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FIRST AMENDMENT TO
VEHICLE TOW SERVICE FRANCHISE AGREEMENT
BY AND BETWEEN THE CITY OF CATHEDRAL CITY
AND
MOHICA TOWING
THIS FIRST AMENDMENT (“First Amendment”) is made and entered into this 27th day of August 2026, by and between the CITY OF CATHEDRAL CITY, a municipal corporation located in the County of Riverside, State of California (“CITY”), and MOHICA TOWING (“OPERATOR”). The Parties agree as follows:
1. RECITALS. This First Amendment is executed with reference to the following:
A. On August 27, 2023, CITY and OPERATOR entered into the Vehicle Tow Service Franchise Agreement (“Agreement”), under which OPERATOR provides vehicle towing service to CITY on a rotation/alternate basis with other additional towing companies currently servicing CITY.
B. Section 2, subsection A, of the Agreement authorizes the Parties to extend the Agreement for one (1) additional three (3) year period.
C. The Parties desire to (i) extend the term of the Agreement three (3) years, commencing on the date this First Amendment is mutually executed, (ii) provide for an annual increase in the franchise fees based on the All Urban Consumers Price Index (CPI-U) for Riverside-San Bernardino-Ontario for each respective year, (iii) adjust towing and storage rates set forth in Exhibit B of the Agreement, (iv) permit an annual review of the towing and storage rates, and (v) delete obsolete language.
2. TERM. Section 2 of the Agreement is amended and retitled in its entirety to read as follows:
2. TERM OF THE AGREEMENT
The term of this AGREEMENT shall commence on the date the AGREEMENT is mutually executed and shall expire on August 27, 2029, unless earlier terminated as provided in the AGREEMENT. .
3. FRANCHISE FEE. Section 12, subsection B, of the Agreement is amended in its entirety to read as follows:
B. FRANCHISE FEE.
(i) OPERATOR shall pay to CITY a monthly franchise fee of $148.35 per vehicle towed.
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(ii) The franchise fee shall increase by three percent (3%) in Year 2 and three percent (3%) in Year 3.
(iii) Commencing on the effective date of the First Amendment and annually thereafter, the franchise fee shall increase annually based on the percentage change equal to the All Urban Consumers Price Index (CPI-U) for Riverside-San Bernardino-Ontario, as published by the U.S. Bureau of Labor Statistics, for the most recently available twelve (12) month period preceding each such adjustment; provided, however, that the annual increase will not exceed four percent (4%). If the CPI-U does not change or goes down in a given year, no change shall be made to the franchise fee. If the CPI-U exceeds four (4) percent, a four (4) percent rate shall be applied.
Each annual CPI-based adjustment shall be calculated based on the franchise fee in effect for the immediately preceding year, and CITY shall provide OPERATOR with written notice of the adjusted franchise fee not later than thirty (30) days prior to its effective date. (iv) Payment of the franchise fees to CITY by OPERATOR for each term of the AGREEMENT shall be made monthly, due within ten (10) days after execution of this AGREEMENT and thereafter within ten (10) days of the first of the month. 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.
4. RATE SCHEDULE. Exhibit B, entitled “RATE SCHEDULE FOR TOWING AND
STORAGE SERVICES REQUESTED BY THE CATHEDRAL CITY POLICE DEPARTMENT”, of the Agreement is hereby deleted in its entirety and replaced with the Exhibit B, entitled “RATE SCHEDULE FOR TOWING AND STORAGE SERVICES REQUESTED BY THE CATHEDRAL CITY POLICE DEPARTMENT”, (“RATE SCHEDULE”) of this First Amendment, which is attached hereto and incorporated herein by this reference.
5. ANNUAL REVIEW. Section 13, subsection C, of the AGREEMENT is amended in its entirety to read as follows:
. . .
C. The rates set forth in RATE SCHEDULE (Exhibit B) shall apply to OPERATOR’S services for tow and storage commencing on the effective date of this First Amendment. These rates may be reviewed annually by the City Council for possible changes to the rates. Any request by the Operator for a change to the rates set forth in the RATE SCHEDULE (Exhibit B) must be submitted to the City Manager, or their designee, in writing no earlier than ninety (90) calendar days and no later than sixty (60) calendar days before the commencement of the contract year for which the requested change is proposed. The written request must identify 4906-7117-4341 v1
each proposed rate change and include justification supporting the requested adjustment. Submission of a request does not require the City to approve any rate change. Any and all changes to Exhibit B must be approved by the City Council.
6. OBSOLETE LANGUAGE. Section 14 of the AGREEMENT, a section establishing processes for the negotiation of rates for tow and storage services upon the exercising of an option to renew the AGREEMENT, is deleted in its entirety.
7. ELECTRONIC SIGNATURES. This First Amendment may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one First Amendment binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code §16.5, the Parties agree that this First Amendment will be considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature.
8. COUNTERPARTS. This First Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date.
9. ENTIRE AGREEMENT. Except as modified by this First Amendment, all other terms and conditions of Agreement remain the same.
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IN WITNESS WHEREOF the parties hereto have executed this First Amendment the day and year first hereinabove written.
Attest: City of Cathedral City By:
Christina Burton, City Clerk Andrew Firestine, City Manager City of Cathedral City, California
Approved as to Form: Mohica Towing
Eric S. Vail, City Attorney By:
Print Name:
Title:
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First Amended Exhibit “B”
RATE SCHEDULE FOR TOWING AND STORAGE
SERVICES REQUESTED BY THE CATHEDRAL CITY
POLICE DEPARTMENT
The following rate structure shall apply for all towing and storage services requested by the POLICE DEPARTMENT, except those services requested by CITY employees for CITY owned vehicles and subject to Section A (2) herein, and shall be applicable for the term of this AGREEMENT:
A. Base Towing Rate (Class A Tow Truck) $285.00 per hour
(One-Hour Minimum)
1. The base rate per tow truck 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 removal 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, OPERATOR shall charge the CITY the prevailing rate for towing services.
B. Heavy Duty Hourly Towing Rate:
1. Two Axle Category: (Class B Tow Truck) $330.00 per hour
(One-Hour Minimum)
a. The two (2) axle category shall apply to all towed vehicles with a rate capacity of ten thousand (10,000) pounds gross vehicle weight, but shall not apply to vehicles with thirty thousand (30,000) pounds or more gross vehicle weight.
2. Three (3) Axle Category:
(Class C and D Tow Trucks) $440.00 per hour
a. The three (3) axle hourly rate shall apply to all towed vehicles with a rate capacity of thirty thousand (30,000) pounds gross vehicle weight or more; and
b. The hourly rate for all heavy duty towing (two and three axles) shall all commence when the tow truck arrives on the tow scene and includes difficult removal work involving the removal of vehicles from deep ditches and flood control channels, separating two entangled vehicles, 4906-7117-4341 v1
up-righting overturned vehicles, and the use of special equipment and preparation prior to towing.
C. Charges for Related Services:
1. Lock Out: $90.00 (if towing is not required) a. The standard charge for opening locked vehicles is Ninety Dollars ($90.00) where no towing is involved. If towing is involved, there shall be no additional charge for unlocking a locked vehicle.
2. Dolly:
a. There is no additional charge for the use of a dolly in the towing service.
3. After Hours Release Fee:
a. There shall be an after-hours gate fee of Ninety Dollars ($90.00) for anyone desiring release of a vehicle at any time other than normal business hours.
D. Storage: (Per Day)
1. Automobiles $90.00 per day
(For Outside Storage)
$100.00 per day
(For Inside Storage)
2. Motorcycles $90.00 per day
(For Outside Storage)
$100.00 per day
(For Inside Storage)
3. Trailers 15’ or less $50.00 per day
(For outside storage)
4. Trucks, trailers or other vehicles 20 to 30 feet $80.00 per day
5. Trucks, trailers or other vehicles over 30 feet $90.00 per day a. 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 4906-7117-4341 v1
charged for each calendar day, or part thereof, that the vehicle is stored at Contractor’s facility; and
b. Standard rates for trucks that consist of one (1) ton, two (2) axle, and are twenty (20) feet or under shall be Eighty Dollars (80.00) per twenty-four (24) hour period or any portion thereof. The standard rate for trucks that consist of three (3) axles and are over twenty (20) feet shall be One Hundred Dollars ($100.00) per unit, per twenty-four (24) period or any portion thereof.
E. Additional Conditions:
1. The above towing charges shall apply regardless of the location from which the vehicle is towed or the location of the storage area or garage where the vehicle is delivered. Such towing charges shall include the cleaning 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 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. The service of reconnecting the drive shaft, in event such reconnecting is necessary, shall be performed without additional charge; and
6. Should there be a dispute over the charges made for towing and/or storage of vehicles or charges for other services, said dispute shall be governed by the provisions of Section 13 of the AGREEMENT. OPERATOR shall not make any demand upon the owner of the vehicle for a sum in excess of the amount set forth in this Addendum or otherwise re-negotiated by the parties in accordance with Section 14 of this AGREEMENT.
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