10 Staff Report - Tow Contract ServicesoW s 0
cosA~oS COUNCIL AGENDA REPORT
DATE: AUGUST 13, 2009
MEETING DATE: 10119/09
ITEM NO: 10
TO: MAYOR AND TOWN COUNCIL a~7 FROM: GREG LARSON TOWN MANAGER v
SUBJECT: TOW CONTRACT SERVICES
A. INTRODUCE AN ORDINANCE AMENDING TOWN CODE SECTION 28.30.030
AND 28.30.035 TO ELIMINATE POLICE ROTATION TOWS
B. APPROVE A RESOLUTION AUTHORIZING THE TOWN MANAGER TO
NEGOTIATE AND EXECUTE A CONTRACT WITH SOUTH BAY TOWING TO
PROVIDE TOWING SERVICES FOR POLICE INITIATED TOWS
RECOMMENDATION:
1. Take public comment
2. Direct Clerk to read title of proposed ordinance (Attachment 1) (No Motion Required.)
3. Motion and vote to waive reading of text (Motion Required)
4. Motion to introduce ordinance (Attachment 1) (Motion Required)
5. Direct Clerk Administrator to publish notice (No Motion Required)
b. Adopt the resolution of the Town of Los Gatos authorizing the Town Manager to execute a
contract with South Bay Towing to provide towing services for police initiated tows (Attachment
2) (Motion Required)
BACKGROUND:
Town Code section 28.30.030 establishes a rotation system for police initiated tows of vehicles and
directs that the police chief maintain a list of tow operators to call to move and store motor vehicles in
accident, arrest, disabled vehicle and similar cases. Staff propose to contract with a single tow company
for police initiated tows and no longer utilize a rotation tow system. The Town Code must be amended
to eliminate the requirement that a rotation system be utilized.
DISCUSSION:
The current tow rotation list is comprised of five local tow companies. A request for a tow initiated by
the police department either for its own purposes or on behalf of a motorist who otherwise has no
preference for a specific tow company is given to one of the five companies on a rotation basis.
PREPARED BY: SCOTT R. SEAMAN, CHIEF OF POLICE
C:IBOCUME- I\ISHRIC-1.LOSXLOCALS-I%TempWgrpwiselTow Franchise Resolution Council Memo.doc
Reviewed by: Assistant Town Manager Town Attorney
11 N.r
Clerk Administrator Finance ommunity Development
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: TOW CONTRACT SERVICES
OCTOBER 19, 2009
The Town Code requires that each company meet established standards for response time, facilities and
licensing, among other requirements. No fee is collected by the Town from a tow company responding
to a police initiated tow request.
While this system has worked well for the department and the public, staff has considered a different
model for tow services wherein the Town would contract with a single tow company to handle police
initiated tows for an established fee to the Town. This model is similar to that utilized in San Jose and
other cities in California. In San Jose, individual tow companies are contracted to provide service within
an established zone. The City of San Jose charges $50 per car towed for this contract. Benefits of this
model include consistency of service within the contract area, close access to the tow yard for the
owners of towed vehicles and revenue to the jurisdiction. Staff surveyed all California police
departments and determined that a number of police departments utilize either this or a similar model.
The department uses towing services for police initiated tows approximately 350 times per year. The
towing of cars initiated by a police department can be managed through several means. Rotational tow
systems distribute towing business to a range of established towing companies, most commonly without
any revenue to the municipality. Municipalities have the ability to establish a towing function within
their service provision model and perform their own towing for police initiated tows with the ability to
collect all fees and charges associated with the towing, storage and release of the vehicle. A third option
is to contract for this service with an established business. While the creation of a towing function is
within the authority and ability of municipalities, staff believes that it makes sense to instead contract for
this service with an established business.
The five tow companies in the current rotation system are: Bob's Towing, Dick's Towing, Lima
Towing, South Bay Towing and Courtesy Tow Service. South Bay Towing and Courtesy Tow Service
are owned by the same person and for the purposes of this issue are considered by staff as one company.
South Bay Towing/Courtesy Tow Service is the only tow company that is based in Los Gatos at 615
University Avenue. The other companies are located in Campbell. In early 2009, the Town and the
police department were approached by the owner of South Bay Towing/Courtesy Tow Service and
asked to consider creating a single vendor agreement. Under such an agreement, the contractor would
have exclusive right to police initiated tows for a specified period of time; five years is currently being
considered. This agreement gives the contractor a degree of revenue certainty which would allow them
to make capital investments in facilities and equipment to maintain and improve services. As proposed,
South Bay Towing would be the actual contractor and the Town would receive revenue of $50 for every
vehicle which is towed under the agreement.
Town purchasing guidelines direct the Town Manager or designee, acting as Purchasing Agent, to `give
preference to merchants whose place of business is located within the Town limits, quality and price
being equal' (Town Code Section 2.50.115). Such preference applied in the case of a tow contract would
provide direct benefit to residents and visitors whose car has been towed by having them travel only to a
location in Los Gatos to pick up their car, as opposed to tow locations located outside the Town.
The Town Code currently specifies that the police department will establish and utilize a rotation system
for police initiated tows. The attached ordinance amends the Town Code rescinding the rotation system.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: TOW CONTRACT SERVICES
OCTOBER 19, 2009
If the ordinance is introduced by council, the ordinance will return to council at the next meeting. The
Town Manager would then be authorized to execute an agreement with South Bay Towing to provide
towing services for police initiated tows for a five year period.
CONCLUSION:
Staff recommends adoption of the resolution rescinding rotation tows. If adopted, staff would negotiate,
and the Town Manager would execute, an agreement with South Bay Towing to provide contract towing
services for police initiated tows.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
A franchise agreement would be expected to increase revenues to the Town in the amount of $17,000
per year. This is based upon an estimated 350 police initiated tows each generating a $50 fee. The FY
09110 budget contains anticipated revenues from a tow franchise agreement within the police department
budget in this amount.
Attacbments:
1) Ordinance
2) Resolution
Distribution:
Bob Coen
South Bay Towing
Courtesy Towing
615 University Ave.
Los Gatos, CA
Ata Nayebzedeh
Bob's Towing
70 Cristich Ln,
Campbell, CA
Steve Sgarlato
Dick's Towing
88$ Camden Ave.
Campbell, CA
Paul and Lupe Lima
Lima Towing
180 E. Sunnyoaks Ave.
Campbell, CA
ORDINANCE
ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING DIVISION 1 OF ARTICLE III OF CHAPTER 28 OF THE
LOS GATOS TOWN CODE REGARDING POLICE-INITIATED TOW SERVICES
WHEREAS, Los Gatos Town Code section 28.30.030 requires the Chief of Police to maintain a list of tow operators to
call to move and store motor vehicles in accident, arrest, disabled vehicle and similar cases; and
WHEREAS, Los Gatos Town Code section 28.30.035 authorizes the Chief of Police to impose more stringent
operating standards for tow operators included on the rotation list required pursuant to section 28.30.030; and
WHEREAS, the Town may at its option provide its own tow services for police-initiated tows or contract with private
contractors to provide such services; and
WHEREAS, the Town Council desires to authorize the Town Manager to enter into one or more contracts to provide
police-initiated tow services and to repeal the rotation list required by Town Code sections 28.30.030 and 28.30.035.
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ORDAINS AS FOLLOWS:
SECTION I.
Division 1 of Article III of Chapter 28 of the Los Gatos Town Code is amended by repealing sections 28.30.030 and
28.30.035 in their entirety and reserving said section numbers.
SECTION II
In the event that any part of this ordinance is held to be invalid, the invalid part or parts shall be severed from the
remaining portions which shall remain in full force and effect.
SECTION III
This Ordinance takes effect 30 days after the date it is adopted.
This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on
2009, and adopted by the following vote as and Ordinance of the Town of Los Gatos at a regular meeting of
the Town Council on _'2009.
COUNCIL MEMBERS:
AYES:
NAYS :
ABSENT:
ABSTAIN:
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
NAMGRUdminworkFilc,;Q009 Council ReportANo Tow Rotation Ordinance 10-19-09.doc
ATTACHMENT1
RESOLUTION
RESOLUTION OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO NEGOTIATE AND EXECUTE A
CONTRACT WITH SOUTH BAY TOWING TO PROVIDE
TOWING SERVICES FOR POLICE INITIATED TOWS
WHEREAS, it is necessary for the Town Council to secure an agreement with a
towing company to provide towing services; and
WHEREAS, the Town has selected.South Bay Towing to provide towing services.
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Town Manager is authorized to negotiate and execute an
agreement with South Bay Towing to provide towing services for Police initiated tows for a
period of five years.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the day of , 2009 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMII USTRATOR
LOS GATOS, CALIFORNIA
N:WGRIAdminWorkFi1es12009 Council Repor[ASouth Bay Towing Resolution 10-19-09.doe
ATTACHMENT 2