Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
NON-EXCLUSIVE FRANCHISE
AGREEMENT
FOR TOW SERVICES BETWEEN
THE CITY OF UNION CITY AND
JACK JAMES TOW SERVICE,INC.
This agreement for Tow Services (this “Agreement”) is entered into on July 1, 2026 (the “Effective Date”) between the CITY OF UNION CITY, a municipal corporation, (“City”) and Jack James Tow Service, Inc., with offices located at 549 “C” Street, Hayward, CA 94541 (“Contractor”) (together sometimes referred to as the “Parties”). This Agreement contains rules and regulations that Contractor agrees to comply with in order to be placed on the rotational tow list with the City.
Section 1. SERVICES. In accordance with the terms and conditions set forth in this Agreement, Contractor agrees to perform all services described in the Scope of Services, attached as Exhibit A, which is incorporated herein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail.
1.1 Term of Services. This Agreement shall begin on the Effective Date and shall end on June 30,2031, five (5) years from the date this Agreement was executed, unless the term of the Agreement is otherwise terminated or modified, as provided for herein. If the performance of the Scope of Services extends beyond the five (5) year term of this Agreement, then the term of this Agreement shall be extended solely for and until completion of the Scope of Services.
1.2 Standard of Performance. Contractor shall diligently perform all services required in connection with this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Contractor is engaged in the geographical area in which Contractor practices its profession.
1.3 Assignment of Personnel. Contractor shall assign only competent personnel to perform services in connection with this Agreement.
Contractor shall ensure that 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 the various types of vehicles serviced through the City. Tow truck drivers shall be at least 18 years of age and shall possess the proper class license and certificates for the towed and towing vehicle Class A licenses must be endorsed to allow operation of special vehicle configurations and/or special cargoes. All training documentation shall be submitted to the City for each tow truck driver.
Contractor shall provide a current list of personnel performing services in connection with this Agreement upon execution of this Agreement.
Contractor shall immediately notify City upon any change in personnel Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
status related to personnel performing services in connection with this Agreement including the addition of new drivers or employees, the termination of any drivers or employees or a change in employee status.
Prior to any personnel performing work on behalf of Contractor pursuant to this Agreement, the personnel must complete a criminal background and driving record check and drivers must be enrolled in the Pull Notice Program as required by the California Vehicle Code.
Contractor shall maintain records of background checks and Pull Notice Program enrollment pursuant to this Agreement. Contractor shall, at a minimum, maintain the following information for personnel performing service in connection with this Agreement:
1. Full legal name
2. Date of birth
3. California driver’s license number
4. Copy of valid medical certificate (if required)
5. Job title/description
6. Current home address
7. Current phone number
8. Type(s) of truck(s) the personnel has/have been trained to operate (if applicable)
9. Current Pull Notice
Contractor shall not utilize personnel to provide services pursuant to this Agreement who, within the thirty-six months preceding the date of his/her service with Contractor, or who in the course of his/her service with Contractor, has been convicted of one or more of the following crimes:
1. Auto theft, burglary, possession of stolen property, grand or petty theft;
2. Fraud;
3. Stolen or embezzled property;
4. A crime of violence or a crime of moral turpitude;
5. Any crime that requires registration as a sex and/or arson offender;
6. A violation of the Health and Safety Code relating to narcotics or dangerous drugs;
7. A violation of Sections 4461, 4462b, 4463, or 5017a of Division 3 of the California Vehicle Code;
8. A violation of any provision of Division 4 of the California Vehicle Code; or
9. A crime relating to illegal acquisition of vehicles or vehicle parts or documents relating to vehicle registration or ownership.
Contractor shall not utilize any tow truck drivers to provide services pursuant to this Agreement that receive four or more violation point counts in a 12-month period, six or more violation point counts in a 24-month period or eight or more violation point counts in a 36-month period, as referenced in California Vehicle Code Section 12810.5.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
If Contractor or any personnel providing services pursuant to this Agreement has been removed, suspended, or disciplined by any other public agency, including but not limited to the California Highway Patrol, Contractor must notify the City in writing within twenty-four (24) hours.
1.4 Discipline and Termination. The City may take disciplinary action pursuant to Appendix A of Exhibit B. The City may terminate this Agreement if Contractor fails to comply with Chapter 10.17 of the Union City Municipal Code or this Agreement. The City shall provide Contractor written notice of termination along with the reasons for termination, facts supporting termination, and ability to appeal pursuant to Chapter 10.17 of the Union City Municipal Code twenty-four hours prior to the effective date of the termination.
Contractor may terminate this Agreement at any time before the expiration of the term of this Agreement by giving sixty (60) days’ prior written notice to the City. Contractor shall not be entitled to reimbursement of any portion of the annual franchise fee previously paid to the City.
1.5 Appeals. Contractor shall have the right to appeal the decision to terminate this Agreement within ten (10) days of the mailing of notice of the decision of the Chief of Police by filing a written notice of appeal with the City. The City Manager shall hear the appeal. An appeal shall not stay enforcement of the appealed action. The date, time, and place of appeal hearings shall be provided in writing to the operator or person with at least ten (10) days’ notice and copies of hearing rules.
Section 2. COMPENSATION. Rates for services provided to the City pursuant to this Agreement including fees charged for response to non-consensual tows and storage are set forth in Appendix B of Exhibit B. This Agreement shall be subject to suspension or termination if Contractor charges rates in excess of the fees set forth in Exhibit B. During the term of this Agreement, Contractor shall pay the City, as consideration for the nonexclusive franchise right to perform City generated tows pursuant to this Agreement, an annual franchise fee. The initial franchise fee for the first year shall be payable within thirty
(30) days of the award of this Agreement and annually thereafter. The amount of the franchise fee is set forth in Appendix B of Exhibit B.
2.1 Invoices. Contractor shall submit invoices once a month, based on the cost for services performed and reimbursable costs incurred prior to the invoice date, for work performed for the City. Contractor shall have ninety (90) days after the completion of work to invoice City for all amounts due and outstanding under each governed by this Agreement. In the event, Contractor fails to invoice City for all amounts due within such ninety (90) Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
day period, Contractor shall waive its right to collect payment from City.
2.2 Payment. City shall make monthly payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred.
2.3 Payment of Taxes. Contractor is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.
2.4 Authorization to Perform Services. Contractor is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.
2.5 Business License. Contractor is not authorized to perform services or incur costs whatsoever under the terms of this Agreement until Contractor applies for and has been issued a business license from the City pursuant to Title 5 of the Union City Municipal Code.
Section 3. ROTATIONAL TOW LIST. The City shall maintain a rotational tow list to ensure an equitable distribution of calls. A call to Contractor shall constitute one turn on the list after which Contractor
shall be moved to the bottom of the list. When Contractor is unable to or refuses to respond to a request for service or perform the requested service, Contractor shall forfeit that tow and be placed at the bottom of the rotational tow list. If the City determines that Contractor is no longer required for a tow request or a tow request is otherwise cancelled by the City, Contractor shall be placed back to the top of the rotational tow list.
If tow truck drivers from multiple contractors on the rotational tow list are called to the same incident, distribution of the vehicles shall be at the discretion of the City’s police officer on scene.
The City may direct Contractor to move vehicles to help clear a roadway or for lifesaving operations and Contractor shall provide such assistance without additional compensation. Such assistance shall not change Contractor’s place on the rotational tow list.
Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Contractor, at its own cost and expense, shall procure the types and amounts of insurance listed below for the period covered by the Agreement.
4.1 Workers’ Compensation. If Contractor employs any person, Contractor shall maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
or indirectly by Contractor with limits of not less than One Million Dollars ($1,000,000.00) per accident.
4.2 Commercial General and Automobile Liability Insurance. Contractor shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than Two Million Dollars ($2,000,000.00) per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non-owned automobiles. The City, its officers, officials, employees, and volunteers shall be named as an additional insured and insurance shall provide primary coverage with respect to the City by written endorsement to the policy. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.
4.3 General Liability/Umbrella Insurance. The coverage amounts set forth above may be met by a combination of underlying and umbrella policies so long as in combination the limits equal or exceed those stated.
4.4 All Policies Requirements.
4.4.1 Verification of Coverage. Prior to beginning any work under this Agreement, Contractor shall, at the sole option of the City, provide City with (1) certified Certification of Insurance that demonstrates compliance with all applicable
insurance provisions contained herein; and (2) upon request by the City, complete certified copies of all policies and/or complete certified copies of all endorsements that demonstrate compliance with this Section 5.
4.4.2 Notice of Reduction in or Cancellation of Coverage. A certified endorsement must be attached to all insurance obtained in accordance with this Agreement stating that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City.
4.4.3 Acceptability of insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII.
Insurance shall be maintained through an insurer with a minimum A.M. Best Rating of A- or better, with deductible amounts Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
acceptable to the City. Acceptance of Contractor’s insurance by the City shall not relieve or decrease the liability of Contractor hereunder. Any deductible or selfinsured retention amount or other similar obligation under the policies shall be the sole responsibility of the Contractor. Any deductible or self-insured retention amount or other similar obligation under the policies shall be the sole responsibility of the Contractor.
4.4.4 Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, employees, and volunteers; or the Consultant shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.
4.4.5 Wasting Policies. No policy required by this Section 4 shall include a “wasting” policy limit (i.e. limit that is eroded by the cost of defense).
4.5 Waiver of Subrogation. Contractor agrees to waive subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation. The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of City for all work performed by Contractor, its employees, agents and subcontractors.
Section 5. INDEMNIFICATION AND CONTRACTOR’S RESPONSIBILITIES.
Contractor shall indemnify, defend with counsel acceptable to City, and hold harmless City and its officers, officials, employees, agents and volunteers from and against any and all liability, loss, damage, claims, expenses, and costs (including without limitation, attorney’s fees and costs and fees of litigation) (collectively, “Liability”) of every nature arising out of or in connection with Contractor’s performance of the Services or its failure to comply with any of its obligations contained in this Agreement, except such Liability caused by the sole negligence or willful misconduct of City.
Contractor’s obligation to defend and indemnify shall not be excused because of Contractor’s inability to evaluate Liability or because Contractor evaluates Liability and determines that Contractor is not liable to the claimant. Contractor must respond within 30 days, to the tender of any claim for defense and indemnity by the City, unless this time has been extended by the City. If Contractor fails to accept or reject a tender of defense and indemnity within 30 days, in addition to any other remedy Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
authorized by law, so much of the money due Contractor under and by virtue of this Agreement as shall reasonably be considered necessary by the City, may be retained by the City until disposition has been made of the claim or suit for damages, or until Contractor accepts or rejects the tender of defense, whichever occurs first.
With respect to third party claims against Contractor, Contractor waives any and all rights of any type to express or implied indemnity against the Indemnitees.
Notwithstanding the forgoing, to the extent this Agreement is a “construction contract” as defined by California Civil Code Section 2782, as may be amended from time to time, such duties of Contractor to indemnify shall not apply when to do so would be prohibited by California Civil Code Section 2782.
In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.
Section 6. STATUS OF CONTRACTOR.
6.1 Independent Contractor. At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee of City. City shall have the right to control Contractor only insofar as the results of Contractor's services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement.
Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.
6.2 Contractor Not an Agent. Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.
Section 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
7.2 Compliance with Applicable Laws. Contractor and any subcontractors shall comply with all federal, state, and local laws applicable to the performance of the work in connection with this Agreement.
7.3 Licenses and Permits. Contractor represents and warrants to City that Contractor and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions.
7.4 Nondiscrimination and Equal Opportunity. In compliance with federal, state and local laws, Contractor shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Contractor under this Agreement.
7.5 Work Requiring Payment of Prevailing Wages. In accordance with California Labor Code § 1771, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which these services are to be performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in the California Labor Code shall be paid to all workers engaged in performing the services under this Agreement.
Section 8. MODIFICATION.
8.1 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties.
8.2 Assignment. Contractor may not assign this Agreement or any interest therein without the prior written approval of the City.
8.3 Subcontracting. Contractor shall not subcontract any portion of the performance contemplated and provided for herein without prior written approval of the City. Where written approval is granted by the City, Contractor shall supervise all work subcontracted by Contractor in performing the Services; shall be responsible for all work performed by a subcontractor as if Contractor itself had performed such work; the subcontracting of any work to subcontractors shall not relieve Contractor from any of its obligations under this Agreement with respect to the Services; and Contractor is obligated to ensure that any and all subcontractors performing any Services shall be fully insured in all respects and to the same extent as set forth under Section 5, to City’s satisfaction.
8.4 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Contractor shall survive the termination of this Agreement.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Section 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Contractor’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, description of each vehicle towed, nature of service provided, start and end time of service, location of call, itemized costs of towing and storage, tow truck driver’s name, truck used, or any other documents or materials, in electronic or any other form, that Contractor prepares or obtains in accordance with this Agreement and that relate to the matters covered under the terms of this Agreement shall be the property of the City.
9.2 Contractor’s Books and Records. Contractor shall maintain any and all records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to Contractor to this Agreement.
9.3 Inspection and Audit of Records. Any records or documents that Section
9.2 of this Agreement requires Contractor to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds $10,000.00, the Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of 3 years after final payment under the Agreement.
Section 10. MISCELLANEOUS PROVISIONS.
10.1 Attorneys’ Fees. If a Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that Party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.
10.2 Venue. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Alameda or in the United States District Court for the Northern District of California.
10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.
10.4 No Implied Waiver of Breach. The waiver of any breach of a specific Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.
10.5 Conflict of Interest. Contractor may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Contractor in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq.
Contractor shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq.
Contractor hereby warrants that it is not now, nor has it been in the previous 12 months, an employee, agent, appointee, or official of the City. If Contractor was an employee, agent, appointee, or official of the City in the previous twelve months, Contractor warrants that it did not participate in any manner in the forming of this Agreement. Contractor understands that, if this Agreement is made in violation of Government Code § 1090 et seq., the entire Agreement is void and Contractor will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Contractor will be required to reimburse the City for any sums paid to Contractor.
Contractor understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be disqualified from holding public office in the State of California.
Contractor shall not be directly involved in the towing related to the business of any other contractor providing towing services pursuant to a nonexclusive franchise agreement with the City.
10.6 Contract Administration. This Agreement shall be administered by the Chief of Police or his designee, who shall act as the City’s representative.
All correspondence shall be directed to or through the representative.
10.7 Notices. Any written notice to Contractor shall
be sent to:
Jack James Tow Service, Inc.
549 “C” Street, Hayward, CA 94541
Any written notice to City shall be sent to:
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
City of Union City
Attn: City Clerk
34009 Alvarado-Niles
Road Union City, CA
94587
With a copy to:
City Attorney
34009 Alvarado-Niles
Road Union City, CA
94587
10.8 Professional Seal. Where applicable in the determination of the City, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation.
10.9 Integration; Incorporation. This Agreement, including the scope of work attached hereto and incorporated herein as Exhibits A and B represents the entire and integrated
agreement between City and Contractor and supersedes all prior negotiations, representations, or agreements, either written or oral.
Exhibit A Standards and Scope of Services
Exhibit B Complaints/Penalty Process and Fee Schedule
10.10 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
The Parties have executed this Agreement as of the date signed by the City.
CITY OF UNION CITY CONTRACTOR
Date: Date:
Joan Malloy, City Manager [NAME,
TITLE] Attest:
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Thai Nam Pham
City Clerk
Approved as to Form:
Kristopher J.
Kokotaylo City
Attorney
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
EXHIBIT A
STANDARDS AND SCOPE OF SERVICES
General Requirements and Standards:
1. The City Chief of Police is authorized to make and impose administrative interpretations and guidelines pursuant to these standards.
2. Contractor shall be available to provide City requested tows 24 hours, 7 days per week.
3. For the purpose of this Agreement, “business hours” shall not be less than 8:00 a.m. to 5:00 p.m.., Monday through Friday, except for the following state recognized holidays: New Year’s Day, Martin Luther King Day, Lincoln Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving Day, day after Thanksgiving Day, and Christmas Day.
4. Contractor shall respond to tows within 30 minutes of notification or request. In the event a second tow truck is requested, the second truck shall arrive within 30 minutes of the second request. Big rig tows shall respond within 40 minutes during business hours and within 60 minutes after business hours.
5. Contractor shall furnish satisfactory evidence of the ability to respond to damages as required by California Vehicle Code Section 16500.5.
6. Contractor shall be responsible for the safekeeping of any property contained in towed vehicles.
7. Contractor shall post, in a conspicuous place at Contractor’s storage facility, a schedule of rates covering all fees for towing services. Additionally, a copy of the schedule of rates shall be available in each tow truck utilized pursuant to this Agreement and presented to the person for whom the tow services were provided or to the City upon demand. Tow service rates shall not exceed rates established by the City of Union City in accordance with Appendix B, attached.
8. Contractor shall make reasonable provisions for the security of vehicles and property at the place of storage as approved by the City. Towed vehicles must be stored at a secured storage yard and cannot be left on the tow truck at any other unsecured location such as at the driver’s residence or an open parking lot.
9. The primary storage facility shall be at the same location as the business address set forth in this Agreement. If the storage facility not at the same location as the business address, there shall be no charge for additional distance traveled to and from a secondary location. The vehicle and personal property shall be released at the primary storage facility upon request of the vehicle owner. Contractor shall notify, and receive approval from, the City whenever a change in storage facility location is Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
proposed.
10.Contractor shall comply with California Vehicle Code Section 22851(b). Contractor shall provide a receipt, with a copy placed in the stored vehicle and a copy to the Traffic Section of the Police Department whenever any item is removed from a stored vehicle.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
11.Contractor shall maintain records of tow services furnished, including a description of vehicles, nature of service, and time and location of tow service requests from the City.
12.Contractor shall not assign tow service requests. In the event that Contractor is unable to respond or will be delayed in responding, Contractor shall immediately notify the City. In the event the tow operation is beyond the means of Contractor, Contractor may request an additional Contractor response from the Union City Police Rotational Tow List. If no tow company is able to accomplish the tow, the Police Department may call tows from outside the tow list.
13.All Contractor tow truck drivers and owner/operators shall be enrolled in the California Department of Motor Vehicles Pull Notice Program. Upon the addition of new drivers, Contractor shall have a maximum of 30 days to enroll drivers in the Pull Notice Program. Pull Notices shall be kept on file, signed, and dated by Contractor.
14.Contractor shall be able to properly conduct a lien sale pursuant to California Vehicle Code Section 22850 et seq. Contractor shall obtain City approval prior to placing a lien on any vehicle held for evidence purposes. No lien shall be placed upon a vehicle until the vehicle has been stored for over 72 hours.
15.Contractor shall only employ tow truck drivers properly licensed pursuant to the California Vehicle Code.
16.Contractor shall arrange with the traffic section of the Police Department for inspection and approval of tow equipment vehicles prior to use pursuant to this Agreement.
Contractor shall arrange with California Highway Patrol for new or replacement tow trucks prior to placing them into service. Contractor shall provide proof of all inspections to the City. The City may conduct additional inspections without notice during normal business hours. Re-inspection of any tow truck which fails an inspections shall be arranged with the California Highway Patrol. Failure to pass reinspections shall be cause to disqualify the tow truck from tows pursuant to this Agreement.
17.Vehicles towed and stored pursuant to California Vehicle Code Section 14602.6 shall not be sold to satisfy a lien until thirty-seven (37) days after the date the vehicle was towed. Lien sale proceedings may be commenced three (3) days after the vehicle was towed, but in no case may the vehicle be sold earlier than the thirty-seven (37) day limit enumerated above.
18.Contractor shall not offer gratuities or honor requests for gratuities from the City or any employee of the City.
19.Contractor agrees to comply with the provisions of the Rotational Tow List Complaint/Penalty process as outlined in Appendix A.
20.The Tow Service Provider agrees to comply with any additional requirements as detailed in and required by Section 10.17 of the Union City Municipal Code. In the Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
event that any provision in this Agreement are in conflict with the Union City Municipal Code, the Code will govern.
Contractor Employee Demeanor and Conduct:
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
1. Contractor and Contractor personnel shall refrain from acts of misconduct while providing services pursuant to this Agreement including, but not limited to, the following acts:
a. Rude or discourteous behavior directed towards the City or citizens for whom services is provided. “Rude or discourteous behavior” means any act that would insult, aggravate, disturb or frustrate a person of reasonable sensibilities, including, but not limited to, using profanity, manifesting an uncooperative or angry demeanor, performing acts of vandalism, failing to respond to questions in a courteous and professional manner, and intentionally misrepresenting rates or tow procedures or attempting to manipulate rates or tow procedures;
b. Below standards service, selective service, or refusing to provide service which Contractor is or should be capable of performing; c. Any act of sexual harassment or sexual impropriety;
d. Unsafe driving practices;
e. Exhibiting objective symptoms of alcohol or drug use while performing services pursuant to this Agreement.
2. Contractor and personnel providing services pursuant to this Agreement shall submit to a preliminary alcohol screening test upon demand of the City while answering a call originating from the rotational tow list. A positive test will result in the loss of that tow by Contractor and may result in further penalties.
Tow Truck Classifications:
1. Tow vehicles shall be rated at a minimum of 15,500 LBS Gross Vehicle Weight Rating.
Each vehicle shall be maintained in compliance with the provisions of California Vehicle Code Sections 24605, 25253, 27700, and 27907.
2. Contractor shall own a minimum of five tow trucks, one of which shall be a Class Bmedium duty. Contractor shall equip and maintain the tow trucks covered under this Agreement in accordance with the provisions set forth in the California Vehicle Code, Title 13 of the California Code of Regulations, the specifications contained in the Agreement, and consistent with industry standards and practices.
3. A violation of the Gross Vehicle Weight Rating (GVWR) and safe loading requirements of a tow truck may be cause for immediate suspension. This includes exceeding the tow truck's GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50% of the tow truck's unladen front axle weight on the front axle when in tow.
4. There are three classes of tow trucks covered under the Agreement:
❖ Class A - Light Duty
Contractor shall maintain a minimum of one tow truck, which has a manufacturer's GVWR of at least 14,500 pounds.
❖ Class B – Medium Duty
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Contractor shall maintain a minimum of one tow truck, with a Class B medium duty with a GVWR of at least 33,000 pounds. The truck shall be equipped with air brakes and a tractor protection valve or device, and be capable of providing and maintaining continuous air to the towed vehicle.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
❖ Class C Heavy Duty
Contractor shall maintain, or contract with another operator for, at least one three-axle tow truck with a GVWR of at least 46,000 pounds. The truck shall be equipped with air - brakes and must be capable of providing mid maintaining continuous air to the towed vehicle.
5. To properly and safely tow and service the wide variety of vehicles being operated within the City, a towing procedure may require the use of auxiliary equipment specifically designed for the purpose. This auxiliary equipment should be used when appropriate.
Storage Facility:
1. Contractor shall be responsible for the security of vehicles and property at the place of storage. As a minimum, a fenced or enclosed area, approved by the City, shall be provided. A minimum six-foot fence or enclosed area shall be provided for outside storage. The primary storage facility shall provide for a minimum of seventy-five (75) standard vehicle parking spaces; three additional parking spaces are to be in an enclosed in a locked building available for vehicles towed pursuant to this Agreement.
The secondary storage facility must have a minimum of twenty-five (25) standard vehicle parking spaces. The primary storage facility shall be maintained in, and the towing service is to originate from within, a maximum distance of 10 miles from the geographic limits of the City of Union City. Contractor is responsible for the reasonable care, custody, and control of any property contained in towed or stored vehicles.
Contractor shall not employ or allow any person to loiter around the storage facility or Contractor’s place of business that has been convicted of a crime of moral turpitude or convicted of a felony.
Notwithstanding the above, vehicles towed by contractor pursuant to California Vehicle Code Section 22660 or Union City Municipal Code Chapter 7.12, shall be immediately stored by operator at the operator's primary storage facility or at a secondary yard located anywhere within Union City, Newark, Fremont, or Hayward city limits.
2. Secondary and primary storage yards must meet all licensing, permit, and zoning requirements as established by the Cities of Union City, Newark, Fremont, or Hayward.
3. No additional costs of any nature shall be incurred by any citizen or the City as a result of Contractor’s use of a secondary yard above what would normally be allowed under the current fee schedule at Contractor’s primary storage yard, for example, by requiring and charging for transfers between yards.
4. Contractor’s use of any secondary yard must not cause any delay in the release of a towed to a citizen beyond what normally would occur at Contractor’s primary yard.
5. Contractor shall release personal property not attached to the impounded vehicle at Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
the request of the vehicle owner or agent. Personal property is considered to be items, which are not affixed to the vehicle i.e., papers, transportable cellular telephones, pull out radios, portable radios and/or portable stereo equipment, clothes, luggage, tools, etc. Contractor shall provide a receipt, with a copy placed in the stored vehicle and a copy to the City, whenever any item is removed from a stored vehicle and taken to another place of storage.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
6. There shall be no charge for the release of personal property during normal business hours. Contractors may charge an afterhours release fee for property released after normal business hours. The fees charged shall be consistent with the afterhours vehicle release provisions and shall not be more than one-half the hourly rate, as provided in California Vehicle Code Section 22851(b). Contractor shall not charge the City for afterhours access to any vehicle.
7. Cargo and/or trailer contents shall be released upon demand of the carrier or pursuant to a court order after the authorized towing and the owner or agent has paid storage fees.
8. Prior to the utilization of new storage facilities that were not listed on the operator application, the operator shall furnish the address and obtain the approval of the City.
9. Contractor’s primary storage facility shall have a sign that clearly identifies it to the public as a towing service. The sign shall have letters that are clearly visible to the public from the street. The sign shall be illuminated at night.
10.Contractor shall provide a sign listing the phone number for a 24-hour access to the facility and business hours in plain view to the public and located near the entrance or front door of the business. The sign shall be illuminated at night and be visible from the public parking lot.
11.Contractor shall not release any vehicle without written authorization of the City.
Stored/Impounded vehicles shall not be released to the owner or registered owner of the vehicle or other lawful claimant of possession without securing a written authorization and release form from the City.
12.Contractor shall conduct the loading, unloading, parking, and storage of towed vehicles in Contractor’s possession, within the confines of Contractor’s enclosed storage area, not upon the streets and the public right-a way.
13.Contractor shall be available to respond and release any vehicle-towed twenty-four (24) hours per day, seven (7) days a week. Contractor shall respond within thirty (30) minutes.
14.Contractor shall provide a sign near the entrance of the business which can be seen from the parking lot directing customers to a pay telephone accessible for public use 24 hours each day, the sign shall be illuminated at night.
15.Contractor shall display in plain view at all cashier stations, a sign as described in California Civil Code Section 3070 disclosing all storage fees and charges in force, including the maximum storage rate.
16.Contractor personnel operating or in charge of any storage facility where vehicles are stored 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 Vehicle Code Section 22651.1. Contractor shall have equipment Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
to process credit card payment at each storage facility. A Contractor or personnel who refuses to accept a valid bank credit card shall be liable to the owner of the vehicle or to the person who tendered the fees for four times the amount of the towing and storage charges, but not to exceed five hundred dollars ($500). Contractor shall have sufficient funds on the premises of the storage facility to accommodate and make change in a reasonable monetary transaction.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Credit charges for towing and storage services shall comply with Section 1748.1 of the Civil Code.
17.Contractor may charge storage in accordance with California Civil Code Section 3068.1 et seq.
18.Contractor shall provide owners of towed and/or stored vehicles access to their vehicles.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
EXHIBIT B
COMPLAINT/PENALTY PROCESS AND FEE
SCHEDULE
APPENDIX A
The Chief of Police shall take disciplinary action against Contractor for violations investigated and sustained. The Chief of Police shall retain discretion to determine the period of any suspension imposed pursuant to this Agreement. Violations are separated into major violations and moderate/minor violations.
MAJOR VIOLATIONS:
Major violations include, but are not limited to:
1. Contractor selling business and failing to notify the Union City Police Department.
2. Acts on the part of Contractor or personnel that involve criminal prosecution relating to theft or operation of the business.
3. Contractor’s use of a tow truck driver convicted of any act involving dishonesty, fraud or deceit.
4. Contractor intentionally overcharging or a pattern of overcharging for tow service calls.
5. Failure of Contractor to maintain the minimum insurance requirements set forth in this Agreement will immediately nullify the Agreement.
MODERATE/MINOR VIOLATIONS:
Moderate and minor (depending on severity) violations include, but are not limited to:
1. Improper storage of a vehicle that involves loss or damage to property.
2. A violation of the equipment requirements related to safety.
3. A violation of the GVWR and safe loading requirements including exceeding the tow truck’s GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck’s unladen front axle weight on the front axle when in tow.
4. Soliciting of business in any manner in which a proper rotation tow loses their right to orderly succession, or other unauthorized interference of the rotational tow system.
5. Contractor failure to comply with requirements related to contractor employee demeanor and conduct.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
6. Failure to comply with the inspection requirements of this Agreement.
7. Failure to utilize qualified personnel.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Services, Inc.
8. Failure to respond to rotational tow request.
9. Failure to respond to rotational tow within the timeframe specified in this Agreement.
10.Unintentional excessive tow charges.
TERMS OF DISCIPLINARY ACTION
All complaints will be investigated to determine their validity. Before any action is taken against Contractor, the completed investigation will be reviewed by the Traffic Section Sergeant, Traffic Lieutenant, and the Division Commander. Action will not be taken against Contractor unless the action can be justified and the allegation substantiated.
Contractor has a right to request an administrative hearing with the City which shall be conducted pursuant to rules and procedures established by the City.
Except as specifically stated in this Agreement, moderate/minor violations of the terms and conditions of this Agreement may be cause for disciplinary action in the following manner:
1. First violation within a 12 month period – letter of reprimand.
2. Second violation within a 12 month period – 1 to 30 day suspension.
3. Third violation within a 12 month period – 60 to 90 day suspension.
4. Fourth violation within a 12 month period – termination of this Agreement, or, an additional suspension in the sole discretion of the Chief of Police.
Violations of the terms and conditions of this Agreement are subject to suspension for the first violation that is categorized as a major violation, or, if severe in the sole discretion of the Chief of Police, subject to immediate termination.
Nothing herein shall prohibit the Chief of Police or his designee from immediately suspending Contractor if, in the opinion of the Chief of Police or his designee, Contractor or related personnel’s actions are deemed to be a danger to the public or if Contractor or related personnel have engaged in conduct constituting a flagrant violation of this Agreement.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Services, Inc.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
APPENDIX B
TOW FEE SCHEDULE FOR THE CITY OF
UNION CITY
July 1,
2026
July 1,
2027
July 1,
2028
July 1,
2029
July 1,
2030
VEHICLES UNDER 6,000 POUNDS
Hourly Rate
(Portal to
Portal)
$284/hour $284/hour $284/hour $284/hour $284/hour
Drop Fee $139 $139 $139 $139 $139
Gate Fee $125 $125 $125 $125 $125
Service Fee
(Lockouts, gas,
etc.)
$139 $139 $139 $139 $139
Storage
(Inside)
$103/day $103/day $103/day $103/day $103/day
Storage
(Outside)
$95/day $95/day $95/day $95/day $95/day
VEHICLES OVER 6,000 POUNDS
Hourly Rate (3
Axle Portal to
Portal)
$569/hour $569/hour $569/hour $569/hour $569/hour
Hourly Rate (2
Axle Portal to
Portal)
$363/ hour $363/ hour $363/ hour $363/ hour $363/ hour
Gate Fee $174 $174 $174 $174 $174
Drop Fee
$160 $160 $160 $160 $160
Storage
(Outside)
$160/day $160/day $160/day $160/day $160/day
Air Bags $179/hour for up to 3 hours,
$410 hour after the first 3 hours
Other Special
Equipment
Charged at actual cost to the tow company plus 15%
*There is a one hour minimum for all hourly fees
POLICE VEHICLE TOWS
All Police Service Calls $51.00
(Tows, Impounds paid by Police Dept., Service Calls, etc. for Police Vehicles) Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Police service calls out of the Tri-City area (or outside 15 miles of Union City Limits) will be billed at an hourly rate of $51.00.
Any other tow where the costs are paid by the Police Department (Records/Dispatch/Officer Mistakes for example) will be discounted to 50% of the cost that would have otherwise been normally charged.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
Tow Services Agreement between
CITY OF UNION CITY and Jack James Tow Service, Inc.
FRANCHISE FEE:
During the term of this Agreement, Contractor shall pay a franchise fee of $15,000 divided by the number of contractors paying rotational tows for the right to perform City generated tows pursuant to this Agreement. The total amount shall be shared equally, on an annual basis, by Contractor and other contractors providing rotational tows. Thus, for example, if the City has three contractors providing rotational tows (including Contractor), Contractor shall pay an annual franchise fee of $5,000. Non-payment of the annual franchise fee is grounds of suspension or termination of this Agreement.
FUEL SURCHARGE:
In the event average current Diesel Fuel prices increase to a rate greater than $ 3 per gallon, as quoted on the California State Automobile Association Web Site for the Oakland Metro Region, and remains at that price for more than seven (7) consecutive days, the Contractor shall provide written notification to the Union City Police Department Traffic Sergeant. After verification, the Traffic Sergeant shall authorize a $ 5 per tow surcharge in addition to other fees charged.
In the event average current Diesel Fuel prices increase to a rate greater than $ 4 per gallon, as quoted on the California State Automobile Association Web Site for the Oakland Metro Region, and remains at that price for more than seven (7) consecutive days, the Contractor shall provide written notification to the Union City Police Department Traffic Sergeant. After verification, the Traffic Sergeant shall authorize a $ 10 per tow surcharge in addition to other fees charged. The fuel surcharge will not be in addition to the surcharge listed above; the total fuel surcharge shall not exceed $ 10.
In the event a fuel surcharge is authorized based on the criteria set above, it will be the responsibility of the Traffic Sergeant to monitor the Diesel Fuel prices as quoted on the California State Automobile Association Web Site for the Oakland Metro Region. In the event those prices fall below the afore mentioned levels for more than fourteen (14) consecutive days, Traffic Sergeant shall provide written notification to the tow companies that the fuel surcharge will no longer be authorized, effective the next business day after proof of notification.
VEHICLE IMPOUNDS/STORAGE:
Contractor agree to provide indoor impound storage inside an enclosed and secured area.
The storage area shall be sufficient to store three full sized vehicles, and shall be completely secured by chain link fence, or comparable material acceptable to the police department. The storage area may be one large area, or three separate areas.