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HomeMy WebLinkAboutContract 0893-2 C - - AMENDMENT TO VEHICLE TOW SERVICE FRANCHISE AGREEMENT BY AND BETWEEN THE CITY OF CITY OF CATHEDRAL CITY AND MOHICA TOWING, INC. THIS AMENDMENT to Vehicle Tow Service Franchise Agreement ("Amendment"), is made and entered into as of the 2nd day of April, 2014, by and between the City of Cathedral City, a municipal corporation located in the County of Riverside, State of California ("City"), and Mohica Towing, Inc., a California corporation ("Contractor"), with the City and the Contractor sometimes together referred to herein as the "Parties." RECITALS WHEREAS, on January 15, 2014, the City and Contractor entered into that certain Vehicle Tow Service Franchise Agreement ("Agreement") for Contractor to satisfy the City's vehicle towing needs on a non-exclusive basis; and WHEREAS, under California law the tow program is required to be cost neutral for the City; and WHEREAS, the Agreement required Contractor an annual franchise fee of $34,526.50 in the first year, with annual increases in subsequent years; and WHEREAS, the parties subsequently discovered that the total legal fees calculated and included in the contract were listed at $7,000 per year in error, as the total should have been $7,000 for the length of the contract; and WHEREAS, the parties now wish to correct this error. NOW THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration the receipt and adequacy of which is hereby acknowledged, the Parties hereby agree as follows: AGREEMENT Section 1. RECITALS The Recitals set forth above are hereby incorporated into this Amendment by this reference, as though fully set forth herein. Page 1 of 3 Amendment to Tow Franchise Agreement Section 2. SECTION 3 – FEES PAYABLE TO THE CITY Subsection B of section 3 of the Agreement is hereby amended so that it shall read as follows: 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-Two Thousand, One-Hundred Ninety Three Dollars and Seventeen Cents ($32,193.17) 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. Section 3. EXHIBIT "A" – SUMMARY OF PROGRAM COSTS "Exhibit A—Summary of Program Costs" of the Agreement is amended to read as reflected in Exhibit "A" to this Amendment. Section 4. REMAINING PROVISIONS All other remaining terms and conditions of the Agreement shall remain unchanged. Section 5. CONFLICTS In the event there exists any conflicts between the terms of this Amendment and the Agreement, the terms of this Amendment shall be superseding. Section 6. COUNTERPARTS This Amendment may be executed in several counterparts, each of which shall be deemed to be an original and shall constitute one and the same instrument and shall become binding upon the Parties when at least a copy hereof shall have been signed by the Parties. Page 2 of 3 Amendment to Tow Franchise Agreement IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above. CITY OF CATHEDRAL CITY MOHICA TOWING, INC. ,617v:ta__p A L6 01,4___eg., By: (47 Charles P. McClendon, City Manager Its:�� ..cc� r1� c5 Se1 Ntdl/ cc._ ATTEST: 54-\. Iw -Gary Howell, City erk APPROVED AS TO FORM: 7 i Charles R. Green, City Attorney P:WPPStWPDATAICATH10001%DOC12922-Amendment to Tow Franchise Agreement Mohica Towing(04.02.14).doc Page 3 of 3 Amendment to Tow Franchise Agreement 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 Expenses for contract, consulting and litigation 40 hours - @$175.00 per hour $2,333 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 $8,626 (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 $3,063 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 $151,494 E) Revenue Received Annual Revenue Received for Storage and Impound Releases $87,108 and Lien Sales from Tow Contracts Incurred Costs of$151,494— Revenue Received $87,108 = $64,386 Franchise Fee for two operators $64,386/2 $32,193 F) 30 Day Impound Vehicles —Additional Incurred Costs 1) Additional Tow Hearing Expense —200 hearing 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.