HomeMy WebLinkAboutE-5 Staff Report - Tow AgendaCONSENT ITEM
E-5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: ROCKY WENRICK, CHIEF OF POLICE
DATE: APRIL 17, 2023
SUBJECT: AWARD OF POLICE TOWING SERVICES CONTRACTS
BACKGROUND:
In November 2014, the Azusa Police Department entered into non-exclusive towing franchise
agreements with Jan’s Towing, Royal Coaches Towing, and San Gabriel Valley Towing for non-
consensual tow truck services. The term of these franchise agreements was for (5) five years from
the their effective date; automatically renewed for (3) three additional one-year periods.
As required by the Azusa Municipal Code, a “Request for Proposals” (RFP) was solicited from
qualified providers located within a one-mile radius of the City of Azusa. The RFP was posted on
our City website and Planet Bid to ensure adequate notice and competition. On February 06, 2023,
the City received four proposals.
RECOMMENDATIONS:
Staff recommends that the City Council take the following action(s):
1)Award the attached towing service contracts per Request for Proposals (RFP) for Police
Tow, Impound and Referral Tow Services to:
a.Royal Coaches Auto Body & Towing, 208 N. Aspan Ave., Azusa, California
91702; and
b. Jan’s Towing, 1045 W. Kirkwall Ave., Azusa, California 91702
The term of both contracts is five calendar years commencing on the date the Agreement
is approved by City Council. The contracts allow the option of renewing for three
additional one-year terms.
Approved
City Council
April 17, 2023
Award Police Towing Services Contract
April 17, 2023
Page 2
2) Authorize the Mayor or Chief of Police to execute the tow service contracts; and
3) Authorize the City Manager to grant a maximum of three (3), one-year extensions, upon a
showing of satisfactory performance as may be recommended by the Azusa Police
Department.
ANALYSIS:
In the Request for Proposal, several requirements and criteria were outlined. The RFP also
indicated that the services shall be performed in accordance with the terms, conditions, and
specifications contained in this Request for Proposals. The RFP also stated that the City of Azusa
requires a well-managed firm with secure and well-maintained facilities.
On February 28, 2023, a committee comprised of Azusa Police and City Personnel, met and
reviewed the (4) four submitted proposals. The RFP also required that the City’s Police
Department be allowed to conduct on-site inspections of each bidder’s business facilities to
confirm their compliance with all of the RFP’s requirements.
At the conclusion of the inspections, it was determined that one proposal did not meet the listed
requirements in the RFP because their primary storage lot was not in the City limits or within a
one mile radius. Another proposer informed staff that they would be moving their operations to
another City and were withdrawing from consideration.
The committee reviewed both Royal Coaches Auto Body & Towing and Jan’s Towing submitted
proposals and conducted site inspections of both locations and did not determine any disqualifying
information. Both businesses appeared to meet the criteria indicated in the published Request for
Proposal. After reviewing the proposals the committee conducted site inspections of each of the
four business facilities.
The intent of the solicitation was to award contracts to the businesses that met the requirements
outlined in the RFP as well as displayed a well-managed and reliable business. The award of the
contracts will be contingent upon each of the tow companies meeting all the requirements set forth
in the Tow Policy, Municipal Code, and Franchise Agreement.
After review and comparison of all of the towing proposals received, it is recommended that the
City Council award contracts for police towing services to Royal Coaches Auto Body & Towing
and Jan’s Towing. The recommended towing service contracts are attached to this report.
FISCAL IMPACT:
In Fiscal Year 2021/2022 the Police Department collected approximately $54,558.73 in franchise
fees based off of 25% of their gross revenues attributable to services within the previous
agreement. However, the attached agreement requires each towing company to pay the City a
franchise fee in an amount equal to 30% of their gross revenues attributable to the towing, storage,
Award Police Towing Services Contract
April 17, 2023
Page 3
and impound services provided in conjunction with the agreement when the appropriate police
report is completed and Police Department case number has been assigned. Based on the new 30%
formula, it is anticipated the Police Department collected franchise fees will increase annually.
The proposed agreement will enhance the general fund revenues under account 10-20-310-000-
4143
Prepared by: Reviewed by:
Chris Grant Rocky Wenrick
Police Captain Chief of Police
Fiscal Review by: Reviewed and Approved by:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachments:
1)Request for Proposals
2)Franchise Agreement Royal Coaches Auto Body & Towing
3)Franchise Agreement Jan’s Towing
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City of Azusa
Request for Proposals:
POLICE TOW, IMPOUND AND REFERRAL
TOW SERVICES
Proposals Due:
5:30 P.M.
February 21, 2023
City of Azusa
City Clerk’s Office
213 E. Foothill Blvd
Azusa, CA 91702
Contact:
Chris Grant
Police Captain
City of Azusa
725 N. Alameda Avenue
Azusa, CA 91702
(626)812-3200 Ext. 3264
cgrant@azusaca.gov
Attachment 1
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INTRODUCTION
The City of Azusa invites proposals from qualified vendors to provide vehicle towing, storage and
referral tow services as requested by the Azusa Police Department. The services shall be performed
in accordance with the terms, conditions, and specifications contained in this Request for Proposals
(RFP).
The City of Azusa requires a well-managed and financially sound firm(s) with a demonstrated history
of experience and technical ability, qualified and trained personnel, secure and well-maintained
facilities, updated and reliable equipment, and high level of customer service to fulfill the
requirements outlined in this RFP.
INSTRUCTIONS
This RFP includes a description of the scope of services, proposals requirements, and instructions
for submitting your proposal. Failure to comply with these instructions may result in rejection of your
proposal.
No oral representations or interpretations will be made to any interested proposer as to the meaning
of the RFP. Questions, regarding this RPF should be sent via e-mail to Captain Chris Grant at the
address noted above.
Background
The City operates under the Council-Manager form of government. The City is full-service except for its Fire
Department which is contracted with Los Angeles County Fire Department. The City covers approximately 10
square miles and boasts a diverse population of over 48,000. The estimated median household income is over
$56,000. The City is proud of its mix of small businesses, support services, manufacturers and large institutional
employers such as Azusa Pacific University. The City is home to two Metro Gold Line Light Rail Stations as part
of the Foothill Gold Line from Pasadena to Azusa. The stations are located in the heart of downtown, Azusa
Downtown Station, and adjacent to Azusa Pacific University and Citrus College, APU/Citrus College Station.
The City is strategically located off the 210 Freeway within a 30 minute drive to Pasadena, Orange County, Inland
Empire, and the Ontario International Airport. In addition to its convenient freeway access, Azusa offers several
major traffic corridors including the renowned U.S. Route 66 (Foothill Boulevard) which runs east to west through
the community. The California State Route 39 runs north to the newly designated San Gabriel Mountains National
Monument and south to the beach.
TENATIVE SCHEDULE
The following represents the schedule for this RFP.
RFP released by the City January 23, 2023
Deadline for Final Questions February 03, 2023
City Responses to Written Questions February 13, 2023
Proposal Submission Deadline February 21, 2023
Site Inspections February 28, 2023
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Contract Approval by City Council April 2023
Commencement of Services April 2023
SCOPE OF SERVICES
The scope of services to be provided and tow operator requirements are described in Exhibit “A” of
this RFP.
SITE INSPECTION OF TOWING FACILITIES
Prior to contract award, the City will conduct on-site inspections of each bidder’s business
facilities.
AGREEMENT TERM
The initial contract will be from the date of the award for a term of three (5) calendar years . The City
reserves the right, in it’s sole discretion, to renew the contract for up to, three one-year extended
calendar year terms. The successful proposer(s) who is/are awarded the contract shall not assign
or otherwise transfer the same during the life of the initial and any extended term of the contract.
DOCUMENTS INCLUDED WITH THIS RFP
Name Description Where to find
Attachment A Proposal Certification In main RFP document
Attachment B Technical Proposal In main RFP document
Attachment C Cost Proposal In main RFP document
Attachment D Previous customer
reference worksheet
In main RFP document
Attachment E Exemplar Consultant
Services Agreement which
includes Insurance
Requirements.
Separate Attachment
PROPOSAL SUBMITTAL REQUIREMENTS
GENERAL
You must respond to this RFP by the due date and time as set in the RFP. Proposals submitted after
the due date and time will not be opened or considered. Each Proposal must conform and be
responsive to all requirements set forth in the RFP to be deemed responsive. Proposals deemed
non-responsive will not be considered.
The following minimum information should be provided in each sealed proposal and will be utilized in
evaluating each proposal submitted.
NO ORAL, FACSIMILE OR TELEPHONIC BIDS OR ALTERATIONS WILL BE CONSIDERED.
The City of Azusa reserves the right to reject any and all proposals, to waive any informalities in any
proposal and select the one that best meets the City’s needs.
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FORMATTING
The Proposal must be in Times New Roman, Arial or some similar, easily readable font. The size of
the font cannot be any smaller than 11 point typeface and margins should be 1 inch or wider.
COVER LETTER
Provide a cover letter providing an overview of proposer’s general expertise, capacity, experience,
and approach to performing the work described in this RFP.
The cover letter should address any pending or current litigation related to services provided by your
firm, and any terminated contracts within the past five years with an explanation of the reasons for
termination.
TECHNICAL PROPOSAL
Provide a technical proposal as Attachment B, Technical Proposal and include the following:
Company Overview
1. Provide the names and background information on key staff members that will be
assigned to this project.
2. Include a client list with contact information where your firm has performed similar
services, and when they were performed.
3. Describe the company’s storage facilities to be utilized in the performance of the services
4. Provide detailed description of the facilities security
Project/Design Approach
1. Provide a brief description of the plan and approach you will take to accomplish to
complete the Scope of Services.
2. Please present a high-level timeline for the services performed, from project kick-off to
completion.
3. Include key assumptions that you are making regarding the commitment of City time
and resources that are required for the completion of services.
COST PROPOSAL
Provide a not-to-exceed cost proposal using Attachment C, Cost Proposal.
ATTACHMENTS
Attachment A - Proposal Certification
Attachment B - Technical Proposal
Attachment C - Cost Proposal (see above)
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Attachment D - Previous Customer Reference Worksheet
Please provide two client references. Complete this form by providing a description of the
work performed for the reference customer as it relates to the work described in this RFP.
Copy the form as appropriate to provide the required number of references.
Attachment E - Exemplar Consultant Services Agreement which includes Insurance
Requirements.
Selected proposer(s) will be required to enter a final agreement with the City containing the
terms and conditions and insurance provisions set forth in Attachment D.
SUBMISSION OF PROPOSALS
One (1) unbound copy, three (3) bounded copies and one (1) electronic copy of all sealed proposals
must be received in the City of Azusa, City Clerk’s Office by 5:30 p.m. on February 21, 2023. It is the
responsibility of the Consultant to see that any proposal sent through mail, or any other delivery method,
should have sufficient time to be received by the City of Azusa, City Clerk’s Office prior to the proposal
due date and time. Late proposals will not be accepted. Proposals should be clearly marked and
submitted to: City of Azusa City Clerk’s Office, 213 E. Foothill Blvd Azusa, CA 91702
All inquiries to this proposal shall be submitted no later than 2:00 P.M., on February 3, 2023. Emails or
mail must be clearly referenced as, “Police Towing and Impound Services.” Any questions or comments
received after February 3, 2023, will be disregarded via mail or e-mail to: Chris Grant, Police Captain,
Azusa Police Department, 725 N. Alameda Avenue, Azusa, CA 91702. Email: cgrant@azusaca.gov.
SELECTION PROCESS AND EVALUATION CRITERIA
SELECTION PROCESS
1. Proposal Review Phase - Proposals will be evaluated per the criteria and weights
listed in the table below
2. Vendor Interview Phase - At the City’s discretion, firms submitting the highest scoring
proposals may be interviewed and scored per the criteria and weights in the table
below.
3. The Final Selection Phase - Will be based on the Proposal Review Phase as well as
the Vendor Interview Phase if one is deemed necessary.
4. The City reserves the right to rely on information from sources other than the
information provided by the respondents.
5. Final award(s) shall be contingent upon selected firm(s) (Consultant) accepting the
Terms and Conditions of the attach contract for professional services (with any
exceptions to the same approved by the City).
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EVALUATION CRITERIA
Description Proposal
Review Phase
Proposal Responsiveness Pass/Fail
Experience/Qualifications of Staff 34%
Understanding of the Scope of Services 33%
Proposed Cost 33%
TOTAL Proposal Score 100%
Description Vendor
Interview Phase
Oral Interview 100%
TOTAL Vendor Score 100%
BEST AND FINAL OFFER (BAFO)
1. A Best and Final Offer (BAFO) may be held with one or more finalist(s) if final information
or clarification is necessary in order to make a final decision. The BAFO may allow
proposers to revise their proposals based on information received from the City. The City
will send out the request for a BAFO with instructions addressing the areas to be covered
and the date and time in which the BAFO is to be submitted. After receipt of the BAFO,
scores may be adjusted based on the new information received in the BAFO.
2. The City will request only one BAFO, unless the City’s Purchasing Officer determines that
another BAFO is warranted.
3. Proposers are cautioned that the BAFO is optional and at the sole discretion of the City.
Therefore, Proposers should not assume that there would be an additional opportunity to
amend their technical or price proposals after their original submission of technical and cost
proposals. Proposers may not request an opportunity to submit a BAFO.
AWARD OF THE CONTRACT
The City of Azusa will receive competitive proposals from firms having specific experience and
qualifications in the areas identified in this solicitation. Once the selection process is completed, a
negotiated contract will be awarded to the firm(s) that best meets the proposed needs.
TOW LICENSE FEE
The firm(s) shall pay to the City a one-time administrative franchise fee of ($1,500) to reimburse the City for
costs associated with development of this Franchise Agreement upon execution of this Agreement.
It is the intent of the City to collect a Tow License Fee from each firm desiring to tow police impounds and
referrals. Operator(s) agrees to pay the City a “Franchise Fee” in an amount equal to thirty percent (30%)
of Operator’s Gross Revenues attributable to the towing, storage and impound Operator’s Services provided
in conjunction with this Agreement for those vehicles towed, stored, or impounded when a storage form
(CHP 180) has been completed and a AZPD case number has been assigned. For purpose of this
Agreement, the term “Gross Revenues” means all cash, credits, revenues, property of any kind or nature
or other consideration as determined according to generally accepted accounting principles consistently
applied, derived directly or indirectly by Operator, it’s affiliates, subsidiaries, parents, and any other person
or entity in which Operator has a financial interest or which has a financial interest in Operator’s tow
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business, arising from or attributable to the towing and storage Operator Services provided.
Payment of the Franchise Fee must be submitted to the city quarterly, on the first day of July, October,
January and April. Failure to remit fees is grounds for suspension and/or revocation of any award of Contract
by the City of Azusa in its sole determination.
The Tow License Fee is payable quarterly, on the first day of July, October, January and April.
GROUNDS FOR DISQUALIFICATION
1. Factors, such as, but not limited to, any of the following, may disqualify a proposal without
further consideration:
a. Evidence of collusion: Proposer represents and warrants that its proposal is genuine
and made in the interest of or on behalf of any person not named therein; that the
Proposer has not directly induced or solicited any other person to submit a sham
proposal or any other person to refrain from submitting a proposal; and that the
Proposer has not in any manner sought collusion to secure any improper advantage
over any other person submitting a proposal.
b. Any attempt to improperly influence any member of the evaluation team.
c. Existence of any lawsuit, unresolved contractual claim or dispute between Proposer
and the City.
d. Evidence of incorrect information submitted as part of the proposal.
e. Evidence of Proposer’s inability to successfully complete the responsibilities and
obligations of the proposal.
f. Contact regarding this procurement with any City official or employee or evaluation
team member other than the Procurement Contact from the time of issuance of this
solicitation until a recommendation of award is made.
g. Proposer’s default under any previous agreement with the City.
CONFLICT OF INTEREST
Proposer(s) may not have any interest in any potential future City procurements that may result from
the work performed under the agreement resulting from this RFP.
GENERAL INFORMATION
1. The successful Proposer will be required to enter into an agreement with terms and
conditions in substantial conformity with Attachment E of this RFP.
2. The successful Proposer will be required to demonstrate evidence of insurance in
accordance with the insurance provisions listed in Attachment E of this RFP.
3. All costs associated with responding to this request are to be borne by the Proposer.
4. It is the City’s policy that the selected firm shall not discriminate, in any way, against any
person on the basis of race, sex, color, religion, religious creed, national origin, ancestry,
age, gender, marital status, physical disability, mental disability, medical condition, genetic
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information, sexual orientation, gender expression, gender identity, military and veteran
status, or ethnic background, in violation of federal, state or local law, in connection with or
related to the performance of City of Azusa contracts.
5. An agreement shall not be binding or valid with the City unless and until it is approved by
the City Council, if so required, and executed by authorized representatives of the City and
of the Proposer and the City issues a written “notice to proceed.”
RIGHTS OF THE CITY OF AZUSA
A. This RFP does not commit the City to enter into a contract, nor does it obligate the City to
pay for any costs incurred in preparation and submission of responsive proposals or in
anticipation of a contract. The City reserves the right to:
a. Accept a proposal in full, or in part.
b. Make the selection based on its sole discretion.
c. Reject any and all proposals.
d. Issue subsequent Requests for Proposals.
e. Postpone opening proposals for any reason.
f. Approve or disapprove the use of particular sub consultants.
g. Negotiate with any, all, or none of the Proposers.
h. Accept other than the lowest monetary proposal.
i. Waive informalities and irregularities in any proposal(s).
j. Enter into an agreement with another vendor in the event the originally selected vendor
defaults or fails to execute an agreement with the City.
PUBLIC NATURE OF PROPOSAL MATERIAL
1. All correspondence with the City including responses to this RFP will become the exclusive
property of the City and will become public records under the California Public Records Act
(Cal. Government Code §§ 6250 et seq.) All documents that you send to the City will be
subject to disclosure if requested by a member of the public.
ATTACHMENT A
Proposal Certification
Proposing Firm
Name:
Address:
Telephone:
Facsimile:
E-mail:
Contact person name and title:
PROPOSER REPRESENTATIONS
1. Acknowledgement of Receipt of _____ Addendum ________Initial
2. Proposer did not, in any way, collude, conspire, or agree, directly or indirectly, with any
person, firm, corporation or other Proposer in regard to the amount, terms, or conditions of
this proposal.
3. Proposer acknowledges that all requests for deviations, exceptions, and approved equals
are enclosed herein and that only those deviations, exceptions, and approved equals
included in the RFP document or permitted by formal addenda are accepted by the City.
4. Proposer did not receive unauthorized information from any City staff member or City
Consultant during the Proposal period except as provided for in the Request for
Qualifications package, formal addenda issued by the City, or the pre-proposal
conference.
5. As suppliers of goods or services to the City of Azusa, Proposer and individuals listed
below certify that they do not discriminate in employment of any person because of race,
sex, color, religion, religious creed, national origin, ancestry, age, gender, marital status,
physical disability, mental disability, medical condition, genetic information, sexual
orientation, gender expression, gender identity, military and veteran status, or ethnic
background; and that they are in compliance with all Federal, State and local laws,
directives and executive orders regarding nondiscrimination in employment.
6. Proposer hereby certifies that the information contained in the proposal and all
accompanying documents is true and correct.
7. Please check the appropriate box below:
If the proposal is submitted by an individual, it shall be signed by him or her, and if he
or she is doing business under a fictitious name, the proposal shall so state.
If the proposal is submitted by a partnership, the full names and addresses of all
members and the address of the partnership shall be stated and the proposal shall be
signed for all members by one or more members thereof.
If the proposal is submitted by a corporation, it shall be signed in the corporate name
by an authorized officer or officers.
If the proposal is submitted by a limited liability company, it shall be signed in the
corporate name by an authorized officer or officers.
If the proposal is submitted by a joint venture, the full names and addresses of all
members of the joint venture shall be stated and it shall be signed by each individual.
By signing below, the submission of a proposal with all accompanying documents
shall be deemed a representation and certification by the Proposer that they have
investigated all aspects of the RFP, that they are aware of the applicable facts
pertaining to the RFP process, its procedures and requirements, and that they have
read and understand the RFP.
Authorized Representative
Signature:
Authorized Representative
Print name:
Authorized Representative
Title (Print title):
Complete additional signatures below as required per # 8 above
Authorized Representative
Signature:
Authorized Representative
Print name:
Authorized Representative
Title (Print title):
Authorized Representative
Signature:
Authorized Representative
Print name:
Authorized Representative
Title (Print title):
ATTACHMENT B
TECHNICAL Proposal – Phase 1
Technical Proposal shall include a company overview and project approach as outlined in the RFP.
ATTACHMENT C
COST Proposal – Phase 1
Pricing shall be not to exceed pricing and inclusive of all expenses including but not limited to
labor, travel, per diem, and related expenses, sales tax, overhead, and profit.
Please provide a high level breakdown of the labor by discipline (eg program manager, designer,
etc.) the estimated number of hours, and hourly and extended rates.
All-inclusive not to exceed Contract Price as described above: $
ATTACHMENT D
PREVIOUS CUSTOMER REFERENCE WORKSHEET
Provide reference information for the service you are proposing in an environment similar
in size and scope to the requirements of this project. Copy this form as appropriate.
Name of Customer:
Customer Address
Customer Contact Name(s)
Customer Contact Phone Number(s)
Brief description of work performed for this client (use additional sheets if necessary and
include is reference is for broker, claims or administrative services):
ATTACHMENT E
EXEMPLAR CONSULTANT SERVICES AGREEMENT
CITY OF AZUSA
AGREEMENT FOR TOWING CONTRACT SERVICES
________________
THIS AGREEMENT FOR CONTRACT SERVICES (herein “Agreement”) is made and
entered into this ____ day of _______, 2023, by and between the CITY OF AZUSA, a California
municipal corporation (“City”) and ______________ (herein “Operator”).
NOW, THEREFORE, the parties hereto agree as follows:
1. SERVICES OF OPERATOR
1.1 Scope of Services. In compliance with all of the terms and conditions of this
Agreement, the Operator shall perform the work or services set forth in the “Scope of Services”
attached hereto as Exhibit “A” and incorporated herein by reference. Operator warrants that it has
the experience and ability to perform all work and services required hereunder and that it shall
diligently perform such work and services in a professional and satisfactory manner.
1.2 Compliance with Law. All work and services rendered hereunder shall be provided
in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any
Federal, State or local governmental agency of competent jurisdiction.
1.3 Licenses, Permits, Fees and Assessments. Operator shall obtain at its sole cost and
expense such licenses, permits, and approvals as may be required by law for the performance of
the services required by the Agreement.
1.4 Special Requirements. Additional terms and conditions of this Agreement, if any,
which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit
“B” and incorporated herein by this reference. In the event of a conflict between the provisions of
Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern.
2. COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to this Agreement, Operator shall be
compensated in accordance with the “Schedule of Compensation” attached hereto as Exhibit “C”
and incorporated herein by this reference, but not exceeding the maximum contract amount of
______________________________ Dollars ($________) (“Contract Sum”).
2.2 Invoices. Each month Operator shall furnish to City an original invoice for all work
performed and expenses incurred during the preceding month in a form approved by City’s
Director of Finance. By submitting an invoice for payment under this Agreement, Operator is
certifying compliance with all provisions of the Agreement. The invoice shall detail charges for
all necessary and actual expenses by the following categories: labor (by sub -category), travel,
materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be
detailed by such categories. Operator shall not invoice City for any duplicate services performed
by more than one person.
City shall independently review each invoice submitted by the Operator to determine whether the
work performed and expenses incurred are in compliance with the provisions of this Agreement.
Except as to any charges for work performed or expenses incurred by Operator which are disputed
by City, City will use its best efforts to cause Operator to be paid within forty five (45) days of
receipt of Operator’s correct and undisputed invoice; however, Operator acknowledges and agrees
that due to City warrant run procedures, the City cannot guarantee that payment will occur within
this time period. In the event any charges or expenses are disputed by City, the original invoice
shall be returned by City to Operator for correction and resubmission. Review and payment by
the City of any invoice provided by the Operator shall not constitute a waiver of any rights or
remedies provided herein or any applicable law.
2.3 Additional Services. City shall have the right at any time during the performance of
the services, without invalidating this Agreement, to order extra work beyond that specified in the
Scope of Services or make changes by altering, adding to or deducting from said work. No such
extra work may be undertaken unless a written order is first given by the Project Manager to the
Operator, incorporating therein any adjustment in (i) the Contract Sum for the actual cost of the
extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to
the written approval of the Operator. Any increase in compensation of up to ten percent (10%) of
the Contract Sum but not exceeding a total contract amount of Five Thousand Dollars ($5,000) or
in the time to perform of up to ninety (90) days may be approved by the Project Manager. Any
greater increases, taken either separately or cumulatively, must be approved by the City Council.
No claim for an increase in the Contract Sum or time for performance shall be valid unless the
procedures established in this Section are followed.
3. PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of this Agreement.
3.2 Schedule of Performance. Operator shall commence the services pursuant to
this Agreement upon receipt of a written notice to proceed and shall perform all services within
the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D”
and incorporated herein by this reference. When requested by the Operator, extensions to the time
period(s) specified in the Schedule of Performance may be approved in writing by the Project
Manager but not exceeding thirty (30) days cumulatively.
3.3 Force Majeure. The time period(s) specified in the Schedule of Performance
for performance of the services rendered pursuant to this Agreement shall be extended because of
any delays due to unforeseeable causes beyond the control and without the fault or negligence of
the Operator, including, but not restricted to, acts of God or of the public enemy, unusually severe
weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight
embargoes, wars, litigation, and/or acts of any utility company or governmental agency, including
the City, if the Operator shall within ten (10) days of the commencement of such delay notify the
Project Manager in writing of the causes of the delay. The Project Manager shall ascertain the
facts and the extent of delay, and extend the time for performing the services for the period of the
enforced delay when and if in the judgment of the Project Manager such delay is justified. The
Project Manager’s determination shall be final and conclusive upon the parties to this Agreement.
In no event shall Operator be entitled to recover damages against the City for any delay in the
performance of this Agreement, however caused, Operator’s sole remedy being extension of the
Agreement pursuant to this Section.
3.4 Term. Unless earlier terminated in accordance with Article 7 of this Agreement,
this Agreement shall continue in full force and effect until completion of the services but not
exceeding one (1) year from the date hereof, except as otherwise provided in the Schedule of
Performance (Exhibit “D”).
4. COORDINATION OF WORK
4.1 Representative of Operator. ____________________________ is hereby
designated as being the representative of Operator authorized to act on its behalf with respect to
the work and services specified herein and make all decisions in connection therewith. All
personnel of Operator and any authorized agents shall be under the exclusive direction of the
representative of Operator. Operator shall utilize only competent personnel to perform services
pursuant to this Agreement. Operator shall make every reasonable effort to maintain the stability
and continuity of Operator’s staff and subcontractors, and shall keep City informed of any changes.
4.2 Project Manager. ______________________________ [or such person as may
be designated by the City Engineer or Public Works Director/Community Services Director] is
hereby designated as being the representative the City authorized to act in its behalf with respect
to the work and services specified herein and to make all decisions in connection therewith
(“Project Manager”).
4.3 Prohibition Against Subcontracting or Assignment. Operator shall not contract
with any entity to perform in whole or in part the work or services required hereunder without the
express written approval of the City. Neither this Agreement nor any interest herein may be
assigned or transferred, voluntarily or by operation of law, without the prior written approval of
City. Any such prohibited assignment or transfer shall be void.
4.4 Independent Contractor. Neither the City nor any of its employees shall have
any control over the manner, mode or means by which Operator, its agents or employees, perform
the services required herein, except as otherwise set forth. Operator shall perform all services
required herein as an independent contractor of City with only such obligations as are consistent
with that role. Operator shall not at any time or in any manner represent that it or any of its agents
or employees are agents or employees of City, or that it is a member of a joint enterprise with City.
5. INSURANCE AND INDEMNIFICATION
5.1 Insurance Coverages. The Operator shall procure and maintain, at its sole
cost and expense, in a form and content satisfactory to City, during the entire term of this
Agreement including any extension thereof, the following policies of insurance which shall cover
all elected and appointed officers, employees and agents of City:
(a) Commercial General Liability Insurance (Occurrence Form CG0001 or
equivalent). A policy of comprehensive general liability insurance written on a per occurrence
basis for bodily injury, personal injury and property damage. The policy of insurance shall be in
an amount not less than $2,000,000.00 per occurrence or if a general aggregate limit is used, either
the general aggregate limit shall apply separately to this contract/location, or the general aggregate
limit shall be twice the occurrence limit.
(b) Worker’s Compensation Insurance. A policy of worker’s compensation
insurance in such amount as will fully comply with the laws of the State of California and which
shall indemnify, insure and provide legal defense for the Operator against any loss, claim or
damage arising from any injuries or occupational diseases occurring to any worker emp loyed by
or any persons retained by the Operator in the course of carrying out the work or services
contemplated in this Agreement.
(c) Automotive Insurance (Form CA 0001 (Ed 1/87) including “any auto” and
endorsement CA 0025 or equivalent). A policy of comprehensive automobile liability insurance
written on a per occurrence for bodily injury and property damage in an amount not less than either
(i) bodily injury liability limits of $100,000 per person and $300,000 per occurrence and property
damage liability limits of $150,000 per occurrence or (ii) combined single limit liability of
$1,000,000. Said policy shall include coverage for owned, non-owned, leased, hired cars, and any
other automobile.
(d) Professional Liability. Professional liability insurance appropriate to the
Operator’s profession. This coverage may be written on a “claims made” basis, and must include
coverage for contractual liability. The professional liability insurance required by this Agreement
must be endorsed to be applicable to claims based upon, arising out of or related to services
performed under this Agreement. The insurance must be maintained for at least 5 consecutive
years following the completion of Operator’s services or the termination of this Agreement.
During this additional 5-year period, Operator shall annually and upon request of the City submit
written evidence of this continuous coverage.
(e) Additional Insurance. Policies of such other insurance, as may be required
in the Special Requirements in Exhibit “B”.
(f) Subcontractors. Operator shall include all subcontractors as insureds under
its policies or shall furnish separate certificates and certified endorsements for each subcontractor.
All coverages for subcontractors shall be subject to all of the requirements stated herein.
5.2 General Insurance Requirements.
All of the above policies of insurance shall be primary insurance and shall name the City,
elected and appointed officers, employees and agents as additional insureds and any insurance
maintained by City or officers, employees or agents may apply in excess of, and not contribute
with Operator’s insurance. The insurer is deemed hereof to waive all rights of subrogation and
contribution it may have against the City, officers, employees and agents and their respective
insurers. The insurance policy must specify that where the primary insured does not satisfy the
self-insured retention, any additional insured may satisfy the self-insured retention. All of said
policies of insurance shall provide that said insurance may not be amended or cancelled by the
insurer or any party hereto without providing thirty (30) days prior written notice by certified mail
return receipt requested to the City. In the event any of said policies of insurance are cancelled,
the Operator shall, prior to the cancellation date, submit new evidence of insurance in conformance
with this Section 5.1 to the Project Manager. No work or services under this Agreement shall
commence until the Operator has provided the City with Certificates of Insurance, additional
insured endorsement forms or appropriate insurance binders evidencing the above insurance
coverages and said Certificates of Insurance or binders are approved by the City. City reserves
the right to inspect complete, certified copies of and endorsement to all required insurance policies
at any time. Any failure to comply with the reporting or other provisions of the policies including
breaches or warranties shall not affect coverage provided to City.
The insurance required by this Agreement shall be satisfactory only if issued by companies
qualified to do business in California, rated “A” or better in the most recent edition of Best Rating
Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category
Class VII or better, unless such requirements are waived by the City’s Risk Manager or other
designee of the City due to unique circumstances.
5.3 Indemnification. To the full extent permitted by law, Operator agrees to
indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified
Parties”) against, and will hold and save them and each of them harmless from, any and all actions,
either judicial, administrative, arbitration or regulatory claims, damages to persons or property,
losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened
(herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising
out of or in connection with the negligent performance of the work, operations or activitie s
provided herein of Operator, its officers, employees, agents, subcontractors, or invitees, or any
individual or entity for which Operator is legally liable (“indemnitors”), or arising from Operator’s
or indemnitors’ reckless or willful misconduct, or arising from Operator’s or indemnitors’
negligent performance of or failure to perform any term, provision, covenant or condition of this
Agreement, and in connection therewith:
Operator will defend any action or actions filed in connection with any of said claims or
liabilities and will pay all costs and expenses, including legal costs and attorney’s fees incurred in
connection therewith;
Operator will promptly pay any judgment rendered against the City, its officers, agents or
employees for any such claims or liabilities arising out of or in connection with the negligent
performance of or failure to perform such work, operations or activities of Operator hereunder;
and Operator agrees to save and hold the City, its officers, agents, and employees harmless
therefrom;
In the event the City, its officers, agents or employees is made a party to any action or
proceeding filed or prosecuted against Operator for such damages or other claims arising out of or
in connection with the negligent performance of or failure to perform the work, operation or
activities of Operator hereunder, Operator agrees to pay to the City, its officers, agents or
employees, any and all costs and expenses incurred by the City, its officers, agents or employees
in such action or proceeding, including but not limited to, legal costs and attorney’s fees.
Operator shall incorporate similar indemnity agreements with its subcontractors and if it
fails to do so Operator shall be fully responsible to indemnify City hereunder therefore, and failure
of City to monitor compliance with these provisions shall not be a waiver hereof. This
indemnification includes claims or liabilities arising from any negligent or wrongful act, error or
omission, or reckless or willful misconduct of Operator in the performance of professional services
hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result
of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law,
shall apply to claims and liabilities resulting in part from City’s negligence, except that design
professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the
negligence, recklessness or willful misconduct of the design professional. The i ndemnity
obligation shall be binding on successors and assigns of Operator and shall survive termination of
this Agreement.
6. RECORDS, REPORTS, AND RELEASE OF INFORMATION
6.1 Records. Operator shall keep, and require subcontractors to keep, such ledgers,
books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents
relating to the disbursements charged to City and services performed hereunder (the “books and
records”), as shall be necessary to perform the services required by this Agreement and enable the
Project Manager to evaluate the performance of such services and shall keep such records for a
period of three years following completion of the services hereunder. The Project Manager shall
have full and free access to such books and records at all times during normal business hours of
City, including the right to inspect, copy, audit and make records and transcripts from such records.
6.2 Reports. Operator shall periodically prepare and submit to the Project Manager
such reports concerning the performance of the services required by this Agreement or as the
Project Manager shall require.
6.3 Confidentiality and Release of Information.
(a) All information gained or work product produced by Operator in
performance of this Agreement shall be considered confidential, unless such information is in the
public domain or already known to Operator. Operator shall not release or disclose any such
information or work product to persons or entities other than the City without prior written
authorization from the Project Manager.
(b) Operator shall not, without prior written authorization from the Project
Manager or unless requested by the City Attorne y, voluntarily provide documents, declarations,
letters of support, testimony at depositions, response to interrogatories or other information
concerning the work performed under this Agreement. Response to a subpoena or court order
shall not be considered “voluntary” provided Operator gives the City notice of such court order or
subpoena.
(c) If Operator provides any information or work product in violation of this
Agreement, then the City shall have the right to reimbursement and indemnity from Operator for
any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of
Operator’s conduct.
(d) Operator shall promptly notify the City should Operator be served with any
summons, complaint, subpoena, notice of deposition, request for documents, interrogatories,
request for admissions or other discovery request, court order or subpoena from any party
regarding this Agreement and the work performed thereunder. The City retains the right, but has
no obligation, to represent Operator or be present at any deposition, hearing or similar proceeding.
Operator agrees to cooperate fully with the City and to provide the City with the opportunity to
review any response to discovery requests provided by Operator.
6.4 Ownership of Documents. All studies, surveys, data, notes, computer
files, reports, records, drawings, specifications, maps, designs, photographs, documents and other
materials (the “documents and materials”) prepared by Operator in the performance of this
Agreement shall be the property of the City and shall be delivered to the City upon request of the
Project Manager or upon the termination of this Agreement, and Operator shall have no claim for
further employment or additional compensation as a result of the exercise by the City of its full
rights of ownership use, reuse, or assignment of the documents and materials hereunder. Moreover,
Operator with respect to any documents and materials that may qualify as “works made for hire”
as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for
hire” for the City.
7. ENFORCEMENT OF AGREEMENT AND TERMINATION
7.1 California Law. This Agreement shall be interpreted, construed and governed
both as to validity and to performance of the parties in accordance with the laws of the State of
California. Legal actions concerning any dispute, claim or matter arising out of or in relation to
this Agreement shall be instituted in the Superior Court of the County of Orange, State of
California. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the
Central District of California, in the County of Orange, State of California.
7.2 Disputes; Default. In the event that Operator is in default under the terms of
this Agreement, the City shall not have any obligation or duty to continue compensating Operator
for any work performed after the date of default. Instead, the City may give notice to Operator of
the default and the reasons for the default. The notice shall include the timeframe in which
Operator may cure the default. This timeframe is presumptively thirty (30) days, but may be
extended, if circumstances warrant. During the period of time that Operator is in default, the City
shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices.
If Operator does not cure the default, the City may take necessary steps to terminate this Agreement
under this Article.
7.3 Legal Action. In addition to any other rights or remedies, either party may take
legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any
default, to compel specific performance of this Agreement, to obtain declaratory or injunctive
relief, or to obtain any other remedy consistent with the purposes of this Agreement.
Notwithstanding any contrary provision herein, Operator shall file a statutory claim pursuant to
Government Code Sections 905 et. seq. and 910 et. seq., in order to pursue any legal action under
this Agreement.
Except with respect to rights and remedies expressly declared to be exclusive in this
Agreement, the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the s ame or
different times, of any other rights or remedies for the same default or any other default by the
other party.
7.4 Termination Prior to Expiration of Term. This Section shall govern any
termination of this Contract except as specifically provided in the following Section for
termination for cause. The City reserves the right to terminate this Contract at any time, with or
without cause, upon written notice to Operator. In addition, the Operator may terminate this
Contract at any time for cause, upon sixty (60) days’ advance written notice to City. Upon receipt
of any notice of termination, Operator shall immediately cease all services hereunder except such
as may be specifically approved by the Project Manager. Except where the Operator has initiated
termination, the Operator shall be entitled to compensation for all services rendered prior to the
effective date of the notice of termination and for any services authorized by the Project Manager
thereafter in accordance with the Schedule of Compensation or such as may be approved by the
Project Manager. In the event the Operator has initiated termination, the Operator shall be entitled
to compensation only for the reasonable value of the work product actually produced hereunder,
but not exceeding the compensation provided therefore in the Schedule of Compensation Exhibit
“C”. In the event of termination without cause pursuant to this Section, the terminating party need
not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2.
7.5 Termination for Default of Operator. If termination is due to the failure of the
Operator to fulfill its obligations under this Agreement, City may, after compliance with the
provisions of Section 7.2, take over the work and prosecute the same to completion by contract or
otherwise, and the Operator shall be liable to the extent that the total cost for completion of the
services required hereunder exceeds the compensation herein stipulated (provided that the City
shall use reasonable efforts to mitigate such damages), and City may withhold any payments to
the Operator for the purpose of set-off or partial payment of the amounts owed the City as
previously stated.
8. MISCELLANEOUS
8.1 Covenant Against Discrimination. Operator covenants that, by and for itself,
its heirs, executors, assigns and all persons claiming under or through them, that there shall be no
discrimination against or segregation of, any person or group of persons on account of race, color,
creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other
protected class in the performance of this Agreement. Operator shall take affirmative action to
ensure that applicants are employed and that employees are treated during employment wi thout
regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national
origin, ancestry, or other protected class
8.2 Non-liability of City Officers and Employees. No officer or employee of the
City shall be personally liable to the Operator, or any successor in interest, in the event of any
default or breach by the City or for any amount, which may become due to the Operator or to its
successor, or for breach of any obligation of the terms of this Agreement.
8.3 Notice. Any notice, demand, request, document, consent, approval, or
communication either party desires or is required to give to the other party or any other person
shall be in writing and either served personally or sent by prepaid, first-class mail to City of Azusa
(Attention City Clerk’s Office), 213 E. Foothill Boulevard, Azusa, California 91702 and in the
case of the Operator, to the person(s) at the address designated on the execution page of this
Agreement. Either party may change its address by notif ying the other party of the change of
address in writing. Notice shall be deemed communicated at the time personally delivered or in
seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
8.4 Integration; Amendment. It is understood that there are no oral agreements
between the parties hereto affecting this Agreement and this Agreement supersedes and cancels
any and all previous negotiations, arrangements, agreements and understandings, if any, between
the parties, and none shall be used to interpret this Agreement. This Agreement may be amended
at any time by the mutual consent of the parties by an instrument in writing.
8.5 Severability. In the event that part of this Agreement shall be declared invalid
or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity
or unenforceability shall not affect any of the remaining portions of this Agreement which are
hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder
unless the invalid provision is so material that its invalidity deprives either party of the basic benefit
of their bargain or renders this Agreement meaningless.
8.6 Waiver. No delay or omission in the exercise of any right or remedy by non-
defaulting party on any default shall impair such right or remedy or be construed as a waiver. A
party’s consent to or approval of any act by the other party requiring the party’s consent or approval
shall not be deemed to waive or render unnecessary the other party’s consent to or approval of any
subsequent act. Any waiver by either party of any default must be in writing and shall not be a
waiver of any other default concerning the same or any other provision of this Agreement.
8.7 Attorney’s Fees. If either party to this Agreement is required to initiate or
defend or made a party to any action or proceeding in any way connected with this Agreement, the
prevailing party in such action or proceeding, in addition to any other relief which any be granted,
whether legal or equitable, shall be entitled to reasonable attorney’s fees, whether or not the matter
proceeds to judgment.
8.8 Interpretation.
The terms of this Agreement shall be construed in accordance with the meaning of the
language used and shall not be construed for or against either party by reason of the authorship of
this Agreement or any other rule of construction which might otherwise apply.
8.9 Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed to be an
original, and such counterparts shall constitute one and the same instrument.
8.10 Warranty & Representation of Non-Collusion. No official, officer, or
employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any
official, officer, or employee of City participate in any decision relating to this Agreement which
may affect his/her financial interest or the financial interest of any corporation, partnership, or
association in which (s)he is directly or indirectly interested, or in violation of any corporation,
partnership, or association in which (s)he is directly or indirectly interested, or in violation of any
State or municipal statute or regulation. The determination of “financial interest” shall be
consistent with State law and shall not include interests found to be “remote” or “noninterests”
pursuant to Government Code Sections 1091 or 1091.5. Operator warrants and represents that it
has not paid or given, and will not pay or give, to any third party including, but not limited to, any
City official, officer, or employee, any money, consideration, or other thing of value as a result or
consequence of obtaining or being awarded any agreement. Operator further warrants and
represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion
that would result in the payment of any money, consideration, or other thing of value to any third
party including, but not limited to, any City official, officer, or employee, as a r esult of
consequence of obtaining or being awarded any agreement. Operator is aware of and understands
that any such act(s), omission(s) or other conduct resulting in such payment of money,
consideration, or other thing of value will render this Agreement void and of no force or effect.
Operator’s Authorized Initials _______
8.11 Corporate Authority. The persons executing this Agreement on behalf of the
parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized
to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement,
such party is formally bound to the provisions of this Agreement, and (iv) the entering into this
Agreement does not violate any provision of any other Agreement to which said party is bound.
This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns
of the parties.
[Signatures on the following page.]
CITY OF AZUSA [INSERT NAME OF CONSULTANT]
By: By:
City Manager [Up to $10,000]
OR Mayor [OVER $10,000]
Name:
Attest:
Title:
City Clerk
[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary,
AND CORPORATE SEAL OF
CONTRACTOR REQUIRED]
Approved as to Form:
Best Best & Krieger LLP By:
Name:
City Attorney
Title:
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On __________, 2022 before me, ________________, personally appeared ________________, proved
to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER____________________________
___
__________________________________
____
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_________________________________________
____
_________________________________________
____
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed
the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On __________, 2022 before me, ________________, personally appeared ________________, proved
to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent reattachment of this form
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER____________________________
___
__________________________________
____
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_________________________________________
____
_________________________________________
____
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed
the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
EXHIBIT “A”
SCOPE OF SERVICES
SCOPE OF SERVICES AND TOW OPERATOR REQUIREMENTS
Operator will be responsible for all Azusa Police Department (AZPD) calls for tow services. Typical
towing situations will include, but not limited to, removing illegally parked vehicles, towing
inoperative vehicles as a result of a traffic collision, mechanical breakdowns, storing, or
impounding vehicles for investigations, evidence or due to a violation of law. Additionally, those
requests made to AZPD by a private citizen for undesignated towing services will be referred to
the appropriate tow provider. Operator recognizes there will be no charge for the towing of City
vehicles either to the AZPD, City Yard, or to a suitable local place of repair.
Operator must also respond to towing requests from other City employees who are duly
authorized by law to remove vehicles for storage, investigation, or both.
1. GRANT OF REFERRAL
AZPD will refer all tow services to the Operator, on the condition that the Operator is available to
perform the services set forth in its agreement within the City. The agreement applies to calls
originating from or generated by or through AZPD (collectively referred to as “calls” or “response
calls”). If the Operator is not available at the time of the request or is unable to respond within the
required time, the handling officer or field supervisor may request another towing service.
City will establish a weekly rotation of companies providing tow services. Each company
participating will receive allocations of like periods in sequence in accordance with a schedule
developed by the City.
2. FRANCHISE FEE
Operator shall pay to the City a one-time administrative franchise fee of ($1,500) to reimburse the
City for costs associated with development of this Franchise Agreement upon execution of this
Agreement.
Operator(s) agrees to pay the City a “Franchise Fee” in an amount equal to thirty percent (30%)
of Operator’s Gross Revenues attributable to the towing, storage and impound Operator’s
Services provided in conjunction with this Agreement for those vehicles towed, stored, or
impounded when a storage form (CHP 180) has been completed and a AZPD case number has
been assigned. For purpose of this Agreement, the term “Gross Revenues” means all cash,
credits, revenues, property of any kind or nature or other consideration as determined according
to generally accepted accounting principles consistently applied, derived directly or indirectly by
Operator, it’s affiliates, subsidiaries, parents, and any other person or entity in which Operator
has a financial interest or which has a financial interest in Operator’s tow business, arising from
or attributable to the towing and storage Operator Services provided.
Payment of the Franchise Fee must be submitted to the city quarterly, on the first day of July,
October, January and April. Failure to remit fees is grounds for suspension and/or revocation of
any award of Contract by the City of Azusa in its sole determination.
City shall also retain the right to impose alternative forms of taxes and/or fees in the event that
the tow license fees are no longer assessable due to a subsequent change in federal, state or
local law.
3. LOCATION OF BUSINESS OFFICES AND MAIN STORAGE LOTS
Operator’s office must operate and maintain a storage lot and business on the same site
within one mile of the city limits of City to allow for convenient access by AZPD
personnel and the public. This lot will be referred to as the “primary storage lot.”
Operator may operate a “secondary storage lot” outside of City which will be used for over -fill or
back up purposes if the primary storage lot is full. This secondary storage lot must be within five
miles of the city limits of City.
4. TOW TRUCK CLASSIFICATIONS
A. Operator shall equip and maintain tow trucks covered under the agreement in accordance
with the provisions set forth in the California Vehicle Code and consistent with industry
standards and practices.
B. Operator shall provide three (3) classes of tow trucks, or may substitute a tow truck in a
larger weight category for the absence of a tow truck in a lower weight category:
Class A – Light Duty
Operator shall maintain a minimum of one tow truck with a manufacturer’s Gross Vehicle
Weight Rating of 14,000 to 19,500 pounds with wheel lift capabilities. In addition, the
Operator may have a car carrier. Class A equipment specifications are those established
by the California Highway Patrol, as amended from time to time, and are available through
the Traffic Office at the AZPD.
Class B – Medium Duty
Operator shall maintain at least one tow truck with a manufacturer’s Gross Vehicle Weight
rating of 26,000 to 33,000 pounds. The truck shall be capable of providing air to the towed
vehicle. Class B equipment specifications are those established by the California Highway
Patrol, as amended from time to time, and are available at the Traffic Office of the AZPD.
Operator may have a carrier, but the carrier must be an additional unit.
Class C – Heavy Duty
Operator shall maintain or have access to at least one tow truck with a manufacturer’s
Gross Vehicle Weight rating of at least 48,000 pounds. The truck shall be equipped with
air brakes and must be capable of providing air to the towed vehicle. Class C equipment
specifications are those established by the California Highway Patrol, as amended from
time to time, and are available at the Traffic Office of the AZPD.
Class D – Super Heavy Duty Recovery Vehicle
Operator shall maintain or have access to at least one tow truck with a manufacturer's
Gross Vehicle Weight rating of at least 54,000 pounds. The truck shall be equipped with
air brakes, a rotator, and must be capable of providing and maintaining continuous air to
the towed vehicle. If this class of tow truck is used exclusively for salvage and recovery
operations, there is no requirement for providing and maintaining continuous air to the
towed vehicle. Class D equipment specifications are those established by the California
Highway Patrol, as amended from time to time, and are available at the Traffic Office of
the AZPD.
C. Operator shall provide sufficient tow trucks in each of the foregoing classes of sufficient
higher weight class tow truck substitutions to ensure that the Operator responds to each
call for service within the 15-minute maximum response time. It is understood that the
response time for heavy-duty tow vehicles may reasonably exceed the maximum
response time.
5. TOW DRIVERS
A. Operator shall ensure that only qualified and competent tow drivers respond to calls for
service initiated by the AZPD. Tow truck drivers shall be at least 18 years old and possess
the following minimum class driver’s license and qualifications:
• Class A Tow Truck – A valid class C license, or valid class A (1) license with
a valid medical certificate.
• Class B Tow Truck - A valid class A (1) license with a valid medical
certificate.
• Class C/D Tow Truck – CTTA (California Tow Truck Association) certified
within last five years, and a valid class A (1) license with a valid medical
certificate.
B. The Class (A) 1 license shall be endorsed to allow the operation of special vehicle
configurations and/or special cargos.
C. Operator shall maintain a current list of drivers and provide AZPD a list of drivers
performing services for the City.
D. Operator shall enroll/participate in the Department of Motor Vehicle’s Pull Notice Program.
Current and new employees shall submit their California driver’s license numbers to the
Operator for input into Department of Motor Vehicle’s Pull Notice Program.
E. Operator is required to enroll in a Drug Testing program for all drivers working in the City
and the results shall be forwarded to the Traffic Supervisor.
F. Operator is required to pay the DOJ Live Scan fees for all drivers towing in the City (Live
Scan).
G. Operator shall procure and maintain in full force and effect a City Business License during
the term or any extended term.
H. Criminal History checks (All Felony/Fraud and DUI Convictions) on drivers working within
the City.
6. RATES
A. Operator shall not charge any fees in excess of the fees approved by the City Council.
B. The total time for towing shall be computed from the time of call to the end of service. All
time shall be charged at the hourly rate. Operator may charge a minimum of 60 minutes
per call. All time spent on a call in excess of 60 minutes shall be charged in 15-minute
increments. There shall be no additional charges (mileage, labor, etc.). Any secondary
towing requested by a customer is subject to negotiation between the Operator and the
customer. Operator shall inform the customer of all differences in the hourly rate for the
secondary towing service and provide an estimate of the final cost.
C. Charges for service calls at the request of the AZPD (out of gas, lockouts, etc.) shall be
computed from the time of call to the end of service. Service calls are charged at the hourly
rate within a minimum of 30 minutes per call. Charges in excess of 30 minutes shall be
charged in increments of 15 minutes.
D. Fees for special operations:
For special operations involving Class B or C tow trucks, Operator shall only charge City-
approved fees for “vehicle recovery operations” and “load salvage operations”. Charges
in excess of 30 minutes shall be billed in 15-minute increments. Hourly rates for auxiliary
equipment including: (1) Auxiliary equipment (airbags, dolly, additional trailer, etc.); (2)
Contracted equipment (airbags, dolly, additional trailer, forklifts, scoop loaders, etc.); and
(3) Contract labor will be as approved by the City Council.
Regardless of the class of tow truck, charges shall not be more than the class of vehicle
towed or serviced, except when vehicle recovery operations require a larger class of truck.
E. Storage Fees
1. Operator shall only charge the storage fees approved by the City.
2. Operator shall display in plain view at all cashiers stations a sign as described
in California Civil Code section 3070 disclosing all storage fees and charges
in force, including the maximum storage rate.
F. Owners of vehicles stored 24 hours or less shall be charged no more than one day of
storage. Each day thereafter shall be calculated by calendar days.
G. The schedule of rates charged by Operator shall be available in the tow truck and shall be
presented upon demand to the person(s) for whom the tow services were provided, or
their agent, or the police officer at the scene.
H. Operator shall submit a monthly report outlining the number of tows, the date and time of
tow, the location of tow, and the release date and time of all towed vehicle.
I. TOW Company shall be authorized to, and responsible for, collecting applicable towing
and impound charges prior to releasing a vehicle
7. RESPONSE TO CALLS
A. Operator shall respond to calls generated by or through the AZPD, 24 hours a day, seven
days a week, within the maximum response time of 15 minutes. At the time of notification,
Operator will advise dispatch when Operator(s) are unable to respond or meet the
maximum response time.
B. When an Operator vehicle that was not called to a scene comes upon a collision scene
where a vehicle or vehicles are blocking a roadway, an officer may request that vehicle’s
assistance in clearing the roadway. In such cases, the Operator may be requested, as
directed by the officer, to move the vehicle to a safe location and leave it. There shall be
no charge for this assistance. The Operator will clean the collision scene by sweeping up
glass and other debris.
C. All questions and disputes regarding the validity of the towing service rendered generating
from a AZPD call for service shall be referred to the Traffic Supervisor or his/her designee
during business hours, Monday through Thursday, excluding holidays.
8. PAYMENT FOR TOWING SERVICES RENDERED
A. Owners of vehicles towed by order or request of the AZPD are responsible for all services,
whether regular or special, associated with the towing service. Operator shall provide
itemized bills, distinctively showing charges for all classifications of services, including the
charges for late payment.
Neither City nor AZPD will be responsible or liable for any costs of towing services in the
event that the vehicle owner refuses or is unable to pay for the services.
9. BUSINESS HOURS
Operator shall have normal business hours from 0800 to 1700 hrs, five days a week
(Monday through Friday) and 0800 to 1200 hours on Saturday, excluding legal holidays.
Police availability: Operator shall make their services available on a 24-hour, 7 day a
week basis, including holidays.
Public availability: Operator shall have an employee available in person during normal
business hours at the OPTS office to handle requests for service and release of
impounded/stored vehicles. Normal business hours will be from 0800 to 1700 hrs, five
days a week (Monday through Friday) and 0800 to 1200 hours on Saturday, excluding
legal holidays.
10. STORAGE FACILITY
Storage lots must be in compliance with all City, State, and Federal regulations relating to
the operation and maintenance of tow service business. Vehicles stored or impounded by
order of the AZPD must be stored at one of these lots unless prior approval is granted by
the on-duty Watch Commander. Provisions must be made for adequate security of
vehicles and property stored and under the control of Operator. Minimum standards for
these lots include:
1. All vehicles shall be stored in a building or in an area that is enclosed by a
substantial wall or fence which meets the requirements of the jurisdiction in
which the facility is located, and approved by AZPD.
2. Required storage facilities must comply with the Municipal Codes for the city
that the business is located, and/or meet approved county codes if applicable.
3. Due to the involvement in the commission of crimes, preservation of evidence,
or for other reasons the Operator shall maintain an enclosed locked storage
facility where the storage spaces shall be protected from the elements of
weather, tampering, and other forms of contamination.
4. Operator shall release personal property from the vehicle to the vehicle’s
owner or their agent upon demand and authorization by the AZPD pursuant
to California Vehicle Code § 22851(b). Items that are not affixed to the vehicle
are considered personal property.
5. An impounded or stored vehicle shall be released only upon prior written
authorization from the AZPD.
6. A vehicle that is not impounded shall be released upon request of the
registered owner or person in control of the vehicle, pursuant to California
Vehicle Code § 22850.3.
11. BUSINESS RECORDS
A. Operator shall maintain all tow records of services, including a description of vehicles
towed, time, location of calls and total itemized costs of towing and storage. AZPD may
inspect, without notice, Operator’s records during business hours.
B. Lien sale records of vehicles towed or stored under the tow service agreement shall be
available to AZPD for review during business hours.
C. Records shall be maintained and available for inspection for a period of four years from
the date of service provided.
D. All records required to be kept by the Operator shall be available for inspection by
representatives of the Azusa Police Department and the California Highway Patrol during
normal business hours or within a reasonable time period requested by either agency for
after hour inspection.
12. COMPLIANCE WITH LAW
A. Operator shall at all times comply with Federal, State, and local laws and ordinances.
B. In the event of a traffic infraction or misdemeanor traffic violation by a tow truck driver,
AZPD reserves the right to request that such driver be removed from providing services
to City, and Operator shall immediately comply with such request.
C. Operator and/or its employees and/or drivers shall not have convictions of specific sexual
crimes (those outlined in Section 2432.3(b)(2) of the California Vehicle Code), violent
crimes, or drug, alcohol, theft, fraud, embezzlement, or similar crimes which directly relate
to his/her/its fitness to provide services. Any conviction may be cause for termination of
the tow service agreement. Alternatively, AZPD may request that any employee or driver
convicted of any such crime be removed from providing services to City, and Operator
shall immediately comply with such request.
D. Any misdemeanor conviction of an owner or principal of Operator and/or any employee or
driver of Operator involving stolen or embezzled vehicles or fraud related to the towing
business may be cause for termination of the tow service agreement. Alternatively, AZPD
may request that any employee or driver convicted of any such crime be removed from
providing services to City, and Operator shall immediately comply with such request.
E. If Operator or any employee or driver is arrested or charged for a violation involving any
of the crimes set forth in subsections (C) or (D), above, City may suspend this Agreement
with Operator until the case is adjudicated. Alternatively, City may direct that the arrestee
or person charged be removed from providing services to City until the case is adjudicated,
and Operator shall immediately comply with such direction.
13. EQUIPMENT SPCIFICATIONS
Tow truck equipment specifications shall be those established by the California Highway
Patrol, as amended, and are hereby incorporated by reference as if set forth herein.
14. OTHER SERVICES
A. The Operator will provide additional services by way of supporting legitimate law
enforcement purposes and events. Examples include, but are not limited to, driver license
and sobriety checkpoints, crime scene support, and community events. The Operator will
provide lighting, cones, and other traffic control devices during checkpoints as required by
the City.
15. ON-SCENE DUTIES
Upon arriving on scene to remove any of the vehicles, Tow Company’s personnel shall report to
the Peace Officer in charge and discharge their duties in accordance with the following conditions:
A. Operator shall make every reasonable effort to comply with direction
provided by the officer(s)-in-charge.
B. Operator l shall always wear their reflective safety vest. An Operator arriving at the scene
providing service or towing a vehicle must display an oscillating, flashing or rotating amber
light. No other color may be used. The emergency light must be discernible from the front
and back of the truck for at least 500 feet.
C. Operators shall be responsible for verifying the peace officer’s damage assessment for
each vehicle towed as a police impound, and shall sign the CHP 180 form.
D. Operators shall be responsible for removing and appropriately disposing of collision related
debris from the public right-of-way at the time of the tow to ensure public safety.
Additionally, if manual street sweeping is needed, Operator is to provide this service.
E. Operators may make any emergency alterations reasonably required to safely move and/or
tow vehicles.
F. Operators shall carry and provide Customer Satisfaction/Complaint Forms to customers
upon request.
G. Operators shall not photograph or otherwise electronically record any accident or crime
scene without the expressed permission of the CITY.
H. After removing a vehicle from the public right-of-way or private property, Operators shall
securely transport that vehicle.
16. REPORTING REQUIREMENTS
A. TOW COMPANY shall keep and maintain records of each vehicle towed at the request of
the CITY for the duration of the contract period. These records shall be recorded on a
monthly rotation report (“Monthly Report”) in a form and manner approved by the CITY.
B. CITY shall have the right to inspect and audit, without prior notification, TOW COMPANY
records at reasonable times during normal working hours to determine compliance with
these record-keeping requirements.
C. Tow COMPANY shall submit a quarterly financial report to the CITY on July 1st, October
1st, January 1st, and April 1st of each quarter through the term of the Agreement (“Quarterly
Report”).
17. AUDIT AND INSPECTION OF RECORDS
TOW COMPANY shall, during normal business hours, make all records, equipment, and
storage facilities available for periodic, unscheduled inspection by the CITY. Record’s shall
include TOW COMPANY’S financial statements.
18. NEGLIGENT VEHICLE IMPOUND PROGRAM (NVIP) FEES
The CITY will be responsible for collection of NVIP fees.
19. IMPOUNDED VEHICLES
A. TOW COMPANY shall not release any vehicle impounded as the result of a Police
Initiated Tow unless the claimant presents a valid, CITY-issued Vehicle Release Form,
current registration, proof of insurance and an Impound Vehicle Payment Receipt. The
CITY will determine which impounded vehicles require such releases. TOW COMPANY is
responsible and liable for the release of any vehicle without a Vehicle Release Form. All
vehicle lien sales must fully comply with California Civil Code Section 3072, and this
agreement. In addition to any other provision of state or local law, TOW COMPANY
agrees to comply with the following the lien sale of any vehicle:
• Remove and destroy the vehicles’ license plate by cutting them in two pieces
• Within (5) days of the sale submit a completed “Notice of Release of Liability” form to the
Department of Motor Vehicles.
• Within ten (10) days of the sale, submit the two pieces of the destroyed plates to the CITY
along with the “NOTICE of Release of Liability” form for each destroyed plate.
B. TOW COMPANY shall not make any repairs or alterations of vehicles in their possession
without the express written authorization of the vehicle’s registered owner, the registered
owner’s insurance carrier or a verifiable agent of the owner or insurance carrier unless
necessary to tow the vehicle
C. TOW COMPANY shall be responsible for any damage occurring to the vehicle while in its
sole possession and, therefore damage not recorded on the CHP 180 damage assessment
will be considered TOW COMPANY’S responsibility. TOW COMPANY shall indemnify
CITY for any and all claims or lawsuits pertaining to damage which occurs to the vehicle
after TOW COMPANY has arrived at the scene, or which during Referral Tows.
D. TOW COMPANY shall be responsible for all property belonging to the vehicle as identified
by the content inventory and the CHP 180 form. Loss of property which occurs after TOW
COMPANY has arrived at the scene, or which occurs during Referral Tows will be the sole
and undisputed responsibility of TOW COMPANY
20. DISCIPLINARY ACTION
The CITY’S Chief of Police or his/her designee may take disciplinary action against a TOW
COMPANY for violations of this Agreement. That disciplinary action may result in the
termination of this Agreement.
Any disciplinary action may be appealed to CITY’S Chief of Police or his/her designee within ten
(10) business days of written notification of disciplinary action. If requested, CITY shall schedule
a hearing as soon as practical. When an appeal is filed, CITY shall make a determination
whether to stay any disciplinary action based on the issues, facts, and severity of the underlying
violation. The hearing shall be conducted by the Chief of Police or his/her designee and the
TOW COMPANY shall be entitled to present testimony and all relevant facts. Except for rules of
privilege or other constitutional rights, the California rules of evidence may be used when
considering introduction of any evidence. The decision of CITY’s Chief of Police may be
appealed to the CITY’s City Manager within ten (10) business days after written notification of
the decision of CITY’s Chief of Police. The City Manager or his designee may schedule a
second hearing or may review the administrative record before reaching a decision. The
decision of CITY’s City Manager is final, and there is no further administrative remedy available.
Failure to file a written appeal within ten days of notification, shall constitute a waiver of all
appeal rights and the decision is final.
21. CITY DEPARTMENT ERRORS AND OMISSIONS
When any vehicle has been ordered towed by CITY and it is established that the tow was in
error through a mistake of fact, TOW COMPANY shall release the vehicle to its registered
owner or another legitimate claimant at no cost. If an error by CITY results in a vehicle being
stored longer than it can reasonably be determined that it should have been, TOW COMPANY
shall release the vehicle to the claimant, and bill the claimant only those storage charges that
would have accrued if no error had occurred. In the case of erroneous towing, TOW COMPANY
shall charge CITY 50% of the Basic Tow rate. In the case of erroneous extended storage, TOW
COMPANY shall charge CITY $2.00 per day for storage charges beyond the claimant’s
responsibility. However, if CITY can reasonably establish that the circumstances resulting in the
error were beyond the control of CITY, neither CITY nor the claimant shall be liable for such
charges
EXHIBIT “B”
SPECIAL REQUIREMENTS
(Superseding Contract Boilerplate)
I. [When applicable] The title of Article 5 shall read as follows:
“INSURANCE, INDEMNIFICATION, AND BONDS”
II. [When applicable] Section 5.1(d) shall be amended to read as follows:
“Professional Liability and Garage Liability. Professional and garage
liability insurance appropriate to the provision of services. This coverage
may be written on a “claims made” basis, and must include coverage for
contractual liability. The professional and garage liability insurance
required by this Agreement must be endorsed to be applicable to claims
based upon, arising out of or related to services performed under this
Agreement. The insurance must be maintained for at least 5 consecutive
years following the completion of Contractor’s services or the termination
of this Agreement. During this additional 5-year period, Operator shall
annually and upon request of City submit written evidence of this
continuous coverage.”
EXHIBIT “C”
SCHEDULE OF COMPENSATION
EXHIBIT “D”
SCHEDULE OF PERFORMANCE
45635.01000\41174271.1
NON-EXCLUSIVE FRANCHISE AGREEMENT
BETWEEN THE CITY OF AZUSA AND
TITAN TRANSPORTATION, INC. FOR TOWING AND STORAGE SERVICES
This Non-Exclusive Franchise Agreement (“Agreement”), is entered into on April ___, 2023
(“Effective Date”) by and between the CITY OF AZUSA, a California Municipal Corporation,
hereinafter referred to as “City,” and ROYAL COACHES AUTO BODY & TOWING, a
California corporation, hereinafter referred to as “Franchisee” and collectively referred to herein
as the “Parties”.
RECITALS
A.Pursuant to California Vehicle Code section 22660, City has the authority to grant
a franchise to a tow truck operator for towing and storage services required for the abatement and
removal as public nuisances, of abandoned, wrecked, dismantled, or inoperative vehicles or parts
thereof from private or public property within the boundaries of City.
B.California Vehicle Code section 12110(b) allows City to require a fee in connection
with the award of a franchise for towing vehicles on its behalf provided that the fee does not exceed
the amount necessary to reimburse the City for its actual and reasonable costs incurred in
connection with the towing program.
C.Pursuant to the authority granted in California law, City has enacted an ordinance,
currently codified in Azusa Municipal Code section 74-561 et seq., permitting City to grant a non-
exclusive franchise to a tow truck operator to provide the Towing Services within the boundaries
of City..
D.For the purpose of insuring the continued protection and preservation of the public
health, welfare and convenience of the City, City desires to grant Franchisee a nonexclusive
franchise agreement for towing services as defined herein within the City.
E.Franchisee desires to provide such towing services upon the terms and conditions
set forth herein.
NOW, THEREFORE, in consideration of the promises and of the covenants and
conditions hereinafter contained, City and Franchisee mutually agree as follows:
1.INCORPORATION OF RECITALS.
The Recitals set forth above constitute a material part hereof, and are hereby incorporated by
reference herein as though fully set forth herein.
2.GRANT OF FRANCHISE.
City hereby grants a Franchise to Franchisee to provide Towing Services, as defined in Section 3.
Franchisee shall have throughout the term of this Agreement the nonexclusive right to engage in
the business of providing Towing Services requested by City within the boundaries of City as the
same now exist, and within any territory City hereafter annexes, except to the extent that towing
services within such territory annexed would be unlawful or violate the legal rights of another
person.
Attachment 2
45635.01000\41174271.1
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3. SCOPE OF TOWING SERVICES.
During the term of this Agreement, Franchisee shall provide the Towing Services (“Towing
Services”) to City as described in the “Request for Proposals” issued by City (with a February 6,
2023 due date), including but not limited to the following Towing Services:
A. Removing illegally parked vehicles;
B. Towing inoperative vehicles as a result of traffic accident;
C. Towing vehicles as a result of mechanical breakdowns;
D. Storing or impounding vehicles for investigations, evidence, or violation of the law
or for any other lawful purpose;
E. Remove vehicle debris from accident scene;
F. Cover oil and vehicle fluids with sand at accident scenes.
G. Change vehicle tires;
H. Maintaining tow records of stored and impounded vehicles;
I. Provide secured storage lot for stored and impounded vehicles;
J. Provide service to start drained car battery or other vehicle malfunctions;
K. Unlock vehicles.
4. EFFECTIVE DATE OF AGREEMENT.
The term of this Agreement shall commence on April _____, 2023 (“Effective Date”). The initial
term of this Agreement will be for five (5) years from the Effective Date. The Agreement may be
renewed for three (3) additional one-year terms at the sole discretion of City, unless previously
terminated by either of the Parties.
5. NONEXCLUSIVE FRANCHISE.
Franchisee shall have the nonexclusive right to receive calls from the City subject to the terms and
conditions of this Agreement, to provide Towing Services for vehicles which are involved in
accidents, disabled, abandoned, impounded for evidence, impeding the flow of traffic or otherwise
subject to being non-consensually towed and stored at the direction of the City. If the enters into
more than one nonexclusive franchise agreement with a franchisee, Franchisee understands that
Towing Services shall be provided by franchisees on a rotating basis as determined by the Chief
of Police or his/her designee.
6. BASIS FOR ACCEPTANCE.
The Chief of Police, or his/her designee, has the final authority to determine disputes as to the
ability or authority of Franchisee to perform Tow Services for the City. If it is determined that
Towing Services are not needed and are canceled by City, acting by and through the Azusa Police
Department, up to, and including arrival at the scene, there shall be no charges assessed to City by
Franchisee for the request.
If Franchisee is unable to handle any call for the Franchisee Services due to size, location, etc.,
Franchisee will be responsible for requesting another tow service from another City recognized
tow franchisee to respond that is capable of handling the situation. Franchisee agrees that, should
45635.01000\41174271.1
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Franchisee be unable to handle calls for Franchisee Services by City on more than four occasions
within any twelve (12) month period during the term of this Agreement, City may assess
Franchisee a performance penalty pursuant to this Agreement in the sum of one hundred twenty
five dollars and no cents ($125.00) for each subsequent occasion beyond such four (4) occasions
that Franchisee is unable to handle any call for Franchisee Services by City within the 12-month
period. The performance penalty is in addition to any other remedies available pursuant to the
terms of this Agreement or law.
7. PERFORMANCE REPRESENTATIONS.
Franchisee represents that it has towing and storage facilities necessary to meet the requirements
of this Agreement to perform the Franchisee Services. Franchisee further agrees to furnish proof
of possession of the towing equipment and storage yard facilities necessary to perform the
obligations set forth in this Agreement, including title to or a lease on the land necessary to perform
the obligations set forth in this Agreement, and meet the zoning and building requirements of City.
Franchisee shall also possess a valid City Business License. Franchisee further agrees to comply
with all applicable rules and regulations set forth in the City of Azusa Municipal Code, as it may
be amended from time to time.
8. COMPLIANCE WITH LAWS.
Franchisee must at all times throughout the term of this Agreement, comply with the terms of this
Agreement, all state and federal laws, and all current and subsequently enacted towing ordinances,
rules or regulations enacted by City that are applicable to Franchisee.
9. BUSINESS LICENSE.
Franchisee shall possess a valid City Business License prior to providing Towing Services under
this Agreement.
10. RESPONSE TIME.
Franchisee agrees to arrive on scene within fifteen (15) minutes of a verbal request for service by
a member of the Azusa Police Department, or other authorized City personnel, 24 hours/day, 7
days/week, 365 days/year, including holidays and weekends. Franchisee's dispatcher shall notify
the Azusa Police Department Dispatch when it cannot immediately respond with a tow vehicle
capable of performing the Franchisee Services ("Tow Vehicle"), shall give the reason for the delay
in response, and an estimated time of arrival. Franchisee agrees that, should Franchisee fail to
arrive on scene within 15 minutes from a call for service by City on more than eight (8) occasions
within any twelve (12) month period, City may assess Franchisee a performance penalty pursuant
to this Agreement in the sum of one hundred twenty five dollars and no cents ($125.00) for each
subsequent occasion over eight within any twelve month period that Franchisee is unable to timely
respond to a call for Franchisee Services by City within the 12-month period. The performance
penalty is in addition to any other remedies available pursuant to the terms of this Agreement or
law.
11. STAFFING.
Franchisee shall maintain at least two (2) qualified tow truck drivers to respond to requests for
service by the Azusa Police Department or other authorized personnel at all times.
45635.01000\41174271.1
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12. PERSONNEL TRAINING - QUALIFICATIONS.
Franchisee’s tow truck drivers must be sufficiently trained to ensure the safe and proper discharge
of the responsibilities set forth in this Agreement. To ensure the proper qualifications of
Franchisee’s tow truck drivers, Franchisee agrees to the following terms:
A. Driver Information. Franchisee shall provide the name, date of birth, current photo
and valid California driver’s license number of all drivers employed by Franchisee
in writing to the Azusa Police Department Administrative Division Captain.
Franchisee shall notify the Azusa Police Department Administrative Division
Captain, or his/her designee, in writing of any new drivers or any change in
employment status of a current driver within five (5) days of their date of hire or
change in employment status.
B. Pull Notice Program. Franchisee shall participate in the Employer Pull Notice
Program through the Department of Motor Vehicles. Franchisee shall notify the
Azusa Police Department Administrative Division Captain, or his/her designee of
any Pull Notices received for any of Franchisee’s current drivers.
C. Tow Truck Driver Qualifications/Requirements:
(1) Tow truck drivers employed by Franchisee shall be at least 18 years old,
possess the required class driver’s license to operate a tow vehicle.
Franchisee must have drivers available to operate any and all tow vehicles
specified in this Agreement. All drivers must be sufficiently capable and
trained to ensure safe and proper discharge of their Towing Services in a
safe and courteous manner.
(2) All tow truck drivers shall comply with the requirements set forth in
California Vehicle Code Sections’ 27700 and 24605. All tow truck drivers
shall meet all requirements specified in Sections 2430.5 and 12520 of the
California Vehicle Code.
(3) During the term of this Agreement, Franchisee and/or tow truck drivers
shall provide the Azusa Police Department Administrative Division
Captain, or his/her designee, with information in writing concerning any
driving citations received by the tow truck driver(s) in the immediate prior
three (3) years and all information regarding any criminal convictions.
(4) Franchisee’s tow truck drivers shall present a neat, clean and professional
appearance. Tow truck drivers shall wear uniform type pants (or shorts
during warm weather) and shirts that identify the tow service company and
their name (first or last).
(5) The Chief of Police, or his/her designee, in his or her sole discretion, may
require that Franchisee’s tow truck drivers:
(a) Be fingerprinted;
(b) Undergo background checks by the California Department of Motor
Vehicles and any other agency deemed appropriate to determine the
safety practices of the tow truck drivers;
45635.01000\41174271.1
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(6) Franchisee shall not utilize a tow truck driver to render services pursuant to
this Agreement if any of the following conditions exist:
(a) A tow truck driver who is subject to epilepsy, fainting or loss of
consciousness by reason of chronic medical condition;
(b) A tow truck driver whose driving record indicates five (5) violations
of traffic laws involving moving vehicles within two (2) years
preceding the date of the effective date of this Agreement;
(c) A tow truck driver who has furnished false information in any
document submitted to City in connection with this Agreement or
who has omitted to furnish all information requested by City in
connection with this Agreement;
(d) A tow truck driver who has been convicted of driving while under
the influence of intoxicating liquor or narcotic drugs, or both, within
three (3) years of the effective date of this Agreement; or
(e) A tow truck driver who has been convicted of a felony, any crime
involving moral turpitude, or any crime(s) specified in this
Agreement within two (2) years preceding the effective date of this
Agreement.
(7) Notwithstanding compliance with the foregoing provisions, the City may
prohibit certain tow truck drivers from providing Towing Services to the
City or the Azusa Police Department in its sole discretion. Such directives
shall be made by the Chief of Police, or his/her designee, in writing to
Franchisee.
(8) All Franchisee operators or their agents shall give to the driver or owner of
a vehicle to be stored, impounded or towed away, a business card, and/or a
receipt with the service name, address and phone number, and must ensure
that the information is provided to the Azusa Police Department in the
event that the driver is unavailable or incapacitated
13. COMMUNICATIONS.
Franchisee shall install and maintain radio transmission and reception equipment allowing for two-
way communication with each authorized tow vehicle.
14. BUSINESS HOURS - AVAILABILITY BY TELEPHONE.
Police Availability: Franchisee agrees to make their Franchisee Services available 24 hours/day,
five (5) days a week, including holidays. No exceptions.
Public Availability: There shall be a Franchisee employee or agent available in person during
normal business hours at Franchisee's office to handle requests for service and release of
impounded/stored vehicles. Normal business hours shall be from at least 8:00 a.m. to 5:00 p.m.
daily, seven (7) days a week and 8:00 a.m. to 12:00 p.m. on Saturday, excluding legal holidays.
Franchisee shall have an attendant on duty during all of the above business hours.
45635.01000\41174271.1
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15. IMPOUNDED VEHICLES.
A vehicle impounded pursuant to the authority granted by local, state or federal law will be
documented by Azusa Police Department personnel. Franchisee shall obtain authorization from
the Azusa Police Department before any vehicle ordered towed, stored or impounded by the Azusa
Police Department can be released by Franchisee.
16. RELEASE OF VEHICLE AFTER STORAGE / IMPOUND.
Any vehicle stored or impounded by the Azusa Police Department, CANNOT be released without
authorization from the Azusa Police Department. When Franchisee releases a stored vehicle,
Franchisee shall require proper identification and an Azusa Police Department authorized release
form (CHP 180). If the person requesting the release of a vehicle does not have all the above, refer
the person to the Azusa Police Department for further processing. The final decision for release of
a vehicle shall come from the on-duty Watch Commander, or his/her designee. Franchisee shall
adhere to this decision at all times.
Franchisee further agrees that it will release any stored or impounded vehicle to the person
presenting proper identification and an Azusa Police Department authorized release form (CHP
180) within, at a minimum, forty-five (45) minutes of presentation by a person of this
documentation or upon receiving written instructions to release a vehicle by the Azusa Police
Department Watch Commander, or his/her designee. Franchisee further agrees that all storage or
impound fees cease to accrue immediately upon presentation of such documentation, regardless of
the ultimate time of release of the stored or impounded vehicle.
Franchisee further agrees that it will pay a penalty to the Azusa Police Department for each
violation of the terms of this section governing the release of vehicles in an amount equal to three
days of storage fees, calculated using Franchisee's then-existing daily storage fee at the time of
each such violation. The penalty is in addition to any other remedies available pursuant to the terms
of this Agreement or law.
17. RELEASE OF PERSONAL PROPERTY.
Franchisee shall notify the Azusa Police Department prior to the removal of property from a stored
vehicle and will provide a receipt to the Azusa Police Department listing the removed property
and the identification of the person(s) who removed items, with a copy placed in the stored vehicle.
No property shall be removed from the stored vehicle without prior authorization from the Azusa
Police Department. Personal property is considered to be items that are not affixed to the vehicle
and must not be removed without prior authorization from the Azusa Police Department.
18. FRANCHISEE VEHICLE STORAGE YARD FACILITY STANDARDS.
Franchisee must at all times throughout the term of this Agreement, comply with the terms
of this Agreement, all state and federal laws, and all current and subsequently enacted
towing ordinances, rules or regulations enacted by the City of Azusa that are applicable to
Franchisee, as may be amended from time to time. Franchisee shall, at a minimum, comply
with the following requirements with respect to its facilities:
A. Location of Storage Facility. Franchisee office and storage facility must be within
one mile of the City of Azusa. Stored vehicles should be at a single location. If a
secondary storage location is required, it must be within five miles of the City of
Azusa.
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B. Storage Facility Requirements. Adequate security measures for the protection of
vehicles and property shall be provided for at all storage facilities. The Azusa Police
Department Administrative Division Captain, or his/her designee, shall be the sole
judge of what constitutes "adequate" security measures and may grant additional
consideration for state of the art security measures, including, but not limited to,
security cameras and motion sensors. At a minimum, all storage facilities shall
comply with the following requirements:
(1) All storage facilities shall be enclosed by a wall or fence at least 6 feet in
height. Alternatively, storage facilities may consist of enclosed buildings.
All storage facility structures, including walls or fences, shall meet the
requirements of the City of Azusa, and shall be approved by the Azusa
Police Department Administrative Division Captain, or his/her designee.
(2) Storage lot that can hold a minimum of 85 vehicles.
(3) The security for the storage facility shall be adequate to preclude theft,
vandalism or damage by activity while in Franchisee's lot. The storage
facility and lot shall be configured in such a way that no vehicles shall be
left parked or stored on the public streets at any time. Franchisee must
provide off- street parking for its equipment and be able to accommodate at
least four additional vehicles for customer parking. In addition to the four
customer parking spaces, at least one additional customer parking space
shall be provided for handicapped parking purposes. Said handicapped
parking space shall be van accessible. Storage vehicles should be secured
away from customer parking and the office area. Franchisee's office must
have a sign posted including the company name, address, phone number
and hours of operation, clearly visible from the roadway.
(4) Security. All storage facilities must be approved for security by the Azusa
Police Department Administrative Division Captain, or his/her designee,
and available for inspection upon request. Any breach of security in a
building or fence must be repaired within 24 hours.
C. Compliance. All necessary vehicle storage facilities needed to meet the minimum
requirements of this section shall be the sole responsibility of Franchisee. All
necessary approvals for such storage facilities shall comply with the applicable
provisions of the Azusa Municipal Code, or appropriate county and/or city codes.
Compliance with this subsection shall not be deemed to create any duty for the City
to award a permit to Franchisee.
19. INDOOR STORAGE FACILITIES.
Franchisee shall maintain an enclosed locked storage facility for a minimum of five (5) vehicles.
Franchisee shall maintain an additional two (2) spaces that can be secured by the Azusa Police
Department for vehicles ordered impounded because of their involvement in the commission of
crimes or for other reasons determined by the Azusa Police Department (the "Designated Impound
Space"). The Azusa Police Department Administrative Division Captain, or his/her designee, shall
45635.01000\41174271.1
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be the sole judge of what constitutes "adequate" inside storage measures. The Designated Impound
Space should also meet the following criteria:
A. The Designated Impound Space shall be completely protected from the elements,
including wind, heat, adverse weather and other forms of contamination (i.e. dust).
B. The Designated Impound Space must be able to be secured and unauthorized entry
must be prevented. Protection shall also be provided to preclude evidence
contamination by employees and other individuals. Evidence contamination is
defined as removal or touching of any items, papers, vehicle parts, etc., of an
impounded vehicle that is impounded by the Azusa Police Department for
investigation purposes. At a minimum, there should be a door or gate that can be
locked and secured from employees and visitors.
C. The Azusa Police Department will designate when a vehicle is to be placed into the
Designated Impound Space for evidence purposes and may place a seal on each
door of the vehicle or door(s) of the impound facility to maintain the chain of
evidence. Vehicles placed into inside storage for evidence purposes shall not be
removed from such protection until approved by the Azusa Police Department.
D. The Designated Impound Space must be of sufficient size to satisfy the impound
storage requirements of the Azusa Police Department.
E. The Designated Impound Space must be lit with a minimum of two (2) 50 watt,
overhead, quartz halogen lamps, or similar lamps that provide equal or greater light.
F. The Designated Impound Space area must be accessible to Azusa Police
Department personnel twenty four (24) hours a day, seven (7) days a week.
G. The Designated Impound Space must be reasonably clean and clear of dirt, animal
waste, oil, etc.
H. The Designated Impound Space must be protected by an alarm system to prevent
unauthorized entry. The alarm system shall be monitored by an off-site monitoring
company. The alarm code for the alarm system shall be provided to the Azusa Police
Department personnel at all times and shall be changed by Franchisee only upon receiving
authorization from the Chief of Police or at his/her direction. Franchisee shall not provide
the alarm code to any person unless authorized to do so by the Chief of Police.
20. EQUIPMENT STANDARDS.
At its expense, Franchisee agrees that it must have the following equipment that conforms
to the California Highway Patrol's Classification (CHP Class) for the gross vehicle weight
ratings (GVWR) of a truck chassis. 1 Franchisee vehicles must also be in compliance with
the applicable provisions of the California Vehicle Code applying to tow trucks (615 CVC),
1 GVWR Range (lbs) CHP Class
10,000 - 19,500 A
19,501- 33,000 B
33,001 -49,999 C
50,000 or more D
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including but not limited to Sections 615, 21711, 24606, 25100, 27700, 27907, and all
other regulations pertaining to lighting and safety equipment.
A minimum of two (2) flatbed car carriers (Class A or Class B); plus
A minimum of three (3) light-medium duty tow trucks, consisting of:
At least two (2) light duty (Class A); plus
At least one (1) medium duty (Class B); plus
Preferably, at least one (1):
A minimum of three (3) light-medium duty tow trucks, consisting of:
At least two (2) light duty (Class A); plus
At least one (1) medium duty (Class B); plus
Preferably, at least one (1):
Heavy duty (Class C); or
Super heavy duty (Class D); plus
If Franchisee is unable to handle the call due to size, location, etc., Franchisee
agrees that it will be responsible for requesting another tow service from another
City recognized tow Franchisee to respond that can handle the situation.
Preferably, at least one (1) tow truck that is equipped to lift and carry a disabled person in
a wheel chair; plus
All trucks must have two-way radio communication equipment.
Franchisee further agrees that all Franchisee Tow Vehicles must have adequate equipment
for the towing of vehicles. Basic equipment shall include:
(1) Fire Extinguisher(s)
(2) Broom
(3) Shovel
(4) Reflective Triangles Flares
(5) Trash Can(s) with Absorbent Material Office to Truck Radio System
(6) Winch
Motorcycles that are stored, impounded, or towed from a collision scene at the request of
the Azusa Police Department pursuant to this Agreement shall be hauled by a trailer that is
designed to carry motorcycles or by a flatbed truck in an upright position.
Any and all equipment used and maintained by Franchisee must be made available for
inspection by the Azusa Police Department upon request.
All equipment and vehicles to be used under this Agreement shall be inspected by the
California Highway Patrol at least one time per year. All vehicles and equipment shall
display a current inspection sticker (or satisfactory proof thereof) issued by the California
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Highway Patrol prior to its use under this Agreement. The Azusa Police Department may
conduct random vehicle and equipment inspections to ensure compliance with this
Agreement.
The Azusa Police Department may inspect Franchisee facilities used under this Agreement
at any time during normal business hours. Franchisee must have equipment for and have
personnel proficient in unlocking locked vehicles when requested by the Azusa Police
Department.
Throughout the term of this Agreement, Franchisee shall maintain in good condition the
real property and improvements thereon, and all vehicles, facilities, equipment and material
used in the performance of the Franchisee Services required by this Agreement.
21. DUTIES AT THE SCENE.
Franchisee provider's primary duty will be: responding, on a first priority basis, to requests for
towing services initiated by the Azusa Police Department. Franchisee provider must have at least
two (2) tow trucks available at all times (24 hours/day, 7 days/week, 365 days/year, including
holidays and weekends) to respond to requests for service from the Azusa Police Department.
Franchisee provider must also respond to towing requests from other City employees who are duly
authorized by law to remove vehicles for storage, investigations, or both.
Typical towing situations will include, but will not be limited to, removing illegally parked
vehicles, towing inoperative vehicles as a result of traffic accidents, mechanical breakdowns,
storing, or impounding vehicles for investigations, evidence or a violation of law. Franchisee
provider must provide the towing and storage services contemplated herein 24 hours/day, 7
days/week, 365 days/year, including holidays and weekends
After being requested to respond to the scene by the Azusa Police Department or other authorized
City personnel, Franchisee operator shall:
A. Neither move the vehicle nor attach to any vehicle until instructed to do so by a
member of the Azusa Police Department.
B. Shall clean up and remove any and all debris from the accident scene as required
by the Azusa Police Department and the California Vehicle Code.
C. Provide towed vehicle owners, when present at the scene, with a business card or
other information, indicating the name of the Franchisee and address where the
vehicle will be stored, the telephone number and hours of operation.
22. RECORDS AND REPORTING.
Records shall be maintained by Franchisee relating to vehicles towed, stored or impounded at the
City's request:
Franchisee shall keep complete and accurate records of all vehicles towed, stored or impounded at
the request of the City and shall include the amount of fees charged by Franchisee for each such
vehicle. The report shall also list the number of vehicles towed, stored or impounded at the request
of the City that are sold through lien sale. Franchisee shall provide a written and electronic format
quarterly report to the Chief of Police, or his/her designee, on January 15th, April 15th, July 15th
and October 15th of each calendar year of this Agreement containing the above information. The
report shall be limited to vehicles ordered towed, stored or impounded by City.
45635.01000\41174271.1
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Franchisee and the City shall maintain records of the times that calls for service are received,
dispatched, and the times the Tow Vehicles arrive on scene. Franchisee's record system should be
adequate to provide an inquiring party with the ability to locate a vehicle by searching the
following information: license plate number, the make, model, color, date or location of towing or
impound. The record system maintained by Franchisee shall also be made available in an electronic
format as specified by City personnel that is searchable as listed in this section.
Franchisee owner must also notify the California Highway Patrol (CHP) as required by Section
10652 of the California Vehicle Code..
23. INSPECTION OF RECORDS, FACILITIES, EQUIPMENT AND DRIVERS.
All records required to be kept by Franchisee owner shall be available for inspection by
representatives of the Azusa Police Department and the California Highway Patrol. In addition,
Franchisee shall submit at any reasonable time to an Azusa Police Department inspection of all
drivers, vehicles, equipment and yards. Franchisee shall provide California Highway Patrol
inspection certification for each of its Towing Vehicles to the Azusa Police Department. If
Franchisee cannot produce an annual California Highway Patrol certification, the Azusa Police
Department reserves the right to require that all Tow Vehicles be inspected by an automotive
professional certified by the State of California Bureau of Automotive Repair, and selected by the
Azusa Police Department. All vehicle inspection fees shall be borne solely by Franchisee and shall
be due and payable upon presentation of the vehicle for inspection. Any Tow Vehicle that fails an
inspection shall not be used to provide towing service in the City until it is repaired and passes re-
inspection. All Tow Vehicles shall be operated and maintained in compliance with all applicable
state and federal laws and regulations.
24. TOWING RATES & STORAGE FEES.
The rate for towing shall be from the primary towing facility and return to the same. A one-
hour minimum may be charged. Charges in excess of one hour may be charged in fifteen-
minute increments. There shall be no additional charge for labor, mileage, etc. The tow
rates and storage fees for the City of Azusa Tow Truck Services cannot exceed the towing
and storage rates established each year by the California Highway Patrol (CHP) for the
sector applicable to Azusa. These rates may be reviewed annually on June 1st to match any
local CHP rate and fee changes. Franchisee must notify the Chief of Police or his/her
designee in writing of any tow rate and storage fee increase to match the CHP rates and
fees. The Azusa Police Department will verify any increases. Any disputes will be
reconciled through a meeting between the Chief of Police or his/her designee and
Franchisee owner. If the rate and fee increases are verified, the new rates will take effect
on July 1st• Franchisee agrees that Chief of Police's, or his/her designee’s, determination
concerning tow rates and storage fees shall be final.
Storage Fees. Vehicles stored eight hours or less shall be charged no more than one-day's
storage fees. Each day thereafter shall be calculated by the calendar day.
Signs. Franchisee must maintain a sign listing the rates and charges of all towing and
storage services offered. Such sign shall be conspicuously placed in the office or other
places where customer financial transactions take place.
45635.01000\41174271.1
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Rate Schedule. A copy of the rate schedule shall be maintained inside each Tow Vehicle
and presented upon request by a vehicle owner or driver for any vehicle towed or stored by
Franchisee.
No Charge. In the event that a vehicle is stored or impounded at the direction of the Azusa
Police Department, and it is subsequently determined that the City is responsible for the
cost of such storage and/or towing, Franchisee agrees not to assess the City for costs of tow
and/or storage of the vehicle.
Evidence Vehicles. Franchisee further agrees to tow and store vehicles that will be used
as, or contain, evidence of crimes for the Azusa Police Department without charge.
Franchisee acknowledges that it may not satisfactorily perform its duties to tow and store
vehicles that will be used as, or contain, evidence of crimes if criminal charges are pending
against Franchisee, or one of its owners or principals. Franchisee's inability to perform this
function constitutes a material breach of this Agreement and shall provide the basis for
either suspension or revocation of this Agreement, in the discretion of the City.
After Hour Vehicle Releases. Franchisee normal business hours shall be at least from 8:00
a.m. to 5:00 p.m., five (5) days a week (Monday through Friday), and 8:00 a.m. to 12:00
p.m. on Saturday, excluding legal holidays. Franchisee may charge a flat fee for after-hour
releases of an amount not to exceed sixty dollars and no cents ($60.00) in addition to any
previously incurred tow and storage fees for vehicles released outside Franchisee's normal
business hours.
Towing of City Vehicles. Franchisee further agrees to tow and store, for a period not
exceeding five days, all City vehicles free of charge. Moreover, Franchisee agrees not to
charge for the changing of flat tires on City vehicles.
Service Calls & Labor. Rates for service calls (out of gas, lock outs, etc.) shall be from the
time dispatched to the end of the service, and may be charged in accordance with this
Agreement at the hourly rate of no more than sixty dollars and no cents ($60.00), with a
thirty (30) minute minimum. Charges for service periods in excess of thirty (30) minutes
may be charged in fifteen-minute (15) increments.
25. FRANCHISE FEES.
For the privilege of being a non-exclusive Franchise provider for City-requested towing
and storage services, Franchise Fees shall be due and payable as follows:
A. Franchisee shall pay to City a one-time administrative franchise fee of ($1,500.00)
to reimburse City for costs associated with the development of this Franchise
Agreement upon execution of this Agreement.
B. Franchisee agrees to pay the City a "Franchise Fee" in an amount equal to thirty
percent (30%) of Franchisee's Gross Revenues attributable to the towing, storage
and impound Franchisee Services provided in conjunction with this Agreement for
those vehicles towed, stored or impounded when a storage form (CHP 180) has
been completed and a Department case number has been assigned. For purposes of
this Agreement, the term "Gross Revenues" means all cash, credits, revenues,
property of any kind or nature or other consideration as determined according to
generally accepted accounting principles consistently applied, derived directly or
indirectly by Franchisee, its affiliates, subsidiaries, parents, and any other person
45635.01000\41174271.1
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or entity in which Franchisee has a financial interest or which has a financial
interest in Franchisee's tow truck business, arising from or attributable to the towing
and storage Franchisee Services provided. Franchisee acknowledges and agrees
that the Franchise Fee represents the reasonable costs associated with the City’s
towing program.
C. Payment of any Franchise Fee shall be paid by Franchisee on at least a quarterly
basis to the Azusa Police Department Administrative Captain on each January 15th,
April 15th, July 15th and October 15th during the term of this Agreement. If
franchisee chooses to pay such Franchise Fees other than on the described quarterly
basis, the proposed payment schedule must be approved by the Administrative
Captain or by his/her designee.
D. The Franchisee report shall accompany all Franchise Fee payments from
Franchisee.
E. The Agreement Franchise Fee may be adjusted annually by resolution of the City
Council to reflect the City and the Azusa Police Department's current costs for
operating the towing program. Any such adjustment shall be applicable to
Franchisee upon ten (l0) days written notice of the adoption of such resolution.
F. The City retains the right to impose alternative forms of taxes and/or fees, to the
extent permitted by law, in the event that the fees provided for in the towing services
agreements are no longer assessable due to a subsequent change in federal, state or
local law.
26. AUDITS.
Franchisee must make available to the Azusa Police Department, the City or their
designated representative(s), upon three (3) day's written notice, its accounting records and
books for inspection and audit for compliance with this Agreement. The Azusa Police
Department, the City or their designated representative(s) agree to maintain the
confidentiality of such accounting records and books, unless disclosure or breach of
confidentiality is required by law. Franchisee shall submit quarterly documentation
detailing its operations on behalf of the City in both written and electronic formats that are
acceptable to the Azusa Police Department. Such documentation shall include the
following information: the date, time, location, case number (if any), vehicle description
(including make, model and vehicle license number) and a brief description of the
circumstances surrounding the tow (traffic collision, Department impound etc.).
Franchisee shall maintain these records for a period of three (3) years. In addition, the City
require that Franchisee undergo an audit of its accounting records and books by a
professional auditor of the City's choice. Franchisee shall be responsible for payment of
the professional auditor's fees, up to the sum of two thousand five hundred dollars and no
cents ($2,500.00). If the results of any audit show a Franchise Fee underpayment of greater
than five (5) percent, Franchisee will pay a penalty of the amount of the underpayment plus
fifty (50) percent of the underpayment to the City within fifteen (15) days of issuance of
the audit results. Any underpayment and any resulting penalty shall accrue interest at the
45635.01000\41174271.1
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rate of ten (10) percent per annum, compounded daily from the date the underpayment
should have initially been paid to the City.
In the event the results of any audit are disputed, the City may, at its sole discretion, elect
to arbitrate the dispute. In the event the City elects to arbitrate, the City and Franchisee
shall each select an independent auditor at their own cost. The two auditors shall agree
upon the results of the audit. If the two independent auditors cannot agree upon the results
of the audit, a third auditor will be selected by the two independent auditors to make a final
determination. The determination of the third independent auditor shall be final.
By accepting and signing this Agreement, Franchisee irrevocably waives the defenses of
any statute of limitation, laches, waiver or other equitable doctrine of similar import or
effect in any action brought by the City to recover any fees, interest or penalties due under
this Agreement.
By accepting and signing this Agreement, Franchisee agrees that if it challenges the right
of the City to collect the Franchise Fees provided by this Agreement, any relief requested
by Franchisee and awarded to it by virtue of such challenge shall be prospective only from
and after the date of the filing of the initial pleading seeking such relief in a court of
competent jurisdiction. Franchisee hereby waives any and all claims or rights to collect
back from the City, or obtain credit against future payment obligations, any amounts
collected by the City prior to the filing of the initial pleading seeking such relief. In the
event Franchisee's challenge to any Franchise Fee payments should result in an initial
judgment in its favor, Franchisee shall continue to make all Franchise Fee payments in
accordance with this Agreement pending an appeal by the City. In the event the court of
appeal, or trial court if the City elects not to appeal, determines that the City is not entitled
to collect any or all of the Franchise Fees, the City shall refund to Franchisee those portions
of the Franchise Fee which the court deems the City was not entitled to collect which were
made subsequent to the filing of the initial action by Franchisee, exclusive of interest on
such amount
27. ACCEPTANCE OF PAYMENT.
The Franchisee shall accept payment by a valid bank credit card or cash for towing and storage
charges. The Franchisee shall have sufficient funds on the premises to accommodate and make
change in a reasonable monetary transaction. Franchisee shall accept payment from the registered
owner, legal owner or the agent claiming the vehicle in accordance with California Vehicle Code
section 22651.1.
28. SIGNS AND ADVERTISING.
Franchisee’s office must have a sign posted including the company name, address, phone number
and hours of operation, clearly visible from the roadway. Franchisee shall not display any signs or
advertising material which indicates that his/her business is an official towing service or police
storage facility of the City of Azusa or the Azusa Police Department.
29. INDEMNITY, DUTY TO HOLD HARMLESS AND DUTY TO DEFEND.
A. Duty to Indemnify/Hold Harmless
To the fullest extent permitted by law, Franchisee agrees to indemnify, defend,
protect, hold harmless, and assume all liability of the City, its elected officials,
45635.01000\41174271.1
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officers, employees, agents and volunteers (collectively “Indemnified Parties”)
from and against all claims (including, without limitation, claims for bodily injury,
death, damage to property or workers’ compensation benefits), demands,
obligations, damages, actions, causes of action, suits, losses, judgments, fines,
penalties, liabilities, costs and expenses (including, without limitation, attorney’s
fees, disbursements and costs, and all other professional, expert or consultant’s
fees) of every kind and nature whatsoever (individually, a “claim”; collectively,
“claims”), whether under state or federal law, which may arise from or are in any
manner related to this Agreement, regardless of any active or passive negligence or
strict liability- of the Indemnified Parties, and further agrees to indemnify the
Indemnified Parties, regardless of whether the Claim or Claims is/are asserted by
an elected official, officer, employee, agent or volunteer of the City.
Franchisee understands and acknowledges that the indemnification obligation
hereunder, includes, but is not limited to, a “Type I” indemnity under California
law and extends to and includes all claims arising from the active or passive
negligence of the Indemnified Parties.
Franchisee further understands and acknowledges that the indemnification
obligation hereunder extends to workers’ compensation claims made by any elected
officials, officers, employees, agents or volunteers of the City which may arise from
or are in any manner related to the provision of towing services by Franchisee
pursuant to this Agreement.
B. Duty to Defend
The duty to defend hereunder is wholly independent of and separate from the duty
to indemnify and such duty to defend exists regardless of any ultimate liability of
the Indemnified Parties. Such defense obligation, which shall be managed by
Franchisee, shall arise immediately upon presentation of a Claim by any party and
written notice of such Claim being provided to Franchisee. Payment to Franchisee
by any Indemnified Party or the payment or advance of defense costs by any
Indemnified Party shall not be a condition precedent to enforcing such Indemnified
Party’s rights to indemnification hereunder. Franchisee’s duties to indemnify,
defend and hold harmless pursuant to this Agreement shall survive the either the
expiration or earlier termination of this Agreement until such time as any legal
action against the Indemnified Parties for any such matters indemnified hereunder
are fully and finally barred by all applicable statutes of limitation or statutes of
repose. Under no circumstances shall the insurance requirements and limits set
forth in this Agreement be construed to limit Franchisee’s duties to indemnify,
defend or hold harmless pursuant to this Agreement.
30. LIABILITY INSURANCE.
A. Franchisee shall, at its own cost and expense, maintain policies of insurance
affording protection against third party bodily injury liability and property damage
liability occasioned by reason of the provision towing services, impoundment and
storage of vehicles. The minimum insurance established for the following
categories are:
45635.01000\41174271.1
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(1) General Liability Insurance — Franchisee agrees to maintain a
comprehensive general liability insurance policy with a combined single
limit for bodily injury and property damage of not less than Three Million
Dollars ($3,000,000.00).
(2) Commercial Business Automobile Liability (as required by Section 16500.5
California Vehicle Code) - Bodily injury and property damage with a
combined single limit of not less than Three Million Dollars
($3,000,000.00). The policy shall also include owner, non-owner, and hired
auto coverage.
(3) Uninsured Motorist — Legal minimum, combined single limits
(4) On-Hook Coverage- Insuring the vehicle in tow with limits based on the
size of the tow truck
a. Class A Tow Truck $25,000
b. Class B Tow Truck $50,000
c. Class C Tow Truck $100,000
d. Class D Tow Truck $100,000
(5) Garage Liability — Includes premises and operations. Coverage for bodily
injury and property damage with a combined single limit of not less than
Three Million Dollars ($3,000,000.00).
(6) Garage Keeper’s legal liability insurance coverage shall be the same as On-
Hook Coverage.
B. Franchisee shall obtain and maintain at all times in full force and effect during the
term of this Agreement all insurance policies and coverage listed above, which shall
not’ be canceled prior to the termination of this Agreement. The insurance provided
under this Section shall include an endorsement page(s) naming “the City of Azusa,
its elected and appointed officials, officers, employees, agents, and volunteers as
additional insured. Franchisee agrees to deliver a copy of all insurance policies,
endorsements, and certificates to the Azusa Police Department, which are subject
to the approval of the City Attorney as to form, prior to the commencement of the
Towing Services.
C. Franchisee agrees that its insurance shall be primary insurance with respect to any
claims, losses, or liability arising from the provision of towing services by
Franchisee pursuant to this Agreement, and that the insurance carried by the City
of Azusa shall be excess and not contributory with the insurance provided by
Franchisee. Franchisee further agrees to provide an endorsement to its insurance
policies with such language.
D. Franchisee agrees to notify City in writing at least thirty (30) days prior to any
cancellation or reduction in coverage in Franchisee’s insurance coverage for any
insurance providing coverage for the services relating to this Agreement.
Franchisee further agrees that it will provide the City with prompt and timely notice
of any claim made or suit instituted arising from or any way related to the provision
of towing services pursuant to this Agreement. Defense coverage must be in
addition to policy limits. If umbrella coverage is used, it must include drop down
45635.01000\41174271.1
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coverage if underlying coverage does not apply, and the umbrella policy must have
the same starting and ending date as the primary policy.
E. Franchisee shall have the sole right to select its insurance carrier(s), provided such
carrier lawfully transacts business in the State of California. However, all insurance
required by this Agreement must be issued by companies admitted to do business
in California, with an A.M. Best’s rating of A:VII or better, unless these
requirements are waived by the City Attorney of the City due to unique
circumstances. In the event the City Attorney determines that the work or services
to be performed under this Agreement creates an increased or decreased risk of loss
to the City, Franchisee agrees that the minimum limits of any insurance policies
and/or performance bond required by this Agreement may be changed accordingly
upon receipt of written notice from the City Attorney; provided that Franchisee will
have the right to appeal a determination of increased coverage by the City Attorney
to the City Council of the City within ten (10) days of receipt of notice from the
City Attorney.
F. Franchisee shall not perform any services pursuant to this Agreement unless and
until all insurance policies and coverage set forth herein are obtained and copies of
said policies, endorsements and certificates are provided to the City in accordance
with the provisions specified above.
31. WORKERS COMPENSATION INSURANCE.
Franchisee’s employees shall be covered by Worker’s Compensation Insurance in an amount and
form to meet all applicable requirements of the Labor Code of the State of California, and any
other insurance requirements that may be required under federal, state, and/or local law.
32. ASSIGNMENT.
Franchisee shall not sell, transfer, lease, assign, sublet, mortgage or dispose of in whole or in part,
either by forced or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, or
any rights or privileges herein granted, without the prior written consent of the City Council. For
purposes of this Section, an acquisition by any person, group, partnership or other entity of at least
10% of the Franchisee shall be considered a sale, transfer or assignment. The approval of a transfer
or assignment of this Agreement shall be conditioned upon Franchisee’s sale or disposal of all
ownership rights in Franchisee’s tow truck business. If Franchisee desires to transfer or assign its
rights in the tow truck business, because he or she intends to sell or dispose of all interests in the
tow truck business that is authorized to perform towing services on behalf of City, Franchisee shall
make a written request to the Chief of Police for a transfer or assignment of the Agreement. The
written request, along with a deposit fee of one thousand dollars ($1,000.00) to cover the City’s
reasonable investigation costs, and review of the proposed sale agreement or other document
evidencing disposal of the tow truck business shall be submitted to the Azusa Police Department
at least one hundred twenty (120) calendar days before the requested effective transfer or
assignment date. The City shall investigate the proposed transferee or assignee and determine
whether the transferee or assignee is qualified to serve as a tow truck operator pursuant to the
criteria and requirements set forth in this Agreement and under local and State law. If the Azusa
Police Department determines that the proposed transferee or assignee is qualified to be a tow
truck operator, it will recommend that the City Council approve the transfer or assignment. Such
decision shall be in the sole and absolute discretion of the City Council. Upon completion of the
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investigation process, the City shall provide Franchisee with an accounting of the total amount of
administrative and legal costs associated with the City’s review of Franchisee’s request for a
transfer or assignment of the Agreement, and refund of a portion of the initial $1,000 deposit or
request additional funds as appropriate. Any attempt to sell, transfer, lease, assign or otherwise
dispose of the Agreement without the prior written consent of the City Council shall be null and
void.
33. RISK OF DAMAGE.
Franchisee assumes all risk in the event of damage, theft, fire of the vehicles or any property towed
and stored by Franchisee, its employees or agents. Any and all claims, demands or liability arising
out of or encountered in connection with this Agreement shall be borne by Franchisee.
34. OFFICIAL POLICE TOW SERVICE/ AZUSA POLICE DEPARTMENT
COMMUNICATIONS.
The Administrative Division Captain, or his/her designee, shall conduct meetings to discuss issues
of concern with respect to performance by Franchisee under the Agreement. These meetings shall
be mandatory for the operator, or his/her designee. The Azusa Police Department shall give the
operator five (5) days advance written notice of these meetings.
35. DISCIPLINARY PROCEDURES.
A. Compliance with Agreement
Franchisee agrees that failure to comply with the terms and conditions of this
Agreement shall be cause for either a WRITTEN WARNING, SUSPENSION OR
TERMINATION OF THE AGREEMENT, as set forth in this Section.
The Azusa Police Department will investigate alleged violations of this Agreement
and/or violations of Federal, State or local laws in the provision of Towing Services
pursuant to this Agreement. Franchisee will be notified of the findings in writing
within thirty (30) days of completion of the investigation. Franchisee acknowledges
that it shall be subject, and consents, to integrity checks to ensure that it is
complying with the terms of this Agreement, and that its employees are performing
their duties in a manner suitable for provision of Towing Services to City residents
and members of the public. The Franchisee shall be notified of the results in writing
within 14 days of such an “integrity check.” Franchisee will be billed for the actual
costs incurred for such an event(s) in its entirety up to a maximum of $1,000 per
occasion. Franchisee agrees to pay for up to two such “integrity checks” annually.
B. Disciplinary Action
The Field Operations Captain shall use the following guidelines for action against
Franchisee if Franchise is found in violation of this Agreement. This is only a guide,
with the Field Operations Captain having discretion for serious violations of the
Agreement, such as criminal offenses.
1st Violation within 12 consecutive months
WRITTEN WARNING
2nd Violation within 12 consecutive months
WRITTEN WARNING
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3rd Violation within 12 consecutive months
30 day SUSPENSION
4th Violation within 12 consecutive months
60 day SUSPENSION
There shall be no appeal process for written warnings issued to Franchisee by the
Azusa Police Department. However, in the event the Azusa Police Department
serves Franchisee with a notice of suspension, Franchisee may request a hearing
within seven (7) calendar days by submitting a request in writing to the Chief of
Police. The hearing shall be held as soon as practicable. The hearing shall be
conducted by the Chief of Police, or his/her designee. Franchisee shall be entitled
to present all relevant information, evidence and circumstances in support of its
position. Franchisee shall be notified in writing of the Chief of Police, or his/her
designee’s, final decision concerning the suspension within seven (7) calendar days
of the date of the hearing.
Franchisee may appeal the Chief of Police’s or the Chiefs designee’s decision
concerning a suspension for a hearing de novo before the City Manager, or his/her
designee. Franchisee must serve a written notice of appeal on the City pursuant to
the notice provisions set forth herein within ten (10) calendar days of the date upon
which the Chief of Police, or his/her designee’s, decision becomes effective.
Franchisee’s notice of appeal must set forth the grounds for its appeal in clear and
concise language, which shall include a summary of the claimed factual or
decisional error. If Franchisee fails to request a hearing or appeal within the
specified deadlines, or fails to appear at a scheduled hearing or appeal, the action
taken by the Chief of Police, or his/her designee, shall be final and the suspension
shall take effect upon written notification to Franchisee by the Chief of Police.
The City Manager, or his/her designee, shall conduct the hearing on the
administrative appeal. The hearing shall be held as soon as practicable, but in no
event later than thirty (30) days from the notice of appeal therefore unless both
Parties agree in writing to an extension of time for the hearing. The City Manager,
or his/her designee’s, decision on an issue shall be deemed final.
A suspension generally shall not take effect until the hearing and administrative
appeal processes have been exhausted. However, the Chief of Police, or his/her
designee, shall have the authority to suspend the Agreement effective immediately
if, in the sole and absolute discretion of the Chief of Police, or his/her designee, the
conduct by Franchisee or its agents is deemed to constitute a danger to the public
health, safety or welfare or constitutes a gross violation of the terms and conditions
of this Agreement.
C. Citizen Complaints
The Azusa Police Department shall be authorized to receive written complaints
from citizens regarding Franchisee, and/or Franchisee’s principals, officers,
employees and agents pertaining to alleged violations of this Agreement and/or
Federal, State or local laws. Any such complaint may be investigated by the Azusa
45635.01000\41174271.1
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Police Department and may form the basis for disciplinary action as set forth in this
Section or termination of this Agreement.
36. TERMINATION OF AGREEMENT.
A. Termination without Cause.
Either party may terminate this Agreement at any time, without cause, upon
providing 30 days’ written notice to the other party. Upon receipt of the notice of
termination from the City, Franchisee must immediately cease all work or services
except as may be specifically approved by the City. Franchisee will be entitled to
compensation for all services rendered prior to the effectiveness of the notice of
termination and for additional services specifically authorized by the City. The City
will be entitled to reimbursement for any expenses that have been paid for but not
rendered.
B. Termination for Cause.
In the event Franchisee, or any of its officers, directors, shareholders, employees,
agents, subsidiaries, or affiliates is convicted; (i) of a criminal offense as an incident
to obtaining or attempting to obtain a public or private contract or subcontract, or
in the performance of a contract or subcontract; (ii) under state or federal statutes
of embezzlement, theft, forgery, bribery, falsification or destruction of records,
receiving stolen property, or any other offense indicating a lack of business integrity
or business honesty which currently, seriously, and directly affects responsibility
as a public consultant or contractor; (iii) under state or federal antitrust statutes
arising out of the submission of bids or proposals; or (iv) of violation of the conflict
of interest provision of this Agreement, or for any other cause the City determines
to be so serious and compelling as to affect Franchisee’s responsibility as a public
contractor, including but not limited to, disbarment by another governmental
agency, then the City reserves the unilateral right to terminate this Agreement upon
providing Franchisee with ten (10) days’ written notice of termination, or to impose
such other sanctions (which may include financial sanctions, temporary
suspensions, or any other condition deemed appropriate short of termination) as it
deems proper. In the event that the City terminates the Agreement for cause,
Franchisee shall be entitled to the hearing and appeal rights applicable to
disciplinary procedures above. However, termination for cause pursuant to this
paragraph shall be effective upon expiration of the ten (10) days’ notification period
set forth above.
37. FORCE MAJEURE.
If any party fails to perform its obligations because of strikes, lockouts, labor disputes, embargoes,
acts of God, inability to obtain labor or materials or reasonable substitutes for labor
or materials, governmental restrictions, governmental regulations, governmental controls, judicial
orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other
causes beyond the reasonable control of the party obligated to perform, then that party’s
performance will be excused for a period equal to the period of such cause for failure to perform.
45635.01000\41174271.1
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38. CONFLICT OF INTEREST.
A. No officer or employee of the City may have any financial interest, direct or
indirect, in this Agreement, nor may any officer or employee participate in any
decision relating to the Agreement that effects the officer or employee’s financial
interest or the financial interest of any corporation, partnership or association in
which the officer or employee is, directly or indirectly interested, in violation of
any law, rule or regulation.
B. No person may offer, give, or agree to give any officer or employee or former
officer or employee of the City, nor may any officer or employee of the City solicit,
demand, accept, or agree to accept from another person, a gratuity or an offer of
employment in connection with any decision, approval, disapproval,
recommendation, preparation or any part of a program requirement or a purchase
request, influencing the content of any specification or procurement standard,
rendering of advice, investigation, auditing, or in any other advisory capacity in any
way pertaining to any program requirement, contract or subcontract, or to any
solicitation or proposal.
39. NOTICES.
Any notice required to be given under this Agreement shall be given by placing such notice in the
United States mail, postage prepaid, addressed as follows:
Franchisee: City:
Royal Coaches Auto Body & Towing Azusa Police Department
Attn: William Salazar Attn: Chief of Police
208 North Aspan Avenue 725 North Alameda Avenue
Azusa, CA 91702 Azusa, CA 91702
or to such other address as may be indicated by notice in writing. Such notice shall be deemed
made when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S.
mail, first-class postage prepaid and addressed to the party at its applicable address.
40. AUTHORITY TO ENTER AGREEMENT.
The City and Franchisee warrant that the individuals who have signed this Agreement have the
legal power, right and authority to enter into this Agreement so as to bind each respective party to
perform the conditions contemplated herein.
41. SEVERABILITY.
If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions of this Agreement shall continue in full force and effect.
42. ATTORNEYS’ FEES AND COSTS.
If any legal action or other proceeding is brought for the enforcement of this Agreement or because
of an alleged dispute, breach, default, or misrepresentation in connection with any provisions of
this Agreement, the prevailing party, as determined by the court, shall be entitled to recover
45635.01000\41174271.1
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reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition to any
other relief to which it may be entitled.
43. GOVERNING LAW AND VENUE.
This Agreement shall be construed in accordance with and governed by the laws of the State of
California. Any lawsuit brought to enforce this Agreement shall be brought in the appropriate court
in Los Angeles County, State of California.
44. WAIVER
No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any
other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No
waiver shall be deemed a waiver and no waiver shall be binding unless executed in writing by the
party making the waiver.
45. DAYS.
Any term in this Agreement referencing time, days, or period for performance shall be deemed to
be calendar days and not work days.
46. ENTIRE AGREEMENT.
This Agreement contains the entire agreement of the City and Franchisee and supersedes any prior
oral or written statements or agreements between the City and Franchisee. No supplement,
modification, or amendment of this Agreement shall be binding unless executed in writing by both
the City and Franchisee. Franchisee represents that it has conducted all due diligence and
investigation prior to entering into this Agreement, and has not relied upon any representations
that are not set forth herein as an inducement to enter into this Agreement.
47. BINDING ON ASSIGNS.
Each and all of the terms, covenants and conditions of this Agreement shall be binding on and
shall inure to the benefit of the successors and assigns of the City and Franchisee.
48. CAPTIONS.
The captions of the various sections, articles and/or paragraphs of this Agreement are for the
convenience and ease of reference only, and do not define, limit, augment, or describe the scope,
content, or intent of this Agreement or of any part or parts of this Agreement.
49. CONSTRUCTION.
In all cases, the language in all parts of this Agreement shall be construed simply, according to its
fair meaning and not strictly for or against any party, it being agreed that the City and Franchisee
or their respective agents have all participated in the preparation of this Agreement.
50. COOPERATION BY PARTIES.
The City and Franchisee shall fully cooperate with one another in attaining the purposes of this
Agreement and, in connection therewith, shall take any such additional further acts and steps and
sign any such additional documents as may be necessary, appropriate and convenient as related
thereto.
IN WITNESS WHEREOF, the City and Franchisee have caused this Agreement to be
executed by their respective officers hereunto duly authorized.
45635.01000\41174271.1
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IN WITNESS WHEREOF, the City and Franchisee have caused the within
Agreement to be executed by their respective officers hereunto duly authorized.
CITY OF AZUSA ROYAL COACHES AUTO BODY &
TOWING
By: _________________ By: ________________
Sergio Gonzalez [Name]
City Manager
_________________
[Title / Date]
Dated: ______________
ATTEST:
____________________
City Clerk
APPROVED AS TO FORM:
____________________
Marco A. Martinez
City Attorney
____________________
Rocky Wenrick / Date
Chief of Police
45635.01000\41175074.1
NON-EXCLUSIVE FRANCHISE AGREEMENT
BETWEEN THE CITY OF AZUSA AND
TITAN TRANSPORTATION, INC. FOR TOWING AND STORAGE SERVICES
This Non-Exclusive Franchise Agreement (“Agreement”), is entered into on April ___, 2023
(“Effective Date”) by and between the CITY OF AZUSA, a California Municipal Corporation,
hereinafter referred to as “City,” and JAN’S TOWING, a California corporation, hereinafter
referred to as “Franchisee” and collectively referred to herein as the “Parties”.
RECITALS
A.Pursuant to California Vehicle Code section 22660, City has the authority to grant
a franchise to a tow truck operator for towing and storage services required for the abatement and
removal as public nuisances, of abandoned, wrecked, dismantled, or inoperative vehicles or parts
thereof from private or public property within the boundaries of City.
B.California Vehicle Code section 12110(b) allows City to require a fee in connection
with the award of a franchise for towing vehicles on its behalf provided that the fee does not exceed
the amount necessary to reimburse the City for its actual and reasonable costs incurred in
connection with the towing program.
C.Pursuant to the authority granted in California law, City has enacted an ordinance,
currently codified in Azusa Municipal Code section 74-561 et seq., permitting City to grant a non-
exclusive franchise to a tow truck operator to provide the Towing Services within the boundaries
of City..
D.For the purpose of insuring the continued protection and preservation of the public
health, welfare and convenience of the City, City desires to grant Franchisee a nonexclusive
franchise agreement for towing services as defined herein within the City.
E.Franchisee desires to provide such towing services upon the terms and conditions
set forth herein.
NOW, THEREFORE, in consideration of the promises and of the covenants and
conditions hereinafter contained, City and Franchisee mutually agree as follows:
1.INCORPORATION OF RECITALS.
The Recitals set forth above constitute a material part hereof, and are hereby incorporated by
reference herein as though fully set forth herein.
2.GRANT OF FRANCHISE.
City hereby grants a Franchise to Franchisee to provide Towing Services, as defined in Section 3.
Franchisee shall have throughout the term of this Agreement the nonexclusive right to engage in
the business of providing Towing Services requested by City within the boundaries of City as the
same now exist, and within any territory City hereafter annexes, except to the extent that towing
services within such territory annexed would be unlawful or violate the legal rights of another
person.
Attachment 3
45635.01000\41175074.1
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3. SCOPE OF TOWING SERVICES.
During the term of this Agreement, Franchisee shall provide the Towing Services (“Towing
Services”) to City as described in the “Request for Proposals” issued by City (with a February 6,
2023 due date), including but not limited to the following Towing Services:
A. Removing illegally parked vehicles;
B. Towing inoperative vehicles as a result of traffic accident;
C. Towing vehicles as a result of mechanical breakdowns;
D. Storing or impounding vehicles for investigations, evidence, or violation of the law
or for any other lawful purpose;
E. Remove vehicle debris from accident scene;
F. Cover oil and vehicle fluids with sand at accident scenes.
G. Change vehicle tires;
H. Maintaining tow records of stored and impounded vehicles;
I. Provide secured storage lot for stored and impounded vehicles;
J. Provide service to start drained car battery or other vehicle malfunctions;
K. Unlock vehicles.
4. EFFECTIVE DATE OF AGREEMENT.
The term of this Agreement shall commence on April _____, 2023 (“Effective Date”). The initial
term of this Agreement will be for five (5) years from the Effective Date. The Agreement may be
renewed for three (3) additional one-year terms at the sole discretion of City, unless previously
terminated by either of the Parties.
5. NONEXCLUSIVE FRANCHISE.
Franchisee shall have the nonexclusive right to receive calls from the City subject to the terms and
conditions of this Agreement, to provide Towing Services for vehicles which are involved in
accidents, disabled, abandoned, impounded for evidence, impeding the flow of traffic or otherwise
subject to being non-consensually towed and stored at the direction of the City. If the enters into
more than one nonexclusive franchise agreement with a franchisee, Franchisee understands that
Towing Services shall be provided by franchisees on a rotating basis as determined by the Chief
of Police or his/her designee.
6. BASIS FOR ACCEPTANCE.
The Chief of Police, or his/her designee, has the final authority to determine disputes as to the
ability or authority of Franchisee to perform Tow Services for the City. If it is determined that
Towing Services are not needed and are canceled by City, acting by and through the Azusa Police
Department, up to, and including arrival at the scene, there shall be no charges assessed to City by
Franchisee for the request.
If Franchisee is unable to handle any call for the Franchisee Services due to size, location, etc.,
Franchisee will be responsible for requesting another tow service from another City recognized
tow franchisee to respond that is capable of handling the situation. Franchisee agrees that, should
45635.01000\41175074.1
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Franchisee be unable to handle calls for Franchisee Services by City on more than four occasions
within any twelve (12) month period during the term of this Agreement, City may assess
Franchisee a performance penalty pursuant to this Agreement in the sum of one hundred twenty
five dollars and no cents ($125.00) for each subsequent occasion beyond such four (4) occasions
that Franchisee is unable to handle any call for Franchisee Services by City within the 12-month
period. The performance penalty is in addition to any other remedies available pursuant to the
terms of this Agreement or law.
7. PERFORMANCE REPRESENTATIONS.
Franchisee represents that it has towing and storage facilities necessary to meet the requirements
of this Agreement to perform the Franchisee Services. Franchisee further agrees to furnish proof
of possession of the towing equipment and storage yard facilities necessary to perform the
obligations set forth in this Agreement, including title to or a lease on the land necessary to perform
the obligations set forth in this Agreement, and meet the zoning and building requirements of City.
Franchisee shall also possess a valid City Business License. Franchisee further agrees to comply
with all applicable rules and regulations set forth in the City of Azusa Municipal Code, as it may
be amended from time to time.
8. COMPLIANCE WITH LAWS.
Franchisee must at all times throughout the term of this Agreement, comply with the terms of this
Agreement, all state and federal laws, and all current and subsequently enacted towing ordinances,
rules or regulations enacted by City that are applicable to Franchisee.
9. BUSINESS LICENSE.
Franchisee shall possess a valid City Business License prior to providing Towing Services under
this Agreement.
10. RESPONSE TIME.
Franchisee agrees to arrive on scene within fifteen (15) minutes of a verbal request for service by
a member of the Azusa Police Department, or other authorized City personnel, 24 hours/day, 7
days/week, 365 days/year, including holidays and weekends. Franchisee's dispatcher shall notify
the Azusa Police Department Dispatch when it cannot immediately respond with a tow vehicle
capable of performing the Franchisee Services ("Tow Vehicle"), shall give the reason for the delay
in response, and an estimated time of arrival. Franchisee agrees that, should Franchisee fail to
arrive on scene within 15 minutes from a call for service by City on more than eight (8) occasions
within any twelve (12) month period, City may assess Franchisee a performance penalty pursuant
to this Agreement in the sum of one hundred twenty five dollars and no cents ($125.00) for each
subsequent occasion over eight within any twelve month period that Franchisee is unable to timely
respond to a call for Franchisee Services by City within the 12-month period. The performance
penalty is in addition to any other remedies available pursuant to the terms of this Agreement or
law.
11. STAFFING.
Franchisee shall maintain at least two (2) qualified tow truck drivers to respond to requests for
service by the Azusa Police Department or other authorized personnel at all times.
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12. PERSONNEL TRAINING - QUALIFICATIONS.
Franchisee’s tow truck drivers must be sufficiently trained to ensure the safe and proper discharge
of the responsibilities set forth in this Agreement. To ensure the proper qualifications of
Franchisee’s tow truck drivers, Franchisee agrees to the following terms:
A. Driver Information. Franchisee shall provide the name, date of birth, current photo
and valid California driver’s license number of all drivers employed by Franchisee
in writing to the Azusa Police Department Administrative Division Captain.
Franchisee shall notify the Azusa Police Department Administrative Division
Captain, or his/her designee, in writing of any new drivers or any change in
employment status of a current driver within five (5) days of their date of hire or
change in employment status.
B. Pull Notice Program. Franchisee shall participate in the Employer Pull Notice
Program through the Department of Motor Vehicles. Franchisee shall notify the
Azusa Police Department Administrative Division Captain, or his/her designee of
any Pull Notices received for any of Franchisee’s current drivers.
C. Tow Truck Driver Qualifications/Requirements:
(1) Tow truck drivers employed by Franchisee shall be at least 18 years old,
possess the required class driver’s license to operate a tow vehicle.
Franchisee must have drivers available to operate any and all tow vehicles
specified in this Agreement. All drivers must be sufficiently capable and
trained to ensure safe and proper discharge of their Towing Services in a
safe and courteous manner.
(2) All tow truck drivers shall comply with the requirements set forth in
California Vehicle Code Sections’ 27700 and 24605. All tow truck drivers
shall meet all requirements specified in Sections 2430.5 and 12520 of the
California Vehicle Code.
(3) During the term of this Agreement, Franchisee and/or tow truck drivers
shall provide the Azusa Police Department Administrative Division
Captain, or his/her designee, with information in writing concerning any
driving citations received by the tow truck driver(s) in the immediate prior
three (3) years and all information regarding any criminal convictions.
(4) Franchisee’s tow truck drivers shall present a neat, clean and professional
appearance. Tow truck drivers shall wear uniform type pants (or shorts
during warm weather) and shirts that identify the tow service company and
their name (first or last).
(5) The Chief of Police, or his/her designee, in his or her sole discretion, may
require that Franchisee’s tow truck drivers:
(a) Be fingerprinted;
(b) Undergo background checks by the California Department of Motor
Vehicles and any other agency deemed appropriate to determine the
safety practices of the tow truck drivers;
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(6) Franchisee shall not utilize a tow truck driver to render services pursuant to
this Agreement if any of the following conditions exist:
(a) A tow truck driver who is subject to epilepsy, fainting or loss of
consciousness by reason of chronic medical condition;
(b) A tow truck driver whose driving record indicates five (5) violations
of traffic laws involving moving vehicles within two (2) years
preceding the date of the effective date of this Agreement;
(c) A tow truck driver who has furnished false information in any
document submitted to City in connection with this Agreement or
who has omitted to furnish all information requested by City in
connection with this Agreement;
(d) A tow truck driver who has been convicted of driving while under
the influence of intoxicating liquor or narcotic drugs, or both, within
three (3) years of the effective date of this Agreement; or
(e) A tow truck driver who has been convicted of a felony, any crime
involving moral turpitude, or any crime(s) specified in this
Agreement within two (2) years preceding the effective date of this
Agreement.
(7) Notwithstanding compliance with the foregoing provisions, the City may
prohibit certain tow truck drivers from providing Towing Services to the
City or the Azusa Police Department in its sole discretion. Such directives
shall be made by the Chief of Police, or his/her designee, in writing to
Franchisee.
(8) All Franchisee operators or their agents shall give to the driver or owner of
a vehicle to be stored, impounded or towed away, a business card, and/or a
receipt with the service name, address and phone number, and must ensure
that the information is provided to the Azusa Police Department in the
event that the driver is unavailable or incapacitated
13. COMMUNICATIONS.
Franchisee shall install and maintain radio transmission and reception equipment allowing for two-
way communication with each authorized tow vehicle.
14. BUSINESS HOURS - AVAILABILITY BY TELEPHONE.
Police Availability: Franchisee agrees to make their Franchisee Services available 24 hours/day,
five (5) days a week, including holidays. No exceptions.
Public Availability: There shall be a Franchisee employee or agent available in person during
normal business hours at Franchisee's office to handle requests for service and release of
impounded/stored vehicles. Normal business hours shall be from at least 8:00 a.m. to 5:00 p.m.
daily, seven (7) days a week and 8:00 a.m. to 12:00 p.m. on Saturday, excluding legal holidays.
Franchisee shall have an attendant on duty during all of the above business hours.
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15. IMPOUNDED VEHICLES.
A vehicle impounded pursuant to the authority granted by local, state or federal law will be
documented by Azusa Police Department personnel. Franchisee shall obtain authorization from
the Azusa Police Department before any vehicle ordered towed, stored or impounded by the Azusa
Police Department can be released by Franchisee.
16. RELEASE OF VEHICLE AFTER STORAGE / IMPOUND.
Any vehicle stored or impounded by the Azusa Police Department, CANNOT be released without
authorization from the Azusa Police Department. When Franchisee releases a stored vehicle,
Franchisee shall require proper identification and an Azusa Police Department authorized release
form (CHP 180). If the person requesting the release of a vehicle does not have all the above, refer
the person to the Azusa Police Department for further processing. The final decision for release of
a vehicle shall come from the on-duty Watch Commander, or his/her designee. Franchisee shall
adhere to this decision at all times.
Franchisee further agrees that it will release any stored or impounded vehicle to the person
presenting proper identification and an Azusa Police Department authorized release form (CHP
180) within, at a minimum, forty-five (45) minutes of presentation by a person of this
documentation or upon receiving written instructions to release a vehicle by the Azusa Police
Department Watch Commander, or his/her designee. Franchisee further agrees that all storage or
impound fees cease to accrue immediately upon presentation of such documentation, regardless of
the ultimate time of release of the stored or impounded vehicle.
Franchisee further agrees that it will pay a penalty to the Azusa Police Department for each
violation of the terms of this section governing the release of vehicles in an amount equal to three
days of storage fees, calculated using Franchisee's then-existing daily storage fee at the time of
each such violation. The penalty is in addition to any other remedies available pursuant to the terms
of this Agreement or law.
17. RELEASE OF PERSONAL PROPERTY.
Franchisee shall notify the Azusa Police Department prior to the removal of property from a stored
vehicle and will provide a receipt to the Azusa Police Department listing the removed property
and the identification of the person(s) who removed items, with a copy placed in the stored vehicle.
No property shall be removed from the stored vehicle without prior authorization from the Azusa
Police Department. Personal property is considered to be items that are not affixed to the vehicle
and must not be removed without prior authorization from the Azusa Police Department.
18. FRANCHISEE VEHICLE STORAGE YARD FACILITY STANDARDS.
Franchisee must at all times throughout the term of this Agreement, comply with the terms
of this Agreement, all state and federal laws, and all current and subsequently enacted
towing ordinances, rules or regulations enacted by the City of Azusa that are applicable to
Franchisee, as may be amended from time to time. Franchisee shall, at a minimum, comply
with the following requirements with respect to its facilities:
A. Location of Storage Facility. Franchisee office and storage facility must be within
one mile of the City of Azusa. Stored vehicles should be at a single location. If a
secondary storage location is required, it must be within five miles of the City of
Azusa.
45635.01000\41175074.1
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B. Storage Facility Requirements. Adequate security measures for the protection of
vehicles and property shall be provided for at all storage facilities. The Azusa Police
Department Administrative Division Captain, or his/her designee, shall be the sole
judge of what constitutes "adequate" security measures and may grant additional
consideration for state of the art security measures, including, but not limited to,
security cameras and motion sensors. At a minimum, all storage facilities shall
comply with the following requirements:
(1) All storage facilities shall be enclosed by a wall or fence at least 6 feet in
height. Alternatively, storage facilities may consist of enclosed buildings.
All storage facility structures, including walls or fences, shall meet the
requirements of the City of Azusa, and shall be approved by the Azusa
Police Department Administrative Division Captain, or his/her designee.
(2) Storage lot that can hold a minimum of 85 vehicles.
(3) The security for the storage facility shall be adequate to preclude theft,
vandalism or damage by activity while in Franchisee's lot. The storage
facility and lot shall be configured in such a way that no vehicles shall be
left parked or stored on the public streets at any time. Franchisee must
provide off- street parking for its equipment and be able to accommodate at
least four additional vehicles for customer parking. In addition to the four
customer parking spaces, at least one additional customer parking space
shall be provided for handicapped parking purposes. Said handicapped
parking space shall be van accessible. Storage vehicles should be secured
away from customer parking and the office area. Franchisee's office must
have a sign posted including the company name, address, phone number
and hours of operation, clearly visible from the roadway.
(4) Security. All storage facilities must be approved for security by the Azusa
Police Department Administrative Division Captain, or his/her designee,
and available for inspection upon request. Any breach of security in a
building or fence must be repaired within 24 hours.
C. Compliance. All necessary vehicle storage facilities needed to meet the minimum
requirements of this section shall be the sole responsibility of Franchisee. All
necessary approvals for such storage facilities shall comply with the applicable
provisions of the Azusa Municipal Code, or appropriate county and/or city codes.
Compliance with this subsection shall not be deemed to create any duty for the City
to award a permit to Franchisee.
19. INDOOR STORAGE FACILITIES.
Franchisee shall maintain an enclosed locked storage facility for a minimum of five (5) vehicles.
Franchisee shall maintain an additional two (2) spaces that can be secured by the Azusa Police
Department for vehicles ordered impounded because of their involvement in the commission of
crimes or for other reasons determined by the Azusa Police Department (the "Designated Impound
Space"). The Azusa Police Department Administrative Division Captain, or his/her designee, shall
45635.01000\41175074.1
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be the sole judge of what constitutes "adequate" inside storage measures. The Designated Impound
Space should also meet the following criteria:
A. The Designated Impound Space shall be completely protected from the elements,
including wind, heat, adverse weather and other forms of contamination (i.e. dust).
B. The Designated Impound Space must be able to be secured and unauthorized entry
must be prevented. Protection shall also be provided to preclude evidence
contamination by employees and other individuals. Evidence contamination is
defined as removal or touching of any items, papers, vehicle parts, etc., of an
impounded vehicle that is impounded by the Azusa Police Department for
investigation purposes. At a minimum, there should be a door or gate that can be
locked and secured from employees and visitors.
C. The Azusa Police Department will designate when a vehicle is to be placed into the
Designated Impound Space for evidence purposes and may place a seal on each
door of the vehicle or door(s) of the impound facility to maintain the chain of
evidence. Vehicles placed into inside storage for evidence purposes shall not be
removed from such protection until approved by the Azusa Police Department.
D. The Designated Impound Space must be of sufficient size to satisfy the impound
storage requirements of the Azusa Police Department.
E. The Designated Impound Space must be lit with a minimum of two (2) 50 watt,
overhead, quartz halogen lamps, or similar lamps that provide equal or greater light.
F. The Designated Impound Space area must be accessible to Azusa Police
Department personnel twenty four (24) hours a day, seven (7) days a week.
G. The Designated Impound Space must be reasonably clean and clear of dirt, animal
waste, oil, etc.
H. The Designated Impound Space must be protected by an alarm system to prevent
unauthorized entry. The alarm system shall be monitored by an off-site monitoring
company. The alarm code for the alarm system shall be provided to the Azusa Police
Department personnel at all times and shall be changed by Franchisee only upon receiving
authorization from the Chief of Police or at his/her direction. Franchisee shall not provide
the alarm code to any person unless authorized to do so by the Chief of Police.
20. EQUIPMENT STANDARDS.
At its expense, Franchisee agrees that it must have the following equipment that conforms
to the California Highway Patrol's Classification (CHP Class) for the gross vehicle weight
ratings (GVWR) of a truck chassis. 1 Franchisee vehicles must also be in compliance with
the applicable provisions of the California Vehicle Code applying to tow trucks (615 CVC),
1 GVWR Range (lbs) CHP Class
10,000 - 19,500 A
19,501- 33,000 B
33,001 -49,999 C
50,000 or more D
45635.01000\41175074.1
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including but not limited to Sections 615, 21711, 24606, 25100, 27700, 27907, and all
other regulations pertaining to lighting and safety equipment.
A minimum of two (2) flatbed car carriers (Class A or Class B); plus
A minimum of three (3) light-medium duty tow trucks, consisting of:
At least two (2) light duty (Class A); plus
At least one (1) medium duty (Class B); plus
Preferably, at least one (1):
A minimum of three (3) light-medium duty tow trucks, consisting of:
At least two (2) light duty (Class A); plus
At least one (1) medium duty (Class B); plus
Preferably, at least one (1):
Heavy duty (Class C); or
Super heavy duty (Class D); plus
If Franchisee is unable to handle the call due to size, location, etc., Franchisee
agrees that it will be responsible for requesting another tow service from another
City recognized tow Franchisee to respond that can handle the situation.
Preferably, at least one (1) tow truck that is equipped to lift and carry a disabled person in
a wheel chair; plus
All trucks must have two-way radio communication equipment.
Franchisee further agrees that all Franchisee Tow Vehicles must have adequate equipment
for the towing of vehicles. Basic equipment shall include:
(1) Fire Extinguisher(s)
(2) Broom
(3) Shovel
(4) Reflective Triangles Flares
(5) Trash Can(s) with Absorbent Material Office to Truck Radio System
(6) Winch
Motorcycles that are stored, impounded, or towed from a collision scene at the request of
the Azusa Police Department pursuant to this Agreement shall be hauled by a trailer that is
designed to carry motorcycles or by a flatbed truck in an upright position.
Any and all equipment used and maintained by Franchisee must be made available for
inspection by the Azusa Police Department upon request.
All equipment and vehicles to be used under this Agreement shall be inspected by the
California Highway Patrol at least one time per year. All vehicles and equipment shall
display a current inspection sticker (or satisfactory proof thereof) issued by the California
45635.01000\41175074.1
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Highway Patrol prior to its use under this Agreement. The Azusa Police Department may
conduct random vehicle and equipment inspections to ensure compliance with this
Agreement.
The Azusa Police Department may inspect Franchisee facilities used under this Agreement
at any time during normal business hours. Franchisee must have equipment for and have
personnel proficient in unlocking locked vehicles when requested by the Azusa Police
Department.
Throughout the term of this Agreement, Franchisee shall maintain in good condition the
real property and improvements thereon, and all vehicles, facilities, equipment and material
used in the performance of the Franchisee Services required by this Agreement.
21. DUTIES AT THE SCENE.
Franchisee provider's primary duty will be: responding, on a first priority basis, to requests for
towing services initiated by the Azusa Police Department. Franchisee provider must have at least
two (2) tow trucks available at all times (24 hours/day, 7 days/week, 365 days/year, including
holidays and weekends) to respond to requests for service from the Azusa Police Department.
Franchisee provider must also respond to towing requests from other City employees who are duly
authorized by law to remove vehicles for storage, investigations, or both.
Typical towing situations will include, but will not be limited to, removing illegally parked
vehicles, towing inoperative vehicles as a result of traffic accidents, mechanical breakdowns,
storing, or impounding vehicles for investigations, evidence or a violation of law. Franchisee
provider must provide the towing and storage services contemplated herein 24 hours/day, 7
days/week, 365 days/year, including holidays and weekends
After being requested to respond to the scene by the Azusa Police Department or other authorized
City personnel, Franchisee operator shall:
A. Neither move the vehicle nor attach to any vehicle until instructed to do so by a
member of the Azusa Police Department.
B. Shall clean up and remove any and all debris from the accident scene as required
by the Azusa Police Department and the California Vehicle Code.
C. Provide towed vehicle owners, when present at the scene, with a business card or
other information, indicating the name of the Franchisee and address where the
vehicle will be stored, the telephone number and hours of operation.
22. RECORDS AND REPORTING.
Records shall be maintained by Franchisee relating to vehicles towed, stored or impounded at the
City's request:
Franchisee shall keep complete and accurate records of all vehicles towed, stored or impounded at
the request of the City and shall include the amount of fees charged by Franchisee for each such
vehicle. The report shall also list the number of vehicles towed, stored or impounded at the request
of the City that are sold through lien sale. Franchisee shall provide a written and electronic format
quarterly report to the Chief of Police, or his/her designee, on January 15th, April 15th, July 15th
and October 15th of each calendar year of this Agreement containing the above information. The
report shall be limited to vehicles ordered towed, stored or impounded by City.
45635.01000\41175074.1
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Franchisee and the City shall maintain records of the times that calls for service are received,
dispatched, and the times the Tow Vehicles arrive on scene. Franchisee's record system should be
adequate to provide an inquiring party with the ability to locate a vehicle by searching the
following information: license plate number, the make, model, color, date or location of towing or
impound. The record system maintained by Franchisee shall also be made available in an electronic
format as specified by City personnel that is searchable as listed in this section.
Franchisee owner must also notify the California Highway Patrol (CHP) as required by Section
10652 of the California Vehicle Code..
23. INSPECTION OF RECORDS, FACILITIES, EQUIPMENT AND DRIVERS.
All records required to be kept by Franchisee owner shall be available for inspection by
representatives of the Azusa Police Department and the California Highway Patrol. In addition,
Franchisee shall submit at any reasonable time to an Azusa Police Department inspection of all
drivers, vehicles, equipment and yards. Franchisee shall provide California Highway Patrol
inspection certification for each of its Towing Vehicles to the Azusa Police Department. If
Franchisee cannot produce an annual California Highway Patrol certification, the Azusa Police
Department reserves the right to require that all Tow Vehicles be inspected by an automotive
professional certified by the State of California Bureau of Automotive Repair, and selected by the
Azusa Police Department. All vehicle inspection fees shall be borne solely by Franchisee and shall
be due and payable upon presentation of the vehicle for inspection. Any Tow Vehicle that fails an
inspection shall not be used to provide towing service in the City until it is repaired and passes re-
inspection. All Tow Vehicles shall be operated and maintained in compliance with all applicable
state and federal laws and regulations.
24. TOWING RATES & STORAGE FEES.
The rate for towing shall be from the primary towing facility and return to the same. A one-
hour minimum may be charged. Charges in excess of one hour may be charged in fifteen-
minute increments. There shall be no additional charge for labor, mileage, etc. The tow
rates and storage fees for the City of Azusa Tow Truck Services cannot exceed the towing
and storage rates established each year by the California Highway Patrol (CHP) for the
sector applicable to Azusa. These rates may be reviewed annually on June 1st to match any
local CHP rate and fee changes. Franchisee must notify the Chief of Police or his/her
designee in writing of any tow rate and storage fee increase to match the CHP rates and
fees. The Azusa Police Department will verify any increases. Any disputes will be
reconciled through a meeting between the Chief of Police or his/her designee and
Franchisee owner. If the rate and fee increases are verified, the new rates will take effect
on July 1st• Franchisee agrees that Chief of Police's, or his/her designee’s, determination
concerning tow rates and storage fees shall be final.
Storage Fees. Vehicles stored eight hours or less shall be charged no more than one-day's
storage fees. Each day thereafter shall be calculated by the calendar day.
Signs. Franchisee must maintain a sign listing the rates and charges of all towing and
storage services offered. Such sign shall be conspicuously placed in the office or other
places where customer financial transactions take place.
45635.01000\41175074.1
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Rate Schedule. A copy of the rate schedule shall be maintained inside each Tow Vehicle
and presented upon request by a vehicle owner or driver for any vehicle towed or stored by
Franchisee.
No Charge. In the event that a vehicle is stored or impounded at the direction of the Azusa
Police Department, and it is subsequently determined that the City is responsible for the
cost of such storage and/or towing, Franchisee agrees not to assess the City for costs of tow
and/or storage of the vehicle.
Evidence Vehicles. Franchisee further agrees to tow and store vehicles that will be used
as, or contain, evidence of crimes for the Azusa Police Department without charge.
Franchisee acknowledges that it may not satisfactorily perform its duties to tow and store
vehicles that will be used as, or contain, evidence of crimes if criminal charges are pending
against Franchisee, or one of its owners or principals. Franchisee's inability to perform this
function constitutes a material breach of this Agreement and shall provide the basis for
either suspension or revocation of this Agreement, in the discretion of the City.
After Hour Vehicle Releases. Franchisee normal business hours shall be at least from 8:00
a.m. to 5:00 p.m., five (5) days a week (Monday through Friday), and 8:00 a.m. to 12:00
p.m. on Saturday, excluding legal holidays. Franchisee may charge a flat fee for after-hour
releases of an amount not to exceed sixty dollars and no cents ($60.00) in addition to any
previously incurred tow and storage fees for vehicles released outside Franchisee's normal
business hours.
Towing of City Vehicles. Franchisee further agrees to tow and store, for a period not
exceeding five days, all City vehicles free of charge. Moreover, Franchisee agrees not to
charge for the changing of flat tires on City vehicles.
Service Calls & Labor. Rates for service calls (out of gas, lock outs, etc.) shall be from the
time dispatched to the end of the service, and may be charged in accordance with this
Agreement at the hourly rate of no more than sixty dollars and no cents ($60.00), with a
thirty (30) minute minimum. Charges for service periods in excess of thirty (30) minutes
may be charged in fifteen-minute (15) increments.
25. FRANCHISE FEES.
For the privilege of being a non-exclusive Franchise provider for City-requested towing
and storage services, Franchise Fees shall be due and payable as follows:
A. Franchisee shall pay to City a one-time administrative franchise fee of ($1,500.00)
to reimburse City for costs associated with the development of this Franchise
Agreement upon execution of this Agreement.
B. Franchisee agrees to pay the City a "Franchise Fee" in an amount equal to thirty
percent (30%) of Franchisee's Gross Revenues attributable to the towing, storage
and impound Franchisee Services provided in conjunction with this Agreement for
those vehicles towed, stored or impounded when a storage form (CHP 180) has
been completed and a Department case number has been assigned. For purposes of
this Agreement, the term "Gross Revenues" means all cash, credits, revenues,
property of any kind or nature or other consideration as determined according to
generally accepted accounting principles consistently applied, derived directly or
indirectly by Franchisee, its affiliates, subsidiaries, parents, and any other person
45635.01000\41175074.1
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or entity in which Franchisee has a financial interest or which has a financial
interest in Franchisee's tow truck business, arising from or attributable to the towing
and storage Franchisee Services provided. Franchisee acknowledges and agrees
that the Franchise Fee represents the reasonable costs associated with the City’s
towing program.
C. Payment of any Franchise Fee shall be paid by Franchisee on at least a quarterly
basis to the Azusa Police Department Administrative Captain on each January 15th,
April 15th, July 15th and October 15th during the term of this Agreement. If
franchisee chooses to pay such Franchise Fees other than on the described quarterly
basis, the proposed payment schedule must be approved by the Administrative
Captain or by his/her designee.
D. The Franchisee report shall accompany all Franchise Fee payments from
Franchisee.
E. The Agreement Franchise Fee may be adjusted annually by resolution of the City
Council to reflect the City and the Azusa Police Department's current costs for
operating the towing program. Any such adjustment shall be applicable to
Franchisee upon ten (l0) days written notice of the adoption of such resolution.
F. The City retains the right to impose alternative forms of taxes and/or fees, to the
extent permitted by law, in the event that the fees provided for in the towing services
agreements are no longer assessable due to a subsequent change in federal, state or
local law.
26. AUDITS.
Franchisee must make available to the Azusa Police Department, the City or their
designated representative(s), upon three (3) day's written notice, its accounting records and
books for inspection and audit for compliance with this Agreement. The Azusa Police
Department, the City or their designated representative(s) agree to maintain the
confidentiality of such accounting records and books, unless disclosure or breach of
confidentiality is required by law. Franchisee shall submit quarterly documentation
detailing its operations on behalf of the City in both written and electronic formats that are
acceptable to the Azusa Police Department. Such documentation shall include the
following information: the date, time, location, case number (if any), vehicle description
(including make, model and vehicle license number) and a brief description of the
circumstances surrounding the tow (traffic collision, Department impound etc.).
Franchisee shall maintain these records for a period of three (3) years. In addition, the City
require that Franchisee undergo an audit of its accounting records and books by a
professional auditor of the City's choice. Franchisee shall be responsible for payment of
the professional auditor's fees, up to the sum of two thousand five hundred dollars and no
cents ($2,500.00). If the results of any audit show a Franchise Fee underpayment of greater
than five (5) percent, Franchisee will pay a penalty of the amount of the underpayment plus
fifty (50) percent of the underpayment to the City within fifteen (15) days of issuance of
the audit results. Any underpayment and any resulting penalty shall accrue interest at the
45635.01000\41175074.1
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rate of ten (10) percent per annum, compounded daily from the date the underpayment
should have initially been paid to the City.
In the event the results of any audit are disputed, the City may, at its sole discretion, elect
to arbitrate the dispute. In the event the City elects to arbitrate, the City and Franchisee
shall each select an independent auditor at their own cost. The two auditors shall agree
upon the results of the audit. If the two independent auditors cannot agree upon the results
of the audit, a third auditor will be selected by the two independent auditors to make a final
determination. The determination of the third independent auditor shall be final.
By accepting and signing this Agreement, Franchisee irrevocably waives the defenses of
any statute of limitation, laches, waiver or other equitable doctrine of similar import or
effect in any action brought by the City to recover any fees, interest or penalties due under
this Agreement.
By accepting and signing this Agreement, Franchisee agrees that if it challenges the right
of the City to collect the Franchise Fees provided by this Agreement, any relief requested
by Franchisee and awarded to it by virtue of such challenge shall be prospective only from
and after the date of the filing of the initial pleading seeking such relief in a court of
competent jurisdiction. Franchisee hereby waives any and all claims or rights to collect
back from the City, or obtain credit against future payment obligations, any amounts
collected by the City prior to the filing of the initial pleading seeking such relief. In the
event Franchisee's challenge to any Franchise Fee payments should result in an initial
judgment in its favor, Franchisee shall continue to make all Franchise Fee payments in
accordance with this Agreement pending an appeal by the City. In the event the court of
appeal, or trial court if the City elects not to appeal, determines that the City is not entitled
to collect any or all of the Franchise Fees, the City shall refund to Franchisee those portions
of the Franchise Fee which the court deems the City was not entitled to collect which were
made subsequent to the filing of the initial action by Franchisee, exclusive of interest on
such amount
27. ACCEPTANCE OF PAYMENT.
The Franchisee shall accept payment by a valid bank credit card or cash for towing and storage
charges. The Franchisee shall have sufficient funds on the premises to accommodate and make
change in a reasonable monetary transaction. Franchisee shall accept payment from the registered
owner, legal owner or the agent claiming the vehicle in accordance with California Vehicle Code
section 22651.1.
28. SIGNS AND ADVERTISING.
Franchisee’s office must have a sign posted including the company name, address, phone number
and hours of operation, clearly visible from the roadway. Franchisee shall not display any signs or
advertising material which indicates that his/her business is an official towing service or police
storage facility of the City of Azusa or the Azusa Police Department.
29. INDEMNITY, DUTY TO HOLD HARMLESS AND DUTY TO DEFEND.
A. Duty to Indemnify/Hold Harmless
To the fullest extent permitted by law, Franchisee agrees to indemnify, defend,
protect, hold harmless, and assume all liability of the City, its elected officials,
45635.01000\41175074.1
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officers, employees, agents and volunteers (collectively “Indemnified Parties”)
from and against all claims (including, without limitation, claims for bodily injury,
death, damage to property or workers’ compensation benefits), demands,
obligations, damages, actions, causes of action, suits, losses, judgments, fines,
penalties, liabilities, costs and expenses (including, without limitation, attorney’s
fees, disbursements and costs, and all other professional, expert or consultant’s
fees) of every kind and nature whatsoever (individually, a “claim”; collectively,
“claims”), whether under state or federal law, which may arise from or are in any
manner related to this Agreement, regardless of any active or passive negligence or
strict liability- of the Indemnified Parties, and further agrees to indemnify the
Indemnified Parties, regardless of whether the Claim or Claims is/are asserted by
an elected official, officer, employee, agent or volunteer of the City.
Franchisee understands and acknowledges that the indemnification obligation
hereunder, includes, but is not limited to, a “Type I” indemnity under California
law and extends to and includes all claims arising from the active or passive
negligence of the Indemnified Parties.
Franchisee further understands and acknowledges that the indemnification
obligation hereunder extends to workers’ compensation claims made by any elected
officials, officers, employees, agents or volunteers of the City which may arise from
or are in any manner related to the provision of towing services by Franchisee
pursuant to this Agreement.
B. Duty to Defend
The duty to defend hereunder is wholly independent of and separate from the duty
to indemnify and such duty to defend exists regardless of any ultimate liability of
the Indemnified Parties. Such defense obligation, which shall be managed by
Franchisee, shall arise immediately upon presentation of a Claim by any party and
written notice of such Claim being provided to Franchisee. Payment to Franchisee
by any Indemnified Party or the payment or advance of defense costs by any
Indemnified Party shall not be a condition precedent to enforcing such Indemnified
Party’s rights to indemnification hereunder. Franchisee’s duties to indemnify,
defend and hold harmless pursuant to this Agreement shall survive the either the
expiration or earlier termination of this Agreement until such time as any legal
action against the Indemnified Parties for any such matters indemnified hereunder
are fully and finally barred by all applicable statutes of limitation or statutes of
repose. Under no circumstances shall the insurance requirements and limits set
forth in this Agreement be construed to limit Franchisee’s duties to indemnify,
defend or hold harmless pursuant to this Agreement.
30. LIABILITY INSURANCE.
A. Franchisee shall, at its own cost and expense, maintain policies of insurance
affording protection against third party bodily injury liability and property damage
liability occasioned by reason of the provision towing services, impoundment and
storage of vehicles. The minimum insurance established for the following
categories are:
45635.01000\41175074.1
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(1) General Liability Insurance — Franchisee agrees to maintain a
comprehensive general liability insurance policy with a combined single
limit for bodily injury and property damage of not less than Three Million
Dollars ($3,000,000.00).
(2) Commercial Business Automobile Liability (as required by Section 16500.5
California Vehicle Code) - Bodily injury and property damage with a
combined single limit of not less than Three Million Dollars
($3,000,000.00). The policy shall also include owner, non-owner, and hired
auto coverage.
(3) Uninsured Motorist — Legal minimum, combined single limits
(4) On-Hook Coverage- Insuring the vehicle in tow with limits based on the
size of the tow truck
a. Class A Tow Truck $25,000
b. Class B Tow Truck $50,000
c. Class C Tow Truck $100,000
d. Class D Tow Truck $100,000
(5) Garage Liability — Includes premises and operations. Coverage for bodily
injury and property damage with a combined single limit of not less than
Three Million Dollars ($3,000,000.00).
(6) Garage Keeper’s legal liability insurance coverage shall be the same as On-
Hook Coverage.
B. Franchisee shall obtain and maintain at all times in full force and effect during the
term of this Agreement all insurance policies and coverage listed above, which shall
not’ be canceled prior to the termination of this Agreement. The insurance provided
under this Section shall include an endorsement page(s) naming “the City of Azusa,
its elected and appointed officials, officers, employees, agents, and volunteers as
additional insured. Franchisee agrees to deliver a copy of all insurance policies,
endorsements, and certificates to the Azusa Police Department, which are subject
to the approval of the City Attorney as to form, prior to the commencement of the
Towing Services.
C. Franchisee agrees that its insurance shall be primary insurance with respect to any
claims, losses, or liability arising from the provision of towing services by
Franchisee pursuant to this Agreement, and that the insurance carried by the City
of Azusa shall be excess and not contributory with the insurance provided by
Franchisee. Franchisee further agrees to provide an endorsement to its insurance
policies with such language.
D. Franchisee agrees to notify City in writing at least thirty (30) days prior to any
cancellation or reduction in coverage in Franchisee’s insurance coverage for any
insurance providing coverage for the services relating to this Agreement.
Franchisee further agrees that it will provide the City with prompt and timely notice
of any claim made or suit instituted arising from or any way related to the provision
of towing services pursuant to this Agreement. Defense coverage must be in
addition to policy limits. If umbrella coverage is used, it must include drop down
45635.01000\41175074.1
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coverage if underlying coverage does not apply, and the umbrella policy must have
the same starting and ending date as the primary policy.
E. Franchisee shall have the sole right to select its insurance carrier(s), provided such
carrier lawfully transacts business in the State of California. However, all insurance
required by this Agreement must be issued by companies admitted to do business
in California, with an A.M. Best’s rating of A:VII or better, unless these
requirements are waived by the City Attorney of the City due to unique
circumstances. In the event the City Attorney determines that the work or services
to be performed under this Agreement creates an increased or decreased risk of loss
to the City, Franchisee agrees that the minimum limits of any insurance policies
and/or performance bond required by this Agreement may be changed accordingly
upon receipt of written notice from the City Attorney; provided that Franchisee will
have the right to appeal a determination of increased coverage by the City Attorney
to the City Council of the City within ten (10) days of receipt of notice from the
City Attorney.
F. Franchisee shall not perform any services pursuant to this Agreement unless and
until all insurance policies and coverage set forth herein are obtained and copies of
said policies, endorsements and certificates are provided to the City in accordance
with the provisions specified above.
31. WORKERS COMPENSATION INSURANCE.
Franchisee’s employees shall be covered by Worker’s Compensation Insurance in an amount and
form to meet all applicable requirements of the Labor Code of the State of California, and any
other insurance requirements that may be required under federal, state, and/or local law.
32. ASSIGNMENT.
Franchisee shall not sell, transfer, lease, assign, sublet, mortgage or dispose of in whole or in part,
either by forced or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, or
any rights or privileges herein granted, without the prior written consent of the City Council. For
purposes of this Section, an acquisition by any person, group, partnership or other entity of at least
10% of the Franchisee shall be considered a sale, transfer or assignment. The approval of a transfer
or assignment of this Agreement shall be conditioned upon Franchisee’s sale or disposal of all
ownership rights in Franchisee’s tow truck business. If Franchisee desires to transfer or assign its
rights in the tow truck business, because he or she intends to sell or dispose of all interests in the
tow truck business that is authorized to perform towing services on behalf of City, Franchisee shall
make a written request to the Chief of Police for a transfer or assignment of the Agreement. The
written request, along with a deposit fee of one thousand dollars ($1,000.00) to cover the City’s
reasonable investigation costs, and review of the proposed sale agreement or other document
evidencing disposal of the tow truck business shall be submitted to the Azusa Police Department
at least one hundred twenty (120) calendar days before the requested effective transfer or
assignment date. The City shall investigate the proposed transferee or assignee and determine
whether the transferee or assignee is qualified to serve as a tow truck operator pursuant to the
criteria and requirements set forth in this Agreement and under local and State law. If the Azusa
Police Department determines that the proposed transferee or assignee is qualified to be a tow
truck operator, it will recommend that the City Council approve the transfer or assignment. Such
decision shall be in the sole and absolute discretion of the City Council. Upon completion of the
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investigation process, the City shall provide Franchisee with an accounting of the total amount of
administrative and legal costs associated with the City’s review of Franchisee’s request for a
transfer or assignment of the Agreement, and refund of a portion of the initial $1,000 deposit or
request additional funds as appropriate. Any attempt to sell, transfer, lease, assign or otherwise
dispose of the Agreement without the prior written consent of the City Council shall be null and
void.
33. RISK OF DAMAGE.
Franchisee assumes all risk in the event of damage, theft, fire of the vehicles or any property towed
and stored by Franchisee, its employees or agents. Any and all claims, demands or liability arising
out of or encountered in connection with this Agreement shall be borne by Franchisee.
34. OFFICIAL POLICE TOW SERVICE/ AZUSA POLICE DEPARTMENT
COMMUNICATIONS.
The Administrative Division Captain, or his/her designee, shall conduct meetings to discuss issues
of concern with respect to performance by Franchisee under the Agreement. These meetings shall
be mandatory for the operator, or his/her designee. The Azusa Police Department shall give the
operator five (5) days advance written notice of these meetings.
35. DISCIPLINARY PROCEDURES.
A. Compliance with Agreement
Franchisee agrees that failure to comply with the terms and conditions of this
Agreement shall be cause for either a WRITTEN WARNING, SUSPENSION OR
TERMINATION OF THE AGREEMENT, as set forth in this Section.
The Azusa Police Department will investigate alleged violations of this Agreement
and/or violations of Federal, State or local laws in the provision of Towing Services
pursuant to this Agreement. Franchisee will be notified of the findings in writing
within thirty (30) days of completion of the investigation. Franchisee acknowledges
that it shall be subject, and consents, to integrity checks to ensure that it is
complying with the terms of this Agreement, and that its employees are performing
their duties in a manner suitable for provision of Towing Services to City residents
and members of the public. The Franchisee shall be notified of the results in writing
within 14 days of such an “integrity check.” Franchisee will be billed for the actual
costs incurred for such an event(s) in its entirety up to a maximum of $1,000 per
occasion. Franchisee agrees to pay for up to two such “integrity checks” annually.
B. Disciplinary Action
The Field Operations Captain shall use the following guidelines for action against
Franchisee if Franchise is found in violation of this Agreement. This is only a guide,
with the Field Operations Captain having discretion for serious violations of the
Agreement, such as criminal offenses.
1st Violation within 12 consecutive months
WRITTEN WARNING
2nd Violation within 12 consecutive months
WRITTEN WARNING
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3rd Violation within 12 consecutive months
30 day SUSPENSION
4th Violation within 12 consecutive months
60 day SUSPENSION
There shall be no appeal process for written warnings issued to Franchisee by the
Azusa Police Department. However, in the event the Azusa Police Department
serves Franchisee with a notice of suspension, Franchisee may request a hearing
within seven (7) calendar days by submitting a request in writing to the Chief of
Police. The hearing shall be held as soon as practicable. The hearing shall be
conducted by the Chief of Police, or his/her designee. Franchisee shall be entitled
to present all relevant information, evidence and circumstances in support of its
position. Franchisee shall be notified in writing of the Chief of Police, or his/her
designee’s, final decision concerning the suspension within seven (7) calendar days
of the date of the hearing.
Franchisee may appeal the Chief of Police’s or the Chiefs designee’s decision
concerning a suspension for a hearing de novo before the City Manager, or his/her
designee. Franchisee must serve a written notice of appeal on the City pursuant to
the notice provisions set forth herein within ten (10) calendar days of the date upon
which the Chief of Police, or his/her designee’s, decision becomes effective.
Franchisee’s notice of appeal must set forth the grounds for its appeal in clear and
concise language, which shall include a summary of the claimed factual or
decisional error. If Franchisee fails to request a hearing or appeal within the
specified deadlines, or fails to appear at a scheduled hearing or appeal, the action
taken by the Chief of Police, or his/her designee, shall be final and the suspension
shall take effect upon written notification to Franchisee by the Chief of Police.
The City Manager, or his/her designee, shall conduct the hearing on the
administrative appeal. The hearing shall be held as soon as practicable, but in no
event later than thirty (30) days from the notice of appeal therefore unless both
Parties agree in writing to an extension of time for the hearing. The City Manager,
or his/her designee’s, decision on an issue shall be deemed final.
A suspension generally shall not take effect until the hearing and administrative
appeal processes have been exhausted. However, the Chief of Police, or his/her
designee, shall have the authority to suspend the Agreement effective immediately
if, in the sole and absolute discretion of the Chief of Police, or his/her designee, the
conduct by Franchisee or its agents is deemed to constitute a danger to the public
health, safety or welfare or constitutes a gross violation of the terms and conditions
of this Agreement.
C. Citizen Complaints
The Azusa Police Department shall be authorized to receive written complaints
from citizens regarding Franchisee, and/or Franchisee’s principals, officers,
employees and agents pertaining to alleged violations of this Agreement and/or
Federal, State or local laws. Any such complaint may be investigated by the Azusa
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Police Department and may form the basis for disciplinary action as set forth in this
Section or termination of this Agreement.
36. TERMINATION OF AGREEMENT.
A. Termination without Cause.
Either party may terminate this Agreement at any time, without cause, upon
providing 30 days’ written notice to the other party. Upon receipt of the notice of
termination from the City, Franchisee must immediately cease all work or services
except as may be specifically approved by the City. Franchisee will be entitled to
compensation for all services rendered prior to the effectiveness of the notice of
termination and for additional services specifically authorized by the City. The City
will be entitled to reimbursement for any expenses that have been paid for but not
rendered.
B. Termination for Cause.
In the event Franchisee, or any of its officers, directors, shareholders, employees,
agents, subsidiaries, or affiliates is convicted; (i) of a criminal offense as an incident
to obtaining or attempting to obtain a public or private contract or subcontract, or
in the performance of a contract or subcontract; (ii) under state or federal statutes
of embezzlement, theft, forgery, bribery, falsification or destruction of records,
receiving stolen property, or any other offense indicating a lack of business integrity
or business honesty which currently, seriously, and directly affects responsibility
as a public consultant or contractor; (iii) under state or federal antitrust statutes
arising out of the submission of bids or proposals; or (iv) of violation of the conflict
of interest provision of this Agreement, or for any other cause the City determines
to be so serious and compelling as to affect Franchisee’s responsibility as a public
contractor, including but not limited to, disbarment by another governmental
agency, then the City reserves the unilateral right to terminate this Agreement upon
providing Franchisee with ten (10) days’ written notice of termination, or to impose
such other sanctions (which may include financial sanctions, temporary
suspensions, or any other condition deemed appropriate short of termination) as it
deems proper. In the event that the City terminates the Agreement for cause,
Franchisee shall be entitled to the hearing and appeal rights applicable to
disciplinary procedures above. However, termination for cause pursuant to this
paragraph shall be effective upon expiration of the ten (10) days’ notification period
set forth above.
37. FORCE MAJEURE.
If any party fails to perform its obligations because of strikes, lockouts, labor disputes, embargoes,
acts of God, inability to obtain labor or materials or reasonable substitutes for labor
or materials, governmental restrictions, governmental regulations, governmental controls, judicial
orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other
causes beyond the reasonable control of the party obligated to perform, then that party’s
performance will be excused for a period equal to the period of such cause for failure to perform.
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38. CONFLICT OF INTEREST.
A. No officer or employee of the City may have any financial interest, direct or
indirect, in this Agreement, nor may any officer or employee participate in any
decision relating to the Agreement that effects the officer or employee’s financial
interest or the financial interest of any corporation, partnership or association in
which the officer or employee is, directly or indirectly interested, in violation of
any law, rule or regulation.
B. No person may offer, give, or agree to give any officer or employee or former
officer or employee of the City, nor may any officer or employee of the City solicit,
demand, accept, or agree to accept from another person, a gratuity or an offer of
employment in connection with any decision, approval, disapproval,
recommendation, preparation or any part of a program requirement or a purchase
request, influencing the content of any specification or procurement standard,
rendering of advice, investigation, auditing, or in any other advisory capacity in any
way pertaining to any program requirement, contract or subcontract, or to any
solicitation or proposal.
39. NOTICES.
Any notice required to be given under this Agreement shall be given by placing such notice in the
United States mail, postage prepaid, addressed as follows:
Franchisee: City:
Jan's Towing Azusa Police Department
Attn: Jan Qualkenbush Attn: Chief of Police
1045 W. Kirkwall Road 725 North Alameda Avenue
Azusa, CA 91702 Azusa, CA 91702
or to such other address as may be indicated by notice in writing. Such notice shall be deemed
made when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S.
mail, first-class postage prepaid and addressed to the party at its applicable address.
40. AUTHORITY TO ENTER AGREEMENT.
The City and Franchisee warrant that the individuals who have signed this Agreement have the
legal power, right and authority to enter into this Agreement so as to bind each respective party to
perform the conditions contemplated herein.
41. SEVERABILITY.
If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions of this Agreement shall continue in full force and effect.
42. ATTORNEYS’ FEES AND COSTS.
If any legal action or other proceeding is brought for the enforcement of this Agreement or because
of an alleged dispute, breach, default, or misrepresentation in connection with any provisions of
this Agreement, the prevailing party, as determined by the court, shall be entitled to recover
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reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition to any
other relief to which it may be entitled.
43. GOVERNING LAW AND VENUE.
This Agreement shall be construed in accordance with and governed by the laws of the State of
California. Any lawsuit brought to enforce this Agreement shall be brought in the appropriate court
in Los Angeles County, State of California.
44. WAIVER
No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any
other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No
waiver shall be deemed a waiver and no waiver shall be binding unless executed in writing by the
party making the waiver.
45. DAYS.
Any term in this Agreement referencing time, days, or period for performance shall be deemed to
be calendar days and not work days.
46. ENTIRE AGREEMENT.
This Agreement contains the entire agreement of the City and Franchisee and supersedes any prior
oral or written statements or agreements between the City and Franchisee. No supplement,
modification, or amendment of this Agreement shall be binding unless executed in writing by both
the City and Franchisee. Franchisee represents that it has conducted all due diligence and
investigation prior to entering into this Agreement, and has not relied upon any representations
that are not set forth herein as an inducement to enter into this Agreement.
47. BINDING ON ASSIGNS.
Each and all of the terms, covenants and conditions of this Agreement shall be binding on and
shall inure to the benefit of the successors and assigns of the City and Franchisee.
48. CAPTIONS.
The captions of the various sections, articles and/or paragraphs of this Agreement are for the
convenience and ease of reference only, and do not define, limit, augment, or describe the scope,
content, or intent of this Agreement or of any part or parts of this Agreement.
49. CONSTRUCTION.
In all cases, the language in all parts of this Agreement shall be construed simply, according to its
fair meaning and not strictly for or against any party, it being agreed that the City and Franchisee
or their respective agents have all participated in the preparation of this Agreement.
50. COOPERATION BY PARTIES.
The City and Franchisee shall fully cooperate with one another in attaining the purposes of this
Agreement and, in connection therewith, shall take any such additional further acts and steps and
sign any such additional documents as may be necessary, appropriate and convenient as related
thereto.
IN WITNESS WHEREOF, the City and Franchisee have caused this Agreement to be
executed by their respective officers hereunto duly authorized.
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IN WITNESS WHEREOF, the City and Franchisee have caused the within
Agreement to be executed by their respective officers hereunto duly authorized.
CITY OF AZUSA JAN’S TOWING
By: _________________ By: ________________
Sergio Gonzalez [Name]
City Manager
_________________
[Title / Date]
Dated: ______________
ATTEST:
____________________
City Clerk
APPROVED AS TO FORM:
____________________
Marco A. Martinez
City Attorney
____________________
Rocky Wenrick / Date
Chief of Police