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HomeMy WebLinkAboutContract 0895-1 4q5- 1 VEHICLE TOW SERVICE FRANCHISE AGREEMENT BY AND BETWEEN THE CITY OF CATHEDRAL CITY AND South West Towing Inc. THIS VEHICLE TOW SERVICE AGREEMENT ("AGREEMENT") is made and entered into this _15th day of _January, 2014 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 _South West Towing Inc., a corporation, hereinafter referred to as "CONTRACTOR." WHEREAS, CITY desires two (2) 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, CONTRACTOR; and WHEREAS, based on CONTRACTOR's qualifications and experience, it was determined by CITY that CONTRACTOR is "uniquely" qualified to perform the services described in this AGREEMENT; and WHEREAS, on January 15, 2014, 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 CONTRACTOR 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 CONTRACTOR on a rotation/alternate basis between CONTRACTOR and an additional vehicle towing company currently servicing CITY. 1 Section 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 "CONTRACTOR" shall refer to South West Towing, Inc. 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 CONTRACTOR. 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 his authorized designee. G. The term "VEHICLE CODE" shall refer to the State of California Vehicle Code. Section 2. TERM OF 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. CITY shall have the right, at its sole discretion, to exercise an option to renew the AGREEMENT for two (2) additional three (3) year periods or portions thereof by providing CONTRACTOR with a notice to renew within a period of at least thirty (30) days and not greater than sixty (60) days prior to the date on which the term of the AGREEMENT, as may be extended, expires. B. In the event CITY exercises its option to renew this AGREEMENT for an additional three (3) year period or a portion thereof, 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 5 herein. Any and all proposed adjustments in fees, rates, and service charges must be approved by the CITY's City Council before CITY exercises its option to renew this AGREEMENT. Section 3. FEES PAYABLE TO CITY 2 Section 3. FEES PAYABLE TO CITY A. CONTRACTOR hereby agrees to pay to CITY that amount of fees in accordance with VEHICLE CODE 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. The total amount of franchise fees that each CONTRACTOR shall pay to CITY in advance during the term of the AGREEMENT is the amount of Thirty Four Thousand, Five Hundred Twenty Six Dollars and Fifty Cents ($34,526.50) for the first year of this AGREEMENT which amount shall increase by 3% in Year 2 and 3% in Year 3. The parties acknowledge that the above amount, as adjusted, represents a reasonable estimate of "the amount necessary to reimburse the public entity for its actual and reasonable costs incurred in connection with the towing program" for each annual period. In addition, for vehicles impounded pursuant to VEHICLE CODE Sections 14602.6 and 14607.6, CONTRACTOR shall pay to CITY on a monthly basis a total amount of Three Hundred and Twenty-Five Dollars ($325.00) per vehicle which represents a reasonable estimate of the actual and reasonable costs incurred by CITY with regard to vehicles impounded or forfeited pursuant to VEHICLE CODE Sections 14602.6 and 14607.6. The parties agree that such amounts are reasonable estimates. 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. C. Payment of the total amount of franchise fees due to CITY by CONTRACTOR for each term of the AGREEMENT shall be made on an annual basis with the initial annual payment due within ten (10) days after execution of this AGREEMENT and annually thereafter within thirty (30) days prior to the expiration of the annual period during the term of the AGREEMENT, 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. D. 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 CONTRACTOR for the actual tow and/or storage 3 of any vehicles. With regard to vehicles impounded pursuant to VEHICLE CODE Sections 14602.6 and 14607.6, the actual source of storage fee payments shall have no bearing on CONTRACTOR's duty to pay CITY under this AGREEMENT and shall include proceeds that CONTRACTOR may receive from an auction or other sale of a forfeited vehicle. CONTRACTOR may prorate payment to CITY to reflect 1/3 or 33% of total proceeds of sale less the cost of the CONTRACTOR tow fee and lien fee as stipulated in CONTRACTOR awarded proposal up to $985 for vehicles impounded pursuant to Vehicle Code section 14602.6 and 14607.6 and in no event shall payment to CITY exceed Three Hundred Twenty-Five Dollars ($325) per vehicle. Section 4. RATES CHARGED BY CONTRACTOR TO VEHICLE OWNERS A. Rates Charged: (1) The rates charged by CONTRACTOR to vehicle owners for tow and storage services are set forth in the "Rate Schedule" which is incorporated herein by this reference and attached hereto as Exhibit "B". (2) Even when tow and storage services are specifically requested by CITY, CONTRACTOR 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 CONTRACTOR hold CITY liable for any tow or storage services incurred pursuant to and during the term of this AGREEMENT even when such services are requested by CITY. It is specifically acknowledged by CONTRACTOR that the vehicle owner shall be solely responsible for such charges. (3) The rates set forth in the "Rate Schedule" shall apply to CONTRACTOR'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 CONTRACTOR as set forth in Section 5 herein. (4) CONTRACTOR 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 5 herein. B. Posting of Rate Schedules: (1) CONTRACTOR shall post and maintain a sign or signs which have been approved by the CONTRACT ADMINISTRATOR in a 4 conspicuous place or places on CONTRACTOR's premises where owner re-claims his/her vehicle and in a location designated by the CONTRACT ADMINISTRATOR which gives notice of: a. The approved "Rate Schedule" for tow and storage services under the AGREEMENT as set forth in Exhibit "B"; b. The method of payment(s) which are acceptable by CONTRACTOR which include credit cards and U.S. currency; c. A written receipt shall be supplied by CONTRACTOR for the amount of payment received; d. The telephone number and address of the CONTRACT ADMINISTRATOR; and e. The address where a vehicle owner may address his/her complaints regarding CONTRACTOR's tow and/or storage services. Section 5. ADJUSTMENT OF RATES UPON EXERCISE OF OPTION A. Procedures for Adjustment of Rates: (1) In the event CITY desires to exercise its option or options to renew the AGREEMENT for two (3) year term(s) or a portion thereof and CONTRACTOR decides to adjust its rates for tow and storage services, CONTRACTOR shall perform the following: a. Provide CITY with thirty (30) days notification of its desire to adjust its rates prior to the date by which CITY must exercise its option to renew the AGREEMENT; b. Enter into good faith negotiations for the adjustment of its rates; c. If, after two (2) weeks from the date of CONTRACTOR's notice to CITY of its desire to adjust its rates, CITY and CONTRACTOR 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 d. If mediation between the parties is not successful, then 5 either one of the following shall occur: 1. The tow and storage service rates in effect prior to negotiations between the parties shall apply to the term of the AGREEMENT, or 2. The AGREEMENT shall be terminated by either party upon thirty (30) days written notification to the other party. (2) 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. Section 6. CONTRACTOR'S RESPONSIBILITIES: A. Compliance with Law: (1) CONTRACTOR shall have and maintain throughout the entire term of this Agreement a valid CITY business license and shall, at all times, keep himself or itself fully informed of and shall, at all times, be informed of and shall comply with all Federal, State and County laws, Municipal Code provisions, Ordinances and Regulations, and all VEHICLE CODE sections which are in force or become effective during the term of the AGREEMENT which, in any manner, affect tow services or the storage of vehicles. (2) CONTRACTOR acknowledges that, pursuant to Chapter 11.88 of the CITY Municipal Code, it is the public policy of the CITY that all persons be free from all forms of arbitrary discrimination, including discrimination based upon sex, marital status, race, color, religion, ancestry, national origin, physical disability, sexual orientation, gender identity and domestic partnership status and that it agrees that it will conduct all its business activities pursuant to this AGREEMENT in accordance with the CITY's nondiscriminatory policy. B. Personnel: (1) CONTRACTOR shall retain an adequate number of trained and properly licensed personnel assigned to perform the work described in this AGREEMENT in accordance with VEHICLE CODE Sections 12520 and 12804.9. 6 • (2) CONTRACTOR agrees to provide a copy of this AGREEMENT to each of CONTRACTOR'S employees and obtain each employee's signature on this AGREEMENT on the Acknowledgment form set forth below. ACKNOWLEDGMENT BY SIGNING THIS ACKNOWLEDGMENT, 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 (3) CONTRACTOR shall retain all employee-executed copies of this AGREEMENT and provide the same to the CITY upon request. (4) In the event CONTRACTOR fails for any reason to immediately terminate an employee who has violated the terms of this AGREEMENT, then CITY reserves the right to take CONTRACTOR out of rotation and request tow and/or storage services from the other tow services company specified on the Rotation List which will be provided to CONTRACTOR by CITY at time of execution of this AGREEMENT. (5) CONTRACTOR and its tow truck drivers shall participate in the California Department of Motor Vehicles ("DMV") Employer Pull Notice ("EPN") Program. CONTRACTOR shall provide CITY with a current list of tow truck 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 within 30 days of hire. (6) CONTRACTOR shall make a written report to the POLICE DEPARTMENT within five (5) business days of any tow truck operator who is arrested and charged with any crime involving a stolen vehicle, stolen property, violence, drugs, fraud related to the towing business, or misdemeanor or felony driving while under the influence of alcohol or drugs, or the crimes listed in Vehicle Code Section 13377. In addition to making such a written report, CONTRACTOR shall immediately suspend the arrested and 7 charged tow truck operator from duties under this AGREEMENT pending the disposition of the criminal case. CONTRACTOR shall terminate and shall not employ in the performance of services pursuant to this AGREEMENT any tow truck operator convicted of a crime listed in this provision. (7) CONTRACTOR tow truck operators shall maintain acceptable standards of dress, including uniforms, and cleanliness while on duty in the community. (8) CONTRACTOR tow truck operators shall fully cooperate with and abide by the instructions of the CITY'S officers. (9) If any tow truck operator becomes ineligible to provide operator services under this AGREEMENT, the CONTRACTOR shall immediately notify the CITY in writing of such ineligibility and the reason(s) for same. (10) CONTRACTOR 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. C. Notice to Vehicle Owners and/or Department of Justice (1) CONTRACTOR shall notify the registered or legal owner of all vehicles towed and/or stored pursuant to this AGREEMENT and in accordance with all relevant provisions set forth in the VEHICLE CODE. (2) If the registered or legal owner of a vehicle is unable to be located by CONTRACTOR, then CONTRACTOR shall notify the Department of Justice in accordance with all relevant provisions set forth in the VEHICLE CODE. (3) It shall be CONTRACTOR's sole and exclusive responsibility to notify each and every owner of vehicles towed and/or stored pursuant to this AGREEMENT of the costs incurred from its services and payable by the vehicle owner. D. Lien Sales: (1) In the event a vehicle is not claimed by its owner after CONTRACTOR duly notifies the registered or legal owner pursuant 8 to the relevant provisions set forth in the VEHICLE CODE, CONTRACTOR shall be able to facilitate or conduct a lien sale pursuant to VEHICLE CODE Sections 22851 et seq. (2) Any and all lien sales performed by CONTRACTOR shall be done in strict compliance with all applicable laws. (3) CONTRACTOR shall hold CITY harmless from any and all liability arising out of any lien sale that CONTRACTOR facilitates or conducts. E. Towing Operations: (1) Scope of Responsibility: It shall be CONTRACTOR's responsibility to perform the following at no cost to CITY: a. Tow and store vehicles as requested by CITY including, but not limited to, the following: 1. Vehicles taken into custody by the POLICE DEPARTMENT; 2. Any and all vehicles requested to be towed and/or stored by the POLICE DEPARTMENT or the CODE COMPLIANCE DEPARTMENT including CITY owned vehicles up to two hundred (200) miles round-trip beginning at the departure location of the tow truck; 3. 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; 4. Vehicles seized and impounded pursuant to VEHICLE CODE Sections 14602.6 and 14607.6; and 5. Vehicles requested to be towed and/or stored pursuant to CITY's Vehicle Abatement Program as more fully described below. b. Remove all debris resulting from vehicle accidents, including 9 sweeping; c. 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 d. Perform all requested and necessary towing, battery jump start, and tire change services on City-owned vehicles at the City's request. (2) Response Time: a. CONTRACTOR shall respond immediately and at any and all times to requests for tow services of vehicles when such requests for tow services are made by the POLICE DEPARTMENT or CODE COMPLIANCE DEPARTMENT. b. The time period within which CONTRACTOR shall respond to requests for service by the POLICE DEPARTMENT or CODE COMPLIANCE DEPARTMENT by providing a tow vehicle at the response location shall be not greater than fifteen (15) minutes from the time of such requests. c. Upon receiving requests for tow service by the POLICE DEPARTMENT or CODE COMPLIANCE DEPARTMENT, CONTRACTOR shall record the time such requests are made and the time at which a tow vehicle is dispatched and maintain such record for at least six (6) months. d. In the event CONTRACTOR is unable to respond to a request by the POLICE DEPARTMENT or CODE COMPLIANCE DEPARTMENT within the fifteen (15) minute time period, CONTRACTOR or its dispatcher shall notify the individual requesting the tow service and inform him/her that CONTRACTOR is unable to respond timely to the request and provide the reason therefor and an estimated time for arrival. e. If CONTRACTOR is unable to respond within the fifteen (15) minute time period due to conditions beyond its control, CITY shall have the right to request tow services from another tow company specified on the rotation list. If CONTRACTOR is unable to respond within the fifteen (15) 10 minute time period due to any other reason, CITY shall have the right at its sole option to eliminate CONTRACTOR from the Rotation List until such time as CONTRACTOR notifies the CONTRACT ADMINISTRATOR that it is able to respond timely to CITY's tow service requests. f. In the event CONTRACTOR receives more than one (1) tow service request from either the POLICE DEPARTMENT or the CODE COMPLIANCE DEPARTMENT within the same time period, CONTRACTOR shall respond to the first request then respond to the second request unless the second request involves a vehicle accident where the disabled vehicles are interrupting the flow of traffic or poses a threat to the safety of others. (3) Inventory: a. A detailed written inventory of all personal property in any and all vehicles towed and/or stored and/or impounded by CONTRACTOR shall be completed by the POLICE DEPARTMENT or CODE COMPLIANCE DEPARTMENT or their employees, agents, assignees, or designees prior to the time of towing and/or storing the vehicle by the CONTRACTOR. The towing operator of CONTRACTOR shall complete and sign the appropriate section of said inventory form. A copy of the fully completed inventory form shall be given to the towing operator employed by CONTRACTOR who shall in turn give it to CONTRACTOR who shall retain it for as long as the vehicle is in CONTRACTOR's possession and control. b. Under no circumstances may a vehicle and/or personal property located in a vehicle be released by CONTRACTOR to anyone without the express written permission from the POLICE DEPARTMENT and/or the CODE COMPLIANCE DEPARTMENT. Notwithstanding this requirement, CONTRACTOR may allow such property to be released without such express written permission to the registered vehicle owner only. In such cases, CONTRACTOR shall be required to maintain an inventory of all items removed. c. If at any time an item of personal property is removed from a stored vehicle and placed in another location, CONTRACTOR shall prepare a receipt of said item, place a copy of said receipt in the stored vehicle, and provide a copy 11 of said receipt to the POLICE DEPARTMENT and/or the CODE COMPLIANCE DEPARTMENT. d. CONTRACTOR agrees to indemnify and hold CITY harmless from any damage to vehicles and/or loss or damage to personal property located inside the vehicles during CONTRACTOR's custody and possession of said vehicles. F. Storage Operations: (1) Scope of Responsibility: a. CONTRACTOR shall be responsible for all vehicles and their contents stored by CONTRACTOR including, but not limited to, personal property and vehicle accessories and equipment. CONTRACTOR shall be responsible for protecting these items against loss or damage from fire, theft, weather or any other causes. b. CONTRACTOR shall provide insurance coverage for any damage or loss to vehicles or personal property located inside any vehicles for the time period within which CONTRACTOR has possession of said vehicles. c. All vehicles taken into custody and stored by CONTRACTOR shall be stored without charge or cost to the CITY including those vehicles owned by CITY. d. Should any vehicles towed and/or stored by CONTRACTOR at the request of the POLICE DEPARTMENT or the CODE COMPLIANCE DEPARTMENT appear suspicious due to altered license plates or vehicle identification numbers, CONTRACTOR shall immediately upon tow or storage advise the POLICE DEPARTMENT of the suspicious vehicles. e. CONTRACTOR shall not permit any unauthorized person(s) into the area in which vehicles, which are towed or stored pursuant to this AGREEMENT, are kept. CONTRACTOR shall be fully and exclusively responsible for any items missing from these stored vehicles and for any consequences resulting from the entrance of any individual not authorized by CONTRACTOR to enter into said storage area. 12 f. CONTRACTOR shall take all actions and precautions necessary to protect all vehicles and their components such as their engines, trunks, and interior areas, from natural elements by closing the windows, doors, trunk lids, hoods, and, if necessary, covering the vehicle or parts thereof exposed to the weather with plastic, canvas, or other waterproof covering. g. CONTRACTOR shall park all stored and/or impounded vehicles in such a manner so as to prevent any damage to them during the movement or the parking of other vehicles. h. In the event of loss or damage to a stored vehicle, its accessories and equipment, or personal property contained in the vehicle while said vehicle is in the custody of CONTRACTOR, CONTRACTOR and not CITY shall be solely and exclusively responsible to the registered or legal owner for any and all losses and/or damage. Personal property contained in vehicles stored by CONTRACTOR shall not be disposed of to defray any charges for the towing or storage of said vehicles. In the event the owner of said vehicle fails to contact CONTRACTOR within thirty (30) days after the date of notice to the vehicle owner of impound or storage in accordance with the provisions of the VEHICLE CODE, the vehicle, its accessories and equipment, and personal property shall be disposed of in accordance with all State, County, and Municipal regulatory requirements. j. CONTRACTOR shall comply with the requirement set forth in VEHICLE CODE Section 10652 regarding the reporting of stored vehicles in excess of thirty (30) days to the Department of Justice. k. Pursuant to a request by the vehicle owner(s) or his/her authorized representative for release of the vehicle and/or the owner(s) personal property and upon the express written consent of such release by the POLICE DEPARTMENT and/or the CODE COMPLIANCE DEPARTMENT, CONTRACTOR shall release the vehicle and/or the owner(s) personal property at CONTRACTOR's primary storage facility during normal business hours which are between the hours of 8:00 a.m. to 5:00 p.m., Mondays through Fridays, 13 except holidays. Said release shall be conditioned upon the showing of proof of proper identification and authority by the owner or his/her designated representative. The removal of personal property items only from a stored vehicle should be released pursuant to this provision without reference to any costs or charges pending because of the tow or storage of said vehicle. Should the 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 CONTRACTOR on the owner or his/her authorized representative in the amount of Eight Five Dollars ($85.00). With regard to any and all vehicles impounded and stored by CONTRACTOR as evidence of a crime or which are involved in a pending investigation, CONTRACTOR shall take all reasonable steps to safeguard and protect the vehicle and all of its contents and to take all reasonable precautions required by the POLICE DEPARTMENT to avoid damage to any evidence such as fingerprints or stains contained in or on any and all stored vehicles and their parts. m. Vehicles taken into custody and stored by CONTRACTOR as evidence of a crime or which are involved in a pending investigation shall be locked securely and stored in a covered area separate from all other stored vehicles and which is protected against entry by unauthorized persons. CONTRACTOR shall be fully and exclusively responsible for any items missing from these stored vehicles and for the entrance of any individual not authorized by CONTRACTOR to enter into said storage area. (2) Storage Facilities: a. All vehicles impounded or taken into custody by CITY must be stored by CONTRACTOR 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 this AGREEMENT. In the event said fences or walls are damaged in any way, 14 CONTRACTOR 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. b. 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. c. The CONTRACT ADMINISTRATOR or his designee reserves the right to inspect CONTRACTOR's vehicle storage facility at its sole discretion and at any time without notice to CONTRACTOR to ensure that CONTRACTOR maintains its facility in compliance with the requirements set forth herein. d. CONTRACTOR's storage facility shall comply with all zoning and other ordinance requirements of CITY. e. CONTRACTOR shall provide a primary storage site within the jurisdictional limits of the CITY that shall provide enough space to maintain a capacity of one hundred (100) vehicles outside on a level and unpaved surface. (3) Storage Facility Hours of Operation: a. CONTRACTOR's storage facility shall be open and supervised from the hours of 8:00 a.m. to 5:00 p.m., Mondays through Fridays, except holidays, and shall have a responsible person available on an on-call basis twenty four (24) hours per day, seven (7) days per week who is available to release vehicles or personal property to the rightful owner or the owner's representative. G. Location and Maintenance of Premises: (1) CONTRACTOR shall maintain and provide a place of business and primary storage facility within the established boundaries of CITY, for vehicles stored pursuant to this AGREEMENT. (2) The primary storage facility shall be located at the same location as the business address. CONTRACTOR shall provide each and every address of any vehicle storage facilities that are located separate from CONTRACTOR'S primary place of business, and the distance from the primary place of business. The primary storage 15 facility must be located within the City limits and vehicles towed in Cathedral City have to be stored in Cathedral City. (3) All landscaped areas of CONTRACTOR's premises shall be maintained in a neat and orderly condition with the landscape in a healthy state and free of weeds and litter. (4) The unpaved storage space shall be kept free of weeds, litter, debris, and any other materials, substances, or any automotive parts unless said parts are stored as evidence for the POLICE DEPARTMENT. CONTRACTOR shall comply with all CITY Municipal Codes and avoid contamination of soil with gasoline, oil, grease, or any other contaminating substance as specified by Federal, State, and County or Municipal regulations.. (5) All paved surface areas of CONTRACTOR's premises shall be in good repair without broken parts, holes, potholes, or litter. Any premises used for the storage of vehicles located within the jurisdictional boundaries of CITY shall be landscaped according to CITY rules and regulations. H. Abandoned Vehicle Abatement Program: (1) Under the terms of this AGREEMENT, CONTRACTOR will be responsible for providing the services of a driver and a tow truck for the removal of abandoned vehicles at such time they are requested by CITY. It is anticipated that this service will be required at least one (1) day each week but not more than two (2) days each week for a maximum of eight (8) hours per day. (2) CONTRACTOR shall not remove any abandoned vehicle without first being instructed to do so by an authorized representative of the POLICE DEPARTMENT or the CODE COMPLIANCE DEPARTMENT. (3) Vehicles removed by CONTRACTOR pursuant to the Abandoned Vehicle Abatement Program shall be taken to a scrap yard or an auto dismantling yard and shall not thereafter be reconstructed or made operable. The payment for the salvage value for each removed abandoned vehicle shall be retained by CONTRACTOR as total and final payment for CONTRACTOR's costs and services in connection with the removal of said vehicle and CONTRACTOR shall receive no other compensation from the sale of salvaged or abandoned vehicles. 16 (4) CITY shall indemnify, defend and hold CONTRACTOR harmless from any and all liability, claims, damages or demands arising out of and in connection with CITY's designation of vehicles to be towed pursuant to the Abandoned Vehicle Abatement Program or the willful misconduct of CITY, its officers or employees pursuant to CITY's designation of vehicles to be towed pursuant to the Abandoned Vehicle Abatement Program. I. Delegate or Assign: (1) CONTRACTOR shall give full attention to the faithful performance of the terms of this AGREEMENT. CONTRACTOR shall not assign or delegate any or all of the duties and responsibilities set forth in this AGREEMENT without the express and written prior approval by the City Council. (2) CONTRACTOR shall not, either legally or equitably, assign any of the monies payable to CONTRACTOR or CONTRACTOR's claims thereto under this AGREEMENT unless CONTRACTOR obtains prior written approval from City Council. (3) Nothing contained in this AGREEMENT shall create any contractual relationship between any subcontractor and CITY. J. Termination of Agreement: (1) Default: a. Should CONTRACTOR 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 this AGREEMENT at the prices indicated and at the times and places specified, failing to make any payments specified in this AGREEMENT for any period of time, or failure of any of CONTRACTOR's insurers to provide to CITY and the POLICE DEPARTMENT a Notice of Cancellation of any Insurance Policy required to be in effect pursuant to this AGREEMENT, CONTRACTOR shall be considered in default and in breach of this AGREEMENT on the date of written notification by CITY. b. Should CONTRACTOR be considered in default and in breach of this AGREEMENT, CONTRACTOR shall have two (2) weeks to remedy its default and breach. If, after two (2) 17 weeks, CONTRACTOR fails to remedy its default and breach, CITY or its designee may at its sole discretion after seven (7) days written notification to CONTRACTOR terminate this 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 CONTRACTOR. (2) Termination in Best Interest of CITY: a. CITY or its designee may terminate this AGREEMENT pursuant to the approval of the City Council at any such time CITY or its designee determines that such termination is in the best interest of the CITY. b. Termination pursuant to this Section shall be performed without liability on behalf of CITY and without a refund of any fees paid notwithstanding such termination. So long as requested by CITY, CONTRACTOR shall not charge CITY for continuing to hold vehicles and/or release vehicles in its possession pursuant to this AGREEMENT after termination of this AGREEMENT. c. Termination pursuant to this Section shall be effected after delivery to CONTRACTOR of written notification specifying the date such termination becomes effective. Written notice of termination shall be given at least thirty (30) days prior to the specified termination date. (3) Failure of Mediation to Result in an Agreement: a. As set forth in Section 5(A)(1)(d)(2) herein, should mediation regarding a fee dispute fail to result in an agreement between the parties within thirty (30) days from the date mediation began, then either party or their designees shall terminate this AGREEMENT upon at least thirty (30) days written notification to the other party. (4) Failure to Maintain Adequate Records: a. In the event CONTRACTOR fails to maintain the records required by this AGREEMENT and set forth in Section 6(L) herein including, but not limited to, all gross receipts immediately available for audit, such failure shall be cause 18 for immediate termination of this entire AGREEMENT by CITY without notice. K. Equipment, Materials and Services: (1) CONTRACTOR shall either possess or be able to obtain the services or use of a Class "D" tow truck at all times during the term of this AGREEMENT. (2) In no case shall any tow vehicle dispatched by CONTRACTOR be rated at less than one ton capacity. CONTRACTOR shall dispatch tow vehicles of a sufficient rated capacity in order to handle all vehicle types and sizes referenced on the "Rate Schedule." Each vehicle shall be maintained in compliance with the provisions of Sections 24605, 25253, 27700 and 27907 of the VEHICLE CODE. (3) All equipment, materials, or services furnished under this AGREEMENT shall be in complete compliance with presently existing and enforceable Federal, State, County and local Municipal regulations, standards, laws, ordinances, and statutes in any manner affecting performance and pricing under this AGREEMENT. (4) All equipment, materials, or services furnished under this AGREEMENT shall be in good working order and must meet or exceed specification requirements and current established noise limitations for specific equipment, materials, or services being furnished under this AGREEMENT. (5) CONTRACTOR shall arrange with the POLICE DEPARTMENT for the inspection of any and all new or replaced tow vehicles prior to placing said vehicles in service. L. Accounting, Audits and Access and Retention of Records: (1) CONTRACTOR shall maintain at its primary place of business any records of all services furnished under this AGREEMENT including any books, documents, papers, invoices, or other records setting forth the description of vehicles, nature of service, and time and location of tow and/or storage service calls. Such records may be inspected at any time during normal business hours by CITY. In the event CITY requests copies of such records, CONTRACTOR shall furnish the records to CITY within five (5) working days of such request. 19 (2) CONTRACTOR shall also keep accurate records of all gross receipts earned as a result of the business conducted under this AGREEMENT. (3) CONTRACTOR shall provide receipts issued to all customers and maintain all records relating to its operations including, but not limited to, receipt slips, cash register tapes, invoices or other pertinent information. All charges, fees, and receipts shall be recorded by means of cash registers which shall be equipped with devices which lock in the totals. CONTRACTOR shall read and record the totals at the beginning and end of each calendar day. Such records must be available at all times and shall be subject to inspection, review, and audit during the entire term of this AGREEMENT by the CONTRACT ADMINISTRATOR, the CITY Finance Director, or his/her representative. Such audits may be conducted at the discretion of the CONTRACT ADMINISTRATOR or the Finance Director either unannounced or by appointment without the necessity of subpoena. CONTRACTOR's failure to maintain the records required by this AGREEMENT including, but not limited to, all gross receipts immediately available for audit shall be cause for immediate termination of this entire AGREEMENT by CITY without notice. (4) "Gross receipts" is defined as all revenues received from tow and related services, storage, lien sales, salvage sales of abandoned or unclaimed vehicles, plus incidental receipts earned by CONTRACTOR as a result of business conducted under this AGREEMENT. All charges shown on invoices and other records are to be explicit in detail thereby explaining the reason for the amount specified therein. (5) At the request of the POLICE DEPARTMENT, CONTRACTOR shall furnish to the POLICE DEPARTMENT, within five (5) working days of such request, a written list of all vehicles that have been towed by the CONTRACTOR under this AGREEMENT. Such list shall indicate the police case number, the date of tow, the storage location of each vehicle if applicable, dates of storage if applicable, and the vehicle make, model, license number, vehicle identification number, and the name of the owner if determined. (6) On a monthly basis, CONTRACTOR shall provide to CITY a written summary of all vehicles stored pursuant to this AGREEMENT including, but not limited to, the police case number, the date of tow, the storage location of each vehicle, dates of storage, and the vehicle make, model, license number, vehicle identification number, 20 and the name of the owner if determined. (7) CONTRACTOR shall, within twenty four (24) hours of receipt of complaints, submit to the POLICE DEPARTMENT written notification of any complaints made to CONTRACTOR regarding the performance of its tow and storage services, or concerning the rates, charges or fees, or any claims or legal actions filed, delivered, or served upon or instituted against CONTRACTOR or any of its agents, officers or employees. (8) CONTRACTOR shall maintain all records referenced herein for at least three (3) years after the final payment and all other pending matters are closed. Nothing in this requirement shall be construed to diminish, in any way, CITY's right to conduct an audit pursuant to this Section. M. Faithful Performance Bond: (1) CONTRACTOR shall furnish a Performance Bond substantially in the form as that attached hereto and incorporated herein by this reference as Exhibit "C," in the amount of Thirty Thousand Dollars ($30,000), or equivalent security in such form as is acceptable to CITY. (2) CONTRACTOR shall maintain the validity and enforceability of the Performance Bond or other security for the duration of this 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. (3) Any disputes arising over the performance and/or cancellation of this AGREEMENT by the CITY is appealable to the CONTRACT ADMINISTRATOR by written notice of appeal from CONTRACTOR. N. Insurance Requirements: (1) CONTRACTOR, at CONTRACTOR'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: a. CONTRACTOR shall maintain worker's compensation insurance 21 and employer's liability insurance for its employees in accordance with the laws of the State of California. In addition, CONTRACTOR shall require each subcontractor, if any, to similarly maintain worker's compensation insurance and employer's liability insurance in accordance with the laws of the State of California for all of the subcontractor's employees. If any class of employees employed by CONTRACTOR pursuant to this AGREEMENT is not protected by the California State Worker's Compensation Law, CONTRACTOR shall provide adequate insurance for the protection of such employees to the satisfaction of the CITY. This provision shall not apply if CONTRACTOR has no employees performing work under this AGREEMENT. CONTRACTOR agrees to waive its statutory immunity under any worker's compensation or similar statute, as respecting the CITY, and to require any and all subcontractors and any other person or entity involved in the services required in this AGREEMENT to do the same. b. CONTRACTOR shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) in the aggregate for bodily injury, personal injury and property damage. CONTRACTOR shall maintain insurance on an occurrence, not claims-made basis. CONTRACTOR acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an "offense" while bodily injury and property damage coverage shall be triggered by an "occurrence" during the policy period. c. CONTRACTOR shall maintain automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the CONTRACTOR arising out or of in connection with the work to be performed under this AGREEMENT, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence. 22 (2) Unless otherwise specified hereunder, each insurance policy required herein shall be with insurers possessing a Best's rating of no less than A:VII and shall be endorsed with the following specific language: a. Except for worker's compensation, errors and omissions, professional liability or directors and officers coverage, the CITY, its elected or appointed officers, employees, agents and volunteers are to be covered as additional insured's with respect to liability arising out of work performed by or on behalf of the CONTRACTOR, including materials, parts or equipment furnished in connection with such work or operations. b. This policy shall be considered primary insurance as respects the CITY, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the CITY, including any self-insured retention the CITY may have shall be considered excess insurance only and shall not contribute with it. c. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. d. The insurer waives all rights of subrogation against the CITY, its elected or appointed officials, officers, employees or agents. e. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the CITY, its elected or appointed officers, officials, employees, agents or volunteers. f. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the CITY. (3) Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the CITY's option, CONTRACTOR shall demonstrate financial capability for payment of such deductibles or self- insured retentions. (4) CONTRACTOR shall provide certificates of insurance with original endorsements to the CITY as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the CITY on or before commencement of performance of this AGREEMENT. Current certification of insurance shall be kept on file with the CITY at all times during the term of this AGREEMENT. (5) Provided the CITY gives its written consent for any persons other than 23 CONTRACTOR to perform any part of the services required in this AGREEMENT, CONTRACTOR agrees to require that all parties with whom CONTRACTOR enters into contracts or whom CONTRACTOR hires or retains pursuant to or in any way related to the performance of this AGREEMENT, provide the insurance coverage required herein, at minimum, and name as additional insured's the parties to this AGREEMENT. CONTRACTOR agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. (6) In the event this AGREEMENT is terminated for any reason prior to the completion of all obligations and requirements of this AGREEMENT, CONTRACTOR 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. (7) CONTRACTOR 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 subcontractors or others involved in any way with the performance of services, to the extent such is permissible under this AGREEMENT, CONTRACTOR 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 contractors. O. Hold Harmless/Indemnification: (1) CONTRACTOR shall defend, indemnify and hold harmless CITY, its officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect, (including any and all costs and expenses in connection therewith), arising out of the performance of this AGREEMENT, except for any such claim arising out of the sole negligence or willful misconduct of CITY, its officers, agents, employees or volunteers. (2) CITY does not, and shall not; waive any rights that it may have against CONTRACTOR under this section because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this AGREEMENT. The hold harmless, indemnification and duty to defend provisions of this section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. 24 P. Independent Contractor: (1) It is understood and agreed that CONTRACTOR is, and at all times shall be, an independent contractor and nothing contained herein shall be construed as making CONTRACTOR, or any individual whose compensation for services is paid by CONTRACTOR, an agent or employee of CITY, or authorizing CONTRACTOR to create or assume any obligation or liability for or on behalf of CITY. (2) As an independent contractor pursuant to the terms of this AGREEMENT, CONTRACTOR shall assume all legal and financial responsibility for taxes, FICA, requirement of overtime, and all other factors relating to an independent contractor, and CONTRACTOR hereby agrees to indemnify, defend, save, and hold CITY, its agents, assignees, and employees harmless from any and all loss, costs including attorney fees, and damages of any kind relating to such matters. Section 7: AUTHORITY OF CITY A. Two Company Alternate Call Basis: (1) CITY shall request towing service by CONTRACTOR on a rotation/alternate basis between CONTRACTOR and one other towing company. CITY, at its sole discretion, reserves the right to place a request for towing or storage service out of rotation under any one of the following circumstances: a. At the sole discretion of the CONTRACT ADMINISTRATOR for CONTRACTOR's failure to perform or in the CONTRACT ADMINISTRATOR's opinion that CONTRACTOR is unable to perform; b. Dissatisfaction of performance by a CONTRACTOR; c. There is a multiple vehicle accident which exceeds the capacity of CONTRACTOR at such time; d. CONTRACTOR is unable to respond in a timely manner as set forth in Section 6(E)(2)(e) herein; e. Failure to make payments due to CITY within two (2) weeks after CITY requests payments; f. Failure of CONTRACTOR to remedy its default and breach after two (2) weeks notice to do so in accordance with Section 6(J)(1)(b) 25 herein; or g. Failure of CONTRACTOR to remove an employee of CONTRACTOR after CITY requests the removal of said employee from servicing CITY's tow and/or storage requests as set forth herein in Section 6(B)(2) and (3). h. If the CITY determines at its sole discretion that a human error has occurred, which results in detriment to CONTRACTOR, the CITY may alter the rotation in a reasonable manner in order to achieve an equitable result. B. Retention of Documents by CITY: (1) All information, documents, plans, drawings, records, or similar materials submitted to CITY in response to the Request for Proposals or as a part of this complete AGREEMENT are and shall remain irrevocably the property of CITY. C. Contract Performance: (1) Subject to the power and authority of CITY, as provided by law and in accordance with this AGREEMENT, CITY shall in all cases determine the quantity, quality, and acceptability of the services provided under this AGREEMENT. CITY shall decide any questions which may arise relative to the fulfillment of this AGREEMENT or to the obligations of the CONTRACTOR hereunder. Section 8: RELATIONSHIP OF PARTIES A. It is understood and agreed that nothing in this AGREEMENT is intended, nor should be construed in any way to create or to establish the relationship of co- partners or lessor-lessee between the parties hereto. CONTRACTOR does not receive any leasehold estate or other right of possession pursuant to this AGREEMENT. Section 9: NON-LIABILITY OF CONTRACTOR A. If performance of this AGREEMENT shall be delayed or suspended and if such failure arises out of causes beyond the control of and without fault or negligence of CONTRACTOR, CONTRACTOR shall notify CITY in writing and within twenty- four (24) hours after the delay that said performance shall be delayed or suspended. 26 B. Such causes of delay or suspension of performance by CONTRACTOR beyond CONTRACTOR's control as referenced in Section 6(E)(2)(e) herein may include, but are not limited to: acts of God; war; acts of the public enemy; acts of any governmental entity in its sovereign or contractual capacity; fires; floods; epidemics; strikes; and unusually severe weather. C. CITY shall ascertain the facts and extent of such failure and, if CITY determines that the failure was occasioned by excusable causes, CITY will not claim that CONTRACTOR is in default and that this AGREEMENT has been breached. Section 10: NOTICES A. Any and all notices to be provided pursuant to this AGREEMENT shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid. Section 11: ENTIRE AGREEMENT A. This AGREEMENT supersedes any and all other agreements, either oral or written, between the CITY and CONTRACTOR 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. Section 12: 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 prepared. Section 13: 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 27 sentences, clauses, paragraphs or sections contained herein. Section 14: 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. Section 15: 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. Section 16: 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. Section 17: 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. Section 18: COUNTERPARTS A. This AGREEMENT may be executed in several counterparts. [THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK] 28 IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed as of the dates written below. CITY 0 CATHEDRAL CITY CONTRACTOR& A ,--- ,,..--e , / _,Lcille Y ''P' een J. D = -osa, Mayor Its: RZ.e,sio6 Jr (Title) ATTES . �_` 4r, Gary Howell, City/ lerk APPROVED AS TO FORM: Charles R. Green, City Attorney P:\APPS\WPDATA\CATH\0004 Police Department\DOC\1042-Request for Proposals for Tow Services(08.08.13).doc 29 EXHIBIT "A" SUMMARY OF PROGRAM COSTS A) Facilities and Infrastructure (1) Building—2.5%of operating costs of$160,374 $4,009 (2) Information Systems Expense—4% of City's total Information Systems Expenditures ($666,353) $26,654 Total Incurred Facilities and Infrastructure costs $30,663 B) Professional Services (1) Legal Expense for contract, consulting and litigation 40 hours - @ $175.00 per hour $7,000 C) Personnel Costs—Administrative (Fully Benefitted per hour cost) Based on 900 Vehicles Towed in Fiscal Year (1) Police Officer—675 hours @ $72 $48,600 (2) Dispatcher—450 hours @ $52 $23,400 (3) Records Clerk—450 hours @ $49 $22,050 (4) Sergeants—75 hours @ $115 $8,625 (5) Chief of Police— 10 hours @ $173.00 $1,730 (6) Captains—60 hours @ $145 per hour $8,700 (7) Administrative Secretary—20 hours @ $67 $1.340 (8) Management Analyst—48 hours @ 63.60 $3,053 Total Incurred Administrative Personnel Costs $117,498 D) Materials and Supplies (1) Total incurred forms, supplies and postage costs $1,000 Summary of Incurred Costs 1) Facilities and Infrastructure $30,663 2) Professional Services $7,000 3) Personnel Costs Administrative $117,498 4) Materials and Supplies $1,000 Grand Total Incurred Costs $156,161 30 E) Revenue Received Annual Revenue Received for Storage and Impound Releases $87,108 and Lien Sales from Tow Contractors Incurred Costs of$156,161 —Revenue Received $87,108 = $69,053 Franchise Fee for two operators $69,053/2 = $34,526.50 F) 30 Day Impound Vehicles—Additional Incurred Costs 1) Additional Tow Hearing Expense—200 hearings at one hour per hearing for Lieutenant's salary and benefits $127 (fully benefitted per hour) $25,400 2) Mobile Data Computer System Expense— $120,000 per year at 33%vehicle Storage and impound related emphasis $39,600 3) Incurred cost per 30 day impound per year at 200 impounded vehicles $65,000 ($25,400 + $39,600) divided by 200 impounded vehicles results in a cost of$325 per vehicle impounded for 30 days. 31 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 and subject to Section 2(A) herein, and shall be applicable for the immediate three (3) period of this agreement. A. Basic Tow Rate: Class A Tow Truck $170 One hour minimum 1) The base rate per tow 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 remove 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, there shall be no charge to the City for towing services identified in Section 6 E, (1) a.2, any City owned vehicle located outside this area will be towed at the rate of$5.00 per mile outside the service area described in Section 6 E. (1) a.2. B. Heavy Duty Hourly Towing Rate: 1) Two Axel Category: Class B Tow Truck $250 One hour minimum a. The two (2) axel category 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 $350 One hour minimum a. The three (3) axel hourly rate shall apple to all towed vehicles with a rate capacity of thirty (30,000) pounds gross vehicle weight or more; and b. The hourly rate for all heavy duty towing (two and three axels) shall commence when the tow truck arrives on the tow scene and includes difficult removal of vehicles, up righting overturned vehicles, and the use of special equipment and preparation prior to towing. C. Charges for Related Services: 1) Lock Out, Tire Change, Jump Start: $85 loa a. The standard charge for opening locked vehicles, tire change and jump start is eighty-five dollars ($85) 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 eighty-five dollars ($85) for anyone desiring release of a vehicle at any time other than normal business hours. D. Storage: (Per Day) 1) Motor cycles, passenger cars and light duty trucks 20' or less $50 per day Inside Storage $80 per day 2) Truck more than 20' $80 per day Inside Storage $85 per day 1) The standard rate per vehicle for storage of automobiles or pick-up trucks commencing at the time of drop off at the storage facility shall be fifty dollars ($50) per twenty-four(24)hours period or any portion thereof; and 2) Standard rates for trucks that are more than 20' shall be sixty dollars ($60) per unit, twenty-four hour period or any portion thereof. E. Additional Conditions: 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 and 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. 33 Service Description Current Allowable Fee New Fee Tow-Passenger Vehicle $140 $170 Tow-Truck 2 axle(Medium Duty) $200 $250 Tow-Truck 3 axle (Heavy Duty) $239 $350 Special Duty Tow (off road, 4 X 4) $250 $250 Storage per day(Motor cycles, $39 $50 passengers cars, light duty trucks 20' or less) Truck more than 20' $60 $80 Trailer 30' or more $75 $80 Small Trailer(gardening) $39 $50 Motor Home 30' or less $39 $50 Motor Home 30' or more $50 $70 Lockout, tire changes,jump $70 $85 start Inside Storage up to 20' $65 $80 Inside Storage over 20' $75 $85 After Hours Release $75 $85 30 day impound fee collected $298 $325 For City 01/17/2014 11:19 3240820 SWT #7285 P.002 /007 • Bond No.:1000964784 Premium:$2,700.00 • Initial premium subject to adjustment • EXHIBIT"V' • based on final contract price • PERFORMANCE BOND • We, South West Towing,Inc. as. • Principal, and American Contractors Indemnity Company as. 'Surety,. Jointly and- , severally,firmly'bind ourselves, our heirs, representatives,successors:and assigns,a .set.forth herein,to-the City•of Cathedral City ('City) for payment of'the penal sum of Thirty Thousand U.S. Dollars ($30,000). City and Principal have entered into an agreement, ar are about to • enter into the agreement attached hereto and incorporated by reference; primarily for•servibe's• related to towing and storing vehicles within the Jurisdictional boundaries of the City Surety hethin approves of the terms•and conditions of said agreement and bind's itself to faithfully perform the obligations of Principal therein if Principal fails fo•so'perforrn.Surety acknowledges: that the agreement herein referenced shall be that document as executedby City'and Principal. THE CONDITION OF THIS OBLIGATION IS SUCH that if the Principal shall in-ail things stand to and abide by, and well and truly keep and perform all of the covenants; conditions, and provisions in said agreement, and any alteration thereof made as therein provided. on Principal's part to be kept and performed at the time and in the manner therein specified, and shall Indemnify and save harmless the Gib)and its"officials, directors, officers, employees and.. agents,.as therein stipulated,then this.obligation shall become null and.vofd; otherwise, it shall be and remain in full force and effect. Surety agrees that should it fail to take over and diligently perform the agreement upon Principal's default after notice and within the time specified In the agreement,,surety will promptly on demand deposit with,City such amount.as.City may reasonably estimate as the oast • of completing all of Prfndipars obligations. Surety's obligation for payment herein:shall Mend, notwithstanding•any controversy between"principal and City regarding Principal's failure?ender the agreement should be :conclusively presumed between the parties herein'to relieve;, as demanded, Surety's obligations herein and shall' be deemed proper 'payrrient as between Principal and Surety. Surety agrees that no change, extension of lime, alteration, Or addition to the terms Of the: agreement, orthe work to be.perfornied•there Under,.or any matte's•unknown to Surety which ' may affect:Surety's risk shelf•In any wise affect its obligation on this bond, and it does:thereby • waive na k%thereof. Principal and Surety agree.that if the City ls requiredxto'engage the services of an attorney In • connection with the enforcement of this bond, each shall pay City.Ss reasonable attorneys'fees and costs incurred;with•or without suit'in addition to the•above sum. Executed this 23rd day df• January . ,.2ot4i: • • • 3c 01/17/2014 11:20 3240820 SWT #7285 P.003 /007 Seal.of Corporation By �Z< • l" Autho ed - sentetive of Principal Title /�t�J//DFNT' BY Authorized Representative of Principal Title • ( Q a eibeAo4d • /& /-3o-11-/ (ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVES) • Any claims under this bond may be addressed to: (check one) Surety's agent for service of process in California: ) American Contractors Indemnity Company.. Surety Company Brakke-Schafnitz Insurance Brokers,Inc. 625 The City Drive South,Ste.130 Name Street Number 28202 Cabot Rd.,6th Floor Orange,CA 92868 • Street Number City and.State• Laguna Niguel,Ca 92677 (714)740-7000 City and Sfafe Telephone Number (949)365-5121 Telephone Number By Paul S.Dito: Attorney in Pact'or•other Representative (ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTA'T'IVE). • () Paul S.Dito CampanyWnf • • 625 The City Drive South,Ste.130 Street Number - APPROVED AS TO FORM: Oranje,CA 92868 City,and•$tate• (714)740-7000 General.Counsel Telephone Furnish the name,address and phone number of te.company agent as well as the surety company. Sureties must be authorized to do business in and have an agent for service of process in California and be on the accredited list of the United States Tre,asury•Department(their bonds win be limited to such amounts as would be acceptable to the Treasury Department), and otherwise meet the requirements of the applicable provisions ofthe•agreement. (NOTICE: No substitution pr revision.of•this bond'form shalt be.accepted,) • 36 • POWER OF ATTORNEY AMERICAN CONTRACTORS INDEMNITY COMPANY TEXAS BONDING COMPANY UNITED STATES SURETY COMPANY U.S.SPECIALTY INSURANCE COMPANY W•MWM WICAIY THESE PRESENTS: That ,American Contracts Ietnity-( y a California corporation,Texas - omlirwCcwarly an assumed name of American Contractors IndemnitynUnd=motes Surety Company, a Maryland -corporation and U.S. Specialty Insurance Company,a Texas corporation(collectively,the"Companies"),do by these presents make, constitute and appoint: Paul S.Dito,Ariel T.Heredia,Khoi Tran,Maricela Lares,or Angela Kim of Orange,California its true and-lawful Attorney(s)-in-f n i€ paracapacity if more than one is named above,with full parr > r - hereby conferred in its name,place a e x t e cknowledge and deliver any and all bonds,recognizances 5 undertakings or other instruments or contracts orsuretyship to include riders, amendments, and consents of surety, providing the bond penalty does not exceed *****Three Million***** Dollars ($ **3,000,000.00** ). This Power of Attorney shall expire without further action on December 08,2016.This Power of Attorney is graned under and by authority of-theJ'oNQwing resolutions adopted by the Boards of Directors of the Companie _= e e lh reYresident,any Vice*President,any Assistant Vice-President,any Secretarymany Assistant Secretary shall be and is hereby vested with full Kneandiulthceltrkeloint any one or more suitable persons as Attorney(s)-in-Fact to represerta act tearaitartikehalf of the Company subject to the following pro Attorney-in-Fact may be given full power and authority for and in the name of and on behalf of the Company,to execute,acknowledge and deliver,any and all bonds, recognizances, contracts, agreements or indemnity and other conditional or obligatory undertakings, including any and all consents for the release of retained percentages and/or final estimates on engineering and construction contracts,and any and all notices and documents canceling or terminating the Company's liability thereunder,and any such instruments so executed by any such Attorney-in-Fact shall be binding upon the Company as if signed by the President and sealed and effected- by the Corporate Secretary. Be it Resolved,that the signature of any au ceOind l Al ompany heretofore or hereafter affixed to any power of attorney orAaerfificatenAatA thereto b facsimile any power of attorn= y y po cy ce zettMcafe bearing facsimile signature or facsimile seal shall be valid and binding upon the Company raith M any bond or undertaking to which it is attached IN WITNESS WHEREOF,The Companies have caused this instrument to be signed and their corporate seals to be hereto affixed,this 10th day of December,2012. AMERICAN CONTRACTORS INDEMNITY COMPANY TEXAE-BO1 N11 COMPANY UNITED STATES SURETY COMPANY U.S.SPE€ M 1S 1NCECO ANY Corporate Seals �„ 1 NMI `,\\111F l,ryll// \11111II,I/II/ , yU.LTp�T y,, 8U ONDOC"', ty�nawan��,, =_`ai "tea.'® '�_ W ze r .l=_ =�i ap`z"a'' " ' .3tS'` Daniel P Aguilar,Vice Preset eat sy�'. ¢ :Sij•... •'lad 8:�'T''• ey e� •�'••...•S• ar, u ',��FW FII + * \. State of California County of Los Angeles SS: On 10th day of December,2012,before me,Vanessa Wright,a notary public,personally appeared Daniel P.Aguilar,Vice President of American Contractors Indemnity Company, Texas Bonding Company, United States Surety Company and U.S. Specialty Insurance Company who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowled to me that he executed the same in his authorized capacity, and that by is signature on the instrument the pa Its/ctti-enr upon behalf',of which the person(s)acted,executed the instrument= I certify under PENALTY OF PERJURY under the laws of the State of Calrniaat the foregoing paragraph is true and correct. WITNESS my hand and official seal. ) \ •tilts! Signature 1 CO gn (Seal) �. w, Comm. Dice tuts I, Jeannie Lee, Assistant Secretary c tr rs Indemnity Company, Texas Bonding Company, Una S es= rety Company and U.S.Specialty Insurance Company,do hereby certify that the above and foregoing is a true and correct-copy oT=Power of Attorney,executed by said Companies,which is still in full force and effect;furthermore,the resolutions of the Boards of Directors, set out in the Power of Attorney are in full force and effect. In-Witness Whereon have hereunto set my hand and affixed the seals of said aimputs a too A ales,California this 23ED day , 2014. NI 111 anl1111111 tCorporate Seals ``O N NIC MC,,,'%q;. sn'' c"e, jjt,, InCORPORA110 111-= 10' ,,. • � 4 ' iBond No 100964784 ". S Je annie Lee, s to nt Secretary-s� Agency No. KW FOF Ninlumn,,,,, Moo State of California ) CALIFORNIA ALL-PURPOSE County of Orange ) CERTIFICATE OF ACKNOWLEDGMENT -�' On 01-23-2014 before me, Angela K. Kim, Notary Public {here insert name and title of the officer) personally appeared Paul S. Dito who proved to me on the basis of satisfactory evidence to be the person(1t)whose name(X)is/Nre subscribed to the within instrument and acknowledged to me that he/icy executed the same in his/ iftt t authorized capacityO, and that by hisZifittVX signature%) on the instrument the person(, or the entity upon behalf of which the person%)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. ANGELA K. KIM ��,:,, WITNESS my hand and official seal. Commission#2012828 a ,�� . Z Notary Public-California Z z Orange County My Comm.Expires Mar 17,2017 Signature (Seal) OPTIONAL INFORMATION Although,the Information in this section is not required by law,it could prevent fraudulent removal and reattachment of this acknowledgment to an unauthorized document and may prove useful to persons relying on the attached document. Description of Attached Document Additional Information The preceding Certificate of Acknowledgment is attached to a document Method of signer Identification titled/for the purpose of BOND NO. 1000964784 Proved to me on the basis of satisfactory evidence: LO form(s)of identification 0 credible witness(es) Notarial event Is detailed in notary journal on: containing pages,and dated Page It Entry# The signer(s)capacity or authority is/are as: Notary contact: w __ ❑ Individual(s) Other la Attorney-in-Fact [1 Additional Signers) ❑ Signer(s)Thumbprint(s) ❑ Corporate Officer(s) Titles) _... ❑ ❑Guardian/Conservator ❑ Partner-Limited/General ❑Trustee(s) ❑Other: representing: AMERICAN CONTRACTORS INDEMNITY COMPANY Names)of Person(st or Entity(res)Signer is Representing Y v O Copyright 2007 Notary Rotary,Inc.925 29th 5t,Des Moines,IA 50312-3612 form ACK03> 10/07. To re-order,call toil-free 1-877-349-6588 or visit us on the Internet at http://wwwnotaryrotarycom CALIFORNIA ALL PURPOSE ACKNOWLEDGMENT State of California County of Riverside On January 3D , 2014, before me, Elvia Rodriguez, Notary Public, personally appeared: ‘126).- 0 Who proved to me on the basis of satisfactory evidence be the person igiwhose name,(s7is/aKe subscribed to the within instrument and acknowledged to me that he/she./hey executed the same in ha/her/their authorized capacity OK), and that by his/her4heir signature,(.5) on the instrument the person or the entity upon behalf of which the person,) 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. WITNESS my hand and official seal. ELYIA RQDRiIAtI Z 'j`f` COMM.1190914- 'A NOTARY_ IC•CAIN k -ft,f/ � t. . Z14 4/fr(a ' Adiogu _ Elvia Rodriguez My Commission Expires: October 19, 2014 OPTIONAL DESCRIPTION OF THE ATTACHED DOCUMENT Title or Type of Document: / .G rri An c� aC R A Number of Pages: Document Date: January .73 ,2014 Signer(s) Other Then Named Above:NONE