LA #4877-7904-7502 v2
ROTATION
TOW SERVICE
AGREEMENT
May 2023
TABLE OF CONTENTS
ELEMENT PAGE
-i-
1. DEFINITIONS .................................................................................................................................2
2. TERM OF THE AGREEMENT AND OPTION TO RENEW........................................................2
3. ROTATION LISTS ..........................................................................................................................2
4. TOW OPERATORS.........................................................................................................................3
5. TOW OPERATOR’S BUSINESS....................................................................................................4
6. RESPONSE TO CALLS ..................................................................................................................6
7. STORAGE YARD............................................................................................................................8
8. TOW TRUCK DRIVERS.................................................................................................................9
9. TOW TRUCK CLASSIFICATIONS .............................................................................................10
10. GENERAL EQUIPMENT SPECIFICATIONS.............................................................................11
11. INSPECTIONS...............................................................................................................................11
12. FEES PAYABLE TO CITY...........................................................................................................12
13. RATES CHARGED BY CONTRACTOR TO VEHICLE OWNERS ..........................................13
14. ADJUSTMENT OF RATES UPON EXERCISE OPTION...........................................................14
15. COLLUSION..................................................................................................................................15
16. INSURANCE .................................................................................................................................15
17. DEMEANOR AND CONDUCT....................................................................................................18
18. TOW COMPLAINTS.....................................................................................................................18
19. COMPLIANCE WITH LAW.........................................................................................................18
20. COMPLIANCE WITH TOW SERVICE AGREEMENT .............................................................19
21. DISCIPLINARY ACTION ............................................................................................................20
22. TERMS OF DISCIPLINARY ACTION ........................................................................................21
23. HEARING/APPEAL ......................................................................................................................21
24. ADVERTISING .............................................................................................................................22
25. CANCELLATION .........................................................................................................................22
26. ENTIRE AGREEMENT ................................................................................................................22
27. INTERPRETATION ......................................................................................................................23
28. SEVERABILITY............................................................................................................................23
29. GOVERNING LAW ......................................................................................................................23
30. VENUE...........................................................................................................................................23
31. ATTORNEYS FEES ......................................................................................................................23
32. AUTHORITY .................................................................................................................................23
TABLE OF CONTENTS
(continued)
ELEMENT PAGE
-ii-
33. OPERATOR APPROVAL .............................................................................................................23 EXHIBIT A..................................................................................................................................................26 EXHIBIT B..................................................................................................................................................28 1 of 30
LA #4877-7904-7502 v2
VEHICLE TOW SERVICE FRANCHISE AGREEMENT
BY AND BETWEEN THE CITY OF CATHEDRAL CITY
AND
_______________________________
THIS VEHICLE TOW SERVICE FRANCHISE AGREEMENT (“AGREEMENT”) is made and entered into this _______ 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 _______, hereinafter referred to as “OPERATOR.”
This AGREEMENT contains terms and conditions that a company agrees to comply with in order to receive and maintain a rotation tow listing with the CITY. Participation in the CITY’s Rotational Tow Program is voluntary and is not intended to be a main source of income. An OPERATOR, by agreeing to participate in the Program is not acting as an agent for the CITY or the Cathedral City Police Department when performing services under the AGREEMENT. Exceptions to compliance with the AGREEMENT shall not be authorized by verbal agreement.
WHEREAS, CITY desires vehicle towing companies as independent contractors for the purposes of satisfying all of CITY’s vehicle towing needs pursuant to CITY’s request; and WHEREAS, CITY finds and determines that the unauthorized parking of vehicles that cannot be removed constitutes a public nuisance and public emergency affecting the property, public safety, and welfare of the residents of the CITY; and
WHEREAS, CITY solicited proposals from qualified vehicle towing companies which included, but was not limited to, OPERATOR; and
WHEREAS, based on OPERATOR’s qualifications and experience, it was determined by CITY that OPERATOR is “uniquely” qualified to perform the services described in this AGREEMENT; and WHEREAS, on _______, the CITY’s City Council, at a regularly scheduled meeting of the CITY’s City Council and pursuant to the recommendation of the CITY’s Chief of Police, authorized CITY to enter into an agreement with OPERATOR for vehicle towing services on behalf of CITY; and WHEREAS, this AGREEMENT is drafted in accordance with all applicable terms and provisions set forth in the California Vehicle Code; and
WHEREAS, this AGREEMENT applies only to vehicles towed and/ or stored at the request of the POLICE DEPARTMENT or CODE COMPLIANCE DEPARTMENT; and
WHEREAS, CITY shall request vehicle towing service by OPERATOR on a rotation/alternate basis between OPERATOR and an additional vehicle towing company currently servicing CITY. 2 of 30
LA #4877-7904-7502 v2
1. DEFINITIONS
A. The term “CITY” shall refer to the City of Cathedral City, and its duly authorized employees, agents, assignees, or designees.
B. The term “OPERATOR” shall refer to the tow operating company and its duly authorized employees, agents, assignees, or designees
C. The term “AGREEMENT” shall refer to the Vehicle Tow Service Franchise Agreement entered into by and between the CITY and OPERATOR.
D. The term “POLICE DEPARTMENT” shall refer to the CITY’s Police Department.
E. The term “CODE COMPLIANCE DEPARTMENT” shall refer to the CITY’s Code Compliance Department.
F. The term “CONTRACT ADMINISTRATOR” shall refer to the CITY’s Chief of Police or his authorized designee.
G. The term “VEHICLE CODE” shall refer to the State of California Vehicle Code.
2. TERM OF THE AGREEMENT AND OPTION TO RENEW
A. The initial term of this AGREEMENT shall be for a total period of three (3) years commencing on the date the AGREEMENT is mutually executed. 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 OPERATOR 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 14 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.
3. ROTATION LISTS
A. A call to an OPERATOR shall constitute one turn on the list, and the OPERATOR shall be moved to the bottom of the list.
1) This includes when the OPERATOR fails to answer the phone, is unable to respond, is unable to perform the required service, refuses to respond or provide service, or is canceled due to excessive response time.
B. If it is determined the OPERATOR is not needed and is canceled by the CITY, up to and including arrival on scene and standby time which does not result in a tow, there shall be no charges and the OPERATOR shall be placed back at the top of the list. 3 of 30
LA #4877-7904-7502 v2
C. If the OPERATOR responds to a CITY call and is canceled by the vehicle’s registered owner or agent, prior to the OPERATOR taking possession of the vehicle, there shall be no charge and the OPERATOR shall be placed back at the top of the list. 1) Possession is deemed to arise when the vehicle is removed and is in transit, or when vehicle recovery operations or load salvage operations have begun (Section 3068.1[a] of the Civil Code [CC] and Section 22851[a][1] of the California Vehicle Code [CVC]).
2) Whenever a vehicle owner returns to a vehicle that is in possession of a towing company prior to the removal of the vehicle, the owner may regain possession of the vehicle from the towing company if the owner pays the tow company the towing charges incurred at the time service is concluded (Section 22851[a][2] CVC).
NOTE: Simply attaching a cable to or blocking a vehicle does not constitute recovery or load salvage operations.
D. Nothing in the AGREEMENT shall prohibit an Chief of Police, supervisor, responding officer, or designee, from requesting a specific tow company when, in their opinion, the necessary resources to clear a hazard are not available from the tow company currently at the top of the rotation tow list.
1) In such an instance, the selected company would then go to the bottom of the list and those tow companies which were by-passed, would remain in the same list order.
E. Nothing shall prohibit a Class B, C, or D OPERATOR from maintaining a position on a lighter class rotation list, provided the tow truck meets the equipment specifications for that class of operation.
1) Regardless of the class of tow truck utilized or responding to the call, charges shall not be more than for the class of vehicle towed or serviced, except when vehicle recovery operations require a larger class tow truck.
4. TOW OPERATORS
A. OPERATORs applying for the rotation tow program shall have a minimum of three (3) verifiable years of for-hire towing experience, as an owner or principal, prior to responding to a request for qualifications to qualify for a rotation tow listing. 1) The three (3) verifiable years of for-hire experience shall be determined by the CITY.
B. OPERATORs and owners who do not meet the three (3) verifiable years of for-hire towing experience, may be considered if a full-time manager is employed who possesses three (3) verifiable years of for-hire tow experience, as an owner, principal, or full-time manager.
1) The three (3) verifiable years of for-hire experience, as an owner, principal, or full-time manager shall be determined by the CITY.
4 of 30
LA #4877-7904-7502 v2
C. Management experience shall be determined and qualified by the CITY as follows:
1) The designation of “manager” implies general power and permits reasonable inferences that the employee so designated is vested with the general conduct and control of their employer’s business.
2) An individual who has charge and control of a business and is vested with a certain amount of discretion and independent judgment.
D. OPERATOR shall notify the CITY of arrest/conviction notifications for all OPERATORs, managers, and tow truck drivers. An OPERATOR shall notify the CITY of any arrest and/or conviction of a tow truck driver, manager, or the OPERATOR, prior to the beginning of the next work shift. Failure to make notification should be cause for disciplinary action.
E. The OPERATOR, manager, and all tow truck drivers shall be enrolled in the Employer Pull Notice (EPN) program.
1) The OPERATOR shall provide a current list of all managers and drivers, and a copy of the current EPN report, or in the case of a newly hired tow truck driver, proof of enrollment in the EPN program, in a response to a request for qualifications.
2) Upon the addition of new managers or drivers, an OPERATOR shall be granted a maximum of 30 days to enroll drivers in the EPN.
F. OPERATOR shall provide to the CITY, on the Effective Date, and then annually thereafter within ten (10) days of the Effective Date’s anniversary, a list of its tow truck operators. This list shall include each tow truck operator’s driver’s license number and a DMV printout for each operator.
G. OPERATORs shall have a Carrier Identification number and a valid Motor Carrier Property (MCP) permit. The MCP documentation shall be provided to the CITY. 1) The expiration of an OPERATOR’s MCP and/or suspension of the MCP, pursuant to Section 34623 CVC, shall result in the immediate suspension of the tow OPERATOR, as well as additional disciplinary action which may be imposed by the Chief of Police.
H. OPERATORs shall have a sufficient number of drivers in order to comply with hours-of- service. All drivers shall comply with intrastate and/or interstate hours of service pursuant to Title 13, Sections 1212 and 1212.5 of the California Code of Regulations (CCR). 1) OPERATORs shall ensure their drivers’ record of duty status complies with Title 13, Section 1213 CCR.
5. TOW OPERATOR’S BUSINESS
A. An OPERATOR’s place of business shall have a sign which clearly identifies it to the public as a tow service.
5 of 30
LA #4877-7904-7502 v2
1) The sign shall have letters which are clearly visible to the public from the street and shall be visible at night.
B. Business hours shall be posted in plain view to the public.
C. An OPERATOR’s place of business shall have posted in plain view to the public the “Towing and Storage Fees and Access Notice” and copies of the notice readily available to the public pursuant to Section 22651.07(a)(1)(A) CVC. 1) The “Towing and Storage Fees and Access Notice” shall be a standardized document plainly printed in no less than 10-point type and shall contain the required language pursuant to Section 22651.07(e) CVC.
D. An OPERATOR’s place of business shall be sufficiently staffed to allow customers to talk face-to-face with a tow company’s owner, manager, or employee during normal business hours.
1) Normal business hours shall not be less than 8 a.m. to 5 p.m., Monday through Friday, except for the following state recognized holidays: New Year’s Day, Martin Luther King Day, President’s Day, Cesar Chavez Day, Memorial Day, Independence Day, Labor Day, Veteran’s Day, Thanksgiving Day, day after Thanksgiving Day, and Christmas Day.
E. An OPERATOR’s place of business shall be open during normal business hours pursuant to Section 22651.07 (d) CVC except for the recognized holidays outlined on D.1. above.
F. The OPERATOR shall maintain records of all tow services furnished at the OPERATOR’s primary business office. (Note: printable electronic records are acceptable.)
1) Invoices shall contain the required itemized information pursuant to Section 22651.07(e) CVC.
2) Itemized invoices shall contain a distinct notice upon the invoice stating “Upon request, you are entitled to receive a copy of the Towing and Storage Fees and Access Notice.” This notice shall be contained within a bordered text box, printed in no less than 10-point type pursuant to Section 22651.07(a)(1)(B)(3) CVC.
G. The OPERATOR’s primary business office shall also maintain business records relating to personnel, insurance, personnel taxes, payroll, applicable operating authorities, local operating authorities, lien sale actions, driver’s record of duty status (intrastate and/or interstate), Federal Communication Commission licensing (if applicable), and non-CITY tows.
H. The CITY may inspect all OPERATOR records relating to compliance with the AGREEMENT and Section 2424 CVC without notice during normal business hours.
I. OPERATORs shall permit the CITY to make copies of business records at their place of business, or to remove business records for the purpose of reproduction. 6 of 30
LA #4877-7904-7502 v2
1) The CITY shall provide a receipt for any record removed from the place of business.
J. An OPERATOR shall maintain business records for a period of two (2) years (effective July 1, 2012), plus the current term of this AGREEMENT, and shall make them available for inspection.
1) Failure of the OPERATOR to comply with the aforementioned inspection requirements shall be cause for disciplinary action.
6. RESPONSE TO CALLS
A. The OPERATOR shall respond to calls 24 hours a day, seven (7) days a week. The time period within which the OPERATOR shall respond to requests for service by the Police Department or Code Compliance by providing a tow vehicle at the response location shall be no greater than thirty (30) minutes from the time of such requests.
B. An OPERATOR or tow truck driver shall respond with a properly equipped tow truck of the class required to tow the vehicle, perform vehicle recovery (e.g., rollover, down embankment), provide service (e.g., fuel, flat tire change), and be in possession of the appropriate class of driver license, applicable endorsements, and permits. 1) Any applicable permits (e.g., load variance, oversize) shall be valid and maintained in the tow truck.
C. The OPERATOR shall advise CITY dispatch, at the time of notification, if they are either unable to respond or unable to meet the maximum response time. 1) If, after accepting the call, the OPERATOR is unable to respond or will be delayed in responding, the OPERATOR shall immediately notify the appropriate CITY communications center.
D. A failure or refusal to respond to towing or service calls, and/or repeated failures to meet maximum response time requirements, without justification, shall result in disciplinary action. (This includes refusing to respond for junk vehicle calls. Justification for failure or refusal to respond to calls shall be determined by the CITY.) E. If service, other than towing, recovery, and load salvage, is canceled by the vehicle’s registered owner or agent, no lien shall arise for the service unless the OPERATOR has presented a written statement to the vehicle’s registered owner or agent for the signed authorization of services to be performed pursuant to Section 3068(a) CC. 1) The OPERATOR shall not attempt to take possession of a vehicle in order to establish a lien for any non-towing services performed, or initiated and subsequently canceled.
F. Nothing shall prohibit a Class B, C, or D tow truck from maintaining a place on a lighter class rotation tow list, provided the tow truck meets the equipment specifications for that class of operation.
7 of 30
LA #4877-7904-7502 v2
1) Regardless of the class of tow truck utilized or responding to the call, charges shall not be more than for the class of vehicle towed or serviced, except when vehicle recovery operations require a larger class tow truck.
G. One tow company per vehicle shall be dispatched to a multi-car incident unless the Chief of Police has established policy which allows an OPERATOR to dispatch more than one tow truck to a multiple vehicle collision scene in response to a rotation tow call.
H. If two or more OPERATORs are called to the same incident, distribution of the vehicles shall be at the discretion of the CITY incident commander.
I. When an OPERATOR will be temporarily unavailable to provide services due to a pre- planned or scheduled activity, the OPERATOR shall notify the CITY at least 24 hours prior to the date that services will be unavailable, noting the times and dates of the unavailability.
J. Only tow truck personnel and equipment requested shall respond to a CITY call (e.g., tow truck driver bringing significant others, family members, friends, or pets, is not allowed).
K. An OPERATOR/tow truck driver shall not respond to a CITY call assigned to another OPERATOR or reassign a call to another tow OPERATOR, unless requested to do so by the CITY.
1) Nothing would preclude the assigned OPERATOR/tow truck driver from responding to an incident to ascertain if additional assistance or equipment is required.
L. There shall be no additional charge for any personnel or equipment which is not necessary to perform the required service. Any additional personnel or equipment shall be approved by CITY on scene.
M. There may be times when the OPERATOR/tow truck driver assigned the initial call, may require assistance from an additional OPERATOR/tow truck driver. 1) The assigned OPERATOR/tow truck driver may, with concurrence of the scene manager, request a specific OPERATOR/tow truck driver for additional assistance.
2) The OPERATOR/tow truck driver’s approved request shall be routed through the CITY on scene incident commander.
N. There may be times when an OPERATOR/tow truck driver, who was not called to the scene, comes upon a collision scene where a vehicle or vehicles are blocking a roadway and the on-scene officer requests assistance in clearing the roadway. 1) In such a case, the OPERATOR/tow truck driver may be requested by the officer to move the vehicle to a safe location and leave it.
2) There shall be no charge for this assistance, and the assistance provided shall not change the OPERATOR’s place in the rotation.
8 of 30
LA #4877-7904-7502 v2
a) Violations of Section 22513 CVC shall result in disciplinary action. 3) If the OPERATOR/tow truck driver is requested to provide service at the scene resulting in a tow, that company will be moved to the bottom of the list.
O. It shall be CONTRACTOR’s responsibility to perform the following at no cost to CITY:
1) Tow and store vehicles as requested by CITY including, but not limited to the following:
a) Vehicles taken into custody by the Police Department; b) Any and all vehicles requested to be towed and/ or stored by the POLICE DEPARTMENT or the CODE COMPLIANCE DEPARTMENT
including CITY owned vehicles within fifty miles of CITY limits; c) Vehicles abandoned in public places or on public property or private property within the jurisdiction of CITY so long as requested to be towed and/or stored by the POLICE DEPARTMENT or the CODE
COMPLIANCE DEPARTMENT pursuant to their enforcement powers of the law;
d) Vehicles seized and impounded pursuant to VEHICLE CODE Sections 14602.6 and 14607. 6; and
e) Vehicles requested to be towed and/ or stored pursuant to CITY’s Vehicle Abatement Program as more fully described below.
2) Tow and store vehicles as requested by CITY including, but not limited to the following:
a) Remove all debris resulting from vehicle accidents, including sweeping; b) Perform all necessary work preliminary to towing vehicles such as removing vehicles from ditches, righting vehicles, separating entangled vehicles, disconnecting drive shafts, and other such work as shall be required to enable the towing of certain vehicles; and
c) Perform all requested and necessary towing, battery jump start, and tire change services on City- owned vehicles at the City’s request.
7. STORAGE YARD
A. The OPERATOR shall be responsible for the safekeeping and prevention of vandalism of all vehicles and contents which are stored/impounded by the CITY. 1) At a minimum, a permanent securely fenced or an enclosed storage area of an adequate size shall be provided for the proper storage of vehicles.
B. The primary storage yard shall be at the same location as the business address. 9 of 30
LA #4877-7904-7502 v2
1) Stored/impounded vehicles shall be at the primary storage yard. 2) This requirement may only be waived by a written addendum from the Chief of Police with justification.
C. A secondary storage yard shall be located reasonably close to the main business office. 1) There shall be no charge to the vehicle’s owner/agent for towing a vehicle from a secondary storage yard to the primary storage yard.
D. Tow OPERATORs shall maintain sufficient storage spaces. 1) A secondary storage yard shall only be utilized if the primary storage yard is full and only with prior CITY approval.
a) This requirement may be only waived by a written addendum from the Chief of Police with justification.
E. An OPERATOR’s employee shall be properly trained to conduct business transactions related to towing, storage, and release of vehicles/property.
F. The OPERATOR or their employee shall release personal property from a vehicle which has been stored/impounded by the CITY at the request of the vehicle’s registered owner or agent pursuant to Sections 22851(b) and 22651.07 CVC. 1) Cathedral City Police Department approval shall be obtained prior to the release of personal property from a vehicle that has been impounded for evidence or investigation.
2) A receipt shall be provided for the removed personal property, with a copy placed inside the stored/impounded vehicle.
a) This procedure shall also apply to the removal of property by the tow OPERATOR and/or their employee to a secured area within the business.
G. Personal property and/or the vehicle shall be released at the primary storage yard. 1) Personal property or a vehicle release from a secondary storage yard shall only be granted if it’s acceptable to the vehicle’s registered owner or agent. a) Personal property is considered to be items which are not affixed to the vehicle. Personal property includes: papers, cellular phones, pull-out radios, clothes, luggage, tools, etc.
H. No fee shall be charged for the release of a vehicle or personal property during normal business hours pursuant to Sections 22851(b) and 22651.07(c)(1) CVC. 1) The maximum charge for a non-business hours release shall be one-half the hourly tow rate charged for the vehicle towed, or less, for initially towing the vehicle pursuant to Section 22851(b) CVC.
10 of 30
LA #4877-7904-7502 v2
2) No lien shall attach to any personal property in or on the vehicle pursuant to Section 22851(b) CVC.
3) Loads for hire (i.e., cargo) are not considered personal property pursuant to Section 3051.5 CC.
I. The OPERATOR shall keep a written record of every vehicle stored/impounded for a period longer than 12 hours pursuant to Section 10650(a) CVC. 1) The record shall contain the name and address of the person storing or requesting the tow, the names of the owner and driver of the vehicle (if ascertainable), and a brief vehicle description (make, model, license plate number, and any vehicle damage) pursuant to Section 10650(b) CVC.
J. The OPERATOR shall allow insurance companies to inspect vehicles at their storage yard at no charge and allow 45 consecutive minutes for inspection as necessary pursuant to Section 22651.07 (3)(B) CVC.
8. TOW TRUCK DRIVERS
A. The OPERATOR shall ensure tow truck drivers responding to calls initiated by the CITY are competent and possess a valid California driver's license of an appropriate class for the vehicle to be driven, and a tow truck driver certificate or a temporary tow truck driver certificate issued by the Department of the California Highway Patrol, to permit the operation of the tow truck pursuant to Section 12520(a) CVC.
B. Tow truck drivers shall perform all towing and recovery operations in the safest and most expedient manner possible.
C. Tow truck drivers shall be at least 18 years of age and shall possess the proper class of license and endorsements for the towed and towing vehicle.
D. Uniforms: CITY rotation tow truck drivers shall wear an identifiable uniform (either shirt and pants, or coveralls) displaying the company and the driver’s name while engaged in CITY rotation tow operations.
E. Safety Garments: CITY rotation tow truck drivers shall wear appropriate warning garments (e.g., vests, jackets, shirts, retroreflective clothing) during daylight and hours of darkness in accordance with Code of Title 8, Section 1598 CCR.
9. TOW TRUCK CLASSIFICATIONS
A. An OPERATOR shall equip and maintain tow trucks covered under the AGREEMENT in accordance with the provisions set forth in the CVC, Title 13 of the CCR, the specifications contained in this AGREEMENT, and in a manner consistent with industry standards and practices.
B. All recovery vehicles (wreckers) shall have an extendable/retractable recovery boom. 1) Class D tow trucks used exclusively for salvage and recovery operations are not required to possess wheel lift capabilities.
11 of 30
LA #4877-7904-7502 v2
2) An OPERATOR who has a car carrier is exempted from the recovery, wheel lift, and boom capability requirements. However, the car carrier must be an additional unit and shall not be used for recovery.
3) An auto-loader without an extendable/retractable boom is an additional unit and shall not be used for recovery.
a) For purposes of the AGREEMENT, recovery is defined as a vehicle which is overturned, down an embankment, or otherwise not upright on its wheels.
C. A violation of the gross vehicle weight rating (GVWR) and/or safe loading requirements of a tow truck should be cause for immediate suspension. This includes exceeding the tow truck’s GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck’s unladen front axle weight on the front axle when towing.
There are four (4) classes of tow trucks covered under this AGREEMENT. 1)Class A - Light Duty
a) An OPERATOR shall possess or be able to obtain at least minimum one tow truck which has a manufacturer’s GVWR of at least 14,000 pounds. 1) After June 30, 2006, Class A 4-wheel drive tow trucks with a GVWR of less than 14,000 pounds may be listed as special equipment on the CITY 234A. These tow trucks shall be used only for recoveries requiring the use of 4-wheel drive. 2)Class B - Medium Duty
a) An OPERATOR shall possess or be able to obtain at least one tow truck with a GVWR of at least 33,000 pounds. The truck shall be equipped with air brakes and a tractor protection valve or device, and be capable of providing and maintaining continuous air to the towed vehicle. 3)Class C - Heavy Duty
a) An OPERATOR shall possess or be able to obtain at least one three-axle tow truck with a GVWR of at least 52,000 pounds. The truck shall be equipped with air brakes and must be capable of providing and maintaining continuous air to the towed vehicle.
4)Class D - Super Heavy Duty
a) An OPERATOR shall possess or be able to obtain at least one three-axle tow truck with a GVWR of at least 54,000 pounds. The truck shall be equipped with air brakes and must be capable of providing and maintaining continuous air to the towed vehicle.
12 of 30
LA #4877-7904-7502 v2
NOTE: For purposes of the AGREEMENT, a “low-boy trailer” is considered special equipment.
10. GENERAL EQUIPMENT SPECIFICATIONS
A. Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chassis GVWR and the classification system used by the American Trucking Association and truck manufacturers. Tow truck and car carrier classifications shall meet all applicable state and/or federal standards.
B. Identification Labels: Each piece of towing equipment shall have a manufacturer’s label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number, model, and rated capacity.
C. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can lift in a winching mode, when the boom is static at a 30- degree elevation with the load lines vertical and the lifting cables sharing the load equally, measured with a live load (weight or load cell).
1) The structural design of the recovery equipment must have a higher load capacity than the performance ratings.
2) Winches shall conform to, or exceed, the specifications set forth by the Recovery Equipment Rating, Society of Automotive Engineers (SAE) Handbook, SAE J706.
3) All ratings for wire rope and chain assemblies are for the undamaged assembly condition. All wire rope and chain assemblies should be the same type, construction, and rating as specified by the original equipment manufacturer.
D. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions.
11. INSPECTIONS
A. The CITY reserves the right to inspect all tow trucks utilized on CITY rotation calls, as well as the OPERATOR’s storage yards(s).
B. The intent of the inspections is to ensure OPERATORs are involved in an ongoing safety maintenance program for their tow trucks. The inspection is not intended to find out what needs to be repaired/replaced on an OPERATOR’s tow truck. A tow truck responding to a CITY call shall be properly equipped and operating in a safe condition.
C. Tow trucks shall comply with California Air Resources Board requirements. Tow trucks not in compliance shall be cause for disciplinary action. OPERATORs shall provide a current copy of their California Air Resources Board Certificate of Reported Compliance Truck and Bus Regulation in a response of request for qualifications. 13 of 30
LA #4877-7904-7502 v2
12. FEES PAYABLE TO CITY
A. OPERATOR hereby agrees to pay to CITY that amount of fees in accordance with CVC Section 12110 which provides that “a fee in connection with the award of a franchise for towing vehicles on behalf of that public entity . . . . shall not exceed the amount necessary to reimburse the public entity for its actual and reasonable costs incurred in connection with the towing program.”
B. The total amount of franchise fees that each OPERATOR shall pay to CITY in advance during the term of the AGREEMENT is the amount of ________ 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 CVC Sections 14602.6 and 14607.6, OPERATOR shall pay to CITY on a monthly basis a total amount of _________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 CVC Sections 14602.6 and14607. 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. Both parties acknowledge that the total amount of franchise fees that each OPERATOR shall pay to the CITY is subject to change in the event that an operator is removed from the tow rotation list. In the event that the franchise fees are adjusted, the total amount of franchise fees that each OPERATOR shall pay to the CITY shall not exceed the amount necessary to reimburse the CITY for its actual and reasonable costs incurred in connection with the towing program.
D. Payment of the total amount of franchise fees due to CITY by OPERATOR 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 OPERATOR for the costs incurred by CITY for vehicles impounded pursuant to CVC Sections 14602.6 and 14607.6, OPERATOR shall pay all fees on a monthly basis and not later than thirty (30) days after collection of the storage fees by
OPERATOR
E. All payments made pursuant to this AGREEMENT shall be made payable to the “City of Cathedral City” and directed to the attention of the CONTRACT ADMINISTRATOR and shall not be made contingent on any payments due or paid to OPERATOR for the actual tow and/ or storage of any vehicles. With regard to vehicles impounded pursuant to CVC Sections 14602.6 and 14607.6, the actual source of storage fee payments shall have no bearing on OPERATOR’s duty to pay CITY under this AGREEMENT and shall include proceeds that OPERATOR may receive from an auction or other sale of a forfeited vehicle. OPERATOR may prorate payment to CITY to reflect 1/3 or 33% of total proceeds of sale less the cost of the OPERATOR tow fee and lien fee as stipulated in 14 of 30
LA #4877-7904-7502 v2
OPERATOR awarded proposal for vehicles impounded pursuant to CVC section 14602.6 and 14607.6.
F. In addition, for vehicles impounded pursuant to VEHICLE CODE Sections 14602. 6 and 14607. 6, OPERATOR shall pay to CITY on a monthly basis the following amounts:
1) Vehicles released to the owner at or after 30 days: $ 361.92 2) Vehicles released to the owner before 30 days: $ 12.06 per day 3) Vehicles sold by OPERATOR: prorated to reflect 1/3 or 33% of total proceeds of sale less the cost of the OPERATOR tow fee and lien fee as stipulated in OPERATOR awarded proposal for vehicles impounded pursuant to CVC section 14602.6 and 14607.6
13. RATES CHARGED BY CONTRACTOR TO VEHICLE OWNERS
A. The rates charged by OPERATOR 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”.
B. Even when tow and storage services are specifically requested by CITY, OPERATOR acknowledges that it shall charge vehicle owners only for its tow and storage services incurred pursuant to the terms and provisions of this AGREEMENT. At no time shall OPERATOR hold CITY liable for any tow, storage, or disposal costs incurred pursuant to and during the term of this AGREEMENT even when such services are requested by CITY. It is specifically acknowledged by OPERATOR that the vehicle owner shall be solely responsible for such charges.
C. The rates set forth in the “Rate Schedule” shall apply to OPERATOR’s services for tow and storage for the initial three (3) year period of this AGREEMENT and thereafter unless otherwise adjusted by and between CITY and OPERATOR as set forth in Section 14 herein.
D. OPERATOR shall not make any demand upon the owner of the vehicle for a sum in excess of the rates set forth in Exhibit “B” or otherwise negotiated in accordance with Section 14 herein.
E. Any OPERATOR who charges rates above the rates in this AGREEMENT call shall be subject to disciplinary action.
F. A valid bank credit card or cash payment shall be accepted for payment of towing and/or storage pursuant to Sections 22651.1 and 22651.07(c)(5) CVC. 1) A surcharge shall not be imposed upon a cardholder who elects to use a credit card for payment as a result of a rotation call, pursuant to Section 1748.1 CC and Section 22651.07(c)(5) CVC.
G. The approved schedule of rates charged by the OPERATOR shall be available in the tow truck, and shall be presented upon demand to the vehicle owner/agent for whom the tow service was provided or any CITY officer at the scene.
15 of 30
LA #4877-7904-7502 v2
H. There shall be no additional charge for moving (i.e., driving, towing, pushing, utilizing a forklift) a stored/impounded vehicle from inside an OPERATOR’s storage yard to the front of the business establishment.
I. Storage Fees
1) A vehicle stored/impounded 24 hours or less shall be charged no more than one- day storage pursuant to Section 3068.1(a) CC.
a) If the vehicle is released from storage after 24 hours has lapsed, charges may be allowed on a full, calendar-day basis for each day of storage, or part thereof pursuant to Section 3068.1(a) CC.
1) Storage of vehicles in combination should be charged a per vehicle rate except for dollies, con-gear, vehicle on a car carrier/trailer, etc.
a. Dollies and con-gear, not in combination, may be
charged a storage rate not to exceed Class A storage fees. 2) Inside storage fees shall only be charged when inside storage is requested by the CITY, registered owner, legal owner, insurance company, or when the inside storage can be justified by the tow OPERATOR.
3) The OPERATOR shall display in plain view at all cashier’s stations, a sign as described in Section 3070(d)(2)(E) CC, disclosing all storage fees and charges in force, including the maximum storage rate.
J. Lien Fees
1) If a vehicle has been determined to have a value exceeding four thousand dollars ($4,000), pursuant to Section 22670 CVC, the lien shall be satisfied pursuant to Section 3071 CC (Section 3074 CC).
2) The lienholder may charge a fee for lien sale preparations not to exceed seventy dollars ($70), for a vehicle valued at four thousand dollars ($4,000) or less, and not to exceed one hundred dollars ($100) for a vehicle valued at greater than four thousand dollars ($4,000) (Section 3074 CC).
a) These charges may commence when the lienholder requests the names and addresses of all persons who have an interest in the vehicle from the Department of Motor Vehicles (Section 3074 CC).
b) Not more than 50 percent of the allowable fee may be charged until the lien sale notifications are mailed to all interested parties and the lienholder or registration service agent has possession of the required lien processing documents (Section 3074 CC).
c) This charge shall not be made in the case of any vehicle redeemed prior to 72 hours from the initial storage (Section 3074 CC).
16 of 30
LA #4877-7904-7502 v2
14. ADJUSTMENT OF RATES UPON EXERCISE OPTION
A. 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 OPERATOR decides to adjust its rates for tow and storage services, OPERATOR shall perform the following:
1) Provide CITY with sixty (60) days notification of its desire to adjust its rates prior to the date by which CITY must exercise its option to renew the AGREEMENT; 2) Enter into good faith negotiations for the adjustment of its rates; 3) If, after two (2) weeks from the date of OPERATOR’s notice to CITY of its desire to adjust its rates, CITY and OPERATOR are unable to negotiate rates agreeable to both parties, the parties shall seek immediate mediation of the dispute within thirty (30) days from the date negotiations commenced between the parties; and
4) If mediation between the parties is not successful, then either one of the following shall occur:
a) The tow and storage service rates in effect prior to negotiations between the parties shall apply to the term of the AGREEMENT, or b) The AGREEMENT shall be terminated by either party upon thirty (30) days written notification to the other party.
B. In the event a dispute regarding the adjustment of rates for tow and storage services is submitted to mediation, each party shall bear its own costs for mediation and shall divide the cost of the mediator equally.
15. COLLUSION
A. An OPERATOR and/or applicant shall not conspire, attempt to conspire, or commit any other act of collusion with any other OPERATOR or applicant for the purpose of secretly, or otherwise, establishing an understanding regarding rates or conditions to the AGREEMENT that would bring about any unfair condition which could be prejudicial to the CITY, the motoring public, or other OPERATORs.
B. A finding by the CITY that any OPERATOR or applicant has been involved in collusion shall be cause for denial of an application or shall nullify the AGREEMENT. Any OPERATOR or applicant found to be involved in any act, or attempted act of collusion, shall be disqualified from participation on all CITY rotation tow lists for the current term, plus three years.
16. INSURANCE
A. OPERATPR, at OPERATOR’S own cost and expense, shall procure and maintain during the term of this AGREEMENT insurance including, but not limited to, insurance required pursuant to VEHICLE CODE Section 16500.5 and the following:
17 of 30
LA #4877-7904-7502 v2
1) OPERATOR shall maintain worker's compensation insurance and employer’s liability insurance for its employees in accordance with the laws of the State of California. In addition, OPERATOR shall require each sub-OPERATOR, 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 sub- OPERATOR’s employees. If any class of employees employed by OPERATOR pursuant to this AGREEMENT is not protected by the California State Worker’s Compensation Law, OPERATOR shall provide adequate insurance for the protection of such employees to the satisfaction of the CITY. This provision shall not apply if OPERATOR has no employees performing work under this AGREEMENT. OPERATOR agrees to waive its statutory immunity under any worker's compensation or similar statute, as respecting the CITY, and to require any and all sub-OPERATORs and any other person or entity involved in the services required in this AGREEMENT to do the same.
2) OPERATOR 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. OPERATOR shall maintain insurance on an occurrence, not claims-made basis. OPERATOR 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.
3) OPERATOR shall maintain automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the OPERATOR 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.
B. 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:
1) 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 OPERATOR, including materials, parts or equipment furnished in connection with such work or operations.
2) 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.
18 of 30
LA #4877-7904-7502 v2
3) 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.
4) The insurer waives all rights of subrogation against the CITY, its elected or appointed officials, officers, employees or agents.
5) 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.
6) 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.
C. Any deductibles or self-insured retentions must be declared to and approved by the CITY.
At the CITY’s option, OPERATOR shall demonstrate financial capability for payment of such deductibles or self-insured retentions.
D. OPERATOR 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.
E. Provided the CITY gives its written consent for any persons other than OPERATOR to perform any part of the services required in this AGREEMENT, OPERATOR agrees to require that all parties with whom OPERATOR enters into contracts or whom OPERATOR 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. OPERATOR 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.
F. In the event this AGREEMENT is terminated for any reason prior to the completion of all obligations and requirements of this AGREEMENT, OPERATOR agrees to maintain all coverages required herein until the CITY provides written authorization to terminate the coverages following the CITY’s review and determination that all liability posed under this AGREEMENT as to the party providing insurance has been eliminated.
G. OPERATOR agrees and acknowledges that if it fails to obtain all of the insurance required in this AGREEMENT in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any sub-OPERATORs or others involved in any way with the performance of services, to the extent such is permissible under this AGREEMENT, OPERATOR shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the CITY or its officers, employees, servants, volunteers, agents and independent OPERATORs.
19 of 30
LA #4877-7904-7502 v2
H. Proof of insurance shall be in the form of a certificate of insurance. The OPERATOR’s insurance policy shall provide for not less than 30 days written notice to the CITY in the event the insurance policy is canceled or is due to expire.
I. Failure of the OPERATOR to maintain the minimum insurance requirements set forth in the AGREEMENT shall immediately nullify the AGREEMENT, remove the OPERATOR from the rotation tow list, and be subject to disciplinary action by the Chief of Police.
17. DEMEANOR AND CONDUCT
A. While involved in CITY rotation tow operations or related business, the tow OPERATOR and/or employee(s) shall refrain from any acts of misconduct including, but not limited to, any of the following:
1) Rude or discourteous behavior.
2) Lack of service, selective service, or refusal to provide service which the OPERATOR is capable of performing.
3) Any act of sexual harassment or sexual impropriety.
4) Unsafe driving practices.
5) Exhibiting any objective symptoms of alcohol or drug use. a) The OPERATOR/tow truck driver shall submit to a preliminary alcohol screening test upon demand of the CITY if an odor of an alcoholic beverage is detected upon the person.
6) Any acts of discrimination based on a protected group.
18. TOW COMPLAINTS
A. All CITY related tow service complaints received or initiated by the CITY against a tow OPERATOR or tow OPERATOR’s employee shall be accepted and investigated in a fair and impartial manner.
1) The tow OPERATOR and their employees shall cooperate with CITY investigators during the course of an investigation.
B. Alleged violations of the AGREEMENT shall be investigated by the CITY.
C. Complaints for violations of the law not normally investigated by CITY shall be referred to the agency with investigation jurisdiction.
D. The OPERATOR shall be notified in writing of the findings within 30 days of the conclusion of any investigation.
20 of 30
LA #4877-7904-7502 v2
19. COMPLIANCE WITH LAW
A. The tow OPERATOR and employees shall, at all times, comply with federal, state, and local laws and ordinances.
B. Any conviction of the OPERATOR or employee involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of violence, a sexual offense, a drug-related offense, felony driving while under the influence of alcohol and/or drugs, misdemeanor driving while under the influence of alcohol and/or drugs, or acts of moral turpitude should be cause for suspension or removal of an OPERATOR/employee, denial of an OPERATOR/employee’s application, or termination of the AGREEMENT.
C. CITY personnel, as well as tow OPERATORs and their employees, shall not be offered nor accept gratuities pursuant to Section 12110(a) CVC.
D. No tow OPERATOR or their employees shall accept any gratuities from a repair shop for the delivery of a vehicle, not owned by the repair shop or tow company, for the purpose of storage or repair pursuant to Section 12110(c) CVC.
E. An OPERATOR shall satisfy a court order mandating reimbursement to the vehicle or property owner for the damage or loss which occurred while the vehicle was in the OPERATOR’s custody.
F. An OPERATOR or employee arrested/charged for a violation involving any of the above crimes should be suspended until the case is adjudicated.
20. COMPLIANCE WITH TOW SERVICE AGREEMENT
A. The OPERATOR agrees, as a condition of inclusion in the rotation tow program, to comply with the terms and conditions of the AGREEMENT. Furthermore, the OPERATOR or OPERATOR’s agent agrees that failure to comply with these terms and conditions shall be cause for disciplinary action (i.e., written reprimand, suspension, termination, or denial of an application).
B. A violation of the equipment requirements related to safety shall be cause for immediate suspension.
1) The suspension shall remain in effect until the suspension period is completed and the CITY has inspected the equipment and concluded the OPERATOR is in compliance.
C. A violation of the GVWR and/or safe loading requirements of a tow truck may be cause for disciplinary action.
1) This includes exceeding the tow truck’s GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck’s unladen front axle weight on the front axle when in tow.
D. A violation of intentionally overcharging or a pattern of overcharging shall be cause for suspension.
21 of 30
LA #4877-7904-7502 v2
1) The suspension shall remain in effect until the suspension period is completed and proof of reimbursement to the aggrieved customer has been provided to the CITY.
E. Any unsatisfactory evaluation rating issued by the CITY shall be cause for suspension. 1) The suspension shall remain in effect until proof of a satisfactory compliance rating from the CITY has been provided to the Chief of Police.
F. Allowing an incompetent tow truck driver to respond to a CITY call shall be cause for disciplinary action of the OPERATOR.
G. An OPERATORs failure or refusal to respond to a call by the CITY shall be cause for disciplinary action of the OPERATOR.
H. An OPERATOR responding a tow truck driver to a CITY call (i.e., the drivers dispatched by the tow OPERATOR’s business) who has not been approved by the CITY shall be cause for disciplinary action of the OPERATOR.
I. Tow OPERATORs shall not record (i.e., videotape or photograph) a scene unless it is for official use by the tow company for business related reasons. 1) The on-scene investigating officer or incident commander shall make the determination when a tow OPERATOR may record a scene for tow related business reasons.
2) In the event a tow OPERATOR is determined to be in violation of this provision, they will immediately surrender any such recording device to an officer of the CITY.
21. DISCIPLINARY ACTION
A. The Chief of Police shall take disciplinary action against an OPERATOR for violations investigated and sustained. Furthermore, the OPERATOR agrees that failure by the OPERATOR, or their agent, to comply with these terms and conditions shall be cause for disciplinary action (i.e., written reprimand, suspension, denial of an application, or termination from the CITY Rotation Tow Program).
1) The Chief of Police shall retain discretion regarding the length of any suspension imposed pursuant to the terms and conditions of this AGREEMENT.
B. Nothing shall preclude the CITY from taking the appropriate enforcement or administrative action for any violations of law.
C. Nothing herein shall be deemed to prohibit the CITY from immediately suspending, terminating, or denying an application of any OPERATOR or employee for any of the following:
1) Whose conduct, in the opinion of the Chief of Police, is deemed to be a danger to the motoring public (e.g., registered sex offender, acts of violence, fraud). 2) A violation of equipment requirements, related to safety. 22 of 30
LA #4877-7904-7502 v2
3) Repeated failures or refusals to respond to a call.
4) Who has engaged in conduct constituting a flagrant violation of the AGREEMENT.
D. Records of violations shall be retained by the CITY for 36 months, plus the current AGREEMENT term.
22. TERMS OF DISCIPLINARY ACTION
A. Violations of the terms and conditions of the AGREEMENT may be cause for disciplinary action in the following manner:
1) First violation within a 12-month period – letter of written reprimand. 2) Second violation within a 12-month period – one to 30-day suspension. 3) Third violation within a 12-month period – 60 to 90-day suspension. 4) Fourth violation within a 12-month period – termination of the AGREEMENT.
NOTE: Nothing may preclude a Chief of Police from imposing a suspension for a first violation.
B. Violations of the terms and conditions of the AGREEMENT which warrant suspension for the first violation are categorized as major violations. Any subsequent or continuing major violation may be cause for termination.
1) In lieu of termination, the CITY may impose additional suspensions for longer periods, if deemed appropriate.
2) When considering disciplinary action for a major violation of the AGREEMENT, a Chief of Police should take into consideration all violations which have occurred within 36 months prior to the date of the current violation.
C. A suspended or terminated OPERATOR, and/or the tow business owner at the time of the suspension or termination, shall not be eligible for a rotation listing for the duration of the suspension or termination.
1) This provision applies to the OPERATOR working in any capacity within any tow business or operating any tow business, even if operated under new ownership.
D. If the OPERATOR is serving a suspension, the OPERATOR shall be required to have complied with all terms and conditions of the current AGREEMENT at the time of reinstatement.
E. An OPERATOR shall comply with all the terms of the suspension (i.e., restitution to victims, court orders) prior to reinstatement or reapplication. 23 of 30
LA #4877-7904-7502 v2
23. HEARING/APPEAL
A. A hearing shall be granted, upon an OPERATOR’s request, within ten (10) calendar days, for any of the following circumstances:
1) OPERATOR is served with disciplinary action.
2) Denial of an OPERATOR’s rotation tow application or an OPERATOR/driver application.
B. The Chief of Police shall provide written notification to the OPERATOR requesting a hearing indicating acknowledgement of the hearing request and a hearing date assigned.
C. A hearing shall be held as soon as practicable.
D. The hearing shall be conducted by the Chief of Police or designee, and the OPERATOR shall be entitled to present all relevant facts and circumstances in support of the OPERATOR’s position.
1) The OPERATOR shall be entitled to present testimony of at least one qualified person (i.e., representation by counsel or attorney).
E. The OPERATOR shall be notified in writing of the Chief of Police’s decision(s) within ten (10) business days of the date of completion of the hearing.
F. Disciplinary action shall not take effect until the hearing and appeal process has been exhausted, with the exception of OPERATORs whose conduct is deemed to be a danger to the motoring public or who continue to violate the terms and conditions of this AGREEMENT.
G. If an OPERATOR fails to request a hearing or appeal within the specified time or fails to appear at a scheduled hearing or appeal, the action taken by the CITY Chief of Police shall be final and the disciplinary action shall take effect upon written notification to the OPERATOR by the Chief of Police.
24. ADVERTISING
A. The OPERATOR shall not display any sign or engage in any advertisement indicating an official or unofficial connection with the CITY.
25. CANCELLATION
A. This AGREEMENT may be canceled by an OPERATOR by providing written notice to the CITY.
26. ENTIRE AGREEMENT
A. This AGREEMENT supersedes any and all other AGREEMENTs, either oral or written, between the CITY and OPERATOR with respect to the subject matter of this
AGREEMENT
24 of 30
LA #4877-7904-7502 v2
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.
27. INTERPRETATION
A. This AGREEMENT was prepared by the parties jointly and equally, and shall not be interpreted against either party on the ground that one of the parties was solely responsible for preparing the AGREEMENT or caused the AGREEMENT to be prepare.
28. SEVERABILITY
A. If any one or more of the sentences, clauses, paragraphs or sections contained herein is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this AGREEMENT and shall not affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein.
29. 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.
30. 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.
31. 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.
32. 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. 25 of 30
LA #4877-7904-7502 v2
33. OPERATOR APPROVAL
I certify that all drivers operating under this Tow Service Agreement (AGREEMENT) are qualified and competent. I further certify that I have read and understand this AGREEMENT and agree to abide by all the provisions. I further agree to indemnify, defend, and save harmless the state, its officers, agents, and employees from any and all claims and losses accruing or resulting to the OPERATOR in connection with the performance of the AGREEMENT, and from any and all claims and losses accruing or resulting to any person, firm, or corporation who may be injured or damaged by the OPERATOR in the performance of this AGREEMENT. The OPERATOR, and the agents and employees of the OPERATOR, in the performance of this AGREEMENT, shall act in an independent capacity and not as officers or employees or agents of the City of Cathedral City. The terms of this AGREEMENT will become effective:
__________________________ and end _____________________________________.
Date Date OPERATOR Approval
Signature Printed Name
Company Title Date
Business Address Phone Number
Motor Carrier Permit Number
IN WITNESS WHEREOF, the Parties hereto have executed this AGREEMENT on the date first indicated above.
CITY OF CATHEDRAL
____________________________
Charles McClendon, City Manager
26 of 30
LA #4877-7904-7502 v2
OPERATOR
____________________________
ATTEST: APPROVED AS TO FORM:
____________________________ ___________________________ Tracey Martinez, City Clerk Eric S. Vail, City Attorney 27 of 30
LA #4877-7904-7502 v2
EXHIBIT “A”
SUMMARY OF ANNUAL PROGRAM COSTS
A) Facilities and Infrastructure
(1) Building - 2.5% of Operating costs of $602,553 $15,064 (2) Information Systems Expense – 4% of City’s total information Systems Expenditures ($1,670,682) $41,767
Total Incurred Facilities and Infrastructure costs$56,831 B) Professional Services
(1) Legal Expenses for contract, consulting and litigation 15 hours - @$290.00 per hour =$4350.00/3$1,450
C) Personnel Costs – Administrative (Fully Benefitted per hour cost) Based on 720 Vehicles Towed in Fiscal Year
(1) Police Officer - 400 hours @ $174 $69,600 (2) Community Service Officer-140 hours @$104 $14,560 (3) Dispatcher –360 hours @ $127 $45,720
(4) Records Clerk – 360 hours @ $118 $42,480 (5) Sergeants – 48 hours @ $248 $11,904
(6) Chief of Police – 13 hours @ $369.00 $4,797
(7) Deputy Chief of Police* – 20 hours @ $206 per hour $4,120 (8) Commander - 20 hours @ $287 per hour $5,740
(9) Administrative Office Coordinator – 20 hours @ $94 $1,880 (10) Management Analyst – 40 hours @ $146 $5,840 Total Incurred Administrative Personnel Costs $195,844 D) Materials and Supplies
(1) Total Incurred forms, supplies and postage costs$1,000 Summary of Incurred Costs
1)Facilities and Infrastructure $56,832
2)Professional Services $1,450 3)Personnel Costs Administrative $195,944 4)Materials and Supplies $1,000
28 of 30
LA #4877-7904-7502 v2
Grand Total Incurred Costs $255,126
E) Revenue Received
Annual Revenue Received for Storage and Impound Releases $91,306 and Lien Sales from Tow Contracts
Incurred Costs of $255,126 – Revenue Received $91,306 = $163,820 Franchise Fee for ___ tow operators $__
F) 30 Day Impound Vehicles – Additional Incurred Costs
1) Additional Tow Hearing Expense – 50 hearings at one-half hour per Hearing for Sergeant’s salary and benefits $248 (fully benefitted Per hour) $6,200
2) Mobile Data Computer System Expense - $60,850 per year at 17% Vehicle storage and impound related emphasis $11,896
3) Incurred cost per 30 day impound per year at 50 impounded vehicles $18,096 ($6,200 + $11,896) divided by 50 impounded vehicles results in a cost of $361.92 per vehicle impounded for 30 days.
Note: Line items that are struck through above are estimated actual and reasonable costs incurred by CITY that CITY has determined not to pass through to CONTRACTOR. 29 of 30
LA #4877-7904-7502 v2
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 which shall be subject only to the charges in Section 6(O)(1)(B) of the Agreement. The hourly rates below are calculated on a “door to door” basis, and charges commence when the tow truck is dispatched to the scene and conclude when the tow truck returns to the storage yard.
A. Basic Hourly Tow Rate: Class A Tow Truck $245
One hour minimum
1) The base hourly rate per tow shall apply to all towed passenger vehicles and trucks rated at less than ten thousand (10,000) pounds gross vehicle weight. 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.
B. Special Duty Hourly Tow Rate: $250
One hour minimum
1) The special duty hourly rate shall apply when a four-wheel drive tow truck is necessary for off-road recovery of vehicles. The hourly rate
C. Heavy Duty Hourly Tow Rate:
1)Two Axel Category: Class B Tow Truck $300
One hour minimum
a. The two (2) axel hourly rate 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 $400 One hour minimum
a. The three (3) axel hourly rate shall apply to all towed vehicles with a rate capacity of thirty (30,000) pounds gross vehicle weight or more. 3) The hourly rate for all heavy-duty towing (two and three axels) includes difficult removal of vehicles, up righting overturned vehicles, and the use of special equipment and preparation prior to towing.
30 of 30
LA #4877-7904-7502 v2
D. Charges for Related Services:
1) Lock Out, Tire Change, Jump Start: $90
a. The standard charge for opening locked vehicles, tire change and jump start is ninety dollars ($90) 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 ninety dollars ($90) for anyone desiring release of a vehicle at any time other than normal business hours.
E. Storage Fees: (Per Day)
1) Motorcycles, passenger cars
and trucks 20’ or less Outside Storage: $ 80 per day
Inside Storage: $100 per day
2) Trailers 15’ or less Outside Storage: $50 per day
3) Trucks, trailers and other Outside Storage $80 per day vehicles 20’ to 30’
4) Trucks, trailers and other Outside Storage $90 per day vehicles 30’ or more
5) Storage fees are charged per calendar day, not on a rolling 24 hour basis. The first daily fee per vehicle is incurred four hours after drop off at the storage facility. Thereafter, a full day’s storage fee will be charged for each calendar day, or part thereof, that the vehicle is stored at Contractor’s facility.
6) In addition to the daily storage fees above, Contractor may charge a fee of $345 for all vehicles impounded pursuant to Vehicle Code Sections 14602.6 and 14607.6. Such fees shall be passed through to the City in satisfaction of Contractor’s obligations under Section 12(B) of this Agreement.
F. Lien Fee:
Contractor shall charge lien fees in compliance with Civil Code Section 3074, which are presently $70 for vehicles with a value of $4,000 or less or $100 for vehicles valued at over 31 of 30
LA #4877-7904-7502 v2
$4,000. No lien fee shall be charged if the vehicle is redeemed within seventy-two hours of initial storage.
G. 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 an 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.
5) From time to time, the City may request Contractor waive its fees in the event that a vehicle is erroneously stored. When so requested by a sworn supervisor (sergeant or above) of the City’s police department, Contractor shall waive its all fees and report the waiver to a Commander in the City’s Police Department as soon as is feasible thereafter.