Salinas Municipal Code § 20-177 Activities that are unlawful unless authorized—Activities not covered

For the purposes of this article, certain terms used herein are defined as follows:

"Chief of police" means the police chief of the city or authorized representative.

"City" means the City of Salinas.

"City council" means the city council of the City of Salinas.

"Franchisee" means any entity granted a franchise by the city pursuant to this article.

"Police towing" means and includes towing of vehicles to impound or to other locations, the storage of such vehicles as ordered and designated by authorized members of the Salinas police department and all services required to transport, secure and maintain vehicles and their contents.

(Ord. No. 2445 (NCS), § 1.)

(a) It is declared and determined that the business of police towing affects the health, safety and public welfare of the residents of the city. The custody and control of vehicles owned by the public which are towed and/or stored at the order of the Salinas police department for purposes of impound or facilitation of traffic flow require a high degree of proficiency with the procedures established by the California Department of Motor Vehicles and a high level of trust and confidence by the public and the police department in the facilities used for storage and the personnel and equipment utilized for towing vehicles to impound, many of which may be of high value, may be or contain evidence of criminal activity, and which, if improperly towed or stored, may result in legal action against the city. The further responsibility of the police towing franchisee is to collect only the prescribed fee from owners of impounded vehicles and to release said vehicles promptly and efficiently, but only upon the evidence of proper documentation requires that those towing contractors who have demonstrated that they possess the facilities, control systems and knowledgeable personnel to protect the interests of the city and vehicle owners. Therefore, it is the purpose of this article to regulate this service to the police department and to minimize any adverse effects upon the citizenry.

(b) It is recognized that the city is required to adopt and implement a mechanism to promote the safe and efficient towing, to impound vehicles and that the city may impose fees to fund the cost of this effort and to augment the funds available for purposes of law enforcement.

(c) The city having elected to implement the home rule provisions of Article XI of the Constitution of the State of California as to municipal affairs and the granting of nonexclusive franchises of the nature referred to herein as being within the class of actions designated to "municipal affairs," declares that the provisions of the article, together with the provisions of the Charter of the city, shall constitute the exclusive procedure for the grant of franchises for conducting police impound towing and storage services.

(Ord. No. 2445 (NCS), § 1.)

Except as specified in this article, it is unlawful for any person to solicit or perform the business of police towing in the city unless:

(a) A franchise therefore has first been granted pursuant to the provisions of this article and such franchise is in full force and effect; and

(b) A written franchise agreement therefore has been executed between such person and the city and such agreement is in full force and effect; or

(c) This article shall not apply to towing, repair or storage services performed for or made available to members of the public by any person.

(Ord. No. 2445 (NCS), § 1.)

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 towing services for purposes of impoundment within the city.

(Ord. No. 2445 (NCS), § 1.)

(a) All franchises granted to persons pursuant to this article shall be nonexclusive.

(b) All nonexclusive franchises shall be subject to the terms and conditions specified in the city Charter and in this article, in the resolutions and ordinances granting the franchise, in the terms and conditions of the franchise 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 article, as in the judgment of the city council are in the public interest.

(Ord. No. 2445 (NCS), § 1.)

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 city and/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;

(b) 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;

(c) 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;

(d) 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;

(e) Proof of insurance in a form acceptable to the city;

(f) Such other and further information as the chief of police may reasonably require to evaluate and process the proposals.

(Ord. No. 2445 (NCS), § 1.)

(a) Upon receiving the proposal(s) for a franchise under the provisions of this article, 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 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. No. 2445 (NCS), § 1.)

(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). The nonexclusive franchise shall be granted or denied, based upon compliance with this article. 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 article.

(Ord. No. 2445 (NCS), § 1.)

No franchise granted pursuant to this article 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 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 article and any other terms and conditions imposed by the chief of police.

(Ord. No. 2445 (NCS), § 1.)

The franchise agreement shall provide that the franchisee shall indemnify, hold harmless, release and defend the city, its city council and each member thereof, and its officers, employees, commission members and representatives, from and against any and all liability, claims, suits, costs, expenses, fines, judgments, settlements, charges or penalties whatever, including reasonable attorneys fees, regardless of the merit or outcome of the same arising out of, or in any manner connected with, any or all of the operations or services authorized, conducted or permitted under a nonexclusive franchise agreement granted under this article. Tow service operators shall sign an affidavit in a form acceptable to the city attorney that confirms their understanding of and agreement to the obligations imposed under this section, as a part of the proposal for a franchise hereunder.

(Ord. No. 2445 (NCS), § 1.)

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 article. 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 article and shall be sufficient grounds for temporary suspension or termination of a nonexclusive franchise.

(Ord. No. 2445 (NCS), § 1.)

The term of any franchise granted under the provisions of this article shall be for one year with annual renewal options of up to four additional one-year terms, unless earlier terminated under the terms of this article.

(Ord. No. 2445 (NCS), § 1.)

A renewal option granted a franchisee may be exercised by the franchisee's timely filing a renewal application, upon forms supplied by chief of police. The renewal option shall be deemed granted unless, no later than thirty days from the date of filing the renewal application, the chief of police has found said franchisee not in compliance with the terms of this article, the franchise, the franchise agreement or other provision of law applicable to the towing services provided pursuant to the franchise. Upon such findings, the chief of police may deny the renewal option or grant it conditionally and, if denied, the franchise and all future options shall terminate. In this event, the franchisee may appeal such termination to the city council.

(Ord. No. 2445 (NCS), § 1.)

(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, at the discretion of the chief of police, to the party named and to the address given on the proposal pursuant to which such nonexclusive franchise was issued. 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. The city council shall have the right to terminate any nonexclusive franchise granted pursuant to this article if the city council finds, based upon a preponderance of the evidence, after a public hearing, that:

(1) The franchisee has failed to comply with, or to do anything required of the franchisee by this article, or that franchisee has failed to pay the franchise fees required under this article or violated any provision of the ordinance granting the nonexclusive franchise, or any provision of the nonexclusive franchise 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;

(2) Should any provision of this article become or be declared to be invalid, the council can expressly find that such provision constitutes a material consideration to the grant or continuation of such nonexclusive franchise.

(Ord. No. 2445 (NCS), § 1.)

The chief of police may temporarily suspend any nonexclusive franchise without a hearing under the following circumstances: whenever the continued operation by the franchisee would constitute a danger to public health, safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve, whenever there is a failure to keep in full force and effect any applicable licenses or permits required by federal, state or local law or whenever the franchisee has failed to observe or has defaulted in any material term of the franchise or franchise agreement including, without limitation, timely payment of franchise fees. The notice of temporary suspension may be personally delivered to the party named and to the address given on the proposal pursuant to which such franchise was issued, or, mailed by certified mail to the party named at the address given on the proposal pursuant to which such franchise was issued. The temporary suspension is effective upon the earlier of either receipt of said notice or the expiration of five days from the date of mailing. The notice of temporary suspension shall include a notice of the date and period of suspension and the basis for the suspension as referenced in Section 20-188 of this chapter.

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. No. 2445 (NCS), § 1.)

Any nonexclusive franchise granted pursuant to this article is a privilege to be held in trust by the original franchisee. Such nonexclusive franchise shall not be sold, leased, transferred, assigned, or otherwise disposed of, either in whole or in chapter, 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 it may prescribe.

(Ord. No. 2445 (NCS), § 1.)

(a) Each franchisee granted a franchise pursuant to this article 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 Consume. Price Index of the San Francisco Bay Area or other applicable index.

(b) Franchise fees shall be due and payable on July 1. 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 franchisee shall pay the required franchise fee to the city's director of finance.

(d) The franchise fee established by resolution shall be a current, conservative and reasonable estimate of the costs of the police department to administer the franchise tow 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.

(e) 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 article.

(f) The payment to the city by the franchisee pursuant to this article shall be in addition to any license fee or business tax prescribed by the city for the same period.

(Ord. No. 2445 (NCS), § 1.)

In order to provide a workable and comprehensive policy regarding the towing and/or storage of abandoned, disabled, stored or impounded vehicles from public or private property, the chief of police is hereby authorized to promulgate and issue, by general order, and amend, if necessary, written rules and regulations governing the following but by no means exclusive subjects: (a) establishment of a rotational list of towing operations; (b) requirements and standards for placement on the rotational tow list; (c) requirements and standards for continued placement on the rotational tow list; (d) grounds for, and procedures governing, removal from the rotational tow list; and (e) any other pertinent and relevant matters pertaining to the administration of a rotational tow list.

Such rules and regulations shall have the force and effect of law, and failure to obey same shall be deemed a violation of the provisions of this article for purposes of renewal, suspension or revocation of placement on the rotational list.

(Ord. No. 2445 (NCS), § 1.)

All ordinances, municipal code sections, resolutions, city council motions, and all actions of all city boards and commissions to include, but not limited to, Resolution 17741, Rotational Tow List Policy, and Resolution 10772, Policy Limiting Rotational Tow List, in conflict herewith are hereby repealed.

(Ord. No. 2445 (NCS), § 1.)