Rate
City of Brea Police Department Rates
Towing
Hourly Rate (Business
Hours)
Hourly Rate (After-hours &
Weekends)
Storage Rate (Inside)
Storage Rate (Outside)
After -Hours Release
Service Call - Minimum
City of Buena Park Rates
Towing
Hourly Rate
Storage Rate (Outside)
Storage Rate (Inside)
Long-term Storage
After -Hours Release
Service Call - Minimum
Labor Rate (Per hour)
Class "A" Class "B"
$320.00 $365.00
$350.00 $385.00
$95.00 100.00
$88.00 $95.00
1/2 Hourly 1/2 Hourly
Tow Rate Tow Rate
1/2 Hourly 1/2 Hourly
Tow Rate Tow Rate
Class "C"
$490.00
$515.00
N/A
$100.00
1/2 Hourly Tow
Rate
1/2 Hourly Tow
Rate
Class "C"
$490.00
$515.00
N/A
$100.00
1/2 Hourly Tow
Rate
1/2 Hourly Tow
Rate
Class "A" Class "B" Class "C"
$300.00 $350.00
$90.00 $110.00
$100.00 $120.00
Daily Rate Daily Rate
$150.00 $175.00
$150.00 $175.00
$110.00 $110.00
$450.00
$125.00
$135.00
Daily Rate
$225.00
$225.00
$110.00
Class "D"
$490.00
$515.00
N/A
$100.00
1/2 Hourly Tow
Rate
1/2 Hourly Tow
Rate
Class "D"
$490.00
$515.00
N/A
$100.00
1/2 Hourly Tow
Rate
1/2 Hourly Tow
Rate
Class "D"
$550.00
$125.00
$135.00
Daily Rate
$275.00
$275.00
$110.00
138

City of La Habra Police Department Rates
Towing
Class "A" Class "B" Class "C" Class "D"
Hourly Rate (Business $195.00 N/A N/A N/A
Hours)
Storage Rate (Inside) N/A N/A N/A N/A
Storage Rate (Outside) $50.00 N/A N/A N/A
139

CITY OF PLACENTIA CONTRACT

FOR OFFICIAL TOW SERVICE
Contractor: Anaheim Fullerton Towing Company Effective Date: December 3, 2024 To June 30, 2025
Table of Contents
RECITALS 1
AGREEMENT 1

1.0 SCOPE OF SERVICES 2

2.0 CONSIDERATION 2

3.0 TERM AND TERMINATION 3

4.0 LOCATION 3

5.0 PERSONNEL 4

6.0 TOWING SERVICE DUTIES 5

7.0 RESPONSE TIME 5

8.0 EQUIPMENT STANDARDS 6

9.0 COMMUNICATIONS EQUIPMENT 7

10.0 HOURS 7

11.0 VEHICLE IDENTIFICATION 8

12.0 STORAGE SERVICE RESPONSIBILITIES 8

13.0 STORAGE FACILITY STANDARDS 8

14.0 IMPOUND VEHICLES - INSIDE STORAGE 9

15.0 RELEASE OF VEHICLES 9

16.0 RECORDS 9

17.0 LIENS AND DISPOSALS 10

18.0 INSPECTION 10

19.0 MOTORISTS ASSISTANCE 11

20.0 RISK 11

21.0 INSOLVENCY 11

22.0 SUCCESSORS 11

23.0 INDEMNITY 12
"24.0 ASSIGNMENT 12

25.0 INSURANCE 12

26.0 INTEGRATION 14

27.0 AMENDMENTS 14

28.0 NO WAIVER 14

29.0 THIRD PARTY BENEFICIARIES 14

30.0 INDEPENDENT CONTRACTOR 14

31.0 CONTROL 15

32.0 EXECUTION OF AGREEMENT 15

33.0 DRY RUNS 15

34.0 CITY VEHICLE TOWING 15
15 0 RFSPfNSTRTT,TTY 1 5
140

36.0 EXCLUSION 15

37.0 BREACH OF CONTRACT 16

38.0 ACTS OR OMISSIONS OF REPRESENTATIVES 17

39.0 CHARGES 17

40.0 NOTICES 17

41.0 CHANGE OF CIRCUMSTANCES 18

42.0 SEVERABILITY 18

43.0 VENUE 18

44.0 FRANCHISE FEE 18
SIGNATURES 19
ii
141

CITY OF PLACENTIA

OFFICIAL TOW SERVICE

AGREEMENT
This Official Tow Service Agreement ("Agreement") is made and entered into this 3rd day of December, 2024 by and between the City of Placentia, a Municipal Corporation ("CITY") and Anaheim Fullerton Towing Company ("OFFICIAL TOW SERVICE") (the "Parties" collectively).

Any reference herein to "DEPARTMENT" shall be deemed to refer to the City of Placentia Police Department.

A. Recitals.
(i). DEPARTMENT requires prompt and efficient towing services on a regular basis in the performance of its emergency response and traffic control duties, including response to, and investigation of, vehicular accidents.
(ii). CITY desires to continue to designate OFFICIAL TOW SERVICE and OFFICIAL TOW SERVICE desires to accept and continue to be retained by CITY, as an independent contractor, for purposes of providing police towing and vehicle impound and storage services for CITY, pursuant to the terms and provisions set forth herein. (iii). OFFICIAL TOW SERVICES has provided thirty (30) days notification pursuant to Section 6.76.060, Change of Rates — Procedure, that it desires to change the schedule of rates. (iv). CITY entered into Agreement with OFFICIAL TOW SERVICE on October 1, 2021 and wishes the tow company to provide services until June 30, 2025, as well as adjust the rates to be charged as shown in Exhibit Al.

B. Agreement.

NOW, THEREFORE, in consideration of the mutual obligations, covenants, and conditions contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

In all respects as set forth in the Recitals, Part A., of this Agreement. 1 Tow Service Agreement
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1.0. SCOPE OF SERVICES.

1.1. OFFICIAL TOW SERVICE shall perform vehicle towing, impound, and storage services as directed by DEPARTMENT, in addition to such other services as required by this Agreement, and shall provide necessary storage facilities, tow services, labor, materials, equipment, machinery and tools. Specific services include, but are not limited to, towing of improperly parked vehicles, vehicles that obstruct or impede the flow of traffic or emergency lanes, walkways, and handicapped parking spaces, police impounds, seizure of evidence and motor vehicle accident response.

1.2. OFFICIAL TOW SERVICE shall comply with all State laws that regulate tow units and the impounding, towing, storage, selling or junking of vehicles.

1.3. OFFICIAL TOW SERVICE is hereby designated as an authorized tow service provider for CITY. All trucks, personnel, and equipment used by OFFICIAL TOW SERVICE in the performance of this Agreement shall be owned by or leased to OFFICIAL TOW SERVICE and shall be subject to all provisions herein set forth.

1.4. OFFICIAL TOW SERVICE acknowledges and agrees that this Agreement to provide tow services is non-exclusive. CITY intends to concurrently contract with at least one other tow service provider and shall utilize the services of each such tow service provider as CITY, in its sole discretion, deems appropriate.

2.0. CONSIDERATION.

In consideration of OFFICIAL TOW SERVICE's agreement to perform services as required herein, CITY agrees that throughout the term of the Agreement, OFFICIAL TOW SERVICE shall have:

2.1. The right to tow, impound, and store vehicles at the direction of DEPARTMENT within the jurisdictional boundaries of CITY, subject to DEPARTMENT's call -for -service system, as the same may be amended from time to time, at DEPARTMENT's sole discretion.

2.2. Nothing herein contained shall deprive the owner or operator of a vehicle from requesting and receiving towing services from a person or entity other than OFFICIAL TOW SERVICE.

2.3. When, in the opinion of DEPARTMENT, an emergency exists, or where OFFICIAL TOW SERVICE is either unable or unwilling, for any reason, to provide adequate or timely tow service, then DEPARTMENT retains the right to call other qualified tow services, which may or may not be under contract with CITY. Under such circumstances, the decision to call another tow service, either under contract or not, shall be at the exclusive discretion of DEPARTMENT. 2 Tow Service Agreement
143

3.0. TERM AND TERMINATION.

3.1. This Agreement shall expire on June 30, 2025.

3.2. This Agreement may be cancelled by CITY at any time during the term, or any subsequent extension hereof, upon revocation of the Certificate of Convenience and Public Necessity granted pursuant to Chapter 6.76 of the Placentia Municipal Code, upon breach of this Agreement or violation of the provisions of Chapter 6.76 of the Placentia Municipal Code. In the event of termination for cause by CITY, OFFICIAL TOW SERVICE shall be compensated for those services that have been fully and adequately completed and accepted by DEPARTMENT as of the date of termination. OFFICIAL TOW SERVICE shall provide documentation deemed adequate by DEPARTMENT to show the services actually completed by OFFICIAL TOW SERVICE prior to the effective date of termination. Termination of this Agreement for cause may be considered by CITY in determining whether to enter into future agreement with OFFICIAL TOW SERVICE.

3.3. This Agreement may also be terminated without cause upon ninety (90) days written notice provided by either party. In the event CITY should abandon, terminate or suspend OFFICIAL TOW SERVICE's work, OFFICIAL TOW SERVICE shall be entitled to payment for services fully and adequately provided hereunder prior to the effective date of said suspension, termination or abandonment, in accordance with this Agreement. OFFICIAL TOW SERVICE shall provide documentation deemed adequate by DEPARTMENT to show the services actually completed by OFFICIAL TOW SERVICE prior to the effective date of and such suspension, termination or abandonment.

3.4. In the event this Agreement is terminated, in whole or in part, as provided by this Section, CITY may procure, upon such terms and in such manner as it deems appropriate, services similar to those terminated.

3.5. The rights and remedies of the Parties provided in this Section are in addition to any other rights and remedies provided by law or under this Agreement.

4.0. LOCATION.

4.1. All storage facilities utilized to store police -stored or impounded vehicles by OFFICIAL TOW SERVICE shall be located within CITY or within a five -mile radius of the jurisdictional boundaries of CITY.

4.2. All vehicles stored or impounded at the direction of DEPARTMENT shall be towed directly to OFFICIAL TOW SERVICES' impound and storage facilities, unless DEPARTMENT instructs such vehicles be taken to another location.

4.3. Any change in OFFICIAL TOW SERVICE's operating/facility locations shall be 3 Tow Service Agreement
144

reported, in writing, to DEPARTMENT at least thirty (30) days prior to making such change.

5.0. PERSONNEL.

5.1. OFFICIAL TOW SERVICE employees and tow truck operators shall be sufficiently trained and capable of ensuring the safe and proper discharge of their service responsibilities.

5.2. All OFFICIAL TOW SERVICE tow truck operators shall possess valid California Tow Truck Driver certificates and Driver's Licenses in the proper class pursuant to California Vehicle Code§§ 12804.9(b) and 13378 or any successor provision(s) thereto.

5.3. All OFFICIAL TOW SERVICE tow truck operators shall be required to have a safe driving record, be 18 years of age or older, and be subject to driving record and criminal background checks by DEPARTMENT. Within ten (10) days of the effective date of this Agreement, and annually thereafter (within 10 days of the anniversary of the effective date of this Agreement) OFFICIAL TOW SERVICE shall provide to DEPARTMENT a list of its tow truck operators, including driver's license numbers and a State of California Department of Motor Vehicles ("DMV") printout for each tow truck operator. Any subsequent employment of a new tow truck operator shall be reported in writing to DEPARTMENT immediately, including submittal of the above -referenced information.

5.4. OFFICIAL TOW SERVICE shall have an alcohol and drug program that includes at a minimum, maintaining an alcohol and drug free work environment. Any tow truck operator found working under the influence of alcohol or drugs shall immediately be removed from providing any service pursuant to this Agreement.

5.5. OFFICIAL TOW SERVICE shall participate in the DMV Employer Pull Notice Program.

5.6. OFFICIAL TOW SERVICE shall not employ, in the performance of services pursuant to this Agreement, any person convicted of or having pled nolo contendere to a crime involving a stolen vehicle, stolen property, violence, drugs or moral turpitude, fraud related to the towing business or vehicle repair, insurance fraud, or misdemeanor or felony driving while under the influence of alcohol or drugs, or the crimes listed in Vehicle Code § 13377 or any successor provision(s). If any employee is charged with any of the above -listed crimes, OFFICIAL TOW SERVICE shall immediately suspend that employee from duties under this Agreement pending the outcome of the criminal case.

5.7. OFFICIAL TOW SERVICE tow truck operators shall maintain acceptable standards of dress, including uniforms, and cleanliness while on duty in the community.

5.8. OFFICIAL TOW SERVICE tow truck operators shall cooperate with and abide by the instructions of DEPARTMENT'S officers.
4 Tow Service Agreement
145

5.9. Each OFFICIAL TOW SERVICE tow truck operator shall obtain from DEPARTMENT a clip -on identification tag which such operator shall wear at all times when performing services pursuant to this Agreement in order to allow ease of tow truck operator identification.

5.10. If any tow truck operator becomes ineligible to provide tow operator services under this Agreement, OFFICIAL TOW SERVICE shall immediately notify DEPARTMENT of such ineligibility and the reason(s) therefor.

6.0. TOWING SERVICE DUTIES.

After being requested to the scene by DEPARTMENT, OFFICIAL TOW SERVICE tow truck operators shall comply with all of the following:

6.1. Not move nor attach a tow truck to any vehicle until instructed to do so by the investigating officer of DEPARTMENT.

6.2. Cooperate with the investigating officer of DEPARTMENT in removing unsafely and/or illegally parked vehicles from the street, and in the storing or impounding of such vehicles as requested.

6.3. On collision calls, clean up and remove all debris from the accident scene, including but not limited to clean-up and removal of all vehicle fluids in the street with absorbent material, as directed by DEPARTMENT officers and § 27700 of the California Vehicle Code or any successor provision(s).

6.4. Provide the owner or driver of towed vehicles (when present at scene) with an OFFICIAL TOW SERVICE business card indicating where the vehicles will be stored or impounded (including address and telephone number).

6.5. Deliver upon request all personal property located within stored or impounded vehicles upon: (a) presentation of proper identification; and (b) in the case of impounded vehicles, presentation of a personal property release form executed by DEPARTMENT.

7.0. RESPONSE TIME.

7.1. OFFICIAL TOW SERVICE shall provide a response time of twenty (20) minutes.

Response time is the difference between the time OFFICIAL TOW SERVICE is notified and the time a tow truck arrives at the required location. Emergency conditions, as verified by local media or traffic enforcement may be acceptable reasons for not meeting the response time requirement.

Equipment or personnel shortage, or lack of availability, are not acceptable reasons for failure to meet response times.
service.

7.2. OFFICIAL TOW SERVICE shall give priority to all DEPARTMENT requests for 5 Tow Service Agreement
146

7.3. OFFICIAL TOW SERVICE dispatcher shall notify DEPARTMENT when a tow vehicle cannot respond immediately, give the reason for the delay, and an estimated time of arrival.

In the event of an additional delay, OFFICIAL TOW SERVICE dispatcher shall again notify DEPARTMENT and give the new estimated time of arrival. To ensure a timely response, DEPARTMENT, in its sole discretion, may cancel any call -for -service because of a response delay and may request service from another tow service provider.

7.4. If the tow truck unit(s) has not arrived at the scene within twenty (20) minutes from the time requested, DEPARTMENT, based on the urgency of the field situation, may request a different towing service to respond to the call, whether the different tow service has a contract with CITY or not.

7.5. If OFFICIAL TOW SERVICE telephone or radio is not promptly answered, or if the line is busy when called by DEPARTMENT after two (2) attempts, OFFICIAL TOW SERVICE being called will be bypassed and DEPARTMENT shall select another tow service.

7.6. If, while rendering assistance in response to a DEPARTMENT call for towing, a second DEPARTMENT call for towing is generated to OFFICIAL TOW SERVICE, tow truck operator shall, before responding to the second call, ensure that all vehicles at the first site are sufficiently clear of the roadway so that no obstruction to normal traffic exists. Once the second call is handled to conclusion, the vehicles at the first site may be towed as necessary.

8.0. EQUIPMENT STANDARDS.

8.1. OFFICIAL TOW SERVICE shall own or have leased to it at least three (3) tow trucks that will be based at its storage facilities located at 1041 N Kemp Street., Anaheim, CA 92801 and which trucks shall be available to perform towing services at all times during the term of this Agreement. At least one of said tow trucks shall have a lifting capacity of eight (8) tons.

8.2. OFFICIAL TOW SERVICE shall have at least two (2) rigs of one -ton capacity with rear dual wheels.

8.3. OFFICIAL TOW SERVICE vehicles shall be equipped as tow trucks in compliance with the provisions of the California Vehicle Code including, but not limited to, §§ 615, 24605, 25100, 27700, and 27907 or any successor provision(s) thereto. Tow trucks shall be equipped with red flares, lanterns or reflectors, hand tools, crow -bar, rope, broom, shovel, dustpan, absorbent material for clean-up of hazardous materials, fire extinguisher, portable red tail lights and stop lights for towed vehicles, equipment for opening locked vehicles, and safety chains. All vehicles and all related equipment are required to maintain California Highway Patrol Level I Certification and be able to show proof of such certification.

8.4. All OFFICIAL TOW SERVICE vehicles shall have available adequate equipment to handle large trucks, trailers, tractors and other heavy vehicle equipment. This includes a set of dollies capable of supporting any passenger vehicle.
6 Tow Service Agreement
147

8.5. OFFICIAL TOW SERVICE vehicles shall have a cable winch of sufficient size and capacity to retrieve vehicles that have gone over embankments or off traveled portions of roadways into remote areas or other difficult locations.

8.6. Motorcycles that are stored, impounded, or towed from a collision scene at the request of DEPARTMENT shall be hauled by a trailer that is designed to carry motorcycles, or by a flatbed truck.

8.7. Any equipment used and maintained by OFFICIAL TOW SERVICE shall be available for inspection by DEPARTMENT upon request. OFFICIAL TOW SERVICE vehicles shall be subject to random inspection by DEPARTMENT.

8.8. OFFICIAL TOW SERVICE shall be equipped for, and have personnel proficient in, unlocking locked vehicles. OFFICIAL TOW SERVICE shall unlock locked vehicles when requested to do so by DEPARTMENT.

8.9. Throughout the term of this Agreement, OFFICIAL TOW SERVICE shall maintain in a neat and clean manner and in good working condition its storage facilities and improvements thereon, and all vehicles, facilities, equipment, and materials used by OFFICIAL TOW SERVICE in the performance of the services required by this Agreement. Any additions to or deletions from the OFFICIAL TOW SERVICE tow truck fleet shall be immediately reported, in writing, to DEPARTMENT.

9.0. COMMUNICATIONS EQUIPMENT.

9.1. OFFICIAL TOW SERVICE shall install and maintain, to the satisfaction of CITY, at all times during the term of this Agreement, radio transmission and reception contact between OFFICIAL TOW SERVICE dispatcher and each OFFICIAL TOW SERVICE tow vehicle.

OFFICIAL TOW SERVICE shall also maintain and staff, on a 24-hour basis, a telephone to receive calls from DEPARTMENT and members of the public.

9.2. Use of Citizen's Band Class D radio equipment by the OFFICIAL TOW SERVICE is prohibited.

9.3. If telephones are the preferred means of communication for receipt of calls from DEPARTMENT, OFFICIAL TOW SERVICE shall provide a list of telephone numbers to be called in order of priority, and immediately upon any change in such telephone numbers or in the priority thereof shall notify DEPARTMENT in writing with the effective date of such change.

10.0. HOURS.

10.1. OFFICIAL TOW SERVICE shall provide twenty-four (24) hour towing service, seven (7) days a week, during the term of this Agreement. 7 Tow Service Agreement
148

10.2. OFFICIAL TOW SERVICE shall ensure that there will be an employee on call capable of being present or available for releasing impounded or stored vehicles to the public twenty-four (24) hours a day, seven (7) days a week.

11.0. VEHICLE IDENTIFICATION.

11.1. Each OFFICIAL TOW SERVICE vehicle shall display identification signs, in compliance with § 27907 of the California Vehicle Code or any successor provision(s). OFFICIAL TOW SERVICE shall not display any signs or advertising that indicates that OFFICIAL TOW SERVICE is an official towing service or police garage of CITY.

11.2. OFFICIAL TOW SERVICE shall not, through its advertisements or otherwise, in any way publicize any official or other business connection with CITY, nor shall OFFICIAL TOW SERVICE advertise any address or telephone number of CITY as a location or place to call for vehicle towing and storage service.

12.0. STORAGE SERVICE RESPONSIBILITIES.

12.1. OFFICIAL TOW SERVICE shall be responsible for all vehicles, accessories and equipment thereon, and all personal property therein, stored by it. It shall be OFFICIAL TOW SERVICE's duty to protect such stored vehicles, accessories, equipment, and property against all loss, damage by fire, theft, or other causes.

12.2. OFFICIAL TOW SERVICE shall be responsible for the negligent acts and omissions of its employees and for any property damage caused by OFFICIAL TOW SERVICE or its employees.

13.0. STORAGE FACILITY STANDARDS.

OFFICIAL TOW SERVICE shall make adequate provisions for the security of vehicles and property at its storage facilities, which shall at a minimum consist of all of the following:

13.1. All vehicles shall be stored in a building, or in an area or areas enclosed by a substantial wall or fence. The wall or fence shall be not less than six (6) feet in height, and shall have security features installed in such a manner as to prevent access over the top of the wall/fence, or the wall/fence shall be a minimum of eight (8) feet, provided that it complies with the requirements of § 23.81.100 of the Placentia Municipal Code or any successor provision(s) if within CITY.

13.2. All storage facilities shall be secured at all times and shall be adequately fenced with locked gates and shall have lighting adequate, in the opinion of DEPARTMENT, to maintain facility security.

13.3. The minimum total capacity of OFFICIAL TOW SERVICE storage facilities for storage pursuant to this Agreement shall be spaces for seventy-five (75) vehicles. 8 Tow Service Agreement
149

13.4. All storage facilities must be approved for security by the Chief of Police, or designee, and available for inspection by the DEPARTMENT at all times upon request of the DEPARTMENT.

13.5. OFFICIAL TOW SERVICE shall not perform any work upon any vehicle without first obtaining written permission from the owner of the vehicle. Notwithstanding the foregoing, all work on impounded vehicles shall be conducted pursuant to § 14 of this Agreement.

13.6. If OFFICIAL TOW SERVICE videotapes or otherwise records images of the storage facility, such videotape and photographs shall be maintained by OFFICIAL TOW SERVICE for at least thirty (30) days.

14.0. IMPOUND VEHICLES - INSIDE STORAGE.

14.1. Vehicles that have been impounded by order of DEPARTMENT shall not be released, lien sold, worked on, altered, or tampered with, without a written release from DEPARTMENT.

14.2. OFFICIAL TOW SERVICE shall maintain, without charge to DEPARTMENT, separate, fully enclosed, and secured garage storage facilities for a minimum of four (4) vehicles ordered impounded by DEPARTMENT ("Secure Impound").

14.3. DEPARTMENT shall have sole access to the Secure Impound when vehicles are being held for evidence.

14.4. DEPARTMENT shall designate when a vehicle is to be placed within Secure Impound. Vehicles placed into Secure Impound shall not be removed from Secure Impound until approved and authorized in writing by the investigating officer of DEPARTMENT.

14.5. OFFICIAL TOW SERVICE shall notify DEPARTMENT of any vehicles being impounded within CITY pursuant to private party impound requests immediately prior to commencement of the towing of such vehicles.

15.0. RELEASE OF VEHICLES.

15.1. OFFICIAL TOW SERVICE is responsible for the release of all vehicles impounded or stored by DEPARTMENT. Authority to release impounded or stored vehicles must be obtained from DEPARTMENT, in writing on DEPARTMENT's release form.

16.0. RECORDS.

16.1. OFFICIAL TOW SERVICE shall record and log the time each call is received, the time of dispatch, and the time of arrival. OFFICIAL TOW SERVICE shall keep, at its place of business, complete and accurate records of all vehicles towed, impounded, or stored at the request of DEPARTMENT, and the amount of charges accrued for each vehicle. 9 Tow Service Agreement
150

16.2. Record systems must provide for immediate access, upon inquiry by DEPARTMENT, to the following information:

16.2.1. Locate vehicle from DEPARTMENT record number.

16.2.2. Locate vehicle from license number only.

16.2.3. Locate vehicle from make, color, date and location of impound.

16.2.4. Date of fling all lien sale documents with DMV.

16.3. OFFICIAL TOW SERVICE shall submit a report, by the 10th day of each month, to DEPARTMENT, which shall include all of the following information for the preceding month:

16.3.1. Total DEPARTMENT impounds and storages.

16.3.2. Number of times dispatched by DEPARTMENT.

16.3.3. Number of calls for service resulting in impounds.

16.3.4. Number of calls for service that resulted in having to spend more than one hour on the call.

17.0. LIENS AND DISPOSALS.

17.1. OFFICIAL TOW SERVICE shall provide DEPARTMENT with a list of unclaimed vehicles thirty (30) days before they are scheduled to be disposed of or sold. On or before the 10th day of each month, OFFICIAL TOW SERVICE shall furnish DEPARTMENT a list of all vehicles that have been sold at lien sales during the previous month, and date of the action. The list shall include the vehicle owner's name, address, vehicle make, year and model, license number, VIN number, and DEPARTMENT record number. Copies of all lien sale documents shall be submitted with such list. The documents shall be dated and include all charges imposed on each sale.

17.2. OFFICIAL TOW SERVICE shall comply with all State law requirements for the disposal of unclaimed vehicles.

18.0. INSPECTION.

18.1. All real property and improvements thereon, and all facilities, equipment, and materials used by OFFICIAL TOW SERVICE in the performance of the services required under this Agreement shall upon request by DEPARTMENT be open to immediate inspection by the Chief of Police or his or her designee.
151

19.0. MOTORIST ASSISTANCE.

19.1. Whenever a motorist requests tow assistance from the DEPARTMENT and does not specify a particular tow company or membership agency, the service shall, in the sole discretion of DEPARTMENT, be assigned to either OFFICIAL TOW SERVICE or another tow service company awarded a contract for tow service by CITY. All charges arising out of such assistance assigned to OFFICIAL TOW SERVICE shall be the exclusive responsibility of OFFICIAL TOW SERVICE and the requesting motorist. DEPARTMENT shall not be liable for any charges whatsoever arising out of a motorist assistance call. OFFICIAL TOW SERVICE shall not charge such motorist more than the rates specified in this Agreement.

20.0. RISK.

20.1. OFFICIAL TOW SERVICE assumes all risk in the event of damage, theft, fire or otherwise, of the vehicles or any other property towed, impounded, or stored by OFFICIAL TOW SERVICE, its employees or agents.

20.2. Notwithstanding any other term or provision herein contained, when responding to a call from DEPARTMENT, OFFICIAL TOW SERVICE shall have no claim whatsoever against CITY or any right to recover from CITY for the cost of any of the services it renders in the performance of this Agreement. OFFICIAL TOW SERVICE shall look solely and exclusively to the owner of the vehicle towed, impounded, or stored for payment of the services provided by the OFFICIAL TOW SERVICE.

20.3. OFFICIAL TOW SERVICE shall assume the entire risk of nonpayment of any service charges incurred pursuant to this Agreement.

21.0. INSOLVENCY.

21.1. OFFICIAL TOW SERVICE shall not, without the prior written consent of the Chief of Police of CITY, or his or her designee, suffer or permit either the appointment of a receiver to take possession of all, or substantially all of the assets of OFFICIAL TOW SERVICE, or make a general assignment of such assets for the benefit of creditors. Any such action taken or suffered by OFFICIAL TOW SERVICE under any insolvency or bankruptcy proceeding constitutes a breach of contract by OFFICIAL TOW SERVICE, and all property assigned by CITY for safe care shall be "released" to another assigned service provider, as specified by the Chief of Police, or his or her designee, with a reimbursement for towing, storage, and related fees, borne by the service provider assuming the new responsibility.

22.0. SUCCESSORS.

22.1. Each of the terms and conditions of this Agreement shall inure to the benefit of and shall bind, as the case may be, the Parties hereto, and each and every of their respective heirs, executors, administrators, successors, assignees, and legal representatives of the Parties. 11 152

23.0. INDEMNITY.

23.1. OFFICIAL TOW SERVICE shall protect, defend, indemnify, and hold harmless CITY, its elected and appointed officials, officers, employees and agents, against, without limitation, all claims, demands, debts, obligations, liabilities, judgments, actions, penalties, fines, costs, expenses and attorney's fees of every kind and description arising out of or connected in any way with OFFICIAL TOW SERVICE's performance under this Agreement, including but not limited to (1) workers' compensation, (2) any claim or action relating to the preparation of vehicles for towing; (3) any claim or action relating to the towing of vehicles; (4) any claim or action relating to the storage, impound, and maintenance activities; and (5) any claim or action relating to the sale or disposal of vehicles pursuant to this Agreement.

24.0. ASSIGNMENT.

24.1. OFFICIAL TOW SERVICE shall not assign its rights or delegate or otherwise transfer its obligations under this Agreement to any other person or entity without the prior written consent of CITY, which consent shall not be unreasonably withheld. Any such assignment without the prior written consent of CITY shall be void and any such attempted assignment shall constitute a material breach of this Agreement.

25.0. INSURANCE.

OFFICIAL TOW SERVICE, at its sole cost and expense, shall purchase and maintain throughout the term of this Agreement, the following insurance policies:

25.1. Commercial Business Automobile Liability, as required by California Vehicle Code § 16500.5. Said coverage shall include bodily injury and property damage, with a combined single limit of not less than $750,000 per occurrence for Class A tow trucks, and $1,000,000 for Class B, C, and/or D tow trucks. These minimum standards are to include non -owned and hired auto coverage.

Uninsured Motorist, with a combined single limit of not less than the legal minimum.

On -Hook Coverage / Garage Keepers Legal Liability insuring the vehicle in tow, with the following not less than the following limits based on the size of the tow truck:

A. Class A tow truck $50,000
B. Class B tow truck $75,000
C. Class C tow truck $150,000
D. Class D tow truck $150,000
Garage Liability Insurance, including premises and operations coverage for bodily injury and property damage with a combined single limit of not less than $500,000. 12 153

Those tow truck operators removing a vehicle from a hazardous materials incident to the nearest reasonable and safe stopping location will be considered to be transporting property subject to normal minimum insurance requirements of§ 34631.5 of the California Vehicle Code.

All such policies shall be primary, and any other policies maintained by or providing protection for CITY shall be excess or secondary but noncontributing.

25.2. OFFICIAL TOW SERVICE shall carry and pay for workers' compensation insurance as is required to fully protect OFFICIAL TOW SERVICE and its employees under California Workers' Compensation Insurance Law.

25.3. All insurance required pursuant to this Section shall: Be issued by a company authorized by the Insurance Department of the State of California and rated A-, VII or better by the latest edition of Best's Key Rating Guide, except that CITY will accept workers' compensation insurance rated B, VII or better or from the State Compensation Fund. The workers' compensation insurance company shall agree to waive all rights of subrogation against CITY for losses paid under the terms of the policy, which arose from the work performed by the named insured. Each such policy shall provide that it shall not be cancelled or modified except after thirty (30) days prior written notice to CITY.

25.4. Upon execution of this Agreement, the OFFICIAL TOW SERVICE shall provide CITY certificates of insurance and endorsements evidencing the policies fulfilling the requirements of this Section. If self-insured for workers' compensation, OFFICIAL TOW SERVICE shall submit to CITY a copy of its certification of self-insurance issued by the Department of Industrial Relations. In addition, OFFICIAL TOW SERVICE shall prior to commencing work, shall sign and file with CITY a certification as follows:
"I am aware of the provisions of§ 3700 of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this Agreement."

25.5. The insurance policies specified in this Section, except for workers' compensation policies, shall name CITY and its elected and appointed officials, officers, agents, and employees as additional insureds by endorsement to the policies.

25.6. If OFFICIAL TOW SERVICE does not keep and maintain all such insurance policies in full force and effect at all times during the term of this Agreement, CITY may elect to treat such failure as a breach of this Agreement and terminate the Agreement as provided herein.

25.7. If CITY reasonably determines that the amounts of insurance held by OFFICIAL TOW SERVICE pursuant to this Agreement are no longer sufficient, or that additional types of coverage are needed, OFFICIAL TOW SERVICE shall modify the existing coverage or obtain additional policies, as CITY shall reasonably determine All new policies shall be on the terms and conditions herein contained.
13 154

25.8. OFFICIAL TOW SERVICE shall annually, within ten (10) days of the anniversary of the effective date of this Agreement, provide to CITY evidence that all insurance required pursuant to this Agreement continues to be in full force and effect.

26.0. INTEGRATION.

26.1. This Agreement fully expresses all understandings between the Parties with respect to the subject matter of this Agreement and supersedes all prior or contemporaneous oral or written understandings or agreements regarding the matters covered by this Agreement.

27.0. AMENDMENTS.

27.1. No modification, amendment, addition to, deletion, or alteration of the terms of this Agreement, whether written or oral, shall be valid unless made in writing and formally approved and executed by all Parties. Rates and Charges established in § 39 of this Agreement may be modified upon request therefor, made in writing, and addressed to the Chief of Police. The Chief of Police may recommend such modifications as justified by OFFICIAL TOW SERVICE to City's City Administrator who shall make a final determination. If modifications to the Rates and Charges are approved by the City Administrator, the provisions of Exhibit "A" shall be amended accordingly with the date of approval thereof set out on the amended Exhibit "A."

28.0. NO WAIVER.

28.1. No delay or omission in the exercise of any right or remedy available hereunder shall impair such right or remedy or be construed as a waiver. Any waiver of any default or condition hereunder must be in writing and shall not be construed as a waiver of any other default concerning the same or any other provision of this Agreement.

28.2. The waiver by CITY of any breach by OFFICIAL TOW SERVICE of any of the provisions of this Agreement, shall not constitute a continuing waiver or a waiver of any subsequent breach or default by OFFICIAL TOW SERVICE either of the same or a different provision of this Agreement.

29.0. THIRD PARTY BENEFICIARIES.

29.1. The terms of this Agreement are intended to confer benefits only on the Parties hereto. No rights of action shall accrue to any other persons or entities under this Agreement.

30.0. INDEPENDENT CONTRACTOR.

30.1. The Parties hereto, in the performance of this Agreement, shall be acting in an independent capacity and not as agents, employees, partners, or joint venturers with one another.

OFFICIAL TOW SERVICE and its employees are not employees of CITY and are not entitled to any of the rights, benefits, or privileges of CITY's employees including, but not limited to, medical, unemployment, or workers' compensation insurance.
14 155

31.0. CONTROL.

31.1. Neither CITY nor its elected or appointed officials, agents or employees shall have any control over the conduct of OFFICIAL TOW SERVICE employees except as herein set forth.

32.0. EXECUTION OF AGREEMENT.

32.1. The persons executing this Agreement hereby represent and warrant that the execution of this Agreement and the performance of the terms and conditions of this Agreement have been authorized by all requisite corporation, Federal, State, municipal or other entity requirements and that the undersigned have the right, power, legal capacity and authority to execute and enter into this Agreement.

33.0. DRY RUNS.

33.1. CITY shall not be liable to pay to OFFICIAL TOW SERVICE any charge whatsoever or fee for a call, that does not result in a chargeable service being rendered by OFFICIAL TOW SERVICE (i.e., a "dry run").

33.2. In the event of CITY errors in impounding vehicles, OFFICIAL TOW SERVICE shall cause the release of vehicles upon the direction of the DEPARTMENT without charge for towing or storage.

34.0. CITY VEHICLE TOWING.

34.1. OFFICIAL TOW SERVICE shall provide, without cost to CITY, emergency towing of CITY Vehicles as requested by CITY.

35.0. RESPONSIBILITY.

35.1. It shall be the responsibility of OFFICIAL TOW SERVICE to provide equipment and to perform the duties expressed in this Agreement. OFFICIAL TOW SERVICE is hereby granted authority to utilize additional resources whenever deemed necessary to perform its tow service duties. This may include, but is not limited to, personnel and/or equipment of another tow operator. This, however, shall not relieve OFFICIAL TOW SERVICE of its duties and responsibilities, and any additional cost incurred shall not be charged to CITY.

36.0. EXCLUSIONS.

36.1. Excluded from this Agreement are those vehicles, or parts thereof, which are disposed of through Abandoned Vehicle Abatement Program by delivery to an authorized automobile dismantler, pursuant to § 22660 of the California Vehicle Code or successor provision(s). No charge shall be assessed against CITY or the owner of any vehicle that is towed, stored, or dismantled under the provisions of the Abandoned Vehicle Abatement Program. 15 156

37.0. BREACH OF CONTRACT.

Any of the following acts if committed by OFFICIAL TOW SERVICE during the performance of this Agreement shall be considered a material breach of this Agreement:

37.1. Obtaining a tow contract from CITY by use of fraud, trick, dishonesty, or forgery.

37.2. Towing a vehicle to a location other than approved by DEPARTMENT as an authorized storage facility without first receiving prior authorization to do so by DEPARTMENT.

37.3. After towing a vehicle to OFFICIAL TOW SERVICE storage facilities, without authorization from DEPARTMENT, towing the vehicle to another location for storage or impound.

37.4. Defrauding or conspiring to defraud any owner of any vehicle, any insurance company, or any other person financially interested in the towing, storage, or impound of any vehicle.

37.5. Moving, tampering with, or removing a vehicle involved in a traffic collision prior to the arrival of law enforcement officers at the scene.

37.6. If CITY receives five (5) or more complaints regarding OFFICIAL TOW SERVICE activities during any twelve (12) month period, which DEPARTMENT, in its reasonable discretion, determines to be justified, regarding the service, or lack thereof, provided by OFFICIAL TOW SERVICE.

37.7. Failing to comply with any provision of this Agreement.

37.8. Repeated or flagrant violations of the provisions of the California Vehicle Code.

37.9. Demonstrating a pattern or practice of failing to answer calls -for -service, respond promptly to calls, and/or to maintain clean, orderly, and secured storage facilities.

37.10. Failing to obtain and maintain a current valid CITY business license.

37.11. Commission of any unlawful, false, fraudulent, deceptive, or dangerous act while conducting its towing operation business.

37.12. Allowing the insurance coverage required herein to either be withdrawn or lapse or to no longer be in force for any reason.

37.13. Dissolution of business or bankruptcy.

37.14. Assignment of this Agreement, or any right or interest stated herein, without the prior written consent of CITY.

37.15. Any recurring deviation from CITY's approved charges as specified herein. 16 157

38.0. ACTS OR OMISSIONS OF REPRESENTATIVES.

38.1. It is understood and agreed by the parties that the acts and/or omissions of the owner(s), officers, operators, officials, employees, agents and representatives of OFFICIAL TOW SERVICE in the performance of the services and obligations under this Agreement shall constitute the acts and/or omissions of OFFICIAL TOW SERVICE.

39.0. CHARGES.

39.1. All charges for towing, impound, storage, and other services required to be performed by OFFICIAL TOW SERVICE under the terms and conditions of this Agreement shall not exceed those charges approved by CITY, which are set forth in the schedule of rates in "Exhibit Al" attached hereto and by this reference incorporated herein.

39.2. All rates and charges shall be conspicuously posted in OFFICIAL TOW SERVICE's office, with a copy available in all tow vehicles, and shall be available for review by CITY personnel and/or persons for whom tow service is provided. All customer bills shall be itemized. It will be OFFICIAL TOW SERVICE's responsibility to collect payment for services it renders under this Agreement from the vehicle owners, and CITY shall not be responsible in any way whatsoever for payment of these charges.

39.3. Routine clean-up is included in the basic tow charge. However, when clean-up is determined to be excessive (by mutual agreement of OFFICIAL TOW SERVICE and DEPARTMENT), the rate shall be the labor rate referenced in§ 39.1 (Labor).

39.4. OFFICIAL TOW SERVICE shall accept a valid bank credit card or cash for payment of towing and storage by the registered owner, legal owner, or agent of the owner claiming the vehi9le.

39.5. In the event that unforeseen changes in the tow service industry seriously affect OFFICIAL TOW SERVICE's ability to continue to provide the towing, impound, and storage services required under this Agreement, OFFICIAL TOW SERVICE may petition DEPARTMENT for a re-evaluation of the agreed-upon charges and rates set forth in this Section. OFFICIAL TOW SERVICE shall bear the burden of providing such proof as is necessary to show that the continuance of the current rates and charges are so financially detrimental to OFFICIAL TOW SERVICE that they would place OFFICIAL TOW SERVICE in danger of default. The Parties may, by written amendment pursuant to § 27, adjust the terms of this Agreement where circumstances beyond the control of either party require modification or amendment.

40.0. NOTICES.

40.1. Any notices required or permitted under this Agreement shall be in writing and shall be delivered personally or sent by U.S. Mail, first class postage prepaid, return receipt requested, addressed as follows:
17 158

CITY:

OFFICIAL TOW SERVICE:

City of Placentia
Attn: Chief of Police
401 E. Chapman Ave.

Placentia, CA 92870
Anaheim Fullerton Towing Company
Attn: Mark Saehlenou
1041 N Kemp St.

Anaheim, CA 92801

41.0. CHANGE IN CIRCUMSTANCES.

41.1. Each party shall promptly notify the other party of any legal impediment, change of circumstances, pending litigation, or any other event or condition that may adversely affect such party's ability to carry out any of its obligations under this Agreement.

42.0. SEVERABILITY.

42.1. If any term or condition of this Agreement, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of this Agreement, or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby.

43.0. VENUE.

43.1. This Agreement shall be governed by and construed in accordance with the laws of the State of California. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California, and the parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding California Code of Civil Procedure § 394.

44.0. FRANCHISE FEE.

44.1. A. Operators participating in the rotational tow program shall agree to pay the City a franchise fee in consideration for being selected as an Official Tow Service of the City and to partially reimburse the City for actual and reasonable costs incurred in connection with the towing program (pursuant to State of California Vehicle Code, Div. 5, Chap 9, § 12110).

The amount of this fee will be set by the City Council at $75.00 per towed vehicle. The Franchise Fee is payable on the last working day of each calendar quarter during the term hereof.

The Franchise Fee for any period less than a calendar quarter shall be prorated on the basis of a ninety (90) day quarter.

B. Damages: In the event OFFICIAL TOW SERVICE fails to submit to CITY all required Franchise Fees, together with all documents and supplemental material required hereunder, within 18 159

the time set forth herein, or as may be extended by written consent of the parties hereto, OFFICIAL TOW SERVICE shall pay to CITY, as liquidated damages and not as a penalty, the sum of One Hundred dollars ($100.00) per day for each day OFFICIAL TOW SERVICE is in default, which sum represents a reasonable endeavor by the parties hereto to estimate a fair compensation for the foreseeable losses that might result from such a default in performance by OFFICIAL TOW SERVICE, and due to the difficulty which would otherwise occur in establishing actual damages resulting from such default.

C. Notwithstanding any other term or provision hereof, in the event OFFICIAL TOW SERVICE fails to submit to CITY all required Franchise Fees within twenty (20) days from the conclusion of any calendar quarter, in addition to the liquidated damages due hereunder, CITY may terminate this agreement upon five (5) days written notice.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as follows, to be effective on the day and year first written above.

CITY OF PLACENTIA,
A municipal corporation
Date:

Rosanna Ramirez, Acting City Administrator
ATTEST:

City Clerk and ex -officio Clerk
of the City of Placentia
ANAHEIM-FULLERTON TOWING:

Date:

President
Taxpayer ID Number
APPROVED AS TO FORM:

Date:

Christian L. Bettenhausen, City Attorney
160

EXHIBIT Al

PLACENTIA POLICE DEPARTMENT
Effective December 3, 2024

SCHEDULE OF RATES

COST RECOVERY PROCEDURE FOR OFFICIAL TOW CONTRACTOR
Towing Class "A" Class "B" Class "C" Class "D"
Hourly Rate (Maximum $275.00 $325.00 $425.00 $525.00
allowed)
Storage Rate (Outside) $75.00 $85.00 $100.00 $115.00
Storage Rate (Inside) $80.00 $90.00 $105.00 $125.00
Long-term Storage Daily Rate Daily Rate Daily Rate Daily Rate After-hours release $105.00 $175.00 $210.00 $260.00
Service Call - Minimum $105.00 $175.00 $210.00 $260.00
Labor Rate (Per hour)' $110.00 $110.00 $110.00 $110.00
Special Equipment at Scene2 1 hour 1 hour 1 hour 1 hour minimum minimum minimum minimum
Class Definitions:

Class A= Standard duty truck/ Tow truck under 26k GVWR
Class B = Medium duty truck/ Tow truck 26k -47k GVWR
Class C = Heavy duty truck/ Tow truck 48k GVWR and air brakes are required.

Class D = Super heavy duty truck / Tow truck 52k GVWR or more and air brakes required. 'Labor Rate
If a contract tow company works beyond the one (1) hour minimum and into the next hour, the company may charge per minute of the hourly rate up to the conclusion of the call (i.e.: $150 hour rate= $2.50 per minute rate).
2SDecial Eauioment
Specialized equipment used at a scene or at a tow yard facility that is required due to circumstances of the incident can be charged dollar for dollar if the circumstances are justified by the tow company. An additional 10% use rate may be imposed for the use of the equipment beyond the one (1) hour minimum. Justification, in written form, is required for the additional charge that explains the circumstances.
161

ACORD®

CERTIFICATE OF LIABILITY INSURANCE

DATE (MM/DD/YYYY)
4/25/2024
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

PRODUCER I CON MU McCall Honaker
NAME:
(PAHONE Ext): (888) 918-3960 I A/c, No):

E-MAIL [email protected]
ADDRESS:

INSURER(S) AFFORDING COVERAGE NAIC #
INSURER A: United Specialty Insurance Co 12537
INsuRERB:Redwood Fire & Casualty Company 11673
INSURER C : Indian Harbor Insurance Co 36940
INSURER D : Praetorian Insurance Company 37257
INSURER E :

INSURER F :

The Liberty Company Insurance Brokers
Lic #0D79653
5955 De Soto Ave, Ste 250
Woodland Hills CA 91367

INSURED
P & H Enterprises, DBA: Anaheim Fullerton Towing
1041 N Kemp Street
Anaheim CA 92801
COVERAGES CERTIFICATE NUMBER:24-25 REVISION NUMBER:

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSR TYPE OF INSURANCE ADDL SUBR POLICY EFF POLICY EXP WLIMITS LTR INSD Vn POLICY NUMBER (MM/DD/YYYYI (MM/DD/YYYYI
A
B

X COMMERCIAL GENERAL LIABILITY

CLAIMS -MADE
X
OCCUR
X Deductible- $5,000 BIPD
GEN'L AGGREGATE LIMIT APPLIES PER:

X
POLICY
PRO-
JECT
OTHER:

AUTOMOBILE LIABILITY

ANY AUTO

ALL OWNED
AUTOS

X HIRED AUTOS
X
X
LOC

SCHEDULED
AUTOS

NON -OWNED
AUTOS

UMBRELLA LIAB X
C x - EXCESS LIAB
DED 1 1 RETENTION $

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY

ANY PROPRIETOR/PARTNER/EXECUTIVE
OFFICER/MEMBER EXCLUDED?
D (Mandatory in NH) y QWC4002182 1/1/2024 1/1/2025
If yes, describe under
DESCRIPTION OF OPERATIONS below
A Garage Keepers Legal Liability ATN2448533 4/26/2024 4/26/2025 B On Hook/Cargo 01TRM04995202 1/1/2024 1/1/2025
OCCUR

CLAIMS -MADE
YIN
X ATN2448533
N/A
01TRM04995202
4/26/2024 4/26/2025
1/1/2024 1/1/2025
SXS006331501 4/26/2024 4/26/2025
EACH OCCURRENCE $ 1,000,000
DAMAGE TO RENTED 50,000
PREMISES (Ea occurrence) $
MED EXP (Any one person) $ 5,000
PERSONAL & ADV INJURY $ 1,000,000
GENERAL AGGREGATE $ 2,000,000
PRODUCTS - COMP/OPAGG $ 2,000,000
COMBINED SINGLE LIMIT $ 1,000,000
(Ea accident)
BODILY INJURY (Per person) $
BODILY INJURY (Per accident) $

PROPERTY DAMAGE
(Per accident)
EACH OCCURRENCE $ 5,000,000
AGGREGATE $ 5,000,000

X I STATUTE I I EERH
E.L. EACH ACCIDENT $ 1,000,000
E.L. DISEASE - EA EMPLOYEE $ 1,000,000
E.L. DISEASE - POLICY LIMIT $ 1,000,000
$1,000,000Ded $1,000 Comp/Coll
l00k/200k/500k Auto Schedule File $5,000 Ded
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) City of Placentia, its elected and appointed officers, officials, employees and agents are named as an Additional Insureds as respects liability arising out of the operations of the named insured. General Liability primary and noncontributory and waiver of subrogation wording applies. Commercial Auto additional insured & waiver of subrogation applies. Workers Compensation waiver of subrogation wording applies.

CERTIFICATE HOLDER CANCELLATION
City of Placentia
401 E. Chapman Ave.

Placentia, CA 92870
ACORD 25 (2014/01)
INS025 (201401)

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

The ACORD name and logo are registered marks of ACORD 162

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BLANKET ADDITIONAL INSURED ENDORSEMENT
This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM

GARAGE COVERAGE FORM

TRUCKERS COVERAGE FORM
In consideration of payment of the additional premium listed below, LIABILITY COVERAGE is extended to any person or organization you are required to add to this policy as an additional insured in a written agreement between you and the additional insured that is executed prior to the "accident" provided that:
1) such insurance applies only to the ownership, maintenance or use of a covered auto; and 2) such insurance applies only to acts or omissions by you, your agents or your "employees" while such covered auto is being used in your business; and
3) such insurance does not apply to the acts or omissions of the additional insured or any of the additional insured's agents or "employees" other than you; and
4) such insurance does not apply if the additional insured is subject to motor carrier insurance requirements and is not insured for hired "autos" under an "auto" liability insurance form that insures on a primary basis the owners of the "autos" and their agents and "employees" while the "autos" are being used exclusively in the additional insured's business and pursuant to operating rights granted to the additional insured by a public authority; and
5) such inclusion of additional insured shall not increase our limit of liability under this policy.

All other terms, conditions and agreements remain unchanged.

Company Name
Redwood Fire and Casualty Insurance Company
Named Insured

P & H ENTERPRISES INC
M-5876 (05/2016)
Additional Premium: $
Policy Number
Endorsement Effective
Countersigned by
1,000
01 TRM 049952 - 02
01/01/2024 12:01 AM
(Authorized Representative)
(The Attaching Clause need be completed only when this endorsement is issued subsequent to preparation of the policy .) M-5876 (05/2016)
01/04/2024
163

POLICY NUMBER: ATN2448533 COMMERCIAL GENERAL LIABILITY
CG 20 11 04 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED - MANAGERS OR

LESSORS OF PREMISES
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE
Designation Of Premises (Part Leased To You):

As Required By Written Contract With The Named Insured, Fully Executed Prior To The Named Insured's Work Name Of Person(s) Or Organization(s) (Additional Insured):

As Required By Written Contract With The Named Insured, Fully Executed Prior To The Named Insured's Work Additional Premium: $ Included
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

A. Section II — Who Is An Insured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule, but only
with respect to liability arising out of the
ownership, maintenance or use of that part of the
premises leased to you and shown in the
Schedule and subject to the following additional
exclusions:

This insurance does not apply to:

1. Any "occurrence" which takes place after you
cease to be a tenant in that premises.

2. Structural alterations, new construction or
demolition operations performed by or on
behalf of the person(s) or organization(s)
shown in the Schedule.

However:

1. The insurance afforded to such additional
insured only applies to the extent permitted
by law; and

2. If coverage provided to the additional insured
is required by a contract or agreement, the
insurance afforded to such additional insured
will not be broader than that which you are
required by the contract or agreement to
provide for such additional insured.

B. With respect to the insurance afforded to these
additional insureds, the following is added to
Section III — Limits Of Insurance:

If coverage provided to the additional insured is
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:

1. Required by the contract or agreement; or

2. Available under the applicable Limits of
Insurance shown in the Declarations;
whichever is less.

This endorsement shall not increase the
applicable Limits of Insurance shown in the
Declarations.

Page 1 of 1 ends

POLICY NUMBER:ATN2448533 COMMERCIAL GENERAL LIABILITY
CG 24 04 05 09

WAIVER OF TRANSFER OF RIGHTS OF RECOVERY

AGAINST OTHERS TO US
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

SCHEDULE
Name Of Person Or Organization:

As Required By Written Contract With The Named Insured, Fully Executed Prior To The Named Insured's Work Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

The following is added to Paragraph 8. Transfer Of
Rights Of Recovery Against Others To Us of
Section IV — Conditions:

We waive any right of recovery we may have against
the person or organization shown in the Schedule
above because of payments we make for injury or
damage arising out of your ongoing operations or
"your work" done under a contract with that person
or organization and included in the "products -
completed operations hazard". This waiver applies
only to the person or organization shown in the
Schedule above.

Page 1 of 1 ends

WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 04 03 06 (Ed. 04-84)

WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT -CALIFORNIA We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule.

The additional premium for this endorsement shall be 2% of the California workers' compensation premium otherwise due on such remuneration.

Schedule
Any person or organization for which you have agreed to waive your rights of recovery in a written contract, provided such contract was executed prior to date of loss.

This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective 01/01/2024
Insured P & H ENTERPRISES INC
Policy No. QWC4002182
Insurance Company PRAETORIAN INSURANCE COMPANY
Countersigned By
Endorsement No. 001
QWC4002182 20240101 001

POLICY NUMBER: ATN2448533

COMMERCIAL GENERAL LIABILITY
CG20180413
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED -

MORTGAGEE, ASSIGNEE OR RECEIVER
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE
Name Of Person(s) Or Organization(s)
As Required By Written Contract With The Named Insured, Fully Executed Prior To The Named Insured's Work
Designation Of Premises
As Required By Written Contract With The Named
Insured, Fully Executed Prior To The Named Insured's
Work
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

A. Section II — Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to their
liability as mortgagee, assignee, or receiver and arising out of the ownership, maintenance, or use of the
premises by you and shown in the Schedule.

However:

1. The insurance afforded to such additional insured
only applies to the extent permitted by law; and

2. If coverage provided to the additional insured is
required by a contract or agreement, the insurance
afforded to such additional insured will not be
broader than that which you are required by the
contract or agreement to provide for such additional
insured.

B. This insurance does not apply to structural alterations, new construction and demolition operations performed
by or for that person or organization.

C. With respect to the insurance afforded to these
additional insureds, the following is added to Section
III — Limits Of Insurance:

If coverage provided to the additional insured is
required by a contract or agreement, the most we will
pay on behalf of the additional insured is the amount of insurance:

1. Required by the contract or agreement; or

2. Available under the applicable Limits of Insurance
shown in the Declarations;
whichever is less.

This endorsement shall not increase the applicable
Limits of Insurance shown in the Declarations.

Page 1 of 1 ends

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ANAHEIM HILLS

RESOLUTION NO. R-2024-81

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PLACENTIA, CALIFORNIA ISSUING CERTIFICATES OF

PUBLIC CONVENIENCE AND NECESSITY AND

APPROVING THE OFFICIAL TOW SERVICE AGREEMENT
A. Recitals
(i). Chapter 6.76 of the Placentia Municipal Code provides for the establishment of tow service provider(s) and for the issuance of a Certificate of Convenience and Necessity for such services.
(ii). In July 2021, the Chief of Police issued a Request for Proposals and Statement of Qualifications to provide for towing services for the Placentia Police Department regarding the towing and storing of vehicles involved in accidents or disabled for other causes, towing and storing of vehicles which for other reasons are within the jurisdiction of the Placentia Police Department, including but not limited to the towing of improperly parked vehicles, vehicles that obstruct or impede the flow of traffic, emergency lanes, walkways or handicapped parking spaces, impounded/forfeited vehicles, and/or vehicles seizure as evidence.
(iii). On October 5, 2021, the Placentia City Council awarded a contract to Anaheim Fullerton Towing Company for Official Tow Services, and the City wishes to extend the contract until June 30, 2025.
(iv). Anaheim Fullerton Towing continues to comply, in all particulars, with the requirements of Placentia Municipal Code Section 6.76, and is in mutual agreement to provide continued services, and has submitted a rate increase pursuant to Section

6.76.060, Change of Rates -Procedure, by giving thirty (30) days notice. (v). Pursuant to Section 6.76.070, the City Council makes the Finding that the tow service rates are fair and reasonable and wishes to approve them.

B. Resolution

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:

1. In all aspects as set forth in the Recitals, of this Resolution.

2. Based upon the evidence, the City Council finds that Anaheim Fullerton Tow Company continues to be in compliance with Placentia Code Section 6.76 and finds that the tow rates are fair and reasonable.

Resolution R-2024-81

Page 1 of 2 ends

171

3. Based upon the finding set forth herein, the City Council hereby issues a Certificate of Public Convenience and Necessity to Anaheim Fullerton Towing and approves the proposed rate increase.

4. Based upon the Findings set forth herein, the City Council hereby approves the Official Tow Services Agreement with Anaheim Fullerton Tow Company and authorizes the Mayor to execute said Agreement.

APPROVED and ADOPTED this 3rd day of December 2024.

Jeremy B. Yamaguchi, Mayor
ATTEST:

Robert S. McKinnell, City Clerk

STATE OF CALIFORNIA

COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 3rd day of December 2024 by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:

Christian L. Bettenhausen, City Attorney
Resolution R-2024-81

Page 2 ends

172

Placentia City CouncilDecember 3, 2024

Placentia City Council
December 3, 2024