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HomeMy WebLinkAboutContract - 08/27/2023 - 2089 Contract City Clerk Review 04‘ Risk t Review, VEHICLE TOW SERVICE FRANCHISE AGREEMENT BY AND BETWEEN THE CITY OF CATHEDRAL CITY AND SOUTHWEST TOWING THIS VEHICLE TOW SERVICE FRANCHISE AGREEMENT ("AGREEMENT") is made and entered into this 27th day of August, 2023, by and between the City of Cathedral City, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as "CITY" and Southwest Towing, hereinafter referred to as "OPERATOR." This AGREEMENT contains terms and conditions that a company agrees to comply with in order to receive and maintain a rotation tow listing with the CITY. Participation in the CITY'S Rotational Tow Program is voluntary and is not intended to be a main source of income. An OPERATOR, by agreeing to participate in the Program is not acting as an agent for the CITY or the Cathedral City Police Department when performing services under the AGREEMENT. Exceptions to compliance with the AGREEMENT shall not be authorized by verbal agreement. WHEREAS, CITY desires vehicle towing companies as independent contractors for the purposes of satisfying all of CITY'S vehicle towing needs pursuant to CITY'S request; and WHEREAS, CITY finds and determines that the unauthorized parking of vehicles that cannot be removed constitutes a public nuisance and public emergency affecting the property, public safety, and welfare of the residents of the CITY; and WHEREAS, CITY solicited proposals from qualified vehicle towing companies which included, but was not limited to, OPERATOR; and WHEREAS, based on OPERATOR'S qualifications and experience, it was determined by CITY that OPERATOR is "uniquely" qualified to perform the services described in this AGREEMENT; and WHEREAS, on August 23, 2023, the CITY'S City Council, at a regularly scheduled meeting of the CITY'S City Council and pursuant to the recommendation of the CITY'S Chief of Police, authorized CITY to enter into an agreement with OPERATOR for vehicle towing services on behalf of CITY; and WHEREAS, this AGREEMENT is drafted in accordance with all applicable terms and provisions set forth in the California Vehicle Code; and WHEREAS, this AGREEMENT applies only to vehicles towed and/or stored at the request of the POLICE DEPARTMENT or CODE COMPLIANCE DEPARTMENT; and WHEREAS, CITY shall request vehicle towing service by OPERATOR on a rotation/alternate basis between OPERATOR and additional vehicle towing companies currently servicing CITY. 1. DEFINITIONS A. The term "CITY" shall refer to the City of Cathedral City, and its duly authorized employees, agents, assignees, or designees. B. The term "OPERATOR" shall refer to the tow operating company and its duly authorized employees, agents, assignees, or designees. C. The term "AGREEMENT" shall refer to the Vehicle Tow Service Franchise Agreement entered into by and between the CITY and OPERATOR. D. The term "POLICE DEPARTMENT" shall refer to the CITY'S Police Department. E. The term "CODE COMPLIANCE DEPARTMENT" shall refer to the CITY'S Code Compliance Department. F. The term "CONTRACT ADMINISTRATOR" shall refer to the CITY'S Chief of Police or their authorized designee. G. The term "PRIMARY STORAGE YARD" shall refer to a permanent securely fenced or an enclosed storage area of an adequate size for the proper storage of vehicles towed and/or impounded, that is controlled by the franchisee, and is located no greater than approximately twenty(20) minutes driving distance from the center point of the City. H. The term "PLACE OF BUSINESS" shall refer to the OPERATOR'S principal place of business where owner(s) and/or manager(s) conduct and coordinate the tow company's business. I. The term "VEHICLE CODE" shall refer to the State of California Vehicle Code. 2. TERM OF THE AGREEMENT AND OPTION TO RENEW A. The initial term of this AGREEMENT shall be for a total period of three (3) years commencing on the date the AGREEMENT is mutually executed. OPERATOR may exercise an option to renew the AGREEMENT for one (1) additional three (3) year period. A renewal option granted to the OPERATOR may be exercised by OPERATOR'S timely filing of a renewal application within six (6) months of the expiration of the term of this AGREEMENT, upon forms supplied by CITY. The renewal option shall be 2 deemed granted unless, no later than sixty (60) days from the date of filing the renewal application, the City Manager has found OPERATOR to be not in compliance with the terms and conditions of this AGREEMENT, Chapter 12.78 of the CITY Municipal Code, or other provision of law applicable to the towing and storage services provided pursuant to this AGREEMENT. Upon such findings, the City Manager may deny the renewal option or grant it conditionally and, if denied, this AGREEMENT and all future options shall terminate. B. In the event CITY exercises its option to renew this AGREEMENT for an additional three (3) year period, all terms, conditions, and provisions of this AGREEMENT shall remain in effect and govern the duties, responsibilities, and liabilities of the parties hereto, subject to Section 31 herein. Any and all proposed adjustments in fees, rates, and service charges must be approved by the City Council before CITY exercises its option to renew this AGREEMENT. 3. ROTATION LISTS A. A call to an OPERATOR shall constitute one turn on the list, and the OPERATOR shall be moved to the bottom of the list. 1) This includes when the OPERATOR fails to answer the phone, is unable to respond, is unable to perform the required service, refuses to respond or provide service, or is canceled due to excessive response time. B. If it is determined the OPERATOR is not needed and is canceled by the CITY, up to and including arrival on scene and standby time which does not result in a tow, there shall be no charges and the OPERATOR shall be placed back at the top of the list. C. If the OPERATOR responds to a CITY call and is canceled by the vehicle's registered owner or agent, prior to the OPERATOR taking possession of the vehicle, there shall be no charge and the OPERATOR shall be placed back at the top of the list. 1) Possession is deemed to arise when the vehicle is removed and is in transit, or when vehicle recovery operations or load salvage operations have begun (Section 3068.1[a] of the Civil Code [CC] and Section 22851[a][1] of the California Vehicle Code [CVC]). 2) Whenever a vehicle owner returns to a vehicle that is in possession of a towing company prior to the removal of the vehicle, the owner may regain possession of the vehicle from the towing company if the owner pays the tow company the towing charges incurred at the 3 time service is concluded (Section 22851[42] CVC). a) NOTE: Simply attaching a cable to or blocking a vehicle does not constitute recovery or load salvage operations. D. Nothing in the AGREEMENT shall prohibit a Chief of Police, supervisor, responding officer, or designee, from requesting a specific tow company when, in their opinion, the necessary resources to clear a hazard are not available from the tow company currently at the top of the rotation tow list. 1) In such an instance, the selected company would then go to the bottom of the list and those tow companies which were by-passed, would remain in the same list order. E. Nothing shall prohibit a Class B, C, or D OPE TOR from maintaining a position on a lighter class rotation list, provided the tow truck meets the equipment specifications for that class of operation. 1) Regardless of the class of tow truck utilized or responding to the call, charges shall not be more than for the class of vehicle towed or serviced, except when vehicle recovery operations require a larger class tow truck. 4. TO OPE- TORS A. OPE- A TORS applying for the rotation tow program shall have a minimum of three (3) verifiable years of for-hire towing experience, as an owner or principal, prior to responding to a request for qualifications to qualify for a rotation tow listing. 1) The three (3) verifiable years of for-hire experience shall be determined by the CITY. B. OPE- TORS and owners who do not meet the three (3) verifiable years of for-hire towing experience, may be considered if a full-time manager is employed who possesses three (3) verifiable years of for-hire tow experience, as an owner, principal, or full-time manager. 1) The three (3) verifiable years of for-hire experience, as an owner, principal, or full-time manager shall be determined by the CITY. C. Management experience shall be determined and qualified by the CITY as follows: 1) The designation of"manager" implies general power and permits reasonable inferences that the employee so designated is vested 4 with the general conduct and control of their employer's business. 2) An individual who has charge and control of a business and is vested with a certain amount of discretion and independent judgment. D. OPERATOR shall notify the CITY of arrest/conviction notifications for all OPERATORS, managers, and tow truck drivers. An OPERATOR shall notify the CITY of any arrest and/or conviction of a tow truck driver, manager, or the OPERATOR, prior to the beginning of the next work shift. Failure to make notification should be cause for disciplinary action. E. The OPERATOR, manager, and all tow truck drivers shall be enrolled in the Employer Pull Notice (EPN) program. 1) The OPERATOR shall provide a current list of all managers and drivers, and a copy of the current EPN report, or in the case of a newly hired tow truck driver, proof of enrollment in the EPN program, in a response to a request for qualifications. 2) Upon the addition of new managers or drivers, an OPERATOR shall be granted a maximum of 30 days to enroll drivers in the EPN. F. OPERATOR shall provide to the CITY, on the Effective Date, and then annually thereafter within ten (10) days of the Effective Date's anniversary, a list of its tow truck operators. This list shall include each tow truck operator's driver's license number and a DMV printout for each operator. G. OPERATORS shall have a Carrier Identification number and a valid Motor Carrier Property (MCP) permit. The MCP documentation shall be provided to the CITY. 1) The expiration of an OPERATOR'S MCP and/or suspension of the MCP, pursuant to Section 34623 CVC, shall result in the immediate suspension of the tow OPERATOR, as well as additional disciplinary action which may be imposed by the Chief of Police. H. OPERATORS shall have a sufficient number of drivers in order to comply with hours-of-service. All drivers shall comply with intrastate and/or interstate hours of service pursuant to Title 13, Sections 1212 and 1212.5 of the California Code of Regulations (CCR). 1) OPERATORS shall ensure their drivers' record of duty status complies with Title 13, Section 1213 CCR. I. OPERATORS shall maintain a valid Cathedral City Business License 5 pursuant to Chapter 3.28 of the Cathedral City Municipal Code. J. OPERATOR shall agree to provide a copy of the AGREEMENT to each of OPERATOR'S employees and obtain each employee's signature on the AGREEMENT on an Acknowledgement form as set forth below. ACKNOWLEDGEMENT 1 BY SIGNING THIS ACKNOWLEDGEMENT, EMPLOYEE ACKNOWLEDGES THAT HE OR SHE UNDERSTANDS AND AGREES TO BE BOUND BY ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT AND THAT ANY VIOLATION OF SAID TERMS AND PROVISIONS OF THIS AGREEMENT MAY RESULT IN IMMEDIATE TERMINATION OF MY EMPLOYMENT. Employee's Signature K. CONTRACTOR shall retain all employee-executed copies of this Acknowledgement and provide the same to the CITY upon request. 5. TOW OPERATOR'S BUSINESS A. An OPERATOR'S place of business shall have a sign which clearly identifies it to the public as a tow service. 1) The sign shall have letters which are clearly visible to the public from the street and shall be visible at night. B. Business hours shall be posted in plain view to the public. C. An OPERATOR'S place of business shall have posted in plain view to the public the "Towing and Storage Fees and Access Notice" and copies of the notice readily available to the public pursuant to Section 22651.07(a)(1)(A) CVC. 1) The "Towing and Storage Fees and Access Notice" shall be a standardized document plainly printed in no less than 10-point type and shall contain the required language pursuant to Section 22651.07(e) CVC. D. An OPERATOR'S place of business shall be sufficiently staffed to allow customers to talk face-to-face with a tow company's owner, manager, or employee during normal business hours. 6 1) Normal business hours shall not be less than 8 a.m. to 5 p.m., Monday through Friday, except for the following state recognized holidays: New Year's Day, Martin Luther King Day, President's Day, Cesar Chavez Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, day after Thanksgiving Day, and Christmas Day. E. An OPERATOR'S place of business shall be open during normal business hours pursuant to Section 22651.07 (d) CVC except for the recognized holidays outlined on D(i) above. F. The OPERATOR shall maintain records of all tow services furnished at the OPERATOR'S primary business office. (Note: printable electronic records are acceptable.) 1) Invoices shall contain the required itemized information pursuant to Section 22651.07(e) CVC. 2) Itemized invoices shall contain a distinct notice upon the invoice stating "Upon request, you are entitled to receive a copy of the Towing and Storage Fees and Access Notice." This notice shall be contained within a bordered text box, printed in no less than 10- point type pursuant to Section 22651.07(a)(1)(B)(3) CVC. G. The OPERATOR'S primary business office shall also maintain business records relating to personnel, insurance, personnel taxes, payroll, applicable operating authorities, local operating authorities, lien sale actions, driver's record of duty status (intrastate and/or interstate), Federal Communication Commission licensing (if applicable), and non-CITY tows. H. The CITY may inspect all OPERATOR records relating to compliance with the AGREEMENT and Section 2424 CVC without notice during normal business hours. 1. OPERATORS shall permit the CITY to make copies of business records at their place of business, or to remove business records for the purpose of reproduction. 1) The CITY shall provide a receipt for any record removed from the place of business. J. An OPERATOR shall maintain business records for a period of two (2) years (effective July 28, 2023), plus the current term of this AGREEMENT, and shall make them available for inspection. 1) Failure of the OPERATOR to comply with the aforementioned 7 inspection requirements shall be cause for disciplinary action. 6. RESPONSE TO CALLS A. The OPE A TOR shall respond to calls 24 hours a day, seven (7) days a week. The time period within which the OPE- A TOR shall respond to requests for service by the Police Department or Code Compliance by providing a tow vehicle at the response location shall be no greater than twenty (20) minutes form the time of such requests. B. An OPE- A TOR or tow truck driver shall respond with a properly equipped tow truck of the class required to tow the vehicle, perform vehicle recovery (e.g., rollover, down embankment), provide service (e.g., fuel, flat tire change), and be in possession of the appropriate class of driver license, applicable endorsements, and permits. 1) Any applicable permits (e.g., load variance, oversize) shall be valid and maintained in the tow truck. C. The OPE A TOR shall advise CITY dispatch, at the time of notification, if they are either unable to respond or unable to meet the maximum response time. 1) If, after accepting the call, the OPE- A TOR is unable to respond or will be delayed in responding, the OPERATOR shall immediately notify the appropriate CITY communications center. D. A failure or refusal to respond to towing or service calls, and/or repeated failures to meet maximum response time requirements, without justification, shall result in disciplinary action, including, refusing to respond for junk vehicle calls. Justification for failure or refusal to respond to calls shall be determined by the CITY. E. If service, other than towing, recovery, and load salvage, is canceled by the vehicle's registered owner or agent, no lien shall arise for the service unless the OPERATOR has presented a written statement to the vehicle's registered owner or agent for the signed authorization of services to be performed pursuant to Section 3068(a) CC. 1) The OPE- A TOR shall not attempt to take possession of a vehicle in order to establish a lien for any non-towing services performed, or initiated and subsequently canceled. F. Nothing shall prohibit a Class B, C, or D tow truck from maintaining a place on a lighter class rotation tow list, provided the tow truck meets the equipment specifications for that class of operation. 8 1) Regardless of the class of tow truck utilized or responding to the call, charges shall not be more than for the class of vehicle towed or serviced, except when vehicle recovery operations require a larger class tow truck. G. One tow company per vehicle shall be dispatched to a multi-car incident unless the Chief of Police has established policy which allows an OPERATOR to dispatch more than one tow truck to a multiple vehicle collision scene in response to a rotation tow call. H. If two or more OPERATORS are called to the same incident, distribution of the vehicles shall be at the discretion of the CITY incident commander. When an OPERATOR will be temporarily unavailable to provide services due to a pre-planned or scheduled activity, the OPERATOR shall notify the CITY at least 24 hours prior to the date that services will be unavailable, noting the times and dates of the unavailability. J. Only tow truck personnel and equipment requested shall respond to a CITY call (e.g., tow truck driver bringing significant others, family members, friends, or pets, is not allowed). K. An OPERATOR shall not respond to a CITY call assigned to another OPERATOR or reassign a call to another tow OPERATOR, unless requested to do so by the CITY. 1) Nothing would preclude the assigned OPERATOR from responding to an incident to ascertain if additional assistance or equipment is required. L. There shall be no additional charge for any personnel or equipment which is not necessary to perform the required service. Any additional personnel or equipment shall be approved by CITY on scene. M. There may be times when the OPERATOR assigned the initial call, may require assistance from an additional OPERATOR. 1) The assigned OPERATOR may, with concurrence of the scene manager, request a specific OPERATOR for additional assistance. 2) The OPERATOR'S approved request shall be routed through the CITY on scene incident commander. N. There may be times when an OPERATOR, who was not called to the scene, comes upon a collision scene where a vehicle or vehicles are blocking a roadway and the on-scene officer requests assistance in 9 ° clearing the roadway. 1) In such a case, the OPE- A TOR may be requested by the officer to move the vehicle to a safe location and leave it. 2) There shall be no charge for this assistance, and the assistance provided shall not change the OPE' A TOR'S place in the rotation. a) Violations of Section 22513 CVC shall result in disciplinary action. 3) If the OPE- A TOR/tow truck driver is requested to provide service at the scene resulting in a tow, that company will be moved to the bottom of the list. O. It shall be CONTRACTOR'S responsibility to perform the following: 1) Tow and store vehicles as requested by CITY including, but not limited to the following: a. Vehicles taken into custody by the Police Department; b. Any and all vehicles requested to be towed and/or stored by the POLICE DEPARTMENT or the CODE COMPLIANCE DEPARTMENT including CITY owned vehicles; c. Vehicles abandoned in public places or on public property or private property within the jurisdiction of CITY so long as requested to be towed and/or stored by the POLICE DEPARTMENT or the CODE COMPLIANCE DEPARTMENT pursuant to their enforcement powers of the law and VEHICLE CODE Section 22658; d. Vehicles seized and impounded pursuant to VEHICLE CODE Sections 14602.6 and 14607. 6; and e. Vehicles requested to be towed and/ or stored pursuant to CITY'S Vehicle Abatement Program as more fully described below. 2) Tow and store vehicles as requested by CITY including, but not limited to the following: a) Remove all debris resulting from vehicle accidents, including sweeping; 10 b) Perform all necessary work preliminary to towing vehicles such as removing vehicles from ditches, righting vehicles, separating entangled vehicles, disconnecting drive shafts, and other such work as shall be required to enable the towing of certain vehicles; and c) Perform all requested and necessary towing, battery jump start, and tire change services on City-owned vehicles at the City's request. 7. STORAGE YARD A. The OPERATOR shall be responsible for the safekeeping and prevention of vandalism of all vehicles and contents which are stored/impounded by the CITY. 1) All vehicles impounded or taken into custody by CITY must be stored by OPERATOR in areas that are enclosed by substantial wire fences or walls that have gates or doors which lock. Such fences or wall enclosures shall be not less than six (6)feet in height and shall have not less than one (1) gate or door of adequate width and height. The bottom edge of the enclosure structure shall not be more than two (2) inches above the parking surface of the enclosed area. All fence or wall enclosures shall be maintained in good order throughout the term of the agreement. In the event said fences or walls are damaged in any way, OPERATOR shall repair said fences or walls within twenty four(24) hours from the time of the occurrence of any damage to ensure proper protection of the stored vehicles. 2) The CONTRACT ADMINISTRATOR or his designee reserves the right to implement and modify any security requirements should it become necessary in order to comply with local conditions. 3) OPERATOR'S storage yard shall comply with all zoning and other ordinance requirements of CITY. B. The primary storage yard may be located at the same location as the business address. If OPERATOR stores vehicles at a different location from the primary location, this additional location must be located no greater than ten (10) miles from the city limits of the City of Cathedral City and the tow operator shall furnish to the CONTRACT ADMINISTRATOR the addresses of each and every additional storage facility. OPERATOR shall provide each and every location of its storage facilities in the Proposal for Tow Services Agreement and Rotation Tow Listing which shall be prepared prior to the award of the AGREEMENT. 11 1) Stored/impounded vehicles shall be at the primary storage yard. 2) This requirement may only be waived by a written addendum from the Chief of Police with justification. C. The primary storage yard must be located no greater than approximately twenty (20) minutes driving distance from the center point of the City. D. A secondary storage yard shall be located reasonably close to the main business office. 1) There shall be no charge to the vehicle's owner/agent for towing a vehicle from a secondary storage yard to the primary storage yard. E. OPERATOR'S primary storage yard shall provide enough space to maintain a capacity of one hundred (100) vehicles outside on level surface. 1) A secondary storage yard shall only be utilized if the primary storage yard is full and only with prior CITY approval. a) This requirement may be only waived by a written addendum from the Chief of Police with justification. F. An OPERATOR'S employee shall be properly trained to conduct business transactions related to towing, storage, and release of vehicles/property. G. The OPERATOR or their employee shall release personal property from a vehicle which has been stored/impounded by the CITY at the request of the vehicle's registered owner or agent pursuant to Sections 22851(b) and 22651.07 CVC. 1) Cathedral City Police Department approval shall be obtained prior to the release of personal property from a vehicle that has been impounded for evidence or investigation. 2) A receipt shall be provided for the removed personal property, with a copy placed inside the stored/impounded vehicle. a) This procedure shall also apply to the removal of property by the tow OPE A TOR and/or their employee to a secured area within the business. H. Personal property and/or the vehicle shall be released at the primary storage yard. 1) Personal property or a vehicle release from a secondary storage 12 yard shall only be granted if it's acceptable to the vehicle's registered owner or agent. a) Personal property is considered to be items which are not affixed to the vehicle. Personal property includes: papers, cellular phones, pull-out radios, clothes, luggage, tools, etc. No fee shall be charged for the release of a vehicle or personal property during normal business hours pursuant to Sections 22851(b) and 22651.07(c)(1) CVC. 1) Should a vehicle owner or his/her authorized representative request the release of the vehicle and/or personal property after normal business hours, there shall be an after-hours fee imposed by OPE- A TOR on the owner or his/her authorized representative in the amount of Ninety Dollars ($90.00). 2) No lien shall attach to any personal property in or on the vehicle pursuant to Section 22851(b) CVC. 3) Loads for hire (i.e., cargo) are not considered personal property pursuant to Section 3051.5 CC. J. The OPERATOR shall keep a written record of every vehicle stored/impounded for a period longer than 12 hours pursuant to Section 10650(a) CVC. 1) The record shall contain the name and address of the person storing or requesting the tow, the names of the owner and driver of the vehicle (if ascertainable), and a brief vehicle description (make, model, license plate number, and any vehicle damage) pursuant to Section 10650(b) CVC. K. The OPE- A TOR shall allow insurance companies to inspect vehicles at their storage yard at no charge and allow 45 consecutive minutes for inspection as necessary pursuant to Section 22651.07 (3)(B) CVC. 8. TO TRUCK DRIVERS A. The OPERATOR shall ensure tow truck drivers responding to calls initiated by the CITY are competent and possess a valid California driver's license of an appropriate class for the vehicle to be driven, and a tow truck driver certificate or a temporary tow truck driver certificate issued by the Department of the California Highway Patrol, to permit the operation of the tow truck pursuant to Section 12520(a) CVC. 13 B. Tow truck drivers shall perform all towing and recovery operations in the safest and most expedient manner possible. C. Tow truck drivers shall be at least 18 years of age and shall possess the proper class of license and endorsements for the towed and towing vehicle. D. Uniforms: CITY rotation tow truck drivers shall wear an identifiable uniform (either shirt and pants, or coveralls) displaying the company and the driver's name while engaged in CITY rotation tow operations. E. Safety Garments: CITY rotation tow truck drivers shall wear appropriate warning garments (e.g., vests, jackets, shirts, retroreflective clothing) during daylight and hours of darkness in accordance with Code of Title 8, Section 1598 CCR. 9. TOW TRUCK CLASSIFICATIONS A. An OPERATOR shall equip and maintain tow trucks covered under the AGREEMENT in accordance with the provisions set forth in the CVC, Title 13 of the CCR, the specifications contained in this AGREEMENT, and in a manner consistent with industry standards and practices. B. All recovery vehicles (wreckers) shall have an extendable/retractable recovery boom. 1) Class D tow trucks used exclusively for salvage and recovery operations are not required to possess wheel lift capabilities. 2) An OPERATOR who has a car carrier is exempted from the recovery, wheel lift, and boom capability requirements. However, the car carrier must be an additional unit and shall not be used for recovery. 3) An auto-loader without an extendable/retractable boom is an additional unit and shall not be used for recovery. a) For purposes of the AGREEMENT, recovery is defined as a vehicle which is overturned, down an embankment, or otherwise not upright on its wheels. C. A violation of the gross vehicle weight rating (GVWR) and/or safe loading requirements of a tow truck should be cause for immediate suspension. This includes exceeding the tow truck's GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck's unladen front axle weight on the front axle when 14 towing. 1) There are two (2) classes of tow trucks covered under this AGREEMENT. 2) Class A - Light Duty a) An OPE- A TOR shall possess or be able to obtain at least minimum one tow truck which has a manufacturer's G R of at least 14,000 pounds. 3) Class B - edium Duty a) An OPE- A TOR shall possess or be able to obtain at least one tow truck with a G R of at least 33,000 pounds. The truck shall be equipped with air brakes and a tractor protection valve or device, and be capable of providing and maintaining continuous air to the towed vehicle. 10. GENE- A L EQUIP ENT SPECIFICATIONS A. Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chassis G R and the classification system used by the American Trucking Association and truck manufacturers. Tow truck and car carrier classifications shall meet all applicable state and/or federal standards. B. Identification Labels: Each piece of towing equipment shall have a manufacturer's label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number, model, and rated capacity. C. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can lift in a winching mode, when the boom is static at a 30-degree elevation with the load lines vertical and the lifting cables sharing the load equally, measured with a live load (weight or load cell). 1) The structural design of the recovery equipment must have a higher load capacity than the performance ratings. 2) Winches shall conform to, or exceed, the specifications set forth by the Recovery Equipment Rating, Society of Automotive Engineers (SAE) Handbook, SAE J706. 3) All ratings for wire rope and chain assemblies are for the 15 undamaged assembly condition. All wire rope and chain assemblies should be the same type, construction, and rating as specified by the original equipment manufacturer. D. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. 11. INSPECTIONS A. The CITY reserves the right to inspect all tow trucks utilized on CITY rotation calls, as well as the OPERATOR'S storage yards(s). B. The intent of the inspections is to ensure OPERATORS are involved in an ongoing safety maintenance program for their tow trucks. The inspection is not intended to find out what needs to be repaired/replaced on an OPERATOR'S tow truck. A tow truck responding to a CITY call shall be properly equipped and operating in a safe condition. C. Tow trucks shall comply with California Air Resources Board requirements. Tow trucks not in compliance shall be cause for disciplinary action. OPERATORS shall provide a current copy of their California Air Resources Board Certificate of Reported Compliance Truck and Bus Regulation in a response of request for qualifications. 12. FEES PAYABLE TO CITY A. OPERATOR hereby agrees to pay to CITY that amount of fees in accordance with CVC Section 12110 which provides that "a fee in connection with the award of a franchise for towing vehicles on behalf of that public entity . . . . shall not exceed the amount necessary to reimburse the public entity for its actual and reasonable costs incurred in connection with the towing program." B. OPERATOR shall pay to the CITY a monthly franchise fee of$ 148.35 per vehicle towed. The franchise fee shall increase by 3% in Year 2 and 3% in Year 3. Payment of the franchise fees to CITY by OPERATOR for each term of the AGREEMENT shall be made monthly due within ten (10)days after execution of this AGREEMENT and thereafter within ten (10) days of the first of the month, as may be extended pursuant to Section 2 hereof. With regard to those fees paid by OPERATOR for the costs incurred by CITY for vehicles impounded pursuant to CVC Sections 14602.6 and 14607.6, OPERATOR shall pay all fees on a monthly basis and not later than thirty(30) days after collection of the storage fees by OPERATOR. C. The parties acknowledge that the above amount, as adjusted, represents a reasonable estimate of"the amount necessary to reimburse the public 16 entity for its actual and reasonable costs incurred in connection with the towing program" for each annual period. Attached hereto as Exhibit "A" and incorporated herein by this reference is a summary of an estimate of the total costs incurred by CITY in connection with the towing program and the parties hereto agree that said costs are reasonable D. In addition, for vehicles impounded pursuant to VEHICLE CODE Sections 14602. 6 and 14607. 6, OPERATOR shall pay to CITY on a monthly basis the following amounts which represents a reasonable estimate of the actual and reasonable costs incurred by CITY with regard to vehicles impounded or forfeited pursuant to CVC Sections 14602.6 and14607. 6: 1) Vehicles released to the owner at or after 30 days: $ 361.92 2) Vehicles released to the owner before 30 days: $ 12.06 per day 3) Vehicles sold by OPERATOR: prorated to reflect 1/3 or 33% of total proceeds of sale less the cost of the OPERATOR tow fee and lien fee as stipulated in OPERATOR awarded proposal for vehicles impounded pursuant to CVC section 14602.6 and 14607.6. E. Both parties acknowledge that the total amount of franchise fees that each OPERATOR shall pay to the CITY is subject to change in the event that an operator is removed from the tow rotation list. In the event that the franchise fees are adjusted, the total amount of franchise fees that each OPERATOR shall pay to the CITY shall not exceed the amount necessary to reimburse the CITY for its actual and reasonable costs incurred in connection with the towing program. F. All payments made pursuant to this AGREEMENT shall be made payable to the "City of Cathedral City" and directed to the attention of the CONTRACT ADMINISTRATOR and shall not be made contingent on any payments due or paid to OPERATOR for the actual tow and/or storage of any vehicles. With regard to vehicles impounded pursuant to CVC Sections 14602.6 and 14607.6, the actual source of storage fee payments shall have no bearing on OPERATOR'S duty to pay CITY under this AGREEMENT and shall include proceeds that OPERATOR may receive from an auction or other sale of a forfeited vehicle. OPERATOR may prorate payment to CITY to reflect 1/3 or 33% of total proceeds of sale less the cost of the OPERATOR tow fee and lien fee as stipulated in OPERATOR awarded proposal for vehicles impounded pursuant to CVC section 14602.6 and 14607.6. 13. RATES CHARGED BY CONTRACTOR TO VEHICLE OWNERS A. The rates charged by OPERATOR to vehicle owners for tow and storage 17 services are set forth in the "Rate Schedule"which is incorporated herein by this reference and attached hereto as Exhibit "B". B. Even when tow and storage services are specifically requested by CITY, OPERATOR acknowledges that it shall charge vehicle owners only for its tow and storage services incurred pursuant to the terms and provisions of this AGREEMENT. At no time shall OPERATOR hold CITY liable for any tow, storage, or disposal costs incurred pursuant to and during the term of this AGREEMENT even when such services are requested by CITY. It is specifically acknowledged by OPERATOR that the vehicle owner shall be solely responsible for such charges. C. The rates set forth in the "Rate Schedule" shall apply to OPERATOR'S services for tow and storage for the initial three (3) year period of this AGREEMENT and thereafter unless otherwise adjusted by and between CITY and OPERATOR as set forth in Section 14 herein. D. OPERATOR shall not make any demand upon the owner of the vehicle for a sum in excess of the rates set forth in Exhibit "B" or otherwise negotiated in accordance with Section 14 herein. E. Any OPERATOR who charges rates above the rates in this AGREEMENT shall be subject to disciplinary action. F. A valid bank credit card or cash payment shall be accepted for payment of towing and/or storage pursuant to Sections 22651.1 and 22651.07(c)(5) CVC. 1) A surcharge shall not be imposed upon a cardholder who elects to use a credit card for payment as a result of a rotation call, pursuant to Section 1748.1 CC and Section 22651.07(c)(5) CVC. G. The approved schedule of rates charged by the OPERATOR shall be available in the tow truck, and shall be presented upon demand to the vehicle owner/agent for whom the tow service was provided or any CITY officer at the scene. H. There shall be no additional charge for moving (i.e., driving, towing, pushing, utilizing a forklift) a stored/impounded vehicle from inside an OPERATOR'S storage yard to the front of the business establishment. I. Storage Fees 1) A vehicle stored/impounded 24 hours or less shall be charged no more than one-day storage pursuant to Section 3068.1(a) CC. 18 a) If the vehicle is released from storage after 24 hours has lapsed, charges may be allowed on a full, calendar-day basis for each day of storage, or part thereof pursuant to Section 3068.1(a) CC. 1) Storage of vehicles in combination should be charged a per vehicle rate except for dollies, con-gear, vehicle on a car carrier/trailer, etc. a. Dollies and con-gear, not in combination, may be charged a storage rate not to exceed Class A storage fees. 2) Inside storage fees shall only be charged when inside storage is requested by the CITY, registered owner, legal owner, insurance company, or when the inside storage can be justified by the tow OPE- TOR. 3) The OPERATOR shall display in plain view at all cashier's stations, a sign as described in Section 3070(d)(2)(E) CC, disclosing all storage fees and charges in force, including the maximum storage rate. J. Lien Fees 1) If a vehicle has been determined to have a value exceeding four thousand dollars ($4,000), pursuant to Section 22670 CVC, the lien shall be satisfied pursuant to Section 3071 CC (Section 3074 CC). 2) The lienholder may charge a fee for lien sale preparations not to exceed seventy dollars ($70), for a vehicle valued at four thousand dollars ($4,000) or less, and not to exceed one hundred dollars ($100) for a vehicle valued at greater than four thousand dollars ($4,000) (Section 3074 CC). a) These charges may commence when the lienholder requests the names and addresses of all persons who have an interest in the vehicle from the Department of Motor Vehicles (Section 3074 CC). b) Not more than 50 percent of the allowable fee may be charged until the lien sale notifications are mailed to all interested parties and the lienholder or registration service agent has possession of the required lien processing documents (Section 3074 CC). 19 c) This charge shall not be made in the case of any vehicle redeemed prior to 72 hours from the initial storage (Section 3074 CC). 14. ADJUSTMENT OF TES UPON EXERCISE OPTION A. In the event any of the options to renew the AGREEMENT for a three (3) year term is exercised and OPERATOR decides to adjust its rates for tow and storage services, OPE" A TOR shall perform the following: 1) Provide CITY with sixty (60) days notification of its desire to adjust its rates prior to the date by which CITY must exercise its option to renew the AGREEMENT; 2) Enter into good faith negotiations for the adjustment of its rates; a) If, after two (2) weeks from the date of OPERATOR'S notice to CITY of its desire to adjust its rates, CITY and OPERATOR are unable to negotiate rates agreeable to both parties, the parties shall seek immediate mediation of the dispute within thirty (30) days from the date negotiations commenced between the parties; and 3) If mediation between the parties is not successful, then either one of the following shall occur: a) The tow and storage service rates in effect prior to negotiations between the parties shall apply to the term of the AGREEMENT, or b) The AGREEMENT shall be terminated by either party upon thirty (30) days written notification to the other party. B. In the event a dispute regarding the adjustment of rates for tow and storage services is submitted to mediation, each party shall bear its own costs for mediation and shall divide the cost of the mediator equally. 15. COLLUSION A. An OPE A TOR and/or applicant shall not conspire, attempt to conspire, or commit any other act of collusion with any other OPERATOR or applicant for the purpose of secretly, or otherwise, establishing an understanding regarding rates or conditions to the AGREEMENT that would bring about any unfair condition which could be prejudicial to the CITY, the motoring public, or other OPERATORS. 20 B. A finding by the CITY that any OPERATOR or applicant has been involved in collusion shall be cause for denial of an application or shall nullify the AGREEMENT. Any OPERATOR or applicant found to be involved in any act, or attempted act of collusion, shall be disqualified from participation on all CITY rotation tow lists for the current term, plus three years. 16. FAITHFUL PERFORMANCE BOND A. OPERATOR shall furnish, within ten (10) working days after award of the AGREEMENT, a Performance Bond in the amount of Thirty Thousand Dollars ($30,000), or equivalent security in such form as is acceptable to CITY. B. OPERATOR shall maintain the validity and enforcement of the Performance Bond or other security for the duration of the AGREEMENT, including any extensions should the option to extend, if any, be exercised. The Performance Bond shall be issued by a surety company licensed to conduct business in the State of California. C. Any disputes arising over the performance and/or cancellation of the AGREEMENT by the CITY are appealable to the CONTRACT ADMINISTRATOR by written notice of appeal from OPERATOR. 17. INSURANCE A. OPERATOR, at OPERATOR'S own cost and expense, shall procure and maintain during the term of this AGREEMENT insurance including, but not limited to, insurance required pursuant to VEHICLE CODE Section 16500.5 and the following: 1) Liability and Property Damage Insurance that will: a) Protect OPERATOR and CITY from claims under the Workman's Compensation Act; and b) Protect OPERATOR and CITY from claims for damages for personal injury including but not limited to death; and c) Protect OPERATOR and CITY from claims for damages to any property belonging to CITY or privately owned property which may arise from operations under the AGREEMENT, whether such operations are provided by OPERATOR, a subcontractor, or anyone directly or indirectly employed by either OPERATOR or sub-contractor. B. CONTRACTOR shall meet all insurance requirements of CITY as set forth 21 in the "Terms for Insurance" which is attached to the AGREEMENT as Exhibit "C" and incorporated herein by this reference. The insurance requirements of CITY shall include, but not be limited to, the provision of personal and property liability insurance, commercial automobile insurance, and Workman's Compensation insurance. C. All required insurance policies shall name CITY as an additional insured. D. Current Certificates of Insurance and endorsements for any and all insurance required by CITY pursuant to the AGREEMENT shall be submitted to CITY prior to award of the AGREEMENT unless such Certificates are already on file with CITY. E. The expiration dates of all insurance policies shall be provided to CITY. F. Each Certificate of Insurance shall contain a provision that coverage afforded under the policies will not be canceled unless CITY and the POLICE DEPARTMENT are notified in writing of said cancellation by insurer at least thirty (30) days prior to the effective date of cancellation of the insurance policy. Failure of Insurer to provide the required notice of cancellation to CITY and POLICE DEPARTMENT shall be considered a default of the AGREEMENT and grounds for termination of the AGREEMENT in accordance with Sections 26(A) and (B) of the AGREEMENT. G. In the event this AGREEMENT is terminated for any reason prior to the completion of all obligations and requirements of this AGREEMENT, OPERATOR agrees to maintain all coverages required herein until the CITY provides written authorization to terminate the coverages following the CITY'S review and determination that all liability posed under this AGREEMENT as to the party providing insurance has been eliminated. H. OPERATOR agrees and acknowledges that if it fails to obtain all of the insurance required in this AGREEMENT in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any sub-OPERATORS or others involved in any way with the performance of services, to the extent such is permissible under this AGREEMENT, OPERATOR shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the CITY or its officers, employees, servants, volunteers, agents and independent OPERATORS. Failure of the OPERATOR to maintain the minimum insurance requirements set forth in the AGREEMENT shall immediately nullify the AGREEMENT, remove the OPERATOR from the rotation tow list, and be subject to disciplinary action by the Chief of Police. 22 18. DE EANOR AND CONDUCT A. While involved in CITY rotation tow operations or related business, the tow OPERATOR and/or employee(s) shall refrain from any acts of misconduct including, but not limited to, any of the following: 1) Rude or discourteous behavior. 2) Lack of service, selective service, or refusal to provide service which the OPE"' A TOR is capable of performing. 3) Any act of sexual harassment or sexual impropriety. 4) Unsafe driving practices. 5) Exhibiting any objective symptoms of alcohol or drug use. a) The OPE- A TOR/tow truck driver shall submit to a preliminary alcohol screening test upon demand of the CITY if an odor of an alcoholic beverage is detected upon the person. 6) Any acts of discrimination based on a protected group. 19. TO CO PLAINTS A. All CITY related tow service complaints received or initiated by the CITY against a tow OPERATOR or tow OPE A TOR'S employee shall be accepted and investigated in a fair and impartial manner. 1) The tow OPE- A TOR and their employees shall cooperate with CITY investigators during the course of an investigation. B. Alleged violations of the AGREEMENT shall be investigated by the CITY. C. Complaints for violations of the law not normally investigated by CITY shall be referred to the agency with investigation jurisdiction. D. The OPE- A TOR shall be notified in writing of the findings within 30 days of the conclusion of any investigation. 20. CO PLIANCE ITH A. Tow OPE- A TOR and employees shall, at all times, comply with federal, state, and local laws and ordinances, pursuant to 12.78.130 of the Cathedral City Municipal Code. 23 21. CO PLIANCE ITH TO SERVICE AGREE ENT A. The OPE" A TOR agrees, as a condition of inclusion in the rotation tow program, to comply with the terms and conditions of the AGREEMENT, pursuant to section 12.78.140 of the Cathedral City Municipal Code. 22. DISCIPLINARY ACTION A. The Chief of Police shall take disciplinary action against an OPE" A TOR for violations investigated and sustained, pursuant to section 12.78.150 of the Cathedral City Municipal Code. 23. TERMS OF DISCIPLINARY ACTION A. Violations of the terms and conditions of the AGREEMENT may be cause for disciplinary action and/or suspension pursuant to section 12.78.160 of the Cathedral City. 24. HEARING/APPEAL A. A hearing shall be granted, upon an OPE' TOR'S request, within ten (10) calendar days, pursuant to section 12.78.170 of the Cathedral City Municipal Code for any of the following circumstances: 1) OPE A TOR is served with disciplinary action. 2) Denial of an OPERATOR'S rotation tow application or an OPE' A TOR/driver application. 25. ADVERTISING A. The OPE" A TOR shall not display any sign or engage in any advertisement indicating an official or unofficial connection with the CITY. 26. TER !NATION OF AGREEMENT A. Should OPERATOR fail to perform any of the material terms, conditions, duties, and/or responsibilities set forth in this AGREEMENT including, but not limited to, failing or neglecting to furnish any of the services listed in the AGREEMENT at the prices indicated and at the times and places specified, failing to make any payments specified in the AGREEMENT for any period of time, or failure by the Liability Insurer to provide to CITY and the POLICE DEPARTMENT a Notice of Cancellation of any Insurance Policy required to be in effect pursuant to the AGREEMENT, OPE" TOR shall be considered in default and in breach of the AGREEMENT on the date of notification by CITY. 24 B. Should OPERATOR be considered in default and in breach of the AGREEMENT, OPERATOR shall have two (2) weeks to remedy its default and breach. If, after two (2) weeks, OPERATOR fails to remedy its default and breach, CITY or its designee may, after a duly noticed hearing held pursuant to Section 12.78.170 of the CITY Municipal Code, at its sole discretion after seven (7) days written notification to OPERATOR terminate the AGREEMENT in its entirety or terminate any and all items affected by such default and thereafter, whether or not the contract is terminated in whole or in part, procure services elsewhere without notice to OPERATOR. 27. ENTIRE AGREEMENT A. This AGREEMENT supersedes any and all other AGREEMENTS, either oral or written, between the CITY and OPERATOR with respect to the subject matter of this AGREEMENT B. This AGREEMENT contains all of the covenants and AGREEMENTS between the parties with respect to the subject matter of this AGREEMENT, and each party to this AGREEMENT acknowledges that no representations, inducements, promises, or AGREEMENTS have been made by or on behalf of any party except those covenants and AGREEMENTS embodied in this AGREEMENT. C. No AGREEMENT, statement, or promise not contained in this AGREEMENT shall be valid or binding. 28. INTERPRETATION A. This AGREEMENT was prepared by the parties jointly and equally, and shall not be interpreted against either party on the ground that one of the parties was solely responsible for preparing the AGREEMENT or caused the AGREEMENT to be prepare. 29. SEVERABILITY A. If any one or more of the sentences, clauses, paragraphs or sections contained herein is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this AGREEMENT and shall not affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein. 25 30. GOVERNING LAW A. The validity of this AGREEMENT and any of its terms or provision, as well as the rights and duties of the parties under this AGREEMENT, shall be construed pursuant to and in accordance with California Law. 31. VENUE A. All proceedings involving disputes over the terms, provisions, covenants or conditions contained in this AGREEMENT and all proceedings involving any enforcement action related to this AGREEMENT shall be initiated and conducted in the applicable court or forum in Riverside County, California. 32. ATTORNEYS FEES A. In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this AGREEMENT or as a result of any alleged breach of any provision of this AGREEMENT, the prevailing party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorneys' fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof. 33. AUTHORITY A. The persons executing this AGREEMENT on behalf of the parties hereto warrant that they are duly authorized to execute this AGREEMENT on behalf of said parties. OPERATOR APPROVAL I certify that all drivers operating under this Tow Service Agreement(AGREEMENT) are qualified and competent. I further certify that I have read and understand this AGREEMENT and agree to abide by all the provisions. I further agree to indemnify, defend, and save harmless the CITY, its officers, agents, and employees from any and all claims and losses accruing or resulting to the OPERATOR in connection with the performance of the AGREEMENT, and from any and all claims and losses accruing or resulting to any person, firm, or corporation who may be injured or damaged by the OPERATOR in the performance of this AGREEMENT. The OPERATOR, and the agents and employees of the OPERATOR, in the performance of this AGREEMENT, shall act in an independent capacity and not as officers or employees or agents of the City of Cathedral City. The terms of this AGREEMENT will become effective: August 27, 2023 and end August 27, 2026. 26 OPE' TOR Approval Signature Print d Name Oomptcy Title Date alo / Business Address Phone Number Motor Carrier Permit Number IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first wriften above. CITY pf CATHED" L CITY SOUTH EST TO ING Charles P. McClendon, City Manager By Its: (Title) ATTEST: A 7- Tracey R. e o illo, City Clerk APPROVED AS TO FORM: Eric S. Vail, City Attorney 27 Exhibit "A" SU ARY OF INCURRED COSTS A. Facilities and Infrastructure 1. Building - 2.5 % of operating costs of$532,775 $ 13,319 2. Information Systems Expense- 2.5 % of Police Departments Information Systems Expenditures of$763,641 $ 19,091 Total incurred Facilities and Infrastructure costs 32,410 B. Professional Services 1. Legal Expense for contracts, consulting, and litigation — 12 hours at $290 per hour $ 3,480 C. Personnel Costs—Administrative 1. Commander— 12 hours @ $287 hr. (total comp) $ 3,444 2. Sergeant—42 hours @ $248 (total comp) $ 11,904 3. Analyst II- 24 hours @ $146 (total comp) $ 3,504 Total incurred costs $ 18,852 D. Personnel Costs— Staff 1. Police Officer- $174 @ .5 hour x 580 tows $ 50,460 2. Community Svc Officer—$104 @ .5 x 145 tows $ 7,540 3. Dispatcher— $127 @ .25 hour x 848 tows $ 26,924 4. Records Clerk - $118 @ .75 hour x 848 tows $ 75,048 5. Code Compliance Off- $133 @ .5 hour x 36 tows $ 2,394 6. Citizens on Patrol (COP) .5 hour x 87 tows $ 0 Total incurred Professional and Personnel Costs - $ 162,366 E. Summary of incurred costs 1. Facilities and Infrastructure costs $ 32,410 2. Professional Services $ 3,480 3. Personnel Costs—Administrative $ 18,852 4. Personnel Costs — Staff $ 162,366 Total incurred costs $ 217,108 F. Revenue Received Annual Revenue Received for Storage and Impound Releases $91,306 and Lien Sales from Tow Contracts 28 Incurred Costs of$217,108 — Revenue Received $91,306 = $ 125, 802 Per Vehicle Tow Fee = $125,802 divided by *848 tows = $148.35 G. Additional Costs Incurred - 30 Day Impound Vehicles 1. Tow Hearing Expense — $ 6,200 2. Mobile Data Computer System Expense — $60,850 per year at 18 % vehicle storage and impound related expense $10,953 Incurred cost per 30 day impound per year at 50 impounded vehicles— $17,153 ($6,200 plus $10,953) divided by 50 impounded vehicles results in a cost of$343 per vehicle impounded for 30 days. (*Note: 848 tows is the estimate based on 2022 police and code compliance vehicles stored or ' i pounded) 29 Exhibit "B" RATE SCHEDULE FOR TOWING AND STORAGE SERVICES REQUESTED BY THE CATHEDRAL CITY POLICE DEPARTMENT The following rate structure shall apply for all towing and storage services requested by the POLICE DEPARTMENT, except those services requested by CITY employees for CITY owned vehicles and subject to Section A (2) herein, and shall be applicable for the term of this AGREEMENT: A. Base Towing Rate (Class A Tow Truck) $245.00 per hour (One-Hour Minimum) 1. The base rate per tow truck shall apply to all towed passenger vehicles and trucks rated at less than ten thousand (10,000) pounds gross vehicle weight and commence when the tow truck arrives on the tow scene. This rate also applies to difficult removal work involving the removal of vehicles from deep ditches or flood control channels or separating two entangled vehicles; and 2. With respect to a request for a tow of a CITY owned vehicle, OPERATOR shall charge the CITY the prevailing rate for towing services. B. Heavy Duty Hourly Towing Rate: 1. Two Axle Category: (Class B Tow Truck) $300.00 per hour (One-Hour Minimum) a. The two (2)axle category shall apply to all towed vehicles with a rate capacity of ten thousand (10,000) pounds gross vehicle weight, but shall not apply to vehicles with thirty thousand (30,000) pounds or more gross vehicle weight. 2. Three (3) Axle Category: (Class C and D Tow Trucks) $400.00 per hour a. The three (3) axle hourly rate shall apply to all towed vehicles with a rate capacity of thirty thousand (30,000) pounds gross vehicle weight or more; and b. The hourly rate for all heavy duty towing (two and three axles) shall all commence when the tow truck arrives on the tow scene and includes difficult removal work involving the removal of vehicles from deep ditches and flood control channels, separating two entangled vehicles, up-righting overturned vehicles, and the use of special equipment and preparation prior to towing. C. Charges for Related Services: 30 1. Lock Out: $90.00 (if towing is not required) a. The standard charge for opening locked vehicles is Ninety Dollars ($90.00) where no towing is involved. If towing is involved, there shall be no additional charge for unlocking a locked vehicle. 2. Dolly: a. There is no additional charge for the use of a dolly in the towing service. 3. After Hours Release Fee: a. There shall be an after-hours gate fee of Ninety Dollars ($90.00) for anyone desiring release of a vehicle at any time other than normal business hours. D. Storage: (Per Day) 1. Automobiles $80.00 per day (For Outside Storage) $100.00 per day (For Inside Storage) 2. Motorcycles $80.00 per day (For Outside Storage) $100.00 per day (For Inside Storage) 3. Trailers 15' or less $50.00 per day (For outside storage) 4. Trucks, trailers or other vehicles 20 to 30 feet $80.00 per day 5. Trucks, trailers or other vehicles over 30 feet $90.00 per day a. 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; and b. Standard rates for trucks that consist of one (1)ton, two (2)axle, and are twenty (20) feet or under shall be Eighty Dollars (80.00) per twenty-four (24) hour period or any portion thereof. The standard 31 rate for trucks that consist of three (3)axles and are over twenty(20) feet shall be One Hundred Dollars($100.00) per unit, per twenty-four (24) period or any portion thereof. E. Additional Conditions: 1. The above towing charges shall apply regardless of the location from which the vehicle is towed or the location of the storage area or garage where the vehicle is delivered. Such towing charges shall include the cleaning 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 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. The service of reconnecting the drive shaft, in event such reconnecting is necessary, shall be performed without additional charge; and 6. Should there be a dispute over the charges made for towing and/or storage of vehicles or charges for other services, said dispute shall be governed by the provisions of Section 13 of the AGREEMENT. OPE ATOR shall not make any demand upon the owner of the vehicle for a sum in excess of the amount set forth in this Addendum or otherwise re-negotiated by the parties in accordance with Section 14 of this AGREEMENT. 32 Exhibit "C" TER S FOR INSU- • NCE — PUBLIC LIABILI INSU' • NCE A. Personal and Property Liability Insurance: 1. During the entire term of the AGREEMENT, OPE' A TOR agrees to procure and maintain public liability insurance at its sole expense for the following reasons: a. To protect against loss from liability imposed by law for damages on account of bodily injury, including death therefrom, suffered or alleged to be suffered by any person or persons resulting directly or indirectly from any act or activities by CITY, OPE' A TOR and/or its subcontractors, or any person acting on behalf of or under the control of CITY or OPE" TOR. b. To protect against loss from liability imposed by law for damages to any property belonging to any person which was caused directly or indirectly by or from acts or activities of CITY, OPE TOR and/or its subcontractors, or any person acting for or under the control or direction of CITY or OPE' A TOR; and c. To protect CITY against incurring any legal costs or fees in defending claims for alleged loss specified in Sections A(1)(a) and (b) of this Exhibit and listed above. 2. Such public liability and property damage insurance shall be maintained in full force and effect throughout the term of this AGREEMENT and any extension thereof in the following minimum limits: a. Bodily Injury: 1. $ 500,000 Each Person; 2. $1,000,000 Each Occurrence; and 3. $1,000,000 Aggregate Products and Completed Operations b. Property Damage: 1. $ 250,000 Each Occurrence; and 2. $ 250,000 Aggregate c. A combined single limit policy with aggregate limits in the amount of$1,000,000 will be considered equivalent to the required minimum policy limits. 3. The insurance coverage specified in this provision shall be primary insurance and shall name CITY as an additional named insured; 33 4. If the operation of services pursuant to this AGREEMENT results in an increase or decrease of risk in the opinion of the City Manager of CITY, then OPERATOR agrees that minimum limits specified herein in this provision shall be changed accordingly upon request by the City Manager. In the event that the City Manager determines that an increase in insurance coverage is warranted, then OPERATOR reserves the right to appeal the City Manager's determination to the City of Cathedral City Council within ten (10) days after the City Manager requests the increase in insurance coverage; and 5. OPERATOR agrees that the provisions therein requiring the maintenance of insurance shall not be construed as in any way limiting the extent to which OPERATOR may be held liable for the payment of damages to persons or property resulting from the activities of OPERATOR, its subcontractors, or from any person or persons for which OPERATOR is otherwise responsible. 6. Current certificates of insurance and endorsements for any and all insurance required by CITY respecting personal and property liability insurance pursuant to the AGREEMENT shall be submitted to CITY prior to award of the AGREEMENT unless such certificates and endorsements are already on file with CITY. B. Automobile Liability Insurance: 1. OPERATOR shall procure and maintain, at its sole expense,throughout the term of this AGREEMENT and any extension thereof, bodily injury and property damage insurance coverage for automobile equipment including, but not limited to, entirely owned, not owned, and hired automobiles in the following minimum limits: a. Bodily Injury: 1. $ 500,000 Per Person 2. $ 1,000,000 Each Occurrence b. Property Damage: 1. $ 250,000 Per Occurrence c. Uninsured Motorists: 1. Subject to the State of California minimum limits for financial responsibility. 2. On-Hook and Garage Keepers Legal Liability insuring the vehicles with minimum limits based upon the size of the tow truck: 34 a. Class A Tow Truck $ 25,000; b. Class B Tow Truck $ 50,000; c. Class C Tow Truck $100,000; and d. Class D Tow Truck $100,000. 3. A combined single limit policy with limits in the amount of $1,000,000 will be considered equivalent to the required minimum limits; and 4. All such insurance shall be primary insurance and shall name the CITY as an additional named insured. 5. Current certificates of insurance and endorsements for any and all insurance required by CITY respecting automobile liability insurance pursuant to the AGREEMENT shall be submitted to CITY prior to award of the AGREEMENT unless such certificates and endorsements are already on file with CITY. d. Worker's Compensation: 1. OPE- A TOR shall procure and maintain, at its sole expense, Worker's Compensation Insurance in such amounts as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both OPE- TOR and CITY against any injuries or occupational diseases happening to any worker employed by OPE- TOR in the course of carrying out this AGREEMENT. 35 36