That the City Council conduct a public hearing and APPROVE THE FIRST READING OF ORDINANCE NO. CC 2026-__ ENTITLED: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, AMENDING CHAPTER 5.40 ("TOWING SERVICES") OF TITLE 5 ("BUSINESS TAXES, LICENSES AND REGULATIONS") OF THE LA HABRA MUNICIPAL CODE AND MAKING A DETERMINATION THAT THIS ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)". 

Chapter 5.40 ("Towing Services") of Title 5 ("Business Taxes, Licenses and Regulations") of the La Habra Municipal Code was adopted in 1983. It requires all companies who provide towing services within the City to obtain a license from the police department, pay a fee, and comply with a series of regulations designed to promote responsible towing services and protect the public. It sets the maximum amount of rates that a tow company can charge a vehicle owner at the rates that the City pays for police requested towing services, requires background checks for tow truck drivers, and requires towed vehicles be stored in an approved storage yard.

Chapter 5.40 has not undergone significant revisions since its adoption in 1983. Changes in state law prohibits cities from requiring a business license and regulating tow companies whose principal place of business is not located within that city. The proposed ordinance generally limits the scope of Chapter 5.40 to only those tow companies whose principal place of business is within the City of La Habra. The proposed ordinance also makes the following changes:

Included as Attachment 1 is the proposed ordinance amending Chapter 5.40. Included as Attachment 2 is a redline version of the proposed changes to Chapter 5.40. Attachment 3 is the notice for the public hearing associated with this code amendment.

Adopting the proposed ordinance will allow the Police Department to continue to ensure responsible and cost-effective towing services within the City under regulations that are compliant with current state law.