Part 6 — MINIMUM QUALIFICATIONS AND OPERATION OF FRANCHISE

In addition to the minimum qualifications listed in this Part 6 for grant of a franchise, the council may specify and require additional standards and/or qualifications by resolution, ordinance, or contract.

(Ord. 20601.)

The council shall require, as a condition for grant of a franchise, the payment of any fees which it deems proper to cover the costs for operation of a communications center, any inspections of business premises, storage yards, or records of a grantee or an applicant, or for any other purpose deemed proper by the council.

(Ord. 20601.)

In order to maintain effective and efficient dispatch of tow cars on official police business, the council may:

Award a contract for the operation of central communications center, which center shall have the responsibility for dispatching tow cars on official police business in an orderly manner prescribed by the terms of the contract, and which center shall have one phone number to be used by the police in calling for tow car services, said center to operate on a twenty-four-hours-a-day, seven-days-a-week basis, all costs associated therewith to be paid by fees from any and all grantees; or

Provide for the operation of a central communications center for the dispatch of tow cars on official police business by the City of San José, all costs associated therewith to be paid by fees from any and all grantees.

The central communications center shall dispatch tow cars according to directions as provided in Section 15.36.635.

(Ords. 20601, 22282.)

Prior to the grant of franchises pursuant to this chapter, the council shall, by resolution, divide the city into zones of operation for the conduct of police-generated tows by grantees.

Any zones established pursuant to this section may be redivided from time to time as provided in Section 15.36.635.

(Ords. 20601, 22282.)

Whenever the council determines that the redivision of zones of operation for the police-generated tows under franchises granted pursuant to Section 15.36.630 is in the public interest, it may, by resolution, after one or both of the following:

A.

The boundaries of any zone; or

B.

The number of zones.

(Ord.\22282.)

A.

The council may in its sole discretion determine both the number of zones into which the city is divided or redivided and the boundaries of said zones so as to assure the efficient completion of police-generated tows.

B.

Any franchise granted pursuant to this chapter is nonexclusive. The council may in its sole discretion determine the number of grantees that may operate in any zone so as to assure the efficient completion of police-generated tows.

(Ord. 22282.)

A.

All applicants under this chapter shall, at the time of application for franchise or within such time as may be specified in the various subsections hereunder, meet the following minimum qualifications:

Maintain at least three tow trucks which are power operated and equipped in accordance with the Vehicle Code of the state of California, and equipped with two-way radios, which tow trucks must be registered in the name of the tow car company owner; provided that a tow car company owner with a minimum of two such tow trucks shall be permitted to apply for a grant of franchise. If a tow car company owner with a minimum of two tow trucks is granted a franchise pursuant to this chapter, said grant shall be conditioned on the requirement that said owner obtain another tow truck for a minimum total of three tow trucks within one hundred eighty days from the date of the grant of franchise, or said grant of franchise shall be canceled pursuant to the provisions of Section 15.36.510 of this chapter.

Have conducted a tow car business in the City of San José for a minimum period of one year, with a valid tow permit subsisting throughout said one-year period, and with a primary office facility and the required storage facilities located within the City of San José throughout said one-year period; said valid permit shall be maintained throughout the term of the franchise, and the primary office facility and storage facilities shall not be moved outside the city limits during the term of the franchise, nor shall the primary office facility and the storage facility be moved outside of the zone for which the grantee was granted a franchise unless consent of the council is obtained in writing. Any unauthorized relocation of the primary office facility and/or storage facility shall be grounds for cancellation of the franchise.

Maintain a primary office facility and a storage yard within the zone in which it proposes to conduct a franchise.

Have no more than one company occupying and/or using the same primary office facility and storage facility, unless both companies occupying said office facility and storage facility are applicants for franchises and unless both are subsequently granted franchises.

Maintain an adequately equipped storage facility available for twenty-four-hours-a-day, seven-days-a-week storage, which facility meets the requirements of Section 15.36.650.

Have an employee at the primary office facility twenty-four hours a day, seven days a week, or have an employee available who can arrive at the primary office facility within twenty-five minutes of a police or citizen request, in order to assure that a citizen may claim his vehicle at any time and properly to protect police-impounded vehicles.

Guarantee response to a dispatch order for police-generated tows within twenty-five minutes of receiving the order from the central communications center.

Have no outstanding or unresolved police or citizens' complaints against it at the time of application, or, subsequent to grant of a franchise, the grantee shall resolve all citizens' or police complaints regarding the conducting of its towing and storage business within ninety days or its franchise shall be temporarily suspended, or canceled, upon a determination by the chief of police, pursuant to Section 15.36.510, that grantee has not resolved police or citizens' complaints against it.

Comply with all provisions of Chapter 6.66 of Title 6 of the San José Municipal Code and with any other resolutions or ordinances regulating the conduct of a tow car business, and with such other rules or regulations as the council may specify in addition to those in this chapter for a grant of franchise.

B.

The minimum qualifications listed in subdivision A, above, shall be applicable throughout the grant of franchise to any grantee.

C.

All grantees of franchises under this chapter shall, within thirty days of accepting a grant of franchise, place the number of the zone for which a franchise has been granted on each tow truck which is used for conducting police-generated tows; said 9092 number shall be at least six inches in height and shall be painted on each door of said tow truck. For the purpose of conducting police-generated tows, said tow trucks shall be restricted to the zone for which a franchise was granted, unless said grantees have been requested to provide services temporarily in connection with police-generated tows in another zone pursuant to Section 15.36.190C.

(Ord. 20601.)

A.

All applicants or grantees under this chapter shall maintain the following primary lot storage facilities, to be inspected at the time of application by the chief of police to determine compliance with these requirements and, if a franchise is granted, at various times thereafter to ensure compliance:

Maintain a paved primary lot sufficiently large to store at least twenty-five automobiles with at least two feet of clearance between the sides of all vehicles and at least one-foot clearance between the front or rear end of any vehicle and the front or rear end of another vehicle, which primary lot shall be enclosed by a substantial chain link fence or wall at least six feet in height and shall be provided with at least one gate or door; the bottom edge of the fencing to be not more than two inches above the paved parking surface of the enclosed primary lot. The top edge of the fence or wall enclosure, including all gates or doors thereto, for open areas or open areas provided with roof shall be equipped with not less than two barbed wires installed so as to discourage access over the top of the fence or wall.

Maintain a primary office facility at the primary storage lot which shall afford the public shelter during rain or bad weather, which shall have sufficient space and furniture to accommodate the public, and which shall have a restroom and telephone available for public use. Applicants without such office facilities may, if granted a franchise pursuant to this chapter, provide a temporary office facility for a period not to exceed one hundred eighty days from the date of grant of a franchise, until a permanent office facility is constructed which meets the aforesaid requirements.

Said primary lot shall be lighted during hours of darkness.

B.

All police-impounded vehicles, vehicles held for investigation, and recovered vehicles shall be stored in the primary lot and shall not be moved until authorized by a police investigator. Vehicles with police holds shall not be lien sold. Abandoned vehicles shall be stored in the primary lot until checked and cleared by the police department, and may be stored in a secondary lot after such vehicles have been so cleared.

C.

All applicants or grantees under this chapter may maintain secondary lots, subject to inspection by the chief of police to determine compliance requirements stated hereunder and, if a franchise is granted, at various times thereafter to ensure compliance, which said lots need not be located in the zone for which a franchise is granted and which said lots shall meet the following requirements:

Secondary lots shall have a smooth, level surface of hard rock or better quality paving.

Secondary lots shall be enclosed by a substantial chain link fence or wall at least six feet in height and shall be provided with at least one gate or door, with the bottom edge of any fence to be not more than two inches above the paved parking surface of the enclosed primary lot and the top edge of the fence or wall enclosure, including all gates or doors thereto, to be equipped with not less than two barbed wires installed so as to discourage access over the top of the fence or wall.

Secondary lots shall be lighted during hours of darkness.

D.

Grantee shall be responsible for the protection of police-impounded vehicles in their possession until the vehicles have been released to their owners or disposed of through legal process, and shall be responsible for safeguarding all articles left in the impounded vehicles. All grantees shall comply with police regulations regarding the inventory or removal of property found in police-impounded vehicles.

(Ord. 20601.)

A.

No applicant for the grant of franchise under this chapter shall be granted franchises to conduct police- generated tows in more than one zone unless said applicant maintains a primary office facility as defined in Section 15.36.120, a paved primary lot as defined in Section 15.36.650, and the number of tow trucks required by Section 15.36.640, in each and every zone for which an application for a grant of franchise is made.

B.

No grantee under this chapter shall be permitted to conduct police-generated tows in more than one zone, even though said grantee was granted franchises in more than one zone pursuant to A, above, if said grantee fails to maintain throughout the term of the franchise a primary office facility as defined in Section 15.36.120, a paved primary lot as defined in Section 15.36.650, and the number of tow trucks required by Section 15.36.640, in each and every zone for which a franchise was granted.

(Ord. 20601.)

A.

All grantees under this chapter, except those granted franchises for the acceptance of VIN tows only, shall be required to accept any police-generated tow of an abandoned vehicle, provided that tows of abandoned vehicles will only be required during regular business hours.

B.

Upon a determination by the chief of police, after a hearing conducted pursuant to Section 15.36.510, that a grantee has refused to accept a tow of an abandoned vehicle when such grantee was able to accept other police-generated tows, the chief of police shall:

Suspend the grantee from operation of its franchise for thirty days for the first offense within a calendar year;

Suspend the grantee from operation of its franchise for ninety days for the second offense occurring within one year of the first offense;

Refer the matter to the council for a determination as to cancellation of the franchise in accordance with Section 15.36.380 for the third offense within one year of the first offense.

(Ord. 20601.)

All grantees under this chapter shall respond to police-generated tows within twenty-five minutes of receiving notice of dispatch from the central communications center. Upon a determination by the chief of police that a grantee failed to respond reasonably within the allotted time, after a hearing has been held pursuant to Section 15.36.510, the chief of police shall assess the following penalties:

For the first offense within a calendar year, the grantee shall be suspended from its franchise for a thirty- day period.

For the second offense within a year of the first offense, the grantee shall be suspended from its franchise for a ninety-day period.

For the third offense within one year of the first offense, the matter shall be referred to the council for a determination as to cancellation of the franchise in accordance with Section 15.36.380.

(Ord. 20601.)

The grantee shall maintain such insurance as is required under Section 15.36.330 of the San José Municipal Code throughout the term of its franchise. The council may require such other insurance policies and/or coverages as it deems necessary or as may be recommended to the council by the city risk

manager. Failure to maintain adequate insurance at any time during the franchise shall result in immediate suspension of the franchise, pursuant to the provisions of Section 15.36.330.

(Ord. 20601.)

All grantees of a franchise under this chapter shall keep and maintain complete and accurate records of all police-generated tows and services provided in connection therewith, which such record shall include vehicle license number, vehicle identification number, vehicle description, date and time towed, location from which towed, fees charged for all services provided, disposition of vehicle and/or date of release to towee, and number of police-generated tows received per month. All such records shall be made available at any time pursuant to request by the chief of police or city auditor.

(Ord. 20601.)

A.

All fees or charges for services rendered pursuant to a police-generated tow shall be billed to the owner or party whose vehicle was towed, and the city shall not be liable to grantees for any fees, charges, or costs incurred by grantees for any such services provided.

B.

All fees or charges for services rendered pursuant to a police-generated tow shall be billed in amounts not to exceed rate resolutions adopted by the council.

C.

Grantee shall release such vehicles to their owners, operators or agents upon the receipt of: (a) United States currency; (b) personal check; or (c) MasterCard or Visa.

With reference to personal checks, the grantee may require that:

a.

Checks be personalized

b.

It be written upon a California bank;

c.

The person presenting the check show a valid California driver's license or a valid California identification card; and

d.

Check is not more than one hundred dollars.

With reference to credit cards, the grantee may require:

a.

An accompanying valid California driver's license or valid California identification card;

b.

Verification from bank or credit referral service that the credit card is valid and authorizing the charge.

(Ords. 20601, 21873.)

A.

The council may terminate any franchise granted pursuant to the provisions of this chapter if it finds, in accordance with Section 15.36.380, that the grantee has failed to comply with any terms of the franchise, provisions of the city's Charter, or provisions of this chapter.

B.

The chief of police shall suspend or refer the matter of cancellation of the franchise to the council in accordance with Section 15.36.680 when a grantee fails to respond to a police-generated tow within the allotted time.

C.

The chief of police shall suspend the franchise or refer the matter of cancellation of the franchise to the council in accordance with the provisions of Section 15.36.670 when a grantee fails to conduct an abandoned vehicle tow.

D.

The franchise shall be automatically suspended or canceled whenever the tow car business permit of a grantee is suspended or revoked pursuant to the applicable provisions of the municipal code governing tow car business permits.

E.

The franchise shall be deemed automatically suspended when the grantee fails to keep in full force and effect adequate insurance as required by Section 15.36.330.

F.

The council may terminate or cancel any franchise granted pursuant to the provisions of this chapter if it finds, in accordance with Section 15.36.380, that continued operation of said franchise or franchises would violate public policy or any federal, state or local laws.

(Ords. 20601, 21453.)