Chapter 10.18
FRANCHISES FOR POLICE TOWING SERVICES
10.18.020 Purpose and declarations.
10.18.030 Franchise required to provide police towing services.
10.18.040 City council authority to grant nonexclusive franchises.
10.18.050 Nonexclusive franchise—Terms and conditions.
10.18.060 Request for proposals.
10.18.080 Grant or denial of franchise.
10.18.090 Requirements for franchise.
10.18.100 Franchise tow services agreement.
10.18.110 Indemnification of city.
10.18.120 Liability insurance.
10.18.140 Termination of nonexclusive franchise by the city council.
10.18.150 Temporary suspension by chief of police.
10.18.160 Franchise transfer or assignment.
10.18.180 Tow rotational list.
10.18.190 Reservation of authority to conduct towing operations.
10.18.010 Definitions.
For the purposes of this chapter, certain terms used herein are defined as follows:
"Franchisee" means any entity granted a franchise by the city pursuant to this chapter.
"Nonconsensual police towing" means the towing and storage of vehicles as ordered and designated by authorized members of the police department, and all related services required to transport, secure and maintain such vehicles and their contents, in situations where the vehicle owner is unable or unwilling to consent to having the vehicle towed. (Ord. 1323 § 1 (part), 2008).
10.18.020 Purpose and declarations.
The purpose of this chapter is to establish towing regulations to govern the provision of nonconsensual police towing services to the city’s police department, consistent with state and federal laws, as well as the public health, safety and welfare. A further purpose is to ensure that the best possible towing operators are selected to participate in the city’s rotational tow program to assist the police department in conducting efficient police investigations and provide the citizens of Marysville with prompt, safe and comprehensive towing services.
These regulations are not intended to govern situations where towing has been requested by vehicle owners or private property owners, except as may be permitted by law. Instead, these regulations, along with the terms and conditions of the franchise tow services agreement required under this chapter, are intended to provide a fair and objective method of selecting towing service providers from among qualified firms to ensure that towing providers and drivers selected provide the police department and the public with prompt, safe and comprehensive towing services using the latest in towing technology and vehicle towing and storage safety.
It is recognized that the city is authorized by state law to adopt and implement a mechanism for safe and efficient towing and vehicle impoundment and that the city may impose fees to recover its actual and reasonable costs incurred in connection with the towing program. (Ord. 1323 § 1 (part), 2008).
10.18.030 Franchise required to provide police towing services.
Except as specified in this chapter, it is unlawful for any person to solicit or perform the business of nonconsensual police towing in the city unless:
(a) A franchise therefor has been granted pursuant to the provisions of this chapter and such franchise is in full force and effect; and
(b) A written franchise tow services agreement therefor has been executed between such person and the city and such agreement is in full force and effect.
This chapter shall not apply to towing, repair or storage services performed for or made available to members of the public directly, when not in response to police department requests. (Ord. 1323 § 1 (part), 2008).
10.18.040 City council authority to grant nonexclusive franchises.
The city council may and is empowered to grant to any qualified person a nonexclusive franchise to engage in the business of towing vehicles in response to police requests for nonconsensual police towing services. The city council may establish by resolution the maximum number of franchises to be granted. (Ord. 1323 § 1 (part), 2008).
10.18.050 Nonexclusive franchise—Terms and conditions.
(a) All franchises granted to persons pursuant to this chapter shall be nonexclusive.
(b) All nonexclusive franchises shall be subject to the terms and conditions specified in the city charter and in this chapter, in the resolutions and ordinances granting the franchise, and in the terms and conditions of the franchise tow services agreement.
(c) In granting any franchise, the city council may prescribe such other and additional terms and conditions, not in conflict with the city charter or this chapter, as in the judgment of the city council are in the public interest. (Ord. 1323 § 1 (part), 2008).
10.18.060 Request for proposals.
Upon an opening for a tow service provider on the rotational tow list, the city clerk shall cause a notice to be published, in a newspaper of general circulation within the city, of a notice of request for proposals for police towing franchises. Any person who intends to operate as a franchisee shall submit a proposal to the city by filing with the chief of police, upon forms supplied by the city or in accordance with the request for proposals, a verified proposal containing, at a minimum, the following information:
(a) Name and address of the tow service operator. If the tow service operator is a partnership, the name and address of each partner shall be set forth in the proposal. If the tow service operator is a corporation, the proposal shall state the names and addresses of the corporation’s directors, main offices, major stockholders and associates, and the names and addresses of the parent and subsidiary companies;
(b) A list of all vehicles, including license plate numbers and vehicle identification numbers, to be used in connection with the franchise for which the proposal is filed;
(c) A list of all personnel assigned to perform services pursuant to such franchise accompanied by the California driver’s license number and license class of each such person;
(d) Proof of insurance in a form acceptable to the city;
(e) Any other information the chief of police may reasonably require to evaluate and process the proposals. (Ord. 1323 § 1 (part), 2008).
10.18.070 Public hearing.
(a) Upon receiving the proposal(s) for a franchise under the provisions of this chapter, the chief of police shall present the proposal(s) to the city council at a regularly scheduled meeting thereof.
(b) The city clerk shall cause notice of the proposal(s) and of the time and place of hearing on the proposal(s) to be published at least once in a newspaper of general circulation in the city at least ten days prior to the date set for the hearing. Additionally, the city clerk shall mail or deliver notice of the public hearing to each tow service operator that has submitted a proposal at least ten calendar days prior to the hearing.
(c) At the hearing on the proposal(s) for a franchise, the city council shall give all persons desiring to be heard a reasonable opportunity to present evidence or otherwise be heard in favor of, or in opposition to, the granting of a franchise to the tow service operator(s). At such hearing, the city council may require from the operator(s) such additional information as the city council may deem relevant and necessary. The hearing may be continued or adjourned to a stated time and place without the giving of further notice. (Ord. 1323 § 1 (part), 2008).
10.18.080 Grant or denial of franchise.
(a) Upon conclusion of the hearing on the proposals for a franchise, or within a reasonable time thereafter, the city council shall render its decision on the proposal(s). Any grant of a franchise by the city council may be subject to such terms, conditions, rules, regulations, restrictions and limitations as the city council deems necessary to protect the public health, safety or welfare.
(b) Should a franchise not be granted to a tow service operator, the city clerk shall issue written notice to the operator that its service will not be utilized for towing vehicles as described in this chapter. (Ord. 1323 § 1 (part), 2008).
10.18.090 Requirements for franchise.
No franchise granted pursuant to this chapter shall become effective unless and until all of the following requirements have been satisfied:
(a) The ordinance granting the franchise is effective;
(b) The tow service operator and the city have signed, by their duly authorized representatives, a franchise tow services agreement;
(c) The tow service operator has provided an acceptable list of the vehicles to be used to perform the services herein by registration or license number and the personnel assigned thereto as required herein;
(d) The tow service operator has provided evidence of compliance with the insurance requirements and any other terms and conditions of this chapter and any other terms and conditions imposed by the chief of police. (Ord. 1323 § 1 (part), 2008).
10.18.100 Franchise tow services agreement.
All franchisees selected to provide nonconsensual police towing services shall enter into a tow service agreement with the city. The written agreement shall be in a form approved by the city attorney and shall be executed within thirty days after selection as a franchisee. The written agreement shall provide that the terms and conditions of this chapter shall be applicable for the entire term of the franchise. (Ord. 1323 § 1 (part), 2008).
10.18.110 Indemnification of city.
The franchise tow services agreement shall provide that the franchisee shall indemnify, hold harmless, release and defend the city, its city council and each member thereof, and its officers, employees, commission members and representatives, from and against any and all liability, claims, suits, costs, expenses, fines, judgments, settlements, charges or penalties whatever, including reasonable attorneys’ fees, regardless of the merit or outcome of the same arising out of, or in any manner connected with, any or all of the operations or services authorized, conducted or permitted under a nonexclusive franchise tow services agreement granted under this chapter. (Ord. 1323 § 1 (part), 2008).
10.18.120 Liability insurance.
The city council shall establish by resolution the minimum levels and standards of liability insurance which must be maintained in order to apply for, to receive and to operate a franchise under this chapter. The city council shall also establish by resolution the manner in which compliance with the minimum standards is demonstrated. The failure to maintain the minimum levels and standards of liability insurance for any period of time is a violation of this chapter and shall be sufficient grounds for temporary suspension or termination of a nonexclusive franchise. (Ord. 1323 § 1 (part), 2008).
10.18.130 Term of franchise.
The term of any franchise granted under the provisions of this chapter shall be for such term as the city council shall set, unless earlier terminated under the terms of this chapter. (Ord. 1390 § 1, 2016: Ord. 1323 § 1 (part), 2008).
10.18.140 Termination of nonexclusive franchise by the city council.
(a) The city council shall have the right to terminate or suspend any franchise pursuant to this section.
(b) A notice of intent to terminate a nonexclusive franchise shall be personally delivered or mailed by certified mail to the franchisee or its designated agent. The notice shall state the grounds for termination and shall give the franchisee notice of a hearing before the city council thereon, which shall be convened no more than sixty days after the date of notice unless the hearing cannot reasonably be set within such time, in which case the hearing shall be set as promptly as may be practical. The hearing shall be conducted and closed, and decision rendered thereon, within sixty days after the date of the notice unless it cannot then reasonably be completed, in which case it shall be completed as promptly as may be practical.
(c) The city council shall have the right to terminate any nonexclusive franchise granted pursuant to this chapter if the city council finds, based upon a preponderance of the evidence, after a public hearing, that the franchisee has failed to comply with or to do anything required of the franchisee by this chapter, or that franchisee has failed to pay the franchise fees required under this chapter or violated any provision of the ordinance granting the nonexclusive franchise, or any provision of the nonexclusive franchise tow services agreement or any ordinance of the city or any law of the state or of the United States in connection with the performance of the nonexclusive franchise or that franchisee’s conduct demonstrates that the franchisee is unable to or unwilling to comply with the terms of the nonexclusive franchise. (Ord. 1323 § 1 (part), 2008).
10.18.150 Temporary suspension by chief of police.
The chief of police may suspend the towing services agreement for the reasons, and pursuant to the procedures, set forth in the terms of the franchise tow services agreement entered into with each towing carrier, or for a violation of the terms of this chapter, including, but not limited to, a violation of the franchise tow services agreement, a failure to maintain adequate liability insurance, or the failure to comply with any federal, state or local law.
The chief of police shall issue a notice of temporary suspension to the franchisee, which shall include the date and period of suspension and the basis for the suspension. The notice of temporary suspension may be personally delivered or mailed by certified mail to the franchisee.
A suspension longer than thirty days may be appealed administratively to the city manager, no later than ten days from the date of mailing of the notice of suspension. The notice of appeal of a suspension (greater than thirty days) shall be filed with the city clerk stating the reasons for appeal, containing all documentary evidence in support of the appeal, the name, address and telephone number of the appellant. The city manager shall review all the materials in support of the appeal and the reasons for suspension stated by the chief of police. Based upon all the information provided, the city manager shall affirm, modify or reverse the suspension. Notification of the decision on the appeal shall be mailed within thirty days of the receipt of all information relating to the appeal. The city manager’s decision on a suspension is the final administrative determination of the city on the appeal. (Ord. 1323 § 1 (part), 2008).
10.18.160 Franchise transfer or assignment.
Any franchise granted pursuant to this chapter is a privilege to be held in trust by the original franchisee. Such franchise shall not be sold, leased, transferred, assigned, or otherwise disposed of, either in whole or in part, whether by forced sale, merger, consolidation, bankruptcy, reorganization under bankruptcy laws or otherwise, without the prior consent of the city council as expressed by an appropriate ordinance or resolution. The consent of the city council shall be subject to such terms and conditions as the city council may prescribe. (Ord. 1323 § 1 (part), 2008).
10.18.170 Franchise fees.
(a) Each franchisee granted a franchise pursuant to this chapter shall pay a franchise fee to the city during the term of such franchise. The franchise fee shall be in an amount as set forth in a resolution adopted by the city council and may be adjusted annually pursuant to the Consumer Price Index or other applicable index.
(b) Franchise fees shall be due and payable on July 1st. Each payment shall be in accordance with the provisions of the resolution adopted by the city council pursuant to subsection (a) of this section.
(c) The franchise fee established by resolution shall be a current and reasonable estimate of the costs of the police department to administer the franchise tow services program. The franchise fees established by resolution may be revised periodically by the city council to reflect changes in the actual and reasonable costs to administer the franchise tow program.
(d) In the event of the suspension or termination of a franchise, the franchisee shall forfeit any fees paid to the city. Franchisee waives any and all claims or rights to collect back from the city any amounts collected by the city pursuant to this chapter.
(e) The payment to the city by the franchisee pursuant to this chapter shall be in addition to any license fee or business tax prescribed by the city for the same period. (Ord. 1323 § 1 (part), 2008).
10.18.180 Tow rotational list.
The chief of police shall develop a rotational list of franchisees selected to provide nonconsensual police towing services to the city. The towing carrier at the top of the list shall be on call to provide towing service to the city in accordance with the rotation system established by the chief of police. Franchisees selected to provide nonconsensual police towing services shall abide by the rotation system established by the chief of police. (Ord. 1323 § 1 (part), 2008).
10.18.190 Reservation of authority to conduct towing operations.
Nothing in this chapter shall be construed to restrict or prohibit the city from conducting its own towing operations or maintaining its own towing storage yard, either in lieu of, or in addition to, any franchise that is awarded pursuant to this chapter. (Ord. 1323 § 1 (part), 2008).