REPORT TO THE CITY COUNCIL
October 23, 2014
FROM: JERRY P. DYER, Chief of Police
Police Department
BY: ANDREW HALL, Captain
Police Department
SUBJECT
Title
HEARING pertaining to the establishment of a non-exclusive towing operation franchise for certain towing operators to participate in the Police Department's tow car rotation list
1. *** BILL NO. B-43 (Intro. 10/9/2013) (For adoption) - Granting to towing operators a non-exclusive franchise to participate in the Fresno Police Department's tow car rotation list and a final vote to approve the non-exclusive towing operation franchise
2. *** BILL NO. B-44 (Intro.10/9/2014) (For adoption) - Amending Article 17, Chapter 9 of the Fresno Municipal Code relating to tow trucks
Body
RECOMMENDATIONS
It is recommended that Council authorize the Chief of Police to execute a three-year Non-Exclusive Franchise Tow Agreement (the "Agreement") with several local tow operators for the towing and storage of vehicles impounded by the Fresno Police Department. It is also recommended that the Council amend Article 17, Chapter 9 of the Fresno Municipal Code ("FMC") as it relates to tow trucks.
EXECUTIVE SUMMARY
This Agreement with the tow operators will replace the existing non-exclusive franchise tow agreement which expires on December 27, 2014. This Agreement contains subtle changes, including modification of the provision related to changes in ownership or control of the tow operators. Such change now enables transfer of ownership/control to "immediate family members" as defined in FMC section 3-101(e). The other substantial change to the Agreement modifies a tow operator's appeal rights for major violations of the Agreement.
To facilitate such changes to the Agreement, Article 17, Chapter 9 of the FMC must be amended. Additional minor amendments to Article 17, Chapter 9 of the FMC have also been proposed for ease of reading comprehension.
The proposed Agreement and changes to Article 17, Chapter 9 of the FMC have been reviewed and approved by the City Attorney's office. The insurance requirements and indemnification provisions have been reviewed and approved by the City's Risk Manager.
BACKGROUND
This Agreement closely mirrors our previous non-exclusive tow franchise agreement that has been in effect for the last three years. This Agreement will continue to allow our local tow companies to release impounded vehicles directly from the tow yard seven days a week. The tow operators will continue to collect the City's administrative fees from the registered owners, or pay the administrative fees for those vehicles not picked up by their owners.
The Agreement also continues to mandate that tow companies utilize Dispatch and Towing Software ("DTS"). DTS allows the Police Department to manage, control, and audit our contracted tow companies. This software provides an internet portal to assist citizens with locating their impounded vehicles and allows them to view an invoice associated with the impounded vehicle before going to the tow yard. DTS has been extremely beneficial in providing oversight of our tow operators and tracking vehicles that have been impounded by the Police Department.
In the prior non-exclusive franchise tow agreement, tow operators who were facing a suspension for violations of the agreement were required to appeal through the City of Fresno's administrative hearing officer, which often led to lengthy delays in having their appeal heard. During these delays, tow operators were not allowed to tow for the City of Fresno, which placed them in undue financial hardship. Under this Agreement, the tow operators waive their appeal rights for minor violations involving potential suspensions of thirty (30) days or less. Such appeals would instead be heard by the Chief of Police or his/her designee. For suspensions in excess of thirty (30) days, or terminations of the agreement, the tow operators retain the right for their appeals to be heard by the City of Fresno's administrative hearing officer.
Many of the tow operators providing towing service for the City of Fresno have been operating their business in excess of 20 years. The vast majority of our tow operators are small business owners and would like the ability to transfer control of their business to an immediate family member upon retirement or death. The current ordinance does not allow for any change of ownership/control. The proposed changes to Article 17, Chapter 9 of the FMC allow these business owners to effectively transfer ownership/control to an immediate family member as defined by the code, subject to prior written approval by the Chief of Police.
ENVIRONMENTAL FINDINGS
Not applicable since the ordinance and agreement do not constitute a project.
LOCAL PREFERENCE
Not applicable since no goods or services are being procured by the City.
FISCAL IMPACT
There is no impact to the General Fund.
Attachments: Resolution of Intent with Non-exclusive Franchise Tow Agreement
Fresno Municipal Code Article 17, Chapter 9 with proposed changes