Chapter 5.44
POLICE TOW SERVICE FRANCHISES*
Sections:
5.44.010 Definitions.
5.44.020 Purpose and declarations.
5.44.030 Franchise required to provide police towing services.
5.44.040 City Council authority to grant nonexclusive franchises.
5.44.050 Nonexclusive franchises – Terms and conditions.
5.44.060 Request for proposals.
5.44.070 Public hearing.
5.44.080 Grant or denial of franchise.
5.44.090 Franchise tow services agreement.
5.44.100 Indemnification of City.
5.44.110 Liability insurance.
5.44.120 Suspension by Police Chief.
5.44.130 Franchise transfer or assignment.
5.44.140 Franchise fees.
5.44.150 Rotational list.
5.44.160 Reservation of authority to conduct towing operations.
*Prior legislation: Ord. 1826
5.44.010 Definitions.
For the purposes of this chapter, certain terms used herein are defined as follows:
“Franchise agreement” means an agreement between the City and a franchisee for the purpose of providing towing services as provided in this chapter.
“Franchisee” means any entity granted a franchise by the City pursuant to this chapter.
“Nonconsensual police towing services” means the towing and storage of vehicles as ordered and designated by authorized members of the police department, and all related services required to transport, secure and maintain such vehicles and their contents, in situations where the vehicle owner is unable or unwilling to consent to having the vehicle towed.
“Police Chief” means the Chief of Police of the police department of the City of Livermore or their designee.
“Police department” means the police department of the City of Livermore.
“Tow truck operator” means a towing company and the owner(s) and/or managing employee(s) of a towing company. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.020 Purpose and declarations.
The purpose of this chapter is to establish towing regulations to govern the provision of nonconsensual police towing services to the City’s police department, consistent with state and federal laws, as well as the public health, safety, and welfare. A further purpose is to ensure that the best possible tow truck operators are selected to participate in the City’s rotational tow program to assist the police department in conducting efficient police investigations and provide the citizens of Livermore with prompt, safe, and comprehensive towing services.
These regulations are not intended to govern situations where towing has been requested by vehicle owners or private property owners, except as may be permitted by law. Instead, these regulations, along with the terms and conditions of the franchise agreement required under this chapter, are intended to provide a fair and objective method of selecting qualified tow truck operators to ensure that towing providers and drivers selected provide the police department and the public with prompt, safe, and comprehensive nonconsensual police towing services using the latest in towing technology and vehicle towing and storage safety.
It is recognized that the City is authorized by state law to adopt and implement a mechanism for safe and efficient towing and vehicle impoundment and that the City may impose fees to recover its actual and reasonable costs incurred in connection with the towing program. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.030 Franchise required to provide police towing services.
Except as specified in this chapter, it is unlawful for any person to solicit or perform the business of nonconsensual police towing services in the City unless:
A. A franchise therefor has been granted pursuant to the provisions of this chapter and such franchise is in full force and effect; and
B. A written franchise agreement therefor has been executed between such person and the City and such agreement is in full force and effect.
This chapter shall not apply to towing, repair, or storage services performed for or made available to members of the public directly, when not in response to police department requests. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.040 City Council authority to grant nonexclusive franchises.
The City Council may at its discretion, by the adoption of a resolution or ordinance, grant a nonexclusive franchise to a tow truck operator to provide nonconsensual police towing services to the City under and pursuant to the provisions of this chapter as a franchisee. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.050 Nonexclusive franchises – Terms and conditions.
A. All franchises granted to franchisees pursuant to this chapter shall be nonexclusive and shall be for a term to be specified in the franchise agreement between the City and the franchisee.
B. No provisions of this chapter shall be deemed to require restricting the number of franchises to one or any particular number, and no provision of this chapter shall be deemed to require the City Council to grant any franchise if the City Council determines that the grant of any such franchise is not in the best interest of the City and the public.
C. All franchisees shall be subject to the terms and conditions specified in this chapter, as well as any terms or conditions specified in the resolution granting the franchise and the franchise agreement.
D. In granting any tow truck operator franchise, the City Council may prescribe such other terms and conditions, not in conflict with this chapter, as are determined by the City Council to be in the best interest of the City and the public. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.060 Request for proposals.
The Police Chief shall request for proposals for franchises for nonconsensual police towing services by causing a notice to be published in a newspaper of general circulation within the City. Any tow truck operator who intends to operate as a franchisee shall submit a proposal to the City by filing with the Police Chief, upon forms supplied in the request for proposals, a verified proposal containing, at a minimum, the following information:
A. Name and address of the tow truck operator. If the tow truck operator is a partnership, the name and address of each partner shall be set forth in the proposal. If the tow truck operator is a corporation, the proposal shall state the names and addresses of the corporation’s directors, main offices, major stockholders and associates, and the names and addresses of the parent and subsidiary companies;
B. A list of all vehicles, including license plate numbers and vehicle identification numbers, to be used in connection with the franchise for which the proposal is filed;
C. A list of all personnel assigned to perform services pursuant to such franchise accompanied by the California driver’s license number and license class of each such person;
D. Proof of insurance in a form acceptable to the City;
E. Any other information the Police Chief may reasonably require to evaluate and process the proposals. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.070 Public hearing.
A. Upon receiving the proposal(s) for a franchise under the provisions of this chapter, the Police Chief shall present the proposal(s) to the City Council at a regularly scheduled meeting thereof.
B. The city clerk shall cause notice of the proposal(s) and of the time and place of hearing on the proposal(s) to be published at least once in a newspaper of general circulation in the City at least 10 days prior to the date set for the hearing. Additionally, the city clerk shall mail or deliver notice of the public hearing to each tow truck operator that has submitted a proposal at least 10 calendar days prior to the hearing.
C. At the hearing on the proposal(s) for a franchise, the City Council shall give all persons desiring to be heard a reasonable opportunity to present evidence or otherwise be heard in favor of, or in opposition to, the granting of a franchise to the tow truck operator(s). At such hearing, the City Council may require from the tow truck operator(s) such additional information as the City Council may deem relevant and necessary. The hearing may be continued or adjourned to a stated time and place without the giving of further notice. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.080 Grant or denial of franchise.
A. Upon conclusion of the hearing on the proposals for a franchise, or within a reasonable time thereafter, the City Council shall render its decision on the proposal(s). Any grant of a franchise by the City Council may be subject to such terms, conditions, rules, regulations, restrictions and limitations as the City Council deems necessary to protect the public health, safety, or welfare.
B. Should a franchise agreement not be granted to a tow truck operator, the city clerk shall issue written notice to the tow truck operator that its service will not be utilized for towing vehicles as described in this chapter.
C. No franchise agreement granted pursuant to this chapter shall become effective unless and until all of the following requirements have been satisfied:
1. The tow truck operator and the City have signed, by their duly authorized representatives, a franchise agreement;
2. The tow truck operator has provided evidence to the Police Chief of compliance with all the terms and conditions of the franchise agreement. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.090 Franchise tow services agreement.
All franchisees selected to provide nonconsensual police towing services shall enter into a franchise agreement with the City. The franchise agreement shall be in a form approved by the City Attorney and shall be executed within 30 days after selection as a franchisee. The franchise agreement shall provide that the terms and conditions of this chapter shall be applicable for the entire term of the franchise. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.100 Indemnification of City.
The franchise agreement shall provide that the franchisee shall indemnify, hold harmless, release and defend the City, its City Council and each member thereof, and its officers, employees, commission members and representatives, from and against any and all liability, claims, suits, costs, expenses, fines, judgments, settlements, charges or penalties whatever, including reasonable attorneys’ fees, regardless of the merit or outcome of the same arising out of, or in any manner connected with, any or all of the operations or services authorized, conducted or permitted under a nonexclusive franchise tow services agreement granted under this chapter. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.110 Liability insurance.
The City’s risk manager shall establish minimum levels and standards of liability insurance which must be maintained in order to apply for, to receive, and to operate a franchise under this chapter. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.120 Suspension by Police Chief.
The Police Chief may suspend the franchise agreement for the reasons, and pursuant to the procedures, set forth in the terms of the franchise agreement entered into with a tow truck operator, or for a violation of the terms of this chapter, including, but not limited to, a violation of the franchise agreement, a failure to maintain the minimum levels and standards of liability insurance for any period of time, or the failure to comply with any federal, state, or local law.
The Police Chief shall issue a notice of temporary suspension to the franchisee, which shall include the date and period of suspension and the basis for the suspension. The notice of temporary suspension may be personally delivered or mailed by certified mail to the franchisee.
A suspension longer than 30 days may be appealed in accordance with the provisions of Chapter 1.22 LMC. (Ord. 2065 § 1(A), 2018; Ord. 2052 § 1(L), 2017; Ord. 2042 § 1 (Exh. A), 2016)
5.44.130 Franchise transfer or assignment.
Any franchise agreement granted pursuant to this chapter is a privilege to be held in trust by the original franchisee. Such franchise shall not be sold, leased, transferred, assigned, or otherwise disposed of, either in whole or in part, whether by forced sale, merger, consolidation, bankruptcy, reorganization under bankruptcy laws or otherwise, without the prior consent of the City Council. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.140 Franchise fees.
A. Each tow truck operator granted a franchise agreement pursuant to this chapter shall pay a franchise fee to the City during the term of such franchise. The franchise fee shall be in an amount as set forth in a resolution adopted by the City Council and may be adjusted by the City Council from time to time.
B. Franchise fees shall be due and payable in accordance with the terms and conditions contained in the franchise agreement. Each payment shall be in accordance with the provisions of the resolution adopted by the City Council pursuant to subsection A of this section.
C. By resolution, the City Council establishes the reasonable estimate of the costs of the police department to administer the franchise tow services program. The franchise fees established by resolution may be revised periodically by the City Council to reflect changes in the actual and reasonable costs to administer the franchise tow services program.
D. In the event of the suspension or termination of a franchise agreement, the franchisee shall forfeit any fees paid to the City. Franchisee waives any and all claims or rights to collect back from the City any amounts collected by the City pursuant to this chapter.
E. The payment to the City by the franchisee pursuant to this chapter shall be in addition to any license fee or business tax prescribed by the City for the same period. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.150 Rotational list.
The Police Chief shall develop a rotational list of franchisees selected to provide nonconsensual police towing services to the City. The franchisee at the top of the list shall be on call to provide towing service to the City in accordance with the rotation system established by the Police Chief. Franchisees selected to provide nonconsensual police towing services shall abide by the rotation system established by the Police Chief. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)
5.44.160 Reservation of authority to conduct towing operations.
Nothing in this chapter shall be construed to restrict or prohibit the City from conducting its own towing operations or maintaining its own towing storage yard, either in lieu of, or in addition to, any franchise agreement that is awarded pursuant to this chapter. (Ord. 2065 § 1(A), 2018; Ord. 2042 § 1 (Exh. A), 2016)