Report to Mayor and City Council
Tuesday, August 03, 2021
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 2 TO CITY OF CARSON TOWING AND STORAGE NON-EXCLUSIVE FRANCHISE AGREEMENT WITH KAM'S AUTOMOTIVE, INC., DOING BUSINESS AS FALCON TOWING, AND APPROVAL OF CITY OF CARSON TOWING AND STORAGE NON-EXCLUSIVE FRANCHISE AGREEMENT WITH KRUGER TOWING, INC. FOR TOWING AND STORAGE SERVICES (CITY COUNCIL)
Body
I. SUMMARY
On November 6, 2017, the City Council awarded two Non-Exclusive Towing and Storage Franchise Agreements, one to Falcon Towing ("Falcon") and the other to Kruger Towing ("Kruger"), to handle City of Carson-initiated towing and storage requirements (excluding towing and storage requirements initiated by the Los Angeles County Sheriff's Department Carson Station). Both agreements provided that all non-cancelled tows requested by City will be dispatched on a one-to-one rotating basis between Falcon and Kruger. Both agreements were for three-year terms commencing September 2017 with two City options to extend for additional one-year periods. Both agreements required franchisees to pay an annual franchise fee of $25,000 and both operators made one payment to City in the amount of $25,000 during the first year of the agreements.
The Falcon agreement, dated September 28, 2017, was to expire August 31, 2020; it was extended once after City exercised its first option to extend and is currently set to expire August 31, 2021. The Kruger agreement was terminated by Kruger a little more than one year into the agreement term. Both Falcon and Kruger were unable to pay the required full amounts of their respective fees owed due to various unforeseen and uncontrollable circumstances causing both operators to operate at a loss, as Falcon is currently delinquent in the amount of $75,000 and Kruger is delinquent in the amount of $25,000.
The Ad Hoc Committee, comprised of Mayor Davis-Holmes and Councilmember Hilton, is recommending that the City exercise the ...
Click here for full text