By-law to Amend By-law No. 20-85 - Accident Towing -
Mandatory
Drop and Accreditation of Vehicle Repair Facilities
(City Council on October 28, 29 and 30, 1998, deferred consideration of this Clause to the
next regular meeting of Council to be held on November 25, 1998.)
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(Clause No. 4 of Report No. 11 of the Emergency and Protective Services Committee)
The Emergency and Protective Services Committee recommends:
(1)the adoption of the report (August 26, 1998) from the General Manager, Toronto
Licensing, recommending amendments to Sub-section 40(3), Schedule 37, of By-law No.
20-85, subject to the following:
(a)that the notice simply read "The tow truck operator may not recommend a body
shop or other vehicle repair facility - By-law No. 20-85."; and that appropriate wording
be included on the notice with regard to penalties for failure to comply with this
provision of By-law No. 20-85;
(b)that By-law No. 20-85 also include guidelines for the display of signage, i.e. that it
should be clearly visible and not be covered up; and
(c)that the City Solicitor, the Commissioner of Urban Planning and Development
Services, and the General Manager, Toronto Licensing, be requested to meet with the
Chair of the Emergency and Protective Services Committee and Councillor Moscoe, the
Toronto Licensing representative on the Committee, to develop a revised waiver form
consistent with the By-law;
(2)the Toronto Police Services Board be requested to:
(a)advise tow truck operators that if they charge patrons for the recovery of vehicles
towed under common law, they are in danger of losing their contract with the Toronto
Police Service;
(b)lay charges against towing companies that collect fees contrary to the Nash decision;
and
(c)request the Parking Enforcement Unit of the Toronto Police Service to establish a
suggested protocol for towing companies and property owners to follow with respect to
towing from private property and to submit a report thereon to the next meeting of the
Emergency and Protective Services Committee to be held on November 3, 1998; and
(3)that the Commissioner of Urban Planning and Development Services be requested to
ensure that the By-law Enforcement Officers allocate time to enforcing this issue.
The Emergency and Protective Services Committee reports, for the information of Council,
having:
(1)requested the General Manager, Toronto Licensing, to ensure that the signage at all
pounds in Toronto conform with By-law No. 20-85;
(2)requested the City Solicitor, the General Manager, Toronto Licensing, and the
Commissioner of Urban Planning and Development Services to submit a report to the
Emergency and Protective Services Committee on amendments to By-law No. 20-85 to
prevent tow truck operators from collecting fees from cars towed under common law;
(3)requested the General Manager, Toronto Licensing, and the City Solicitor, in consultation
with other appropriate officials, to submit a report to the Emergency and Protective Services
Committee on harmonizing towing by-laws across the new City of Toronto so that the
by-laws of the former municipalities of East York, Etobicoke and Scarborough are brought
into sync with the by-laws of the former Cities of North York, Toronto and York;
(4)requested the Chair of the Emergency and Protective Services Committee to meet with
staff of Toronto Licensing and to report back to the Committee on some proactive measures
that can be taken to protect citizens from being charged illegal fees under the By-law and from
being towed improperly;
(5)referred the following motion to the Commissioner of Urban Planning and Development
Services, in consultation with the City Solicitor, for a report thereon to the Emergency and
Protective Services Committee:
"Moved by Councillor Moscoe:
'That By-law Enforcement Officers be directed to lay charges against pounds collecting fees
in excess of the amount set by By-law No. 20-85.'";
(6)referred the following motion to the City Solicitor for a report thereon to the next meeting
of the Emergency and Protective Services Committee to be held on November 3, 1998:
"Moved by Councillor Moscoe:
'That the City take immediate legal action against companies issuing phony parking tickets.'";
and
(7)received the following communication (July 15, 1998) from the City Clerk.
The Emergency and Protective Services Committee submits the following
communication (July 15, 1998) from the City Clerk:
City Council, at its meeting held on July 8, 9 and 10, 1998, in adopting, as amended, Clause
No.1 contained in Report No.6 of The Emergency and Protective Services Committee, headed
"By-law to Amend By-law No.20-85- Accident Towing- Mandatory Drop and Accreditation
of Vehicle Repair Facilities", directed, inter alia, that the following motion be referred to the
Emergency and Protective Services Committee for consideration in September, 1998, and the
City Solicitor and the General Manager, Toronto Licensing Commission, be requested to
report thereon, in writing, to such meeting:
"Moved by Councillor Jakobek:
'That the foregoing Clause be amended by striking out the recommendation of the Emergency
and Protective Services Committee and inserting in lieu thereof the following:
"It is recommended that:
(1)Recommendations Nos. (1)(b), (c), (d), (2) and (4) embodied in the report dated May 15,
1998, from the General Manager, Toronto Licensing Commission, with respect to
accreditation, be deferred to the meeting of Council scheduled to be held on October 1, 1998,
and the Chair of the Emergency and Protective Services Committee be requested to meet with
representatives of the Provincial Government to encourage swift passage of a Province-wide
accreditation which would complement the City's plan;
(2)the City Auditor be requested to submit the report, previously requested by Council with
respect to accident reporting centres, to Council, through the Emergency and Protective
Services Committee, no later than October 1, 1998;
(3)staff be requested to submit a report, to the same meeting, on the possibility of establishing
City-operated/independent reporting centres, as previously requested by Council;
(4)the operators of the existing reporting centres be advised that City Council will not tolerate
any solicitation of any resident by agents of insurance companies, auto body shops, car rental
companies, tow trucks, or other businesses;
(5)a self-help or 'what-to-do' pamphlet be produced and submitted to Council for approval,
such pamphlet to provide guidance and advice to every person involved in an accident and
distributed by the police, tow truck operators and reporting centres;
(6)Recommendation No. (1)(a) embodied in the report dated May 15, 1998, from the General
Manager, Toronto Licensing Commission, be deleted and the following inserted in lieu
thereof:
'that the mandatory drop be delayed until January 2000 and the City Solicitor be requested to
submit a report on the legal authority to force all tow-truck operators to display or hand-out
notices to the public which would advise the public that any recommendations of body shops
or other businesses made by tow truck operators will result in the immediate suspension of
their licence and a hearing before the Licencing Tribunal';
(7)City staff be requested to strictly enforce these rules at all collision reporting centres with
all tow truck operators on a regular basis; and
(8)Recommendation No. (3) embodied in the report dated May 15, 1998, from the General
Manager, Toronto Licensing Commission, be adopted. " ' "
The Emergency and Protective Services Committee also submits the following report
(August 18, 1998) from the City Solicitor:
Purpose:
The purpose of this report is to provide a legal opinion on the authority of City Council to
require licensed tow truck operators to display or provide notices advising members of the
public that the tow truck operator may not recommend body shops or other vehicle repair
facilities and that such recommendations would result in an immediate suspension of the
operator's licence and a hearing before the Licensing Tribunal.
Funding Sources, Financial Implications and Impact Statement:
Not Applicable.
Recommendations:
If City Council decides to amend Schedule 37 to By-law No. 20-85 of the former
Metropolitan Council to implement the proposed notice, it is recommended that:
1.The notice be made consistent with subsection 40(3) of Schedule 37, by stating that:
(a)the tow truck operator may not recommend a body shop or other vehicle repair facility
unless requested to do so by the vehicle owner; or
(b)by amending subsection 40(3) by deleting the clause therein which permits tow truck
operators to make such recommendations at the request of the vehicle owner; and
2.The notice be amended to state that a hearing will be held before the Licensing Tribunal to
determine whether the licence should be suspended, revoked or have conditions placed on it.
Council Reference/Background/History:
At its meeting of July 8, 9, and 10, 1998 considered Clause No. 1 of Report No. 6 of the
Emergency and Protective Services Committee entitled "By-law to Amend By-law No. 20-85
- Accident Towing - Mandatory Drop and Accreditation of Vehicle Repair Facilities". At this
meeting, City Council requested a legal opinion on its authority to require licensed tow truck
operators to display or provide notices advising members of the public that the tow truck
operator may not recommend body shops or other vehicle repair facilities and that such
recommendations would result in an immediate suspension of the operator's licence and a
hearing before the Licensing Tribunal.
Comments and/or Discussion and/or Justification:
In my opinion, two concerns arise from the proposed notices. Firstly, subsection 40(3) of
Schedule 37 to By-law No. 20-85 permits a tow truck operator to recommend a body shop or
other such facility when requested to do so by the vehicle owner. The proposed notice is
inconsistent with this provision in that it suggests that the tow truck operator is prohibited
from making any recommendations, even when requested to do so by the vehicle owner.
Accordingly, I recommend that the proposed notice, if implemented, be consistent with
subsection 40(3) of Schedule 37 to By-law No. 20-85 by amending the notice to take into
account recommendations made at the request of the vehicle owner as permitted by the
present provision. In the alternative, the by-law provision could be amended to prohibit tow
truck drivers from making any recommendation. Such amendment would result in the by-law
provision being consistent with the proposed notice.
The second concern that arises from the proposed notice is with respect to the reference to the
"immediate suspension of their licence and a hearing before the Licensing Tribunal."
It is well-settled law that the rules of natural justice and procedural fairness require that a
licence holder be afforded an opportunity to be heard in respect of any suspension of the
licence. The purpose of the hearing before the Tribunal is to afford the licencee this
opportunity to be heard. It is on the basis of the evidence and argument adduced at such a
hearing that the Tribunal would determine whether or not the licence should be suspended,
revoked or have conditions placed on it.
The difficulty that arises from the wording of the proposed notice is that it suggests that the
suspension of the licence is somehow independent of the hearing before the Tribunal and that
the licence will be suspended before the hearing. It is my opinion that a suspension of a
licence in these circumstances prior to a hearing before the Tribunal would be contrary to the
rules of natural justice and procedural fairness.
Accordingly, I recommend that the proposed notice, if implemented, state that a hearing will
be held before the Licensing Tribunal to determine whether the licence should be suspended,
revoked or have conditions placed on it.
Regarding the manner in which the proposed notice may be provided or displayed, members
of my staff have been advised by the General Manager, Toronto Licensing Commission, that
it is her opinion that the most effective means of displaying this notice would be by requiring
that the notice be posted in the cab of the tow truck such that it is visible to members of the
public in the passenger seat of the tow truck. However, the wording of the notice may have to
be revised to take into account space restrictions if the notice is to be posted in the cab of the
vehicle.
Conclusions:
In my opinion, the proposed notice is inconsistent with subsection 40(3) of Schedule 37 to
By-law No. 20-85 of the former Metropolitan Council in that it suggests that a tow truck
operator may not recommend a body shop or other vehicle repair facility, regardless of any
request by the vehicle owner for such a recommendation. Further, it is my opinion that a
suspension of a licence in these circumstances prior to a hearing before the Tribunal would be
contrary to the rules of natural justice and procedural fairness.
It is the opinion of the General Manager, Toronto Licensing Commission, that the most
effective means of displaying the proposed notice would be by requiring that the notice be
posited in the cab of the tow truck such that it is visible to members of the public in the
passenger seat of the tow truck.
The General Manager, Toronto Licensing Commission, has reviewed this report and concurs
with its contents.
Contact Name:
Ansuya Pachai 392-9074
The Emergency and Protective Services Committee also submits the following report
(August 26, 1998) from the General Manager, Toronto Licensing:
Recommendation:
That By-law 20-85, Schedule 37 Sub-section 40(3) be amended by deleting the clause "unless
requested to do so by such person".
Sub-section 40(3) would then read "No owner or driver shall suggest or recommend to any
hirer or other person requesting his services that any vehicle in respect of which his services
are given or requested, be towed, conveyed, driven or delivered to any particular salvage yard,
body shop, storage yard, or any other public garage, building or place".
Discussion:
The August 18, 1998 report from the City Solicitor recommends that the notice be displayed
in the Tow Truck be made consistent with Sub-section 40(3) of Schedule 37 and the Solicitor
offers two proposals for achieving this consistency. I suggest that Committee may also wish
to have this portion of the Licensing By-law consistent with the restrictions placed on owners,
operators and employees in Collision Reporting Centres who are prohibited from
recommending repair facilities (Schedule 24, Part 6, Section 14[2]) and this can be
accomplished by approving recommendation (b) of the Solicitor's report.
The Emergency and Protective Services Committee also submits the following report
(August 26, 1998) from the General Manager, Toronto Licensing:
Recommendation:
That this report be received for information.
Purpose:
To provide Committee with an update on the information currently available regarding a
possible Provincial Accreditation Program for Collision Repair Facilities.
Discussion:
The minutes of the Council meeting of July 8, 9 and 10, 1998 reference the possibility of a
Provincial initiative to establish a province wide accreditation program.
I have had an opportunity to discuss this matter with a representative of the Ministry of
Finance and I can advise you of the following:
-representatives of the various Ministries have been meeting with an industry based group
(Collision Industry Standards Council of Ontario) to develop standards and a code of ethics
for the program and to develop a proposed work plan and budget for the administration of the
program.
-if the Province decides to implement this program it will likely be through a regulation to the
Insurance legislation that would provide that insurance claims be paid only to accredited
repair facilities.
-the accreditation process, if approved, is targeted to start in January 1999, however, there is
no date as to when the program and insurance restrictions would be triggered. The program
implementation date will be influenced by the number of shops accredited and their
geographic dispersal. Contrary to the assumptions of some industry participants the program
does not start on January 1, 1999.
The various Provincial Ministries and the industry representatives (CISCO) appear to be
committed to implementing an accreditation program, however, the magnitude of this
endeavour with minimal grass roots development in place and the proposal that the operation
be industry operated does not argue for an early implementation date.
Contact Name and Telephone Number:
Carol Ruddell-Foster, General Manager
416-392-3070
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The Emergency and Protective Services Committee reports, for the information of Council,
having also had before it during the consideration of the foregoing matter a communication
(September 14, 1998) from the Mr. George Ching, Weston, Ontario, requesting an
opportunity to address the Committee with regard to the practices of the towing companies, a
copy of which was forwarded to all Members of Council with the Supplementary Agenda of
the Emergency and Protective Services Committee meeting of October 6, 1998, and is on file
in the Office of the CityClerk.
Mr. George Ching, Weston, Ontario, appeared before the Emergency and Protective Services
Committee in connection with the foregoing matter.
Respectfully submitted,
COUNCILLOR DENNIS FOTINOS,
Chair
Toronto,- September 8 and 11, 1998 - Report No. 10
- October 6, 1998 - Report No. 11
Candy Davidovits
Tel: (416) 395-7362