For the purposes of this chapter, certain terms used herein
are defined as follows:
means the Police Chief of the City or authorized representative.
means the City of Stockton.
means the City Council of the City of Stockton.
means any entity granted a franchise by the City pursuant
to this chapter.
includes towing of vehicles to impound or to other locations,
the storage of such vehicles as ordered and designated by authorized
members of the Stockton Police Department and all services required
to transport, secure and maintain vehicles and their contents for
evidentiary purposes in criminal investigations and proceedings.
(Prior code § 12-200)
A.
It
is declared and determined that the business of police towing affects
the health, safety and public welfare of the residents of the City.
The custody and control of vehicles owned by the public which are
towed and/or stored at the order of the Stockton Police Department
for purposes of impound or facilitation of traffic flow, require a
high degree of proficiency with the procedures established by the
California Department of Motor Vehicles. Also, a high level of trust
and confidence is required by the public and the Police Department,
not only in the facilities used for storage, but also in the personnel
and equipment utilized for towing vehicles to impound. Many such vehicles
may be of high value, may themselves be or contain evidence of criminal
activity, and which, if improperly towed or stored, could result in
legal action against the City. The further responsibility of the police
towing franchisee is not only to collect only the prescribed fee from
owners of impounded vehicles and to release said vehicles promptly
and efficiently, but also to, upon the evidence of proper documentation,
require that only those towing entities who have demonstrated that
they possess the facilities, control systems and knowledgeable personnel
to protect the interests of the City and vehicle owners be allowed
to perform the services expected under this franchise. Therefore,
it is a purpose of this chapter to regulate this service to the Police
Department and to minimize any adverse effects upon the citizenry.
B.
It
is recognized that the City is required to adopt and implement a mechanism
to promote the safe and efficient towing to impound of vehicles and
that City may impose fees to fund the cost of this effort and to augment
the funds available for purposes of law enforcement.
C.
The
City having elected to implement the home rule provisions of Article
XI of the Constitution of the State as to municipal affairs and the
granting of nonexclusive franchises of the nature referred to herein
as being within the class of actions designated to "municipal affairs,"
declares that the provisions of the article, together with Article
XXI of the Charter of the City, shall constitute the exclusive procedure
for the grant of franchises for conducting police impound towing and
storage services.
(Prior code § 12-201)
Except as specified in this chapter, it is unlawful and a misdemeanor
for any person to solicit or perform the business of police towing
in the City unless:
A.
A franchise
therefor has first been granted pursuant to the provisions of this
chapter and such franchise is in full force and effect; and
B.
A written
franchise agreement therefor has been executed between such person
and the City and such agreement is in full force and effect; or
C.
This
chapter shall not apply to towing, repair or storage services performed
for or made available to members of the public by any person.
(Prior code § 12-202)
The City Council may, and it is empowered but not obligated
to grant to any qualified person or entity, a franchise to engage
in the business of towing vehicles in response to police requests
for towing services for purposes of impoundment within the City.
(Prior code § 12-203)
A.
All
franchises granted to persons pursuant to this chapter shall be nonexclusive.
B.
All
nonexclusive franchises shall be subject to the terms and conditions
specified in the City Charter and in this chapter, in the resolutions
and ordinances granting the franchise and in the terms and conditions
of the franchise agreement.
C.
In
granting any franchise, the City Council may prescribe such other
and additional terms and conditions, not in conflict with the City
Charter or this chapter, as in the judgment of the City Council are
in the public interest.
(Prior code § 12-204)
At least every two calendar years from the date of adoption
of the ordinance codified in this chapter, the City Clerk shall cause
a notice to be published in a newspaper of general circulation within
the City, of a notice of request for applications for police towing
franchises. Any person who wishes to operate as a franchisee shall
apply to the City by filing with the Chief of Police, upon forms supplied
by City and in accordance with the request for applications, a verified
application containing at a minimum the following information:
A.
Name
and address of applicant;
B.
If
the applicant is a partnership, the name and address of each partner
shall be set forth in the application. If the applicant is a corporation,
the application shall state the names and addresses of the corporation's
directors, main offices, major stockholders and associates, and the
names and addresses of the parent and subsidiary companies;
C.
A list
of all vehicles, including license plate numbers and vehicle identification
numbers, to be used in connection with the franchise for which the
application is filed;
D.
A list
of all personnel assigned to perform services pursuant to such franchise
accompanied by the California driver's license number and license
class of each such person;
E.
Proof
of insurance in a form acceptable to the City;
F.
Payment
of an application fee in an amount set forth each year by City Council
resolution;
G.
Such
other and further information as the Chief of Police may reasonably
require to evaluate and process an application.
(Prior code § 12-205)
A.
Upon
receiving an application for a franchise under the provisions of this
chapter, the Chief of Police shall present the application to the
City Council at a regularly scheduled meeting thereof.
B.
The
City Clerk shall cause notice of the application and of the time and
place of hearing on the application to be published at least once
in a newspaper of general circulation in the City at least 10 days
prior to the date set for the hearing. Additionally, the City Clerk
shall mail or deliver notice of the public hearing to each applicant
at least 10 calendar days prior to the hearing.
C.
At
the hearing on an application for a franchise, the City Council shall
give all persons desiring to be heard a reasonable opportunity to
present evidence or otherwise be heard in favor of or in opposition
to the granting of a franchise to the applicant. At such hearing,
the City Council may require from the applicant such additional information
as the City Council may deem relevant and necessary. The hearing may
be continued or adjourned to a stated time and place without the giving
of further notice.
(Prior code § 12-206)
A.
Upon
conclusion of the hearing on the application for a franchise, or within
a reasonable time thereafter, the City Council shall render its decision
on the application. The nonexclusive franchise may, within the discretion
of the City Council, be granted or denied, based upon compliance with
this chapter and need of such additional service in the community.
In the event there is grant of a franchise by the City Council may
be subject to such terms, conditions, rules, regulations, restrictions
and limitations such as the City Council deems necessary to protect
the public health, safety or welfare.
B.
Should
a franchise not be granted to an applicant, the City Clerk shall issue
written notice to the applicant that its service will not be utilized
for towing vehicles as described in this chapter.
(Prior code § 12-207)
No franchise, if granted, pursuant to this chapter shall become
effective unless and until all of the following requirements have
been satisfied:
A.
The
ordinance granting the franchise is effective.
B.
The
applicant and the City have signed, by their duly authorized representatives,
a franchise agreement.
C.
Applicant
has provided an acceptable list of the vehicles to be used to perform
the services herein by registration or license number and the personnel
assigned thereto as required herein.
D.
The
applicant has provided evidence of compliance with the insurance requirements
and any other terms and conditions of this chapter and any other terms
and conditions imposed by the Chief of Police.
(Prior code § 12-208)
The franchise agreement shall among other things provide that
the franchisee shall indemnify, hold harmless, release and defend
the City, its City Council and each member thereof, and its officers,
employees, commission members and representatives, from and against
any and all liability, claims, suits, costs, expenses, fines, judgments,
settlements, charges or penalties whatever, including reasonable attorneys
fees, regardless of the merit or outcome of the same arising out of,
or in any manner connected with, any or all of the operations or services
authorized, conducted or permitted under a nonexclusive franchise
agreement granted under this chapter. Applicants shall sign an affidavit
in a form acceptable to the City Attorney that confirms their understanding
of and agreement to the obligations imposed under this section, as
a part of the application for a franchise hereunder.
(Prior code § 12-209)
The City Manager shall be authorized to set the minimum levels
and standards of liability insurance which must be maintained in order
to apply for, to receive and to operate a franchise under this chapter.
The City Manager shall also establish the manner in which compliance
with the minimum standards is demonstrated. The failure to maintain
the minimum levels and standards of liability insurance for any period
of time is a violation of this chapter and shall be sufficient grounds
for temporary suspension or termination of a nonexclusive franchise.
(Prior code § 12-210)
The term of any franchise granted under the provisions of this
chapter shall be for five years with annual renewal options of up
to two additional five-year terms, unless earlier terminated under
the terms of this chapter.
(Prior code § 12-211)
A renewal option granted a franchisee may be exercised by the
franchisee's timely filing a renewal application within six months
of the expiration of the term, upon forms supplied by Chief of Police.
The renewal option shall be deemed granted unless, no later than 60
days from the date of filing the renewal application, the Chief of
Police has found said franchisee not in compliance with the terms
of this chapter, the franchise, the franchise agreement or other provision
of law applicable to the towing services provided pursuant to the
franchise. Upon such findings, the Chief of Police may deny the renewal
option or grant it conditionally and, if denied, the franchise and
all future options shall terminate.
(Prior code § 12-212)
A.
The
City Council shall have the right to terminate or to suspend any franchise
pursuant to this section.
B.
A notice
of intent to terminate a nonexclusive franchise shall be personally
delivered or mailed by certified mail, at the discretion of the Chief
of Police, to the party named and to the address given on the application
pursuant to which such nonexclusive franchise was issued. The notice
shall state the grounds for termination or suspension and shall give
the franchisee notice of a hearing before the City Council thereon,
which shall be convened no more than 60 days after the date of notice
unless the hearing cannot reasonably be set within such time, in which
case the hearing shall be set as promptly as may be practical. The
hearing shall be conducted and closed, and decision rendered thereon,
within 60 days after the date of the notice unless it cannot then
reasonably be completed, in which case it shall be completed as promptly
as may be practical. The City Council shall have the right to terminate
any nonexclusive franchise granted pursuant to this chapter if the
City Council finds, based upon a preponderance of the evidence, after
a public hearing, that:
1.
The
franchisee has failed to comply with, or to do anything required of
the franchisee by this chapter, or that franchisee has failed to pay
the franchise fees required under this chapter or violated any provision
of the ordinance granting the nonexclusive franchise, or any provision
of the nonexclusive franchise agreement or any ordinance of the City
or any law of the State or of the United States in connection with
the performance of the nonexclusive franchise or that franchisee's
conduct demonstrates that the franchisee is unable to unwilling to
comply with the terms of the nonexclusive franchise.
2.
Should
any provision of this chapter become or be declared to be invalid
and the board expressly finds that such provision constitutes a material
consideration to the grant or continuation of such nonexclusive franchise.
(Prior code § 12-213)
The Chief of Police may temporarily suspend any nonexclusive
franchise without a hearing under the following circumstances: Whenever
the continued operation by the franchisee would constitute a danger
to public health, safety, welfare or public morals, including, without
limitation, where there is a failure to maintain the minimum levels
and standards of liability insurance or claims reserve, whenever there
is a failure to keep in full force and effect any applicable licenses
or permits required by Federal, State or local law or whenever the
franchisee has failed to observe or has defaulted in any material
term of the franchise or franchise agreement including, without limitation,
timely payment of franchise fees. The notice of temporary suspension
may be personally delivered to the party named and to the address
given on the application pursuant to which such franchise was issued,
or, mailed by certified mail to the party named at the address given
on the application pursuant to which such franchise was issued. The
temporary suspension is effective upon the earlier of either receipt
of said notice or the expiration of five days from the date of mailing.
The notice of temporary suspension shall include a notice of the date
and time for a termination hearing and all other information required
by this chapter. The temporary suspension shall remain effective until
the decision on termination by the City Council is made or unless
the suspension is earlier lifted by written notice of the Chief of
Police.
(Prior code § 12-214)
Any nonexclusive franchise granted pursuant to this chapter
is a privilege to be held in trust by the original franchisee. Such
nonexclusive franchise shall not be sold, leased, transferred, assigned,
or otherwise disposed of, either in whole or in chapter, whether by
forced sale, merger, consolidation, bankruptcy, reorganization under
bankruptcy laws or otherwise, without the prior consent of the City
Council as expressed by an appropriate ordinance. The consent of the
City Council shall be subject to such terms and conditions as it may
prescribe.
(Prior code § 12-215)
A.
Each
franchisee granted a franchise pursuant to this chapter shall pay
a franchise fee to the City during the term of such franchise. The
franchise fee shall be in an amount as from time to time set forth
in a resolution adopted by the City Council.
B.
Franchise fees shall be payable quarterly. The first payment of franchise fees shall be due and payable within 60 days from and after the end of the third calendar month after the month during which the ordinance granting the franchise becomes effective, and thereafter payments shall be due and payable within 60 days from and after the end of each three month period. Each payment shall be calculated in accordance with the provisions of the resolution adopted by the City Council pursuant to subsection A of this section.
C.
The
franchisee shall pay the required franchise fee to the City's Director
of Administrative Services. Each payment shall be accompanied by a
written statement, verified by the franchisee or a duly authorized
representative of the franchisee, showing in such form and detail
as the Director of Administrative Services may prescribe the calculation
of the franchise fee payable by the franchisee and such other information
as the Director of Administrative Services may determine is material
to a determination of the amount due.
D.
No
statement filed under this section shall be deemed conclusive as to
the matters set forth in such statement, nor shall the filing of such
statement preclude the City from demanding and collecting by appropriate
action the sum that is actually due and payable.
E.
The
payment to the City by the franchisee pursuant to this chapter shall
be in addition to any license fee or business tax prescribed by the
City for the same period.
(Prior code § 12-216)
All ordinances, municipal code sections, resolutions, City Council
motions, and all actions of all City boards and commissions in conflict
herewith are hereby repealed.
(Prior code § 12-217)
Any franchise granted hereunder shall not become effective until
grantee executes a written franchise agreement with City. Such agreement
shall be executed within 10 days after final passage of the ordinance
granting the franchise, or an extension granted by the City Council.
(Prior code § 12-218)
