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.
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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
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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
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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
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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
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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.
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•
(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
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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
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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
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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)
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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
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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.
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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,
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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,
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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
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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.
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(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