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HomeMy WebLinkAboutRate Regulation of Non-Consensual Towing Services - Ordinanc ,� ►�-W Werl �n� 1'� T 53�•3a 09- 01-6Z cQaNdL ACjot4 LAM Noal� CITY OF HUNTINGTON BEACH (QrZ1'[V* 4TaInter-De artment Communication °��`1L � � ��� P �fi c,11'� M 1S -4 0 TO: HON. MAYOR and CITY COUNCIL MEMBERS FROM: GAIL HUTTON, City Attorney DATE: September 6, 2002 SUBJECT: Resolution for waiver of Vehicle Release Fee Pursuant to City Council direction at the September 3, 2002 meeting, attached is the Resolution setting forth the procedure.for a victim of a crime to request a waiver of the Vehicle Release Fee. MOTION: Adopt Resolution Noo�-� entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING A PROCESS FOR WAIVER OF THE VEHICLE RELEASE FEE. �,. GAIL HUTTON, `I-6-02 City Attorney /K c: Ray Silver, City Administrator n Bill Workman, Asst. City Administrator -' C— jmp/02memo/release fee RESOLUTION NO. 2002-88 I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING A PROCESS FOR WAIVER OF THE VEHICLE RELEASE FEE WHEREAS, on September 3;2002, the City Council adopted Resolution no. 2002-85 entitled"A Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 5159 Entitled, `A Resolution of the City Council of the City of Huntington Beach Establishing a City Fee Schedule' (Supplemental Fee Resolution No. 89);" and As part of the City's fee Resolution, the City Council authorized the Police Department to charge a fee to cover the administrative costs of releasing vehicles which were towed at the direction of the Police Department, and The City Council recognizes that certain circumstances exist where an individual should be exempt from paying a vehicle release fee, such as victims of a crime; and The City Council now desires to establish a procedure by which the vehicle release fee can be waived, NOW THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. Any person subject to the Vehicle Release Fee may request a waiver of the fee from the Police Department Station Commander. SECTION 2. The decision of the Station Commander may be appealed, in writing, to the City Administrator. The decision of the City Administrator may be appealed, in writing, to the City Council. The decision of the City Council is final. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a►r6gular meeting thereof held on the 9th day of September , 2002. A41" Mayor ATTEST: APPROVED AS TO FORM: City Clerk. City Attorney REVIEWED, INITIATED AND APPROVED': City,Adnl6istrator 1 02reso/release fee/9/17/02 Res. No. 2002-88 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) _ I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a adjourned regular meeting thereof held on the 9th day of September, 2002 by the following vote: AYES: Green, Boardman, Cook, Houchen, Winchell, Bauer NOES: None ABSENT: Dettloff ABSTAIN: None City Clerk and ex-officio.Clerk of the City Council of the City of Huntington Beach, California OW vl�f0 a q�g_a z RESOLUTION NO. A RE LUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH EST LISHING A PROCESS FOR WAIVER OF THE VEHICLE RELEASE FEE WHEREAS, on September 3, 2002, the City Council adopted Resolution no. 2002-85 entitled "A Resolutio of the City Council of the City of Huntington Beach Amending Resolution No. 5159 Entitled, `A R olution of the City Council of the City of Huntington Beach Establishing a City Fee Schedule' (Sup emental Fee Resolution No. 89);" and As part of the City's fee esolution, the City Council authorized the Police Department to charge a fee to cover the administ\fee, uch leasing vehicles which were towed at the direction of the Police Department The City Council recognizircumstances exist where an individual should be exempt from paying a vehicle rele victims of a crime; and The City Council now desi a procedure by which the vehicle release fee can be waived, NOW THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. Any person subject to the Vehicle Release Fee may request a waiver of the fee from the Police Department Station Commander. SECTION 2. The decision of the Station Commander may be appealed, in writing, to the City Administrator. The City Administrator's decision is final. PASSED AND ADOPTED by the City Council of the City,\ofntington Beach at a regular meeting thereof held on the day of 002. Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney q t0e.1' REVIEWED, INNITIATED AND APPROV City Actininistrator 02reso/release fee/9/6/02 c�krw�N*b Qj CITY OF HUNTINGTON BEACH MEETING DATE: DEPARTMENT ID NUMBER: CA 00-12 Council/Agency Meeting Held: — — Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied _ �NT� D .��.� yItk's Signature Council Meeting Date: ?Tk-D ele_N0. moo_ epartment ID Number: CA 00-12 Nos— CITY OF HUNTINGTON BEACH aYt�o- �6 L j%j REQUEST FOR COUNCIL ACTION —7— 0 r-= J, SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS RAY SILVER, City Administrators SUBMITTED BY: GAIL HUTTON, City Attorney PREPARED BY: GAIL HUTTON, City Attorney S�/ill x/a10 C" �- RON LOWENBERG, Chief of Police �r..►L SUBJECT: Modifying Permitting Requirements and stablishing Rate Regulation for Non-Consensual Towing Services ORD Nos. 3�$a 9 34 j &S.00, 2daa-I po Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Should the City delete permitting requirements and establish rate regulation for non-consensual towing services? Funding Source: None. Recommended Action: 1. Adopt Ordinance No. 3;-SO adding Chapter 5.67 pertaining to non-consensual towing services. 2. Approve Resolution No.-?000-/DD establishing a City fee schedule for non- consensual towing services. 3. Adopt Ordinance No. 3 amending Huntington Beach Municipal Code 5.66 removing permitting requirements for non-consensual towing services. Alternative Action(s): Do not adopt ordinances. towing1 -2- 11/14/00 10:28 AM REQUEST FOR COUNCIL ACTION MEETING DATE: DEPARTMENT ID NUMBER: CA 00-12 Analysis: A. Background Police-directed towing is any .tow authorized by a law .enforcement official, such as an illegally parked vehicle. Consensual towing is a tow which is authorized by the owner of the .vehicle, such as a.AAA tow. On the other hand, non-consensual towing (known as "private party .impounds" or "PPIs") is any tow" initiated by a person other than the owner of the vehicle or a law -enforcement official. For example, the property owner can have an abandoned vehicle towed from a parking garage, or an apartment complex where a non- resident has parked in resident-only parking. A PPI must be reported to the Police Department to ensure that the vehicle owner may contact the police department to ascertain the location of the vehicle and prevent the investigation of the tow as a stolen vehicle. Currently, Chapter 5.66 of the Municipal Code imposes identical regulations on both PPIs and police-directed tow services. B. Non-Consensual Tow Services. In 1995, litigation was initiated against the City of Santa Ana by Patrick Tocher alleging federal preemption of local regulation:of non-consensual towing (Tocher v. City of Santa Ana, known as "Tocher I"). Mr. Tocher was successful at the trial court level and Santa Ana appealed the decision. In the interim, Mr. Tocher initiated. a second lawsuit against eight cities on similar grounds, including the City of Huntington Beach (Tocher v. City of Santa Ana, known as "Tocher II"). Based on the appellate decision of Tocher I, municipalities are preempted from regulating PPIs except for setting the maximum rates charged to customers for the services; however, cities may regulate police-directed.tows. Since early 1999, the City of Huntington Beach has allowed Mr. Tocher to operate as a PPI tow service without a permit pending the results of the Tocher I appeal. Now that Tocher has been decided, it is recommended that the City Council adopt two separate ordinances to ensure full compliance with the Tocher I decision. The first ordinance amends Huntington Beach Municipal Code Chapter 5.66 to provide that it only applies to police-directed towing, and to eliminate any references to PPIs. As a result, the current police-directed towing regulations will remain in place without any change whatsoever. Deleting any reference to PPIs in Chapter 5.66 will not impact police-directed towing services. To the contrary, the City Council Committee on police-directed tow services is currently reviewing ordinances and resolutions related to police-directed towing services for future City Council consideration. The second ordinance will add Chapter 5.67 to the Municipal Code, which will authorize the Council to establish the maximum tow rate for PPIs. Then, pursuant to resolution, the Council will adopt the PPI rate schedule. The proposed resolution is the same rate schedule as is currently used for police-directed tows. In fact, California Vehicle Code Section 22658(i) and Q) limits the City to limiting PPI tow rates at no greater than police-directed tow rates. towing1 -3- 11/14/00 10:28 AM REQUEST FOR COUNCIL ACTION MEETING DATE: DEPARTMENT ID NUMBER: CA 00-12 Environmental Status: NA Attachment(s): City Clerk's Page Number No. Description 1 Ordinance adding Chapter 5.67 pertaining to non-consensual towing services; ow wo- 3�►ao 2. Resolution establishing a City fee schedule for non-consensual towing services; 2.00a ,.; 3. Ordinance amending HBMC §5.66 regulating police directed towing services; ORD No, 3�S) 4. Legislative Draft of 5.66 RCA Author: McGrath towing1 -4- 11/14/00 10:28 AM ATTACHMENT # 1 ORDINANCE No. 3480 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH ADDING CHAPTER 5.67 TO THE HUNTINGTON BEACH MUNICIPAL CODE RELATING TO NON-CONSENSUAL MOTOR VEHICLE TOWING SERVICE The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. The Huntington Beach-Municipal Code is hereby amended by adding Chapter 5.67, said chapter to read as follows: Chapter 5.67 NON-CONSENSUAL MOTOR VEHICLE TOWING SERVICE Sections: 5.67.010 Scope of Chapter 5.67.020 Towing operation defined 5.67.030 Rates and charges 5.67.010 Scope of Chapter. The provisions of this Chapter shall apply to all persons and businesses providing nonconsensual.vehicle tow service pursuant to California Vehicle Code Sections 22658 and 22953, and similar successor statutes which is not directed by the Huntington Beach Police Department or other law enforcement agency whether established before or after the effective date hereof. 5.67.020 Towing operation defined. (a) As used in this chapter, "towing operation" means the activity of towing and storing of vehicles, and the performance of other services incident thereto, for compensation within the City of Huntington Beach, without the implied or express consent or knowledge of the owner(s) of the vehicle pursuant to California Vehicle Code Section 22658(a)[illegal parking on private property] and Section 22953(b)[illegal parking within 15 feet of a fire hydrant, in a fire lane, or in a stall designated for disabled person parking] and related and successor statutes, and which is not directed by the Huntington Beach Police Department. (b) The provisions of this Chapter shall not apply to any other towing operation, including, but not limited to, towing operations: (1) That provides tow service exclusively to members of an association, automobile club or similar organization, and receives remuneration only from the sponsoring association, automobile club or similar organization; (2) That provides tow service without charge or fee for other vehicles owned or operated by the individual or organization furnishing tow service; 00ord,'NIC5.67i 10/4,;00 1 (3) That provides tow service for other vehicles owned or operated by the individual or organization furnishing the tow service, but which are being operated under terms of a rent or lease agreement or contract, and such towing is performed on a nonprofit basis or said fee is a part of the rent or lease agreement or contract; (4) That provides exclusively consensual, nonemergency towing assignments which include towing of vehicles that have been involved in a collision, but have been removed from the scene; that have experienced mechanical failure, but have been removed from the roadway and no longer constitute a hazard; or that,being mechanically operative, are towed for convenience. All non- emergency towing assignments require authorization from the registered owner, legal owner, driver, or other person in control of such vehicle. (5) That provides tow service which is directed by the Huntington Beach Police Department pursuant to Huntington Beach Municipal Code Section 5.66. 5.67.030 Rates and charges. (a) Pursuant to California Vehicle Code Section 22658(i) and 0) the City Council of the City of Huntington Beach shall establish by Resolution rates and charges for all towing operations. (b) No tow fee charged shall be higher than the fees authorized by Resolution of the City Council. SECTION 2. This Ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the Ath day of December 2000. Mayor ATTEST: dX04 APPROVED AS TO FORM: City Clerk /Lz- f 1 �°l JJD City Attorney REVIEWED AND APPROVED: 6A 1Z) INIT T AND APPRO E City A ministrator �j / - Police Chief 00ord/MC5.67/10/18/00 2 Ord. No. 3480 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on the 20th day of November, 2000, and was again read to said City Council at a regular meeting thereof held on the 4th day of December, 2000, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None I,Connie Brockway CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council, do hereby certify that a synopsis of this ordinance has been published in the Independent on 12000 In accordance with the City Charter of said City City Clerk and ex-officio Jerk Connie Brockway, City Clerk of the City Council of the City Deputy City Clerk of Huntington Beach, California g:lord i nanc/ord bkpg.doc ATTACHMENT #2 RESOLUTION NO. 2000-i 00 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING A CITY FEE SCHEDULE FOR NON-CONSENSUAL TOWING SERVICES PURSUANT TO HUNTINGTON BEACH MUNICIPAL CODE §5.67.030 WHEREAS, Huntington Beach Municipal Code Section 5.67.030 authorizes the City to establish maximum charges for nonconsensual towing services; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach that the maximum charges for nonconsensual towing services shall be as set forth in Exhibit "A" attached hereto and by this reference made a part hereof; and BE IT FURTHER RESOLVED that the fees and amendments set out in Resolution No. 5159, as amended, relating to the maximum charges for nonconsensual towing services and garage impound services be deleted. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 20th day of November , 2000. a ATTEST: APPROVED AS TO FORM: City Clerk REVIEWED AND APPROVED: City Attorney "Chief VE City �inistrator j mp/k/resol uti on/towfee2/10/5/00 Res. No. 2000-100 EXHIBIT A Private Party Impounds Basic (standard sling or wheel lift truck), including first day storage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100.00 Medium duty or flatbed, including first day storage . . $120.00 ' Heavy duty (3) axle or larger, including first day storage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $160.00 Dolly $33.00 Rollover minimum $33.00 Minimum Service Call or Drop Fee $35.00 The fee established by this Resolution shall be adjusted based upon the change in the rates established for police directed towing services. The Chief of Police shall then notify the City Clerk in writing of said adjustment. The adjusted. fee amount shall constitute the fee authorized by Huntington Beach Municipal Code Chapter 5.67. ALL OF THE ABOVE RATES ARE DOUBLED IF THE TOW OPERATOR HAS TO WORK IN WATER ABOVE THE KNEES j mp/k/resolution/towfee2/10/20/00 Res. No. 2000-100. STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 20th day of November, 2000 by the following vote: AYES: Julien, Sullivan, Garofalo, Green, Dettloff, Bauer NOES: None ABSENT: Harman ABSTAIN: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California ATTACHMENT #3 ORDINANCE NO. 3481 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 5.66 OF THE HUNTINGTON BEACH MUNICIPAL CODE RELATING TO THE MOTOR VEHICLE TOWING SERVICES The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. The title of Chapter 5.66 is amended to read as "Police Directed Motor Vehicle Towing Service." SECTION 2. Section 5.66.010 of the Huntington Beach Municipal Code is hereby amended to read as follows: 5.66.010 Scope of chapter. The provisions of this chapter shall apply to all persons and businesses providing nonconsensual vehicle tow service which is directed by the Huntington Beach Police Department whether established before or after the effective date hereof. SECTION 3. Section 5.66.020 of the Huntington Beach Municipal Code is hereby amended to read as follows: 5.66.020 Towing operation defined. (a) As used in this chapter, "towing operation" means the activity of towing and storing of vehicles, and the performance of other services incident thereto, for compensation within the city of Huntington Beach'which is directed by the Huntington Beach Police Department without the consent of owner(s) of the vehicle. Such towing shall include: (1) Any official police impound garage and towing service, designated by resolution of the City Council. (2) Any police directed tow, including but not limited to any tow from the scene of an accident, arrest, or issuance of a citation. (b) The provisions of this chapter shall not apply to any towing operation: (1) That provides tow service exclusively to members of an association, automobile club or similar organization, and receives remuneration only from the sponsoring association, automobile club or similar organization; (2) That provides tow service without charge or fee for other vehicles owned or operated by the individual or organization furnishing tow service; (3) That provides tow service for other vehicles owned or operated by the individual or organization furnishing the tow service, but which are being operated under terms of a rent or lease agreement or contract, and such towing is performed on a nonprofit basis or said fee is a part of the rent or lease agreement or contract; (4) That provides exclusively consensual, nonemergency towing assignments which include towing of vehicles that have been involved in a collision, but have been 00ord/mc5.66a/10/17/00 1 removed from the scene; that have experienced mechanical failure, but have been removed from the roadway and no longer constitute a hazard; or that, being mechanically operative, are towed for convenience. All nonemergency towing assignments require authorization from the registered owner, legal owner, driver, or other person in control of such vehicle, and/or (5) That provides tow service without the implied or express consent or knowledge of the owner(s) of the vehicle which is not directed by the Huntington Beach Police Department, including but not limited to towing initiated pursuant to California Vehicle Code Section 22658(a)[illegal parking on private property] and Section 22953(b)[illegal parking within 15 feet of a fire hydrant, in a fire lane, or in a stall designated for disabled person parking] and their successor statutes. SECTION 4 Section 5.66.130 is deleted in its entirety. SECTION 5 Section 5.66.134 is deleted in its entirety. SECTION 6. Section 5.66.160 of the Huntington Beach Municipal Code is hereby amended to read as follows: 5.66.160 Release of vehicle. A tow operation permittee shall provide for release of vehicles Monday through Friday from 8 a.m. to 5 p.m., excluding officially recognized holidays. Permittees may additionally release vehicles on other days and hours. Upon application to the Chief of Police, or his designee, and a showing of hardship by the permittee, an adjustment in the days and hours during which vehicles may be released may be made. SECTION 7. This ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 4th day of December , 2000. 4/mayor ATTEST: G��lrl.� APPROVED AS TO FORM: City Clerk 12— City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED: City AArninistrator , City Attorney 6��7J� 00ord/mc5.66a/10/17/00 2 Ord. No. 3481 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a reg_ lar meeting thereof held on the 20th day of November, 2000, and was again read to said City Council at a r_eg_ular meeting thereof held on the 4th day of December, 2000, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None I,Connie Brockway CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council, do hereby certify that a synopsis of this ordinance has been published in the Independent on ,2000 In accordance with the City Charter of said City City Clerk and ex-officio 61erk Connie Brockway, Ci . Clerk of the City Council of the City Deputy City Clerk of Huntington Beach, California g:/ordinanclord bkpg.doc ATTACHMENT #4 Ordinance No. 3 y kl Legislative Draft Chapter 5.66 POLICE-DIRECTED MOTOR VEHICLE TOWING SERVICE Sections: 5.66.010 Scope of chapter 5.66.020 Towing operation defined 5.66.030 Towing operation Permit required 5.66.040 Application for towing operation permit Fee 5.66.050 Denial of towing operation permit 5.66.060 Tow unit operators Permit required 5.66.070 Tow unit operators Identification card 5.66.080 Application for tow unit operator permit Fee 5.66.090 Denial of tow unit operator permit 5.66.100 Insurance required 5.66.110 Business location 5.66.120 Towing authorization c 6 130 Removal ffopr-ivate pr-epeAy N tifie t o l c 66 135 Vehieles . af4Eed less than e >,our- 5.66.140 Itemized statement When required 5.66.150 Vehicle repair or alteration When permitted 5.66.160 Release of vehicle 5.66.170 Rates and charges Signs Change of 5.66.180 Permits Nontransferable 5.66.190 Change of ownership 5.66.200 Change of ownership Application fee 5.66.210 Change of ownership Action on 5.66.220 Permit for each location required 5.66.230 Change of location 5.66.240 Permit renewal 5.66.250 Towing service Permit denial Appeal 5.66.260 Permit suspension and revocation 5.66.270 Suspension or revocation Grounds for 5.66.280 Appeal procedure 5.66.290 Appeal Hearing 5.66.300 New application after denial or revocation 5.66.310 Violation Penalty 5.66.010 Scope of chapter. The provisions of this chapter shall apply to all persons and businesses providing nonconsensual vehicle tow service which is directed by the Huntington Beach Police Department whether established before or after the effective date hereof. Jmp/1egdraft//mc5.66a/10/17/00 1 I 5.66.020 Towing_operation defined. (a) As used in this chapter, "towing operation" means the activity of towing and storing of vehicles, and the performance of other services incident thereto, for compensation within the city of Huntington Beach which is directed by the Huntington Beach Police Department without the consent of owner(s) of the vehicle. Such towing shall include: . (1) Any official police impound garage and towing service, designated by resolution of the City Council. (2)Any police directed tow, including but not limited too. 0 A any tow from the scene of an accident, arrest, or issuance of a citation; (b) Any tow of an illegally par4Eed vehiele for-viola4ion of any loeal, state or- federal regulation. (b) The provisions of this chapter shall not apply to any towing operation: (1) That provides tow service exclusively to members of an association, automobile club or similar organization, and receives remuneration only from the sponsoring association, automobile club or similar organization; (2) That provides tow service without charge or fee for other vehicles owned or operated by the individual or organization furnishing tow service; (3) That provides tow service for other vehicles owned or operated by the individual or organization furnishing the tow service, but which are being operated under terms of a rent or lease agreement or contract, and such towing is performed on a nonprofit basis or said fee is a part of the rent or lease agreement or contract; (4) That provides exclusively consensual, nonemergency towing assignments which include towing of vehicles that have been involved in a collision, but have been removed from the scene; that have experienced mechanical failure, but have been removed from the,roadway and no longer constitute a hazard; or that, being mechanically operative, are towed for convenience. All nonemergency towing assignments require authorization from the registered owner, legal owner, driver, or other person in control of such vehicle, and/or (5) That provides tow service without the implied or express consent or knowledge of the owner(s) of the vehicle which is not directed by the Huntington Beach Police Department, including but not limited to towing initiated pursuant to California Vehicle Code Section 22658(a)[illegal parking on private property] and Section 22953(b)[illegal parking within 15 feet of a fire hydrant, in a fire lane, or in a stall designated for disabled person parking] and their successor statutes. Jmp/legdraft//mc5.66a/10/17/00 2 4 5.66.030 Towing operation Permit required. No person shall engage in, manage, conduct or operate a towing operation without a written permit from the Chief of Police. (urg.Ord.24457/80.27ss- 9/a5) 5.66.040 Application for towing operation permit Fee. An application for a towing operation permit shall be filed with the Chief of Police on forms furnished by him, shall be accompanied by a fee set by resolution of the City Council, and shall contain the following information: (a) The name, date of birth, driver's license number, business and residence addresses of the applicant, if a natural person; or if a corporation, its name, date and place of incorporation, address of its principal place of business, and the names of its principal officers,together with their respective residence addresses; or if a partnership, association or unincorporated company, the names of the partners, or of the persons comprising such association or company, and the business and residence of each partner or person; (b) A description of each tow truck or other vehicle proposed to be used by the applicant, together with engine number, vehicle identification number, and state vehicle license number thereon; (c) The names, dates of birth, addresses and drivers' license numbers of all tow truck operators employed by the applicant; (d) The business, occupation, or employment history of the applicant for three (3) years immediately preceding the date of the application, including if applicable, the business license and permit history while operating as a tow service; (e) All criminal convictions or proceedings in which a plea of guilty or nolo contendere was entered, including vehicle code violations; (f) Such other identification and information reasonably necessary for the Chief of Police to carry out the purposes of this chapter. 5.66.050 Denial of towing operation permit. The Chief of Police, or his designee, shall cause an investigation of the applicant, and the application for a permit may be denied on any of the following grounds: (a) The applicant is unfit to be trusted with the privileges granted by such permit, or has a bad moral character, intemperate habits or a bad reputation for truth, honesty or integrity; (b) The applicant has not completed all portions of the application. (c) The applicant is a person under the age of eighteen (18) years; (d) The applicant has made a material misrepresentation in the application; (e) The applicant, his agent or employee, or any person connected or associated with the applicant as partner, director, officer, stockholder, associate, or manager has committed or aided Jmp/Iegdrafd/mc5.66a/10/17/00 3 or abetted in the commission of any act, or act of omission, which if committed by a permittee would be grounds for suspension or revocation of a permit; (f) The towing service, as proposed by the applicant, does not comply with all applicable laws including, but not limited to, health, zoning, fire and safety requirements and standards. 5.66.060 Tow unit operators Permit required. (a)No person shall operate or drive a tow unit without a written permit from the Chief of Police. (b)No person shall be employed as a tow unit operator until such time as said person has received a written permit from the Chief of Police to act as a tow unit operator. 5.66.070 Tow unit operators Identification card. Every person directly engaged in the operation of a tow unit shall carry on his person at all times while so engaged, an identification card, issued by the Police Department, identifying the bearer as a tow unit operator, and shall display such card to any police officer upon request. The identification card shall bear the name, physical description, business address, and photograph of the permittee, and the name and address of the garage employing the permittee. The identification card shall be returned to the Police Department immediately upon suspension, revocation or termination of employment. 5.66.080 Application for tow unit operator permit Fee. An application for a tow unit operator permit shall be.filed with the Chief of Police on forms furnished by him, shall be accompanied .: by a fee, set by resolution of the City Council,and shall contain the following information: (a) The name, date of birth, driver's license number, residence address, and the name and address of his employer; (b) The business, occupation, or employment history of the applicant for three (3) years immediately preceding the date of the application, including permit history, if any, as a tow unit operator; (c) All criminal convictions or proceedings in which a plea of guilty or nolo contendere was entered, including vehicle code violations; (d) Such other identification and information reasonably necessary for the Chief of Police to carry out the purposes of this chapter. 5.66.090 Denial of tow unit operator permit..The Chief of Police, or his designee, shall cause an investigation of the applicant, and the application for a permit may be denied on any of the following grounds: (a) The applicant is unfit to be trusted with the privileges granted by such permit, or has a bad moral character, intemperate habits or a bad reputation for truth, honesty or integrity; Jmp/legdraft//mc5.66a/10/17/00 4 (b) The applicant is a person under the age of eighteen (18) years; (c) The applicant has made a material misrepresentation in his application; (d) The applicant has not completed all portions of the application. (e) The applicant has committed or aided or abetted in the commission of any act, or act of omission, which if committed by a permittee would be grounds for suspension or revocation of a permit; (f) The applicant does not possess a valid California driver's license. 5.66.100 Insurance required. Before an application for a permit to operate a towing operation will be issued or renewed, the applicant must furnish the Chief of Police, or his designee, a certificate of insurance, written by an insurance company admitted to do business in this state, in minimum amounts established by resolution of the City Council, and approved as to form by the City Attorney. . 5.66.110 Business location. Any person conducting a towing operation shall maintain a physical location from which his business is conducted. Such physical location shall provide an office with an adjacent yard for vehicle,storage, approved by the Chief of Police, or his designee, prior to a permit being issued. 5.66.120 Towing authorization. A permittee shall not attach a vehicle to a tow.unit-without first receiving written authorization to do so by the registered owner, legal owner, driver, or other person in control of said vehicle. Such authorization shall list the services offered and the rates and charges required therefor. A copy of such authorization shall be furnished to the person authorizing the tow, and shall list the name, address and telephone number of the towing operation business and the days and hours the business is open for.release of vehicles. Such copy- shall also be signed by the tow unit operator performing the authorized service. sign,5.66.130 Removal from or-ivate i3r-epef4y Notifieation. The owner-or-pefsen in lawful p of",pr-ivate pfopefty may, subsequent to nefib4ng by telephene or-the most expeditious means nearest publie gar-age, if there is displayed at all entr-anees to the pi:apeAy in plain vj ew a that pr-opei4y shall be liable for any stE)Fage E)r-towing ehafges if fie sign is posted, as provided b (a) The name, address and phone number-of the per-son authA -val of the illegiil4y parked . ehi to 1 The e .,e do ofh the. ., eta,. ,.oAy f•em .,,L,ie the hil e vece to e e �v� z b d. Jmp/legdrafr//mc5.66a/10/17/00 5 .(e) The name, address and telephene ntffnber of the leeatienwher-e the vehiele is to be StereA ( > and the eeler-ef the vehiele to be mod. wJ illa.name and addfess of the 0 0pfepeftyprivate - - ei4y .,1-ieh ;s held open to the of a diSEefnible porrtie rtncreef f par-kingE) vehieles at no > shall net tow of femeve, er eattse the towl > of any vehiele within V11V 11VUS one of'the vehicle being paf:ke l 1,ouf 5.66.140 Itemized statement When required. A permittee hereunder shall furnish to the person authorizing the towing service, or.his agent, an itemized statement of services performed, .including labor and special equipment used in towing the vehicle and.the charges made therefor upon the request of- (a) The registered owner; or (b) The legal owner; or (c) The insurance carrier of either(a) or(b); or. (d) The duly authorized agent of any of the foregoing. The permittee shall furnish a copy of such statement to any person authorized to receive the same without demanding payment as a condition precedent. 5.66.150 Vehicle repair or alteration When permitted. No permittee shall make any repairs or alterations to a vehicle without first being authorized by(a) the registered owner; or(b) the legal owner; or(c) the insurance agent of either(a) or(b); or(d) the authorized agent of any of the foregoing. Parts or accessories shall not.be removed from any vehicle without authorization except as necessary for security purposes. Under such.circumstances, the parts or accessories removed shall be listed on the itemized statement and.stored in the-business-office. This section shall not be construed as prohibiting permittees from making emergency alterations necessary to permit the removal by towing of such vehicle. Jmp/legdrafd/mc5.66a/10/17/00 6 0 5.66.160 Release of vehicle. A tow operation permittee shall provide for release of vehicles Monday through Friday from 8 a.m. to 5 p.m., excluding officially recognized holidays. Permittees may additionally release vehicles on other days and hours. Upon application to the Chief of Police, or his designee, and a showing of hardship by the permittee, an adjustment in the days and hours during which vehicles may be released may be made. Permittee shall not Fefuse to relinquish possession or eentr-el of a vehiele to its lawful owner-, E) f' to the agent of the lawful owner-as evideneed by keys whieh operate said vehiele and by the statement and dr-iver-'s lieense of said agent, wher-e said vehiele has been seized as a pfivate pr-epeFty impatind and where sueh vehiele has not yet been r-emoved to a gar-age as required b Galifemia Vehiele Code seetion 2285 1. Fef the purpose of this seetion, a vehiele is removed to gar-age when it is physieally present in sueh gar-age. A lien attaehes when any vehiele is eapable of being towed upon the r-eadway by a tow tFuek. Any vehiele owner-who r-etums to theif vehiele while the vehiele is still present may r-etr-ieve their-vehiele per-Galifemia Vehiele Code seetien 2885 1(a)(2) by pa�4ng,a "drop fee" established by Gity.Gauneil f:esalutiefl, One half the.neffflal tow fee. 5.66.170 Rates and Charges - Signs - Change of. (a) Rates and charges for all tows and vehicle storage shall be established by resolution of the City Council of the City of Huntington.Beach. Written notice of proposed changes shall be mailed to the affected tow services a minimum of forty-five (45) days prior to the date set for City Council approval by the Chief of Police or his designee. (b) A tow operation permittee shall post and maintain a list of the rates and charges for all services offered, placed conspicuously in the office or any location where customer financial transactions take place. Such list shall.have.letters a minimum,of one (1) inch high with one. quarter inch stroke on a background of contrasting color. (c) No tow or storage fee charged shall be higher than the fees authorized by resolution of the City Council. 5.66.180 Permits - Nontransferable. Permits shall not be transferable except as hereinafter provided. 5.66.190 Change of ownership. When a towing operation for which a permit has been issued is sold or transferred to one of the transferees listed in this section, the Chief of Police, or his designee, may endorse a change of ownership on such permit upon written application by the transferee. Only.the following transferees or successors shall be entitled to such transfer of . permit: (a) Duly qualified representatives of permittees regularly appointed by courts of competent jurisdiction, assignees for the benefit of creditors, and spouses or children of deceased permittees. Jmp/Iegdraft//mc5.66a/10/l 7/00 7 (b) The surviving partner or partners of a dissolved partnership. (c) A new partnership consisting of the members of a predecessor partnership, plus their spouse or spouses of any such members. (d) A new corporation, organized,.and:controlle&by an individual or unincorporated permittee for the purpose of acquiring, or which has acquired the assets of the business previously owned and operated by such permittee. (e) Upon dissolution of a closely held corporation; the stockholders to whom the assets are distributed. 5.66.200 Change of ownership Application fee. A transferee or successor entitled to a transfer of permit must file an application for such transfer with the Chief of Police within thirty(30) days after he assumes control of the towing operation. The Chief of Police may require such evidence of the transfer of ownership or control as he deems necessary. A fee equal to 20 percent of the original fee for the permit shall accompany the application. 5.66.210 Change of ownership Action on. The Chief of Police shall transfer-the-permit to an applicant entitled to such transfer if he finds that the transfer will not adversely affect the peace, health, safety, convenience and general welfare of the public, and the transferee possesses the qualifications required of original applicants. 5.66.220 Permit for each location required. No tow operation permittee shall conduct a towing operation at a location other than the location specified in the permit. 5.66.230 Change of location. Where no conflict exists with the city's zoning regulations or other provisions of this code, a change of location may be endorsed on a permit by the Chief of Police, or his designee, upon written application by.a,.permittee, accompanied.by a.change of location fee in a sum set by resolution of the City Council. 5.66.240 Permit renewal. Permits for towing operations and tow unit operators may be renewed on a year to year basis provided that the permittees continue to meet the requirements contained in this chapter. The renewal fee for a towing operation and for a tow unit operator shall be set by resolution of the City Council. 5.66.250 Towing service Permit denial Appeal. If the Chief of Police, following investigation of the applicant, finds that the applicant does not meet the requirements set forth in this chapter, he shall deny the application and notify the applicant by certified mail of such denial.Any applicant who is denied a permit by the Chief.of Police may appeal such denial to the City Administrator, pursuant to the provisions of this chapter. 5.66.260 Permit suspension and revocation. The Chief of Police, or his designee, may, based on evidence that any provision of this chapter has been violated, suspend or revoke a permit. The permittee shall be provided with written notice by first class mail, postage prepaid, of such suspension or revocation. The permittee may file an appeal with the City Clerk within fifteen J mp/legdrafd/mc5.66a/10/17/00 8 (15) days of the date of mailing of the notice of denial, suspension or revocation. In the event an appeal is timely filed, the suspension or revocation shall not take effect until final decision has been rendered by the City Administrator, or his designee, unless permittee has requested a continuance, as provided elsewhere in this chapter. If no appeal is filed, the suspension or revocation shall become effective upon expiration of the period for filing appeals. 5.66.270 Suspension or revocation.Grounds.for.Jt,-shall.be.grounds.for.-suspension-or-revocation of a permit, issued under the provisions of this chapter, if any permittee, his agent.or employee or any person connected or associated with the permittee as partner, director, officer, stockholder, general manager, or person who is exercising managerial authority of or on behalf of the permittee has: (a) Knowingly made any false, misleading or fraudulent statement of a material.fact in.an application for a permit, or in any report or record required to be filed with the Police . Department; or (b) Violated any provision of this chapter or of any.statute relating.to.his permitted activity; or (c) Been convicted of a felony or any.crime involving theft or embezzlement; or (d) Committed any act constituting dishonesty or fraud; or (e) Committed any unlawful, false, fraudulent, deceptive or dangerous act while conducting a towing operation business; or (0 Published, uttered or disseminated any false, deceptive or misleading statements or advertisements in connection with the operation of the towing service; or (g) Violated any rule or regulation adopted by the City Council,relating to permittee's business or- activity; or (h) Willfully failed to comply with the terms of any contract made as a part of the exercise of the towing operation; or (i) Conducted the towing operation in a manner contrary to the peace, health, safety and general welfare of the public; or 0) Operated a tow unit without a valid California driver's license, or when such license has been suspended or revoked; or (k) The permittee, his agents or employees, obtained a tow contract by use of fraud, trick, dishonesty or forgery; or (1) The permittee, his agents or employees, stopped and solicited on any street, highway or other public thoroughfare the rendering of assistance to a person or disabled vehicle without first being Jmp/1egdrafd/mc5.66a/10/17/00 9 requested to do so except to render emergency aid when there exists an imminent peril to life or property; or (m) The permittee, his agents or employees, towed a vehicle to a location other than listed as the business address of such permittee without first receiving authorization to do so by the person authorizing the tow; or (n) The permittee, his agents or employees, after towing a vehicle to the business location of permittee without authorization, towed.,such vehicle to another location for storage; or (o) The permittee, his agents or employees, have conspired with any person to defraud any owner of a vehicle, or any insurance company, or any other person financially interested in the charges for towing or storage of a vehicle, by making false or deceptive statements relating to such towing or storage; or (p) The permittee, his agents or employees, removed a vehicle involved in a collision prior to arrival of police, and a person, as a result of such collision,.suffered.death or injury; or the driver of an involved vehicle,. or a party to such collision, was under the influence of a drug or intoxicant of any nature; or there is evidence that such vehicle was involved in a hit-and-run collision; or (q) The permittee, his agents or.employees, has.charged for.services not performed, equipment not employed or used, services or.equipment.not needed, or has otherwise materially misstated the nature of any service performed or equipment used. 5.66.280 Appeal procedure. (a) The City Administrator, or his designee, shall schedule a hearing to be held within fifteen (15) days after the filing of the notice of appeal. (b)Notice of the date, time and place of the hearing shall be mailed, postage prepaid, at least ten (10) days prior thereto to the permittee at the address given in the notice of appeal, or if none is provided, to the address set forth in the permit application. (c) The City Administrator, or his designee, in his sole discretion, may grant or deny continuances; may dissolve stays of pending orders of denial, suspension or revocation; and may appoint outside Hearing Officers. (d) The City Administrator, or his designee, shall determine, after consideration of all evidence presented, whether a permit should be issued, reinstated, suspended or revoked. The decision of the City Administrator, or his designee, shall be final. (e) The City Administrator shall establish written administrative regulations implementing the provisions of this section. Jmp/legdraft//mc5.66a/10/17/00 10 5.66.290 Appeal Hearing. The following rules of evidence shall apply: (a) Oral evidence shall be taken only under oath or affirmation. The Hearing Officer shall have authority to administer oaths, and to receive and rule on admissibility of evidence. (b) Each party shall have the right to call and examine witnesses,,to introduce exhibits, and to cross-examine opposing-witnesses,who.,have testified under:!direct!�examination::The Hearing Officer may call and examine any witness. (c) Technical.rules relating to evidence,and-witnesses shall not apply to hearings provided-for herein. Any relevant evidence maybe admitted if it is material-and.is evidence customarily relied upon by responsible persons in the conduct of their affairs regardless of•the existence of any common law or statutory rule which might make admission of such evidence improper over objection in civil actions. Hearsay testimony may be used for the purpose of supplementing or explaining any evidence given in direct examination, but shall not be sufficient in itself to support a finding unless such testimony would be admissible over objection in civil actions. The rules of privilege shall be applicable to the extent that they now, or are hereafter permitted in civil actions; and irrelevant, collateral,undue, and repetitious testimony shall be excluded. 5.66.300 New application after denial or revocation. When the permit of any person is revoked or denied for cause,.no new or other application for a permit from the same person shall be accepted within one (1) year after•such revocation-or denial unless•the applicant can show a material change in his situation which would justify the issuance of such permit. 5.66.310 Violation Penalty. Any person violating any provision of this chapter shall be guilty of a MISDEMEANOR and upon conviction thereof shall be punished by a fine of not more than five hundred dollars ($500) or by imprisonment in the county jail for a period not to exceed six (6) months, or by both such fine and imprisonment, and each such person shall be guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this chapter is committed, continued, or permitted. Jmp/1egdraft//mc5.66a/10/17/00 1 1 RCA ROUTING SHEET INITIATING DEPARTMENT: CITY ATTORNEY'S OFFICE SUBJECT: Towing Services COUNCIL MEETING DATE: November 6, 2000 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff Assistant City Administrator Initial City Administrator (Initial) ( ) ( ) City Clerk EXPLANATION FO,R:RETURN OF ITEM: Only)(Below Space For City Clerk's Use RCA Author: jmp ROUTING HEET RCA S INITIATING DEPARTMENT: CITY ATTORNEY'S OFFICE SUBJECT: Towing Services COUNCIL MEETING DATE: November 6, 2000 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED . Administrative Staff L Assistant City Administrator Initial ) City Administrator (Initial) ( ) ( ) City Clerk ) EXPLANATION FOR RETURN OF ITEM: Only)(Below Space For City Clerk's Use RCA Author: jmp Allen W. Ralston R E C E I V E Attorney at Law Q V 360 Santiago Ave 0 3 2000 Long Beach,CA 90814 (562)494-4104 City of Huntington Beach Fax No.(562)597-9527 CityCouncil Offioae October 31, 2000 City Councilmen Green, Bauer & Harmon City Administrator, Ray Silver City Attorney, Scott Field/Jennifer City Hall 2000 Main Street Huntington Beach, CA 92648 Gentlemen: Pursuant to your request at the meeting on October 9, 2000, please find comments in regard to the establishment of Police Directed and Non-Consensuai Towing Services . The comments are directed to specific attachments to the Agenda and request for Council Action. (1] Attachment 1 - no comment [2] Attachment 2' - no comment [3] Attachment 3— Section 5 . 66 . 035 would require that the Chief of Police enter into an agreement and the City Council approve and ratify any such agreement . [4] Attachment 4 - Section 5 . 66 . 035 would require that the Chief of Police enter into an agreement and the City Council approve and ratify any such agreement and under Sub Item "a" requires that no less than two (2) nor more than three (3) business entities be awarded an agreement . [5] Attachment 5 - no comment [6] Attachment 6 - sets forth the requirements for Request for Qualification. [7] Scope of Work III - Scope of work is indefinite in that it allows proposal to be innovative or an alternative scope to the request for proposal . [8] IIIa - Towing of Police vehicles without charge is in contravention of the laws of the State of California. [9] Proposal Requirements IV - States that excessive or irrelevant material will not be favorably received. It is suggested that a much simpler method would be to provide a form to said applicants setting forth facts requested and a specific section in regard to innovative or. alternate scopes . It is assumed that in the alternate scope the City is requesting information in regard to the use of energy efficiency fuel, i .e . Propane, low-jacks to know where all vehicles are at all times, cameras and microfilm in order to keep records of the events occurring and the use of internet for communications between the Police Department and the operators . [10] IV 2 - The agreement also requests approach methodically, restraints, problems which are probably not applicable to this circumstance . [11] IV 3b - requires a minimum 10 years of experience providing towing and storage service . Is this in a specific entity or. can this be joint ventured or assigned to another party? [12] IV 3c - Establishes criteria that may not be met by any of the towing services in Huntington Beach and may take a sufficient period of time to comply with because of the conditional use permit requirement in this type of use. The time period required for this may need to be expanded based on the City' s cooperation in assisting the operators in complying with these requirements . The Operators should have time periods extended if they are in good faith attempting to comply. [13] IV 4 - The requests for similar services to other public entities to demonstrate competence should be modified to require recommendations of Huntington Beach who have been working with these towing services for a period of time. If there is no recommendation, then this should be established. If they are being recommended, then this should also be established. The party most qualified to determine the competency of these operators should be the City of Huntington Beach with whom they all are currently doing business . [14] V 4 - This Disclaimer basically invalidates the terms of the request for proposal . [15] VI - This paragraph sets forth 100 points to be used in judging the cooperator' s competency, however, 70 points are awarded for the way the form is completed, including 25 points for innovative suggested approaches and allows only 30 points for .the ability and competency and commitment of the-operator to perform the function for which he is being contacted. Once again the primary criteria should be the history of the operator with the City of Huntington Beach. [16] Attachment 7 - Paragraph 3 - The requirements set forth in 3 Al, 2 , 3 reduces the opportunity for operators within the City of Huntington Beach who have competently performed on behalf of the City without any major reason for some of the specific requirements in regard to number of vehicles, where the office is located and/or where an enclosed storage garage is located. [17] Paragraph 4 milestones are established which are not within the tow operator' s ability to comply unless the City cooperates .and/or allows extension of. said time period as long as the tow. operator is attempting in good faith to comply with the requirement . [18] Paragraph 5 - said requirements terminate the tow operator' s opportunities within 12 months if they are unable to get the requisite permits . [19] Paragraph 6 - Item a needs to be more clearly defined as to who is an authorized party. Item a is unclear in its designation. [20] Paragraph 8 - Item g may be discriminatory. [21] Paragraph 10 - There is no definition of how the additional 4 year option is established and whether all operators will be on the same term for the total time period if agreements are completed. [22] Paragraph 11 - This an illusory contract in the sense that it may be terminated by the City without cause upon 90 days notice . If the tow operator wants to terminate and give notice that is one issue but for the City to have that right after the investment and requirements established by the City is not equitable. [23] Paragraph 12 - The final determination should be made by the City Council . (This should be the requirements throughout this ordinance ..) _ [24] Paragraph 13 -.The assignment or transfer should require that the successor in interest be a direct and general owner not .an indirect and/or non operating owner. If you have any questions in regard to the above referenced comments, please contact the undersigned. Very truly yours, Allen W. Ralston AWR/r f Law Office of Rose Marie Hollander _ 2850 Mesa Verde Drive East, #115 Costa Mesa, CA 92626 (714) 444-1895 November 1, 2000 City of Huntington Beach Tom Harman, Mayor Pro-Tem 2000 Main Street Huntington Beach, CA 92648 City of Huntington Beach Peter Green, Council Member 2000 Main Street Huntington Beach, CA 92648 City of Huntington Beach Ralph Bauer, Council Member c= 2000 Main Street Huntington Beach, CA 92648y City of Huntington Beach Mr. Ray Silver City Administrator 2000 Main Street Huntington Beach, CA 92648 > Huntington Beach City Attorney Jennifer McGrath, Esq. Deputy City Attorney 2000 Main Street Huntington Beach, CA 92648 Huntington Beach Police Department Ronald E. Lowenberg Chief of Police 2000 Main Street Huntington Beach, CA 92648 Huntington Beach Police Department Lt. Lloyd Edwards 2000 Main Street Huntington Beach, CA 92648 RE: Non-Consensual Towing Issues We are in receipt of a package this date, including a cover letter dated October 20, 2000 indicating that issues regarding non- consensual towing will be submitted to the City Council for action on November 6, 2000. November 1, 2000 page two It was decided on the hearing held on October 9, 2000 that responses to the proposed code changes relating to non-consensual tows would be due within thirty (30) days, rebuttals would be made in approximately two (2) weeks and a. subsequent meeting would be held. This office has been gathering data to present to the committee in opposition to various issues discussed at the October 9, 2000 meeting, however the main issues in conflict would be - no grandfather clauses or nonconforming uses; office on the lot; and the unrestrained power of the Chief of Police. Background 1. Huntington Auto Service has been serving the City for over forty (40) years and is one of the two (2) original entities handling police tows. Huntington Auto Service originally had an office at 610 Main Street, however, due to certain action taken by the City regarding earthquake refurbishment, had to vacate those premises and sell the property on which the building sat due the great expense of bringing the building to code. The decision to sell the property located at 610 Main Street and 607 Lake Street was made also due. to complaints received from the purchasers of homes built by TNR Development in early 1999 adjacent to 610 Main Street and 607 Lake Street. 2 . In addition to the Main Street property, Huntington Auto Service has used unimproved real property located on Crystal Street (Gothard) for storage, release, and lien sales of impounded vehicles, specifically apn 111-110-21 and 111-110-22 . Until 1990 when the real property was made a part of the Holly Seacliff Specific Plan, Huntington Auto Service enjoyed legal conforming use and possessed all required permits. The Holly Seacliff Specific Plan evolved from an agreement between PLC and the City of Huntington Beach for development. It allowed all existing owners to continue the present use of the property and specified said use as legal non-conforming, however the Plan does not allow for the development of the property. While it is true that a process can be commenced to obtain a Conditional Use Permit for improvements of the property, the costs required to be paid to the City, alone, exceed $10, 000 with no guarantee the permits will be issued. In addition the City designated the Crystal Street property to be within a cost reimbursement district established in either 1993 or 1994 and improvements to the real property will trigger costs reimbursements in excess of either $120, 000 or $289, 000 depending on which City document you are reading. 3 . Best Towing became part of the tow rotation for the City in approximately 1985 and therefore, it was appropriate that Best Towing meet all the then existing criteria. November 1, 2000 page three 4 . After Huntington Auto Service lost their tow privileges in 1999, and, after the sale of real property located at 610 Main and 60.7 Lake Street, Huntington Auto no longer had office premises, however continued to maintain the storage lot. . When Huntington Auto Services was re-issued their tow permit in April 2000 and was again placed on the police tow rotation, Huntington Auto Service obtained office space seventy-five (751 ) feet from the storage lot and have obtained all necessary permits and licenses. Issues 1. In order for Huntington Auto to meet the "level playing field" a capital outlay would be necessary and estimated as follows: a. Conditional Use Permit procedure $10, 000 b. Costs to reimburse district 129, 244 Note: there is documentation to support a higher amount $289, 126 C. Minimum construction costs 250, 600 800 sq. ft. bldg, asphalt, electrical, plumbing, fencing Total Minimum Capital outlay $389, 844 In that Huntington Auto Service does not have the minimum capital outlay in a bank account the amount would have to be borrowed. Based on a four year contract and comparison of four years of income at the projected rates, Huntington Auto Service would not be able to service the loan. 2 . No Grandfather Clauses or Nonconforming Uses: Huntington Auto Service possessed all the appropriate permits until the Holly Seacliff Specific Plan was developed and approved, and, by virtue of the Plan, still has the right to use the property for its permitted use. Huntington Auto also attempted to locate either a construction trailer or a butler type building on the storage lot however the Planning Department indicates the Holly Seacliff Specific Plan does not permit the location of such a building. In the alternative, Huntington Auto has completed research to attempt to locate alternate real property within the City of Huntington Beach which could be used as a tow storage yard and has failed to locate any property which would meet the proposed minimum standards. 3 . Level Playing Field: Lt. Edwards commented at the October 9, 2000, when queried by a council member, that one of the three companies on the police tow rotation would currently meet the proposed minimum standards, however we have reason to believe that the company indicated would have problems meeting the storage requirement on a 24 hours, 365 days per year basis. Research has been completed regarding other towing companies operating within November 1, 2000 page four the City of Huntington Beach and none would meet the minimum standards regarding equipment and/or storage. Information received by this office indicates Best Towing submitted their response to the meeting on October 9, 2000 and while this office does not know the exact contents of their response feels confident to assume that Best Towing would highly recommend the proposal as prepared. Thus, the City would create a monopoly and neither Huntington Auto Service nor Mandic Motors could ever hope to meet the minimum standards without the grandfather clauses. 4 . Objections to Total Authority by Chief of Police and Censure of the Tow Companies: The Chief -of Police is a city employee. The hiring process is conducted by the City Administrator and must ultimately be approved by the City Council. Since the Chief of Police is an employee, the contractual agreement should be between the tow company and the City allowing the Chief to make recommendations only. The City needs to implement a method for censure of the tow companies and notices of non-compliance should be sent by the Police Department requiring written response and action within thirty (30) days. All tow companies should be treated equally by the Police Department regarding censure and specific non-compliance issues should be stated in the proposed documents. If the Chief of Police does not accept the response and/or action within the time period indicated, the matter of termination of the tow company should be handled, by the City Council by a majority vote allowing the tow company to present their issues. Termination for no cause should be deleted from the proposed documents entirely. Further, the City Council should be the responsible party for renewing or failing to renew a contract with the tow company allowing the Chief of Police to make recommendations. If a tow company receives notice that the City does not intend to renew the contract, the City must provide the reasons for their decision in writing. Conclusion In conclusion, this office agrees that current city ordinance regarding police tow companies needs to be amended. However, as can be seen from our comments there are some serious issues that need to be addressed, not the least of which, is the proposed unfettered control of the Chief of Police with respect to censure of tow companies. It is unacceptable that a city employee should be given the right to terminate for cause or no-cause tow companies who are providing services to the City. It is further unacceptable that it is the Chief of Police who will enter in to these contracts, apparently without oversight and/or input from the City Council which is in the governing body of the City and unlike the Chief of Police is ultimately responsible to the citizens of Huntington Beach through the electoral process. November 1, 2000 page five Finally, while we understand that Best Towing had to expend considerable funds to be a part of the police tow rotation, that expenditure was due to the .economic and code requirements at the time. This does not equate to the requirement that the two original tow companies must expend similar capital outlay. In short, it appears that the City is trying to force out the two original tow companies who have served the City of Huntington Beach in excess of forty (40) years. It is evident that the Police. Department feels that the tow companies realize more profits than are realistic. The expense to operate a tow company, i.e. equipment maintenance and costs, wages, insurance, taxes, overhead ' expenses makes it difficult to obtain a net profit of more that ten (10%) percent. Since Huntington Auto has now implemented a management agreement with MetroPro Road Service, and since MetroPro Road Service has a larger business base the net profit would be somewhat higher. Additional comments regarding the proposed agreements for tow companies will be forwarded to the City by our management company, MetroPro Road Services under separate cover. Ve y tru y you , R se arie Hollander CITY OF HUNTINGTON BEACH por MEETING DATE: DEPARTMENT ID NUMBER: CA 00-12 � Council/Agency Meeting Held: De erre /Continued to: 20 — Oa ❑ Approved ❑ Conditionally Approved ❑ Denied CI 's Signature Council Meeting Date: Department ID Number: CA 00-12 CITY OF HUNTINGTON BEACH 0/?D. 1:4 3 `-I ?0 REQUEST FOR COUNCIL ACTION Res' ;-1000 ` loiD 0�D. 3 y8 3 SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administrator epi y GAIL HUTTON, City Attorney GAIL HUTTON, City Attorney PREPARED BY: RON LOWENBERG, Chief of Police CD - Ord, /Ves. aid 3 o"6/) ;ter,Ala /od T SUBJECT: Modifying Permitting Requirements and - sta ishing Rate_Req lation for Non-Consensual Towing Services ' c> IEEE Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Should the City delete permitting requirements and establish rate regulation for non-consensual towing services? Funding Source: None. Recommended Action: 1. Adopt Ordinance No. .31/eO adding Chapter 5.67 pertaining to non-consensual towing services. 2. Approve Resolution No. v?00a-/o0 establishing a City fee schedule for non- consensual towing services. 3. Adopt Ordinance No. 3 y$0 amending Huntington Beach Municipal Code 5.66 removing permitting requirements for non-consensual towing services. Alternative Action(s): Do not adopt ordinances. 4' towing1 -2- 10/19/00 7:49 AM REQUEST FOR COUNCIL ACTION MEETING DATE: DEPARTMENT ID NUMBER: CA 00-12 Analysis: A. Background Police-directed towing is any tow authorized by a law enforcement official, such as an illegally parked vehicle. Consensual towing is a tow which is authorized by the owner of the vehicle, such as a AAA tow. On the other hand, non-consensual towing (sometimes known as "private party impounds") is any tow initiated by a person other than the owner of the vehicle or a law enforcement official. For example, the property owner can have an abandoned vehicle towed from a parking garage, or an apartment complex where a non- resident has parked in resident-only parking. A non-consensual tow must be reported to the Police Department to ensure that the vehicle owner may contact the police department to ascertain the location of the vehicle and prevent the investigation of the tow as a stolen vehicle. Currently, the City only regulates police-directed and nonconsensual tow services. B. Non-Consensual Tow Services. In 1995, litigation was initiated against the City of Santa Ana by Patrick Tocher alleging federal preemption of local regulation of non-consensual towing (Tocher v. City of Santa Ana, known as "Tocher I"). Mr. Tocher was successful at the trial court level and Santa Ana appealed the decision. In the interim, Mr. Tocher initiated a second lawsuit against eight cities on similar grounds, including the City of Huntington Beach (Tocher v. City of Santa Ana, known as "Tocher II"). Based on the appellate decision of Tocher I, municipalities are preempted from regulating non-consensual towing services except for the regulation of rates charged to customers for the services; however, cities may regulate police-directed tows. Since early 1999, the City of Huntington Beach has allowed Mr. Tocher to operate as a non- consensual tow service without a permit pending the results of the Tocher I appeal. Now that Tocher has been decided, it is recommended that Huntington Beach Municipal Code §5.66 be amended to remove all permit requirements and related regulation of non-consensual towing services, and limit the City's regulations to establishing the maximum rates for non- consensual towing services. The proposed modifications do not impact police-directed towing services. The proposed ordinances would establish the maximum non-consensual tow rates to the same rate schedule as is used for police-directed tows. California Vehicle Code Section 22658(i) and 0) limits the City to limiting non-consensual tows rates at no greater than police- directed tow rates. The City Council Committee on police-directed tow services is currently reviewing proposed ordinances and resolutions related to police-directed towing services for future City Council consideration. towing1 -3- 10/19/00 7:49 AM t REQUEST FOR COUNCIL ACT* MEETING DATE: DEPARTMENT ID NUMBER: CA 00-12 Environmental Status: NA Attachment(s): NumberCity Clerk's Page . Description Ordinance adding Chapter 5.67 pertaining to non-consensual towing services; 5-8v 2. Resolution establishing a City fee schedule for non-consensual towing services; �f 04o)o • a20Ga0—/0D 3. Ordinance amending HBMC §5.66 regulating police directed towing services; 4. Legislative Draft of 5.66 RCA Author: McGrath towing1 -4- 10/19/00 7:49 AM