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ORIGINAL
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
From: Charles McNeely, City Manager Subject: A Resolution of the Mayor and
Common Council of the City of San
Dept: Office of the City Manager Bernardino amending Resolution no. 2005-
286 regarding towing regulations and
Date: April 7, 2011 authorize the Finance Department to utilize
the projected increase in revenue derived
from the new Tow Service Agreement in FY
2010-11 and in FY 2011-12 for police
retention.
M/CC Meeting Date: 4/18/2011
Synopsis of Previous Council Action:
July 13, 1995 First Tow Service Agreement was approved by Council
(Resolution #1995-2411) requiring a minimum storage
capacity of 200 vehicles.
July 8, 1998 Resolution #1998-195 was approved by Council thereby
repealing the previous resolution. A population ratio was created
permitting one tow carrier to operate within the City per 40,000
residents
August 15, 2005 Resolution 05-286 Established Standard Towing Criteria
and establishing a population ratio permitting one tow
carrier to operate within the City per 35,000 residents
December 19, 2005 Resolution 05-434 through 05-439 Authorized Tow Service
Agreements with six Tow Carriers
September 8, 2008 Resolution 2008-347 Set Franchise Fees at $38,841 per Month
Total and Amended Resolution 05-286 and the City's Existing Tow
Service Agreements to Require the Police Department to
determine the franchise fees annually.
March 4, 2009 Impound Yard concept presented to the Ways & Means
Committee and directed to return with a comprehensive
business plan.
July 22, 2009 Business Plan presented to Ways & Means Committee
August 5, 2009 Ways & Means Committee recommended the item be
forwarded to the Common Council for Consideration
August 17, 2009 Motion to approve a Police Operated Impound Facility
was considered, but not approved by the Mayor and Common
Council
February 16, 2010 Mayor and Common Council Approved Tow Carrier
franchise fees as required by Resolution 2005-285 and
the City's existing Tow Service Agreement
400
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July 6, 2010 Council Directed Staff to Update the Business Plan for FY
2010/2011
January 10, 2011 Mayor and Common Council Directed the City Manager
to place an agenda item on the Council meeting agenda
for February 22, 2011, either (1) establishing the revised
franchise fee for Tow Services Agreements for calendar
year 2011, or (2) approving a revised form of Tow
Services Agreement.
February 22, 2011 Mayor and Common Council approved a new franchise fee of
$21,299 per month.
March 9, 2011 Ways & Means Committee was briefed by staff on the status of
negotiations with the tow carriers. The Committee agreed to allow
staff to continue discussions with tow carriers and to return with a
final draft Agreement.
March 28, 2011 Staff presented a final draft of the Tow Service Agreement to the
Ways & Means Committee. The Committee voted to refer the item
on to Council for final review and potential approval.
April 6, 2011 Mayor and Common Council approved a resolution authorizing
the City Manager to execute Tow Service Agreements with the six
tow carriers (Tri City Towing, Danny's Towing, City Towing, Wilson
Towing, LLC, Big Z Autoworks, Inc., Hayes Towing) who are
currently participating in the program and operating within the
incorporated boundaries of the City of San Bernardino
Recommended Motion:
1) A Resolution of the Mayor and Common Council of the City of San Bernardino amending Resolution
no. 2005-286 regarding towing regulations
2) Authorize the Director of Finance to amend the FY 2010-11 budget to appropriate any increase in
revenue generated in excess of the amount originally estimated for the Tow Franchise Program to the
Police Department for police officer retention; and to include the $300,000 increase in revenue
derived from the new Tow Franchise Program in the FY 2011-12 budget proposal to fund either four
police officer positions that will be eliminated if the State does not provide funding to the COPS/
SLESF Grant Program, or to reinstate police positions thale eliminated as pa of the 8% budget
cuts if that Grant program is funded.
Signature
Contact person: James Graham Phone: 3557
Supporting data attached: Staff Report Ward: City Wide
FUNDING REQUIREMENTS: Amount: $300,000 (FY 2011-12)
Source: New Tow Service Agreement
Finance:
Council Notes: LSD c2-011- /
Agenda Item No
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT
A Resolution of the Mayor and Common Council of the City of San Bernardino
amending Resolution no. 2005-286 regarding towing regulations and authorize the
Finance Department to utilize projected increases in revenues derived from the new Tow
Service Agreement in FY 2010-11 and in FY 2011-12 for police retention.
BACKGROUND
On July 13, 1995 the first Tow Service Agreement ("TSA") was approved by Council
(Resolution #1995-2411). It required a minimum storage of 200 vehicles as is required
today. A population ratio was created permitting one tow carrier to operate within the
City per 40,000 residents. The carriers were identified as City Towing, Big Z Towing,
Tri-City Towing, Wilson Towing, and Loma Linda Towing. There was no franchise fee
and there was a rotation agreement but not definitive.
On July 8, 1998 Resolution #1998-195 was approved by Council and repealed the
previous resolution. The language in the TSA remained fairly consistent except the
population ratio was changed to read one tow carrier for every 35,000 residents, which
exist today. All tow carriers were subject to a vehicle towing administration release fee
set by resolution and a franchise fee set forth in the TSA Agreement.
On August 15, 2005, the Mayor and Common Council passed Resolution 2005-286
establishing standard towing criteria for the six tow carriers on the City's tow rotation.
On December 19, 2005, Resolutions 2005-434 through 439 were passed approving
contracts with the six tow carriers to tow vehicles at the City's request.
On September 8, 2008, Resolution 2008-347 was passed amending resolution 2005-286
and the existing Tow Service Agreements to require the police department to determine
tow carrier franchise fees annually based on a cost analysis and the average number of
tows during the prior fiscal year. This resolution authorized the execution of
amendments to agreements for tow services with the six tow carriers and set the monthly
towing franchise fees at $38,841 per month total for the City's six tow carriers.
On February 16, 2010, Mayor and Common Council approved Resolution 2010-28
changing the franchise fee to $31,689.28 per month or $5,281.55 per carrier. Hence, in
FY 10-11, the tow franchise revenue was budgeted at $380,300 which is $85,700 less
than the prior fiscal year.
On February 22, 2011 The Mayor and Common Council revised the franchise fee for the
tow carriers and referred further work on the Tow Service Agreement to the Ways &
Means Committee.
During its March 9, 2011 meeting, the Ways & Means Committee was updated on the
proposed changes to the Tow Service Agreement. The Committee agreed to allow staff
to continue its negotiations with the Tow Carrier and come back with a final draft
agreement at its next meeting. On March 15, 2011 staff completed its negotiations of a
new Tow Service Agreement with the tow carriers. The Ways & Means Committee,
during a special meeting held on March 28, 2011, reviewed the draft Tow Service
Agreement and offered additional recommendations and referred the final Agreement to
the Mayor& Common Council for approval.
On April 6, 2011 approved a resolution establishing a new Tow Service Agreement with
the following six tow carriers: Tri City Towing, Danny's Towing, City Towing, Wilson
Towing, LLC, Big Z Autoworks, Inc., and Hayes Towing. The new Tow Service
Agreement establishes the following changes in terms and conditions:
A. limits the Number of Tow Carriers Operating under the Agreement to six (6)
B. establishes a Term in the Agreement(5yrs.);
C. allows for the Sale of an Existing Tow Service Business During the Term of
the Agreement(with conditions);
D. prohibits The City of San Bernardino from considering the development of a
impound yard facility during the term of the Agreement;
E. institute new franchise fees and an administrative release fee;
F. provides for New Audit Provisions that imposes penalty fees and interest rate
fees against any tow carrier found to provide false or misleading financial
information to the City;
G. allows for the provision of a Complaint Procedure for the General Public;
H. requires Annual Reviews of Tow Carriers' Operations; and
I. provides special provisions to protect the vehicles and associated property
being store
The proposed Resolution amends Resolution 2005-285 by incorporating the approved
changes to the Tow Service Agreement with the six tow carriers.
FINANCIAL IMPACT
As a consequence of the newly approved Tow Service Agreement, it is projected that the
City may realize an increase in revenue relative to what was previously budgeted. It is
projected that the City may receive an additional $300,000 during FY 2011-12.
Therefore, staff is recommending that Mayor and Council appropriate any increase in
revenue generated in excess of the amount originally estimated for the Tow Franchise
Program to the Police Department for police officer retention; and to include the
$300,000 increase (see attachment A) in revenue derived from the new Tow Franchise
Program in the FY 2011-12 budget proposal to fund either four police officer positions
that will be eliminated if the State does not provide funding to the COPS / SLESF Grant
Program, or to reinstate police positions that were eliminated as part of the 8% budget
cuts if that Grant program is funded.
RECOMMENDATION
1) Adopt the resolution
2) Authorize the Finance Director to amend the FY 2010-11 budget to
appropriate any increase in revenue generated in excess of the amount
originally estimated for the Tow Franchise Program to the Police
Department for police officer retention; and to include the $300,000 increase
in revenue derived from the new Tow Franchise Program in the FY 2011-12
budget proposal to fund either four police officer positions that will be
eliminated if the State does not provide funding to the COPS / SLESF Grant
Program, or to reinstate police positions that were eliminated as part of the
8% budget cuts if that Grant program is funded.
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COPY
I RESOLUTION NO.
2 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
3 CITY OF SAN BERNARDINO AMENDING RESOLUTION NO. 2005-286
REGARDING TOWING REGULATIONS
4
5 WHEREAS, on August 15, 2005, the Mayor and Common Council passed Resolution 2005-
6
286 establishing standard towing criteria for the six tow carriers on the City's tow rotation and
7
authorizing a form of tow services agreement attached to the Resolution; and
8
9 WHEREAS, the City Manager's office has worked with the Tow Carriers and Police
10 Department to agree on updated franchise and other fees and a separate and updated Tow Services
11 Agreement; and
12 WHEREAS, implementation of the updated franchise fee and new Tow Services Agreement
13 requires amendment of Resolution No. 2005-286, which will continue to govern involuntary tows
14
as amended; and
15
WHEREAS, the Tow Services Agreement has been reorganized for ease of understanding;
16
17 requirements for digital photos of vehicles upon impound have been included, and the provisions of
18 Resolution No. 2005-286 regarding franchise fees, assignment and term have been revised; and
19 WHEREAS, all six Tow Carriers have agreed in their respective Tow Carrier Agreements to
20 such amendments, changes and modifications to Resolution No. 2005-286 as contained in the Tow
21 Services Agreements; and
22
WHEREAS, this action is exempt from CEQA as it is the amendment of an existing regulatory
23
enactment.
24
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED
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BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
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FOLLOWS:
27
Section 1. Recitals. The recitals set out above are true and correct.
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1 Section 2. Amendment of Resolution No. 2005-286. Resolution No. 2005-286 hereby is
2 amended as follows:
3 Section 3(1) is amended to include subsection (R) to read as follows: "Provide for secure
4
inside evidence storage and have the ability to provide secure in-door storage for vehicles upon
5
request of the Police Department";
6
7 Section 3(1) is amended to include Subsection (S) to read as follows: "Prior to taking
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j 8 possession of any vehicle, and immediately before release, digitally photograph in a manner which
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9 shows the date and time on the photograph the inside and outside to document condition of vehicle
3
10 and its contents and retain such photograph in a secure location for at least one year."
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11 The Section titled "Grandfathering"on page 7 is hereby deleted;
12
Section 13 on page 13 is amended to read in its entirety as follows: "The towing carriers
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shall be charged a franchise fee set forth in the Agreement for Tow Services".
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15 Section 19(c ) on page 21 is amended to read as follows:
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16 "Assignment: Any change in ownership requires the approval of the City Council to
continue on the tow rotation. Any change of ownership must be reported to the Police
17 Department in writing within seven (7) days of such change. Alternatively, a proposed
change may be reviewed by the Police Department for compliance with the standards for
18 such change. Upon receipt of an actual or proposed change of ownership, the Police
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19 Department will review the proposed new owner(s) under the standards set out in this
Agreement and procedures the Police Department adopts therefore. Within 30 days of
20 the date of notification of the actual or proposed change of ownership, the Police
Department shall report the results of its review to the City Council which shall approve
21 or deny the assignment of this Agreement to the new owner. In the event the City Council
denies the assignment,the Agreement shall terminate as of the date of such denial and the
22 Police Department shall initiate procedures to replace the Tow Carrier in the towing
23 rotation. Such termination is not subject to the appeal provisions hereof or of Resolution
No. 2005-286.'; and
24
The "Proposed Model Contract"attached to Resolution 2005-286 is hereby deleted.
25
26 Section 3. Effective Date. This Resolution shall take effect in the manner as provided in the
27 City Charter.
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1 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AMENDING RESOLUTION NO. 2005-286
` 2 REGARDING TOWING REGULATIONS
3 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
4 Common Council of the City of San Bernardino at a meeting thereof,
5 held on the day of , 2011, by the following vote,to wit:
6 Council Members: Ayes Nays Abstain Absent
7 MARQUEZ
8 VACANT
9 BRINKER
10 SHORETT
11 KELLEY
12 JOHNSON
13 MC CAMMACK
14
15
Rachel G. Clark, City Clerk
16
17 The foregoing Resolution is hereby approved this day of , 2011.
18
19 Patrick J. Morris, Mayor
City of San Bernardino
20
21 Approved as to Form:
22 By:
23 Timothy Sabo, Special Counsel
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