South Pasadena Municipal Code Art. VIII Police Tow Service Franchises

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

“Franchise” means any entity granted a franchise by the city pursuant to this article.

“Franchise agreement” means an agreement between the city and a franchise for the purpose of providing towing service as provided in this article.

“Nonconsensual police towing services” 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.

“Police chief” means the chief of police of the police department of the city of South Pasadena or their designee.

“Police department” means the police department of the city of South Pasadena.

“Tow truck operator” means a towing company and the owner(s) and/or managing employees of a towing company. (Ord. No. 2330, § 1 (part), 2019.)

The purpose of this article 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 the best possible tow truck 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 South Pasadena 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 agreement required under this article, are intended to provide a fair and objective method of selecting qualified tow truck operators to ensure that towing providers and drivers selected provide the police department and the public with prompt, safe, and comprehensive nonconsensual police towing services using the latest in towing technology and vehicle towing and storage safely.

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. No. 2330, § 1 (part), 2019.)

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

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

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

This article 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.

Nothing in this article 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 agreement that is awarded pursuant to this article. (Ord. No. 2330, § 1 (part), 2019.)

(a) The city council may at its discretion, by the adoption of a resolution or ordinance, grant a nonexclusive franchise to a tow truck operator to provide nonconsensual police towing services to the city under and pursuant to the provisions of this article as a franchisee. All franchises granted to franchisees pursuant to this article shall be nonexclusive and shall be for a term to be specified in the franchise agreement between the city and the franchisee.

(b) No provisions of this article shall be deemed to require restricting the number of franchises to one or any particular number, and no provisions of this article 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 franchises shall be subject to the terms and conditions specified in this article, as well as any terms or conditions specified in the resolution granting the franchise and the franchise agreement. In granting any tow truck operator franchise, the city council may prescribe such other terms and conditions, not in conflict with this article, as are determined by the city council to be in the best interest of the city and the public. (Ord. No. 2330, § 1 (part), 2019.)

(a) All franchisees selected to provide nonconsensual police towing services shall enter into a franchise agreement with the city. The franchise agreement shall be in a form approved by the city attorney and shall be executed within 30 days after a selection as a franchisee. The franchise agreement shall provide that the terms and conditions of this article shall be applicable for the entire term of the franchise.

(b) Any franchise agreement granted pursuant to this article 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. (Ord. No. 2330, § 1 (part), 2019.)

(a) The police chief may suspend the franchise agreement for the reasons, and pursuant to the procedures, set forth in the terms of the franchise agreement entered into with a tow truck operator, or for a violation of the terms of this article, including, but not limited to, a violation of the franchise agreement, a failure to maintain the minimum levels and standards of liability insurance for any period of time, or the failure to comply with any federal, state, or local law.

(b) The police chief 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.

(c) A suspension longer than 30 days may be appealed in writing to the city manager within 15 calendar days of the day of the police chief’s notice of temporary suspension. In the event a timely appeal is filed, the suspension shall not become effective until a final decision has been rendered by the city manager. If no appeal is filed, the suspension shall become effective upon the expiration of the period for filing an appeal.

(d) The city manager shall set a date, time and place for a hearing on appeal and shall notify the appellant of such date, time and place of the hearing, which shall be scheduled a minimum of 10 calendar days from the date of the written notice, which date may be continued at the sole discretion of the city manager. The city manager shall preside over the hearing on appeal. The city manager shall render a written decision within 30 calendar days from the date of the appeal hearing. The decision of the city manager or designee shall be final. (Ord. No. 2330, § 1 (part), 2019.)

(a) Each tow truck operator granted a franchise agreement 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 by the city council from time to time.

(b) Franchise fees shall be due and payable in accordance with the terms and conditions contained in the franchise agreement. 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) By resolution, the city council establishes the 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 services program.

(d) In the event of the suspension or termination of a franchise agreement, 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.

(e) 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. 2330, § 1 (part), 2019.)

In the event of multiple franchisees selected by the city council, the police chief shall develop a rotational list of franchisees selected to provide nonconsensual police towing services to the city. The franchisee 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 police chief. Franchisees selected to provide nonconsensual police towing services shall abide by the rotation system established by the police chief. (Ord. No. 2330, § 1 (part), 2019.)