Newmarket council slammed the brakes on proposed new rules to regulate the tow truck industry after two owner/operators with a strong show of support in tow turned up at Monday’s public meeting in protest.
The town’s elected officials were set to vote on an omnibus draft mobile business licence bylaw that includes licensing tow truck companies for the first time, regulating ride-sharing services such as Uber and Lyft, and updating rules for food trucks and taxis, driving school instructors, and limousines.
But the set of fees and conditions being proposed for the tow truck industry, including annual licensing fees, capped charges for collision and non-collision service, along with a prohibition on any driver who receives a criminal conviction five years prior to or after being licensed, raised the alarm for some small operators.
Ted Doucette, who is a sole proprietor and operates one tow truck, said if the bylaw is passed in its current form, as someone with a criminal record, he would lose his livelihood.
“This proposed bylaw and the included restrictions would effectively stop me and others from working within the Town of Newmarket,” Doucette said. “No bylaw should take away anyone’s livelihood with the stroke of a pen.”
Doucette said he’s been towing for 30 years and has invested in his truck, and fitted it with expensive equipment specifically designed for towing vehicles. He has had no complaints from the public, he added, and even receives compliments and thank yous.
“This is how I provide for my family,” he said. “I do, however, have a criminal conviction within the last five years. There’s no need to get into details here, but it had nothing to do with towing.”
Many of his towing industry colleagues are concerned as well, he said, as others with criminal records fear they may be fired.
“I just don’t want to be shut down,” he said. “I have a lot of money and time invested into what I do for a living, it’s all I know.”
Doucette acknowledged that while drivers with criminal convictions may be a concern, he urged council to consider other measures to address them, rather than banning them outright from obtaining a licence.
“The industry is sufficiently being policed and monitored, and if Newmarket sees the need for further bylaws and conditions, the application process for licences should be made available for everyone working in the towing industry now, with extra conditions for some, if necessary,” he said.
Similarly, Holland Landing resident Frank Doyle, who has been a tow truck operator for 38 years in Newmarket and surrounding areas, implored the town to reconsider the new licencing fees that he considers unfair to small business owners.
In addition, Doyle said some of the bylaw’s conditions on the industry are a duplication of what’s already provincially regulated by the Consumer Protection Act, such as providing a quote to the customer before hooking up the car and getting the customer’s signature on the tow bill.
“From an economics point of view, what is being tabled for you to vote on today is inadequate, and I’m concerned about the fee amounts,” Doyle said. “A tow truck is $100,000-plus, insurance can be $12,000 a year, maintenance, fuel costs are always on the rise, and there are cost-of-living expenses.
The mobile business bylaw proposes a one-time $2,000 licensing fee to a tow truck company, with a $750 yearly renewal fee, regardless of how many trucks are in the fleet. As well, the fee for a tow from a collision would be capped at $250 in Newmarket, and for non-collisions, the cap is $125. There are provisions made for companies to charge extra if they have to use a winch on the vehicle or travel distances outside a 30-kilometre radius, for instance.
“I feel that proceeding with what’s on the table at this time is wrong and premature,” Doyle said. “What is being proposed seems to be a mirror image of Vaughan. Surely, Newmarket can be more intuitive and realistic.”
After a lengthy debate, council agreed to shelve the proposed draft mobile licence bylaw so that staff could conduct more research that addresses the issues raised about drivers and criminal records and the scale of its licensing fees.
Mayor John Taylor expressed concerns about the licence fees and its impact on small operators. But, more importantly, what gave him pause was the de facto shutout of drivers with criminal records.
“I’m a little sensitive to somebody who has put themselves in this business, spent a lot of money on vehicles, and as of tomorrow, or whenever a bylaw is in place, they would no longer in business,” Taylor said. “It’s making me feel a little uncomfortable. It’s a tough one. And I apologize to staff because a lot of work has gone into this, but I’m struggling with the criminal (record) requirement.”
“I know we have to hold people to a high standard and put safety first but … not only from the fairness perspective, but people still have to make a living somehow, and I want to know that this is absolutely necessary. I would prefer we take more time to explore the fee structure, as well,” he said.
Several councillors agreed that the proposed licensing fee structure might inadvertently create an uneven playing field.
Councillors Christina Bisanz, Bob Kwapis, Jane Twinney and Deputy Mayor Tom Vegh all believed more information was needed on the issues raised before they could make a decision.
Councillors Grace Simon and Victor Woodhouse were satisfied the proposed bylaw was balanced and placed residents’ safety above all else.
“We really have to consider the safety and the fairness and competition in our town, and we want to ensure we have businesses that are functioning, properly licensed and we are holding the business in the highest esteem,” Simon said.
Woodhouse added that his concern is that residents are safe and treated fairly.
Newmarket’s regulatory services manager Flynn Scott said there may be some tow truck drivers that become ineligible due to the proposed new requirements, but that when dealing with the public and transporting, his research shows that criminal background checks are necessary.
“The goal of the mobile licence bylaw is to ensure there’s consumer protection and we want to hold the company responsible,” Scott said.
Proposed rules also include a tow truck company having to identify all associated drivers and vehicles in use for service, and a driver will not be permitted to operate if their driver’s abstract shows more than eight demerit points, according to the Highway Traffic Act, or a conviction that results in at least four demerit points.
