Prospective tow list operators must have a duly licensed towing
facility or auto repair facility meeting the requirements set forth
in this chapter.
In order to be included on the Borough of Clayton Police Department's
tow list, a towing operator shall submit proof of insurance with his/her
application on or before November 15 that his/her towing facility
is insured by a reputable insurance company licensed to do business
in the State of New Jersey with a standard general liability insurance
policy designed to cover garage operations. Said insurance policy
shall provide for minimum monetary limits for any single occurrence
as follows:
A. Automobile liability in an amount not less than $750,000 for light/medium
tow trucks and $1,000,000 for heavy-duty trucks.
B. Workers' compensation as required by statute.
C. Garage keepers legal liability in an amount not less than $100,000
per location.
D. Garage liability, including cargo insurance in an amount not less
than $100,000 per location.
E. A certificate of insurance naming the Borough of Clayton as a certified
holder for a one-year term with a thirty-day notice of cancellation.
(1) The insurance company must be an approved carrier licensed to do
business in the State of New Jersey. The aforesaid insurance policy
shall also be written as to include coverage for the property owned
by others which is in the care, custody or control of the licensed
towing operator, including the perils of transportation for any motor
vehicle in the possession or control of the towing operator. The garagekeeper's
legal liability shall include comprehensive and collision coverage.
Said insurance policy shall provide that the insurance company will
pay on behalf of the Borough for any and all claims against the Borough
resulting from the operations of the towing operator, including any
and all attorney fees.
(2) The insurance coverage shall provide that the insurance policy may
not be canceled or materially changed without 30 days' prior written
notice to the Chief of Police of the Borough of Clayton Police Department.
(3) The towing operator shall agree in writing to assume the defense
of and indemnify and hold harmless the Borough, its elected officials,
boards, commissions, officers, employees and agents from all suits,
actions, damages or claims to which the Borough may be subjected of
any kind and nature whatsoever resulting from, caused by, arising
out of or as a consequence of the provision of towing, storage and/or
emergency services provided by the towing operator pursuant to this
chapter. Tow operators shall enter into a hold harmless agreement
in a form to be approved by the Borough Solicitor prior to being included
on the towing list. The Chief of Police will include a hold harmless
agreement in his notification to the towing operator if his/her application
is approved by the Borough Council as outlined below.
Upon the receipt and review by the Chief of Police of a completed
application, and upon the filing by the Chief of Police of a written
report of findings resulting from the investigation of the applicant
and a recommendation of approval, the Chief shall give the application
to the Borough Clerk for inclusion as an agenda item for the year-end
Council closeout meeting for the governing body's consideration.
If the Borough Council has determined to approve the granting of such
license, it shall do so by resolution. Upon the adoption of such resolution,
the Chief of Police shall issue a license certificate, which shall
state the purpose for which the license is granted, the owner name,
business name, the base of service address of the licensee, and the
date of its expiration, which said license certificate shall be signed
by the Chief of Police.
All licenses issued under this chapter shall be effective for
the period of one year. The license shall begin on January 1 and end
on December 31 (12:00 midnight). All licenses shall expire automatically.
[Amended 5-10-2018 by Ord. No. 9-2018]
A nonrefundable fee of $250 shall be submitted simultaneously
with all applications.
A license may be revoked or suspended at any time for just cause,
by the Borough of Clayton, for violations of any provisions of this
chapter, or for violations of New Jersey State law.