HomeMy WebLinkAbout03 - Tow Truck OrdinanceCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 3
May 13, 2003
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Administrative Services Department
Glen Everroad, Revenue Manager, ext. 3141,
everroad @city. newport- beach. ca. u s
SUBJECT: TOW TRUCK ORDINANCE REVISIONS
ISSUE:
Should Municipal Code Chapters 5.13 and 5.15 relating to the regulation of tow trucks
be repealed and amended, respectively?
RECOMMENDATION:
Introduce the proposed Ordinance on May 13, 2003, and pass to second reading and
adoption on May 27, 2003 with modifications as specified in this report.
DISCUSSION:
Background:
Newport Beach Municipal Code Chapter 5.13 regulates all tow truck service providers
conducting business within the City of Newport Beach. Chapter 5.13 requires all tow
truck service providers to obtain Council approval in the form of a certificate of public
convenience and necessity prior to operating in the City, and establishes the regulation
of equipment, drivers, rates of services, and operations for tow truck service providers.
In 1995, one of the tow truck companies regulated by the City filed an injunction
preventing Newport Beach (and several other cities regulating the company's
operations) from enforcing Chapter 5.13, based on a 1994 federal law deregulating
intrastate trucking. Staff has not enforced the requirements of Chapter 5.13 since 1995
and has waited for the courts to decide on local government's ability to regulate tow
truck services. Last year, the U.S. Supreme Court held that federal law preempts local
regulation of the "prices, routes, or services" of tow truck providers. The Court's decision
did provide that states have the authority to regulate the safety of commercial motor
vehicles (including tow trucks) and could delegate that specific authority to local
government. In 1997, California adopted the Motor Carriers of Property Act which
Tow Truck Ordinances
May 13, 2002
Page 2
specifically preempts local government from regulating and taxing commercial motor
carriers. The Courts and California Legislature have usurped the City's ability to
regulate tow truck service providers, thus invalidating Chapter 5.13.
Current law does not prohibit cities from contracting with tow truck service providers to
provide police tow services and regulating such operations. Municipal Code Chapter
5.15 regulates tow truck service providers contracting with the City as official police tow
truck service operators, including rates for service, equipment, drivers, insurance, and
hours of operation. Amendments to Chapter 5.15 are necessary to include provisions of
Chapter 5.13 if repealed (e.g. driver permit requirements of 5.13.120), address the
additional equipment demands resulting from annexation, and to ensure the City
continues to receive prompt, reasonably priced, and efficient service from official police
tow service providers.
The proposed revisions, prepared by the City Attorney's Office, and reviewed and
approved by the Police Department, include non - substantive technical changes, as well
as the following proposed amendments:
Section 5.15.080 — added provision for an option to extend the agreements for an
additional five years;
• Section 5.15.100 — increased the minimum number of tow trucks from eight to
twelve;
• Section 5.15.110 C. — revised the business hours to be consistent throughout the
year;
• Section 5.15.110 M. —added a minimum outside storage requirement;
• Section 5.15.130 — updated the insurance requirements.
Environmental Review:
There is no environmental impact related to this action.
Public Notice:
Posted with Agenda.
Funding Availability:
There is no budget expenditure applicable.
Alternatives:
Make no changes to Municipal Code Chapters 5.13 and 5.15.
Prepared by:
Revenue Manager
Attachments: Proposed Ordinance
Tow Truck Ordinances
May 13, 2002
Page 3
Submitted by:
Dennis Danner
Administrative Services Director
ORDINANCE NO. 2003-
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF NEWPORT BEACH, CALIFORNIA,
DELETING CHAPTER 5.13 AND AMENDING
CHAPTER 5.15 OF TITLE 5 OF THE NEWPORT
BEACH MUNICIPAL CODE PERTAINING TO
REGULATION OF TOW TRUCKS AND OFFICIAL
POLICE TOW SERVICE PROVIDERS.
WHEREAS, the Newport Beach Police Department, in the exercise of its regular
police operations, has the need to remove vehicles which are apparently
abandoned, involved in an accident, constitute an obstruction to traffic, or are a part
of a criminal investigation;
WHEREAS, the City believes it is in the best interest of the public and efficient
police operations to designate certain tow truck companies to provide 'official'
police tow services within the City;
WHEREAS; the City desires to regulate official police tow service providers and not
those tow service providers beyond the scope of the City's authority.
NOW THEREFORE, the City Council of the City of Newport Beach, California,
HEREBY ORDAINS as follows:
SECTION 1: Chapter 5 is hereby deleted in its entirety.
SECTION 2: Chapter 5.15 is amended to read as follows:
Chapter 5.15
REGULATION OF NEWPORT BEACH POLICE OFFICIAL POLICE TOW
TRUG SERVICES*
Sections:
5.15.00E
Prior history note for Chapter 5.15.
5.15.010
Intent and Purpose.
5.15.020
Definitions.
5.15.030
Number of Official Towing Services.
5.15.040
Tow Truck Service Specifications.
5.15.050
Hearing.
5.15.060
Selection.
5.15.070
Selection of Official Police Tow Service Operators.
5.15.080
Service Agreements.
Page 1 of 9
5.15.090
Business License Required.
5.15.095
Contract Service F',,^°.ehis —Fee.
5.15.100
Standards for Tow Truck Equipment.
5.15.110
Standard Rules of Operation.
A;Ar%A20
Attendant OF OpeffitOF'S Pe: y.?: Required.
5.15.130
Liability Insurance.
5.15.140
Grounds for Revocation.
5.15.150
Suspension.
Section 5.15.00E Prior history note for Chapter 5.15.
Section 5.15.010 Intent and Purpose.
It is the intent of this chapter to prescribe the basic regulations for the operation
of "official police towing services" in police emergency situations and in-for the removal
of vehicles thatwbiGh are apparently abandoned, er involved in an accident, or that which
constitute an obstruction to traffic because of mechanical failure. It is the purpose of the
City Council in enacting the ordinance codified in this chapter to provide a fair and
impartial means of distributing requests for towing services among qualified firms, and to
einsure that such service is prompt and reasonably priced, and in the best interest of the
public as well as the best interest of efficient policeing operations.. . ..
Y hl•^ streets of s ,Gh Ye ieles
Section 5.15.020 Definitions.
A. "Official police tow service" means a towing company selected by the City
Council to be used by the Police Department, on call, on a weekly rotation basis, for any
police emergency situation where a tow truck is required.
B. A "tow car' or "tow truck" meansis a motor vehicle which has been altered
or designed and equipped for and exclusively used in the business of towing vehicles by
means of a crane, tow bar, tow line, or dolly, or is otherwise exclusively used to render
assistance to other vehicles.
C. "Attendant" or "operator" means a trained and /or qualified individual
responsible for the operation of a tow car or tow truck.
D. "Revenue Division" means the Newport Beach City Revenue Division of
the €inane DepartmeAdministrative Services Department.
E. Administrative Services Director' means the position
appointed by the City Manager and his charge of the administration of the financial
affairs of the City.
Section 5.15.030 Number of Official Towing Services
There shall be two official police tow services selected and designated by the
City Council to provide service at the request of the Police Department throughout the
City of Newport Beach. The decision to select lust two operators is
based upon of tt.e ter.; ^^ . and a finding that two towing services are
sufficient to provide a high level of service to the public at the present time; that a
limitation to two services contributes to the efficient administration of the program of
providing towing services on an emergency basis; and -that further fragmentation of the
limited income derived from such services would tend to reduce the capabilities of the
towing services to prepedy-maintain adequate equipment and attendants, leading to a
reduction in and dewngrade _the level of services provided to the public.
Section 5.15.040 Tow Truck Service Specifications.
Page 2 of 9
The City Clerk shall be authorized to advertise for bids. Notice inviting bids shall
be published in the official newspaper at least ten days before the time for opening bids.
Notice shall list the date, time; and location for receiving sealed bids and the time at
which the bids will be opened. Bids shall be submitted on forms obtained from the
Administrative Services FinanGe Department. The bid proposal shall be consistent with
the tow truck service specifications, contain information indicating compliance with
Section 5.15.100 of this chapter, and provide a tow rate schedule for the following:
A. Standard tow rate:
1. Light duty towingACC'lcn4
2. Medium duty towing SteFediffimpeunded,;
3. Heavy duty towingME)toFGyGle„
B. Dolly„
C. Go iacksAAetersyGle„
D. Remove and replace drive shaft,;
E. Roll -over and eFwinching,
F. Hourly rate for extended service,;
G. Open after hours for releasing of vehicles,;
H. Storage rates:
1. Inside;; cars and trucks,;
2. Outside:_; cars and trucks,;
3. Motorcycle
I. Heavy dutyl lathed,
d. €pct.^ heavy duty tow,;
l� On -site release.
Section 5.15.050 Hearing.
After the bid opening, the City Clerk shall set a hearing before the City Council
giving notice of the time so set at least five days before the date of said hearing to all
persons submitting bids.
Section 5.15.060 Selection.
At the time set for the hearing, the City Council may examine the bidders and; all
relevant evidence, and award the contract to those found to be the most responsible
bidders as discussed more fully in Section 5.15.070. The City Council reserves the right
to reject all bids if it is believed to be in the public interest.
Section 5.15.070 Selection of Official Police Tow Service Providers.
a GeFttiGate of public Genve^ic ^c^ and ^ s i . In FeaGh ; ^^ a de. -isi^^ ^^ +h^ s electing
the City's two official tow service providers' v
^, tThe City Council shall take into account the following considerations in
addition toeveF and above the requirements contained in Sections 5.15.100 and
5.15.110:
A. Whether the applicant is qualified on the basis of his or hermeral
GhafaoteF, expeFienGe experience and record in the towing business; and financial
responsibility;
B. The level and quality of service thatwhish would be made available to the
public by the provider; such as, the accessibility and adequacy of the provider's storage
facilities, whether there is an attendant on duty as opposed to being on call to release
vehicles on a twenty- four -hour basis, and the availability of extra pieces of equipment
over the minimum required;
Page 3 of 9
C. The r€teasonableness of fees to be charged for service and the
willingness to release a vehicle without charge if impounded or stored in the course of
carrying out an official police investigation, upon direction of the Chief of Police;
D. The pRhysical condition of the operator's equipment;
E. Whether the facilities, personnel; and equipment whisk thethat the
applicant proposes to use meet applicable Municipal and State requirements of law.
Section 5.15.080 Service Agreements.
Tow truck seRAGes operators selected by the City Council to provide official
police tow services shall enter into an
agreement with the City, • NGI; agreement -that shall contain eligibility requirements,
operating regulations, and a fee schedules as adopted by the City Council. Every official
police tow service operators shall post in a conspicuous place in the
interior of each tow truck . an approved rate schedule
in a form and location approved by the Chief of Police. The rate schedule will
automatically be adjusted on its anniversary date based on the percentage change in the
cost of doing business as measured by the United States Department of Labor, Bureau
of Labor Statistics, consumer price index, for All Urban Consumers for the Los Angeles -
Long Beach Area, All Items, (1967 = 100) for the preceding twelve (12) months.
The City may require and revise the fee schedule by mutual agreement at any
time upon a finding that a rate adjustment is justified. and is in the ^ bliG inteFest
The term of all official police tow truck service agreements shall be five years
with an options to extend the term for one additional five -year periodteuas. Any official
police tow truck operator whose service agreement with the City will expire or has
expired may bid on subsequent notices inviting bids for official police tow truck
services.nGfiGGG inviting bides
Section 5.15.090 Business License Required
A. Any fiFFn An official police tow service operator is required to have away
UepaFtrneRt GRlY if it has a valid license to do business in the City of Newport Beach.
B. No official police tow truck shall be operated by -a driver on the streets,
alleys, or any public way or place of Newport Beach unless the driver is holding a
surreaily-valid permit as required by law as an attendant or operator.
Section 5.15.095 Franehise Fee.Contract Services Fee.
The 9Official pRolice tTow s9ervice providers shall pay quarterly to the City
during the term of the agreement, a fixed percentage of the gross receipts of the service.
The percentage shall be at least ten (10) percent. Terms and provisions for payment of
the fee shall be established by the City Council in the agreement set forth in Section
5.15.080. The eOfficial police tow service operators shall aaaually-provide the City with
an annual audited income statement of their official police tow services. 3879}1676 aad
Section 5.15.100 Standards for Tow Truck Equipment.
A. Official police tow services operators must have at least eight twelve (12)
rigs tow trucks of one -ton capacity with rear -dual wheels. The Police Department
employee on the scene shall determine if greater capacity is needed and may call upon
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any service capable of providing that capacity regardless of whether or not said
company is within the City or whether it is their period of time to receive police requests.
B. Company name: Company name, address and phone number shall be
displayed on both sides of the tow truck in letters not less than two and one -half- inches
in height. The words "Official NBPD Tow Unit' may be displayed only during the time the
contract is in force.
C. Lights: All official police tow tTrucks must, at all times, be equipped with
such headlights, taillights, red reflectors, stop lights, warning lights, etc., as required by
California law, plus one white utility light (adjustable or portable); and may be equipped
with such other lights as the owner may desire which are not forbidden by law.
D. Winch: Winches may be electric, power takeoff, or hydraulic driven.
Winches shall be of sufficient power or capacity for the rating of the wrecker unit and be
equipped with safety dogs or equivalent braking devices.
E. Official police tow service providers must also have aAt least one, three -
axle tow truck to be equipped aswith a minimum &k4een twenty -five (4625) ton capacity
wrecker. Said truck must also be equipped with a minimum of three hundred (300) feet
of not less than one -half inch cable free from partial breaks or knots.
F. Additional equipment: All official tow tTrucks must be equipped with red
flares, lanterns or reflectors, hand tools, crow bar, rope, broom, shovel, dust pan, fire
extinguisher (dry chemical type -- minimum 10 B.C.), portable red taillight and stop light
for towed vehicles, equipment for opening locked vehicles, and safety snubber chain.
Each tow company shall have a least one set of dollies readily available at all times and
at least one truck capable of responding to a call within enclosed parking structures with
a clearance of not more than six feet four inches.
G. Flat bed trucks shall be acceptable for police tow requests, provided that
no flat bed tow truck rate shall be imposed unless the flat bed truck was specifically
requested.
Section 5.15.110 Standard Rules of Operation.
A. All requests for towing service and the removal of traffic hazards shall be
made through the Police Department.
B. When it becomes evident that there will be a delay in responding to a
request for towing service, the towing company concerned shall promptly advise the
Police Department of this delay.
C. Tall be-aAn attendant ea sal - capable of responding to police
requests for tow serviceing as well as being - responsible for pFeseRt OF avallabl the
arranging the release of vehicles to the public shall be on call twenty -four (24) hours a
day, seven days a week. Official police tow service operators shall also maintain regular
b9usiness hours +
aFe o z ;ugh+, ;f eight (8)a.m. to six (6)p.m.,
jURe 15 thFough Septernbep 15 and Monday through Friday, during which time an
public in obtaining their vehicles. from September 16 thMugh juRe 14 Vehicles stored
twenty -four (24) hours or less shall be charged a maximum of one -day storage. Each
Page 5 of 9
day thereafter shall be calculated by calendar day.
Ale @#er he, release fee shall be im ed betweee the hO r of seven a
and seven p.m. Signs listing the phone number where persons can call to retrieve their
vehicles must be posted in plain view atte the front of the storage facility.
D. Removing Hazards. After being dispatched by the Police Department to
the scene, the tow truck operator shall cooperate with the police officers in removing
hazards and illegally parked vehicles as requested. It is the duty of the police officers to
determine when such vehicle should be impounded or moved, and the twow truck
operator shall abide by their decisions.
E. Each towing company shall comply with Section 27907 of the California
Vehicle Code regarding signs on tow trucks. Only tow trucks bearing the name of the
company shall be dispatched to the scene of need without approval of Police
Communications.
F. Vehicles impounded by the police for special investigation, i.e.,
fingerprints, etc., shall be held underia maximum security until cleared by investigating
officers. Contents of vehicles subject town# a "police hold" shall not be removed.
G. The owners of towing companies participating in towing assignments by
the Police Department shall be responsible for the acts of their employees while on duty.
The tT -owing company shall be responsible for all damages to vehicles while in its
possession.
H. All towing company's records, equipment, and storage facilities shallwill
be subject to periodic skesks byinspection by Police Department investigators.
I. All vehicles stored or impounded as a result of a tow ordered by the
Police Department shall be made available to the owner of the vehicle or his
representative, any insurance agent, insurance adjusieradjuster, or any body shop or car
dealer, for the purpose of estimating or appraising damages, except vehicles subiect
towitla a "police hold"
J. The official police towing service shall record thefts time in and thefts time
out on every tow truck assignment. Such records shall be available and open te-Gityfor
City examination. An electric time clock shall be maintained for this purpose.
K. Upon request, All official police towing services shall submit a FRenthl
report to the Chief of Police and the Administrative Services DirectorefFinaace, which
may skial4 include any of the following:
1. Total police impounds;
2. Number of times dispatched by Newport Beach Police Department;
3. Number of these calls resulting in impounds;
4. Number of vehicles sold on lien sale under authority of Section 3072, Civil
Code, and reporting said lien sales as per authority of Section 22705 CVC;
5. Number of vehicles sold under authority of Section 3073, Civil Code
(under two hundred dollars ($200.00) value);
6. Names and addresses of buyers and description of vehicles when sold;
7. Number of calls answered is which took more thantime beyand one hour
was fegaired to handle.
L. All tow trucks shall be radio - equipped.
M. Storage lots shall be properly fenced (at least six -feet high) to maintain a
maximum of security for stored and impounded vehicles. Such lots shall bead
accessible for vehicle storage and vehicle releases twenty -four (24) hours a day, seven
days a week. Storage lots must provide a minimum of eae- 44.000 square feet of space
dedicated for outside vehicle storage and A a minimum of one thousand (1,000) square
feet of inside storage for vehicles. shall be PFOVided.
N. Storage lots shall be located within teathree miles of the Newport Beach
Page 6 of 9
City Hall.
O. An official garage shall not proceed with any repair work on a vehicle or
place any charges against a vehicle other than those required for removal from the
street and storage unless authorized by the owner of his or his designated agent.
P. 9i#isial garages Wwhen disposing of unclaimed vehicles, official police
tow service operators shall abide by all Civil Code sections pertaining thereto.
Q. All vehicles stored or impounded as a result of a tow ordered by the
Police Department shall be towed directly to an official storage lot unless the Police
Department or other person legally in charge of the vehicle requests that it be taken to
some other location. Vehicle release fees shall be as established by resolution of the
City Council.
R. A towing company may charge a lien sale fee as pFevided by Feselution
and may begin lien sale proceedings as provided in the California Vehicle and Civil
Codes afteF five days of storage
Seetion 54520 Attendant OF Operator's Permit Required,
de6r.F'bed 'R this GhaptBf dR the City without first obtaining a peFmit in wrdtdRg to do se a
Section 5.15.130 Liability Insurance.
A. Official police tow service providers shall obtain and maintain at all times
by law, Fegardless 9f I.YllPtlIPF thP- t9W tFUGk was being driven by the owner OF 1116 ageRt,
policies shall be submitted to the Risk Manage
. provider's
seaveaiense. Satisfactory evidence that such insurance is at all times in force and effect
shall be furnished to the Risk Manager and the' e ^ ^" ^^ ^h f^r.r. as the
..... . .... . ........ -------- M-e
Page 7 of 9
Section 5.15.140 Grounds for Revocation.
The official police tow truck serviceseairastual agreement shall be subject to
cancellation or revocation by the City Council either as a whole or as to any person or
vehicle described therein. The contract holder shall be given five days' notice to appear
before the City Council to show cause why the contract should not be revoked or
cancelled for any of the following reasons:
1. Nonpayment of any City business license fees or other fees provided in
the contract or by the Newport Beach Municipal Code;
2. Breach of any rules, regulations, or conditions set forth in the contract or
the Newport Beach Municipal Code;
3. VF44he violation of any of the laws of the State of California or of the
City with respect to the operation of the business by the contract holder, or repeated
violations by operators, attendants, or vehicles covered by the contract;
4. FGr-- failure to maintain a satisfactory level of service to the police or
public;
5. Fw4ailure to keep any saG4- vehicle used for official police tow services in
a safe condition and in good repair;
6. Fw4ailure to use distinctive coloring, monogram, or insignia;
7. For any deviation from the schedule of rates set forth in the contract;
8. For any cause whiGh the City Council finds makes it contrary to the public
interest, convenience, necessity, or general welfare for the contract to continue.
Section 5.15.150 Suspension.
Any seriiflsaie er- permit authority to operate as an official police tow service
operator in the Citv granted under the provisions of this chapter may be suspended by
the Chief of Police for a period of up to sixty (60) days for any violation of this chapter.
SECTION 4: If any section, subsection, sentence, clause or phrase of this ordinance is,
for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this ordinance. The City Council
hereby declares that it would have passed this ordinance, and each section, subsection,
clause or phrase hereof, irrespective of the fact that any one or more sections, subsections,
sentences, clauses and phrases be declared unconstitutional.
SECTION 5: The Mayor shall sign and the City Clerk shall attest to the passage of this
ordinance. The City Clerk shall cause the same to be published once in the official
newspaper of the City, and it shall be effective thirty (30) days after its adoption.
SECTION 6: This ordinance was introduced at a regular meeting of the City Council of
the City of Newport Beach, held on the 13th day of May, 2003, and adopted on the 27th
day of May, 2003, by the following vote, to wit:
Page 8 of 9
AYES, COUNCILMEMBERS
NOES, COUNCILMEMBERS
ABSENT COUNCILMEMBERS
MAYOR
ATTEST:
CITY CLERK
f: users /cat/shared /ordinance /Amendments to Chapter 5.15.doc
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