HomeMy WebLinkAboutD- 4 Agreement for Non-Exclusive Official Police Tow and Garage Services A
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To: Honorable Mayor and City Council
From: John Broderick, Chief of Police -C- ---Cp). 0...4-kAZ
Via: Rick Cole, City Manager(LI'
Date: January 26, 1999
Subject: Agreement For Non-Exclusive Official Police Tow and Garage Services
RECOMMENDATION: Proposed tow truck franchise agreements are presented for the City
Council's consideration. Staff recommends that the City Council approve the agreements.
BACKGROUND:The City is authorized,pursuant to Vehicle Code Section 22660,to grant a non-
exclusive franchise to tow truck operators to provide towing and garage services to the City's Police
Department. The City is also authorized to impose and collect a franchise fee from tow truck
operators for the benefit of using the public streets. The agreements between the City and the tow
truck operators who are currently providing towing and garage services to the Police Department
function on a month-to-month basis. These agreements do not require the tow truck operators to pay
franchise fees to the City for the privilege of using the City's streets, which deprives the City of
revenue to which it is entitled. The City Attorney and staff believe that it is in the best interest of
the City to approve a standard tow truck franchise agreement which sets forth the rights and
obligations of the City and tow truck operators who are granted a franchise to provide towing and
garage services to the City's Police Department. Each tow operator that is selected by the City to
provide such services will be required to sign a tow truck franchise agreement.
HIGHLIGHTS OF AGREEMENT:
• Tow truck operators and their employees are required to behave courteously and
professionally to the general public and City staff.
• Tow truck operators are required to provide appropriate storage for vehicles towed pursuant
to the agreement.
• The agreement does not guarantee that any one tow truck operator will be called upon by the
City to provide towing and garage services. The City only represents that tow truck
operators that are granted franchises shall be placed on a rotation list and may be periodically
requested by the City to perform services pursuant to the terms of the agreement.
• The agreement regulates the amount tow truck operators may charge the public for towing
and storage services provided under the agreement.
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• Tow truck operators are required to pay to the City ten percent(10%)of their gross revenues
attributable to the services provided under the agreement,payable on a monthly basis.
• Tow truck operators are required to maintain certain liability and property damage insurance.
• The City may terminate the agreement and the franchise if a tow truck operator breaches the
agreement or otherwise defaults in its performance under the agreement.
FISCAL IMPACT:The average number of police ordered tows is seventy(70)per month in Azusa.
This agreement will only require the tow operators to submit payment on a police tow which has the
appropriate case number and police report assigned to it. Coupled with the administrative release
fee collected at the Police Department at the time a towed vehicle is authorized to be released,which
is currently $50.00 per vehicle, it is expected that this franchise agreement will generate
approximately$50,000.00 per year.
ATTACHMENTS:
1. Proposed Franchise Agreement with: Cities Towing, 1042 W. Gladstone St.,Azusa
CA 91702.
2. Proposed Franchise Agreement with: Freeman's Towing, 632 N. Alameda Ave.,
Azusa CA 91702.
3. Proposed Franchise Agreement with:Johnny's Towing, 812 N.Azusa Ave.,Azusa
CA 91702.
Prepared By:
Robert B. Garcia
Administrative Captain
Sonia Rubio Carvalho
City Attorney