HomeMy WebLinkAboutItem No. 30 - Tow ServicesCity Council Agenda Report
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 22-268
Agenda Date: 6/28/2022 Status: Approval FinalVersion: 1
File Type: Council Consent
Calendar
In Control: City Council / Successor Agency
Agenda Number: 30)
Adopt Resolutions Awarding Tow Franchise Agreements and Amending Tow Franchise Fees,
and Introducing an Ordinance Amending and Restating Chapter 12.14 of the Lake Elsinore
Municipal Code Regarding Rotational Towing Services
1.Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AWARDING TOW FRANCHISE AGREEMENTS
2.Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AMENDING TOW FRANCHISE FEES; and
3.Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING AND RESTATING CHAPTER 12.14 OF
THE LAKE ELSINORE MUNICIPAL CODE REGARDING ROTATIONAL TOWING SERVICES.
Page 1 City of Lake Elsinore Printed on 6/23/2022
Page 1 of 3
REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Alex Teahen, Management Analyst
Date: June 28, 2022
Subject: Adopt a Resolution Awarding Tow Franchise Agreements, Resolution
Amending Tow Franchise Fees, and Introduction of an Ordinance amending
and restating Chapter 12.14 of the Lake Elsinore Municipal Code regarding
rotational towing services
Recommendation
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AWARDING TOW FRANCHISES AGREEMENTS TO BROTHER’S TOWING,
STEVE’S TOWING, DIAMOND VALLEY TOWING AND RIVERA TOWING.
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AMENDING TOW FRANCHISE FEES.
Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING AND RESTATING CHAPTER 12.14
OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING ROTATIONAL TOWING
SERVICES
Background
Pursuant to California Vehicle Code Section 12110(b), the City has the authority to grant
franchises to companies that provide certain towing services and to collect a franchise tow
service fee to offset actual and reasonable costs incurred in connection with administering its
police towing program.
In February 2014, the City Council adopted Ordinance No. 2014-1322 amending and restating
Chapter 12.14 of the Lake Elsinore Municipal Code regarding rotational tow services.
Subsequently, the City issued a request for qualifications (RFQ) to local tow truck operators and
entered into a Tow Operation Franchise Agreement with five local tow companies on July 22,
2014. The original franchise agreements were for a term not to exceed four years with a two-
year extension for well-performing franchisees.
Tow Franchise Ordinance Update, Fee Resolution, and Agreements
Page 2 of 3
On July 19, 2020, the City authorized Amendment No. 1 to the City Tow Operation Franchise
Agreement, extending the term of the Original Agreement to June 30, 2021, for three remaining
companies with existing agreements.
On June 22, 2021, the City authorized Amendment No. 2 to the City Tow Operation Franchise
Agreement, extending the term of the Original Agreement to June 30, 2022, for the three
companies with existing agreements. Currently, the City has existing agreements in place with
Brother’s Towing, Diamond Valley Towing, and Steve’s Towing.
Both agreement amendments continued all terms of the current agreements and allowed for the
franchise fee structure to remain unchanged. As stated in the June 22, 2021, Staff Report
recommending execution of Amendment No. 2, any changes to the fee structure would not take
place until Fiscal Year 2022/2023.
Per the original Tow Operation Franchise Agreement executed in February 2014, the City
received a $1,000 flat-fee per franchisee, which gradually was increased by $1,000 each year
for four years. The $4,000 fee has remained unchanged since 2020. However, as the costs of
police services have increased so have the costs of administering the tow program.
During FY 2020-2021 and FY 2021-2022, the Police Department estimates they towed
approximately 1,700 vehicles, or approximately 850 vehicles per year.
Discussion
During FY 2021-2022, Staff conducted an evaluation of the City’s rotational tow services
program and fee schedule. Current sources of revenue for the program include the existing
franchise fee of $4,000 per franchisee and Vehicle Impound Cost Recovery Fees (VICR) paid
by registered or legal owners who seek the release of a vehicle that has been impounded. While
the VICR fees offset the majority of the cost associated with the program, the franchise fee can
fill the remaining gap in the overall costs of administering the program, which gap is estimated
to be approximately $20,000 per year.
Staff determined that a gradual fee structure that begins with a $4,000 flat-fee per franchisee
that will generate $16,000 in Fiscal Year 2022-2023 along with annual increases of $500 per
year was appropriate to fill the City’s cost gap as noted above. Accordingly, staff recommends
the following franchise fee schedule over the next four years:
Year 1: $4,000 flat-fee per franchisee
Year 2: $4,500 flat-fee per franchisee
Year 3: $5,000 flat-fee per franchisee
Year 4: $5,500 flat-fee per franchisee
On January 7, City staff issued a notice of request for qualifications (RFQ) to solicit qualified tow
truck operators currently operating in the City who were interested in entering into a franchise
agreement to provide rotational police towing and storage services to the City of Lake Elsinore
and the Lake Elsinore Police Department.
Five local tow truck operators responded to the RFQ. The City and Police Department
conducted a multi-step evaluation of the submitted tow franchise proposals and concluded that
four tow companies have met or exceeded the requirements of the RFQ and the Tow Operation
Tow Franchise Ordinance Update, Fee Resolution, and Agreements
Page 3 of 3
Franchise Agreement. This included facility and equipment inspections by the Police
Department to assess the quality and condition of the vehicles, equipment, and storage areas.
Pursuant to Chapter 12.14, Police Captain Andrew Elias determined the number of franchisees
needed to provide towing services to the Police Department. Therefore, Captain Elias is
recommending the award of franchises to four (4) tow companies including: Brother’s Towing,
Steve’s Towing, Diamond Valley Towing and Rivera Towing.
Currently, the City has franchise agreements with three of the local companies. The proposed
recommendation adds an additional operator, Rivera Towing Inc. to the Police Department’s
rotational tow schedule.
During the evaluation of the City’s rotational tow services program, staff also reviewed the City’s
tow franchise ordinance, Lake Elsinore Municipal Code, Chapter 12.14. Staff is proposing
minimal revisions to LEMC Chapter 12.14 in order to streamline the ordinance. Proposed
changes would not change the fundamental relationship between the City and the franchisees.
Key revisions include:
Removed chapter 12.14.070 Conditions on franchises and 12.14.080 Rates to allow the
Tow Operation Franchise Agreement to set the conditions on franchise operators and
franchisee rates.
Removed prohibition of Class B, C, or D operators from maintaining a place on a lighter
class rotation list.
Removed language regarding transfer of Tow Operation Franchise Agreement.
Attached is a clean version and a redline version of the proposed changes to the existing
municipal code and the franchise agreement.
The proposed franchise agreements would be for a term not to exceed four years with the new
agreements taking effect July 1, 2022, with the possibility of a two-year extension for well-
performing franchisees.
Fiscal Impact
The current annual franchise fee for each company is a flat fee of $4,000 per year. This would
result in total franchise fees to the City of $16,000 for Fiscal Year 2022-2023, $18,000 for Fiscal
Year 2023-2024, $20,000 for Fiscal Year 2024-2025, and $22,000 for Fiscal Year 2025-2026.
Exhibits
A – Ordinance
B – Resolution Awarding Tow Franchises
C – Resolution Amending Tow Franchise Fees
D1 – Tow Franchise Agreement Brother’s Towing
D2 – Tow Franchise Agreement Diamond Valley
D3 – Tow Franchise Agreement Rivera Towing
D4 – Tow Franchise Agreement Steve’s Towing
E – Comparison of Existing and Proposed Changes to Ch. 12.14 Marked to Show Revisions
ORDINANCE NO. 2022-____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AMENDING AND RESTATING CHAPTER 12.14 OF THE LAKE
ELSINORE MUNICIPAL CODE REGARDING ROTATIONAL TOWING
SERVICES
WHEREAS, the City Council desires to amend and restate Chapter 12.14 of the Lake
Elsinore Municipal Code in order to revise and update the provisions related to rotational towing
services and the franchise granted by the City Council to provide such services.
THE CITY COUNCIL OF THE CITY OF THE CITY OF LAKE ELSINORE DOES ORDAIN
AS FOLLOWS:
Section 1. Chapter 12.14 of the Lake Elsinore Municipal Code is hereby amended and
restated as follows:
Chapter 12.14
ROTATIONAL TOWING SERVICES
Sections:
12.14.010 Purpose and intent.
12.14.020 Definitions.
12.14.030 Tow truck operator franchise.
12.14.040 Nonexclusive franchise.
12.14.050 Selection of franchisees.
12.14.060 Rotation system.
12.14.070 Vehicle impound cost recovery fee.
12.14.080 Franchise fees.
12.14.090 Franchise agreements.
12.14.100 Additional services to be provided.
12.14.110 Authority to maintain City towing operations and towing yard.
12.14.010 Purpose and intent.
It is the intent of this chapter and any subsequent amendments thereto to prescribe the basic
regulations for the operation of the City of Lake Elsinore (“City”) and Lake Elsinore Police
Department (“Police Department”) towing service in emergency situations and in the removal of
vehicles that are abandoned, involved in an accident, or constitute an obstruction to traffic
because of mechanical failure. It is the purpose of the City Council in enacting this chapter to
provide a fair and impartial means of distributing requests for towing services among qualified
franchises, and to ensure that such service is prompt and reasonably priced, and in the best
interests of the public as well as the interest of efficient policing operations for the removal of such
vehicles from public streets.
12.14.020 Definitions.
For purposes of this chapter, the following terms, phrases, words, and derivations shall have the
meaning given in this section:
“City Manager” means the City Manager of the City of Lake Elsinore.
Ord. No. 2022- ______
Page 2 of 5
“Franchise agreement” means an agreement between the City and a franchisee for the purpose
of providing towing services as provided in this chapter.
“Franchisee” means a certain tow truck operator to which the City Council may, by the adoption
of a resolution or ordinance, grant a nonexclusive franchise for purposes of providing towing
services to the City under and pursuant to the provisions of this chapter.
“Police Chief” means the Chief of Police of the Police Department of the City of Lake Elsinore.
“Police Department” means the Police Department of the City of Lake Elsinore.
“Tow truck operator” means a towing company and the owner(s) and/or managing employee(s)
of a towing company.
12.14.030 Tow truck operator franchise.
The City Council may at its discretion, by the adoption of a resolution or ordinance, grant a
nonexclusive franchise to a tow truck operator (“franchisee”) to provide towing services to the City
under and pursuant to the provisions of this chapter.
12.14.040 Nonexclusive franchise.
A. All franchises granted to franchisees pursuant to this chapter shall be nonexclusive and shall
be for a term to be specified by the City Council in the resolution granting a franchise hereunder
and in the franchise agreement between the City and the franchisee.
B. No provisions of this chapter shall be deemed to require restricting the number of franchises
to one or any particular number, and no provision of this chapter shall be deemed to require the
City Council to grant any franchise if the City Council determines that the grant of any such
franchise is not in the best interest of the City and the public.
12.14.050 Selection of franchisees.
A. The selection of the franchisees shall be done through a competitive selection process. Upon
any opening(s) on the rotation list, the City Manager shall issue a notice of request for
qualifications (RFQ) to solicit interested tow truck operators. The RFQ shall be posted on the
City’s website and posted on a website devoted to procurement services, bid and vendor
management such as Planetbids.com. Responses to the RFQ shall be due no earlier than 20
days following posting of the notice as required herein.
B. The Police Chief, in coordination with the City Manager or designee, shall evaluate the
qualifications of the tow truck operators responding to the RFQ. No later than 60 days after receipt
of the responses to the RFQ, the Police Chief shall submit to the City Council for consideration
the qualifications of the tow truck operator(s) that he/she deems most qualified together with a
franchise agreement as provided in LEMC 12.14.110.
C. With respect to the selection process as provided herein, the Police Chief shall determine the
number of franchisees needed to provide towing services to the Police Department. In
determining the required number of franchisees, the Police Chief may consider the following
factors:
1. The operational needs of the Police Department;
2. Population growth;
Ord. No. 2022- ______
Page 3 of 5
3. The number of currently authorized franchisees and their average response time;
4. Administrative burdens imposed by the number of franchisees to be included in a rotation list;
and
5. Such other reasonable factors as determined by the Police Chief.
12.14.060 Rotation system.
A. The tow truck operators who obtain a franchise pursuant to this chapter shall provide towing
service to the City pursuant to the rotation system established by the Police Chief.
12.14.070 Vehicle impound cost recovery fee.
A. The vehicle impound cost recovery fee (“VICR fee”) is equal to one hour of Police Officer time
at the current intermediate deputy rate in effect at the time of the release of the impounded vehicle.
This rate is annually reviewed, updated and approved by the Board of Supervisors for the County
of Riverside
B. The City hereby establishes a VICR fee, payable when a registered owner or a legal owner
seeks the release of a vehicle which the Police Department has impounded.
C. A registered owner who redeems an impounded vehicle or requests its release from a
franchisee’s storage facility shall first pay to the Police Department the VICR fee.
D. The Police Department may waive the VICR fee due to extenuating circumstances. It is not
the intention of the City nor the Police Department to penalize victims. Circumstances under which
the VICR fee may be waived include the impounding of recovered stolen or embezzled vehicles,
and vehicles impounded due to driver injury or incapacitation.
12.14.080 Franchise fees.
Any tow truck operator granted a franchise pursuant to the provisions of this chapter shall pay to
the City franchise charges and fees as may be determined by separate resolution of the City
Council. Such fee shall not exceed the City’s annual cost of administration and enforcement of
this chapter.
12.14.90 Franchise agreements.
All franchises granted by the City Council pursuant to this chapter shall be memorialized in a
written franchise agreement between the franchisee and the City and approved by resolution of
the City Council.
12.14.100 Additional services to be provided.
Franchisee shall provide to the City, at no charge, the services needed to facilitate the City’s
vehicle abatement program. Additionally, the franchisee will provide emergency response to aid
and service City and Police Department vehicles that are one ton or less, within a reasonable
radius no greater than one mile beyond the City’s boundaries, at no cost to the City or Police
Department.
12.14.110 Authority to maintain City towing operations and towing yard.
Nothing in this chapter shall be construed as restricting or prohibiting the City from conducting its
own towing operations or maintaining its own towing yard, either in lieu of, or in addition to, any
franchise awarded pursuant to this chapter.
Ord. No. 2022- ______
Page 4 of 5
Section 2. If any provision, clause, sentence or paragraph of this Ordinance or the
application thereof to any person or circumstance shall be held invalid, such invalidity shall not
affect the other provisions of this Ordinance and are hereby declared
to be severable.
Section 3. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st)
day after the date of adoption.
Section 4. The City Clerk shall certify to the passage of this Ordinance and shall cause
a synopsis of the same to be published according to law.
Passed and Adopted on this _____day of __________, 2022.
____________________________
Timothy J. Sheridan, Mayor
Attest:
Candice Alvarez, MMC
City Clerk
Ord. No. 2022- ______
Page 5 of 5
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, do hereby certify that the
foregoing Ordinance No. 2022-_____ was introduced at the Regular meeting of _____________,
2022, and adopted by the City Council of the City of Lake Elsinore at its Regular meeting of
________, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
I further certify that said Synopsis was published as required by law in a newspaper of general
circulation in the City of Lake Elsinore, California on the _____day of __________, 2022, and on
the ______day of _________, 2022.
RESOLUTION NO. 2022-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AWARDING TOW FRANCHISE AGREEMENTS
Whereas, pursuant to California Vehicle Code section 12110(b), the City has the authority
to grant franchises to companies that provide certain towing services and to collect a franchise
tow service fee to offset actual and reasonable costs incurred in connection with administering its
police towing program; and
Whereas, the City seeks to provide a fair and impartial means of distributing requests for
towing services among qualified franchises, and to ensure that such service is prompt and
reasonably priced, and in the best interest of the public as well as the interest of efficient policing
operations for the removal of such vehicles from public streets; and
Whereas, the selection of the franchisees has been done through a competitive process,
and the City issued a Request for Qualifications (RFQ) to solicit interested tow truck operators to
enter into a franchise agreement with the City to provide rotational police towing and storage
services, and
Whereas, the tow franchisees granted by the City Council shall pay to the City annual
franchise charges and fees as may be determined by resolution of City Council.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Pursuant to Lake Elsinore Municipal Code Chapter 12.14, the City hereby
awards Franchise Agreements to the following four (4) qualified tow truck companies for the Lake
Elsinore Police Department's rotational tow program: Steve's Towing, Brother's Towing, Rivera’s
Towing Inc., and Diamond Valley Towing Inc.
Section 2. Authorize the Mayor to execute the Franchise Agreements with the selected
franchisees, and subject to final review and approval by the City Attorney.
Section 3. This Resolution shall take effect immediately upon its adoption.
Section 4. The City Clerk shall certify to the adoption of this Resolution and enter it into
the book of original Resolutions.
Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore,
California, this 28 day of June 2022.
Timothy J. Sheridan
Mayor
Attest:
CC Reso No. 2022-___
Page 2 of 2
Candice Alvarez, MMC
City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that
Resolution No. 2022-____ was adopted by the City Council of the City of Lake Elsinore, California,
at the Regular meeting of June 28, 2022 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Candice Alvarez, MMC
City Clerk
RESOLUTION NO. 2022-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AMENDING TOW FRANCHISE FEES
Whereas, pursuant to California Vehicle Code section 12110(b), the City has the authority
to collect a franchise tow service fee to offset actual and reasonable costs incurred in connection
with administering its police towing program; and
Whereas, the City seeks to provide a fair and impartial means of distributing requests for
towing services among qualified franchises, and to ensure that such service is prompt and
reasonably priced, and in the best interest of the public as well as the interest of efficient policing
operations for the removal of such vehicles from public streets; and
Whereas, the City has reviewed the cost of administering and maintaining the police
towing program to establish the appropriate franchise fee.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. That the following franchise fee schedule is hereby established for selected
tow franchisees beginning July 1, 2022:
FY 2022/2023: $4,000 flat-fee per franchisee
FY 2023/2024: $4,500 flat-fee per franchisee
FY 2024/2025: $5,000 flat-fee per franchisee
FY 2025/2026: $5,500 flat-fee per franchisee
Section 2. This Resolution shall take effect immediately upon its adoption.
Section 3. The City Clerk shall certify to the adoption of this Resolution and enter it into
the book of original Resolutions.
Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore,
California, this 28 day of June 2022.
Timothy J. Sheridan
Mayor
Attest:
Candice Alvarez, MMC
City Clerk
CC Reso No. 2022-___
Page 2 of 2
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that
Resolution No. 2022-____ was adopted by the City Council of the City of Lake Elsinore, California,
at the Regular meeting of June 28, 2022 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Candice Alvarez, MMC
City Clerk
CITY TOW OPERATION FRANCHISE AGREEMENT
I. PARTIES AND EFFECTIVE DATE
This CITY TOW OPERATION FRANCHISE AGREEMENT (“Agreement”) is made
between the CITY OF LAKE ELSINORE, a California municipal corporation with offices
located at 130 South Main Street, Lake Elsinore, California 92530 (“City”), and
BROTHER’S TOWING INC., a Towing Company licensed to conduct business in the
State of California located at 420 N. Main St., Lake Elsinore, California 92530
(“Franchisee”). City and Franchisee are sometimes collectively referred to as “Parties.”
All references to City include its elected officials, officers, directors, employees, agents,
and volunteers. All references to Franchisee include its personnel, employees, agent s,
and contractors.
This Agreement is dated July 1, 2022 for reference purposes only. This
Agreement will not be effective until the date on which this Agreement has been executed
by the Parties authorized officials (“Effective Date”). This Agreement supersedes any prior
written agreement between the Parties.
II. RECITALS
A. Franchisee is a Towing Company.
B. Pursuant to California Vehicle Code section 12110(b), City has the authority
to grant franchises to companies that provide certain police towing services and to collect
a fee in connection therewith, provided the fee does not exceed the amount necessary to
reimburse the City for its actual and reasonable costs incurred in connection with
administering its police towing program.
C. On June 28, 2022, pursuant to Resolution No. 2022-__, the City granted to
Franchisee a non-exclusive franchise for City tow operations in accordance with Lake
Elsinore Municipal Code Chapter 12.14 (“Chapter 12.14”).
D. The purpose of this Agreement is to: (i) set forth the rights and
responsibilities of the Parties with respect to a non-exclusive franchise for towing
operations; (ii) prescribe the basic regulations for the operation of the City of Lake Elsinore
(“City”) and Lake Elsinore Police Department (“Police Department”) towing service in
emergency situations and in the removal of vehicles that are abandoned, involved in an
accident, or constitute an obstruction to traffic because of mechanical failure, and; (iii) in
accordance with Chapter 12.14, provide a fair and impartial means of distributing requests
for towing services among qualified franchises, and to ensure that such service is prompt
and reasonably priced, and in the best interests of the public as well as the interest of
efficient policing operations for the removal of such vehicles from public streets.
E. The City hereby engages Franchisee to provide Towing Services as
provided herein. Franchisee shall have, throughout the term of this Agreement, the
nonexclusive right to engage in the business of providing towing services to the City within
Brother’s Towing Agreement
2
the boundaries of City as they now exist, and within any territory the 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. Franchisee acknowledges that the
City places no maximum on the number of City-generated tows that Franchisee may be
required to provide in any time period, the City is not obligated to provide Franchisee with
a minimum number of City-generated tows during any time period.
III. TERMS
1.0 Municipal Code Incorporated. The terms of Chapter 12.14 are hereby
incorporated by this reference. To the extent that the provisions of this Agreement are
inconsistent with or vary from the requirements set forth in Chapter 12.14, the terms of
Chapter 12.14 shall control.
2.0 Franchise Fees.
2.1. Franchisee shall pay to the City franchise charges and fees as
determined by resolution of the City Council.
2.2. The City shall retain the right to impose alternative forms of taxes
and/or fees in the event that the franchise fees provided for in this Agreement are no
longer assessable due to a subsequent change in federal, state or local law.
3.0 Rotation system.
3.1 Franchisee shall provide towing service to the City pursuant to the
rotation system established by the Chief of the Police Department (the “Police Chief”).
All operators on the rotation list shall be required to be in compliance with Chapter 12.14.
The City may request services from a franchised tow truck operator who is not on -call or
who is not franchised under Chapter 12.14 in emergencies when the Police Chief or City
Manager deems an emergency to exist.
3.2 Franchisee may be required by the Police Chief to contract with an
approved telephone answering service at their sole cost and expense. If so required, this
answering service will be responsible for rotating the franchised tow truck operators
according to the rotation system established by the Police Chief.
4.0 Rates
4.1 Franchisee shall not charge rates greater than 115 percent of the
schedule of rates for towing established by the California Highway Patrol (CHP) for the
Riverside County Area. Such rates are determined by a competitive bid process and
updated annually by CHP. As they are updated, the new rates will become the rates
Brother’s Towing Agreement
3
applicable under this Agreement. If the state highway patrol does not update fees
yearly, the City may grant a yearly cost of living increase in accordance with the
Consumer Price Index (CPI) established by the United States Department of Labor
Bureau of Labor Statistics for the area of Los Angeles, Riverside, and Anaheim,
California, published in April of the year in which the increase is requested. Requests
for a CPI increase shall be made in writing to the Police Chief. The Police Chief shall
review the request and make recommendations to the City Council as to whether or not
increases should be granted.
4.2 The rate for towing shall be from portal to portal at a one hour
minimum. Charges in excess of one hour may be charged in fifteen minute incremen ts.
There shall be no additional charges for mileage, labor, etc. Secondary towing requests
by the customer may be negotiated by the official police towing service in accordance
with his/her private business practices.
4.3 Rates for service calls (out of gas, lock outs, etc.) shall be from portal
to the end of the service, and may be at the hourly rate with a thirty minute minimum.
Charges in excess of thirty minutes may be charged in fifteen minute increments.
4.4 The total fees added for afterhours release shall be no more than
one-half the hourly rate, and shall only be allowed if there is no person available at the
storage facility for release and a call back is required.
4.5 Storage fees shall be charged by calendar day except that vehicles
stored eight hours or less shall be charged no more than one day storage.
4.6 Maintain a sign listing the rates and charges for all towing and
storage services offered. The schedule of rates charged by Franchisee shall be posted in
the lobby of the tow truck companies. Additionally, rates shall be made available upon
demand to persons for who the tow services were provided or his/her agent.
4.7 When a stored vehicle is not released and Franchisee disposes of
the vehicle by a lien sale or junk slip, a copy of the lien sale document or junk slip will be
submitted to the Office by Franchisee in lieu of the payment receipt/invoice normally
received.
5.0 Conditions on Franchises. Pursuant to this Agreement, Franchisee shall:
A. Provide adequate storage for a minimum of twenty-five vehicles
within City boundaries in accordance with the following standards of
performance. If it is determined that twenty-five spaces is
inadequate, the Police Chief may raise the minimum standard of
spaces. This discretion applies to a specific Franchisee, since the
Brother’s Towing Agreement
4
actual capacity of each Franchisee will vary in accordance with the
volume of overall business associated with each Franchisee;
B. Vehicles are to be stored at properly zoned storage facilities within
City limits. The storage facility must be manned twenty-four (24)
hours a day if it is at a location other than the primary place of
business.
C. The view to all automobiles in the lot must be obstructed from the
roadway. No vehicles shall be left parked or stored on the public
streets at any time.
D. Each stored vehicle shall be a minimum of two and one-half feet from
any other vehicle, structure or object.
E. All stored vehicles shall be reasonably accessible to the vehicle’s
owner or vehicle’s owner/agent and the Police Department for
retrieval, inspection and/or identification. Vehicle owners shall be
able to retrieve a stored vehicle within a reasonable period not to
exceed one (1) hour.
F. At the request of the Police Department, the franchisee shall
waive/reimburse the registered/legal owner of any vehicle towed
pursuant to this section.
G. Franchisee is responsible for the reasonable care, custody, and
control of any property contained in towed or stored vehicles.
Vehicles stored outside shall be within a n enclosed area with a
minimum of a six-foot high fence topped with wire or some other
security device. Security shall be adequate to preclude theft,
vandalism, or damage by activity while in the Franchisee’s
establishment.
H. Respond to Police Department calls 24 hours a day, seven days a
week, within 20 minutes or another maximum response time as
established by the Police Chief. Franchisee will advise the Police
Department dispatch, at the time of notification, if they are either
unable to respond or unable to meet the maximum response time.
If, after accepting the call, the Franchisee is unable to respond or will
be delayed in responding, the Franchisee shall immediately notify
Central Dispatch. In the event of a delay, the Police Department
has the authority to elect to contact another franchisee for service.
Franchisee shall not assign calls to other franchises and shall not
Brother’s Towing Agreement
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respond to a Police Department call assigned to another Franchisee
unless requested to do so by the Police Department. There may be
times when a driver, who was not called to a scene, comes upon a
collision scene where a vehicle or vehicles are blocking a roadway
and a Police Officer requests his/her assistance in clearing the
roadway. In such a case, the driver may be requested to move the
vehicle to a safe location, as directed by the Officer, and leave it.
There shall be no charge for this assistance, an d the assistance
provided shall not change the Franchisees’ place in the rotation.
I. The Police Department may, at is sole discretion, contact the next
tow operator on the rotation list when the Franchisee:
1. Fails to answer the phone;
2. Is unable to provide a service;
3. Is unable to respond; or
4. Is canceled due to excessive responsive time.
J. Post a tag on the windshield of all cars ordered impounded by the
Police Department. In addition to posting a tag on the windshield of
the car, Franchisee may also affix temporary markings on the car
windshield.
K. Not release any vehicles ordered towed by the Police Department
unless released at the direction of the Police Department. The Police
Department will provide Franchisee with appropriate regulations
including updates to these regulations as they occur.
L. When called from the rotation list by the Police Department, respond
to the call and pick up all vehicles that have been involved in an
accident or a traffic violation, unless the vehicles are needed for
criminal evidence or the owner or someone designated by the owner
is present and is capable of removing a vehicle or calling a tow
company of his or her choice to remove a vehicle; provided the street
can be cleared for safe public use with reasonable dispatch.
Additionally, the tow operator will provide cleanup services at traffic
collision sites excluding biohazard materials.
M. Furnish each owner of an automobile impounded by the tow truck
operator with a fully itemized billing.
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N. Record their time “in” and their time “out” on every tow truck
assignment. Such records shall be available and open to Police
Department examination.
O. Not respond to any rotational call with a tow truck that has not been
inspected by the California Highway Patrol. All new tow truck
vehicles shall be inspected before being placed into service. The
designated agency (California Highway Patrol) may conduct
inspections without notice during normal business hours.
P. Have a schedule of rates available upon demand in all vehicles at all
times.
Q. Have an attendant on call capable of responding to Police
Department requests for towing services, twenty-four hours a day,
seven days a week. An answering service may fulfill this
requirement.
R. Maintain minimum operating hours for storage facilities of Monday
through Friday, 8:00 a.m. to 5:00 p.m., except holidays.
S. The Police Department reserves the right to inspect all drivers,
vehicles and their mechanical condition, equipment and yards. The
Police Department also reserves the right to require that all towing
vehicles be inspected by an automotive professional certified by the
State of California Bureau of Automotive Repair, and selected by the
Police Department. All vehicle inspection fees shall be borne solely
by Franchisee. Franchisee is responsible for arranging an annual
vehicle inspection to the extent required by the California Highway
Patrol. Any towing vehicle that fails an inspection shall not be used
to provide towing service in the City, until it is repaired and passes
reinspection.
T. Obtain and produce upon request proof of Workers’ compensation,
Commercial liability and Commercial automobile/truck insurance of
not less than $1,000,000 combined single limits for each type. Said
policies shall be endorsed to state that coverage shall not be
reduced, suspended, voided or canceled by either party during the
term of the franchise.
U. All vehicles stored or impounded as a result of towing services
requested by the Police Department or City, shall be made available
to the owner of these vehicles or his representative, an authorized
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insurance agent, insurance adjustor, or body shop or car dealer, for
the purpose of estimation or appraising damages, except vehicles
with a Police Hold/Impound.
V. All vehicles stored or impounded as a result of tow services regulated
by the City or Police Department shall be towed directly to an official
storage facility unless the Police Department or other person legally
in charge of the vehicle requests that it be taken to some other
location.
W. Upon approval of the Police Department, Franchisee may release
personal property from an impound vehicle at the request of the
vehicle owner or their agent. There shall be no charge for the
release of personal property during normal business hours.
Franchisee may charge an afterhours release fee for property
released after normal business hours.
X. Equip all towing vehicles with the auxiliary equipment required for
vehicles towing for the California Highway Patrol, in accordance with
Attachment “C” of the State of California, Department of California
Highway Patrol Tow Service Agreement (CHP 234 (REV. 1-98) OPI
061), or any successor Tow Service Agreement.
Y. Comply with all applicable federal, state and local regulations for
providing towing service.
Z. Submit a report regarding response time statistics for all franchise
tows if requested to do so by the Police Department along with other
related information as may be requested.
AA. While providing Towing Services pursuant to this Agreement,
Franchisee and/or its employees or agents shall not engage in any
misconduct, including, but not limited to, any of the following:
1. Rude, offensive or discourteous behavior;
2. Lack of service, selective service, refusal to provide service
which the Franchisee is capable of performing;
3. Discrimination based upon on creed, sex, race, national
origin, or any other classification prohibited by state or federal
law;
4. Unsafe or unlawful driving practices; or
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5. Exhibiting any objective symptoms of drug or alcohol use
including, but not limited to, arriving at a tow scene with
alcohol on their breath.
BB. Take prompt and appropriate steps to resolve any third party
complaints arising from or related to services provided pursuant to
the Agreement.
6.0 Tow Truck Classifications
6.1 Franchisee shall equip and maintain a minimum of three tow truck(s),
with a total vehicle capacity of four vehicles. Tow trucks must be in like-new appearance
and tow operators shall equip and maintain tow trucks covered under this Agreement
within the provisions set forth in the California Vehicle Code, Title 13 of the California
Code of Regulations, the specifications contained herein, and in a manner consistent with
industry standards and practices.
6.2 The four classes of tow trucks covered by this Agreement include:
A. Class A - Light Duty. A tow truck with a manufacturer’s Gross
Vehicle Weight Rating of 10,000 to 19,500 pounds with wheel
lift capability, and may have a car carrier. A tow truck
company who had a car carrier may be exempted from the
wheel lift capability requirements. However, the car carrier
must an additional unit.
B. Class B-Medium Duty. A tow truck with a manufacturer’s
Gross Vehicle Weight Rating of 19,501 to 33,000 pounds.
The truck shall be capable of providing air to the towed
vehicle’s brakes. A tow truck company may also have a car
carrier. However, the carrier must be an additional unit.
C. Class C-Heavy Duty. A tow truck with a manufacturer’s Gross
Vehicle Weight Rating of at least 33,000 pounds. The truck
shall be equipped with air brakes and must be capable of
providing air to the towed vehicle’s brakes.
D. Class D-Super Heavy Duty. A tow truck with a manufacturer’s
Gross Vehicle Weight Rating of at least 50,000 pounds. The
truck shall be equipped with air brakes and must be capable
of providing air to the towed vehicle’s brakes.
Brother’s Towing Agreement
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6.3 To properly and safely tow and service the wide variety of vehicles
being operated on the highway, a towing procedure may require the use of auxiliary
equipment specifically designed for the purpose. The specif ications required by the
California Highway Patrol will be required for all classes of equipment.
7.0 Transfer or Assignment of Franchise. Franchisee shall not sell,
transfer, lease, assign, sublet, mortgage or dispose of in whole or in part, either by f orced
or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, the franchise
or any rights or privileges therein granted, without the prior written consent of the City
Manager. The City ‘s approval of a transfer or assignment of a franchise granted pursuant
to this Agreement shall be conditioned upon Franchisee’s sale or disposal of all ownership
rights in the franchised tow truck business. If Franchisee desires to transfer or assign its
franchise tow truck business because Franchisee intends to sell or dispose of all interests
in the franchise tow truck business, the Franchise shall make a written request to the City
Manager for a transfer or assignment of the franchise at least 120 calendar days before
the requested effective transfer or assignment date. The Police Department shall
investigate the proposed transferee or assignee and determine whether they are qualified
to serve as a tow truck operator franchisee pursuant to the criteria and requirements set
forth in the City’s Municipal Code. If the Police Department determines that the proposed
transferee or assignee is qualified to be a tow truck operator franchise, the Police
Department shall recommend that the City approve the transfer or assignment. Any
attempt to sell, transfer, lease, assign or otherwise dispose of the franchise without the
prior consent of the City Manager shall be null and void.
8.0 Term. The term of this Agreement shall be for a period of four (4) years
from the Effective Date (the “Initial Term”).
9.0 Agreement Extension. This Agreement shall automatically renew at the
sole and absolute discretion of the City for two (2) additional years unless written notice
of cancellation has been provided to the Franchisee by the City at least six (6) months
prior to the expiration of the Initial Term.
10.0 Cancellation, Suspension and Revocation of Franchise.
10.1 The City and Police Department reserves the right to cancel this
Agreement for any reason, and in its sole and absolute discretion, by providing
Franchisee with thirty (30) days written notice of cancellation. The City also reserves
the right to revoke or suspend the franchise granted pursuant to this Agreement and to
rescind all rights and privileges associated with it at any time if:
A. Franchisee defaults in the performance of its material
obligations under this Agreement and fails to cure such
default within ten calendar days after receipt of written notice
Brother’s Towing Agreement
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of the default from the City and a reasonable opportunity to
cure the default in accordance with subsection (b)(1). This
includes nonpayment of any City business license or any
other fees provided in this Agreement; or
B. Franchisee is habitually late, habitually fails to respond,
frequently make notification of an inability or unwillingness to
respond, or selectively make notifications of an inability or
unwillingness to respond to certain tows; or
C. Franchisee fails to provide or maintain in full force and effect
the insurance coverage as required by this Agreement; or
D. Franchisee violates any order or ruling of any regulatory body
having jurisdiction over Franchisee relative to Franchisee ’s
tow truck business, unless such order or ruling is being
contested by Franchisee by appropriate proceedings
conducted in good faith. This includes failure to comply with
the Lake Elsinore Municipal Code; or
E. Franchisee practices any fraud or deceit upon the City or upon
persons to whom it provides tow truck service as determined
by a court of law; or
F. Franchisee becomes insolvent, unable or unwilling to pay its
debts and obligations, or is adjudged to be bankrupt. The
City’s revocation of this Agreement shall in no way affect any
right of the City to pursue any remedy under the franchise or
any other provision of law; or
G. Franchisee breaches any rule, regulation or condition as
provided in this Agreement; or
H. Franchises fails to maintain a satisfactory level of service to
the Police Department, such as a maintaining a high standard
of customer relations and professionalism; or
I. Violation of any federal, state or local law by the contract
holder, franchisee or any person having any ownership
interest in the official police tow service or any employee of
the official police tow service.
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10.2 Prior to revoking or suspending a franchise granted under this
Agreement, City or the Police Department shall give Franchisee notice and an opportunity
to be heard on the matter, in accordance with the following procedures:
A. The City shall first notify Franchisee of the violation in writing
by personal delivery or registered or certified mail, and
demand that Franchisee cure the default within a reasonable
time, which shall not be less than ten days in the case of
Franchisee’s failure to pay any sum or other amount due to
the City under this Agreement with the City and 30 days in all
other cases. If Franchisee fails to correct the violation within
the time prescribed or if Franchisee fails to commence
correction of the violation within the time prescribed, the City
shall give Franchisee fourteen (14) calendar days’ written
notice of a hearing to be held before the City Manager or his
designee (“Hearing Officer”). The written notice shall specify
the alleged violations supporting the recommendation for
revocation of the franchise.
B. The Hearing Officer shall hear and consider all relevant
evidence submitted by staff and Franchisee or its agent or
representative. The Hearing Officer shall not be limited by
the technical rules of evidence, but may consider any
evidence upon which a prudent person might rely in arranging
his or her own affairs. The Hearing Officer may appear in
person at the hearing or present a written statement in time
for consideration at the hearing. If the Hearing Officer finds
that Franchisee has committed a material breach under this
Agreement and that Franchisee has not corrected the
violation or has not diligently commenced correction of the
violation after receiving proper notice in accordance with this
Agreement, the Hearing Officer may revoke the franchise.
C. The Hearing Officer may impose such conditions and take
such other action as he or she deems appropriate under the
circumstances to carry out the purpose of this Agreement. If
an interested party makes a written presentation to the
Hearing Officer but does not appear, he or she shall be
notified in writing of the decision.
D. Notwithstanding the City’s right to revoke or suspend a
franchise, the Police Chief shall have the right to suspend, for
a period not to exceed ninety (90) days, any franchise granted
Brother’s Towing Agreement
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pursuant to this Agreement, and to rescind all rights and
privileges associated with it during the suspension period, if
the Police Chief has reasonable cause to believe that
Franchisee has engaged in fraudulent conduct with respect to
the performance of the towing services as provided herein or
that Franchisee’s continued performance of towing services
as provided herein constitutes a potential endangerment to
the health or safety of the public.
E. The business owner may appeal the decision of the Hearing
Officer to the City Council within 15 days following service of
the Hearing Officer’s decision.
11.0 Liability Insurance
11.1 Coverage. Throughout the term of this Agreement, Franchisee shall
pay for and maintain in full force and effect all policies of insurance required hereunder
with an insurance company(ies) either (i) admitted by the California Insur ance
Commissioner to do business in the State of California and rated not less than “A-VII” in
Best’s Insurance Rating Guide, or (ii) authorized by City’s Risk Manager. The following
policies of insurance are required:
A. Commercial General Liability I nsurance which shall be on
the most current version of Insurance Services Office (ISO)
Commercial General Liability Coverage F01m CG 00 01
and include insurance for “bodily injury,” “property damage”
and “personal and advertising injury” with coverage for
premises and operations, products and completed
operations, and contractual liability (including, without
limitation, indemnity obligations under the Agreement) with
limits of liability of not less than $1,000,000 per occurrence
for bodily injury and property damage, $1,000,000 per
occurrence for personal and advertising injury and
$2,000,000 aggregate for products and completed
operations and $2,000,000 general aggregate.
B. Garagekeepers Legal Liability Insurance which shall
include coverage for vehicles in the care, custody, and
control of the Franchisee with limits of liability of not less
than $500,000 per occurrence for property damage.
C. Commercial Automobile Liability Insurance which shall be
on the most current version of Insurance Service Office
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(ISO) Business Auto Coverage Form CA 00 01, and include
coverage for all owned, hired, and non-owned automobiles
or other licensed vehicles (Code 1- Any Auto) with limits of
not less than $1,000,000 per accident for bodily injury and
property damage.
D. On-Hook/Cargo I nsurance which shall include coverage for
vehicles in tow with limits of liability based on the size of
the tow truck, which are as follows:
1. Class A tow truck $50,000
2. Class B tow truck $100,000
3. Class C tow truck $200,000
4. Class D tow truck $250,000
E. Workers’ Compensation Insurance as required under the
California Labor Code.
F. Employers’ Liability Insurance with minimum limits of
$1,000,000 each accident, $1,000,000 disease policy limit
and $1,000,000 disease each employee.
11.2 Policy Endorsement. Every policy and every certificate of motor
vehicle liability insurance coverage filed pursuant to the provisions of this Agreement shall
contain the following endorsements:
A. It is hereby understood and agreed that, notwithstanding
expressions or provisions inconsistent with, or contrary
thereto in this policy contained, the policy is expressly issued
to cover a motor vehicle regulated by the provisions of
Chapter 12.14 of the City of Lake Elsinore Municipal Code.
This policy shall inure to, and be for the benefit and protection
of, each person who shall sustain any damages or injury, or
to the heirs, personal representatives, administrators,
executors or assigns of any such person who may be so
damaged or injured, to suffer death by reason of the operation
of a motor vehicle covered by this policy or from the defective
conditions thereof. Liability under this policy shall be in no
manner abrogated or abated by the death of the tortfeasor or
the insured.
Brother’s Towing Agreement
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B. This is a continuing liability for claims incurred up to the full
amount hereof, notwithstanding any action or recovery
thereon.
C. No cancellation or reduction of coverage of this policy for any
reason whatsoever shall become effective until the expiration
of thirty days after written notice of such cancellation or
reduction in coverage shall have been given in writing to the
City’s Risk Manager. The thirty day period shall commence
upon the date the notice is actually received in the office of
the City’s Risk Manager if personally delivered, or, if given by
registered United States mail with return receipt requested, in
the second business day after the notice is deposited in the
United States mail, postage prepaid or on the date of receipt
shown on the return receipt, whichever is later.
D. The City of Lake Elsinore and Lake Elsinore Police
Department shall be listed as “Also Insured.”
12.0 Additional Services to be Provided. Franchisee shall provide to the
City, at no charge, the services needed to facilitate the City’s Vehicle Abatement Program.
Additionally, the Franchisee will provide emergency response to aid and service City and
Police Department vehicles that are one ton or less, within a reasonable radius of the
City, at no cost to the City or Police Department.
13.0 Additional Franchises. The franchise granted herein shall be not be
exclusive; however, notwithstanding the foregoing, any new tow franchise granted by the
City following the Effective Dates shall, during the Initial Term, be subject to substantially
the same terms and conditions as set forth herein.
14.0 Indemnity. Franchisee agrees to protect, indemnify, defend and hold
harmless the City and the Police Department from all claims, demands or liability arising
out of or encountered in connection with its agreement with the City or the performance
of work in preparation for the towing operation, or claims, demands and liability occurring
during the towing and subsequent storage and maintenance activities whether such
claims, demands or liability are caused by the tow service or its employees or agents.
15.0 Severability. If any provision, clause, sentence or paragraph of this
Agreement or the application thereof to any person or circumstance shall be held invalid,
such invalidity shall not affect the other provisions of this Agreement and are hereby
declared to be severable.
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CITY OF LAKE ELSINORE, a municipal
corporation
Dated:______________________ By:___________________________________
Mayor
ATTEST:
__________________________________
City Clerk
APPROVED AS TO FORM:
__________________________________
City Attorney
BROTHER’S TOWING INC.
Dated:______________________ By:__________________________________
Its:___________________________________
CITY TOW OPERATION FRANCHISE AGREEMENT
I. PARTIES AND EFFECTIVE DATE
This CITY TOW OPERATION FRANCHISE AGREEMENT (“Agreement”) is made
between the CITY OF LAKE ELSINORE, a California municipal corporation with offices
located at 130 South Main Street, Lake Elsinore, California 92530 (“City”), and DIAMOND
VALLEY TOWING, a Towing Company licensed to conduct business in the State of
California located at 424 ½ Main St., Lake Elsinore, California 92530 (“Franchisee”). City
and Franchisee are sometimes collectively referred to as “Parties.” All references to City
include its elected officials, officers, directors, employees, agents, and volunteers. All
references to Franchisee include its personnel, employees, agent s, and contractors.
This Agreement is dated July 1, 2022 for reference purposes only. This
Agreement will not be effective until the date on which this Agreement has been executed
by the Parties authorized officials (“Effective Date”). This Agreement supersedes any prior
written agreement between the Parties.
II. RECITALS
A. Franchisee is a Towing Company.
B. Pursuant to California Vehicle Code section 12110(b), City has the authority
to grant franchises to companies that provide certain police towing services and to collect
a fee in connection therewith, provided the fee does not exceed the amount necessary to
reimburse the City for its actual and reasonable costs incurred in connection with
administering its police towing program.
C. On June 28, 2022, pursuant to Resolution No. 2022-__, the City granted to
Franchisee a non-exclusive franchise for City tow operations in accordance with Lake
Elsinore Municipal Code Chapter 12.14 (“Chapter 12.14”).
D. The purpose of this Agreement is to: (i) set forth the rights and
responsibilities of the Parties with respect to a non-exclusive franchise for towing
operations; (ii) prescribe the basic regulations for the operation of the City of Lake Elsinore
(“City”) and Lake Elsinore Police Department (“Police Department”) towing service in
emergency situations and in the removal of vehicles that are abandoned, involved in an
accident, or constitute an obstruction to traffic because of mechanical failure, and; (iii) in
accordance with Chapter 12.14, provide a fair and impartial means of distributing requests
for towing services among qualified franchises, and to ensure that such service is prompt
and reasonably priced, and in the best interests of the public as well as the interest of
efficient policing operations for the removal of such vehicles from public streets.
E. The City hereby engages Franchisee to provide Towing Services as
provided herein. Franchisee shall have, throughout the term of this Agreement, the
nonexclusive right to engage in the business of providing towing services to the City within
the boundaries of City as they now exist, and within any territory the City hereafter
annexes, except to the extent that towing services within such territory annexed would be
Diamond Valley Towing Agreement
2
unlawful or violate the legal rights of another person. Franchisee acknowledges that the
City places no maximum on the number of City-generated tows that Franchisee may be
required to provide in any time period, the City is not obligated to provide Franchisee with
a minimum number of City-generated tows during any time period.
III. TERMS
1.0 Municipal Code Incorporated. The terms of Chapter 12.14 are hereby
incorporated by this reference. To the extent that the provisions of this Agreement are
inconsistent with or vary from the requirements set forth in Chapter 12.14, the terms of
Chapter 12.14 shall control.
2.0 Franchise Fees.
2.1. Franchisee shall pay to the City franchise charges and fees as
determined by resolution of the City Council.
2.2. The City shall retain the right to impose alternative forms of taxes
and/or fees in the event that the franchise fees provided for in this Agreement are no
longer assessable due to a subsequent change in federal, state or local law.
3.0 Rotation system.
3.1 Franchisee shall provide towing service to the City pursuant to the
rotation system established by the Chief of the Police Department (the “Police Chief”).
All operators on the rotation list shall be required to be in compliance with Chapter 12.14.
The City may request services from a franchised tow truck operator who is not on -call or
who is not franchised under Chapter 12.14 in emergencies when the Police Chief or City
Manager deems an emergency to exist.
3.2 Franchisee may be required by the Police Chief to contract with an
approved telephone answering service at their sole cost and expense. If so required, this
answering service will be responsible for rotating the franchised tow truck operators
according to the rotation system established by the Police Chief.
4.0 Rates
4.1 Franchisee shall not charge rates greater than 115 percent of the
schedule of rates for towing established by the California Highway Patrol (CHP) for the
Riverside County Area. Such rates are determined by a competitive bid process and
updated annually by CHP. As they are updated, the new rates will become the rates
applicable under this Agreement. If the state highway patrol does not update fees
yearly, the City may grant a yearly cost of living increase in accordance with the
Diamond Valley Towing Agreement
3
Consumer Price Index (CPI) established by the United States Department of Labor
Bureau of Labor Statistics for the area of Los Angeles, Riverside, and Anaheim,
California, published in April of the year in which the increase is requested. Requests
for a CPI increase shall be made in writing to the Police Chief. The Police Chief shall
review the request and make recommendations to the City Council as to whether or not
increases should be granted.
4.2 The rate for towing shall be from portal to portal at a one hour
minimum. Charges in excess of one hour may be charged in fifteen minute increments.
There shall be no additional charges for mileage, labor, etc. Secondary towing requests
by the customer may be negotiated by the official police towing service in accordance
with his/her private business practices.
4.3 Rates for service calls (out of gas, lock outs, etc.) shall be from portal
to the end of the service, and may be at the hourly rate with a thirty minute minimum.
Charges in excess of thirty minutes may be charged in fifteen minute increments.
4.4 The total fees added for afterhours release shall be no more than
one-half the hourly rate, and shall only be allowed if there is no person available at the
storage facility for release and a call back is required.
4.5 Storage fees shall be charged by calendar day except that vehicles
stored eight hours or less shall be charged no more than one day storage.
4.6 Maintain a sign listing the rates and charges for all towing and
storage services offered. The schedule of rates charged by Franchisee shall be posted in
the lobby of the tow truck companies. Additionally, rates shall be made available upon
demand to persons for who the tow services were provided or his/her agent.
4.7 When a stored vehicle is not released and Franchisee disposes of
the vehicle by a lien sale or junk slip, a copy of the lien sale document or junk slip will be
submitted to the Office by Franchisee in lieu of the payment receipt/invoice normally
received.
5.0 Conditions on Franchises. Pursuant to this Agreement, Franchisee shall:
A. Provide adequate storage for a minimum of twenty-five vehicles
within City boundaries in accordance with the following standards of
performance. If it is determined that twenty-five spaces is
inadequate, the Police Chief may raise the minimum standard of
spaces. This discretion applies to a specific Franchisee, since the
actual capacity of each Franchisee will vary in accordance with the
volume of overall business associated with each Franchisee;
Diamond Valley Towing Agreement
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B. Vehicles are to be stored at properly zoned storage facilities within
City limits. The storage facility must be manned twenty-four (24)
hours a day if it is at a location other than the primary place of
business.
C. The view to all automobiles in the lot must be obstructed from the
roadway. No vehicles shall be left parked or stored on the public
streets at any time.
D. Each stored vehicle shall be a minimum of two and one-half feet from
any other vehicle, structure or object.
E. All stored vehicles shall be reasonably accessible to the vehicle ’s
owner or vehicle’s owner/agent and the Police Department for
retrieval, inspection and/or identification. Vehicle owners shall be
able to retrieve a stored vehicle within a reasonable period not to
exceed one (1) hour.
F. At the request of the Police Department, the franchisee shall
waive/reimburse the registered/legal owner of any vehicle towed
pursuant to this section.
G. Franchisee is responsible for the reasonable care, custody, and
control of any property contained in towed or stored vehicles.
Vehicles stored outside shall be within a n enclosed area with a
minimum of a six-foot high fence topped with wire or some other
security device. Security shall be adequate to preclude theft,
vandalism, or damage by activity while in the Franchisee ’s
establishment.
H. Respond to Police Department calls 24 hours a day, seven days a
week, within 20 minutes or another maximum response time as
established by the Police Chief. Franchisee will advise the Police
Department dispatch, at the time of notification, if they are either
unable to respond or unable to meet the maximum response time.
If, after accepting the call, the Franchisee is unable to respond or will
be delayed in responding, the Franchisee shall immediately notify
Central Dispatch. In the event of a delay, the Police Department
has the authority to elect to contact another franchisee for service.
Franchisee shall not assign calls to other franchises and shall not
respond to a Police Department call assigned to another Franchisee
unless requested to do so by the Police Department. There may be
Diamond Valley Towing Agreement
5
times when a driver, who was not called to a scene, comes upon a
collision scene where a vehicle or vehicles are blocking a roadway
and a Police Officer requests his/her assistance in clearing the
roadway. In such a case, the driver may be requested to move the
vehicle to a safe location, as directed by the Officer, and leave it.
There shall be no charge for this assistance, and the assistance
provided shall not change the Franchisees’ place in the rotation.
I. The Police Department may, at is sole discretion, contact the next
tow operator on the rotation list when the Franchisee:
1. Fails to answer the phone;
2. Is unable to provide a service;
3. Is unable to respond; or
4. Is canceled due to excessive responsive time.
J. Post a tag on the windshield of all cars ordered impounded by the
Police Department. In addition to posting a tag on the windshield of
the car, Franchisee may also affix temporary markings on the car
windshield.
K. Not release any vehicles ordered towed by the Police Department
unless released at the direction of the Police Department. The Police
Department will provide Franchisee with appropriate regulations
including updates to these regulations as they occur.
L. When called from the rotation list by the Police Department, respond
to the call and pick up all vehicles that have been involved in an
accident or a traffic violation, unless the vehicles are needed for
criminal evidence or the owner or someone designated by the owner
is present and is capable of removing a vehicle or calling a tow
company of his or her choice to remove a vehicle; provided the street
can be cleared for safe public use with reasonable dispatch.
Additionally, the tow operator will provide cleanup services at traffic
collision sites excluding biohazard materials.
M. Furnish each owner of an automobile impounded by the tow truck
operator with a fully itemized billing.
N. Record their time “in” and their time “out” on every tow truck
assignment. Such records shall be available and open to Police
Department examination.
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O. Not respond to any rotational call with a tow truck that has not been
inspected by the California Highway Patrol. All new tow truck
vehicles shall be inspected before being placed into service. The
designated agency (California Highway Patrol) may conduct
inspections without notice during normal business hours.
P. Have a schedule of rates available upon demand in all vehicles at all
times.
Q. Have an attendant on call capable of responding to Police
Department requests for towing services, twenty-four hours a day,
seven days a week. An answering service may fulfill this
requirement.
R. Maintain minimum operating hours for storage facilities of Monday
through Friday, 8:00 a.m. to 5:00 p.m., except holidays.
S. The Police Department reserves the right to inspect all drivers,
vehicles and their mechanical condition, equipment and yards. The
Police Department also reserves the right to require that all towing
vehicles be inspected by an automotive professional certified by the
State of California Bureau of Automotive Repair, and selected by the
Police Department. All vehicle inspection fees shall be borne solely
by Franchisee. Franchisee is responsible for arranging an annual
vehicle inspection to the extent required by the California Highway
Patrol. Any towing vehicle that fails an inspection shall not be used
to provide towing service in the City, until it is repaired and passes
reinspection.
T. Obtain and produce upon request proof of Workers’ compensation,
Commercial liability and Commercial automobile/truck insurance of
not less than $1,000,000 combined single limits for each type. Said
policies shall be endorsed to state that coverage shall not be
reduced, suspended, voided or canceled by either party during th e
term of the franchise.
U. All vehicles stored or impounded as a result of towing services
requested by the Police Department or City, shall be made available
to the owner of these vehicles or his representative, an authorized
insurance agent, insurance adjustor, or body shop or car dealer, for
the purpose of estimation or appraising damages, except vehicles
with a Police Hold/Impound.
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V. All vehicles stored or impounded as a result of tow services regulated
by the City or Police Department shall be towed directly to an official
storage facility unless the Police Department or other person legally
in charge of the vehicle requests that it be taken to some other
location.
W. Upon approval of the Police Department, Franchisee may release
personal property from an impound vehicle at the request of the
vehicle owner or their agent. There shall be no charge for the
release of personal property during normal business hours.
Franchisee may charge an afterhours release fee for property
released after normal business hours.
X. Equip all towing vehicles with the auxiliary equipment required for
vehicles towing for the California Highway Patrol, in accordance with
Attachment “C” of the State of California, Department of California
Highway Patrol Tow Service Agreement (CHP 234 (REV. 1-98) OPI
061), or any successor Tow Service Agreement.
Y. Comply with all applicable federal, state and local regulations for
providing towing service.
Z. Submit a report regarding response time statistics for all franchise
tows if requested to do so by the Police Department along with other
related information as may be requested.
AA. While providing Towing Services pursuant to this Agreement,
Franchisee and/or its employees or agents shall not engage in any
misconduct, including, but not limited to, any of the following:
1. Rude, offensive or discourteous behavior;
2. Lack of service, selective service, refusal to provide service
which the Franchisee is capable of performing;
3. Discrimination based upon on creed, sex, race, national
origin, or any other classification prohibited by state or federal
law;
4. Unsafe or unlawful driving practices; or
5. Exhibiting any objective symptoms of drug or alcohol use
including, but not limited to, arriving at a tow scene with
alcohol on their breath.
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8
BB. Take prompt and appropriate steps to resolve any third party
complaints arising from or related to services provided pursuant to
the Agreement.
6.0 Tow Truck Classifications
6.1 Franchisee shall equip and maintain a minimum of three tow truck(s),
with a total vehicle capacity of four vehicles. Tow trucks must be in like-new appearance
and tow operators shall equip and maintain tow trucks covered under this Agreement
within the provisions set forth in the California Vehicle Code, Title 13 of the California
Code of Regulations, the specifications contained herein, and in a manner consistent with
industry standards and practices.
6.2 The four classes of tow trucks covered by this Agreement include:
A. Class A - Light Duty. A tow truck with a manufacturer’s Gross
Vehicle Weight Rating of 10,000 to 19,500 pounds with wheel
lift capability, and may have a car carrier. A tow truck
company who had a car carrier may be exempted from the
wheel lift capability requirements. However, the car carrier
must an additional unit.
B. Class B-Medium Duty. A tow truck with a manufacturer’s
Gross Vehicle Weight Rating of 19,501 to 33,000 pounds.
The truck shall be capable of providing air to the towed
vehicle’s brakes. A tow truck company may also have a car
carrier. However, the carrier must be an additional unit.
C. Class C-Heavy Duty. A tow truck with a manufacturer’s Gross
Vehicle Weight Rating of at least 33,000 pounds. The truck
shall be equipped with air brakes and must be capable of
providing air to the towed vehicle’s brakes.
D. Class D-Super Heavy Duty. A tow truck with a manufacturer’s
Gross Vehicle W eight Rating of at least 50,000 pounds. The
truck shall be equipped with air brakes and must be capable
of providing air to the towed vehicle’s brakes.
6.3 To properly and safely tow and service the wide variety of vehicles
being operated on the highwa y, a towing procedure may require the use of auxiliary
equipment specifically designed for the purpose. The specifications required by the
California Highway Patrol will be required for all classes of equipment.
Diamond Valley Towing Agreement
9
7.0 Transfer or Assignment of Franchise. 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, the franchise
or any rights or privileges therein granted, without the prior written consent of the City
Manager. The City ‘s approval of a transfer or assignment of a franchise granted pursuant
to this Agreement shall be conditioned upon Franchisee’s sale or disposal of all ownership
rights in the franchised tow truck business. If Franchisee desires to transfer or assign its
franchise tow truck business because Franchisee intends to sell or dispose of all interests
in the franchise tow truck business, the Franchise shall make a written request to the City
Manager for a transfer or assignment of the franchise at least 120 calendar days before
the requested effective transfer or assignment date. The Police Department shall
investigate the proposed transferee or assignee and determine whether they are qualified
to serve as a tow truck operator franchisee pursuant to the criteria and requirements set
forth in the City’s Municipal Code. If the Police Department determines that the proposed
transferee or assignee is qualified to be a tow truck operator franchise, the Police
Department shall recommend that the City approve the transfer or assignment. Any
attempt to sell, transfer, lease, assign or otherwise dispose of the franchise without the
prior consent of the City Manager shall be null and void.
8.0 Term. The term of this Agreement shall be for a period of four (4) years
from the Effective Date (the “Initial Term”).
9.0 Agreement Extension. This Agreement shall automatically renew at the
sole and absolute discretion of the City for two (2) additional years unless written notice
of cancellation has been provided to the Franchisee by the City at least six (6) months
prior to the expiration of the Initial Term.
10.0 Cancellation, Suspension and Revocation of Franchise.
10.1 The City and Police Department reserves the right to cancel this
Agreement for any reason, and in its sole and absolute discretion, by providing
Franchisee with thirty (30) days written notice of cancellation. The City also reserves
the right to revoke or suspend the franchise granted pursuant to this Agreement and to
rescind all rights and privileges associated with it at any time if:
A. Franchisee defaults in the performance of its material
obligations under this Agreement and fails to cure such
default within ten calendar days after receipt of written notice
of the default from the City and a reasonable opportunity to
cure the default in accordance with subsection (b)(1). This
includes nonpayment of any City business license or any
other fees provided in this Agreement; or
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10
B. Franchisee is habitually late, habitually fails to respond,
frequently make notification of an inability or unwillingness to
respond, or selectively make notifications of an inability or
unwillingness to respond to certain tows; or
C. Franchisee fails to provide or maintain in full force and effect
the insurance coverage as required by this Agreement; or
D. Franchisee violates any order or ruling of any regulatory body
having jurisdiction over Franchisee relative to Franchisee ’s
tow truck business, unless such order or ruling is being
contested by Franchisee by appropriate proceedings
conducted in good faith. This includes failure to comply with
the Lake Elsinore Municipal Code; or
E. Franchisee practices any fraud or deceit upon the City or upon
persons to whom it provides tow truck service as determined
by a court of law; or
F. Franchisee becomes insolvent, unable or unwilling to pay its
debts and obligations, or is adjudged to be bankrupt. The
City’s revocation of this Agreement shall in no way affect any
right of the City to pursue any remedy under the franchise or
any other provision of law; or
G. Franchisee breaches any rule, regulation or condition as
provided in this Agreement; or
H. Franchises fails to maintain a satisfactory level of service to
the Police Department, such as a maintaining a high standard
of customer relations and professionalism; or
I. Violation of any federal, state or local law by the contract
holder, franchisee or any person having any ownership
interest in the official police tow service or any employee of
the official police tow service.
10.2 Prior to revoking or suspending a franchise granted under this
Agreement, City or the Police Department shall give Franchisee notice and an opportunity
to be heard on the matter, in accordance with the following procedures:
A. The City shall first notify Franchisee of the violation in writing
by personal delivery or registered or certified mail, and
Diamond Valley Towing Agreement
11
demand that Franchisee cure the default within a reasonable
time, which shall not be less than ten days in the case of
Franchisee’s failure to pay any sum or other amount due to
the City under this Agreement with the City and 30 days in all
other cases. If Franchisee fails to correct the violation within
the time prescribed or if Franchisee fails to commence
correction of the violation within the time prescribed, the City
shall give Franchisee fourteen (14) calendar days’ written
notice of a hearing to be held before the City Manager or his
designee (“Hearing Officer”). The written notice shall specify
the alleged violations supporting the recommendation for
revocation of the franchise.
B. The Hearing Officer shall hear and consider all relevant
evidence submitted by staff and Franchisee or its agent or
representative. The Hearing Officer shall not be limited by
the technical rules of evidence, but may consider any
evidence upon which a prudent person might rely in arranging
his or her own affairs. The Hearing Officer may appear in
person at the hearing or present a written statement in time
for consideration at the hearing. If the Hearing Officer finds
that Franchisee has committed a material breach under this
Agreement and that Franchisee has not corrected the
violation or has not diligently commenced correction of the
violation after receiving proper notice in accordance with this
Agreement, the Hearing Officer may revoke the franchise.
C. The Hearing Officer may impose such conditions and take
such other action as he or she deems appropriate under the
circumstances to carry out the purpose of this Agreement. If
an interested party makes a written presentation to the
Hearing Officer but does not appear, he or she shall be
notified in writing of the decision.
D. Notwithstanding the City’s right to revoke or suspend a
franchise, the Police Chief shall have the right to suspend, for
a period not to exceed ninety (90) days, any franchise granted
pursuant to this Agreement, and to rescind all rights and
privileges associated with it during the suspension period, if
the Police Chief has reasonable cause to believe that
Franchisee has engaged in fraudulent conduct with respect to
the performance of the towing services as provided herein or
that Franchisee’s continued performance of towing services
Diamond Valley Towing Agreement
12
as provided herein constitutes a potential endangerment to
the health or safety of the public.
E. The business owner may appeal the decision of the Hearing
Officer to the City Council within 15 days following service of
the Hearing Officer’s decision.
11.0 Liability Insurance
11.1 Coverage. Throughout the term of this Agreement, Franchisee shall
pay for and maintain in full force and effect all policies of insurance required hereunder
with an insurance company(ies) either (i) admitted by the California Insurance
Commissioner to do business in the State of California and rated not less than “A-VII” in
Best’s Insurance Rating Guide, or (ii) authorized by City’s Risk Manager. The following
policies of insurance are required:
A. Commercial General Liability I nsurance which shall be on
the most current version of Insurance Services Office (ISO)
Commercial General Liability Coverage F01m CG 00 01
and include insurance for “bodily injury,” “property damage”
and “personal and advertising injury” with coverage for
premises and operations, products and completed
operations, and contractual liability (including, without
limitation, indemnity obligations under the Agreement) with
limits of liability of not less than $1,000,000 per occurrence
for bodily injury and property damage, $1,000,000 per
occurrence for personal and advertising injury and
$2,000,000 aggregate for products and completed
operations and $2,000,000 general aggregate.
B. Garagekeepers Legal Liability Insurance which shall
include coverage for vehicles in the care, custody, and
control of the Franchisee with limits of liability of not less
than $500,000 per occurrence for property damage.
C. Commercial Automobile Liability Insurance which shall be
on the most current version of Insurance Service Office
(ISO) Business Auto Coverage Form CA 00 01, and include
coverage for all owned, hired, and non-owned automobiles
or other licensed vehicles (Code 1- Any Auto) with limits of
not less than $1,000,000 per accident for bodily injury and
property damage.
Diamond Valley Towing Agreement
13
D. On-Hook/Cargo I nsurance which shall include coverage for
vehicles in tow with limits of liability based on the size of
the tow truck, which are as follows:
1. Class A tow truck $50,000
2. Class B tow truck $100,000
3. Class C tow truck $200,000
4. Class D tow truck $250,000
E. Workers’ Compensation Insurance as required under the
California Labor Code.
F. Employers’ Liability Insurance with minimum limits of
$1,000,000 each accident, $1,000,000 disease policy limit
and $1,000,000 disease each employee.
11.2 Policy Endorsement. Every policy and every certificate of motor
vehicle liability insurance coverage filed pursuant to the provisions of this Agreement shall
contain the following endorsements:
A. It is hereby understood and agreed that, notwithstanding
expressions or provisions inconsistent with, or contrary
thereto in this policy contained, the policy is expressly issued
to cover a motor vehicle regulated by the provisions of
Chapter 12.14 of the City of Lake Elsinore Municipal Code.
This policy shall inure to, and be for the benefit and protection
of, each person who shall sustain any damages or injury, or
to the heirs, personal representatives, administrators,
executors or assigns of any such person who may be so
damaged or injured, to suffer death by reason of the operation
of a motor vehicle covered by this policy or from the defective
conditions thereof. Liability under this policy shall be in no
manner abrogated or abated by the death of the tortfeasor or
the insured.
B. This is a continuing liability for claims incurred up to the full
amount hereof, notwithstanding any action or recovery
thereon.
C. No cancellation or reduction of coverage of this policy for any
reason whatsoever shall become effective until the expiration
of thirty days after written notice of such cancellation or
reduction in coverage shall have been given in writing to the
Diamond Valley Towing Agreement
14
City’s Risk Manager. The thirty day period shall commence
upon the date the notice is actually received in the office of
the City’s Risk Manager if personally delivered, or, if given by
registered United States mail with return receipt requested, in
the second business day after the notice is deposited in the
United States mail, postage prepaid or on the date of receipt
shown on the return receipt, whichever is later.
D. The City of Lake Elsinore and Lake Elsinore Police
Department shall be listed as “Also Insured.”
12.0 Additional Services to be Provided. Franchisee shall provide to the
City, at no charge, the services needed to facilitate the City’s Vehicle Abatement Program.
Additionally, the Franchisee will provide emergency response to aid and service City and
Police Department vehicles that are one ton or less, within a reasonable radius of the
City, at no cost to the City or Police Department.
13.0 Additional Franchises. The franchise granted herein shall be not be
exclusive; however, notwithstanding the foregoing, any new tow franchise granted by the
City following the Effective Dates shall, during the Initial Term, be subject to substantially
the same terms and conditions as set forth herein.
14.0 Indemnity. Franchisee agrees to protect, indemnify, defend and hold
harmless the City and the Police Department from all claims, demands or liability arising
out of or encountered in connection with its agreement with the City or the performance
of work in preparation for the towing operation, or claims, demands and liability occurring
during the towing and subsequent storage and maintenance activities whether such
claims, demands or liability are caused by the tow service or its employees or agents.
15.0 Severability. If any provision, clause, sentence or paragraph of this
Agreement or the application thereof to any person or circumstance shall be held invalid,
such invalidity shall not affect the other provisions of this Agreement and are hereby
declared to be severable.
CITY OF LAKE ELSINORE, a municipal
corporation
Dated:______________________ By:__________________________________
Mayor
ATTEST:
Diamond Valley Towing Agreement
15
__________________________________
City Clerk
APPROVED AS TO FORM:
__________________________________
City Attorney
DIAMOND VALLEY TOWING
Dated:______________________ By:___________________________________
Its:__________________________________
CITY TOW OPERATION FRANCHISE AGREEMENT
I. PARTIES AND EFFECTIVE DATE
This CITY TOW OPERATION FRANCHISE AGREEMENT (“Agreement”) is made
between the CITY OF LAKE ELSINORE, a California municipal corporation with offices
located at 130 South Main Street, Lake Elsinore, California 92530 (“City”), and RIVERA
TOWING INC., a Towing Company licensed to conduct business in the State of California
located at 1146 West Flint St., Lake Elsinore, California 92530 (“Franchisee”). City and
Franchisee are sometimes collectively referred to as “Parties.” All references to City
include its elected officials, officers, directors, employees, agents, and volunteers. All
references to Franchisee include its personnel, employees, agent s, and contractors.
This Agreement is dated July 1, 2022 for reference purposes only. This
Agreement will not be effective until the date on which this Agreement has been executed
by the Parties authorized officials (“Effective Date”). This Agreement supersedes any prior
written agreement between the Parties.
II. RECITALS
A. Franchisee is a Towing Company.
B. Pursuant to California Vehicle Code section 12110(b), City has the authority
to grant franchises to companies that provide certain police towing services and to collect
a fee in connection therewith, provided the fee does not exceed the amount necessary to
reimburse the City for its actual and reasonable costs incurred in connection with
administering its police towing program.
C. On June 28, 2022, pursuant to Resolution No. 2022-__, the City granted to
Franchisee a non-exclusive franchise for City tow operations in accordance with Lake
Elsinore Municipal Code Chapter 12.14 (“Chapter 12.14”).
D. The purpose of this Agreement is to: (i) set forth the rights and
responsibilities of the Parties with respect to a non-exclusive franchise for towing
operations; (ii) prescribe the basic regulations for the operation of the City of Lake Elsinore
(“City”) and Lake Elsinore Police Department (“Police Department”) towing service in
emergency situations and in the removal of vehicles that are abandoned, involved in an
accident, or constitute an obstruction to traffic because of mechanical failure, and; (iii) in
accordance with Chapter 12.14, provide a fair and impartial means of distributing requests
for towing services among qualified franchises, and to ensure that such service is prompt
and reasonably priced, and in the best interests of the public as well as the interest of
efficient policing operations for the removal of such vehicles from public streets.
E. The City hereby engages Franchisee to provide Towing Services as
provided herein. Franchisee shall have, throughout the term of this Agreement, the
nonexclusive right to engage in the business of providing towing services to the City within
the boundaries of City as they now exist, and within any territory the City hereafter
annexes, except to the extent that towing services within such territory annexed would be
Rivera Towing Agreement
2
unlawful or violate the legal rights of another person. Franchisee acknowledges that the
City places no maximum on the number of City-generated tows that Franchisee may be
required to provide in any time period, the City is not obligated to provide Franchisee with
a minimum number of City-generated tows during any time period.
III. TERMS
1.0 Municipal Code Incorporated. The terms of Chapter 12.14 are hereby
incorporated by this reference. To the extent that the provisions of this Agreement are
inconsistent with or vary from the requirements set forth in Chapter 12.14, the terms of
Chapter 12.14 shall control.
2.0 Franchise Fees.
2.1. Franchisee shall pay to the City franchise charges and fees as
determined by resolution of the City Council.
2.2. The City shall retain the right to impose alternative forms of taxes
and/or fees in the event that the franchise fees provided for in this Agreement are no
longer assessable due to a subsequent change in federal, state or local law.
3.0 Rotation system.
3.1 Franchisee shall provide towing service to the City pursuant to the
rotation system established by the Chief of the Police Department (the “Police Chief”).
All operators on the rotation list shall be required to be in compliance with Chapter 12.14.
The City may request services from a franchised tow truck operator who is not on -call or
who is not franchised under Chapter 12.14 in emergencies when the Police Chief or City
Manager deems an emergency to exist.
3.2 Franchisee may be required by the Police Chief to contract with an
approved telephone answering service at their sole cost and expense. If so required, this
answering service will be responsible for rotating the franchised tow truck operators
according to the rotation system established by the Police Chief.
4.0 Rates
4.1 Franchisee shall not charge rates greater than 115 percent of the
schedule of rates for towing established by the California Highway Patrol (CHP) for the
Riverside County Area. Such rates are determined by a competitive bid process and
updated annually by CHP. As they are updated, the new rates will become the rates
applicable under this Agreement. If the state highway patrol does not update fees
yearly, the City may grant a yearly cost of living increase in accordance with the
Rivera Towing Agreement
3
Consumer Price Index (CPI) established by the United States Department of Labor
Bureau of Labor Statistics for the area of Los Angeles, Riverside, and Anaheim,
California, published in April of the year in which the increase is requested. Requests
for a CPI increase shall be made in writ ing to the Police Chief. The Police Chief shall
review the request and make recommendations to the City Council as to whether or not
increases should be granted.
4.2 The rate for towing shall be from portal to portal at a one hour
minimum. Charges in excess of one hour may be charged in fifteen minute increments.
There shall be no additional charges for mileage, labor, etc. Secondary towing requests
by the customer may be negotiated by the official police towing service in accordance
with his/her private business practices.
4.3 Rates for service calls (out of gas, lock outs, etc.) shall be from portal
to the end of the service, and may be at the hourly rate with a thirty minute minimum.
Charges in excess of thirty minutes may be charged in fifteen minu te increments.
4.4 The total fees added for afterhours release shall be no more than
one-half the hourly rate, and shall only be allowed if there is no person available at the
storage facility for release and a call back is required.
4.5 Storage fees shall be charged by calendar day except that vehicles
stored eight hours or less shall be charged no more than one day storage.
4.6 Maintain a sign listing the rates and charges for all towing and
storage services offered. The schedule of rates charged by Franchisee shall be posted in
the lobby of the tow truck companies. Additionally, rates shall be made available upon
demand to persons for who the tow services were provided or his/her agent.
4.7 When a stored vehicle is not released and Franchisee dispo ses of
the vehicle by a lien sale or junk slip, a copy of the lien sale document or junk slip will be
submitted to the Office by Franchisee in lieu of the payment receipt/invoice normally
received.
5.0 Conditions on Franchises. Pursuant to this Agreement, Franchisee shall:
A. Provide adequate storage for a minimum of twenty-five vehicles
within City boundaries in accordance with the following standards of
performance. If it is determined that twenty-five spaces is
inadequate, the Police Chief may raise the minimum standard of
spaces. This discretion applies to a specific Franchisee, since the
actual capacity of each Franchisee will vary in accordance with the
volume of overall business associated with each Franchisee;
Rivera Towing Agreement
4
B. Vehicles are to be stored at properly zoned storage facilities within
City limits. The storage facility must be manned twenty-four (24)
hours a day if it is at a location other than the primary place of
business.
C. The view to all automobiles in the lot must be obstructed from the
roadway. No vehicles shall be left parked or stored on the public
streets at any time.
D. Each stored vehicle shall be a minimum of two and one-half feet from
any other vehicle, structure or object.
E. All stored vehicles shall be reasonably accessible to the vehicle ’s
owner or vehicle’s owner/agent and the Police Department for
retrieval, inspection and/or identification. Vehicle owners shall be
able to retrieve a stored vehicle within a reasonable period not to
exceed one (1) hour.
F. At the request of the Police Department, the franchisee shall
waive/reimburse the registered/legal owner of any vehicle towed
pursuant to this section.
G. Franchisee is responsible for the reasonable care, custody, and
control of any property contained in towed or stored vehicles.
Vehicles stored outside shall be within a n enclosed area with a
minimum of a six-foot high fence topped with wire or some other
security device. Security shall be adequate to preclude theft ,
vandalism, or damage by activity while in the Franchisee ’s
establishment.
H. Respond to Police Department calls 24 hours a day, seven days a
week, within 20 minutes or another maximum response time as
established by the Police Chief. Franchisee will advise the Police
Department dispatch, at the time of notification, if they are either
unable to respond or unable to meet the maximum response time.
If, after accepting the call, the Franchisee is unable to respond or will
be delayed in responding, the Franchisee shall immediately notify
Central Dispatch. In the event of a delay, the Police Department
has the authority to elect to contact another franchisee for service.
Franchisee shall not assign calls to other franchises and shall not
respond to a Police Department call assigned to another Franchisee
unless requested to do so by the Police Department. There may be
Rivera Towing Agreement
5
times when a driver, who was not called to a scene, comes upon a
collision scene where a vehicle or vehicles are blocking a roadway
and a Police Officer requests his/her assistance in clearing the
roadway. In such a case, the driver may be requested to move the
vehicle to a safe location, as directed by the Officer, and leave it.
There shall be no charge for this assistance, an d the assistance
provided shall not change the Franchisees’ place in the rotation.
I. The Police Department may, at is sole discretion, contact the next
tow operator on the rotation list when the Franchisee:
1. Fails to answer the phone;
2. Is unable to provide a service;
3. Is unable to respond; or
4. Is canceled due to excessive responsive time.
J. Post a tag on the windshield of all cars ordered impounded by the
Police Department. In addition to posting a tag on the windshield of
the car, Franchisee may also affix temporary markings on the car
windshield.
K. Not release any vehicles ordered towed by the Police Department
unless released at the direction of the Police Department. The Police
Department will provide Franchisee with appropriate regulations
including updates to these regulations as they occur.
L. When called from the rotation list by the Police Department, respond
to the call and pick up all vehicles that have been involved in an
accident or a traffic violation, unless the vehicles are needed for
criminal evidence or the owner or someone designated by the owner
is present and is capable of removing a vehicle or calling a tow
company of his or her choice to remove a vehicle; provided the street
can be cleared for safe public use with reasonable dispatch.
Additionally, the tow operator will provide cleanup services at traffic
collision sites excluding biohazard materials.
M. Furnish each owner of an automobile impounded by the tow truck
operator with a fully itemized billing.
N. Record their time “in” and their time “out” on every tow truck
assignment. Such records shall be available and open to Police
Department examination.
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O. Not respond to any rotational call with a tow truck that has not been
inspected by the California Highway Patrol. All new tow truck
vehicles shall be inspected before being placed into service. The
designated agency (California Highway Patrol) may conduct
inspections without notice during normal business hours.
P. Have a schedule of rates available upon demand in all vehicles at all
times.
Q. Have an attendant on call capable of responding to Police
Department requests for towing services, twenty-four hours a day,
seven days a week. An answering service may fulfill this
requirement.
R. Maintain minimum operating hours for storage facilities of Monday
through Friday, 8:00 a.m. to 5:00 p.m., except holidays.
S. The Police Department reserves the right to inspect all drivers,
vehicles and their mechanical condition, equipment and yards. The
Police Department also reserves the right to require that all towing
vehicles be inspected by an automotive professional certified by the
State of California Bureau of Automotive Repair, and selected by the
Police Department. All vehicle inspection fees shall be borne solely
by Franchisee. Franchisee is responsible for a rranging an annual
vehicle inspection to the extent required by the California Highway
Patrol. Any towing vehicle that fails an inspection shall not be used
to provide towing service in the City, until it is repaired and passes
reinspection.
T. Obtain and produce upon request proof of Workers’ compensation,
Commercial liability and Commercial automobile/truck insurance of
not less than $1,000,000 combined single limits for each type. Said
policies shall be endorsed to state that coverage shall not be
reduced, suspended, voided or canceled by either party during the
term of the franchise.
U. All vehicles stored or impounded as a result of towing services
requested by the Police Department or City, shall be made available
to the owner of these vehicles or his representative, an authorized
insurance agent, insurance adjustor, or body shop or car dealer, for
the purpose of estimation or appraising damages, except vehicles
with a Police Hold/Impound.
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7
V. All vehicles stored or impounded as a result of tow services regulated
by the City or Police Department shall be towed directly to an official
storage facility unless the Police Department or other person legally
in charge of the vehicle requests that it be taken to some other
location.
W. Upon approval of the Police Department, Franchisee may release
personal property from an impound vehicle at the request of the
vehicle owner or their agent. There shall be no charge for the
release of personal property during normal business hours.
Franchisee may charge an afterhours release fee for property
released after normal business hours.
X. Equip all towing vehicles with the auxiliary equipment required for
vehicles towing for the California Highway Patrol, in accordance with
Attachment “C” of the State of California, Department of California
Highway Patrol Tow Service Agreement (CHP 234 (REV. 1-98) OPI
061), or any successor Tow Service Agreement.
Y. Comply with all applicable federal, state and local regulations for
providing towing service.
Z. Submit a report regarding response time statistics for all franchise
tows if requested to do so by the Police Department along with other
related information as may be requested.
AA. While providing Towing Services pursuant to this Agreement,
Franchisee and/or its employees or agents shall not engage in any
misconduct, including, but not limited to, any of the following:
1. Rude, offensive or discourteous behavior;
2. Lack of service, selective service, refusal to provide service
which the Franchisee is capable of performing;
3. Discrimination based upon on creed, sex, race, national
origin, or any other classification prohibited by state or federal
law;
4. Unsafe or unlawful driving practices; or
5. Exhibiting any objective symptoms of drug or alcohol use
including, but not limited to, arriving at a tow scene with
alcohol on their breath.
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8
BB. Take prompt and appropriate steps to resolve any third party
complaints arising from or related to services provided pursuant to
the Agreement.
6.0 Tow Truck Classifications
6.1 Franchisee shall equip and maintain a minimum of three tow truck(s),
with a total vehicle capacity of four vehicles. Tow trucks must be in like-new appearance
and tow operators shall equip and maintain tow trucks covered under this Agreement
within the provisions set forth in the California Veh icle Code, Title 13 of the California
Code of Regulations, the specifications contained herein, and in a manner consistent with
industry standards and practices.
6.2 The four classes of tow trucks covered by this Agreement include:
A. Class A - Light Duty. A tow truck with a manufacturer’s Gross
Vehicle Weight Rating of 10,000 to 19,500 pounds with wheel
lift capability, and may have a car carrier. A tow truck
company who had a car carrier may be exempted from the
wheel lift capability requirements. However, the car carrier
must an additional unit.
B. Class B-Medium Duty. A tow truck with a manufacturer’s
Gross Vehicle Weight Rating of 19,501 to 33,000 pounds.
The truck shall be capable of providing air to the towed
vehicle’s brakes. A tow truck company may also have a car
carrier. However, the carrier must be an additional unit.
C. Class C-Heavy Duty. A tow truck with a manufacturer’s Gross
Vehicle Weight Rating of at least 33,000 pounds. The truck
shall be equipped with air brakes and must be capable of
providing air to the towed vehicle’s brakes.
D. Class D-Super Heavy Duty. A tow truck with a manufacturer’s
Gross Vehicle Weight Rating of at least 50,000 pounds. The
truck shall be equipped with air brakes and must be capable
of providing air to the towed vehicle’s brakes.
6.3 To properly and safely tow and service the wide variety of vehicles
being operated on the highway, a towing procedure may require the use of auxiliary
equipment specifically designed for the purpose. The specifications r equired by the
California Highway Patrol will be required for all classes of equipment.
Rivera Towing Agreement
9
7.0 Transfer or Assignment of Franchise. 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, the franchise
or any rights or privileges therein granted, without the prior written consent of the City
Manager. The City ‘s approval of a transfer or assignment of a franchise granted pursuant
to this Agreement shall be conditioned upon Franchisee’s sale or disposal of all ownership
rights in the franchised tow truck business. If Franchisee desires to transfer or assign its
franchise tow truck business because Franchisee intends to sell or dispose of all interests
in the franchise tow truck business, the Franchise shall make a written request to the City
Manager for a transfer or assignment of the franchise at least 120 calendar days before
the requested effective transfer or assignment date. The Police Department shall
investigate the proposed transferee or assignee and determine whether they are qualified
to serve as a tow truck operator franchisee pursuant to the criteria and requirements set
forth in the City’s Municipal Code. If the Police Department determines that the proposed
transferee or assignee is qualified to be a tow truck operator franchise, the Police
Department shall recommend that the City approve the transfer or assignment. Any
attempt to sell, transfer, lease, assign or otherwise dispose of the franchise without the
prior consent of the City Manager shall be null and void.
8.0 Term. The term of this Agreement shall be for a period of four (4) years
from the Effective Date (the “Initial Term”).
9.0 Agreement Extension. This Agreement shall automatically renew at the
sole and absolute discretion of the City for two (2) additional years unless written notice
of cancellation has been provided to the Franchisee by the City at least six (6) months
prior to the expiration of the Initial Term.
10.0 Cancellation, Suspension and Revocation of Franchise.
10.1 The City and Police Department reserves the right to cancel this
Agreement for any reason, and in its sole and absolute discretion, by providing
Franchisee with thirty (30) days written notice of cancellation. The City also reserves
the right to revoke or suspend the franchise granted pursuant to this Agreement and to
rescind all rights and privileges associated with it at any time if:
A. Franchisee defaults in the performance of its material
obligations under this Agreement and fails to cure such
default within ten calendar days after receipt of written notice
of the default from the City and a reasonable opportunity to
cure the default in accordance with subsection (b)(1). This
includes nonpayment of any City business license or any
other fees provided in this Agreement; or
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10
B. Franchisee is habitually late, habitually fails to respond,
frequently make notification of an inability or unwillingness to
respond, or selectively make notifications of an inability or
unwillingness to respond to certain tows; or
C. Franchisee fails to provide or maintain in full force and effect
the insurance coverage as required by this Agreement; or
D. Franchisee violates any order or ruling of any regulatory body
having jurisdiction over Franchisee relative to Franchisee ’s
tow truck business, unless such order or ruling is being
contested by Franchisee by appropriate proceedings
conducted in good faith. This includes failure to comply with
the Lake Elsinore Municipal Code; or
E. Franchisee practices any fraud or deceit upon the City or upon
persons to whom it provides tow truck service as determined
by a court of law; or
F. Franchisee becomes insolvent, unable or unwilling to pay its
debts and obligations, or is adjudged to be bankrupt. The
City’s revocation of this Agreement shall in no way affect any
right of the City to pursue any remedy under the franchise or
any other provision of law; or
G. Franchisee breaches any rule, regulation or condition as
provided in this Agreement; or
H. Franchises fails to maintain a satisfactory level of service to
the Police Department, such as a maintaining a high standard
of customer relations and professionalism; or
I. Violation of any federal, state or local law by the contract
holder, franchisee or any person having any ownership
interest in the official police tow service or any employee of
the official police tow service.
10.2 Prior to revoking or suspending a franchise granted under this
Agreement, City or the Police Department shall give Franchisee notice and an opportunity
to be heard on the matter, in accordance with the following procedures:
A. The City shall first notify Franchisee of the violation in writing
by personal delivery or registered or certified mail, and
Rivera Towing Agreement
11
demand that Franchisee cure the default within a reasonable
time, which shall not be less than ten days in the case of
Franchisee’s failure to pay any sum or other amount due to
the City under this Agreement with the City and 30 days in all
other cases. If Franchisee fails to correct the violation within
the time prescribed or if Franchisee fails to commence
correction of the violation within the time prescribed, the City
shall give Franchisee fourteen (14) calendar days’ written
notice of a hearing to be held before the City Manager or his
designee (“Hearing Officer”). The written notice shall specify
the alleged violations supporting the recommendation for
revocation of the franchise.
B. The Hearing Officer shall hear and consider all relevant
evidence submitted by staff and Franchisee or its agent or
representative. The Hearing Officer shall not be limited by
the technical rules of evidence, but may consider any
evidence upon which a prudent person might rely in arranging
his or her own affairs. The Hearing Officer may appear in
person at the hearing or present a written statement in time
for consideration at the hearing. If the Hearing Officer finds
that Franchisee has committed a material breach under this
Agreement and that Franchisee has not corrected the
violation or has not diligently commenced correction of the
violation after receiving proper notice in accordance with this
Agreement, the Hearing Officer may revoke the franchise.
C. The Hearing Officer may impose such conditions and take
such other action as he or she deems appropriate under the
circumstances to carry out the purpose of this Agreement. If
an interested party makes a written presentation to the
Hearing Officer but does not appear, he or she shall be
notified in writing of the decision.
D. Notwithstanding the City’s right to revoke or suspend a
franchise, the Police Chief shall have the right to suspend, for
a period not to exceed ninety (90) days, any franchise granted
pursuant to this Agreement, and to rescind all rights and
privileges associated with it during the suspension period, if
the Police Chief has reasonable cause to believe that
Franchisee has engaged in fraudulent conduct with respect to
the performance of the towing services as provided herein or
that Franchisee’s continued performance of towing services
Rivera Towing Agreement
12
as provided herein constitutes a potential endangerment to
the health or safety of the public.
E. The business owner may appeal the decision of the Hearing
Officer to the City Council within 15 days following service of
the Hearing Officer’s decision.
11.0 Liability Insurance
11.1 Coverage. Throughout the term of this Agreement, Franchisee shall
pay for and maintain in full force and effect all policies of insurance required hereunder
with an insurance company(ies) either (i) admitted by the California Insur ance
Commissioner to do business in the State of California and rated not less than “A-VII” in
Best’s Insurance Rating Guide, or (ii) authorized by City’s Risk Manager. The following
policies of insurance are required:
A. Commercial General Liability I nsurance which shall be on
the most current version of Insurance Services Office (ISO)
Commercial General Liability Coverage F01m CG 00 01
and include insurance for “bodily injury,” “property damage”
and “personal and advertising injury” with coverage for
premises and operations, products and completed
operations, and contractual liability (including, without
limitation, indemnity obligations under the Agreement) with
limits of liability of not less than $1,000,000 per occurrence
for bodily injury and property damage, $1,000,000 per
occurrence for personal and advertising injury and
$2,000,000 aggregate for products and completed
operations and $2,000,000 general aggregate.
B. Garagekeepers Legal Liability Insurance which shall
include coverage for vehicles in the care, custody, and
control of the Franchisee with limits of liability of not less
than $500,000 per occurrence for property damage.
C. Commercial Automobile Liability Insurance which shall be
on the most current version of Insurance Service Office
(ISO) Business Auto Coverage Form CA 00 01, and include
coverage for all owned, hired, and non-owned automobiles
or other licensed vehicles (Code 1- Any Auto) with limits of
not less than $1,000,000 per accident for bodily injury and
property damage.
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13
D. On-Hook/Cargo I nsurance which shall include coverage for
vehicles in tow with limits of liability based on the size of
the tow truck, which are as follows:
1. Class A tow truck $50,000
2. Class B tow truck $100,000
3. Class C tow truck $200,000
4. Class D tow truck $250,000
E. Workers’ Compensation Insurance as required under the
California Labor Code.
F. Employers’ Liability Insurance with minimum limits of
$1,000,000 each accident, $1,000,000 disease policy limit
and $1,000,000 disease each employee.
11.2 Policy Endorsement. Every policy and every certificate of motor
vehicle liability insurance coverage filed pursuant to the provisions of this Agreement shall
contain the following endorsements:
A. It is hereby understood and agreed that, notwithstanding
expressions or provisions inconsistent with, or contrary
thereto in this policy contained, the policy is expressly issued
to cover a motor vehicle regulated by the provisions of
Chapter 12.14 of the City of Lake Elsinore Municipal Code.
This policy shall inure to, and be for the benefit and protection
of, each person who shall sustain any damages or injury, or
to the heirs, personal representatives, administrators,
executors or assigns of any such person who may be so
damaged or injured, to suffer death by reason of the operation
of a motor vehicle covered by this policy or from the defective
conditions thereof. Liability under this policy shall be in no
manner abrogated or abated by the death of the tortfeasor or
the insured.
B. This is a continuing liability for claims incurred up to the full
amount hereof, notwithstanding any action or recovery
thereon.
C. No cancellation or reduction of coverage of this policy for any
reason whatsoever shall become effective until the expiration
of thirty days after written notice of such cancellation or
reduction in coverage shall have been given in writing to the
Rivera Towing Agreement
14
City’s Risk Manager. The thirty day period shall commence
upon the date the notice is actually received in the office of
the City’s Risk Manager if personally delivered, or, if given by
registered United States mail with return receipt requested, in
the second business day after the notice is deposited in the
United States mail, postage prepaid or on the date of receipt
shown on the return receipt, whichever is later.
D. The City of Lake Elsinore and Lake Elsinore Police
Department shall be listed as “Also Insured.”
12.0 Additional Services to be Provided. Franchisee shall provide to the
City, at no charge, the services needed to facilitate the City’s Vehicle Abatement Program.
Additionally, the Franchisee will provide emergency response to aid and service City and
Police Department vehicles that are one ton or less, within a reasonable radius of the
City, at no cost to the City or Police Department.
13.0 Additional Franchises. The franchise granted herein shall be not be
exclusive; however, notwithstanding the foregoing, any new tow franchise granted by the
City following the Effective Dates shall, during the Initial Term, be subject to substantially
the same terms and conditions as set forth herein.
14.0 Indemnity. Franchisee agrees to protect, indemnify, defend and hold
harmless the City and the Police Department from all claims, demands or liability arising
out of or encountered in connection with its agreement with the City or the performance
of work in preparation for the towing operation, or claims, demands and liability occurring
during the towing and subsequent storage and maintenance activities whether such
claims, demands or liability are caused by the tow service or its employees or agents.
15.0 Severability. If any provision, clause, sentence or paragraph of this
Agreement or the application thereof to any person or circumstance shall be held invalid,
such invalidity shall not affect the other provisions of this Agreement and are hereby
declared to be severable.
CITY OF LAKE ELSINORE, a municipal
corporation
Dated:______________________ By:__________________________________
Mayor
ATTEST:
Rivera Towing Agreement
15
__________________________________
City Clerk
APPROVED AS TO FORM:
__________________________________
City Attorney
RIVERA TOWING INC.
Dated:______________________ By:__________________________________
Its:__________________________________
EXHIBIT A
CITY TOW OPERATION FRANCHISE AGREEMENT
I. PARTIES AND EFFECTIVE DATE
This CITY TOW OPERATION FRANCHISE AGREEMENT (“Agreement”) is made
between the CITY OF LAKE ELSINORE, a California municipal corporation with offices
located at 130 South Main Street, Lake Elsinore, California 92530 (“City”), and Steve’s
Towing Inc., a Towing Company licensed to conduct business in the State of California
located at 609 W. Minthorn St., Lake Elsinore, California 92530. (“Franchisee”). City and
Franchisee are sometimes collectively referred to as “Parties.” All references to City
include its elected officials, officers, directors, employees, agents, and volunteers. All
references to Franchisee include its personnel, employees, agent s, and contractors.
This Agreement is dated July 1, 2022 for reference purposes only. This
Agreement will not be effective until the date on which this Agreement has been executed
by the Parties authorized officials (“Effective Date”). This Agreement supersedes any prior
written agreement between the Parties.
II. RECITALS
A. Franchisee is a Towing Company.
B. Pursuant to California Vehicle Code section 12110(b), City has the authority
to grant franchises to companies that provide certain police towing services and to collect
a fee in connection therewith, provided the fee does not exceed the amount necessary to
reimburse the City for its actual and reasonable costs incurred in connection with
administering its police towing program.
C. On June 28, 2022, pursuant to Resolution No. 2022-__, the City granted to
Franchisee a non-exclusive franchise for City tow operations in accordance with Lake
Elsinore Municipal Code Chapter 12.14 (“Chapter 12.14”).
D. The purpose of this Agreement is to: (i) set forth the rights and
responsibilities of the Parties with respect to a non-exclusive franchise for towing
operations; (ii) prescribe the basic regulations for the operation of the City of Lake Elsinore
(“City”) and Lake Elsinore Police Department (“Police Department”) towing service in
emergency situations and in the removal of vehicles that are abandoned, involved in an
accident, or constitute an obstruction to traffic because of mechanical failure, and; (iii) in
accordance with Chapter 12.14, provide a fair and impartial means of distributing requests
for towing services among qualified franchises, and to ensure that such service is prompt
and reasonably priced, and in the best interests of the public as well as the interest of
efficient policing operations for the removal of such vehicles from public streets.
E. The City hereby engages Franchisee to provide Towing Services as
provided herein. Franchisee shall have, throughout the term of this Agreement, the
nonexclusive right to engage in the business of providing towing services to the City within
Steve’s Towing Agreement
June 28, 2022
2
the boundaries of City as they now exist, and within any territory the 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. Franchisee acknowledges that the
City places no maximum on the number of City-generated tows that Franchisee may be
required to provide in any time period, the City is not obligated to provide Franchisee with
a minimum number of City-generated tows during any time period.
III. TERMS
1.0 Municipal Code Incorporated. The terms of Chapter 12.14 are hereby
incorporated by this reference. To the extent that the provisions of this Agreement are
inconsistent with or vary from the requirements set forth in Chapter 12.14, the terms of
Chapter 12.14 shall control.
2.0 Franchise Fees.
2.1. Franchisee shall pay to the City franchise charges and fees as
determined by resolution of the City Council.
2.2. The City shall retain the right to impose alternative forms of taxes
and/or fees in the event that the franchise fees provided for in this Agreement are no
longer assessable due to a subsequent change in federal, state or local law.
3.0 Rotation system.
3.1 Franchisee shall provide towing service to the City pursuant to the
rotation system established by the Chief of the Police Department (the “Police Chief”).
All operators on the rotation list shall be required to be in compliance with Chapter 12.14.
The City may request services from a franchised tow truck operator who is not on -call or
who is not franchised under Chapter 12.14 in emergencies when the Police Chief or City
Manager deems an emergency to exist.
3.2 Franchisee may be required by the Police Chief to contract with an
approved telephone answering service at their sole cost and expense. If so required, this
answering service will be responsible for rotating the franchised tow truck operators
according to the rotation system established by the Police Chief.
4.0 Rates
4.1 Franchisee shall not charge rates greater than 115 percent of the
schedule of rates for towing established by the California Highway Patrol (CHP) for the
Riverside County Area. Such rates are determined by a competitive bid process and
updated annually by CHP. As they are updated, the new rates will become the rates
Steve’s Towing Agreement
June 28, 2022
3
applicable under this Agreement. If the state highway patrol does not update fees
yearly, the City may grant a yearly cost of living increase in accordance with the
Consumer Price Index (CPI) established by the United States Department of Labor
Bureau of Labor Statistics for the area of Los Angeles, Riverside, and Anaheim,
California, published in April of the year in which the increase is requested. Requests
for a CPI increase shall be made in writing to the Police Chief. The Police Chief shall
review the request and make recommendations to the City Council as to whether or not
increases should be granted.
4.2 The rate for towing shall be from portal to portal at a one hour
minimum. Charges in excess of one hour may be charged in fifteen minute increments.
There shall be no additional charges for mileage, labor, etc. Secondary towing requests
by the customer may be negotiated by the official police towing service in accordance
with his/her private business practices.
4.3 Rates for service calls (out of gas, lock outs, etc.) shall be from portal
to the end of the service, and may be at the hourly rate with a thirty minute minimum.
Charges in excess of thirty minutes may be charged in fifteen minute increments.
4.4 The total fees added for afterhours release shall be no more than
one-half the hourly rate, and shall only be allowed if there is no person available at the
storage facility for release and a call back is required.
4.5 Storage fees shall be charged by calendar day except that vehicles
stored eight hours or less shall be charged no more than one day storage.
4.6 Maintain a sign listing the rates and charges for all towing and
storage services offered. The schedule of rates charged by Franchisee shall be posted in
the lobby of the tow truck companies. Additionally, rates shall be made available upon
demand to persons for who the tow services were provided or his/her agent.
4.7 When a stored vehicle is not released and Franchisee disposes of
the vehicle by a lien sale or junk slip, a copy of the lien sale document or junk slip will be
submitted to the Office by Franchisee in lieu of the payment receipt/invoice normally
received.
5.0 Conditions on Franchises. Pursuant to this Agreement, Franchisee shall:
A. Provide adequate storage for a minimum of twenty-five vehicles
within City boundaries in accordance with the following standards of
performance. If it is determined that twenty-five spaces is
inadequate, the Police Chief may raise the minimum standard of
spaces. This discretion applies to a specific Franchisee, since the
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June 28, 2022
4
actual capacity of each Franchisee will vary in accordance with the
volume of overall business associated with each Franchisee;
B. Vehicles are to be stored at properly zoned storage facilities within
City limits. The storage facility must be manned twenty-four (24)
hours a day if it is at a location other than the primary place of
business.
C. The view to all automobiles in the lot must be obstructed from the
roadway. No vehicles shall be left parked or stored on the public
streets at any time.
D. Each stored vehicle shall be a minimum of two and one-half feet from
any other vehicle, structure or object.
E. All stored vehicles shall be reasonably accessible to the vehicle ’s
owner or vehicle’s owner/agent and the Police Department for
retrieval, inspection and/or identification. Vehicle owners shall be
able to retrieve a stored vehicle within a reasonable period not to
exceed one (1) hour.
F. At the request of the Police Department, the franchisee shall
waive/reimburse the registered/legal owner of any vehicle towed
pursuant to this section.
G. Franchisee is responsible for the reasonable care, custody, and
control of any property contained in towed or stored vehicles.
Vehicles stored outside shall be within a n enclosed area with a
minimum of a six-foot high fence topped with wire or some other
security device. Security shall be adequate to preclude theft,
vandalism, or damage by activity while in the Franchisee ’s
establishment.
H. Respond to Police Department calls 24 hours a day, seven days a
week, within 20 minutes or another maximum response time as
established by the Police Chief. Franchisee will advise the Police
Department dispatch, at the time of notification, if they are either
unable to respond or unable to meet the maximum response time.
If, after accepting the call, the Franchisee is unable to respond or will
be delayed in responding, the Franchisee shall immediately notify
Central Dispatch. In the event of a delay, the Police Department
has the authority to elect to contact another franchisee for service.
Franchisee shall not assign calls to other franchises and shall not
Steve’s Towing Agreement
June 28, 2022
5
respond to a Police Department call assigned to another Franchisee
unless requested to do so by the Police Department. There may be
times when a driver, who was not called to a scene, comes upon a
collision scene where a vehicle or vehicles are blocking a roadway
and a Police Officer requests his/her assistance in clearing the
roadway. In such a case, the driver may be requested to move the
vehicle to a safe location, as directed by the Officer, and leave it.
There shall be no charge for this assistance, and the assistance
provided shall not change the Franchisees’ place in the rotation.
I. The Police Department may, at is sole discretion, contact the next
tow operator on the rotation list when the Franchisee:
1. Fails to answer the phone;
2. Is unable to provide a service;
3. Is unable to respond; or
4. Is canceled due to excessive responsive time.
J. Post a tag on the windshield of all cars ordered impounded by the
Police Department. In addition to posting a tag on the wi ndshield of
the car, Franchisee may also affix temporary markings on the car
windshield.
K. Not release any vehicles ordered towed by the Police Department
unless released at the direction of the Police Department. The Police
Department will provide Franchisee with appropriate regulations
including updates to these regulations as they occur.
L. When called from the rotation list by the Police Department, respond
to the call and pick up all vehicles that have been involved in an
accident or a traffic violation, unless the vehicles are needed for
criminal evidence or the owner or someone designated by the owner
is present and is capable of removing a vehicle or calling a tow
company of his or her choice to remove a vehicle; provided the street
can be cleared for safe public use with reasonable dispatch.
Additionally, the tow operator will provide cleanup services at traffic
collision sites excluding biohazard materials.
M. Furnish each owner of an automobile impounded by the tow truck
operator with a fully itemized billing.
Steve’s Towing Agreement
June 28, 2022
6
N. Record their time “in” and their time “out” on every tow truck
assignment. Such records shall be available and open to Police
Department examination.
O. Not respond to any rotational call with a tow truck that has not been
inspected by the California Highway Patrol. All new tow truck
vehicles shall be inspected before being placed into service. The
designated agency (California Highway Patrol) may conduct
inspections without notice during normal business hours.
P. Have a schedule of rates available upon demand in all vehicles at all
times.
Q. Have an attendant on call capable of responding to Police
Department requests for towing services, twenty-four hours a day,
seven days a week. An answering service may fulfill this
requirement.
R. Maintain minimum operating hours for storage facilities of Monday
through Friday, 8:00 a.m. to 5:00 p.m., except holidays.
S. The Police Department reserves the right to inspect all drivers,
vehicles and their mechanical condition, equipment and yards. The
Police Department also reserves the right to require that all towing
vehicles be inspected by an automotive professional certified by the
State of California Bureau of Automotive Repair, and selected by the
Police Department. All vehicle inspection fees shall be borne sole ly
by Franchisee. Franchisee is responsible for arranging an annual
vehicle inspection to the extent required by the California Highway
Patrol. Any towing vehicle that fails an inspection shall not be used
to provide towing service in the City, until it is repaired and passes
reinspection.
T. Obtain and produce upon request proof of Workers’ compensation,
Commercial liability and Commercial automobile/truck insurance of
not less than $1,000,000 combined single limits for each type. Said
policies shall be endorsed to state that coverage shall not be
reduced, suspended, voided or canceled by either party during the
term of the franchise.
U. All vehicles stored or impounded as a result of towing services
requested by the Police Department or City, shall be made available
to the owner of these vehicles or his representative, an authorized
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insurance agent, insurance adjustor, or body shop or car dealer, for
the purpose of estimation or appraising damages, except vehicles
with a Police Hold/Impound.
V. All vehicles stored or impounded as a result of tow services regulated
by the City or Police Department shall be towed directly to an official
storage facility unless the Police Department or other person legally
in charge of the vehicle requests that it be taken to som e other
location.
W. Upon approval of the Police Department, Franchisee may release
personal property from an impound vehicle at the request of the
vehicle owner or their agent. There shall be no charge for the
release of personal property during normal business hours.
Franchisee may charge an afterhours release fee for property
released after normal business hours.
X. Equip all towing vehicles with the auxiliary equipment required for
vehicles towing for the California Highway Patrol, in accordance with
Attachment “C” of the State of California, Department of California
Highway Patrol Tow Service Agreement (CHP 234 (REV. 1-98) OPI
061), or any successor Tow Service Agreement.
Y. Comply with all applicable federal, state and local regulations for
providing towing service.
Z. Submit a report regarding response time statistics for all franchise
tows if requested to do so by the Police Department along with other
related information as may be requested.
AA. While providing Towing Services pursuant to this Agreement,
Franchisee and/or its employees or agents shall not engage in any
misconduct, including, but not limited to, any of the following:
1. Rude, offensive or discourteous behavior;
2. Lack of service, selective service, refusal to provide service
which the Franchisee is capable of performing;
3. Discrimination based upon on creed, sex, race, national
origin, or any other classification prohibited by state or federal
law;
4. Unsafe or unlawful driving practices; or
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5. Exhibiting any objective symptoms of drug or alcohol use
including, but not limited to, arriving at a tow scene with
alcohol on their breath.
BB. Take prompt and appropriate steps to resolve any third party
complaints arising from or related to services provided pursuant to
the Agreement.
6.0 Tow Truck Classifications
6.1 Franchisee shall equip and maintain a minimum of three tow truck(s),
with a total vehicle capacity of four vehicles. Tow trucks must be in like-new appearance
and tow operators shall equip and maintain tow trucks covered under this Agreement
within the provisions set forth in the California Vehicle Code, Title 13 of the California
Code of Regulations, the specifications contained herein, and in a manner consistent with
industry standards and practices.
6.2 The four classes of tow trucks covered by this Agreement include:
A. Class A - Light Duty. A tow truck with a manufacturer’s Gross
Vehicle Weight Rating of 10,000 to 19,500 pounds with wheel
lift capability, and may have a car carrier. A tow truck
company who had a car carrier may be exempted from the
wheel lift capability requirements. However, the car carrier
must an additional unit.
B. Class B-Medium Duty. A tow truck with a manufacturer’s
Gross Vehicle Weight Rating of 19,501 to 33,000 pounds.
The truck shall be capable of providing air to the towed
vehicle’s brakes. A tow truck company may also have a car
carrier. However, the carrier must be an additional unit.
C. Class C-Heavy Duty. A tow truck with a manufacturer’s Gross
Vehicle Weight Rating of at least 33,000 pounds. The truck
shall be equipped with air brakes and must be capable of
providing air to the towed vehicle’s brakes.
D. Class D-Super Heavy Duty. A tow truck with a manufacturer’s
Gross Vehicle Weight Rating of at least 50,000 pounds. The
truck shall be equipped with air brakes and must be capable
of providing air to the towed vehicle’s brakes.
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6.3 To properly and safely tow and service the wide variety of vehicles
being operated on the highway, a towing procedure may require the use of auxiliary
equipment specifically designed for the purpose. The specifications required by the
California Highway Patrol will be required for all classes of equipment.
7.0 Transfer or Assignment of Franchise. 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, the franchise
or any rights or privileges therein granted, without the prior written consent of the City
Manager. The City ‘s approval of a transfer or assignment of a franchise granted pursuant
to this Agreement shall be conditioned upon Franchisee’s sale or disposal of all ownership
rights in the franchised tow truck business. If Franchisee desires to transfer or assign its
franchise tow truck business because Franchisee intends to sell or dispose of all interests
in the franchise tow truck business, the Franchise shall make a written request to the City
Manager for a transfer or assignment of the franchise at least 120 calendar days before
the requested effective transfer or assignment date. The Police Department shall
investigate the proposed transferee or assignee and determine whether they are qualified
to serve as a tow truck operator franchisee pursuant to the criteria and requirements set
forth in the City’s Municipal Code. If the Police Department determines that the proposed
transferee or assignee is qualified to be a tow truck operator franchise, the Police
Department shall recommend that the City approve the transfer or assignment. Any
attempt to sell, transfer, lease, assign or otherwise dispose of the franchise without the
prior consent of the City Manager shall be null and void.
8.0 Term. The term of this Agreement shall be for a period of four (4) years
from the Effective Date (the “Initial Term”).
9.0 Agreement Extension. This Agreement shall automatically renew at the
sole and absolute discretion of the City for two (2) additional years un less written notice
of cancellation has been provided to the Franchisee by the City at least six (6) months
prior to the expiration of the Initial Term.
10.0 Cancellation, Suspension and Revocation of Franchise.
10.1 The City and Police Department reserves the right to cancel this
Agreement for any reason, and in its sole and absolute discretion, by providing
Franchisee with thirty (30) days written notice of cancellation. The City also reserves
the right to revoke or suspend the franchise granted pursuant to this Agreement and to
rescind all rights and privileges associated with it at any time if:
A. Franchisee defaults in the performance of its material
obligations under this Agreement and fails to cure such
default within ten calendar days after receipt of written notice
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of the default from the City and a reasonable opportunity to
cure the default in accordance with subsection (b)(1). This
includes nonpayment of any City business license or any
other fees provided in this Agreement; or
B. Franchisee is habitually late, habitually fails to respond,
frequently make notification of an inability or unwillingness to
respond, or selectively make notifications of an inability or
unwillingness to respond to certain tows; or
C. Franchisee fails to provide or maintain in full force and effect
the insurance coverage as required by this Agreement; or
D. Franchisee violates any order or ruling of any regulatory body
having jurisdiction over Franchisee relative to Franchisee ’s
tow truck business, unless such order or ruling is being
contested by Franchisee by appropriate proceedings
conducted in good faith. This includes failure to comply with
the Lake Elsinore Municipal Code; or
E. Franchisee practices any fraud or deceit upon the City or upon
persons to whom it provides tow truck service as determined
by a court of law; or
F. Franchisee becomes insolvent, unable or unwilling to pay its
debts and obligations, or is adjudged to be bankrupt. The
City’s revocation of this Agreement shall in no way affect any
right of the City to pursue any remedy under the franchise or
any other provision of law; or
G. Franchisee breaches any rule, regulation or condition as
provided in this Agreement; or
H. Franchises fails to maintain a satisfactory level of service to
the Police Department, such as a maintaining a high standard
of customer relations and professionalism; or
I. Violation of any federal, state or local law by the contract
holder, franchisee or any person having any ownership
interest in the official police tow service or any employee of
the official police tow service.
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10.2 Prior to revoking or suspending a franchise granted under this
Agreement, City or the Police Department shall give Franchisee notice and an opportunity
to be heard on the matter, in accordance with the following procedures:
A. The City shall first notify Franchisee of the violation in writing
by personal delivery or registered or certified mail, and
demand that Franchisee cure the default within a reasonable
time, which shall not be less than ten days in the case of
Franchisee’s failure to pay any sum or other amount due to
the City under this Agreement with the City and 30 days in all
other cases. If Franchisee fails to correct the violation within
the time prescribed or if Franchisee fails to commence
correction of the violation within the time prescribed, the City
shall give Franchisee fourteen (14) calendar days’ written
notice of a hearing to be held before the City Manager or his
designee (“Hearing Officer”). The written notice shall specify
the alleged violations supporting the recommendation for
revocation of the franchise.
B. The Hearing Officer shall hear and consider all relevant
evidence submitted by staff and Franchisee or its agent or
representative. The Hearing Officer shall not be limited by
the technical rules of evidence, but may consider any
evidence upon which a prudent person might rely in arranging
his or her own affairs. The Hearing Officer may appear in
person at the hearing or present a written statement in time
for consideration at the hearing. If the Hearing Officer finds
that Franchisee has committed a material breach under this
Agreement and that Franchisee has not corrected the
violation or has not diligently commenced correction of the
violation after receiving proper notice in accordance with this
Agreement, the Hearing Officer may revoke the franchise.
C. The Hearing Officer may impose such conditions and take
such other action as he or she deems appropriate under the
circumstances to carry out the purpose of this Agreement. If
an interested party makes a written presentation to the
Hearing Officer but does not appear, he or she shall be
notified in writing of the decision.
D. Notwithstanding the City’s right to revoke or suspend a
franchise, the Police Chief shall have the right to suspend, for
a period not to exceed ninety (90) days, any franchise granted
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pursuant to this Agreement, and to rescind all rights and
privileges associated with it during the suspension period, if
the Police Chief has reasonable cause to believe that
Franchisee has engaged in fraudulent conduct with respect to
the performance of the towing services as provided herein or
that Franchisee’s continued performance of towing services
as provided herein constitutes a potential endangerment to
the health or safety of the public.
E. The business owner may appeal the decision of the Hearing
Officer to the City Council within 15 days following service of
the Hearing Officer’s decision.
11.0 Liability Insurance
11.1 Coverage. Throughout the term of this Agreement, Franchisee shall
pay for and maintain in full force and effect all policies of insurance required hereunder
with an insurance company(ies) either (i) admitted by the California Insurance
Commissioner to do business in the State of California and rated not less than “A-VII” in
Best’s Insurance Rating Guide, or (ii) authorized by City’s Risk Manager. The following
policies of insurance are required:
A. Commercial General Liability I nsurance which shall be on
the most current version of Insurance Services Office (ISO)
Commercial General Liability Coverage F01m CG 00 01
and include insurance for “bodily injury,” “property damage”
and “personal and advertising injury” with coverage for
premises and operations, products and completed
operations, and contractual liability (including, without
limitation, indemnity obligations under the Agreement) with
limits of liability of not less than $1,000,000 per occurrence
for bodily injury and property damage, $1,000,000 per
occurrence for personal and advertising injury and
$2,000,000 aggregate for products and completed
operations and $2,000,000 general aggregate.
B. Garagekeepers Legal Liability Insurance which shall
include coverage for vehicles in the care, custody, and
control of the Franchisee with limits of liability of not less
than $500,000 per occurrence for property damage.
C. Commercial Automobile Liability Insurance which shall be
on the most current version of Insurance Service Office
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(ISO) Business Auto Coverage Form CA 00 01, and include
coverage for all owned, hired, and non-owned automobiles
or other licensed vehicles (Code 1- Any Auto) with limits of
not less than $1,000,000 per accident for bodily injury and
property damage.
D. On-Hook/Cargo I nsurance which shall include coverage for
vehicles in tow with limits of liability based on the size of
the tow truck, which are as follows:
1. Class A tow truck $50,000
2. Class B tow truck $100,000
3. Class C tow truck $200,000
4. Class D tow truck $250,000
E. Workers’ Compensation Insurance as required under the
California Labor Code.
F. Employers’ Liability Insurance with minimum limits of
$1,000,000 each accident, $1,000,000 disease policy limit
and $1,000,000 disease each employee.
11.2 Policy Endorsement. Every policy and every certificate of motor
vehicle liability insurance coverage filed pursuant to the provisions of this Agreement shall
contain the following endorsements:
A. It is hereby understood and agreed that, notwithstanding
expressions or provisions inconsistent with, or contrary
thereto in this policy contained, the policy is expressly issued
to cover a motor vehicle regulated by the provisions of
Chapter 12.14 of the City of Lake Elsinore Municipal Code.
This policy shall inure to, and be for the benefit and protection
of, each person who shall sustain any damages or injury, or
to the heirs, personal representatives, administrators,
executors or assigns of any such person who may be so
damaged or injured, to suffer death by reason of the operation
of a motor vehicle covered by this policy or from the defective
conditions thereof. Liability under this policy shall be in no
manner abrogated or abated by the death of the tortfeasor or
the insured.
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B. This is a continuing liability for claims incurred up to the full
amount hereof, notwithstanding any action or recovery
thereon.
C. No cancellation or reduction of coverage of this policy for any
reason whatsoever shall become effective until the expiration
of thirty days after written notice of such cancellation or
reduction in coverage shall have been given in writing to the
City’s Risk Manager. The thirty day period shall commence
upon the date the notice is actually received in the office of
the City’s Risk Manager if personally delivered, or, if given by
registered United States mail with return receipt requested, in
the second business day after the notice is deposited in the
United States mail, postage prepaid or on the date of receipt
shown on the return receipt, whichever is later.
D. The City of Lake Elsinore and Lake Elsinore Police
Department shall be listed as “Also Insured.”
12.0 Additional Services to be Provided. Franchisee shall provide to the
City, at no charge, the services needed to facilitate the City’s Vehicle Abatement Program.
Additionally, the Franchisee will provide emergency response to aid and service City and
Police Department vehicles that are one ton or less, within a reasonable radius of the
City, at no cost to the City or Police Department.
13.0 Additional Franchises. The franchise granted herein shall be not be
exclusive; however, notwithstanding the foregoing, any new tow franchise granted by the
City following the Effective Dates shall, during the Initial Term, be subject to substantially
the same terms and conditions as set forth herein.
14.0 Indemnity. Franchisee agrees to protect, indemnify, defend and hold
harmless the City and the Police Department from all claims, demands or liability arising
out of or encountered in connection with its agreement with the City or the performance
of work in preparation for the towing operation, or claims, demands and liability occurring
during the towing and subsequent storage and maintenance activities whether such
claims, demands or liability are caused by the tow service or its employees or agents.
15.0 Severability. If any provision, clause, sentence or paragraph of this
Agreement or the application thereof to any person or circumstance shall be held invalid,
such invalidity shall not affect the other provisions of this Agreement and are hereby
declared to be severable.
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CITY OF LAKE ELSINORE, a municipal
corporation
Dated: ______________________
By:_____________________________
__________
Mayor
ATTEST:
__________________________________
City Clerk
APPROVED AS TO FORM:
__________________________________
City Attorney
[Steve’s Towing Inc.]
Dated: ______________________
By:_____________________________
__________
Its:___________________________________
__
Chapter 12.14
ROTATIONAL TOWING SERVICES
Sections:
12.14.010 Purpose and intent.
12.14.020 Definitions.
12.14.030 Tow truck operator franchise.
12.14.040 Nonexclusive franchise.
12.14.050 Selection of franchisees.
12.14.060 Rotation system.
12.14.070 Conditions on franchises.
12.14.080 Rates.
12.14.090 Vehicle impound cost recovery fee.
12.14.100 Franchise fees.
12.14.110 Franchise agreements.
12.14.120 Additional services to be provided.
12.14.130 Authority to maintain City towing operations and towing yard.
12.14.010 Purpose and intent.
It is the intent of this chapter and any subsequent amendments thereto to prescribe the basic
regulations for the operation of the City of Lake Elsinore (“City”) and Lake Elsinore Police
Department (“Police Department”) towing service in emergency situations and in the removal of
vehicles that are abandoned, involved in an accident, or constitute an obstruction to traffic
because of mechanical failure. It is the purpose of the City Council in enacting this chapter to
provide a fair and impartial means of distributing requests for towing services among qualified
franchises, and to ensure that such service is prompt and reasonably priced, and in the best
interests of the public as well as the interest of efficient policing operations for the removal of
such vehicles from public streets.
12.14.020 Definitions.
For purposes of this chapter, the following terms, phrases, words, and derivations shall have the
meaning given in this section:
“City Manager” means the City Manager of the City of Lake Elsinore.
“Franchise agreement” means an agreement between the City and a franchisee for the purpose
of providing towing services as provided in this chapter.
“Franchisee” means a certain tow truck operator to which the City Council may, by the adoption
of a resolution or ordinance, grant a nonexclusive franchise for purposes of providing towing
services to the City under and pursuant to the provisions of this chapter.
“Police Chief” means the Chief of Police of the Police Department of the City of Lake Elsinore.
“Police Department” means the Police Department of the City of Lake Elsinore.
“Tow truck operator” means a towing company and the owner(s) and/or managing employee(s)
of a towing company.
Page 2 of 5
12.14.030 Tow truck operator franchise.
The City Council may at its discretion, by the adoption of a resolution or ordinance, grant a
nonexclusive franchise to a tow truck operator (“franchisee”) to provide towing services to the
City under and pursuant to the provisions of this chapter.
12.14.040 Nonexclusive franchise.
A. All franchises granted to franchisees pursuant to this chapter shall be nonexclusive and shall
be for a term to be specified by the City Council in the resolution granting a franchise hereunder
and in the franchise agreement between the City and the franchisee.
B. No provisions of this chapter shall be deemed to require restricting the number of franchises
to one or any particular number, and no provision of this chapter shall be deemed to require the
City Council to grant any franchise if the City Council determines that the grant of any such
franchise is not in the best interest of the City and the public.
C. All franchisees shall be subject to the terms and conditions specified in this chapter, as well
as any terms or conditions specified in the resolution granting the franchise and the franchise
agreement.
D. In granting any tow truck operator franchise, the City Council may prescribe such other terms
and conditions, not in conflict with this chapter, as are determined by the City Council to be in
the best interest of the City and the public.
12.14.050 Selection of franchisees.
A. The selection of the franchisees shall be done through a competitive selection process. Upon
any opening(s) on the rotation list, the City Manager shall issue a notice of request for
qualifications (RFQ) to solicit interested tow truck operators. The RFQ shall be posted on the
City’s website and either: (1) posted on a website devoted to procurement services, bid and
vendor management such as Planetbids.com, or (2) published in a newspaper of general
circulation in the City. Responses to the RFQ shall be due no earlier than 20 days following
posting and/or publication of the notice as required herein.
B. The Police Chief, in coordination with the City Manager or designee, shall evaluate the
qualifications of the tow truck operators responding to the RFQ. No later than 60 days after
receipt of the responses to the RFQ, the Police Chief shall submit to the City Council for
consideration the qualifications of the tow truck operator(s) that he/she deems most qualified
together with a franchise agreement as provided in LEMC 12.14.110.
C. With respect to the selection process as provided herein, the Police Chief shall determine the
number of franchisees needed to provide towing services to the Police Department. In
determining the required number of franchisees, the Police Chief may consider the following
factors:
1. The operational needs of the Police Department;
2. Population growth;
3. The number of currently authorized franchisees and their average response time;
4. Administrative burdens imposed by the number of franchisees to be included in a rotation list;
and
Page 3 of 5
5. Such other reasonable factors as determined by the Police Chief.
12.14.060 Rotation system.
A. The tow truck operators who obtain a franchise pursuant to this chapter shall provide towing
service to the City pursuant to the rotation system established by the Police Chief.
B. Nothing shall prohibit a Class B, C, or D operator from maintaining a place on a lighter class
rotation list. Regardless of the class of tow truck, charges shall not be more than the class of
vehicle towed or serviced, except when recovery operations required a larger class of truck.
12.14.070 Conditions on franchises.
Any tow truck operator that obtains a franchise pursuant to this chapter shall:
A. Comply with the Lake Elsinore Municipal Code.
B. Have an office and storage facility in the same location within the City’s boundaries, with a
sign posted including the company name, address, phone number and hours of operation, to be
clearly visible from the roadway. Unless otherwise authorized under the franchise agreement,
such storage facilities shall contain a minimum of 25 vehicle exterior storage spaces and a
minimum of four secured vehicle storage spaces. The secured vehicle storage spaces shall be
for the purpose of securing vehicle for evidence at the request of the Police Department.
Secured vehicles shall be transported to and from the storage facility to the police station at no
charge to the City or the Police Department.
C. Maintain a sign listing the rates and charges of all towing and storage services offered. Such
sign shall be conspicuously posted in the office or other location clearly visible where customer
financial transactions take place.
D. Furnish each owner of an automobile impounded by the tow truck operator with a fully
itemized billing.
E. Maintain minimum operating hours for storage facilities of Monday through Friday, 8:00 a.m.
to 5:00 p.m., except holidays.
F. Respond to Police Department calls 24 hours a day, seven days a week, within the response
time as established by the Police Chief, but generally within 20 minutes. The franchisees shall
promptly advise the Police Department as to any anticipated delay in arrival. In the event of a
delay, the Police Department may elect to contact another franchisee for service.
G. Provide appropriate insurance as determined by the City Manager and agree to protect,
indemnify, defend and hold harmless the City and the Police Department from all claims,
demands or liability arising out of or encountered in connection with its agreement with the City
or the performance of work in preparation for the towing operation, or claims, demands and
liability occurring during the towing and subsequent storage and maintenance activities whether
such claims, demands or liability are caused by the tow service or its employees or agents.
H. Conduct its business in an orderly, ethical, businesslike manner, and use reasonable means
to obtain and keep the confidence of the motoring public. Franchisee shall be responsible for
the acts of its employees and agents while on duty and for damage to towed vehicles while in its
possession.
Page 4 of 5
I. Comply with all applicable Federal, State and local regulations for providing towing service
and be a currently approved operator for the California Highway Patrol rotational tow list.
J. Comply with the terms and conditions of the franchise agreement.
12.14.080 Rates.
A. Franchisee shall not charge rates in excess of 115 percent of the schedule of rates for towing
established by the California Highway Patrol for the Riverside County area.
B. Storage fees shall be charged by calendar day except that vehicles stored eight hours or less
shall be charged no more than one day storage.
12.14.090 Vehicle impound cost recovery fee.
A. The vehicle impound cost recovery fee (“VICR fee”) is equal to one hour of Police Officer
time at the current intermediate deputy rate in effect at the time of the release of the impounded
vehicle. This rate is annually reviewed, updated and approved by the Board of Supervisors for
the County of Riverside
B. The City hereby establishes a VICR fee, payable when a registered owner or a legal owner
seeks the release of a vehicle which the Police Department has impounded.
C. A registered owner who redeems an impounded vehicle or requests its release from a
franchisee’s storage facility shall first pay to the Police Department the VICR fee.
D. The Police Department may waive the VICR fee due to extenuating circumstances. It is not
the intention of the City nor the Police Department to penalize victims. Circumstances under
which the VICR fee may be waived include the impounding of recovered stolen or embezzled
vehicles, and vehicles impounded due to driver injury or incapacitation.
12.14.100 Franchise fees.
Any tow truck operator granted a franchise pursuant to the provisions of this chapter shall pay to
the City franchise charges and fees as may be determined by separate resolution of the City
Council. Such fee shall not exceed the City’s annual cost of administration and enforcement of
this chapter.
12.14.110 Franchise agreements.
All franchises granted by the City Council pursuant to this chapter shall be memorialized in a
written franchise agreement between the franchisee and the City and approved by resolution of
the City Council. The franchise granted therein shall be nontransferable unless prior consent is
obtained from the City. The franchise agreement shall provide for immediate suspension or
termination of the franchise granted under this chapter in event that the franchisee fails to
comply with the provisions of this chapter and/or the franchise agreement.
12.14.120 Additional services to be provided.
Franchisee shall provide to the City, at no charge, the services needed to facilitate the City’s
vehicle abatement program. Additionally, the franchisee will provide emergency response to aid
and service City and Police Department vehicles that are one ton or less, within a reasonable
radius no greater than one mile beyond the City’s boundaries, at no cost to the City or Police
Department.
Page 5 of 5
12.14.130 Authority to maintain City towing operations and towing yard.
Nothing in this chapter shall be construed as restricting or prohibiting the City from conducting
its own towing operations or maintaining its own towing yard, either in lieu of, or in addition to,
any franchise awarded pursuant to this chapter.