HomeMy WebLinkAboutContract 0895-2 AMENDMENT TO VEHICLE TOW SERVICE FRANCHISE AGREEMENT
BY AND BETWEEN
THE CITY OF CITY OF CATHEDRAL CITY
AND
SOUTH WEST 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 South West 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.
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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.
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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.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first written above.
CITY OF CATHEDRAL CITY SOUTH WEST TOWING, INC.
I
Q By: _
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Charles P. McClendon, City Manager
Its: AE-S-(0641
ATTEST:
Gary Howell, City CI-rk
APPROVED AS TO FORM:
if/
Charles R. Green, City Attorney
P:WPPSIWPDATAICATH1000100C12922-Amendment to Tow Franchise Agreement South West(04.02.14).doc
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