Loading...
HomeMy WebLinkAboutContract 0895-6 THIRD AMENDMENT TO VEHICLE TOW SERVICE FRANCHISE AGREEMENT WITH SOUTHWEST TOWING INC. This Third Amendment to Vehicle Tow Service Franchise Agreement ("Third Amendment") is hereby entered into of this 31st day of January 2023, by and between the City of Cathedral City, a California municipal corporation, ("CITY") and Southwest Towing Inc., a California corporation ("Contractor"), as follows: RECITALS The parties previously entered into that Vehicle Tow Service Franchise Agreement on January 15, 2014, inclusive of previously amended twice ("Original Tow Agreement") which will expire on January 31 , 2023. City is currently undertaken an amendment to its towing franchise ordinance and form vehicle tow service agreements which process is anticipated to be completed within the next ninety (90) days. The parties desire to amend and extend the term of the Original Tow Agreement for an additional ninety (90) days pursuant to Exhibit "A" and Exhibit "B" to this Third Amendment. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the promises made and recited herein,the Parties do hereby enter into this Third Amendment which modifies and amends the Agreement and Amendments, as follows: 1. TERM. Section 2 of the Original Tow Agreement is hereby amended to extend the term by ninety (90) days. 2. FEES PAYABLE TO THE CITY. a. Section 3(C) of the Original Tow Agreement is hereby amended to read as follows: "C. Payment of the total amount of franchise fees due to CITY by CONTRACTOR for each term of the AGREEMENT shall be made on a monthly basis with payment due on the tenth (10th) of each month, as may be extended pursuant to Section 2 hereof. With regard to those fees paid by CONTRACTOR for the costs incurred by CITY for vehicles impounded pursuant to VEHICLE CODE Sections 14602. 6 and 14607. 6, CONTRACTOR shall pay all fees on a monthly basis and not later than thirty (30) days after collection of the storage fees by CONTRACTOR." b. Exhibit"A"to the Original Agreement is replaced with Exhibit"A"to this Third Amendment. RN#4878-3639-2014 v 1 1 3. RATES CHARGED BY THE CONRACTOR. a. Exhibit "B"to the Original Agreement is replaced with Exhibit"B"to this Third Amendment. 4. GENERAL PROVISIONS. a) Remainder Unchanged. Except as specifically modified and amended in this Third Amendment, the Original Tow Agreement remains in full force and effect and binding upon the parties. b) Integration. This Third Amendment constitute the entire understanding and agreement of the parties and supersedes all negotiations or previous agreements between the parties with respect to all or any part of the transaction discussed in this Third Amendment. c) Authority. The persons executing this Third Amendment on behalf of the parties hereto warrant that they are duly authorized to execute this Third Amendment on behalf of said parties. d) Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Third Amendment. e) References. All references to the Original Tow Agreement include all their respective terms and provisions. All defined terms utilized in this Third Amendment have the same meaning as provided in the Original Tow Agreement, unless expressly stated to the contrary in this Third Amendment. RIV#4878-3639-2014 v 1 2 IN WITNESS WHEREOF, the Parties hereto have executed this Third Amendment on the date first indicated above. CITY OF CATHEDRAL /4/(ZAq9L(17L—Q-- Charles McClendon, City Manager SOUTHWEST TOWING, INC. 6:7 -N? Myles Bois U�I - &t5 corp SSC ATTEST: APPROVED AS TO FORM: OtLielt_ ic(117) 7-k.( [es&- - , City Clerk Eric S. Va , City Attorney T��tce y -1 -vno 5 RN#4878-3639-2014 vi 3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 --- A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document. State of California1 County of ►`—tvsI DE On '12�Aie`'Y 2 9--62:3 before me, & "' \(-, D_ NE7)LA c Date Here Insert Name and Title of the Officer personally appeared L- k Name(s)of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. JENNIFER D.NELLIS � Notary Public-California WITNESS my hand and official seal. I jr Riverside County > ,T.1 Commission#2390590 L,F0% My Comm.Expires Feb 8,2026NL(I) n I Signature }/ U L(1 J Place Notary Seal and/or Stamp Above ature of Notary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: ❑ Corporate Officer—Title(s): 0 Corporate Officer—Title(s): ❑ Partner— 0 Limited 0 General 0 Partner— 0 Limited 0 General ❑ Individual 0 Attorney in Fact 0 Individual 0 Attorney in Fact ❑ Trustee ❑ Guardian of Conservator 0 Trustee 0 Guardian of Conservator ❑ Other: 0 Other: Signer is Representing: Signer is Representing: ©2017 National Notary Association EXHIBIT "A" SUMMARY OF ANNUAL PROGRAM COSTS A) Facilities and Infrastructure (1) Building - 2.5% of Operating costs of$389,368 $9,734 (2) Information Systems Expense—4% of City's total information Systems Expenditures ($733,047) $29,322 Total Incurred Facilities and Infrastructure costs $39,056 B) Professional Services (1) Legal Expenses for contract, consulting and litigation 15 hours - @$245.00 per hour=$3,675/3 $1,225 C) Personnel Costs—Administrative (Fully Benefitted per hour cost) Based on 900 Vehicles Towed in Fiscal Year (1) Police Officer - 675 hours @ $110 $74,250 (2) Dispatcher—450 hours @ $78 $35,100 (3) Records Clerk—450 hours @ $73 $32,850 (4) Sergeants—75 hours @ $146 $10,950 (5) Chief of Police 10 hours @ $250.00 $2,500 (6) Deputy Chief of Police* 20 hours @ $206 per hour $4,120 (7) Commander- 40 hours @ $170 per hour $6,800 (8) Administrative Office Coordinator 20 hours @ $94 $1,880 (9) Management Analyst—48 hours @ $115 $5,520 Total Incurred Administrative Personnel Costs $165,470 D) Materials and Supplies (1) Total Incurred forms, supplies and postage costs $1,000 Summary of Incurred Costs 1) Facilities and Infrastructure $39,056 2) Professional Services $1,225 3) Personnel Costs Administrative $165,470 4) Materials and Supplies $1,000 Grand Total Incurred Costs $206,751 RN#4878-3639-2014 vl 4 E) Revenue Received Annual Revenue Received for Storage and Impound Releases $73,500 and Lien Sales from Tow Contracts Incurred Costs of$206,751 —Revenue Received $73,500= $133,251 Franchise Fee per Police Officer, Community Service Officer, and Citizens On Patrol originated CHP 180 vehicle report $148 F) 30 Day Impound Vehicles—Additional Incurred Costs 1) Additional Tow Hearing Expense— 100 hearings at one hour per Hearing for Sergeant's salary and benefits $146 (fully benefitted Per hour) $14,600 2) Mobile Data Computer System Expense- $60,850 per year at 33% Vehicle storage and impound related emphasis $20,080 3) Incurred cost per 30 day impound per year at 100 impounded vehicles $34,680 ($14,600 + $20,080) divided by 100 impounded vehicles results in a cost of$345 per vehicle impounded for 30 days. Note: Line items that are struck through above are estimated actual and reasonable costs incurred by CITY that CITY has determined not to pass through to CONTRACTOR. RN#4878-3639-2014 v 1 5 EXHIBIT "B" Chart of Tow Fee Schedules The following rate structure shall apply for all towing and storage services requested by the Police Department and Code Compliance Division,except those services requested by City employees for City-owned vehicles which shall be subject only to the charges in Section 6(E)(1)(A)(2) of the Agreement. The hourly rates below are calculated on a"door to door"basis,and charges commence when the tow truck is dispatched to the scene and conclude when the tow truck returns to the storage yard. A. Basic Hourly Tow Rate: Class A Tow Truck $245 One hour minimum 1) The base hourly rate per tow shall apply to all towed passenger vehicles and trucks rated at less than ten thousand (10,000)pounds gross vehicle weight. This rate also applies to difficult removal work involving the remove of vehicles from deep ditches or flood control channels or separating two entangled vehicles. B. Special Duty Hourly Tow Rate: $250 One hour minimum 1) The special duty hourly rate shall apply when a four-wheel drive tow truck is necessary for off-road recovery of vehicles. The hourly rate C. Heavy Duty Hourly Tow Rate: 1) Two Axel Category: Class B Tow Truck $300 One hour minimum a. The two (2) axel hourly rate shall apply to all towed vehicles with a rate capacity of ten thousand (10,000) pounds gross vehicle weight to,but not including vehicles with thirty(30,000)pounds gross vehicle weight. 2) Three (3)Axel Category: Class C and D Tow Trucks $400 One hour minimum a. The three (3) axel hourly rate shall apply to all towed vehicles with a rate capacity of thirty(30,000)pounds gross vehicle weight or more. 3) The hourly rate for all heavy-duty towing(two and three axels) includes difficult removal of vehicles, up righting overturned vehicles, and the use of special equipment and preparation prior to towing. D. Charges for Related Services: RN#4878-3639-2014 vl 6 1) Lock Out, Tire Change, Jump Start: $90 a. The standard charge for opening locked vehicles, tire change and jump start is ninety dollars ($90)when no towing is involved. If towing is involved, there shall be no additional charge for these services. 2) Dolly: a. There is no additional charge for the use of dolly in the towing service. 3) After Hours Release Fee: a. There shall be an after-hours gate fee of ninety dollars ($90) for anyone desiring release of a vehicle at any time other than normal business hours. E. Storage Fees: (Per Day) 1) Motorcycles, passenger cars and trucks 20' or less Outside Storage: $ 80 per day Inside Storage: $100 per day 2) Trailers 15' or less Outside Storage: $50 per day 3) Trucks, trailers and other Outside Storage $80 per day vehicles 20' to 30' 4) Trucks, trailers and other Outside Storage $90 per day vehicles 30' or more 5) Storage fees are charged per calendar day, not on a rolling 24 hour basis. The first daily fee per vehicle is incurred four hours after drop off at the storage facility. Thereafter, a full day's storage fee will be charged for each calendar day, or part thereof, that the vehicle is stored at Contractor's facility. 6) In addition to the daily storage fees above, Contractor may charge a fee of$345 for all vehicles impounded pursuant to Vehicle Code Sections 14602.6 and 14607.6. Such fees shall be passed through to the City in satisfaction of Contractor's obligations under Section 3(B) of this Agreement. F. Lien Fee: Contractor shall charge lien fees in compliance with Civil Code Section 3074, which are presently$70 for vehicles with a value of$4,000 or less or$100 for vehicles valued at over $4,000. No lien fee shall be charged if the vehicle is redeemed within seventy-two hours of initial storage. G. Additional Conditions: RIV#4878-3639-2014 vl 7 1) The above towing charges shall apply regardless of the location from which the tow is made or the location of the storage area or garage where the vehicle is delivered. Such towing charges shall include the clearing and clean-up of an accident site as may be required by the Police Department; 2) There shall be no additional charge for righting an overturned passenger car or a light pick-up truck if towing is involved; 3) There shall be no additional charge for disconnecting a drive shaft where required for towing; 4) There shall be no charge to City for the storage of a vehicle that has been seized as evidence in a pending investigation. 5) From time to time, the City may request Contractor waive its fees in the event that a vehicle is erroneously stored. When so requested by a sworn supervisor(sergeant or above) of the City's police department, Contractor shall waive its all fees and report the waiver to a Commander in the City's Police Department as soon as is feasible thereafter. RN#4878-3639-2014 vl 8