City Council Agenda Report
Meeting Date: June 2, 2026
From: Robert Sousa, Chief of Police
Department: Police
Submitted by: Nicholas Perez, Captain
Subject
Franchise Towing Service Agreement
Recommendation
A. Introduce and conduct the first reading of Ordinance No. 1313 granting Mr. C’s Towing of South Gate, Inc., a franchise towing services agreement for a term of three years; and B. Direct staff to schedule the second reading and adoption of Ordinance No. 1313 for the June 16, 2026, City Council meeting.
Background
Chapter 10.32 of the Vernon Municipal Code (VMC) prescribes the basic regulations for the operation of and selection process for official police tow services. Said section of the VMC sets forth minimum requirements and performance standards for equipment, facilities, personnel, and services for tow companies to provide as-needed vehicle towing and storage services requested by the Vernon Police Department (PD). The VMC also defines procedures for suspending or revoking tow companies that fail to meet the minimum standards, violate federal, state, or local laws, or for cause which the PD determines is in the public interest, necessary, or general welfare for the contract to continue.
On August 2, 2022, the City Council adopted Ordinances 1284 and 1285 respectively, granting Mr. C’s Towing of South Gate, Inc., and Towwerks, LLC., franchise towing services agreements for a term of three years, which have now expired.
In order to select qualified vendors that can provide official police towing services for the next three years, pursuant to Chapter 10.32 of the VMC, on January 26, 2026, the City Administrator authorized staff to issue a Request for Proposals (RFP) seeking qualified licensed tow providers to enter into a franchise agreement to perform exclusive towing and storage services. The RFP specifically sought operators to furnish the PD with licensed tow operations as may be required for a three (3) year period from the date of execution. The RFP was emailed to six (6) local tow companies operating in the general area and was posted on the City’s website.
The PD received six (6) responses to the RFP. The six (6) proposals were reviewed and assessed by an evaluation panel comprised of representatives from the PD. Before conducting an assessment of each proposal, members of the evaluation panel conducted on-site inspection of each of the six (6) tow companies. Each proposal was evaluated using the criteria set in the RFP and weighted as indicated below:
Qualifications and Experience: 40%
References: 20%
Responsiveness to the RFP and Quality: 10%
Cost and Fees: 30%
After evaluating and rating the proposals, the towing companies were ranked according to the scores of the evaluators. Based on the physical inspections, reference checks, and evaluation of the proposals, Mr. C’s Towing of South Gate, Inc., emerged as the top-ranked company.
The City Attorney’s Office has prepared a standard agreement for official police tow services. The agreement establishes the City’s requirements and minimum performance standards, payment of fees, reporting requirements, and other terms and conditions related to vehicle towing and impound services for the PD. The agreement is for a term of three (3) years.
Procedural Requirements
Chapter 4.1(c) of the City Charter requires that the City Council grant a franchise by ordinance. Chapter 8.9 of the City Charter authorizes the City Council to grant a franchise to any person, firm, corporation, or other entity and to set terms, conditions, restrictions, and limitations by ordinance. Accordingly, staff is recommends the adoption of Ordinance No. 1313, granting a franchise agreement to Mr. C’s Towing of South Gate, Inc., respectively. Should Council approve staff’s recommendation to grant a franchise agreement to the aforementioned towing company, a second reading and adoption of the proposed ordinance will be scheduled for the June 16, 2026, Council meeting.
Fiscal Impact
There are no costs associated with the execution of a franchise tow services agreement. The towing services franchise does not increase the costs paid by vehicle owners, as these rates are fixed. Vehicle Code Section 12110(b) allows a public agency to collect administrative or franchise fees to recover its actual and reasonable costs incurred in connection with its towing program.
During the term of the franchise, franchisee shall pay a franchise fee to PD in an amount equal to 5% of the franchisee’s gross annual receipts arising from the use, operation, or possession of the franchise. The franchise towing fees are deposited into PD account 011-410-000-410515.
Attachments
1. Ordinance No. 1313