Palm Springs City Council
August 26, 2026

ATTACHMENT C
Official Police Towing and
Storage Services

CITY OF PALM SPRINGS
OFFICIAL POLICE TOWING AND STORAGE SERVICES 26Q168

THIS OFFICIAL POLICE TOWING AND STORAGE SERVICE AGREEMENT (the “Agreement”) is made and entered into on this 27th day of August 2026 by and between the City of Palm Springs, a California charter city and municipal corporation, (hereinafter referred to as “City”), and Alfonso Towing Inc. (hereinafter referred to as “Contractor”). Any reference in this Agreement to the “Department” shall be deemed to refer to the Palm Springs Police Department.

RECITALS
A. Pursuant to Chapter 11.82 of the Palm Springs Municipal Code, as now or hereafter amended (the “Tow Ordinance”), City’s Police Department requires the aid and assistance of towing services on a regular basis in the performance of its emergency response and traffic control duties, including response to and the investigation of vehicular accidents.

B. As a means for providing the necessary towing service, City has approved the use of one or more towing service companies who have agreed to contract with City to provide the requisite towing service pursuant to the requirements and performance criteria established by the Tow Ordinance, the City’s Police Department, the terms and conditions contained herein and in the City of Palm Springs Request for Statements of Qualifications (RFQ 04-26) for Towing and Storage of Vehicles, as requested by the Department.

C. Official police tow services provider means a towing company selected by the Department to be used on-call and on a rotational basis for any police emergency or response situation where the use of a tow truck is required.

D. In order for the Contractor to perform as a towing services company for City, the towing service company must enter into a contractual agreement with City and must be designated by City as a towing services company.

E. Contractor owns or leases tow trucks and employs personnel that are capable of providing the desired vehicle towing and storage services to City.

F. City desires to designate Contractor and Contractor desires to accept and be designated by City, as an independent towing services company, for purposes of providing police towing and vehicle impound and storage services for City, pursuant to the terms and conditions set forth in this Agreement.

NOW THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by reference, and the mutual promises, covenants, and conditions contained herein, City and Contractor agree as follows:

AGREEMENT
The Agreement between the parties hereto shall consist of the following: (1) this Agreement; (2) the City of Palm Springs Request for Statements of Qualifications (RFQ 04- 26) for Towing and Storage of Vehicles as Requested by the Palm Springs Police

Department (“SOQ”), including all addenda issued related thereto; and, (3) the signed, original Statement of Qualifications submitted (“Submittal”) by Contractor in response to the SOQ, which shall all be referred to collectively hereinafter as the “Contract Documents.” The SOQ and signed submittal are both hereby incorporated by reference and are made part of this Agreement as though fully set forth herein. All provisions of the SOQ and the Submittal shall be binding on the parties. Should any inconsistency or ambiguity occur or exist in the Contract Documents, the provisions of the Agreement, then the provisions of the SOQ, then the provisions of the Submittal shall control. To ensure the efficient performance of police towing services for the Department, Contractor hereby agrees to the following service provider requirements, specifications, performance criteria, and terms and conditions:

1.0 DEFINITIONS
For purposes of this Agreement, the following words and phrases have the meanings ascribed to them unless the context otherwise requires:
“Administrative cost” means all direct and indirect costs associated with the administration of the provisions of the Tow Ordinance and any agreement entered into pursuant thereto. “Attendant” or “provider” means a trained and/or qualified individual responsible for the operation of a tow truck or vehicle storage facility.
“Contractor” means the Official Police Tow Services Provider under contract with the City pursuant to this Agreement.
“Hearing Officer” means the Chief of Police or a designee of the Chief of Police designated by the Chief of Police to hear any appeal or conduct a hearing pursuant to the provisions of the Tow Ordinance.
“Non-consensual vehicle towing” means towing service:

1. Ordered or requested by the City’s police department or other City employees who are duly authorized by law to remove, impound, or store vehicles.

2. Done without the vehicle owner’s or operator’s knowledge, consent, or authorization, regardless of whether the vehicle is on public or private property. Examples include, but are not limited to, a vehicle for which registration is at least six months past due, or a vehicle driven by persons who are not licensed for that particular class of vehicle, or when an owner or an operator:

a. Is arrested, detained, incapacitated, or physically unable to drive the vehicle, or

b. Fails to either designate or express a preference for a particular towing company.

“Official police tow services provider” means a towing company having a contractual relationship with the City of Palm Springs to provide towing services to the Police Department.

“Operator” means a person who is lawfully entitled to possession of a vehicle. The term includes the owner’s agent.

“Owner” has the same meaning as that that term is defined in Vehicle Code Section 460, or any successor legislation. The term includes the owner’s agent.

“Person” means an individual, company, firm, association, trust, estate, partnership, corporation, limited liability company, or an entity, however organized.

“Police Chief” means the Chief of Police for the City of Palm Springs, or the designee of the Chief of Police.

“Recovery” refers to responding to a vehicle, which is overturned, down an embankment, or otherwise not upright on its wheels.

“Response time” means the elapsed time between the relaying of the tow service request to the Contractor and arrival of the appropriate tow vehicle on the scene.

“Tow truck” is a motor vehicle which has been altered or designed and equipped for and exclusively used in the business of towing vehicles by means of a crane, tow bar, tow line, or dolly, or is otherwise exclusively used to render assistance to other vehicles.

“Towed” means a vehicle hauled, pulled, or transported by a tow truck.

“Towing service” means roadside assistance, towing, storing, lien-selling, or related operation for a damaged, inoperative, abandoned, stolen, recovered, or illegally parked vehicle.

“Vehicle” has the same meaning as that term is defined in California Vehicle Code Section 670, or any successor legislation. A “stored vehicle” or “impounded vehicle” is any vehicle removed from a site and taken to the tow yard at the direction of a Police Department employee and for which a Vehicle Report (currently, CHP form is provided to the Official Police Tow service provider).

2.0 COORDINATION OF WORK

2.1 Representative of Contractor. The following principal of Contractor is designated as being the principal and representative of Contractor authorized to act in its behalf and make all decisions with respect to the Services to be performed under this Agreement: Luis Valverde Flores, Owner. It is expressly understood that the experience, knowledge, education, capability, expertise, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services performed hereunder. The foregoing principal may not be changed by Contractor without prior written approval of the Contract Officer.

2.2 Contract Officer. The Contract Officer shall be the City Manager or his/her designee ("Contract Officer"). Contractor shall be responsible for keeping the Contract Officer fully informed of the progress of the performance of the services.

Contractor shall refer any decisions that must be made by City to the Contract Officer. Unless otherwise specified, any approval of City shall mean the approval of the Contract Officer.

2.3 Prohibition Against Subcontracting or Assignments. The experience, knowledge, capability, expertise, and reputation of Contractor, its principals and employees, were a substantial inducement for City to enter into this Agreement.

Therefore, Contractor shall not assign full or partial performance of this Agreement, nor any monies due, voluntarily or by operation of law, without the prior written consent of City. Contractor shall not contract with any other entity to perform the Services required under this Agreement without the prior written consent of City.

If Contractor is permitted to subcontract any part of this Agreement by City, Contractor shall be responsible to City for the acts and omissions of its subcontractor(s) in the same manner as it is for persons directly employed.

Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the Work will be considered employees of Contractor. City will deal directly with and will make all payments to Contractor. In addition, neither this Agreement nor any interest in this Agreement may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written consent of City. Transfers restricted in this Agreement shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release Contractor or any surety of Contractor from any liability under this Agreement without the express written consent of City.

2.4 Independent Contractor. The legal relationship between the Parties is that of an independent contractor, and nothing shall be deemed to make Contractor a City employee. The following additional provisions shall apply:

2.4.1 During the performance of this Agreement, Contractor and its officers, employees, and agents shall act in an independent capacity and shall not act or represent themselves as City officers or employees. The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Contractor or any of its officers, employees, or agents, except as set forth in this Agreement. Contractor, its officers, employees, or agents shall not maintain an office or any other type of fixed business location at City’s offices. City shall have no voice in the selection, discharge, supervision, or control of Contractor’s employees, servants, representatives, or agents, or in fixing their number, compensation, or hours of service. Contractor shall pay all wages, salaries, and other amounts due its employees in connection with this Agreement and shall be responsible for all reports and obligations respecting them, including but not limited to social security income tax withholding, unemployment compensation, workers’ compensation, and other similar matters. City shall not in any way or for any purpose be deemed to be a partner of Contractor in its business or otherwise a joint venture or a member of any joint enterprise with Contractor.

2.4.2 Contractor shall not have any authority to bind City in any manner. This includes the power to incur any debt, obligation, or liability against City.

2.4.3 No City benefits shall be available to Contractor, its officers, employees, or agents in connection with any performance under this Agreement. Except for professional fees paid to Contractor as provided for in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for the performance of Services under this Agreement. City shall not be liable for compensation or indemnification to Contractor, its officers, employees, or agents, for injury or sickness arising out of performing Services. If for any reason any court or governmental agency determines that the City has financial obligations as otherwise provided for in this Agreement, of any nature relating to salary, taxes, or benefits of Contractor’s officers, employees, servants, representatives, subcontractors, or agents, Contractor shall indemnify City for all such financial obligations.

3. INSURANCE

3.1 Contractor shall procure and maintain, at its sole cost and expense, the insurance described below. The insurance shall be for the duration of this Agreement and includes any extensions, unless otherwise specified in this Agreement. The insurance shall be procured in a form and content satisfactory to City. The insurance shall apply against claims which may arise from the Contractor's performance of Work under this Agreement, including Contractor's agents, representatives, or employees.

In the event the City Manager determines that the
Work or Services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the City Manager or his designee. Contractor shall immediately substitute any insurer whose A.M. Best rating drops below the levels specified in this Agreement. All insurance provided under this Agreement shall be on an occurrence basis. The minimum amount of insurance required shall be as follows:

3.1.1 Commercial Business Automobile Liability, as required by Vehicle Code Section 16500.5. Such coverage must cover all owned, hired, and non-owned vehicles, including leased and rented vehicles. If Contractor does not own any vehicles, this requirement may be satisfied by a non- owned vehicle endorsement to the CGL and Umbrella/Excess policies. The coverage shall include bodily injury and property damage, with a combined single limit of not less than $1,000,000 per occurrence (Combined single limit each accident for bodily injury and property damage). These minimum standards are to include non-owned and hired auto coverage.

3.1.2 Uninsured Motorist, with a combined single limit of not less than the legal minimum.

3.1.3 On-Hook Coverage / Garage Keepers Legal Liability insuring the vehicle in tow, with not less than the following limits based on the size of the tow truck:

A. Class A tow truck $100,000
B. Class B tow truck $100,000

3.1.4 Garage Liability Insurance, including premises and operations coverage for bodily injury and property damage with a combined single limit of not less than $500,000.

3.1.5 Garage Keepers Liability, in an amount not less than the amounts required for On-Hook coverage for vehicles in the care, custody, and control of Contractor in the storage yard.

3.1.6 Workers’ Compensation (Statutory) and Employer’s Liability Insurance.

Contractor shall comply with all of the provisions of the Workers’ Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar state and federal acts or laws applicable; and shall indemnify, defend, and hold harmless City and its Council Members, officers, employees, and agents from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description, including attorneys’ fees and costs incurred by City or presented, brought, or recovered against City, its Council Members, officers, employees, and agents, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by Contractor under this Agreement.

Contractor shall obtain and maintain, in full force and effect throughout the term of this Agreement, workers’ compensation insurance in at least the minimum statutory amounts, and in compliance with all other statutory requirements, as required by the State of California. Contractor agrees to waive and obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies. If Contractor has no employees, Contractor shall complete the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.

3.1.7 Commercial General Liability Insurance (CGL): Contractor shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of commercial general liability insurance written on a per occurrence basis with a combined single limit of at least one million dollars ($1,000,000.00) and two million dollars ($2,000,000.00) general aggregate for bodily injury and property damage including coverages for contractual liability, personal injury, independent contractors, broad form property damage, products and completed operations.

3.1.8 Employer Liability Insurance: Contractor shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of employer liability insurance written on a per occurrence basis with a policy limit of at least one million dollars ($1,000,000.00) for bodily injury or disease.

3.1.9 Those tow truck operators removing a vehicle from a hazardous materials incident to the nearest reasonable and safe stopping location will be

considered to be transporting property subject to normal minimum insurance requirements of Section 34631.5 of the Vehicle Code.

3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager or his/her designee prior to commencing any work or services under this Agreement.

Contractor guarantees payment of all deductibles and self-insured retentions. City reserves the right to reject deductibles or self-insured retentions in excess of $10,000, and the City Manager or his/her designee may require evidence of pending claims and claims history as well as evidence of Contractor’s ability to pay claims for all deductible amounts and self-insured retentions proposed in excess of $10,000.

3.3 Other Insurance Requirements. The following provisions shall apply to the insurance policies required of Contractor under this Agreement:

3.3.1 For any claims related to this Agreement, Contractor’s coverage shall be primary insurance with respect to the City and its officers, council members, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City and its officers, council members, officials, employees, agents, and volunteers shall be in excess of Contractor’s insurance and shall not contribute with it.

3.3.2 Any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to City and its officers, council members, officials, employees, agents, and volunteers.

3.3.3 All insurance coverage and limits provided by Contractor and available or applicable to this Agreement are intended to apply to each insured, including additional insureds, against whom a claim is made or suit is brought to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations shall limit the application of such insurance coverage.

3.3.4 No required insurance coverages may include any limiting endorsement which substantially impairs the coverages set forth in this Agreement (e.g., elimination of contractual liability or reduction of discovery period), unless the endorsement has first been submitted to the City Manager and approved in writing.

3.3.5 Contractor agrees to require its insurer to modify insurance endorsements to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the endorsements. Certificates of insurance will not be accepted in lieu of required endorsements, and submittal of certificates without required endorsements may delay commencement of the Project. It is Contractor’s obligation to ensure timely compliance with all insurance submittal requirements as provided in this Agreement.

3.3.6 Contractor agrees to ensure that subcontractors, and any other parties involved with the Project who are brought onto or involved in the Project by Contractor, provide the same minimum insurance coverage required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with subcontractors and others engaged in the Project will be submitted to the City for review.

3.3.7 Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any insurance requirement in no way imposes any additional obligations on the City nor does it waive any rights in this or any other regard.

3.3.8 Contractor shall provide proof that policies of insurance required in this Agreement, expiring during the term of this Agreement, have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration.

Endorsements as required in this Agreement applicable to the renewing or new coverage shall be provided to City no later than ten (10) days prior to expiration of the lapsing coverage.

3.3.9 Requirements of specific insurance coverage features or limits contained in this section are not intended as limitations on coverage, limits, or other requirements, or as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive.

3.3.10 The requirements in this section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impair the provisions of this section.

3.3.11 Contractor agrees to provide immediate notice to City of any claim or loss against Contractor arising out of the Work performed under this Agreement and for any other claim or loss which may reduce the insurance available to pay claims arising out of this Agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City, or to reduce or dilute insurance available for payment of potential claims.

3.3.12 Contractor agrees that the provisions of this section shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages resulting from the Contractor’s activities or the activities of any person or person for which the Contractor is otherwise responsible.

3.4 Sufficiency of Insurers. Insurance required in this Agreement shall be provided by authorized insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best’s Key Rating of B++, Class VII, or better, unless such requirements are waived in writing by the City Manager or his designee due to unique circumstances.

3.5 Verification of Coverage. Contractor shall furnish City with both certificates of insurance and endorsements, including additional insured endorsements, affecting all of the coverages required by this Agreement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the right to require Contractor’s insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required for Errors and Omissions and Workers’ Compensation policies.

Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Insurance Coverage with an approved Additional Insured Endorsement with the following endorsements stated on the certificate:

1. "The City of Palm Springs, its officials, employees, and agents are named as an additional insured…” ("as respects City of Palm Springs Contract No. " or "for any and all work performed with the City" may be included in this statement).

2. "This insurance is primary and non-contributory over any insurance or self- insurance the City may have..." ("as respects City of Palm Springs Contract No. " or "for any and all work performed with the City" may be included in this statement).

3. "Should any of the above described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named." Language such as, “endeavor to” mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out.

4. Both the Workers’ Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the policies. All certificates of insurance and endorsements are to be received and approved by the City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter. Failure to obtain the required documents prior to the commencement of work shall not waive the Contractor’s obligation to provide them.

4 BREACH OF CONTRACT
Any of the following acts if committed by Contractor during the performance of this Agreement shall be considered a material breach of this Agreement:

4.1 Nonpayment of City any business license fees, VTACR fees, or any other fees required by this Agreement or the Palm Springs Municipal Code.

4.2 Failing to comply with any provision of this Agreement or breach of any rules, regulations, or conditions provided in this Agreement or the Palm Springs Municipal Code.

4.3 Violation of any federal, state or local law by Contractor, any person having any ownership interest in Contractor, or any employee of Contractor.

4.4 Failing to maintain a satisfactory level of service to the City or the public.

4.5 Failing to keep any vehicle towed at the request of the Department in safe condition and good repair.

4.6 Failing to use distinctive coloring, monogram, or insignia on the vehicle.

4.7 Any deviation from the schedule of rates set forth in this Agreement without prior approval of the Chief of Police.

4.8 Passing on, or refusing, for any reason, a tow assignment from the Department three or more times in any calendar month.

4.9 Allowing the insurance coverage required herein to either be withdrawn or lapse or to no longer be in force for any reason.

5 ACTS OR OMISSIONS OF REPRESENTATIVES
It is understood and agreed by the parties that the acts and/or omissions of the owner(s), officers, operators, officials, employees, agents, and representatives of Contractor in the performance of the services and obligations under this Agreement shall constitute the acts and/or omissions of Contractor.

6 ENFORCEMENT OF AGREEMENT

6.1 California Law and Venue. This Agreement shall be construed and interpreted both as to validity and as to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such County, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

6.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual and the result of negotiation

between the Parties. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. The caption headings of the various sections and paragraphs of this Agreement are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.

6.3 Default of Contractor. Contractor’s failure to comply with any provision of this Agreement shall constitute a default.

6.3.1 If the City Manager, or his designee, determines that Contractor is in default in the performance of any of the terms or conditions of this Agreement, he/she shall notify Contractor in writing of such default. Contractor shall have ten (10) days, or such longer period as City may designate, to cure the default by rendering satisfactory performance. In the event Contractor fails to cure its default within such period of time, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice of any remedy to which City may be entitled at law, in equity, or under this Agreement. Contractor shall be liable for all reasonable costs incurred by City as a result of such default.

Compliance with the provisions of this section shall not constitute a waiver of any City right to take legal action in the event that the dispute is not cured, provided that nothing shall limit City’s right to terminate this Agreement without cause under Section 5.3.

6.3.2 If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of the preceding subsection, take over the work and prosecute the same to completion by contract or otherwise. The Contractor shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the charges as otherwise allowed herein (provided that the City shall use reasonable efforts to mitigate such damages). The City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated. The withholding or failure to withhold payments to Contractor shall not limit Contractor’s liability for completion of the Services as provided in this Agreement.

6.4 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. Any waiver by the Parties of any default or breach of any covenant, condition, or term contained in this Agreement, shall not be construed to be a waiver of any subsequent or other default or breach, nor shall failure by the Parties to require exact, full, and complete compliance with any of the covenants, conditions, or terms contained in this Agreement be construed as changing the terms of this Agreement in any manner or preventing the Parties from enforcing the full provisions.

6.5 Rights and Remedies Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

6.6 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct, remedy or recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

6.7 Attorney Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non-judicial proceeding, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non-prevailing Party all reasonable costs and expenses. These include but are not limited to reasonable attorney fees, expert contractor fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding. To the extent authorized by law, in the event of a dismissal by the plaintiff or petitioner of the litigation or non-judicial proceeding within thirty (30) days of the date set for trial or hearing, the other Party shall be deemed to be the prevailing Party in such litigation or proceeding.

7 COMPLAINT PROCESS; TERMINATION FOR VERIFIED COMPLAINTS

7.1 Acknowledgement of Complaint Procedure. Contractor hereby acknowledges and agrees that its performance under this Agreement shall be subject to the City Police Department’s (the “Department”) internal complaint and grievance procedure (the “Complaint Procedure”), which permits members of the public to submit complaints concerning Contractor’s provision of towing and storage services.

7.2 Investigation and Recordkeeping. The Department shall have the sole discretion to receive, investigate, and evaluate complaints submitted under the Complaint Procedure. The Department shall maintain records of all complaints, including findings as to whether any complaint is determined to be verified and meritorious.

Contractor shall cooperate fully with any inquiry or investigation undertaken by the Department in connection with such complaints, including the production of records and the reasonable availability of personnel for interviews.

7.3 Grounds for Termination. The receipt of verified and meritorious complaints, in such number or nature as the Department reasonably determines evidences a pattern of misconduct, substandard performance, or other failure to comply with the terms of the Agreement or applicable law, shall constitute grounds for termination of this Agreement pursuant to Section 11.82.150 of the City of Palm Springs Municipal Code.

7.4 Reservation of Rights. Nothing herein shall be construed to limit or restrict the City’s authority under Section 11.82.150 of the City of Palm Springs Municipal Code, or any other provision of this Agreement, to suspend, revoke, or terminate this Agreement or to exercise any other remedy available at law or in equity.

8 NOTICE
Any notice, demand, request, consent, approval, or communication that either party desires, or is required to give to the other party or any other person shall be in writing. All notices shall be personally delivered, sent by pre-paid First Class U.S. Mail, registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by facsimile with attached evidence of completed transmission. All notices shall be deemed received upon the earlier of (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) five (5) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by facsimile. Any notice, request, demand, direction, or other communication sent by facsimile must be confirmed within forty-eight (48) hours by letter mailed or delivered. Other forms of electronic transmission such as e-mails, text messages, and instant messages are not acceptable manners of notice required hereunder. Notices or other communications shall be addressed as follows:

To City: City of Palm Springs
Attention: City Manager & City
Clerk 3200 E. Tahquitz Canyon
Way Palm springs, California
92262 Telephone: (760)323-8204
Facsimile: (760) 323-8332

To Contractor: Alfonso Towing Inc.

Attention: Luis Valverde Flores
17448 Ben Mar Rd.

Desert Hot Springs, CA 92240
Telephone: (760) 993-7518

9 CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION

9.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor-in-interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

9.2 Conflict of Interest. Contractor acknowledges that no officer or employee of the City has or shall have any direct or indirect financial interest in this Agreement nor shall Contractor enter into any agreement of any kind with any such officer or employee during the term of this Agreement and for one year thereafter. Contractor warrants that Contractor has not paid or given, and will not pay or give, any third party any money or other consideration in exchange for obtaining this Agreement.

9.3 Covenant Against Discrimination. In connection with its performance under this Agreement, Contractor shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin (i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). Contractor shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a

condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Contractor certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Contractor activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Contractor is in full compliance with the provisions of Palm Springs Municipal Code Section 7.05.02, including without limitation the provision of benefits, relating to non-discrimination in city contracting.

10 SEVERABILITY
Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If any provision of this Agreement shall be determined to be invalid by a final judgment or decree of a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the reminder of that provision, or the remaining provisions of this Agreement unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

11 INTEGRATION
This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter in this Agreement.

12 AMENDMENT
No modification, amendment, addition to, deletion, or alteration of the terms of this Agreement, whether written or oral, shall be valid unless made in writing and formally approved and executed by all parties.

13 NO WAIVER
No delay or omission in the exercise of any right or remedy available hereunder shall impair such right or remedy or be construed as a waiver. Any waiver of any default or condition hereunder must be in writing and shall not be construed as a waiver of any other default concerning the same or any other provision of this Agreement.

The waiver by City of any breach by Contractor of any of the provisions of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach or default by Contractor either of the same or a different provision of this Agreement. 14 THIRD PARTY BENEFICIARIES
Except as may be expressly provided for in this Agreement, nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third-party beneficiary or otherwise, upon any entity or person not a party to this Agreement.
15 SUCCESSORS IN INTEREST

This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and assignees.
16 CORPORATE AUTHORITY
Each of the undersigned represents and warrants that (i) the Party for which he or she is executing this Agreement is duly authorized and existing, (ii) he or she is duly authorized to execute and deliver this Agreement on behalf of the Party for which he or she is signing, (iii) by so executing this Agreement, the Party for which he or she is signing is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which the Party for which he or she is signing is bound.
17 EFFECTIVE DATE
The Effective Date of the Agreement shall be that which is entered at the top of the first page of this agreement, where upon both parties have fully executed the documents herein.

SIGNATURES ON NEXT PAGE

SIGNATURE PAGE TO CONTRACT SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND ALFONSO TOWING INC.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.

CONTRACTOR:

By: ____________________________ By: ________________________________ Signature Signature
(2nd signature required for Corporations)

Date: Date:

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No.

APPROVED AS TO FORM: ATTEST:

By: ___________________________ By: _______________________________ City Attorney City Clerk

APPROVED:

By: _______________________________ Date:

City Manager – over $150,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000

EXHIBIT “A”

SCOPE OF SERVICES

1.1 Contractor shall perform vehicle towing, impound, and storage services as directed by the Department and in addition such other services as provided in this Agreement, and shall provide necessary storage facilities, tow services, labor, materials, equipment, machinery, and tools.

1.2. Contractor shall comply with all federal, state, and local laws, ordinances, rules, and regulations that regulate tow units and the impound, towing, storage, selling, or junking of vehicles. Specific services include, but are not limited to, towing and storage of vehicles involved in accidents or disabled for other causes (when alternate towing is either not appropriate or is not requested by the owner or operator of the vehicle) and towing and storing of vehicles which for other reasons are within the jurisdiction of the Palm Springs Police Department, including impounded/forfeited vehicles under the provisions of California Vehicle Code 14602.6 and 14607.6. Contractor shall be able to properly conduct a lien sale as outlined in Division 11, Chapter 10, Article 2, beginning with Section 22851 of the California Vehicle Code.

1.3. Contractor shall also provide the following special services to the City, at no charge to City:

1.3.1 Contractor shall participate in a monthly rotational tow schedule for VillageFest, with the department assigning a tow company each month and providing advanced notice. Contractors must maintain detailed records of all VillageFest tows, including the date, time, and storage location (if applicable), and submit a monthly report detailing all tows and any fee waivers applied
Towing services shall be provided in accordance with the City’s official towing rotation. Towing operations will commence one (1) hour and thirty (30) minutes prior to the start of VillageFest. Any vehicle remaining within the designated event boundaries may be subject to towing at the sole discretion of a Department officer, with no vehicle removed without explicit officer authorization.

Towed vehicles shall first be transported to a designated drop location, where they will remain until (30) thirty minutes past the official start time of VillageFest. If the registered owner or authorized agent claims the vehicle during this holding period, they shall be charged for one (1) hour of towing service, and all City administrative fees shall be waived. The tow operator shall be responsible for facilitating vehicle release during this time.

Once the holding period expires, all unclaimed vehicles shall be relocated to the Contractor’s storage facility, where standard storage fees shall apply. Registered owners or authorized agents of vehicles towed from VillageFest shall be charged for one (1) hour of towing service and all City administrative fees shall be waived.

After hours gate fees would apply if the owner/agent retrieves the vehicle outside regular business hours. Contractors must ensure full compliance with all record- keeping, reporting, and operational requirements as set forth by the Department.

1.3.2 Towing services necessary to support the City’s Annual Special Events, which require street closures. On a rotational basis, as needed and determined by the Department, Contractor shall remove cars from areas within the designated boundaries, coordinating with Special Events staff and the Department.

Annual Special Events include, but are not limited to the following:

1. Homecoming Parade

2. Pride Block Parties

3. Pride Festival

4. Pride Parade

5. Veteran’s Day Parade

6. Festival of Lights Parade

7. Tour de Palm Springs

8. Black History Parade

Contractors will be utilized on a rotational basis for each individual tow during special events. For parades, any vehicles parked along the designated parade route that require removal will also be towed on a rotational basis prior to the start of the event. Vehicles towed from special event routes requiring street closures shall be subject to standard towing and storage fees, however, all City administrative costs shall be waived.

Once the route is cleared and the parade is underway, one Contractor will remain on standby for the entirety of the event to provide tow services such as a float, vehicle, or equipment breakdown. Standby assignments will be rotated for each parade to ensure equity among all participating Contractors. The assigned Contractor shall have a tow vehicle staged within the immediate vicinity of the event to ensure a prompt response. The Department will determine standby locations and response protocols to support efficient vehicle removal while minimizing disruption to the event.

1.3.3 As-needed abatement of vehicles from private property at the direction of the City’s Code Enforcement Officers in accordance with the City’s Abandoned Vehicle Abatement Program in accordance with the terms and conditions set forth in Title 11 of the City of Palm Springs Municipal Code, “Peace, Morals and Safety”, Chapter 11.80, “Abandoned Vehicles” which is incorporated herein by reference and may be found online at: City of Palm Springs, CA ABANDONED VEHICLES.

No charge shall be assessed against City or the owner of any vehicle that is towed, stored, or dismantled under the provisions of the Abandoned Vehicle Abatement Program.

1.4. Contractor is hereby designated as an authorized official police tow service provider for City by the Chief of Police. All trucks, personnel, and equipment used by Contractor in the performance of this Agreement shall be owned by or leased to Contractor and shall be subject to all provisions and performance standards set forth herein.

1.5. Contractor acknowledges and agrees that this Agreement to provide tow services as set forth herein is non-exclusive. City intends to concurrently contract with other designated tow service providers. City shall utilize the services of each tow service provider as City, in its sole discretion, deems necessary and appropriate.

1.6. Consideration : In consideration of Contractor’s agreement to perform the services provided for herein, City agrees that throughout the term of this Agreement, Contractor shall have:

1.7. The right to tow, impound, and store vehicles at the direction of the Department, subject to the Department’s rotational call-for-service system, as it may be amended from time to time, at the Department’s sole discretion, and the right to identify itself as an official police tow service provider for City.

1.8. Provided, however, that nothing contained herein shall deprive the owner or operator of a vehicle from requesting and receiving towing services from a person or entity other than Contractor.

1.9. Provided, however, that when, in the opinion of the Department, an emergency exists or where Contractor is either unable or unwilling for any reason to provide adequate or timely tow service, then the Department shall have the right to call other qualified tow services. Under such circumstances, the decision to call another tow service shall be at the exclusive discretion of the Department.

2. Term and Termination

2.1 This Agreement shall remain in effect for three (3) years from the Effective Date. This Agreement may be reviewed at the conclusion of the initial three (3) year period and extended for up to two (2) one (1) year periods by mutual written agreement of the parties.

2.2 Subject to the requirements of Palm Springs Municipal Code Section 11.82.150, as it may be amended from time to time, this Agreement may be cancelled, revoked, and/or suspended by City at any time during the three (3) year term, or the subsequent one (1) year optional terms, if extended, upon Contractor’s breach of this Agreement. In the event of termination for cause by City, Contractor shall be compensated for those services that have been fully and adequately completed and accepted by the Department as of the date of termination. Termination of this Agreement for cause may be considered by City in determining whether to enter into future contracts with Contractor.

2.3 This Agreement may also be cancelled without cause upon thirty (30) days written notice provided by the City or upon ninety (90) day written notice from the Contractor.

In the event that City should cancel, revoke, or suspend Contractor’s work pursuant to this Section 2.3, Contractor shall be entitled to payment for services fully and adequately provided hereunder prior to the effective date of the cancellation, revocation, or suspension. Contractor shall provide documentation deemed adequate by the Department to show the services actually completed by Contractor prior to the effective date of termination. Contractor’s sole remedy for City’s cancellation, revocation, or suspension of work pursuant to this Section 2.3 shall be the payment of funds as expressly provided in this Section 2.3.

2.4 In the event this Agreement is terminated, in whole or in part, as provided by this Section 2, City may procure, upon such terms and in such manner as it deems appropriate, services similar to those terminated.

2.5 The rights and remedies of the parties provided in this Section 2 are in addition to any other rights and remedies provided by law or under this Agreement, including, but not limited to, those rights and remedies set forth in Palm Springs Municipal Code Section 11.82.150, as it may be amended.

3. Location

3.1 All storage facilities that are utilized to store police-stored or impounded vehicles by Contractor shall be located in or within ten (10) miles of the corporate city limits of the city of Palm Springs. For purposes of measuring the ten (10) miles, distance shall be measured in driving distance.

3.2 All vehicles stored or impounded at the direction of the Department shall be

towed, without delay, directly to Contractor’s impound and storage facilities, unless the Department or other person legally in charge of the vehicle requests that it be taken to some other location.

3.3 Any change in Contractor’s operating/facility locations shall be reported, in writing, to the Department at least thirty (30) days prior to making such change

4. Personnel

4.1 Contractor shall ensure that its employees and tow truck operators are qualified and competent employees of the company and are sufficiently trained and capable to ensure the safe and proper discharge of their service responsibilities. All tow truck operators shall be trained and proficient in the use of the tow truck and related equipment, including, but not limited to, the procedures necessary for the safe towing and recovery of the various types of vehicles serviced through the Department rotation program. Contractor shall ensure that each tow truck operator and employee providing dispatch services for Contractor participate in one (1) customer service training offered by, but not limited to, a local community college or tow industry association, at least once every two years. Completion of a TSAAC/CHP approved certification course would be considered as acceptable option.

4.2 All tow truck operators shall be required to have all necessary certificates required by the State of California to operate a tow truck, including a valid California Tow Truck Driver Certification and California Driver’s Licenses in the proper class pursuant to Vehicle Code Sections 12520 and 12804.9(b). Within ten (10) days of the Effective Date of this Agreement, and annually thereafter (within ten (10) days of the anniversary of the Effective Date of this Agreement), Contractor shall provide a list of its tow truck operators and a CHP Form 234F (Tow Operator/Driver Information) for each tow truck operator and such other executed releases and authorizations as the City may require to allow the Department to conduct a background check, including, but not limited to a State of California Department of Motor Vehicles (“DMV”) printout, and fingerprints for each tow truck operator to be utilized in Department tow program. Any subsequent employment of a new tow truck operator shall be reported in writing to the Department immediately, including submittal of the above-referenced materials.

4.3 All tow truck operators shall be required to have a safe driving record, be 18 years of age or older, and be subject to driving record and criminal background checks by the Department.

4.4 Contractor shall have an alcohol and drug program that includes, at a minimum, an alcohol and drug free workplace policy, and a tow truck operator alcohol/drug- testing program that complies with the U.S. Department of Transportation requirements to the extent allowed by law, including random alcohol and drug testing. Any tow truck operator found working under the influence of alcohol or drugs shall be immediately removed from operating a tow truck and from providing any further services pursuant to this Agreement. The alcohol and drug program shall meet the following requirements

a. A contract with a program administrator and authorized lab certified by the U.S. Department of Transportation; and
b. Procedures and components substantially as in Part 40 of Title 49 of the Code of Federal Regulations for pre-employment; and
c. Procedures and components substantially as in Part 382 of Title 49 of the Code of Federal Regulations for rehabilitation, return-to-duty and follow up testing; and
d. Procedures and components for random testing following U.S. Department of Transportation guidelines, and additional tests as required following accidents, rehabilitation, return-to-service, and other circumstances providing reasonable suspicion to test; and
e. Monthly reports of the random testing component shall be filed with the Department by the program administrator no later than the 10th day following the end of the previous monthly reporting period; and
f. Contractor and program administrator’s alcohol and drug program records shall be made available to the Department upon request; and g. Drivers must show a valid California driver’s license at the time and place of testing; and
h. All test results are kept confidential except that the Department is authorized to receive copies for its administrative purposes, and except as otherwise authorized or required by law.

4.5 Contractor shall participate in the California Department of Motor Vehicles (DMV) Employer Pull Notice Program, or any similar program as may be approved by the Department

4.6 Contractor shall not employ in the performance of services pursuant to this Agreement any tow truck operator convicted of or having pled nolo contendere to a crime involving a stolen vehicle, stolen property, violence, drugs or moral turpitude, fraud related to the towing business, a violation of any of the provisions of Vehicle Code Section 22658, or misdemeanor or felony driving while under the influence of alcohol or drugs, or the crimes listed in Vehicle Code Section 13377.

If any tow truck operator is charged with any of the above-listed crimes, Contractor shall immediately suspend that operator from duties under this Agreement pending the outcome of the criminal case.

4.7 Tow truck operators shall maintain acceptable standards of dress, including uniforms, and cleanliness while on duty in the community.

4.8 Tow truck operators shall fully cooperate with and abide by the instructions of the Department’s officers.

4.9 If any tow truck operator becomes ineligible to provide operator services under t his Agreement, Contractor shall immediately notify the Department in writing of such ineligibility and the reason(s) therefore.

4.10 If requested by the Department, all tow truck operators shall obtain from the Department a clip-on identification tag, which such operator shall wear at all times when performing services pursuant to this Agreement in order to allow ease of tow truck operator identification.

4.11 While involved in the Department rotation tow operations or related business, Contractor and its employees shall refrain from any act(s) of misconduct, including but not limited to, any of the following enumerated acts. At the sole discretion of the Police Chief or his/her designee, non-compliance with this section may constitute grounds for disciplinary action.

4.12 Rude or discourteous behavior.

4.13 Lack of service, selective service, or refusal to provide service which Contractor should be capable of performing.

4.14 Any act of sexual harassment or sexual impropriety.

4.15 Unsafe driving practices.

4.16 Exhibiting any objective symptoms of alcohol and/or drug use.

4.17 Appearing at the scene of a Department rotation tow call with the odor of an alcoholic beverage or cannabis emitting from his/her breath. The truck operators shall submit to a preliminary alcohol and/or cannabis screening test upon demand of the Department.

5. Tow Service Duties
After being dispatched to the scene by the Department, Contractor shall comply with the following:

5.1 Not move nor attach a tow truck to any vehicle until instructed to do so by the investigating officer of the Department;

5.2 Cooperate with the investigating officer of the Department in removing hazards and/or illegally parked vehicles, and in the storing or impounding of such vehicles as requested. It is the duty of the police officers to determine when a vehicle should be impounded or moved, and the tow truck attendant shall abide by their decisions;

5.3 On collision calls, clean-up and remove all debris from the accident scene, including, but not limited to, clean-up and removal of all hazardous materials/vehicle fluids in the street with absorbent material, as directed by Department officers and Section 27700 of the California Vehicle Code.

5.4 Provide the owner or driver of towed vehicles (when present at scene) with an Contractor business card indicating where vehicle will be stored or impounded (including address and telephone number); and

5.5 Deliver upon request all personal property located within stored or impounded vehicles upon: (a) presentation of proper identification; and (b) in the case of impounded vehicles, written authorization by the Department.

6. Response to call and response time

6.1 Contractor shall be placed on a “rotation list” in an initial order to be determined by the Police Chief. The rotation list shall be used whenever a driver or owner of a disabled vehicle is unable to specify a particular garage or tow service, or whenever a Department employee stores or impounds a vehicle and the driver or owner is not present or is not consulted.

6.2 Contractor shall be called in response to a Department request upon the occurrence of its turn in rotation. Whenever Contractor cannot, for any reason, respond with any equipment needed to accomplish the requested service within

the response time specified herein, it shall be passed over and the next official police tow service provider on the list will be called. Contractor shall become eligible to provide service again only in its next turn in rotation. Whenever a Department employee determines that an emergency exists because Contractor is unable, for any reason, to provide adequate tow service, the Department employee shall have the right to have such services performed by any other means available. In the event a Department employee cancels a rotation tow due to no fault on the part of the Contractor, Contractor shall be placed on the top of the rotation list for the next requested tow.

6.3 When Contractor will be temporarily unavailable to provide services due to a preplanned/scheduled activity (i.e., vacations, maintenance, medical leave, etc.), Contractor shall notify the Department at least twenty-four (24) hours prior to the date that services will be unavailable, noting times and dates of the unavailability.

6.4 When responding to a Department call, Contractor shall perform the towing or service required for which it was called. This requirement may be waived by the Department officer in charge, if the requested equipment is inadequate for the service to be performed; provided, however, if Contractor supplies the wrong equipment, it shall be placed upon the bottom of the Department rotation list.

6.5 Contractor shall not respond to a Department call assigned to another official police tow service provider unless requested to do so by the Department. If the Contractor responding to a Department call requires the assistance of an additional tow truck at the scene, Contractor may, subject to the prior approval of the Department officer in charge, request the official police tow service provider next on the Department rotation list to assist it.

6.6 Contractor’s dispatcher shall notify the Department when a tow vehicle cannot respond immediately, give the reason for the delay, and an estimated time of arrival. In the event of an additional delay, Contractor’s dispatcher shall again notify the Department and give the new estimated time of arrival. To ensure a timely response, the Department, in its sole discretion, may cancel any call-for- service because of a response delay and may request service from the next official police tow service in the rotation.

6.7 If the Contractor’s telephone or radio is not promptly answered, or if the line is busy when called by the Department after two (2) attempts, Contractor will be bypassed, and the Department shall select the next official police tow service provider in the rotation.

6.8 If, while rendering assistance in response to a Department call for towing, a second Department call for towing is generated to Contractor’s operator, Contractor shall, before responding to the second call, ensure that all vehicles at the first site are sufficiently clear of the roadway so that no obstruction to normal traffic exists. Once the second call is handled to conclusion, the vehicles at the first site may be towed as necessary.

6.9 Contractor agrees that, for any thirty day period, the average response time pursuant to requests for tow service by the Department within the City of Palm Springs shall not exceed fifteen minutes. Contractor also agrees that the maximum response time for any single request for tow service by the Department shall not exceed twenty minutes.

7. Equipment Standards

7.1 Contractor shall equip and maintain tow trucks covered under the Agreement in accordance with the provisions set forth in the California Vehicle Code, Title 13 of the California Code of Regulations, the specifications contained in this Agreement, and in a manner consistent with industry standards and practices.

7.2 All recovery vehicles (wreckers) shall have an extendable/retractable recovery boom meeting the specifications contained in this Agreement, and the most recent electronic version of the CHP 234B, Tow Truck Inspection Guide.

7.3 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.

7.4 An auto-loader without an extendable/retractable boom is an additional unit and shall not be used for recovery.

7.5 For purposes of the Agreement, recovery is defined as a vehicle, which is overturned, down an embankment, or otherwise not upright on its wheels.

7.6 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 unloaded front axle weight on the front axle when towing.

7.7 There are two (2) classes of tow trucks covered under this Agreement a. Class A- Light Duty: Contractor shall maintain a minimum of one tow truck, which has a manufacturer’s GVWR of at least 14,000 pounds. Class A 4- wheel drive tow trucks with a GVWR of less than 14,000 pounds may be listed as special equipment on the 234A. These tow trucks shall be used only for recoveries requiring the use of 4-wheel drive.
b. Class B - Medium Duty: Contractor shall maintain a minimum of 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.

7.8 For purposes of the Agreement, a “low-boy trailer” is considered special equipment.

8. General Equipment Specifications

8.1 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.

8.2 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.

8.3 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).

8.4 The structural design of the recovery equipment must have a higher load capacity than the performance ratings.

8.5 Winches shall conform to, or exceed, the specifications set forth by the Recovery Equipment Rating, Society of Automotive Engineers (SAE) Handbook, and SAE J706.

8.6 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.

8.7 Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions.

9. Communications and Operational Requirements

9.1 Contractor shall maintain a twenty-four (24) hour per day telephone answering service to receive calls from the public and the Department.

9.2 Contractor shall require its telephone answering service to retain data and records relating to the City’s requests for towing services on premises for the term of this Agreement.

9.3 Contractor shall require its answering service to promptly accept and relay requests for towing services made by the City. Failure or refusal to promptly relay the City’s requests for towing services shall constitute failure to comply the requirements, terms and conditions of this Agreement and may result in suspension or termination of the Agreement.

9.4 Contractor shall install and maintain, to the satisfaction of City, at all times during the term of this Agreement, radio or cellular telephone transmission and reception contact between the Contractor communication contact shall be maintained twenty-four (24) hours a day, seven (7) days a week.

9.5 Contractor shall provide to the Department a list of telephone numbers to be called in order of priority, and immediately upon any change in such telephone numbers or in the priority thereof shall notify the Department in writing with the effective date of such change.

9.6 Contractor’s business office shall be located within its storage yard and attended at all times for servicing the public and the City from 8:00 a.m. to 5:00 p.m., Monday through Friday, except for the holidays of January 1, known as New Year’s Day; third Monday in January, known as Dr. Martin Luther King Jr.’s Birthday; third Monday in February, known as Washington’s Birthday/President’s Day; last Monday in May, known as Memorial Day; July 4, known as Independence Day; first Monday in September, known as Labor Day; the second Monday in October, known as Columbus Day; November 11, known as Veteran’s Day; fourth Thursday in November, known as Thanksgiving Day; and December 25, known as Christmas Day. If January 1, July 4, November 11 or December 25 fall upon a Sunday, the Monday following is a holiday and if they fall upon Saturday, the preceding Friday is a holiday. Contractor may make an additional charge for after normal business hours release of vehicles consistent with the guidelines or provisions of the City Council resolution establishing fees and charges for tow services.

9.7 Contractor shall provide twenty-four (24) hour towing service, seven (7) days a week, during the term of this Agreement.

9.8 Contractor shall ensure that there will be an employee on call capable of being present or available for releasing impounded or stored vehicles to the public twenty-four (24) hours a day, seven (7) days a week.

10. Vehicle Identification

10.1 Contractor’s vehicles shall display identification signs, in compliance with Section 27907 of the California Vehicle Code. Contractor shall not display any signs or advertising that indicate the Contractor is an official towing service or police garage of the City.

10.2 Contractor shall not, through their advertisements or otherwise, in any way publicize any official or other business connection with City, nor shall Contractor advertise any address or telephone number of the City as a location to call for vehicle towing and storage service.

11. Storage service responsibilities

11.1 Contractor shall be responsible for all vehicles, accessories, and equipment thereon, and all personal property therein, stored by it. It shall be Contractor’s duty to protect such stored vehicles, accessories, equipment, and property against all loss, damage by fire, theft, or other causes. In the event of loss or damage to a stored vehicle, its accessories or equipment, or personal property contained in the vehicle, Contractor shall be responsible to the owner for all losses or damages.

11.2 Contractor shall be responsible for the acts and omissions of its employees while on duty. Contractor shall be responsible for any property damage caused by the active or passive negligence of Contractor or its employees.

11.3 Contractor shall abide by all federal, state, and local laws pertaining to the disposal of unclaimed vehicles and shall not use any vehicle stored or impounded as a result of tow ordered by the Department for any purpose except as expressly authorized under this Agreement .

11.4 All vehicles stored or impounded by Contractor as a result of a tow ordered by the Department shall be towed directly to an official storage lot, unless the Department or other person legally in charge of the vehicle requests that it be taken to some other location. Vehicle release fees shall be limited to those established by resolution of the City Council of the City of Palm Springs.

11.5 Contractor shall release vehicles stored or impounded by the Department pursuant to authorization provided by appropriate employees of the Department. Such authorization shall be in writing on a form provided by the Department or may be given verbally by employees authorized by the Department to provide verbal releases.

11.6 All vehicles stored or impounded as a result of a tow ordered by the Department shall be made available during business hours to the owner of the vehicle or his representative, or any authorized insurance agent, insurance adjuster, or any body shop or car dealer, for the purpose of estimating or appraising damages, except vehicles with a “police hold”.

11.7 Personal property in vehicles stored by Contractor shall not be disposed of to defray any charges for the towing or storage of a vehicle; and, if not called for by the owner within thirty (30) days after date of notice by the Department of impound or storage, all such property shall be disposed of in accordance with all State, County and Municipal laws, statutes, ordinances and regulations, including without

limitation, Vehicle Code Section 10652 (reporting storage of vehicles over thirty days).

11.8 Contractor shall take whatever actions and precautions necessary to protect the engines, trunks and interior areas of all stored or impounded vehicles against the elements by rolling up windows, closing doors, trunk lids and hoods, and, if necessary, covering the vehicle or parts thereof exposed to the weather with plastic, canvas or other waterproof covering.

11.9 Contractor shall park all stored or impounded vehicles in such a manner as to prevent any damage while other vehicles are being moved or parked in the vicinity of said vehicles.

11.10 Contractor is authorized and encouraged to take photographs of vehicles towed under this Agreement for the sole purpose of documenting the condition of the vehicle, including any damage or lack thereof, at the time of the tow. Such photographs shall be treated as confidential and may only be disclosed to the vehicle owner or other interested parties, as determined by the Department in its sole and absolute discretion. Under no circumstances shall Contractor post, publish, or otherwise disseminate such photographs—whether in print, online, through social media, or by any other means—without the prior written consent of the Department.

12. Storage Facility Standards

12.1 Contractor shall provide a secure and environmentally safe vehicle storage facility with a minimum of fifteen thousand (15,000) usable square feet.

12.2 The vehicles storage facility must be located in or within ten (10) miles of the corporate city limits of the city of Palm Springs. For purposes of measuring the ten (10) miles, distance shall be measured in driving distance.

12.3 The vehicle storage facility must be completely enclosed by a six foot high wall or fence with no holes, gaps or other unsecured openings, and a gate. The wall or fence shall have two or more strands of barbed wire installed in such a manner as to discourage access over the top of the wall or fence, or the wall shall be a minimum of eight feet in height without barbed wire. All gates into the storage yard shall meet the same standards required of the wall or fence. Any damage to walls, fences or gates which allows unauthorized access must be repaired within twenty- four hours.

12.4 The vehicle storage facility shall have adequate lighting, and comply with all applicable building codes, zoning regulations, environmental laws and regulations, and any and all the applicable laws, rules and regulations established by federal, state, county and/or city governments.

12.5 Contractor shall not perform any work in the vehicle storage facility upon any vehicle stored or impounded by the Department without first obtaining authorization from the Department and the registered owner of the vehicle.

12.6 Contractor shall not dispose of any impounded vehicle, through any process whatsoever, without first obtaining authorization from the Department. Nothing herein shall be deemed to prevent or prohibit Contractor from commencing the lien sale process on any such impounded vehicle.

12.7 The Contractor must install and maintain a continuously recording video surveillance system, as approved by the Chief of Police or their designee. This system shall, at the minimum, monitor the entirety of indoor and outdoor vehicle storage lots, any points of ingress or egress to the establishment, and all locations within the establishment open to the public. Signage notifying the public of the presence of video surveillance at these locations shall be installed at all points of ingress. Images captured by the surveillance system shall be retained for a period of no less than thirty (30) days and must be made accessible to the Chief of Police or their designee upon request. Copies of footage shall be made available to the Chief of Police or his designee no later than two (2) business days after a request for the footage is made.

12.8 Throughout the term of this Agreement, Contractor shall maintain all offices, storage facilities and equipment in a neat, clean and organized manner.

12.9 All Contractor’s records, equipment, and storage facilities will be subject to periodic checks by the Department or other City investigators during normal business hours. Contractor shall provide access to employees of City at any time during normal business hours, for the purpose of inspection or audit to determine that the objectives and conditions of this Agreement are being fulfilled.

13. Reports and Records

13.1 Accounting Records: Contractor shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and expenditures pertaining in any way to this Agreement. Contractor shall keep such books and records as shall be necessary to properly perform the Services required by this Agreement and to enable the City to evaluate the performance of such Services. The City shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

13.2 Reports: Contractor shall periodically prepare and submit to the City such reports concerning the performance of the Services required by this Agreement, or as the City shall require.

13.3 Ownership of Documents: All reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Contractor, its employees, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be promptly delivered to City upon request of the City or upon the termination of this Agreement. Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials. Any use of such completed documents for other projects and/or use of incomplete documents without specific written authorization by the Contractor will be at the City's sole risk and without liability to Contractor, and the City shall indemnify the Contractor for all resulting damages. Contractor may retain copies of such documents for their own use. Contractor shall have an unrestricted right to use the concepts embodied in this Agreement. Contractor shall ensure that all its subcontractors shall provide for assignment to City of any documents or materials prepared by them. In the

event Contractor fails to secure such assignment, Contractor shall indemnify City for all resulting damages.

13.4 Release of Documents. All reports, records, documents, and other materials prepared by Contractor in the performance of services under this Agreement shall not be released publicly without the prior written approval of the City. All information gained by Contractor in the performance of this Agreement shall be considered confidential and shall not be released by Contractor without City’s prior written authorization.

13.5 Audit and Inspection of Records. After receipt of reasonable notice and during the regular business hours of City, Contractor shall provide City, or other agents of City, such access to Contractor’s books, records, payroll documents, and facilities as City deems necessary to examine, copy, audit, and inspect all accounting books, records, work data, documents, and activities directly related to Contractor’s performance under this Agreement. Contractor shall maintain such books, records, data, and documents in accordance with generally accepted accounting principles and shall clearly identify and make such items readily accessible to such parties during the term of this Agreement and for a period of three (3) years from the date of final payment by City hereunder.

13.6 Contractor shall comply with the following specific requirements relating to reports and records of its tow services:
a. Contractor shall record and log the time each call is received, the time of dispatch, the time of arrival, and the time in or of the end of service on every tow truck assignment Such records shall be submitted electronically with the monthly VTACR Fee payment, and available and open to City examination. b. Contractor shall maintain at its place of business, complete and accurate records of all tow services furnished under this Agreement, including a description of all vehicles towed, impounded, or stored at the request of the Department, the nature of services performed with respect to each tow for each towing assignment, and the itemized charges accrued on each vehicle for towing and storage.

13.7 Record systems must provide for immediate access, upon inquiry by the Department, to the following information.
a. Locate vehicle from the Department record number;
b. Locate vehicle from license number only
c. Locate vehicle from make, color, date, and location of impound. d. Date of filing all lien sale documents with DMV.

13.8 Contractor shall submit a monthly report to the Chief of Police and Finance Director, which shall include the following information

a. Total Department impounds and storages;
b. Number of times dispatched by the Department;
c. Number of calls for service resulting in impounds; d. Number of vehicles sold on lien sale under authority of Civil Code Section 3072, and as that law may be amended from time to time; e. Number of vehicles sold on lien sale under authority of Civil Code Section 3073, and as that law may be amended from time to time;

f. Certification of (a) the availability of the names and addresses of buyers sand description of vehicles when sold and (b) that such names, addresses, and descriptions are available for inspection by the Chief of Police and the Finance Director; and
g. Number of calls for service answered in which time beyond one hour was required to be handled.

14. Liens and Disposals

14.1 Contractor shall provide the Department with a list of unclaimed vehicles thirty (30) days before they are scheduled to be disposed of or sold. On or before the 10th day of each month, Contractor shall furnish to the Department a list of all vehicles that have been sold at lien sales during the previous month, and date of the action. The list shall include the vehicle owner’s name, address, vehicle make, year and model, license number, VIN number, and Department record number. Copies of all lien sale documents shall be resubmitted with such list. The documents shall be dated and include all charges imposed on each sale.

14.2 Contractor shall abide by all federal, state, and local laws pertaining to the disposal of unclaimed vehicles and shall not use any vehicle stored or impounded as a result of tow ordered by the Department for any purpose except as expressly authorized under this Agreement.

15. Performance

15.1 Contractor shall perform the services required under this Agreement in an ethical, professional, and orderly manner and shall endeavor to obtain and keep the confidence of the motoring public.

15.2 Contractor’s performance of all terms and conditions set forth herein shall be monitored and verified by the Supervisor or Sergeant of the Department’s Traffic Division.

15.3 Contractor acknowledges and agrees that the minimum performance standards required under this Agreement shall include the performance standards described in the SOQ, but not be limited to, the following;

a. Timely payment to City of VTACR Fee

b. Contractor shall provide payment to the City by the 10th day of each month, for the preceding month tows for all vehicle impound subject to the Vehicle Towing Administrative Cost Recovery fee.
c. Contractor shall include with each VTACR payment both a paper and electronic report of all the preceding months tows in which they collected the VTACR fee, in a format approved by the Department.
d. VTACR payment and report shall be provided to the following departments: Police

i. Timely submission of all required monthly reports.

ii. No more than three (3) “passes” on tow assignments within single calendar month.
iii. The ability to maintain an average response time of fifteen (15) minutes or less.
iv. Successful re-inspection of equipment and facilities. v. Maintenance of an error rate of less than ten (10) percent on tow invoices, as determined by a random audit of thirty (30) tow invoices. vi. A complaint ratio involving incidents of misconduct as provided in Section 7.11 of this Agreement of not more than one (1) percent of all tow requests.

16. Inspection

16.1 Contractor acknowledges a requirement to pass one (1) annual inspection of all tow trucks utilized on Department rotation calls, in order to qualify for participation in the term of the Agreement.

16.2 Department may conduct additional inspections without notice during normal business hours.

16.3 Contractor’s operator shall not dispatch any tow truck which has not been inspected and approved by the Department.

16.4 The Department shall inspect a tow truck within thirty (30) days of a request from an operator prior to use in the Rotation Tow Program.

16.5 The intent of the inspections is to ensure Contractor is involved in an ongoing safety maintenance program for their tow trucks. The annual inspection is not intended to find out what needs to be repaired/replaced on Contractor’s tow trucks. A tow truck responding to a Department call shall be properly equipped and operating in a safe condition.

16.6 Contractor shall be provided with written notification of the failure/denial of any tow truck or equipment and allowed a hearing upon request to the Department.

16.7 All of the equipment listed on an operator’s CHP 234A shall be accounted for during the annual inspection.

16.8 Contractor shall provide a current copy of their California Air Resource Board Certificate of Reported Compliance Truck and Bus Regulation commencing July 1, 2020.

17. Special Equipment

17.1 To properly and safely tow, service, or recover the wide variety of vehicles being operated on the highway, a towing procedure may require the use of special equipment specifically designed for the purpose. This special equipment shall be listed on the Contractor’s CHP 234A and should be used when appropriate.

17.2 All special equipment listed on the CHP 234A shall be accounted for during the annual inspection, as well as when additional equipment is added.

17.3 Any special equipment, which requires certification/inspection of the equipment and/or operator (e.g., cranes, forklifts), the applicable and current certification/inspection document shall be provided to the California Highway Patrol Area office at the time of enrollment or as equipment is added by an operator.

18. Risk

18.1 Contractor assumes all risk in the event of damage, theft, fire, or otherwise, of the vehicles or any other property towed, impounded, or stored by Contractor, its employees or agents.

18.2 Notwithstanding any other term or condition herein, in responding to a call from the Department, Contractor shall have no claim whatsoever against City or any right to recover from City for the cost of any of the services it renders in the performance of this Agreement. Contractor shall look solely and exclusively to the owner of the vehicle, towed, impounded, or stored, for payment of the services provided by the Contractor.

18.3 Contractor shall assume the entire risk of nonpayment of any service charges incurred pursuant to this Agreement.

19. Insolvency

Contractor shall not, without the prior written consent of the Chief of Police, suffer either the appointment of a receiver to take possession of all or substantially all of the assets of Contractor or make a general assignment of such assets for the benefit of creditors.

Any such action taken or suffered by Contractor under any insolvency or bankruptcy proceeding constitutes a breach of contract by Contractor and all property assigned by City for safe care shall be “released” to another assigned service provider, as specified by the Chief of Police or his or her designee, with a reimbursement for towing, storage, and related fees borne by the service provider assuming the new responsibility.

EXHIBIT “B”

SCHEDULE OF COMPENSATION

1. Rates and VTACR Fee

1.1 In accordance with Sections 11.82.090 and 11.82.100 of the Palm Springs Municipal Code, and as authorized by California Vehicle Code Section 22850.5, the Vehicle Towing Administrative Cost Recovery (VTACR) Fee is imposed to recover the City’s actual and reasonable administrative costs associated with the enforcement, removal, storage, and release of impounded vehicles. These costs include overhead, personnel, and contract management expenses necessary to operate the official police tow services program. Pursuant to Resolution No. 25189, the City Council has reviewed and adopted a VTACR fee in the amount of $235.00 per tow, calculated based on the City's total annual administrative cost of $345,016.16.

Each official police tow services provider shall collect the VTACR fee at the time of vehicle release and remit payment to the City of Palm Springs no later than the 10th day of each month. The remittance shall include an itemized report detailing all vehicles towed under the program. The City may waive the VTACR fee in cases of abandoned vehicles, where neither the City nor the Contractor collects any towing or storage fees, and the Contractor avails itself of the Abandoned Vehicle Abatement Program, as set forth in Palm Springs Municipal Code Section 11.80.

The Tow Fee Schedule is adopted as follows:

Fee Schedule

TOWING SERVICES CHARGES HOURLY
CLASS A TOW TRUCK $230*
CLASS B TOW TRUCK $285*

STORAGE FEES DAILY
MOTORCYCLES $80
PASSENGER CARS $90
TRUCKS | TRAILERS 20' OR LESS $90
TRUCKS | TRAILERS | VEHICLES 20' TO 30' $95
TRUCKS | TRAILERS | VEHICLES 30' ABOVE $100
VEHICLE TOWING ADMINISTRATIVE COST RECOVERY $235

OTHER RELATED FEES ONE TIME
AFTER HOURS RELEASE / GATE FEE $100

SECONDARY / SUBSEQUENT TOW ½

ESTABLISHED

TOW RATE
*Hourly rates

1.2 When Contractor fails, neglects, or refuses to pay or remit the VTACR fee under this Section, or otherwise pays the VTACR fee, but later cancels or stops payment on it, and in either situation that payment or remittance is lawfully due or owing, the entire amount of the unpaid or non-remitted VTACR fee constitutes a debt to the City by Contractor, which the City may recover in a civil action. Failure to timely pay the VTACR shall also be deemed a material breach of this Agreement, and the City may terminate the Agreement as provided for herein.

1.3 “Dry Runs”: City shall not be liable to pay Contractor any charge whatsoever or fee for a call that does not result in a chargeable service being rendered by Contractor (i.e., a “dry run”). In the event that a vehicle towed or impounded in error due to an incorrect directive from the Department, Contractor shall, upon verification and direction by the Department, immediately release the vehicle to the registered owner without charge. Contractor shall wave all towing, storage, and administrative fees associated with the erroneous tow prior to release. Contractor shall maintain records of such waivers and provide documentation upon request by the Department.

1.4 Pursuant to Palm Springs Municipal Code Section 11.82.070(b), the City Council of the City shall establish the fee schedule for services to be provided under this Agreement. All charges for towing, impound, storage, and other services required to be performed by Contractor under the terms and conditions of this Agreement shall not exceed those charges adopted by City Council.

1.5 All rates and charges shall be conspicuously posted in the Contractor’s office and in all tow vehicles and shall be available for review by City personnel and/or persons for whom tow service is provided. All customer bills shall be itemized. It will be the Contractor’s responsibility to collect payment for services it renders under this Agreement from the motorists, and City shall not be responsible in any way whatsoever for payment of these charges.

1.6 Contractor shall accept a valid bank credit card or cash for payment of towing and storage by the registered owner, legal owner, or agent of the owner claiming the vehicle.

1.7 Department may waive the VTACR fee due to extenuating circumstances. It is not the intention of the City nor the Police Department to penalize victims.

Circumstances under which the VTACR fee may be waived include the impounding of recovered stolen or embezzled vehicles, and vehicles impounded due to driver injury or incapacitation.

1.8 In the event that a vehicle is towed or impounded in error due to an incorrect directive from the Department, Contractor shall, upon verification and direction by the Department, immediately release the vehicle to the registered owner without charge. Contractor shall waive all towing, storage, and administrative fees associated with the erroneous tow. The Department shall provide written or electronic authorization confirming the erroneous tow prior to release. Contractor

shall maintain records of such waivers and provide documentation upon request by the Department.

1.9 Whenever a motorist requests tow assistance and does not specify a particular tow company or membership agency, the service shall be assigned to the Contractor in accordance with the Department’s adopted rotational call-for-service system. All charges arising out of such assistance assigned to the Contractor shall be the exclusive responsibility of Contractor and the requesting motorist. The Department shall not be liable for any charges whatsoever arising out of a motorist assistance call. Contractor shall not charge such motorist more than the rates specified in this Agreement.

EXHIBIT “C”

EXECUTIVE ORDER N-6-22 CERTIFICATION

CITY OF PALM SPRINGS
OFFICIAL POLICE TOWING AND STORAGE SERVICES 26Q169

THIS OFFICIAL POLICE TOWING AND STORAGE SERVICE AGREEMENT (the “Agreement”) is made and entered into on this 27th day of August 2026 by and between the City of Palm Springs, a California charter city and municipal corporation, (hereinafter referred to as “City”), and Dave’s Towing Service (hereinafter referred to as “Contractor”). Any reference in this Agreement to the “Department” shall be deemed to refer to the Palm Springs Police Department.

RECITALS
A. Pursuant to Chapter 11.82 of the Palm Springs Municipal Code, as now or hereafter amended (the “Tow Ordinance”), City’s Police Department requires the aid and assistance of towing services on a regular basis in the performance of its emergency response and traffic control duties, including response to and the investigation of vehicular accidents.

B. As a means for providing the necessary towing service, City has approved the use of one or more towing service companies who have agreed to contract with City to provide the requisite towing service pursuant to the requirements and performance criteria established by the Tow Ordinance, the City’s Police Department, the terms and conditions contained herein and in the City of Palm Springs Request for Statements of Qualifications (RFQ 04-26) for Towing and Storage of Vehicles, as requested by the Department.

C. Official police tow services provider means a towing company selected by the Department to be used on-call and on a rotational basis for any police emergency or response situation where the use of a tow truck is required.

D. In order for the Contractor to perform as a towing services company for City, the towing service company must enter into a contractual agreement with City and must be designated by City as a towing services company.

E. Contractor owns or leases tow trucks and employs personnel that are capable of providing the desired vehicle towing and storage services to City.

F. City desires to designate Contractor and Contractor desires to accept and be designated by City, as an independent towing services company, for purposes of providing police towing and vehicle impound and storage services for City, pursuant to the terms and conditions set forth in this Agreement.

NOW THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by reference, and the mutual promises, covenants, and conditions contained herein, City and Contractor agree as follows:

AGREEMENT
The Agreement between the parties hereto shall consist of the following: (1) this Agreement; (2) the City of Palm Springs Request for Statements of Qualifications (RFQ 04- 26) for Towing and Storage of Vehicles as Requested by the Palm Springs Police

Department (“SOQ”), including all addenda issued related thereto; and, (3) the signed, original Statement of Qualifications submitted (“Submittal”) by Contractor in response to the SOQ, which shall all be referred to collectively hereinafter as the “Contract Documents.” The SOQ and signed submittal are both hereby incorporated by reference and are made part of this Agreement as though fully set forth herein. All provisions of the SOQ and the Submittal shall be binding on the parties. Should any inconsistency or ambiguity occur or exist in the Contract Documents, the provisions of the Agreement, then the provisions of the SOQ, then the provisions of the Submittal shall control. To ensure the efficient performance of police towing services for the Department, Contractor hereby agrees to the following service provider requirements, specifications, performance criteria, and terms and conditions:

1.0 DEFINITIONS
For purposes of this Agreement, the following words and phrases have the meanings ascribed to them unless the context otherwise requires:
“Administrative cost” means all direct and indirect costs associated with the administration of the provisions of the Tow Ordinance and any agreement entered into pursuant thereto. “Attendant” or “provider” means a trained and/or qualified individual responsible for the operation of a tow truck or vehicle storage facility.
“Contractor” means the Official Police Tow Services Provider under contract with the City pursuant to this Agreement.
“Hearing Officer” means the Chief of Police or a designee of the Chief of Police designated by the Chief of Police to hear any appeal or conduct a hearing pursuant to the provisions of the Tow Ordinance.
“Non-consensual vehicle towing” means towing service:

1. Ordered or requested by the City’s police department or other City employees who are duly authorized by law to remove, impound, or store vehicles.

2. Done without the vehicle owner’s or operator’s knowledge, consent, or authorization, regardless of whether the vehicle is on public or private property. Examples include, but are not limited to, a vehicle for which registration is at least six months past due, or a vehicle driven by persons who are not licensed for that particular class of vehicle, or when an owner or an operator:

a. Is arrested, detained, incapacitated, or physically unable to drive the vehicle, or

b. Fails to either designate or express a preference for a particular towing company.

“Official police tow services provider” means a towing company having a contractual relationship with the City of Palm Springs to provide towing services to the Police Department.

“Operator” means a person who is lawfully entitled to possession of a vehicle. The term includes the owner’s agent.

“Owner” has the same meaning as that that term is defined in Vehicle Code Section 460, or any successor legislation. The term includes the owner’s agent.

“Person” means an individual, company, firm, association, trust, estate, partnership, corporation, limited liability company, or an entity, however organized.

“Police Chief” means the Chief of Police for the City of Palm Springs, or the designee of the Chief of Police.

“Recovery” refers to responding to a vehicle, which is overturned, down an embankment, or otherwise not upright on its wheels.

“Response time” means the elapsed time between the relaying of the tow service request to the Contractor and arrival of the appropriate tow vehicle on the scene.

“Tow truck” is a motor vehicle which has been altered or designed and equipped for and exclusively used in the business of towing vehicles by means of a crane, tow bar, tow line, or dolly, or is otherwise exclusively used to render assistance to other vehicles.

“Towed” means a vehicle hauled, pulled, or transported by a tow truck.

“Towing service” means roadside assistance, towing, storing, lien-selling, or related operation for a damaged, inoperative, abandoned, stolen, recovered, or illegally parked vehicle.

“Vehicle” has the same meaning as that term is defined in California Vehicle Code Section 670, or any successor legislation. A “stored vehicle” or “impounded vehicle” is any vehicle removed from a site and taken to the tow yard at the direction of a Police Department employee and for which a Vehicle Report (currently, CHP form is provided to the Official Police Tow service provider).

2.0 COORDINATION OF WORK

2.1 Representative of Contractor. The following principal of Contractor is designated as being the principal and representative of Contractor authorized to act in its behalf and make all decisions with respect to the Services to be performed under this Agreement: David E. Bell, Owner. It is expressly understood that the experience, knowledge, education, capability, expertise, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services performed hereunder. The foregoing principal may not be changed by Contractor without prior written approval of the Contract Officer.

2.2 Contract Officer. The Contract Officer shall be the City Manager or his/her designee ("Contract Officer"). Contractor shall be responsible for keeping the Contract Officer fully informed of the progress of the performance of the services.

Contractor shall refer any decisions that must be made by City to the Contract Officer. Unless otherwise specified, any approval of City shall mean the approval of the Contract Officer.

2.3 Prohibition Against Subcontracting or Assignments. The experience, knowledge, capability, expertise, and reputation of Contractor, its principals and employees, were a substantial inducement for City to enter into this Agreement.

Therefore, Contractor shall not assign full or partial performance of this Agreement, nor any monies due, voluntarily or by operation of law, without the prior written consent of City. Contractor shall not contract with any other entity to perform the Services required under this Agreement without the prior written consent of City.

If Contractor is permitted to subcontract any part of this Agreement by City, Contractor shall be responsible to City for the acts and omissions of its subcontractor(s) in the same manner as it is for persons directly employed.

Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the Work will be considered employees of Contractor. City will deal directly with and will make all payments to Contractor. In addition, neither this Agreement nor any interest in this Agreement may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written consent of City. Transfers restricted in this Agreement shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release Contractor or any surety of Contractor from any liability under this Agreement without the express written consent of City.

2.4 Independent Contractor. The legal relationship between the Parties is that of an independent contractor, and nothing shall be deemed to make Contractor a City employee. The following additional provisions shall apply:

2.4.1 During the performance of this Agreement, Contractor and its officers, employees, and agents shall act in an independent capacity and shall not act or represent themselves as City officers or employees. The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Contractor or any of its officers, employees, or agents, except as set forth in this Agreement. Contractor, its officers, employees, or agents shall not maintain an office or any other type of fixed business location at City’s offices. City shall have no voice in the selection, discharge, supervision, or control of Contractor’s employees, servants, representatives, or agents, or in fixing their number, compensation, or hours of service. Contractor shall pay all wages, salaries, and other amounts due its employees in connection with this Agreement and shall be responsible for all reports and obligations respecting them, including but not limited to social security income tax withholding, unemployment compensation, workers’ compensation, and other similar matters. City shall not in any way or for any purpose be deemed to be a partner of Contractor in its business or otherwise a joint venture or a member of any joint enterprise with Contractor.

2.4.2 Contractor shall not have any authority to bind City in any manner. This includes the power to incur any debt, obligation, or liability against City.

2.4.3 No City benefits shall be available to Contractor, its officers, employees, or agents in connection with any performance under this Agreement. Except for professional fees paid to Contractor as provided for in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for the performance of Services under this Agreement. City shall not be liable for compensation or indemnification to Contractor, its officers, employees, or agents, for injury or sickness arising out of performing Services. If for any reason any court or governmental agency determines that the City has financial obligations as otherwise provided for in this Agreement, of any nature relating to salary, taxes, or benefits of Contractor’s officers, employees, servants, representatives, subcontractors, or agents, Contractor shall indemnify City for all such financial obligations.

3. INSURANCE

3.1 Contractor shall procure and maintain, at its sole cost and expense, the insurance described below. The insurance shall be for the duration of this Agreement and includes any extensions, unless otherwise specified in this Agreement. The insurance shall be procured in a form and content satisfactory to City. The insurance shall apply against claims which may arise from the Contractor's performance of Work under this Agreement, including Contractor's agents, representatives, or employees.

In the event the City Manager determines that the
Work or Services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the City Manager or his designee. Contractor shall immediately substitute any insurer whose A.M. Best rating drops below the levels specified in this Agreement.

All insurance provided under this Agreement shall be on an occurrence basis. The minimum amount of insurance required shall be as follows:

3.1.1 Commercial Business Automobile Liability, as required by Vehicle Code Section 16500.5. Such coverage must cover all owned, hired, and non-owned vehicles, including leased and rented vehicles. If Contractor does not own any vehicles, this requirement may be satisfied by a non- owned vehicle endorsement to the CGL and Umbrella/Excess policies. The coverage shall include bodily injury and property damage, with a combined single limit of not less than $1,000,000 per occurrence (Combined single limit each accident for bodily injury and property damage). These minimum standards are to include non-owned and hired auto coverage.

3.1.2 Uninsured Motorist, with a combined single limit of not less than the legal minimum.

3.1.3 On-Hook Coverage / Garage Keepers Legal Liability insuring the vehicle in tow, with not less than the following limits based on the size of the tow truck:

A. Class A tow truck $100,000
B. Class B tow truck $100,000

3.1.4 Garage Liability Insurance, including premises and operations coverage for bodily injury and property damage with a combined single limit of not less than $500,000.

3.1.5 Garage Keepers Liability, in an amount not less than the amounts required for On-Hook coverage for vehicles in the care, custody, and control of Contractor in the storage yard.

3.1.6 Workers’ Compensation (Statutory) and Employer’s Liability Insurance.

Contractor shall comply with all of the provisions of the Workers’ Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar state and federal acts or laws applicable; and shall indemnify, defend, and hold harmless City and its Council Members, officers, employees, and agents from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description, including attorneys’ fees and costs incurred by City or presented, brought, or recovered against City, its Council Members, officers, employees, and agents, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by Contractor under this Agreement.

Contractor shall obtain and maintain, in full force and effect throughout the term of this Agreement, workers’ compensation insurance in at least the minimum statutory amounts, and in compliance with all other statutory requirements, as required by the State of California. Contractor agrees to waive and obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies. If Contractor has no employees, Contractor shall complete the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.

3.1.7 Commercial General Liability Insurance (CGL): Contractor shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of commercial general liability insurance written on a per occurrence basis with a combined single limit of at least one million dollars ($1,000,000.00) and two million dollars ($2,000,000.00) general aggregate for bodily injury and property damage including coverages for contractual liability, personal injury, independent contractors, broad form property damage, products and completed operations.

3.1.8 Employer Liability Insurance: Contractor shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of employer liability insurance written on a per occurrence basis with a policy limit of at least one million dollars ($1,000,000.00) for bodily injury or disease.

3.1.9 Those tow truck operators removing a vehicle from a hazardous materials incident to the nearest reasonable and safe stopping location will be considered to be transporting property subject to normal minimum insurance

requirements of Section 34631.5 of the Vehicle Code.

3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager or his/her designee prior to commencing any work or services under this Agreement.

Contractor guarantees payment of all deductibles and self-insured retentions. City reserves the right to reject deductibles or self-insured retentions in excess of $10,000, and the City Manager or his/her designee may require evidence of pending claims and claims history as well as evidence of Contractor’s ability to pay claims for all deductible amounts and self-insured retentions proposed in excess of $10,000.

3.3 Other Insurance Requirements. The following provisions shall apply to the insurance policies required of Contractor under this Agreement:

3.3.1 For any claims related to this Agreement, Contractor’s coverage shall be primary insurance with respect to the City and its officers, council members, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City and its officers, council members, officials, employees, agents, and volunteers shall be in excess of Contractor’s insurance and shall not contribute with it.

3.3.2 Any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to City and its officers, council members, officials, employees, agents, and volunteers.

3.3.3 All insurance coverage and limits provided by Contractor and available or applicable to this Agreement are intended to apply to each insured, including additional insureds, against whom a claim is made or suit is brought to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations shall limit the application of such insurance coverage.

3.3.4 No required insurance coverages may include any limiting endorsement which substantially impairs the coverages set forth in this Agreement (e.g., elimination of contractual liability or reduction of discovery period), unless the endorsement has first been submitted to the City Manager and approved in writing.

3.3.5 Contractor agrees to require its insurer to modify insurance endorsements to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the endorsements. Certificates of insurance will not be accepted in lieu of required endorsements, and submittal of certificates without required endorsements may delay commencement of the Project. It is Contractor’s obligation to ensure timely compliance with all insurance submittal requirements as provided in this Agreement.

3.3.6 Contractor agrees to ensure that subcontractors, and any other parties

involved with the Project who are brought onto or involved in the Project by Contractor, provide the same minimum insurance coverage required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with subcontractors and others engaged in the Project will be submitted to the City for review.

3.3.7 Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any insurance requirement in no way imposes any additional obligations on the City nor does it waive any rights in this or any other regard.

3.3.8 Contractor shall provide proof that policies of insurance required in this Agreement, expiring during the term of this Agreement, have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration.

Endorsements as required in this Agreement applicable to the renewing or new coverage shall be provided to City no later than ten (10) days prior to expiration of the lapsing coverage.

3.3.9 Requirements of specific insurance coverage features or limits contained in this section are not intended as limitations on coverage, limits, or other requirements, or as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive.

3.3.10 The requirements in this section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impair the provisions of this section.

3.3.11 Contractor agrees to provide immediate notice to City of any claim or loss against Contractor arising out of the Work performed under this Agreement and for any other claim or loss which may reduce the insurance available to pay claims arising out of this Agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City, or to reduce or dilute insurance available for payment of potential claims.

3.3.12 Contractor agrees that the provisions of this section shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages resulting from the Contractor’s activities or the activities of any person or person for which the Contractor is otherwise responsible.

3.4 Sufficiency of Insurers. Insurance required in this Agreement shall be provided by

authorized insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best’s Key Rating of B++, Class VII, or better, unless such requirements are waived in writing by the City Manager or his designee due to unique circumstances.

3.5 Verification of Coverage. Contractor shall furnish City with both certificates of insurance and endorsements, including additional insured endorsements, affecting all of the coverages required by this Agreement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the right to require Contractor’s insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required for Errors and Omissions and Workers’ Compensation policies.

Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Insurance Coverage with an approved Additional Insured Endorsement with the following endorsements stated on the certificate:

1. "The City of Palm Springs, its officials, employees, and agents are named as an additional insured…” ("as respects City of Palm Springs Contract No. " or "for any and all work performed with the City" may be included in this statement).

2. "This insurance is primary and non-contributory over any insurance or self- insurance the City may have..." ("as respects City of Palm Springs Contract No. " or "for any and all work performed with the City" may be included in this statement).

3. "Should any of the above described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named." Language such as, “endeavor to” mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out.

4. Both the Workers’ Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the policies. All certificates of insurance and endorsements are to be received and approved by the City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter. Failure to obtain the required documents prior to the commencement of work shall not waive the Contractor’s obligation to provide them.

4 BREACH OF CONTRACT
Any of the following acts if committed by Contractor during the performance of this Agreement shall be considered a material breach of this Agreement:

4.1 Nonpayment of City any business license fees, VTACR fees, or any other fees required by this Agreement or the Palm Springs Municipal Code.

4.2 Failing to comply with any provision of this Agreement or breach of any rules, regulations, or conditions provided in this Agreement or the Palm Springs Municipal Code.

4.3 Violation of any federal, state or local law by Contractor, any person having any ownership interest in Contractor, or any employee of Contractor.

4.4 Failing to maintain a satisfactory level of service to the City or the public.

4.5 Failing to keep any vehicle towed at the request of the Department in safe condition and good repair.

4.6 Failing to use distinctive coloring, monogram, or insignia on the vehicle.

4.7 Any deviation from the schedule of rates set forth in this Agreement without prior approval of the Chief of Police.

4.8 Passing on, or refusing, for any reason, a tow assignment from the Department three or more times in any calendar month.

4.9 Allowing the insurance coverage required herein to either be withdrawn or lapse or to no longer be in force for any reason.

5 ACTS OR OMISSIONS OF REPRESENTATIVES
It is understood and agreed by the parties that the acts and/or omissions of the owner(s), officers, operators, officials, employees, agents, and representatives of Contractor in the performance of the services and obligations under this Agreement shall constitute the acts and/or omissions of Contractor.

6 ENFORCEMENT OF AGREEMENT

6.1 California Law and Venue. This Agreement shall be construed and interpreted both as to validity and as to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such County, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

6.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual and the result of negotiation

between the Parties. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. The caption headings of the various sections and paragraphs of this Agreement are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.

6.3 Default of Contractor. Contractor’s failure to comply with any provision of this Agreement shall constitute a default.

6.3.1 If the City Manager, or his designee, determines that Contractor is in default in the performance of any of the terms or conditions of this Agreement, he/she shall notify Contractor in writing of such default. Contractor shall have ten (10) days, or such longer period as City may designate, to cure the default by rendering satisfactory performance. In the event Contractor fails to cure its default within such period of time, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice of any remedy to which City may be entitled at law, in equity, or under this Agreement. Contractor shall be liable for all reasonable costs incurred by City as a result of such default.

Compliance with the provisions of this section shall not constitute a waiver of any City right to take legal action in the event that the dispute is not cured, provided that nothing shall limit City’s right to terminate this Agreement without cause under Section 5.3.

6.3.2 If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of the preceding subsection, take over the work and prosecute the same to completion by contract or otherwise. The Contractor shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the charges as otherwise allowed herein (provided that the City shall use reasonable efforts to mitigate such damages). The City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated. The withholding or failure to withhold payments to Contractor shall not limit Contractor’s liability for completion of the Services as provided in this Agreement.

6.4 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. Any waiver by the Parties of any default or breach of any covenant, condition, or term contained in this Agreement, shall not be construed to be a waiver of any subsequent or other default or breach, nor shall failure by the Parties to require exact, full, and complete compliance with any of the covenants, conditions, or terms contained in this Agreement be construed as changing the terms of this Agreement in any manner or preventing the Parties from enforcing the full provisions.

6.5 Rights and Remedies Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

6.6 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct, remedy or recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

6.7 Attorney Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non-judicial proceeding, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non-prevailing Party all reasonable costs and expenses. These include but are not limited to reasonable attorney fees, expert contractor fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding. To the extent authorized by law, in the event of a dismissal by the plaintiff or petitioner of the litigation or non-judicial proceeding within thirty (30) days of the date set for trial or hearing, the other Party shall be deemed to be the prevailing Party in such litigation or proceeding.

7 COMPLAINT PROCESS; TERMINATION FOR VERIFIED COMPLAINTS

7.1 Acknowledgement of Complaint Procedure. Contractor hereby acknowledges and agrees that its performance under this Agreement shall be subject to the City Police Department’s (the “Department”) internal complaint and grievance procedure (the “Complaint Procedure”), which permits members of the public to submit complaints concerning Contractor’s provision of towing and storage services.

7.2 Investigation and Recordkeeping. The Department shall have the sole discretion to receive, investigate, and evaluate complaints submitted under the Complaint Procedure. The Department shall maintain records of all complaints, including findings as to whether any complaint is determined to be verified and meritorious.

Contractor shall cooperate fully with any inquiry or investigation undertaken by the Department in connection with such complaints, including the production of records and the reasonable availability of personnel for interviews.

7.3 Grounds for Termination. The receipt of verified and meritorious complaints, in such number or nature as the Department reasonably determines evidences a pattern of misconduct, substandard performance, or other failure to comply with the terms of the Agreement or applicable law, shall constitute grounds for termination of this Agreement pursuant to Section 11.82.150 of the City of Palm Springs Municipal Code.

7.4 Reservation of Rights. Nothing herein shall be construed to limit or restrict the City’s authority under Section 11.82.150 of the City of Palm Springs Municipal Code, or any other provision of this Agreement, to suspend, revoke, or terminate this Agreement or to exercise any other remedy available at law or in equity.

8 NOTICE
Any notice, demand, request, consent, approval, or communication that either party desires, or is required to give to the other party or any other person shall be in writing. All notices shall be personally delivered, sent by pre-paid First Class U.S. Mail, registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by facsimile with attached evidence of completed transmission. All notices shall be deemed received upon the earlier of (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) five (5) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by facsimile. Any notice, request, demand, direction, or other communication sent by facsimile must be confirmed within forty-eight (48) hours by letter mailed or delivered. Other forms of electronic transmission such as e-mails, text messages, and instant messages are not acceptable manners of notice required hereunder. Notices or other communications shall be addressed as follows:

To City: City of Palm Springs
Attention: City Manager & City
Clerk 3200 E. Tahquitz Canyon
Way Palm springs, California
92262 Telephone: (760)323-8204
Facsimile: (760) 323-8332

To Contractor: Dave’s Towing Service
Attention: David E. Bell
370 West San Rafael Drive, Suite 9
Palm Springs, CA 92262
Telephone: (760) 322-5441

9 CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION

9.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor-in-interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

9.2 Conflict of Interest. Contractor acknowledges that no officer or employee of the City has or shall have any direct or indirect financial interest in this Agreement nor shall Contractor enter into any agreement of any kind with any such officer or employee during the term of this Agreement and for one year thereafter. Contractor warrants that Contractor has not paid or given, and will not pay or give, any third party any money or other consideration in exchange for obtaining this Agreement.

9.3 Covenant Against Discrimination. In connection with its performance under this Agreement, Contractor shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin (i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). Contractor shall ensure that applicants are employed, and that employees

are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Contractor certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Contractor activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Contractor is in full compliance with the provisions of Palm Springs Municipal Code Section 7.05.02, including without limitation the provision of benefits, relating to non-discrimination in city contracting.

10 SEVERABILITY
Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If any provision of this Agreement shall be determined to be invalid by a final judgment or decree of a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the reminder of that provision, or the remaining provisions of this Agreement unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

11 INTEGRATION
This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter in this Agreement.

12 AMENDMENT
No modification, amendment, addition to, deletion, or alteration of the terms of this Agreement, whether written or oral, shall be valid unless made in writing and formally approved and executed by all parties.

13 NO WAIVER
No delay or omission in the exercise of any right or remedy available hereunder shall impair such right or remedy or be construed as a waiver. Any waiver of any default or condition hereunder must be in writing and shall not be construed as a waiver of any other default concerning the same or any other provision of this Agreement.

The waiver by City of any breach by Contractor of any of the provisions of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach or default by Contractor either of the same or a different provision of this Agreement. 14 THIRD PARTY BENEFICIARIES
Except as may be expressly provided for in this Agreement, nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third-party beneficiary or otherwise, upon any entity or person not a party to this Agreement.
15 SUCCESSORS IN INTEREST

This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and assignees.
16 CORPORATE AUTHORITY
Each of the undersigned represents and warrants that (i) the Party for which he or she is executing this Agreement is duly authorized and existing, (ii) he or she is duly authorized to execute and deliver this Agreement on behalf of the Party for which he or she is signing, (iii) by so executing this Agreement, the Party for which he or she is signing is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which the Party for which he or she is signing is bound.
17 EFFECTIVE DATE
The Effective Date of the Agreement shall be that which is entered at the top of the first page of this agreement, where upon both parties have fully executed the documents herein.

SIGNATURES ON NEXT PAGE

SIGNATURE PAGE TO CONTRACT SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND DAVE’S TOWING SERVICE

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.

CONTRACTOR:

By: ____________________________
Signature

Date:

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No.

APPROVED AS TO FORM: ATTEST:

By: ___________________________ By: _______________________________ City Attorney City Clerk

APPROVED:

By: _______________________________ Date:

City Manager – over $150,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000

EXHIBIT “A”

SCOPE OF SERVICES

1.1 Contractor shall perform vehicle towing, impound, and storage services as directed by the Department and in addition such other services as provided in this Agreement, and shall provide necessary storage facilities, tow services, labor, materials, equipment, machinery, and tools.

1.2. Contractor shall comply with all federal, state, and local laws, ordinances, rules, and regulations that regulate tow units and the impound, towing, storage, selling, or junking of vehicles. Specific services include, but are not limited to, towing and storage of vehicles involved in accidents or disabled for other causes (when alternate towing is either not appropriate or is not requested by the owner or operator of the vehicle) and towing and storing of vehicles which for other reasons are within the jurisdiction of the Palm Springs Police Department, including impounded/forfeited vehicles under the provisions of California Vehicle Code 14602.6 and 14607.6. Contractor shall be able to properly conduct a lien sale as outlined in Division 11, Chapter 10, Article 2, beginning with Section 22851 of the California Vehicle Code.

1.3. Contractor shall also provide the following special services to the City, at no charge to City:

1.3.1 Contractor shall participate in a monthly rotational tow schedule for VillageFest, with the department assigning a tow company each month and providing advanced notice. Contractors must maintain detailed records of all VillageFest tows, including the date, time, and storage location (if applicable), and submit a monthly report detailing all tows and any fee waivers applied
Towing services shall be provided in accordance with the City’s official towing rotation. Towing operations will commence one (1) hour and thirty (30) minutes prior to the start of VillageFest. Any vehicle remaining within the designated event boundaries may be subject to towing at the sole discretion of a Department officer, with no vehicle removed without explicit officer authorization.

Towed vehicles shall first be transported to a designated drop location, where they will remain until (30) thirty minutes past the official start time of VillageFest. If the registered owner or authorized agent claims the vehicle during this holding period, they shall be charged for one (1) hour of towing service, and all City administrative fees shall be waived. The tow operator shall be responsible for facilitating vehicle release during this time.

Once the holding period expires, all unclaimed vehicles shall be relocated to the Contractor’s storage facility, where standard storage fees shall apply. Registered owners or authorized agents of vehicles towed from VillageFest shall be charged for one (1) hour of towing service and all City administrative fees shall be waived.

After hours gate fees would apply if the owner/agent retrieves the vehicle outside regular business hours. Contractors must ensure full compliance with all record- keeping, reporting, and operational requirements as set forth by the Department.

1.3.2 Towing services necessary to support the City’s Annual Special Events, which require street closures. On a rotational basis, as needed and determined by the Department, Contractor shall remove cars from areas within the designated boundaries, coordinating with Special Events staff and the Department.

Annual Special Events include, but are not limited to the following:

1. Homecoming Parade

2. Pride Block Parties

3. Pride Festival

4. Pride Parade

5. Veteran’s Day Parade

6. Festival of Lights Parade

7. Tour de Palm Springs

8. Black History Parade

Contractors will be utilized on a rotational basis for each individual tow during special events. For parades, any vehicles parked along the designated parade route that require removal will also be towed on a rotational basis prior to the start of the event. Vehicles towed from special event routes requiring street closures shall be subject to standard towing and storage fees, however, all City administrative costs shall be waived.

Once the route is cleared and the parade is underway, one Contractor will remain on standby for the entirety of the event to provide tow services such as a float, vehicle, or equipment breakdown. Standby assignments will be rotated for each parade to ensure equity among all participating Contractors. The assigned Contractor shall have a tow vehicle staged within the immediate vicinity of the event to ensure a prompt response. The Department will determine standby locations and response protocols to support efficient vehicle removal while minimizing disruption to the event.

1.3.3 As-needed abatement of vehicles from private property at the direction of the City’s Code Enforcement Officers in accordance with the City’s Abandoned Vehicle Abatement Program in accordance with the terms and conditions set forth in Title 11 of the City of Palm Springs Municipal Code, “Peace, Morals and Safety”, Chapter 11.80, “Abandoned Vehicles” which is incorporated herein by reference and may be found online at: City of Palm Springs, CA ABANDONED VEHICLES.

No charge shall be assessed against City or the owner of any vehicle that is towed, stored, or dismantled under the provisions of the Abandoned Vehicle Abatement Program.

1.4. Contractor is hereby designated as an authorized official police tow service provider for City by the Chief of Police. All trucks, personnel, and equipment used by Contractor in the performance of this Agreement shall be owned by or leased to Contractor and shall be subject to all provisions and performance standards set forth herein.

1.5. Contractor acknowledges and agrees that this Agreement to provide tow services as set forth herein is non-exclusive. City intends to concurrently contract with other designated tow service providers. City shall utilize the services of each tow service provider as City, in its sole discretion, deems necessary and appropriate.

1.6. Consideration : In consideration of Contractor’s agreement to perform the services provided for herein, City agrees that throughout the term of this Agreement, Contractor shall have:

1.7. The right to tow, impound, and store vehicles at the direction of the Department, subject to the Department’s rotational call-for-service system, as it may be amended from time to time, at the Department’s sole discretion, and the right to identify itself as an official police tow service provider for City.

1.8. Provided, however, that nothing contained herein shall deprive the owner or operator of a vehicle from requesting and receiving towing services from a person or entity other than Contractor.

1.9. Provided, however, that when, in the opinion of the Department, an emergency exists or where Contractor is either unable or unwilling for any reason to provide adequate or timely tow service, then the Department shall have the right to call other qualified tow services. Under such circumstances, the decision to call another tow service shall be at the exclusive discretion of the Department.

2. Term and Termination

2.1 This Agreement shall remain in effect for three (3) years from the Effective Date.

This Agreement may be reviewed at the conclusion of the initial three (3) year period and extended for up to two (2) one (1) year periods by mutual written agreement of the parties.

2.2 Subject to the requirements of Palm Springs Municipal Code Section 11.82.150, as it may be amended from time to time, this Agreement may be cancelled, revoked, and/or suspended by City at any time during the three (3) year term, or the subsequent one (1) year optional terms, if extended, upon Contractor’s breach of this Agreement. In the event of termination for cause by City, Contractor shall be compensated for those services that have been fully and adequately completed and accepted by the Department as of the date of termination. Termination of this Agreement for cause may be considered by City in determining whether to enter into future contracts with Contractor.

2.3 This Agreement may also be cancelled without cause upon thirty (30) days written notice provided by the City or upon ninety (90) day written notice from the Contractor.

In the event that City should cancel, revoke, or suspend Contractor’s work pursuant to this Section 2.3, Contractor shall be entitled to payment for services fully and adequately provided hereunder prior to the effective date of the cancellation, revocation, or suspension. Contractor shall provide documentation deemed adequate by the Department to show the services actually completed by Contractor prior to the effective date of termination. Contractor’s sole remedy for City’s cancellation, revocation, or suspension of work pursuant to this Section 2.3 shall be the payment of funds as expressly provided in this Section 2.3.

2.4 In the event this Agreement is terminated, in whole or in part, as provided by this Section 2, City may procure, upon such terms and in such manner as it deems appropriate, services similar to those terminated.

2.5 The rights and remedies of the parties provided in this Section 2 are in addition to any other rights and remedies provided by law or under this Agreement, including, but not limited to, those rights and remedies set forth in Palm Springs Municipal Code Section 11.82.150, as it may be amended.

3. Location

3.1 All storage facilities that are utilized to store police-stored or impounded vehicles by Contractor shall be located in or within ten (10) miles of the corporate city limits of the city of Palm Springs. For purposes of measuring the ten (10) miles, distance shall be measured in driving distance.

3.2 All vehicles stored or impounded at the direction of the Department shall be

towed, without delay, directly to Contractor’s impound and storage facilities, unless the Department or other person legally in charge of the vehicle requests that it be taken to some other location.

3.3 Any change in Contractor’s operating/facility locations shall be reported, in writing, to the Department at least thirty (30) days prior to making such change

4. Personnel

4.1 Contractor shall ensure that its employees and tow truck operators are qualified and competent employees of the company and are sufficiently trained and capable to ensure the safe and proper discharge of their service responsibilities. All tow truck operators shall be trained and proficient in the use of the tow truck and related equipment, including, but not limited to, the procedures necessary for the safe towing and recovery of the various types of vehicles serviced through the Department rotation program. Contractor shall ensure that each tow truck operator and employee providing dispatch services for Contractor participate in one (1) customer service training offered by, but not limited to, a local community college or tow industry association, at least once every two years. Completion of a TSAAC/CHP approved certification course would be considered as acceptable option.

4.2 All tow truck operators shall be required to have all necessary certificates required by the State of California to operate a tow truck, including a valid California Tow Truck Driver Certification and California Driver’s Licenses in the proper class pursuant to Vehicle Code Sections 12520 and 12804.9(b). Within ten (10) days of the Effective Date of this Agreement, and annually thereafter (within ten (10) days of the anniversary of the Effective Date of this Agreement), Contractor shall provide a list of its tow truck operators and a CHP Form 234F (Tow Operator/Driver Information) for each tow truck operator and such other executed releases and authorizations as the City may require to allow the Department to conduct a background check, including, but not limited to a State of California Department of Motor Vehicles (“DMV”) printout, and fingerprints for each tow truck operator to be utilized in Department tow program. Any subsequent employment of a new tow truck operator shall be reported in writing to the Department immediately, including submittal of the above-referenced materials.

4.3 All tow truck operators shall be required to have a safe driving record, be 18 years of age or older, and be subject to driving record and criminal background checks by the Department.

4.4 Contractor shall have an alcohol and drug program that includes, at a minimum, an alcohol and drug free workplace policy, and a tow truck operator alcohol/drug- testing program that complies with the U.S. Department of Transportation requirements to the extent allowed by law, including random alcohol and drug testing. Any tow truck operator found working under the influence of alcohol or drugs shall be immediately removed from operating a tow truck and from providing any further services pursuant to this Agreement. The alcohol and drug program shall meet the following requirements

a. A contract with a program administrator and authorized lab certified by the U.S. Department of Transportation; and
b. Procedures and components substantially as in Part 40 of Title 49 of the Code of Federal Regulations for pre-employment; and
c. Procedures and components substantially as in Part 382 of Title 49 of the Code of Federal Regulations for rehabilitation, return-to-duty and follow up testing; and
d. Procedures and components for random testing following U.S. Department of Transportation guidelines, and additional tests as required following accidents, rehabilitation, return-to-service, and other circumstances providing reasonable suspicion to test; and
e. Monthly reports of the random testing component shall be filed with the Department by the program administrator no later than the 10th day following the end of the previous monthly reporting period; and
f. Contractor and program administrator’s alcohol and drug program records shall be made available to the Department upon request; and g. Drivers must show a valid California driver’s license at the time and place of testing; and
h. All test results are kept confidential except that the Department is authorized to receive copies for its administrative purposes, and except as otherwise authorized or required by law.

4.5 Contractor shall participate in the California Department of Motor Vehicles (DMV) Employer Pull Notice Program, or any similar program as may be approved by the Department

4.6 Contractor shall not employ in the performance of services pursuant to this Agreement any tow truck operator convicted of or having pled nolo contendere to a crime involving a stolen vehicle, stolen property, violence, drugs or moral turpitude, fraud related to the towing business, a violation of any of the provisions of Vehicle Code Section 22658, or misdemeanor or felony driving while under the influence of alcohol or drugs, or the crimes listed in Vehicle Code Section 13377.

If any tow truck operator is charged with any of the above-listed crimes, Contractor shall immediately suspend that operator from duties under this Agreement pending the outcome of the criminal case.

4.7 Tow truck operators shall maintain acceptable standards of dress, including uniforms, and cleanliness while on duty in the community.

4.8 Tow truck operators shall fully cooperate with and abide by the instructions of the Department’s officers.

4.9 If any tow truck operator becomes ineligible to provide operator services under t his Agreement, Contractor shall immediately notify the Department in writing of such ineligibility and the reason(s) therefore.

4.10 If requested by the Department, all tow truck operators shall obtain from the Department a clip-on identification tag, which such operator shall wear at all times when performing services pursuant to this Agreement in order to allow ease of tow truck operator identification.

4.11 While involved in the Department rotation tow operations or related business, Contractor and its employees shall refrain from any act(s) of misconduct, including but not limited to, any of the following enumerated acts. At the sole discretion of the Police Chief or his/her designee, non-compliance with this section may constitute grounds for disciplinary action.

4.12 Rude or discourteous behavior.

4.13 Lack of service, selective service, or refusal to provide service which Contractor should be capable of performing.

4.14 Any act of sexual harassment or sexual impropriety.

4.15 Unsafe driving practices.

4.16 Exhibiting any objective symptoms of alcohol and/or drug use.

4.17 Appearing at the scene of a Department rotation tow call with the odor of an alcoholic beverage or cannabis emitting from his/her breath. The truck operators shall submit to a preliminary alcohol and/or cannabis screening test upon demand of the Department.

5. Tow Service Duties
After being dispatched to the scene by the Department, Contractor shall comply with the following:

5.1 Not move nor attach a tow truck to any vehicle until instructed to do so by the investigating officer of the Department;

5.2 Cooperate with the investigating officer of the Department in removing hazards and/or illegally parked vehicles, and in the storing or impounding of such vehicles as requested. It is the duty of the police officers to determine when a vehicle should be impounded or moved, and the tow truck attendant shall abide by their decisions;

5.3 On collision calls, clean-up and remove all debris from the accident scene, including, but not limited to, clean-up and removal of all hazardous materials/vehicle fluids in the street with absorbent material, as directed by Department officers and Section 27700 of the California Vehicle Code.

5.4 Provide the owner or driver of towed vehicles (when present at scene) with an Contractor business card indicating where vehicle will be stored or impounded (including address and telephone number); and

5.5 Deliver upon request all personal property located within stored or impounded vehicles upon: (a) presentation of proper identification; and (b) in the case of impounded vehicles, written authorization by the Department.

6. Response to call and response time

6.1 Contractor shall be placed on a “rotation list” in an initial order to be determined by the Police Chief. The rotation list shall be used whenever a driver or owner of a disabled vehicle is unable to specify a particular garage or tow service, or whenever a Department employee stores or impounds a vehicle and the driver or owner is not present or is not consulted.

6.2 Contractor shall be called in response to a Department request upon the occurrence of its turn in rotation. Whenever Contractor cannot, for any reason, respond with any equipment needed to accomplish the requested service within

the response time specified herein, it shall be passed over and the next official police tow service provider on the list will be called. Contractor shall become eligible to provide service again only in its next turn in rotation. Whenever a Department employee determines that an emergency exists because Contractor is unable, for any reason, to provide adequate tow service, the Department employee shall have the right to have such services performed by any other means available. In the event a Department employee cancels a rotation tow due to no fault on the part of the Contractor, Contractor shall be placed on the top of the rotation list for the next requested tow.

6.3 When Contractor will be temporarily unavailable to provide services due to a preplanned/scheduled activity (i.e., vacations, maintenance, medical leave, etc.), Contractor shall notify the Department at least twenty-four (24) hours prior to the date that services will be unavailable, noting times and dates of the unavailability.

6.4 When responding to a Department call, Contractor shall perform the towing or service required for which it was called. This requirement may be waived by the Department officer in charge, if the requested equipment is inadequate for the service to be performed; provided, however, if Contractor supplies the wrong equipment, it shall be placed upon the bottom of the Department rotation list.

6.5 Contractor shall not respond to a Department call assigned to another official police tow service provider unless requested to do so by the Department. If the Contractor responding to a Department call requires the assistance of an additional tow truck at the scene, Contractor may, subject to the prior approval of the Department officer in charge, request the official police tow service provider next on the Department rotation list to assist it.

6.6 Contractor’s dispatcher shall notify the Department when a tow vehicle cannot respond immediately, give the reason for the delay, and an estimated time of arrival. In the event of an additional delay, Contractor’s dispatcher shall again notify the Department and give the new estimated time of arrival. To ensure a timely response, the Department, in its sole discretion, may cancel any call-for- service because of a response delay and may request service from the next official police tow service in the rotation.

6.7 If the Contractor’s telephone or radio is not promptly answered, or if the line is busy when called by the Department after two (2) attempts, Contractor will be bypassed, and the Department shall select the next official police tow service provider in the rotation.

6.8 If, while rendering assistance in response to a Department call for towing, a second Department call for towing is generated to Contractor’s operator, Contractor shall, before responding to the second call, ensure that all vehicles at the first site are sufficiently clear of the roadway so that no obstruction to normal traffic exists. Once the second call is handled to conclusion, the vehicles at the first site may be towed as necessary.

6.9 Contractor agrees that, for any thirty day period, the average response time pursuant to requests for tow service by the Department within the City of Palm Springs shall not exceed fifteen minutes. Contractor also agrees that the maximum response time for any single request for tow service by the Department shall not exceed twenty minutes.

7. Equipment Standards

7.1 Contractor shall equip and maintain tow trucks covered under the Agreement in accordance with the provisions set forth in the California Vehicle Code, Title 13 of the California Code of Regulations, the specifications contained in this Agreement, and in a manner consistent with industry standards and practices.

7.2 All recovery vehicles (wreckers) shall have an extendable/retractable recovery boom meeting the specifications contained in this Agreement, and the most recent electronic version of the CHP 234B, Tow Truck Inspection Guide.

7.3 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.

7.4 An auto-loader without an extendable/retractable boom is an additional unit and shall not be used for recovery.

7.5 For purposes of the Agreement, recovery is defined as a vehicle, which is overturned, down an embankment, or otherwise not upright on its wheels.

7.6 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 unloaded front axle weight on the front axle when towing.

7.7 There are two (2) classes of tow trucks covered under this Agreement a. Class A- Light Duty: Contractor shall maintain a minimum of one tow truck, which has a manufacturer’s GVWR of at least 14,000 pounds. Class A 4- wheel drive tow trucks with a GVWR of less than 14,000 pounds may be listed as special equipment on the 234A. These tow trucks shall be used only for recoveries requiring the use of 4-wheel drive.
b. Class B - Medium Duty: Contractor shall maintain a minimum of 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.

7.8 For purposes of the Agreement, a “low-boy trailer” is considered special equipment.

8. General Equipment Specifications

8.1 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.

8.2 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.

8.3 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).

8.4 The structural design of the recovery equipment must have a higher load capacity than the performance ratings.

8.5 Winches shall conform to, or exceed, the specifications set forth by the Recovery Equipment Rating, Society of Automotive Engineers (SAE) Handbook, and SAE J706.

8.6 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.

8.7 Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions.

9. Communications and Operational Requirements

9.1 Contractor shall maintain a twenty-four (24) hour per day telephone answering service to receive calls from the public and the Department.

9.2 Contractor shall require its telephone answering service to retain data and records relating to the City’s requests for towing services on premises for the term of this Agreement.

9.3 Contractor shall require its answering service to promptly accept and relay requests for towing services made by the City. Failure or refusal to promptly relay the City’s requests for towing services shall constitute failure to comply the requirements, terms and conditions of this Agreement and may result in suspension or termination of the Agreement.

9.4 Contractor shall install and maintain, to the satisfaction of City, at all times during the term of this Agreement, radio or cellular telephone transmission and reception contact between the Contractor communication contact shall be maintained twenty-four (24) hours a day, seven (7) days a week.

9.5 Contractor shall provide to the Department a list of telephone numbers to be called in order of priority, and immediately upon any change in such telephone numbers or in the priority thereof shall notify the Department in writing with the effective date of such change.

9.6 Contractor’s business office shall be located within its storage yard and attended at all times for servicing the public and the City from 8:00 a.m. to 5:00 p.m., Monday through Friday, except for the holidays of January 1, known as New Year’s Day; third Monday in January, known as Dr. Martin Luther King Jr.’s Birthday; third Monday in February, known as Washington’s Birthday/President’s Day; last Monday in May, known as Memorial Day; July 4, known as Independence Day; first Monday in September, known as Labor Day; the second Monday in October, known as Columbus Day; November 11, known as Veteran’s Day; fourth Thursday in November, known as Thanksgiving Day; and December 25, known as Christmas Day. If January 1, July 4, November 11 or December 25 fall upon a Sunday, the Monday following is a holiday and if they fall upon Saturday, the preceding Friday is a holiday. Contractor may make an additional charge for after normal business hours release of vehicles consistent with the guidelines or provisions of the City Council resolution establishing fees and charges for tow services.

9.7 Contractor shall provide twenty-four (24) hour towing service, seven (7) days a week, during the term of this Agreement.

9.8 Contractor shall ensure that there will be an employee on call capable of being present or available for releasing impounded or stored vehicles to the public twenty-four (24) hours a day, seven (7) days a week.

10. Vehicle Identification

10.1 Contractor’s vehicles shall display identification signs, in compliance with Section 27907 of the California Vehicle Code. Contractor shall not display any signs or advertising that indicate the Contractor is an official towing service or police garage of the City.

10.2 Contractor shall not, through their advertisements or otherwise, in any way publicize any official or other business connection with City, nor shall Contractor advertise any address or telephone number of the City as a location to call for vehicle towing and storage service.

11. Storage service responsibilities

11.1 Contractor shall be responsible for all vehicles, accessories, and equipment thereon, and all personal property therein, stored by it. It shall be Contractor’s duty to protect such stored vehicles, accessories, equipment, and property against all loss, damage by fire, theft, or other causes. In the event of loss or damage to a stored vehicle, its accessories or equipment, or personal property contained in the vehicle, Contractor shall be responsible to the owner for all losses or damages.

11.2 Contractor shall be responsible for the acts and omissions of its employees while on duty. Contractor shall be responsible for any property damage caused by the active or passive negligence of Contractor or its employees.

11.3 Contractor shall abide by all federal, state, and local laws pertaining to the disposal of unclaimed vehicles and shall not use any vehicle stored or impounded as a result of tow ordered by the Department for any purpose except as expressly authorized under this Agreement .

11.4 All vehicles stored or impounded by Contractor as a result of a tow ordered by the Department shall be towed directly to an official storage lot, unless the Department or other person legally in charge of the vehicle requests that it be taken to some other location. Vehicle release fees shall be limited to those established by resolution of the City Council of the City of Palm Springs.

11.5 Contractor shall release vehicles stored or impounded by the Department pursuant to authorization provided by appropriate employees of the Department. Such authorization shall be in writing on a form provided by the Department or may be given verbally by employees authorized by the Department to provide verbal releases.

11.6 All vehicles stored or impounded as a result of a tow ordered by the Department shall be made available during business hours to the owner of the vehicle or his representative, or any authorized insurance agent, insurance adjuster, or any body shop or car dealer, for the purpose of estimating or appraising damages, except vehicles with a “police hold”.

11.7 Personal property in vehicles stored by Contractor shall not be disposed of to defray any charges for the towing or storage of a vehicle; and, if not called for by the owner within thirty (30) days after date of notice by the Department of impound or storage, all such property shall be disposed of in accordance with all State, County and Municipal laws, statutes, ordinances and regulations, including without

limitation, Vehicle Code Section 10652 (reporting storage of vehicles over thirty days).

11.8 Contractor shall take whatever actions and precautions necessary to protect the engines, trunks and interior areas of all stored or impounded vehicles against the elements by rolling up windows, closing doors, trunk lids and hoods, and, if necessary, covering the vehicle or parts thereof exposed to the weather with plastic, canvas or other waterproof covering.

11.9 Contractor shall park all stored or impounded vehicles in such a manner as to prevent any damage while other vehicles are being moved or parked in the vicinity of said vehicles.

11.10 Contractor is authorized and encouraged to take photographs of vehicles towed under this Agreement for the sole purpose of documenting the condition of the vehicle, including any damage or lack thereof, at the time of the tow. Such photographs shall be treated as confidential and may only be disclosed to the vehicle owner or other interested parties, as determined by the Department in its sole and absolute discretion. Under no circumstances shall Contractor post, publish, or otherwise disseminate such photographs—whether in print, online, through social media, or by any other means—without the prior written consent of the Department.

12. Storage Facility Standards

12.1 Contractor shall provide a secure and environmentally safe vehicle storage facility with a minimum of fifteen thousand (15,000) usable square feet.

12.2 The vehicles storage facility must be located in or within ten (10) miles of the corporate city limits of the city of Palm Springs. For purposes of measuring the ten (10) miles, distance shall be measured in driving distance.

12.3 The vehicle storage facility must be completely enclosed by a six foot high wall or fence with no holes, gaps or other unsecured openings, and a gate. The wall or fence shall have two or more strands of barbed wire installed in such a manner as to discourage access over the top of the wall or fence, or the wall shall be a minimum of eight feet in height without barbed wire. All gates into the storage yard shall meet the same standards required of the wall or fence. Any damage to walls, fences or gates which allows unauthorized access must be repaired within twenty- four hours.

12.4 The vehicle storage facility shall have adequate lighting, and comply with all applicable building codes, zoning regulations, environmental laws and regulations, and any and all the applicable laws, rules and regulations established by federal, state, county and/or city governments.

12.5 Contractor shall not perform any work in the vehicle storage facility upon any vehicle stored or impounded by the Department without first obtaining authorization from the Department and the registered owner of the vehicle.

12.6 Contractor shall not dispose of any impounded vehicle, through any process whatsoever, without first obtaining authorization from the Department. Nothing herein shall be deemed to prevent or prohibit Contractor from commencing the lien sale process on any such impounded vehicle.

12.7 The Contractor must install and maintain a continuously recording video surveillance system, as approved by the Chief of Police or their designee. This system shall, at the minimum, monitor the entirety of indoor and outdoor vehicle storage lots, any points of ingress or egress to the establishment, and all locations within the establishment open to the public. Signage notifying the public of the presence of video surveillance at these locations shall be installed at all points of ingress. Images captured by the surveillance system shall be retained for a period of no less than thirty (30) days and must be made accessible to the Chief of Police or their designee upon request. Copies of footage shall be made available to the Chief of Police or his designee no later than two (2) business days after a request for the footage is made.

12.8 Throughout the term of this Agreement, Contractor shall maintain all offices, storage facilities and equipment in a neat, clean and organized manner.

12.9 All Contractor’s records, equipment, and storage facilities will be subject to periodic checks by the Department or other City investigators during normal business hours. Contractor shall provide access to employees of City at any time during normal business hours, for the purpose of inspection or audit to determine that the objectives and conditions of this Agreement are being fulfilled.

13. Reports and Records

13.1 Accounting Records: Contractor shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and expenditures pertaining in any way to this Agreement. Contractor shall keep such books and records as shall be necessary to properly perform the Services required by this Agreement and to enable the City to evaluate the performance of such Services. The City shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

13.2 Reports: Contractor shall periodically prepare and submit to the City such reports concerning the performance of the Services required by this Agreement, or as the City shall require.

13.3 Ownership of Documents: All reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Contractor, its employees, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be promptly delivered to City upon request of the City or upon the termination of this Agreement. Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials. Any use of such completed documents for other projects and/or use of incomplete documents without specific written authorization by the Contractor will be at the City's sole risk and without liability to Contractor, and the City shall indemnify the Contractor for all resulting damages. Contractor may retain copies of such documents for their own use. Contractor shall have an unrestricted right to use the concepts embodied in this Agreement. Contractor shall ensure that all its subcontractors shall provide for assignment to City of any documents or materials prepared by them. In the

event Contractor fails to secure such assignment, Contractor shall indemnify City for all resulting damages.

13.4 Release of Documents. All reports, records, documents, and other materials prepared by Contractor in the performance of services under this Agreement shall not be released publicly without the prior written approval of the City. All information gained by Contractor in the performance of this Agreement shall be considered confidential and shall not be released by Contractor without City’s prior written authorization.

13.5 Audit and Inspection of Records. After receipt of reasonable notice and during the regular business hours of City, Contractor shall provide City, or other agents of City, such access to Contractor’s books, records, payroll documents, and facilities as City deems necessary to examine, copy, audit, and inspect all accounting books, records, work data, documents, and activities directly related to Contractor’s performance under this Agreement. Contractor shall maintain such books, records, data, and documents in accordance with generally accepted accounting principles and shall clearly identify and make such items readily accessible to such parties during the term of this Agreement and for a period of three (3) years from the date of final payment by City hereunder.

13.6 Contractor shall comply with the following specific requirements relating to reports and records of its tow services:
a. Contractor shall record and log the time each call is received, the time of dispatch, the time of arrival, and the time in or of the end of service on every tow truck assignment Such records shall be submitted electronically with the monthly VTACR Fee payment, and available and open to City examination. b. Contractor shall maintain at its place of business, complete and accurate records of all tow services furnished under this Agreement, including a description of all vehicles towed, impounded, or stored at the request of the Department, the nature of services performed with respect to each tow for each towing assignment, and the itemized charges accrued on each vehicle for towing and storage.

13.7 Record systems must provide for immediate access, upon inquiry by the Department, to the following information.
a. Locate vehicle from the Department record number;
b. Locate vehicle from license number only
c. Locate vehicle from make, color, date, and location of impound. d. Date of filing all lien sale documents with DMV.

13.8 Contractor shall submit a monthly report to the Chief of Police and Finance Director, which shall include the following information

a. Total Department impounds and storages;
b. Number of times dispatched by the Department;
c. Number of calls for service resulting in impounds; d. Number of vehicles sold on lien sale under authority of Civil Code Section 3072, and as that law may be amended from time to time; e. Number of vehicles sold on lien sale under authority of Civil Code Section 3073, and as that law may be amended from time to time;

f. Certification of (a) the availability of the names and addresses of buyers sand description of vehicles when sold and (b) that such names, addresses, and descriptions are available for inspection by the Chief of Police and the Finance Director; and
g. Number of calls for service answered in which time beyond one hour was required to be handled.

14. Liens and Disposals

14.1 Contractor shall provide the Department with a list of unclaimed vehicles thirty (30) days before they are scheduled to be disposed of or sold. On or before the 10th day of each month, Contractor shall furnish to the Department a list of all vehicles that have been sold at lien sales during the previous month, and date of the action. The list shall include the vehicle owner’s name, address, vehicle make, year and model, license number, VIN number, and Department record number. Copies of all lien sale documents shall be resubmitted with such list. The documents shall be dated and include all charges imposed on each sale.

14.2 Contractor shall abide by all federal, state, and local laws pertaining to the disposal of unclaimed vehicles and shall not use any vehicle stored or impounded as a result of tow ordered by the Department for any purpose except as expressly authorized under this Agreement.

15. Performance

15.1 Contractor shall perform the services required under this Agreement in an ethical, professional, and orderly manner and shall endeavor to obtain and keep the confidence of the motoring public.

15.2 Contractor’s performance of all terms and conditions set forth herein shall be monitored and verified by the Supervisor or Sergeant of the Department’s Traffic Division.

15.3 Contractor acknowledges and agrees that the minimum performance standards required under this Agreement shall include the performance standards described in the SOQ, but not be limited to, the following;

a. Timely payment to City of VTACR Fee

b. Contractor shall provide payment to the City by the 10th day of each month, for the preceding month tows for all vehicle impound subject to the Vehicle Towing Administrative Cost Recovery fee.
c. Contractor shall include with each VTACR payment both a paper and electronic report of all the preceding months tows in which they collected the VTACR fee, in a format approved by the Department.
d. VTACR payment and report shall be provided to the following departments: Police

i. Timely submission of all required monthly reports.

ii. No more than three (3) “passes” on tow assignments within single calendar month.
iii. The ability to maintain an average response time of fifteen (15) minutes or less.
iv. Successful re-inspection of equipment and facilities. v. Maintenance of an error rate of less than ten (10) percent on tow invoices, as determined by a random audit of thirty (30) tow invoices. vi. A complaint ratio involving incidents of misconduct as provided in Section 7.11 of this Agreement of not more than one (1) percent of all tow requests.

16. Inspection

16.1 Contractor acknowledges a requirement to pass one (1) annual inspection of all tow trucks utilized on Department rotation calls, in order to qualify for participation in the term of the Agreement.

16.2 Department may conduct additional inspections without notice during normal business hours.

16.3 Contractor’s operator shall not dispatch any tow truck which has not been inspected and approved by the Department.

16.4 The Department shall inspect a tow truck within thirty (30) days of a request from an operator prior to use in the Rotation Tow Program.

16.5 The intent of the inspections is to ensure Contractor is involved in an ongoing safety maintenance program for their tow trucks. The annual inspection is not intended to find out what needs to be repaired/replaced on Contractor’s tow trucks. A tow truck responding to a Department call shall be properly equipped and operating in a safe condition.

16.6 Contractor shall be provided with written notification of the failure/denial of any tow truck or equipment and allowed a hearing upon request to the Department.

16.7 All of the equipment listed on an operator’s CHP 234A shall be accounted for during the annual inspection.

16.8 Contractor shall provide a current copy of their California Air Resource Board Certificate of Reported Compliance Truck and Bus Regulation commencing July 1, 2020.

17. Special Equipment

17.1 To properly and safely tow, service, or recover the wide variety of vehicles being operated on the highway, a towing procedure may require the use of special equipment specifically designed for the purpose. This special equipment shall be listed on the Contractor’s CHP 234A and should be used when appropriate.

17.2 All special equipment listed on the CHP 234A shall be accounted for during the annual inspection, as well as when additional equipment is added.

17.3 Any special equipment, which requires certification/inspection of the equipment and/or operator (e.g., cranes, forklifts), the applicable and current certification/inspection document shall be provided to the California Highway Patrol Area office at the time of enrollment or as equipment is added by an operator.

18. Risk

18.1 Contractor assumes all risk in the event of damage, theft, fire, or otherwise, of the vehicles or any other property towed, impounded, or stored by Contractor, its employees or agents.

18.2 Notwithstanding any other term or condition herein, in responding to a call from the Department, Contractor shall have no claim whatsoever against City or any right to recover from City for the cost of any of the services it renders in the performance of this Agreement. Contractor shall look solely and exclusively to the owner of the vehicle, towed, impounded, or stored, for payment of the services provided by the Contractor.

18.3 Contractor shall assume the entire risk of nonpayment of any service charges incurred pursuant to this Agreement.

19. Insolvency

Contractor shall not, without the prior written consent of the Chief of Police, suffer either the appointment of a receiver to take possession of all or substantially all of the assets of Contractor or make a general assignment of such assets for the benefit of creditors.

Any such action taken or suffered by Contractor under any insolvency or bankruptcy proceeding constitutes a breach of contract by Contractor and all property assigned by City for safe care shall be “released” to another assigned service provider, as specified by the Chief of Police or his or her designee, with a reimbursement for towing, storage, and related fees borne by the service provider assuming the new responsibility.

EXHIBIT “B”

SCHEDULE OF COMPENSATION

1. Rates and VTACR Fee

1.1 In accordance with Sections 11.82.090 and 11.82.100 of the Palm Springs Municipal Code, and as authorized by California Vehicle Code Section 22850.5, the Vehicle Towing Administrative Cost Recovery (VTACR) Fee is imposed to recover the City’s actual and reasonable administrative costs associated with the enforcement, removal, storage, and release of impounded vehicles. These costs include overhead, personnel, and contract management expenses necessary to operate the official police tow services program. Pursuant to Resolution No. 25189, the City Council has reviewed and adopted a VTACR fee in the amount of $235.00 per tow, calculated based on the City's total annual administrative cost of $345,016.16.

Each official police tow services provider shall collect the VTACR fee at the time of vehicle release and remit payment to the City of Palm Springs no later than the 10th day of each month. The remittance shall include an itemized report detailing all vehicles towed under the program. The City may waive the VTACR fee in cases of abandoned vehicles, where neither the City nor the Contractor collects any towing or storage fees, and the Contractor avails itself of the Abandoned Vehicle Abatement Program, as set forth in Palm Springs Municipal Code Section 11.80.

The Tow Fee Schedule is adopted as follows:

Fee Schedule

TOWING SERVICES CHARGES HOURLY
CLASS A TOW TRUCK $230*
CLASS B TOW TRUCK $285*

STORAGE FEES DAILY
MOTORCYCLES $80
PASSENGER CARS $90
TRUCKS | TRAILERS 20' OR LESS $90
TRUCKS | TRAILERS | VEHICLES 20' TO 30' $95
TRUCKS | TRAILERS | VEHICLES 30' ABOVE $100
VEHICLE TOWING ADMINISTRATIVE COST RECOVERY $235

OTHER RELATED FEES ONE TIME
AFTER HOURS RELEASE / GATE FEE $100

SECONDARY / SUBSEQUENT TOW ½

ESTABLISHED

TOW RATE
*Hourly rates

1.2 When Contractor fails, neglects, or refuses to pay or remit the VTACR fee under this Section, or otherwise pays the VTACR fee, but later cancels or stops payment on it, and in either situation that payment or remittance is lawfully due or owing, the entire amount of the unpaid or non-remitted VTACR fee constitutes a debt to the City by Contractor, which the City may recover in a civil action. Failure to timely pay the VTACR shall also be deemed a material breach of this Agreement, and the City may terminate the Agreement as provided for herein.

1.3 “Dry Runs”: City shall not be liable to pay Contractor any charge whatsoever or fee for a call that does not result in a chargeable service being rendered by Contractor (i.e., a “dry run”). In the event that a vehicle towed or impounded in error due to an incorrect directive from the Department, Contractor shall, upon verification and direction by the Department, immediately release the vehicle to the registered owner without charge. Contractor shall wave all towing, storage, and administrative fees associated with the erroneous tow prior to release. Contractor shall maintain records of such waivers and provide documentation upon request by the Department.

1.4 Pursuant to Palm Springs Municipal Code Section 11.82.070(b), the City Council of the City shall establish the fee schedule for services to be provided under this Agreement. All charges for towing, impound, storage, and other services required to be performed by Contractor under the terms and conditions of this Agreement shall not exceed those charges adopted by City Council.

1.5 All rates and charges shall be conspicuously posted in the Contractor’s office and in all tow vehicles and shall be available for review by City personnel and/or persons for whom tow service is provided. All customer bills shall be itemized. It will be the Contractor’s responsibility to collect payment for services it renders under this Agreement from the motorists, and City shall not be responsible in any way whatsoever for payment of these charges.

1.6 Contractor shall accept a valid bank credit card or cash for payment of towing and storage by the registered owner, legal owner, or agent of the owner claiming the vehicle.

1.7 Department may waive the VTACR fee due to extenuating circumstances. It is not the intention of the City nor the Police Department to penalize victims.

Circumstances under which the VTACR fee may be waived include the impounding of recovered stolen or embezzled vehicles, and vehicles impounded due to driver injury or incapacitation.

1.8 In the event that a vehicle is towed or impounded in error due to an incorrect directive from the Department, Contractor shall, upon verification and direction by the Department, immediately release the vehicle to the registered owner without charge. Contractor shall waive all towing, storage, and administrative fees associated with the erroneous tow. The Department shall provide written or electronic authorization confirming the erroneous tow prior to release. Contractor

shall maintain records of such waivers and provide documentation upon request by the Department.

1.9 Whenever a motorist requests tow assistance and does not specify a particular tow company or membership agency, the service shall be assigned to the Contractor in accordance with the Department’s adopted rotational call-for-service system. All charges arising out of such assistance assigned to the Contractor shall be the exclusive responsibility of Contractor and the requesting motorist. The Department shall not be liable for any charges whatsoever arising out of a motorist assistance call. Contractor shall not charge such motorist more than the rates specified in this Agreement.

EXHIBIT “C”

EXECUTIVE ORDER N-6-22 CERTIFICATION

CITY OF PALM SPRINGS
OFFICIAL POLICE TOWING AND STORAGE SERVICES 26Q170

THIS OFFICIAL POLICE TOWING AND STORAGE SERVICE AGREEMENT (the “Agreement”) is made and entered into on this 27th day of August 2026 by and between the City of Palm Springs, a California charter city and municipal corporation, (hereinafter referred to as “City”), and Mohica Towing Inc. (hereinafter referred to as “Contractor”). Any reference in this Agreement to the “Department” shall be deemed to refer to the Palm Springs Police Department.

RECITALS
A. Pursuant to Chapter 11.82 of the Palm Springs Municipal Code, as now or hereafter amended (the “Tow Ordinance”), City’s Police Department requires the aid and assistance of towing services on a regular basis in the performance of its emergency response and traffic control duties, including response to and the investigation of vehicular accidents.

B. As a means for providing the necessary towing service, City has approved the use of one or more towing service companies who have agreed to contract with City to provide the requisite towing service pursuant to the requirements and performance criteria established by the Tow Ordinance, the City’s Police Department, the terms and conditions contained herein and in the City of Palm Springs Request for Statements of Qualifications (RFQ 04-26) for Towing and Storage of Vehicles, as requested by the Department.

C. Official police tow services provider means a towing company selected by the Department to be used on-call and on a rotational basis for any police emergency or response situation where the use of a tow truck is required.

D. In order for the Contractor to perform as a towing services company for City, the towing service company must enter into a contractual agreement with City and must be designated by City as a towing services company.

E. Contractor owns or leases tow trucks and employs personnel that are capable of providing the desired vehicle towing and storage services to City.

F. City desires to designate Contractor and Contractor desires to accept and be designated by City, as an independent towing services company, for purposes of providing police towing and vehicle impound and storage services for City, pursuant to the terms and conditions set forth in this Agreement.

NOW THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by reference, and the mutual promises, covenants, and conditions contained herein, City and Contractor agree as follows:

AGREEMENT
The Agreement between the parties hereto shall consist of the following: (1) this Agreement; (2) the City of Palm Springs Request for Statements of Qualifications (RFQ 04- 26) for Towing and Storage of Vehicles as Requested by the Palm Springs Police

Department (“SOQ”), including all addenda issued related thereto; and, (3) the signed, original Statement of Qualifications submitted (“Submittal”) by Contractor in response to the SOQ, which shall all be referred to collectively hereinafter as the “Contract Documents.” The SOQ and signed submittal are both hereby incorporated by reference and are made part of this Agreement as though fully set forth herein. All provisions of the SOQ and the Submittal shall be binding on the parties. Should any inconsistency or ambiguity occur or exist in the Contract Documents, the provisions of the Agreement, then the provisions of the SOQ, then the provisions of the Submittal shall control. To ensure the efficient performance of police towing services for the Department, Contractor hereby agrees to the following service provider requirements, specifications, performance criteria, and terms and conditions:

1.0 DEFINITIONS
For purposes of this Agreement, the following words and phrases have the meanings ascribed to them unless the context otherwise requires:
“Administrative cost” means all direct and indirect costs associated with the administration of the provisions of the Tow Ordinance and any agreement entered into pursuant thereto. “Attendant” or “provider” means a trained and/or qualified individual responsible for the operation of a tow truck or vehicle storage facility.
“Contractor” means the Official Police Tow Services Provider under contract with the City pursuant to this Agreement.
“Hearing Officer” means the Chief of Police or a designee of the Chief of Police designated by the Chief of Police to hear any appeal or conduct a hearing pursuant to the provisions of the Tow Ordinance.
“Non-consensual vehicle towing” means towing service:

1. Ordered or requested by the City’s police department or other City employees who are duly authorized by law to remove, impound, or store vehicles.

2. Done without the vehicle owner’s or operator’s knowledge, consent, or authorization, regardless of whether the vehicle is on public or private property. Examples include, but are not limited to, a vehicle for which registration is at least six months past due, or a vehicle driven by persons who are not licensed for that particular class of vehicle, or when an owner or an operator:

a. Is arrested, detained, incapacitated, or physically unable to drive the vehicle, or

b. Fails to either designate or express a preference for a particular towing company.

“Official police tow services provider” means a towing company having a contractual relationship with the City of Palm Springs to provide towing services to the Police Department.

“Operator” means a person who is lawfully entitled to possession of a vehicle. The term includes the owner’s agent.

“Owner” has the same meaning as that that term is defined in Vehicle Code Section 460, or any successor legislation. The term includes the owner’s agent.

“Person” means an individual, company, firm, association, trust, estate, partnership, corporation, limited liability company, or an entity, however organized.

“Police Chief” means the Chief of Police for the City of Palm Springs, or the designee of the Chief of Police.

“Recovery” refers to responding to a vehicle, which is overturned, down an embankment, or otherwise not upright on its wheels.

“Response time” means the elapsed time between the relaying of the tow service request to the Contractor and arrival of the appropriate tow vehicle on the scene.

“Tow truck” is a motor vehicle which has been altered or designed and equipped for and exclusively used in the business of towing vehicles by means of a crane, tow bar, tow line, or dolly, or is otherwise exclusively used to render assistance to other vehicles.

“Towed” means a vehicle hauled, pulled, or transported by a tow truck.

“Towing service” means roadside assistance, towing, storing, lien-selling, or related operation for a damaged, inoperative, abandoned, stolen, recovered, or illegally parked vehicle.

“Vehicle” has the same meaning as that term is defined in California Vehicle Code Section 670, or any successor legislation. A “stored vehicle” or “impounded vehicle” is any vehicle removed from a site and taken to the tow yard at the direction of a Police Department employee and for which a Vehicle Report (currently, CHP form is provided to the Official Police Tow service provider).

2.0 COORDINATION OF WORK

2.1 Representative of Contractor. The following principal of Contractor is designated as being the principal and representative of Contractor authorized to act in its behalf and make all decisions with respect to the Services to be performed under this Agreement: Joel Mojica, Vice President. It is expressly understood that the experience, knowledge, education, capability, expertise, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services performed hereunder. The foregoing principal may not be changed by Contractor without prior written approval of the Contract Officer.

2.2 Contract Officer. The Contract Officer shall be the City Manager or his/her designee ("Contract Officer"). Contractor shall be responsible for keeping the Contract Officer fully informed of the progress of the performance of the services.

Contractor shall refer any decisions that must be made by City to the Contract Officer. Unless otherwise specified, any approval of City shall mean the approval of the Contract Officer.

2.3 Prohibition Against Subcontracting or Assignments. The experience, knowledge, capability, expertise, and reputation of Contractor, its principals and employees, were a substantial inducement for City to enter into this Agreement.

Therefore, Contractor shall not assign full or partial performance of this Agreement, nor any monies due, voluntarily or by operation of law, without the prior written consent of City. Contractor shall not contract with any other entity to perform the Services required under this Agreement without the prior written consent of City.

If Contractor is permitted to subcontract any part of this Agreement by City, Contractor shall be responsible to City for the acts and omissions of its subcontractor(s) in the same manner as it is for persons directly employed.

Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the Work will be considered employees of Contractor. City will deal directly with and will make all payments to Contractor. In addition, neither this Agreement nor any interest in this Agreement may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written consent of City. Transfers restricted in this Agreement shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release Contractor or any surety of Contractor from any liability under this Agreement without the express written consent of City.

2.4 Independent Contractor. The legal relationship between the Parties is that of an independent contractor, and nothing shall be deemed to make Contractor a City employee. The following additional provisions shall apply:

2.4.1 During the performance of this Agreement, Contractor and its officers, employees, and agents shall act in an independent capacity and shall not act or represent themselves as City officers or employees. The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Contractor or any of its officers, employees, or agents, except as set forth in this Agreement. Contractor, its officers, employees, or agents shall not maintain an office or any other type of fixed business location at City’s offices. City shall have no voice in the selection, discharge, supervision, or control of Contractor’s employees, servants, representatives, or agents, or in fixing their number, compensation, or hours of service. Contractor shall pay all wages, salaries, and other amounts due its employees in connection with this Agreement and shall be responsible for all reports and obligations respecting them, including but not limited to social security income tax withholding, unemployment compensation, workers’ compensation, and other similar matters. City shall not in any way or for any purpose be deemed to be a partner of Contractor in its business or otherwise a joint venture or a member of any joint enterprise with Contractor.

2.4.2 Contractor shall not have any authority to bind City in any manner. This includes the power to incur any debt, obligation, or liability against City.

2.4.3 No City benefits shall be available to Contractor, its officers, employees, or agents in connection with any performance under this Agreement. Except for professional fees paid to Contractor as provided for in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for the performance of Services under this Agreement. City shall not be liable for compensation or indemnification to Contractor, its officers, employees, or agents, for injury or sickness arising out of performing Services. If for any reason any court or governmental agency determines that the City has financial obligations as otherwise provided for in this Agreement, of any nature relating to salary, taxes, or benefits of Contractor’s officers, employees, servants, representatives, subcontractors, or agents, Contractor shall indemnify City for all such financial obligations.

3. INSURANCE

3.1 Contractor shall procure and maintain, at its sole cost and expense, the insurance described below. The insurance shall be for the duration of this Agreement and includes any extensions, unless otherwise specified in this Agreement. The insurance shall be procured in a form and content satisfactory to City. The insurance shall apply against claims which may arise from the Contractor's performance of Work under this Agreement, including Contractor's agents, representatives, or employees. In the event the City Manager determines that the
Work or Services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the City Manager or his designee. Contractor shall immediately substitute any insurer whose A.M. Best rating drops below the levels specified in this Agreement. All insurance provided under this Agreement shall be on an occurrence basis. The minimum amount of insurance required shall be as follows:

3.1.1 Commercial Business Automobile Liability, as required by Vehicle Code Section 16500.5. Such coverage must cover all owned, hired, and non-owned vehicles, including leased and rented vehicles. If Contractor does not own any vehicles, this requirement may be satisfied by a non- owned vehicle endorsement to the CGL and Umbrella/Excess policies.

The coverage shall include bodily injury and property damage, with a combined single limit of not less than $1,000,000 per occurrence (Combined single limit each accident for bodily injury and property damage). These minimum standards are to include non-owned and hired auto coverage.

3.1.2 Uninsured Motorist, with a combined single limit of not less than the legal minimum.

3.1.3 On-Hook Coverage / Garage Keepers Legal Liability insuring the vehicle in tow, with not less than the following limits based on the size of the tow truck:

A. Class A tow truck $100,000
B. Class B tow truck $100,000

3.1.4 Garage Liability Insurance, including premises and operations coverage for bodily injury and property damage with a combined single limit of not less than $500,000.

3.1.5 Garage Keepers Liability, in an amount not less than the amounts required for On-Hook coverage for vehicles in the care, custody, and control of Contractor in the storage yard.

3.1.6 Workers’ Compensation (Statutory) and Employer’s Liability Insurance. Contractor shall comply with all of the provisions of the Workers’ Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar state and federal acts or laws applicable; and shall indemnify, defend, and hold harmless City and its Council Members, officers, employees, and agents from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description, including attorneys’ fees and costs incurred by City or presented, brought, or recovered against City, its Council Members, officers, employees, and agents, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by Contractor under this Agreement.

Contractor shall obtain and maintain, in full force and effect throughout the term of this Agreement, workers’ compensation insurance in at least the minimum statutory amounts, and in compliance with all other statutory requirements, as required by the State of California. Contractor agrees to waive and obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies. If Contractor has no employees, Contractor shall complete the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.

3.1.7 Commercial General Liability Insurance (CGL): Contractor shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of commercial general liability insurance written on a per occurrence basis with a combined single limit of at least one million dollars ($1,000,000.00) and two million dollars ($2,000,000.00) general aggregate for bodily injury and property damage including coverages for contractual liability, personal injury, independent contractors, broad form property damage, products and completed operations.

3.1.8 Employer Liability Insurance: Contractor shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of employer liability insurance written on a per occurrence basis with a policy

limit of at least one million dollars ($1,000,000.00) for bodily injury or disease.

3.1.9 Those tow truck operators removing a vehicle from a hazardous materials incident to the nearest reasonable and safe stopping location will be considered to be transporting property subject to normal minimum insurance requirements of Section 34631.5 of the Vehicle Code.

3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager or his/her designee prior to commencing any work or services under this Agreement.

Contractor guarantees payment of all deductibles and self-insured retentions.

City reserves the right to reject deductibles or self-insured retentions in excess of
$10,000, and the City Manager or his/her designee may require evidence of pending claims and claims history as well as evidence of Contractor’s ability to pay claims for all deductible amounts and self-insured retentions proposed in excess of $10,000.

3.3 Other Insurance Requirements. The following provisions shall apply to the insurance policies required of Contractor under this Agreement:

3.3.1 For any claims related to this Agreement, Contractor’s coverage shall be primary insurance with respect to the City and its officers, council members, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City and its officers, council members, officials, employees, agents, and volunteers shall be in excess of Contractor’s insurance and shall not contribute with it.

3.3.2 Any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to City and its officers, council members, officials, employees, agents, and volunteers.

3.3.3 All insurance coverage and limits provided by Contractor and available or applicable to this Agreement are intended to apply to each insured, including additional insureds, against whom a claim is made or suit is brought to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations shall limit the application of such insurance coverage.

3.3.4 No required insurance coverages may include any limiting endorsement which substantially impairs the coverages set forth in this Agreement (e.g., elimination of contractual liability or reduction of discovery period), unless the endorsement has first been submitted to the City Manager and approved in writing.

3.3.5 Contractor agrees to require its insurer to modify insurance endorsements to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the endorsements. Certificates of insurance will not be accepted in lieu of required endorsements, and submittal of certificates without required endorsements may delay commencement of the Project. It is Contractor’s obligation to ensure timely compliance with all insurance submittal requirements as provided in this Agreement.

3.3.6 Contractor agrees to ensure that subcontractors, and any other parties involved with the Project who are brought onto or involved in the Project by Contractor, provide the same minimum insurance coverage required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with subcontractors and others engaged in the Project will be submitted to the City for review.

3.3.7 Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any insurance requirement in no way imposes any additional obligations on the City nor does it waive any rights in this or any other regard.

3.3.8 Contractor shall provide proof that policies of insurance required in this Agreement, expiring during the term of this Agreement, have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. Endorsements as required in this Agreement applicable to the renewing or new coverage shall be provided to City no later than ten (10) days prior to expiration of the lapsing coverage.

3.3.9 Requirements of specific insurance coverage features or limits contained in this section are not intended as limitations on coverage, limits, or other requirements, or as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive.

3.3.10 The requirements in this section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impair the provisions of this section.

3.3.11 Contractor agrees to provide immediate notice to City of any claim or loss against Contractor arising out of the Work performed under this Agreement and for any other claim or loss which may reduce the insurance available to pay claims arising out of this Agreement. City assumes no obligation or liability by such notice, but has the right (but not

the duty) to monitor the handling of any such claim or claims if they are likely to involve City, or to reduce or dilute insurance available for payment of potential claims.

3.3.12 Contractor agrees that the provisions of this section shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages resulting from the Contractor’s activities or the activities of any person or person for which the Contractor is otherwise responsible.

3.4 Sufficiency of Insurers. Insurance required in this Agreement shall be provided by authorized insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best’s Key Rating of B++, Class VII, or better, unless such requirements are waived in writing by the City Manager or his designee due to unique circumstances.

3.5 Verification of Coverage. Contractor shall furnish City with both certificates of insurance and endorsements, including additional insured endorsements, affecting all of the coverages required by this Agreement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the right to require Contractor’s insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required for Errors and Omissions and Workers’ Compensation policies.

Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Insurance Coverage with an approved Additional Insured Endorsement with the following endorsements stated on the certificate:

1. "The City of Palm Springs, its officials, employees, and agents are named as an additional insured…” ("as respects City of Palm Springs Contract No. " or "for any and all work performed with the City" may be included in this statement).

2. "This insurance is primary and non-contributory over any insurance or self- insurance the City may have..." ("as respects City of Palm Springs Contract No. " or "for any and all work performed with the City" may be included in this statement).

3. "Should any of the above described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named." Language such as, “endeavor to” mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out.

4. Both the Workers’ Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the policies. All certificates of insurance and endorsements are to be received and approved by the City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter. Failure to obtain the required documents prior to the commencement of work shall not waive the Contractor’s obligation to provide them.
4 BREACH OF CONTRACT
Any of the following acts if committed by Contractor during the performance of this Agreement shall be considered a material breach of this Agreement:

4.1 Nonpayment of City any business license fees, VTACR fees, or any other fees required by this Agreement or the Palm Springs Municipal Code.

4.2 Failing to comply with any provision of this Agreement or breach of any rules, regulations, or conditions provided in this Agreement or the Palm Springs Municipal Code.

4.3 Violation of any federal, state or local law by Contractor, any person having any ownership interest in Contractor, or any employee of Contractor.

4.4 Failing to maintain a satisfactory level of service to the City or the public.

4.5 Failing to keep any vehicle towed at the request of the Department in safe condition and good repair.

4.6 Failing to use distinctive coloring, monogram, or insignia on the vehicle.

4.7 Any deviation from the schedule of rates set forth in this Agreement without prior approval of the Chief of Police.

4.8 Passing on, or refusing, for any reason, a tow assignment from the Department three or more times in any calendar month.

4.9 Allowing the insurance coverage required herein to either be withdrawn or lapse or to no longer be in force for any reason.

5 ACTS OR OMISSIONS OF REPRESENTATIVES
It is understood and agreed by the parties that the acts and/or omissions of the owner(s), officers, operators, officials, employees, agents, and representatives of Contractor in the performance of the services and obligations under this Agreement shall constitute the acts and/or omissions of Contractor.

6 ENFORCEMENT OF AGREEMENT

6.1 California Law and Venue. This Agreement shall be construed and interpreted both as to validity and as to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior

Court of the County of Riverside, State of California, or any other appropriate court in such County, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

6.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual and the result of negotiation between the Parties. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. The caption headings of the various sections and paragraphs of this Agreement are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.

6.3 Default of Contractor. Contractor’s failure to comply with any provision of this Agreement shall constitute a default.

6.3.1 If the City Manager, or his designee, determines that Contractor is in default in the performance of any of the terms or conditions of this Agreement, he/she shall notify Contractor in writing of such default.

Contractor shall have ten (10) days, or such longer period as City may designate, to cure the default by rendering satisfactory performance. In the event Contractor fails to cure its default within such period of time, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice of any remedy to which City may be entitled at law, in equity, or under this Agreement. Contractor shall be liable for all reasonable costs incurred by City as a result of such default. Compliance with the provisions of this section shall not constitute a waiver of any City right to take legal action in the event that the dispute is not cured, provided that nothing shall limit City’s right to terminate this Agreement without cause under Section

5.3. 6.3.2 If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of the preceding subsection, take over the work and prosecute the same to completion by contract or otherwise. The Contractor shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the charges as otherwise allowed herein (provided that the City shall use reasonable efforts to mitigate such damages). The City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated. The withholding or failure to withhold payments to Contractor shall not limit Contractor’s liability for completion of the Services as provided in this Agreement.

6.4 Waiver. No waiver of any provision of this Agreement shall be effective unless

in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. Any waiver by the Parties of any default or breach of any covenant, condition, or term contained in this Agreement, shall not be construed to be a waiver of any subsequent or other default or breach, nor shall failure by the Parties to require exact, full, and complete compliance with any of the covenants, conditions, or terms contained in this Agreement be construed as changing the terms of this Agreement in any manner or preventing the Parties from enforcing the full provisions.

6.5 Rights and Remedies Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

6.6 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct, remedy or recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

6.7 Attorney Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non-judicial proceeding, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non-prevailing Party all reasonable costs and expenses. These include but are not limited to reasonable attorney fees, expert contractor fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding. To the extent authorized by law, in the event of a dismissal by the plaintiff or petitioner of the litigation or non-judicial proceeding within thirty (30) days of the date set for trial or hearing, the other Party shall be deemed to be the prevailing Party in such litigation or proceeding.

7 COMPLAINT PROCESS; TERMINATION FOR VERIFIED COMPLAINTS

7.1 Acknowledgement of Complaint Procedure. Contractor hereby acknowledges and agrees that its performance under this Agreement shall be subject to the City Police Department’s (the “Department”) internal complaint and grievance procedure (the “Complaint Procedure”), which permits members of the public to submit complaints concerning Contractor’s provision of towing and storage services.

7.2 Investigation and Recordkeeping. The Department shall have the sole discretion to receive, investigate, and evaluate complaints submitted under the Complaint Procedure. The Department shall maintain records of all complaints, including findings as to whether any complaint is determined to be verified and meritorious.

Contractor shall cooperate fully with any inquiry or investigation undertaken by the Department in connection with such complaints, including the production of records and the reasonable availability of personnel for interviews.

7.3 Grounds for Termination. The receipt of verified and meritorious complaints, in such number or nature as the Department reasonably determines evidences a pattern of misconduct, substandard performance, or other failure to comply with the terms of the Agreement or applicable law, shall constitute grounds for termination of this Agreement pursuant to Section 11.82.150 of the City of Palm Springs Municipal Code.

7.4 Reservation of Rights. Nothing herein shall be construed to limit or restrict the City’s authority under Section 11.82.150 of the City of Palm Springs Municipal Code, or any other provision of this Agreement, to suspend, revoke, or terminate this Agreement or to exercise any other remedy available at law or in equity. 8 NOTICE
Any notice, demand, request, consent, approval, or communication that either party desires, or is required to give to the other party or any other person shall be in writing. All notices shall be personally delivered, sent by pre-paid First Class U.S. Mail, registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by facsimile with attached evidence of completed transmission. All notices shall be deemed received upon the earlier of (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) five (5) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by facsimile. Any notice, request, demand, direction, or other communication sent by facsimile must be confirmed within forty-eight (48) hours by letter mailed or delivered. Other forms of electronic transmission such as e-mails, text messages, and instant messages are not acceptable manners of notice required hereunder. Notices or other communications shall be addressed as follows:

To City: City of Palm Springs
Attention: City Manager & City
Clerk
3200 E. Tahquitz Canyon Way
Palm springs, California 92262
Telephone: (760)323-8204
Facsimile: (760) 323-8332

To Contractor: Mohica Towing Inc.

Attention: Jesse Mojica
4785 Camino Parocela
Palm Springs, CA 92262
Telephone: (760) 324-1414
Facsimile: (760) 778-0072

9 CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION

9.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor-in-interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

9.2 Conflict of Interest. Contractor acknowledges that no officer or employee of the City has or shall have any direct or indirect financial interest in this Agreement

nor shall Contractor enter into any agreement of any kind with any such officer or employee during the term of this Agreement and for one year thereafter.

Contractor warrants that Contractor has not paid or given, and will not pay or give, any third party any money or other consideration in exchange for obtaining this Agreement.

9.3 Covenant Against Discrimination. In connection with its performance under this Agreement, Contractor shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin (i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). Contractor shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Contractor certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Contractor activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Contractor is in full compliance with the provisions of Palm Springs Municipal Code Section 7.05.02, including without limitation the provision of benefits, relating to non-discrimination in city contracting.

10 SEVERABILITY
Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If any provision of this Agreement shall be determined to be invalid by a final judgment or decree of a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the reminder of that provision, or the remaining provisions of this Agreement unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

11 INTEGRATION
This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter in this Agreement.

12 AMENDMENT
No modification, amendment, addition to, deletion, or alteration of the terms of this Agreement, whether written or oral, shall be valid unless made in writing and formally approved and executed by all parties.

13 NO WAIVER

No delay or omission in the exercise of any right or remedy available hereunder shall impair such right or remedy or be construed as a waiver. Any waiver of any default or condition hereunder must be in writing and shall not be construed as a waiver of any other default concerning the same or any other provision of this Agreement.

The waiver by City of any breach by Contractor of any of the provisions of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach or default by Contractor either of the same or a different provision of this Agreement. 14 THIRD PARTY BENEFICIARIES
Except as may be expressly provided for in this Agreement, nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third-party beneficiary or otherwise, upon any entity or person not a party to this Agreement.
15 SUCCESSORS IN INTEREST
This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and assignees.
16 CORPORATE AUTHORITY
Each of the undersigned represents and warrants that (i) the Party for which he or she is executing this Agreement is duly authorized and existing, (ii) he or she is duly authorized to execute and deliver this Agreement on behalf of the Party for which he or she is signing, (iii) by so executing this Agreement, the Party for which he or she is signing is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which the Party for which he or she is signing is bound.
17 EFFECTIVE DATE
The Effective Date of the Agreement shall be that which is entered at the top of the first page of this agreement, where upon both parties have fully executed the documents herein.

SIGNATURES ON NEXT PAGE

SIGNATURE PAGE TO CONTRACT SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND MOHICA TOWING INC.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.

CONTRACTOR:

By: ____________________________ By: ________________________________ Signature Signature
(2nd signature required for Corporations)

Date: Date:

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No.

APPROVED AS TO FORM: ATTEST:

By: ___________________________ By: _______________________________ City Attorney City Clerk

APPROVED:

By: _______________________________ Date:

City Manager – over $150,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000

EXHIBIT “A”

SCOPE OF SERVICES

1.1 Contractor shall perform vehicle towing, impound, and storage services as directed by the Department and in addition such other services as provided in this Agreement, and shall provide necessary storage facilities, tow services, labor, materials, equipment, machinery, and tools.

1.2. Contractor shall comply with all federal, state, and local laws, ordinances, rules, and regulations that regulate tow units and the impound, towing, storage, selling, or junking of vehicles. Specific services include, but are not limited to, towing and storage of vehicles involved in accidents or disabled for other causes (when alternate towing is either not appropriate or is not requested by the owner or operator of the vehicle) and towing and storing of vehicles which for other reasons are within the jurisdiction of the Palm Springs Police Department, including impounded/forfeited vehicles under the provisions of California Vehicle Code 14602.6 and 14607.6. Contractor shall be able to properly conduct a lien sale as outlined in Division 11, Chapter 10, Article 2, beginning with Section 22851 of the California Vehicle Code.

1.3. Contractor shall also provide the following special services to the City, at no charge to City:

1.3.1 Contractor shall participate in a monthly rotational tow schedule for VillageFest, with the department assigning a tow company each month and providing advanced notice. Contractors must maintain detailed records of all VillageFest tows, including the date, time, and storage location (if applicable), and submit a monthly report detailing all tows and any fee waivers applied
Towing services shall be provided in accordance with the City’s official towing rotation. Towing operations will commence one (1) hour and thirty (30) minutes prior to the start of VillageFest. Any vehicle remaining within the designated event boundaries may be subject to towing at the sole discretion of a Department officer, with no vehicle removed without explicit officer authorization.

Towed vehicles shall first be transported to a designated drop location, where they will remain until (30) thirty minutes past the official start time of VillageFest. If the registered owner or authorized agent claims the vehicle during this holding period, they shall be charged for one (1) hour of towing service, and all City administrative fees shall be waived. The tow operator shall be responsible for facilitating vehicle release during this time.

Once the holding period expires, all unclaimed vehicles shall be relocated to the Contractor’s storage facility, where standard storage fees shall apply. Registered owners or authorized agents of vehicles towed from VillageFest shall be charged for one (1) hour of towing service and all City administrative fees shall be waived.

After hours gate fees would apply if the owner/agent retrieves the vehicle outside regular business hours. Contractors must ensure full compliance with all record- keeping, reporting, and operational requirements as set forth by the Department.

1.3.2 Towing services necessary to support the City’s Annual Special Events, which require street closures. On a rotational basis, as needed and determined by the Department, Contractor shall remove cars from areas within the designated boundaries, coordinating with Special Events staff and the Department.

Annual Special Events include, but are not limited to the following:

1. Homecoming Parade

2. Pride Block Parties

3. Pride Festival

4. Pride Parade

5. Veteran’s Day Parade

6. Festival of Lights Parade

7. Tour de Palm Springs

8. Black History Parade

Contractors will be utilized on a rotational basis for each individual tow during special events. For parades, any vehicles parked along the designated parade route that require removal will also be towed on a rotational basis prior to the start of the event. Vehicles towed from special event routes requiring street closures shall be subject to standard towing and storage fees, however, all City administrative costs shall be waived.

Once the route is cleared and the parade is underway, one Contractor will remain on standby for the entirety of the event to provide tow services such as a float, vehicle, or equipment breakdown. Standby assignments will be rotated for each parade to ensure equity among all participating Contractors. The assigned Contractor shall have a tow vehicle staged within the immediate vicinity of the event to ensure a prompt response. The Department will determine standby locations and response protocols to support efficient vehicle removal while minimizing disruption to the event.

1.3.3 As-needed abatement of vehicles from private property at the direction of the City’s Code Enforcement Officers in accordance with the City’s Abandoned Vehicle Abatement Program in accordance with the terms and conditions set forth in Title 11 of the City of Palm Springs Municipal Code, “Peace, Morals and Safety”, Chapter 11.80, “Abandoned Vehicles” which is incorporated herein by reference and may be found online at: City of Palm Springs, CA ABANDONED VEHICLES.

No charge shall be assessed against City or the owner of any vehicle that is towed, stored, or dismantled under the provisions of the Abandoned Vehicle Abatement Program.

1.4. Contractor is hereby designated as an authorized official police tow service provider for City by the Chief of Police. All trucks, personnel, and equipment used by Contractor in the performance of this Agreement shall be owned by or leased to Contractor and shall be subject to all provisions and performance standards set forth herein.

1.5. Contractor acknowledges and agrees that this Agreement to provide tow services as set forth herein is non-exclusive. City intends to concurrently contract with other designated tow service providers. City shall utilize the services of each tow service provider as City, in its sole discretion, deems necessary and appropriate.

1.6. Consideration : In consideration of Contractor’s agreement to perform the services provided for herein, City agrees that throughout the term of this Agreement, Contractor shall have:

1.7. The right to tow, impound, and store vehicles at the direction of the Department, subject to the Department’s rotational call-for-service system, as it may be amended from time to time, at the Department’s sole discretion, and the right to identify itself as an official police tow service provider for City.

1.8. Provided, however, that nothing contained herein shall deprive the owner or operator of a vehicle from requesting and receiving towing services from a person or entity other than Contractor.

1.9. Provided, however, that when, in the opinion of the Department, an emergency exists or where Contractor is either unable or unwilling for any reason to provide adequate or timely tow service, then the Department shall have the right to call other qualified tow services. Under such circumstances, the decision to call another tow service shall be at the exclusive discretion of the Department.

2. Term and Termination

2.1 This Agreement shall remain in effect for three (3) years from the Effective Date. This Agreement may be reviewed at the conclusion of the initial three (3) year period and extended for up to two (2) one (1) year periods by mutual written agreement of the parties.

2.2 Subject to the requirements of Palm Springs Municipal Code Section 11.82.150, as it may be amended from time to time, this Agreement may be cancelled, revoked, and/or suspended by City at any time during the three (3) year term, or the subsequent one (1) year optional terms, if extended, upon Contractor’s breach of this Agreement. In the event of termination for cause by City, Contractor shall be compensated for those services that have been fully and adequately completed and accepted by the Department as of the date of termination. Termination of this Agreement for cause may be considered by City in determining whether to enter into future contracts with Contractor.

2.3 This Agreement may also be cancelled without cause upon thirty (30) days written notice provided by the City or upon ninety (90) day written notice from the Contractor.

In the event that City should cancel, revoke, or suspend Contractor’s work pursuant to this Section 2.3, Contractor shall be entitled to payment for services fully and adequately provided hereunder prior to the effective date of the cancellation, revocation, or suspension. Contractor shall provide documentation deemed adequate by the Department to show the services actually completed by Contractor prior to the effective date of termination. Contractor’s sole remedy for City’s cancellation, revocation, or suspension of work pursuant to this Section 2.3 shall be the payment of funds as expressly provided in this Section 2.3.

2.4 In the event this Agreement is terminated, in whole or in part, as provided by this Section 2, City may procure, upon such terms and in such manner as it deems appropriate, services similar to those terminated.

2.5 The rights and remedies of the parties provided in this Section 2 are in addition to any other rights and remedies provided by law or under this Agreement, including, but not limited to, those rights and remedies set forth in Palm Springs Municipal Code Section 11.82.150, as it may be amended.

3. Location

3.1 All storage facilities that are utilized to store police-stored or impounded vehicles by Contractor shall be located in or within ten (10) miles of the corporate city limits of the city of Palm Springs. For purposes of measuring the ten (10) miles, distance shall be measured in driving distance.

3.2 All vehicles stored or impounded at the direction of the Department shall be

towed, without delay, directly to Contractor’s impound and storage facilities, unless the Department or other person legally in charge of the vehicle requests that it be taken to some other location.

3.3 Any change in Contractor’s operating/facility locations shall be reported, in writing, to the Department at least thirty (30) days prior to making such change

4. Personnel

4.1 Contractor shall ensure that its employees and tow truck operators are qualified and competent employees of the company and are sufficiently trained and capable to ensure the safe and proper discharge of their service responsibilities. All tow truck operators shall be trained and proficient in the use of the tow truck and related equipment, including, but not limited to, the procedures necessary for the safe towing and recovery of the various types of vehicles serviced through the Department rotation program. Contractor shall ensure that each tow truck operator and employee providing dispatch services for Contractor participate in one (1) customer service training offered by, but not limited to, a local community college or tow industry association, at least once every two years. Completion of a TSAAC/CHP approved certification course would be considered as acceptable option.

4.2 All tow truck operators shall be required to have all necessary certificates required by the State of California to operate a tow truck, including a valid California Tow Truck Driver Certification and California Driver’s Licenses in the proper class pursuant to Vehicle Code Sections 12520 and 12804.9(b). Within ten (10) days of the Effective Date of this Agreement, and annually thereafter (within ten (10) days of the anniversary of the Effective Date of this Agreement), Contractor shall provide a list of its tow truck operators and a CHP Form 234F (Tow Operator/Driver Information) for each tow truck operator and such other executed releases and authorizations as the City may require to allow the Department to conduct a background check, including, but not limited to a State of California Department of Motor Vehicles (“DMV”) printout, and fingerprints for each tow truck operator to be utilized in Department tow program. Any subsequent employment of a new tow truck operator shall be reported in writing to the Department immediately, including submittal of the above-referenced materials.

4.3 All tow truck operators shall be required to have a safe driving record, be 18 years of age or older, and be subject to driving record and criminal background checks by the Department.

4.4 Contractor shall have an alcohol and drug program that includes, at a minimum, an alcohol and drug free workplace policy, and a tow truck operator alcohol/drug- testing program that complies with the U.S. Department of Transportation requirements to the extent allowed by law, including random alcohol and drug testing. Any tow truck operator found working under the influence of alcohol or drugs shall be immediately removed from operating a tow truck and from providing any further services pursuant to this Agreement. The alcohol and drug program shall meet the following requirements

a. A contract with a program administrator and authorized lab certified by the U.S. Department of Transportation; and
b. Procedures and components substantially as in Part 40 of Title 49 of the Code of Federal Regulations for pre-employment; and
c. Procedures and components substantially as in Part 382 of Title 49 of the Code of Federal Regulations for rehabilitation, return-to-duty and follow up testing; and
d. Procedures and components for random testing following U.S. Department of Transportation guidelines, and additional tests as required following accidents, rehabilitation, return-to-service, and other circumstances providing reasonable suspicion to test; and
e. Monthly reports of the random testing component shall be filed with the Department by the program administrator no later than the 10th day following the end of the previous monthly reporting period; and
f. Contractor and program administrator’s alcohol and drug program records shall be made available to the Department upon request; and g. Drivers must show a valid California driver’s license at the time and place of testing; and
h. All test results are kept confidential except that the Department is authorized to receive copies for its administrative purposes, and except as otherwise authorized or required by law.

4.5 Contractor shall participate in the California Department of Motor Vehicles (DMV) Employer Pull Notice Program, or any similar program as may be approved by the Department

4.6 Contractor shall not employ in the performance of services pursuant to this Agreement any tow truck operator convicted of or having pled nolo contendere to a crime involving a stolen vehicle, stolen property, violence, drugs or moral turpitude, fraud related to the towing business, a violation of any of the provisions of Vehicle Code Section 22658, or misdemeanor or felony driving while under the influence of alcohol or drugs, or the crimes listed in Vehicle Code Section 13377.

If any tow truck operator is charged with any of the above-listed crimes, Contractor shall immediately suspend that operator from duties under this Agreement pending the outcome of the criminal case.

4.7 Tow truck operators shall maintain acceptable standards of dress, including uniforms, and cleanliness while on duty in the community.

4.8 Tow truck operators shall fully cooperate with and abide by the instructions of the Department’s officers.

4.9 If any tow truck operator becomes ineligible to provide operator services under t his Agreement, Contractor shall immediately notify the Department in writing of such ineligibility and the reason(s) therefore.

4.10 If requested by the Department, all tow truck operators shall obtain from the Department a clip-on identification tag, which such operator shall wear at all times when performing services pursuant to this Agreement in order to allow ease of tow truck operator identification.

4.11 While involved in the Department rotation tow operations or related business, Contractor and its employees shall refrain from any act(s) of misconduct, including but not limited to, any of the following enumerated acts. At the sole discretion of the Police Chief or his/her designee, non-compliance with this section may constitute grounds for disciplinary action.

4.12 Rude or discourteous behavior.

4.13 Lack of service, selective service, or refusal to provide service which Contractor should be capable of performing.

4.14 Any act of sexual harassment or sexual impropriety.

4.15 Unsafe driving practices.

4.16 Exhibiting any objective symptoms of alcohol and/or drug use.

4.17 Appearing at the scene of a Department rotation tow call with the odor of an alcoholic beverage or cannabis emitting from his/her breath. The truck operators shall submit to a preliminary alcohol and/or cannabis screening test upon demand of the Department.

5. Tow Service Duties
After being dispatched to the scene by the Department, Contractor shall comply with the following:

5.1 Not move nor attach a tow truck to any vehicle until instructed to do so by the investigating officer of the Department;

5.2 Cooperate with the investigating officer of the Department in removing hazards and/or illegally parked vehicles, and in the storing or impounding of such vehicles as requested. It is the duty of the police officers to determine when a vehicle should be impounded or moved, and the tow truck attendant shall abide by their decisions;

5.3 On collision calls, clean-up and remove all debris from the accident scene, including, but not limited to, clean-up and removal of all hazardous materials/vehicle fluids in the street with absorbent material, as directed by Department officers and Section 27700 of the California Vehicle Code.

5.4 Provide the owner or driver of towed vehicles (when present at scene) with an Contractor business card indicating where vehicle will be stored or impounded (including address and telephone number); and

5.5 Deliver upon request all personal property located within stored or impounded vehicles upon: (a) presentation of proper identification; and (b) in the case of impounded vehicles, written authorization by the Department.

6. Response to call and response time

6.1 Contractor shall be placed on a “rotation list” in an initial order to be determined by the Police Chief. The rotation list shall be used whenever a driver or owner of a disabled vehicle is unable to specify a particular garage or tow service, or whenever a Department employee stores or impounds a vehicle and the driver or owner is not present or is not consulted.

6.2 Contractor shall be called in response to a Department request upon the occurrence of its turn in rotation. Whenever Contractor cannot, for any reason, respond with any equipment needed to accomplish the requested service within

the response time specified herein, it shall be passed over and the next official police tow service provider on the list will be called. Contractor shall become eligible to provide service again only in its next turn in rotation. Whenever a Department employee determines that an emergency exists because Contractor is unable, for any reason, to provide adequate tow service, the Department employee shall have the right to have such services performed by any other means available. In the event a Department employee cancels a rotation tow due to no fault on the part of the Contractor, Contractor shall be placed on the top of the rotation list for the next requested tow.

6.3 When Contractor will be temporarily unavailable to provide services due to a preplanned/scheduled activity (i.e., vacations, maintenance, medical leave, etc.), Contractor shall notify the Department at least twenty-four (24) hours prior to the date that services will be unavailable, noting times and dates of the unavailability.

6.4 When responding to a Department call, Contractor shall perform the towing or service required for which it was called. This requirement may be waived by the Department officer in charge, if the requested equipment is inadequate for the service to be performed; provided, however, if Contractor supplies the wrong equipment, it shall be placed upon the bottom of the Department rotation list.

6.5 Contractor shall not respond to a Department call assigned to another official police tow service provider unless requested to do so by the Department. If the Contractor responding to a Department call requires the assistance of an additional tow truck at the scene, Contractor may, subject to the prior approval of the Department officer in charge, request the official police tow service provider next on the Department rotation list to assist it.

6.6 Contractor’s dispatcher shall notify the Department when a tow vehicle cannot respond immediately, give the reason for the delay, and an estimated time of arrival. In the event of an additional delay, Contractor’s dispatcher shall again notify the Department and give the new estimated time of arrival. To ensure a timely response, the Department, in its sole discretion, may cancel any call-for- service because of a response delay and may request service from the next official police tow service in the rotation.

6.7 If the Contractor’s telephone or radio is not promptly answered, or if the line is busy when called by the Department after two (2) attempts, Contractor will be bypassed, and the Department shall select the next official police tow service provider in the rotation.

6.8 If, while rendering assistance in response to a Department call for towing, a second Department call for towing is generated to Contractor’s operator, Contractor shall, before responding to the second call, ensure that all vehicles at the first site are sufficiently clear of the roadway so that no obstruction to normal traffic exists. Once the second call is handled to conclusion, the vehicles at the first site may be towed as necessary.

6.9 Contractor agrees that, for any thirty day period, the average response time pursuant to requests for tow service by the Department within the City of Palm Springs shall not exceed fifteen minutes. Contractor also agrees that the maximum response time for any single request for tow service by the Department shall not exceed twenty minutes.

7. Equipment Standards

7.1 Contractor shall equip and maintain tow trucks covered under the Agreement in accordance with the provisions set forth in the California Vehicle Code, Title 13 of the California Code of Regulations, the specifications contained in this Agreement, and in a manner consistent with industry standards and practices.

7.2 All recovery vehicles (wreckers) shall have an extendable/retractable recovery boom meeting the specifications contained in this Agreement, and the most recent electronic version of the CHP 234B, Tow Truck Inspection Guide.

7.3 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.

7.4 An auto-loader without an extendable/retractable boom is an additional unit and shall not be used for recovery.

7.5 For purposes of the Agreement, recovery is defined as a vehicle, which is overturned, down an embankment, or otherwise not upright on its wheels.

7.6 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 unloaded front axle weight on the front axle when towing.

7.7 There are two (2) classes of tow trucks covered under this Agreement a. Class A- Light Duty: Contractor shall maintain a minimum of one tow truck, which has a manufacturer’s GVWR of at least 14,000 pounds. Class A 4- wheel drive tow trucks with a GVWR of less than 14,000 pounds may be listed as special equipment on the 234A. These tow trucks shall be used only for recoveries requiring the use of 4-wheel drive.
b. Class B - Medium Duty: Contractor shall maintain a minimum of 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.

7.8 For purposes of the Agreement, a “low-boy trailer” is considered special equipment.

8. General Equipment Specifications

8.1 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.

8.2 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.

8.3 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).

8.4 The structural design of the recovery equipment must have a higher load capacity than the performance ratings.

8.5 Winches shall conform to, or exceed, the specifications set forth by the Recovery Equipment Rating, Society of Automotive Engineers (SAE) Handbook, and SAE J706.

8.6 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.

8.7 Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions.

9. Communications and Operational Requirements

9.1 Contractor shall maintain a twenty-four (24) hour per day telephone answering service to receive calls from the public and the Department.

9.2 Contractor shall require its telephone answering service to retain data and records relating to the City’s requests for towing services on premises for the term of this Agreement.

9.3 Contractor shall require its answering service to promptly accept and relay requests for towing services made by the City. Failure or refusal to promptly relay the City’s requests for towing services shall constitute failure to comply the requirements, terms and conditions of this Agreement and may result in suspension or termination of the Agreement.

9.4 Contractor shall install and maintain, to the satisfaction of City, at all times during the term of this Agreement, radio or cellular telephone transmission and reception contact between the Contractor communication contact shall be maintained twenty-four (24) hours a day, seven (7) days a week.

9.5 Contractor shall provide to the Department a list of telephone numbers to be called in order of priority, and immediately upon any change in such telephone numbers or in the priority thereof shall notify the Department in writing with the effective date of such change.

9.6 Contractor’s business office shall be located within its storage yard and attended at all times for servicing the public and the City from 8:00 a.m. to 5:00 p.m., Monday through Friday, except for the holidays of January 1, known as New Year’s Day; third Monday in January, known as Dr. Martin Luther King Jr.’s Birthday; third Monday in February, known as Washington’s Birthday/President’s Day; last Monday in May, known as Memorial Day; July 4, known as Independence Day; first Monday in September, known as Labor Day; the second Monday in October, known as Columbus Day; November 11, known as Veteran’s Day; fourth Thursday in November, known as Thanksgiving Day; and December 25, known as Christmas Day. If January 1, July 4, November 11 or December 25 fall upon a Sunday, the Monday following is a holiday and if they fall upon Saturday, the preceding Friday is a holiday. Contractor may make an additional charge for after normal business hours release of vehicles consistent with the guidelines or provisions of the City Council resolution establishing fees and charges for tow services.

9.7 Contractor shall provide twenty-four (24) hour towing service, seven (7) days a week, during the term of this Agreement.

9.8 Contractor shall ensure that there will be an employee on call capable of being present or available for releasing impounded or stored vehicles to the public twenty-four (24) hours a day, seven (7) days a week.

10. Vehicle Identification

10.1 Contractor’s vehicles shall display identification signs, in compliance with Section 27907 of the California Vehicle Code. Contractor shall not display any signs or advertising that indicate the Contractor is an official towing service or police garage of the City.

10.2 Contractor shall not, through their advertisements or otherwise, in any way publicize any official or other business connection with City, nor shall Contractor advertise any address or telephone number of the City as a location to call for vehicle towing and storage service.

11. Storage service responsibilities

11.1 Contractor shall be responsible for all vehicles, accessories, and equipment thereon, and all personal property therein, stored by it. It shall be Contractor’s duty to protect such stored vehicles, accessories, equipment, and property against all loss, damage by fire, theft, or other causes. In the event of loss or damage to a stored vehicle, its accessories or equipment, or personal property contained in the vehicle, Contractor shall be responsible to the owner for all losses or damages.

11.2 Contractor shall be responsible for the acts and omissions of its employees while on duty. Contractor shall be responsible for any property damage caused by the active or passive negligence of Contractor or its employees.

11.3 Contractor shall abide by all federal, state, and local laws pertaining to the disposal of unclaimed vehicles and shall not use any vehicle stored or impounded as a result of tow ordered by the Department for any purpose except as expressly authorized under this Agreement .

11.4 All vehicles stored or impounded by Contractor as a result of a tow ordered by the Department shall be towed directly to an official storage lot, unless the Department or other person legally in charge of the vehicle requests that it be taken to some other location. Vehicle release fees shall be limited to those established by resolution of the City Council of the City of Palm Springs.

11.5 Contractor shall release vehicles stored or impounded by the Department pursuant to authorization provided by appropriate employees of the Department. Such authorization shall be in writing on a form provided by the Department or may be given verbally by employees authorized by the Department to provide verbal releases.

11.6 All vehicles stored or impounded as a result of a tow ordered by the Department shall be made available during business hours to the owner of the vehicle or his representative, or any authorized insurance agent, insurance adjuster, or any body shop or car dealer, for the purpose of estimating or appraising damages, except vehicles with a “police hold”.

11.7 Personal property in vehicles stored by Contractor shall not be disposed of to defray any charges for the towing or storage of a vehicle; and, if not called for by the owner within thirty (30) days after date of notice by the Department of impound or storage, all such property shall be disposed of in accordance with all State, County and Municipal laws, statutes, ordinances and regulations, including without

limitation, Vehicle Code Section 10652 (reporting storage of vehicles over thirty days).

11.8 Contractor shall take whatever actions and precautions necessary to protect the engines, trunks and interior areas of all stored or impounded vehicles against the elements by rolling up windows, closing doors, trunk lids and hoods, and, if necessary, covering the vehicle or parts thereof exposed to the weather with plastic, canvas or other waterproof covering.

11.9 Contractor shall park all stored or impounded vehicles in such a manner as to prevent any damage while other vehicles are being moved or parked in the vicinity of said vehicles.

11.10 Contractor is authorized and encouraged to take photographs of vehicles towed under this Agreement for the sole purpose of documenting the condition of the vehicle, including any damage or lack thereof, at the time of the tow. Such photographs shall be treated as confidential and may only be disclosed to the vehicle owner or other interested parties, as determined by the Department in its sole and absolute discretion. Under no circumstances shall Contractor post, publish, or otherwise disseminate such photographs—whether in print, online, through social media, or by any other means—without the prior written consent of the Department.

12. Storage Facility Standards

12.1 Contractor shall provide a secure and environmentally safe vehicle storage facility with a minimum of fifteen thousand (15,000) usable square feet.

12.2 The vehicles storage facility must be located in or within ten (10) miles of the corporate city limits of the city of Palm Springs. For purposes of measuring the ten (10) miles, distance shall be measured in driving distance.

12.3 The vehicle storage facility must be completely enclosed by a six foot high wall or fence with no holes, gaps or other unsecured openings, and a gate. The wall or fence shall have two or more strands of barbed wire installed in such a manner as to discourage access over the top of the wall or fence, or the wall shall be a minimum of eight feet in height without barbed wire. All gates into the storage yard shall meet the same standards required of the wall or fence. Any damage to walls, fences or gates which allows unauthorized access must be repaired within twenty- four hours.

12.4 The vehicle storage facility shall have adequate lighting, and comply with all applicable building codes, zoning regulations, environmental laws and regulations, and any and all the applicable laws, rules and regulations established by federal, state, county and/or city governments.

12.5 Contractor shall not perform any work in the vehicle storage facility upon any vehicle stored or impounded by the Department without first obtaining authorization from the Department and the registered owner of the vehicle.

12.6 Contractor shall not dispose of any impounded vehicle, through any process whatsoever, without first obtaining authorization from the Department. Nothing herein shall be deemed to prevent or prohibit Contractor from commencing the lien sale process on any such impounded vehicle.

12.7 The Contractor must install and maintain a continuously recording video surveillance system, as approved by the Chief of Police or their designee. This system shall, at the minimum, monitor the entirety of indoor and outdoor vehicle storage lots, any points of ingress or egress to the establishment, and all locations within the establishment open to the public. Signage notifying the public of the presence of video surveillance at these locations shall be installed at all points of ingress. Images captured by the surveillance system shall be retained for a period of no less than thirty (30) days and must be made accessible to the Chief of Police or their designee upon request. Copies of footage shall be made available to the Chief of Police or his designee no later than two (2) business days after a request for the footage is made.

12.8 Throughout the term of this Agreement, Contractor shall maintain all offices, storage facilities and equipment in a neat, clean and organized manner.

12.9 All Contractor’s records, equipment, and storage facilities will be subject to periodic checks by the Department or other City investigators during normal business hours. Contractor shall provide access to employees of City at any time during normal business hours, for the purpose of inspection or audit to determine that the objectives and conditions of this Agreement are being fulfilled.

13. Reports and Records

13.1 Accounting Records: Contractor shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and expenditures pertaining in any way to this Agreement. Contractor shall keep such books and records as shall be necessary to properly perform the Services required by this Agreement and to enable the City to evaluate the performance of such Services. The City shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

13.2 Reports: Contractor shall periodically prepare and submit to the City such reports concerning the performance of the Services required by this Agreement, or as the City shall require.

13.3 Ownership of Documents: All reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Contractor, its employees, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be promptly delivered to City upon request of the City or upon the termination of this Agreement. Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials. Any use of such completed documents for other projects and/or use of incomplete documents without specific written authorization by the Contractor will be at the City's sole risk and without liability to Contractor, and the City shall indemnify the Contractor for all resulting damages. Contractor may retain copies of such documents for their own use. Contractor shall have an unrestricted right to use the concepts embodied in this Agreement. Contractor shall ensure that all its subcontractors shall provide for assignment to City of any documents or materials prepared by them. In the

event Contractor fails to secure such assignment, Contractor shall indemnify City for all resulting damages.

13.4 Release of Documents. All reports, records, documents, and other materials prepared by Contractor in the performance of services under this Agreement shall not be released publicly without the prior written approval of the City. All information gained by Contractor in the performance of this Agreement shall be considered confidential and shall not be released by Contractor without City’s prior written authorization.

13.5 Audit and Inspection of Records. After receipt of reasonable notice and during the regular business hours of City, Contractor shall provide City, or other agents of City, such access to Contractor’s books, records, payroll documents, and facilities as City deems necessary to examine, copy, audit, and inspect all accounting books, records, work data, documents, and activities directly related to Contractor’s performance under this Agreement. Contractor shall maintain such books, records, data, and documents in accordance with generally accepted accounting principles and shall clearly identify and make such items readily accessible to such parties during the term of this Agreement and for a period of three (3) years from the date of final payment by City hereunder.

13.6 Contractor shall comply with the following specific requirements relating to reports and records of its tow services:
a. Contractor shall record and log the time each call is received, the time of dispatch, the time of arrival, and the time in or of the end of service on every tow truck assignment Such records shall be submitted electronically with the monthly VTACR Fee payment, and available and open to City examination. b. Contractor shall maintain at its place of business, complete and accurate records of all tow services furnished under this Agreement, including a description of all vehicles towed, impounded, or stored at the request of the Department, the nature of services performed with respect to each tow for each towing assignment, and the itemized charges accrued on each vehicle for towing and storage.

13.7 Record systems must provide for immediate access, upon inquiry by the Department, to the following information.
a. Locate vehicle from the Department record number;
b. Locate vehicle from license number only
c. Locate vehicle from make, color, date, and location of impound. d. Date of filing all lien sale documents with DMV.

13.8 Contractor shall submit a monthly report to the Chief of Police and Finance Director, which shall include the following information

a. Total Department impounds and storages;
b. Number of times dispatched by the Department;
c. Number of calls for service resulting in impounds; d. Number of vehicles sold on lien sale under authority of Civil Code Section 3072, and as that law may be amended from time to time; e. Number of vehicles sold on lien sale under authority of Civil Code Section 3073, and as that law may be amended from time to time;

f. Certification of (a) the availability of the names and addresses of buyers sand description of vehicles when sold and (b) that such names, addresses, and descriptions are available for inspection by the Chief of Police and the Finance Director; and
g. Number of calls for service answered in which time beyond one hour was required to be handled.

14. Liens and Disposals

14.1 Contractor shall provide the Department with a list of unclaimed vehicles thirty (30) days before they are scheduled to be disposed of or sold. On or before the 10th day of each month, Contractor shall furnish to the Department a list of all vehicles that have been sold at lien sales during the previous month, and date of the action. The list shall include the vehicle owner’s name, address, vehicle make, year and model, license number, VIN number, and Department record number. Copies of all lien sale documents shall be resubmitted with such list. The documents shall be dated and include all charges imposed on each sale.

14.2 Contractor shall abide by all federal, state, and local laws pertaining to the disposal of unclaimed vehicles and shall not use any vehicle stored or impounded as a result of tow ordered by the Department for any purpose except as expressly authorized under this Agreement.

15. Performance

15.1 Contractor shall perform the services required under this Agreement in an ethical, professional, and orderly manner and shall endeavor to obtain and keep the confidence of the motoring public.

15.2 Contractor’s performance of all terms and conditions set forth herein shall be monitored and verified by the Supervisor or Sergeant of the Department’s Traffic Division.

15.3 Contractor acknowledges and agrees that the minimum performance standards required under this Agreement shall include the performance standards described in the SOQ, but not be limited to, the following;

a. Timely payment to City of VTACR Fee

b. Contractor shall provide payment to the City by the 10th day of each month, for the preceding month tows for all vehicle impound subject to the Vehicle Towing Administrative Cost Recovery fee.
c. Contractor shall include with each VTACR payment both a paper and electronic report of all the preceding months tows in which they collected the VTACR fee, in a format approved by the Department.
d. VTACR payment and report shall be provided to the following departments: Police

i. Timely submission of all required monthly reports.

ii. No more than three (3) “passes” on tow assignments within single calendar month.
iii. The ability to maintain an average response time of fifteen (15) minutes or less.
iv. Successful re-inspection of equipment and facilities. v. Maintenance of an error rate of less than ten (10) percent on tow invoices, as determined by a random audit of thirty (30) tow invoices. vi. A complaint ratio involving incidents of misconduct as provided in Section 7.11 of this Agreement of not more than one (1) percent of all tow requests.

16. Inspection

16.1 Contractor acknowledges a requirement to pass one (1) annual inspection of all tow trucks utilized on Department rotation calls, in order to qualify for participation in the term of the Agreement.

16.2 Department may conduct additional inspections without notice during normal business hours.

16.3 Contractor’s operator shall not dispatch any tow truck which has not been inspected and approved by the Department.

16.4 The Department shall inspect a tow truck within thirty (30) days of a request from an operator prior to use in the Rotation Tow Program.

16.5 The intent of the inspections is to ensure Contractor is involved in an ongoing safety maintenance program for their tow trucks. The annual inspection is not intended to find out what needs to be repaired/replaced on Contractor’s tow trucks. A tow truck responding to a Department call shall be properly equipped and operating in a safe condition.

16.6 Contractor shall be provided with written notification of the failure/denial of any tow truck or equipment and allowed a hearing upon request to the Department.

16.7 All of the equipment listed on an operator’s CHP 234A shall be accounted for during the annual inspection.

16.8 Contractor shall provide a current copy of their California Air Resource Board Certificate of Reported Compliance Truck and Bus Regulation commencing July 1, 2020.

17. Special Equipment

17.1 To properly and safely tow, service, or recover the wide variety of vehicles being operated on the highway, a towing procedure may require the use of special equipment specifically designed for the purpose. This special equipment shall be listed on the Contractor’s CHP 234A and should be used when appropriate.

17.2 All special equipment listed on the CHP 234A shall be accounted for during the annual inspection, as well as when additional equipment is added.

17.3 Any special equipment, which requires certification/inspection of the equipment and/or operator (e.g., cranes, forklifts), the applicable and current certification/inspection document shall be provided to the California Highway Patrol Area office at the time of enrollment or as equipment is added by an operator.

18. Risk

18.1 Contractor assumes all risk in the event of damage, theft, fire, or otherwise, of the vehicles or any other property towed, impounded, or stored by Contractor, its employees or agents.

18.2 Notwithstanding any other term or condition herein, in responding to a call from the Department, Contractor shall have no claim whatsoever against City or any right to recover from City for the cost of any of the services it renders in the performance of this Agreement. Contractor shall look solely and exclusively to the owner of the vehicle, towed, impounded, or stored, for payment of the services provided by the Contractor.

18.3 Contractor shall assume the entire risk of nonpayment of any service charges incurred pursuant to this Agreement.

19. Insolvency

Contractor shall not, without the prior written consent of the Chief of Police, suffer either the appointment of a receiver to take possession of all or substantially all of the assets of Contractor or make a general assignment of such assets for the benefit of creditors.

Any such action taken or suffered by Contractor under any insolvency or bankruptcy proceeding constitutes a breach of contract by Contractor and all property assigned by City for safe care shall be “released” to another assigned service provider, as specified by the Chief of Police or his or her designee, with a reimbursement for towing, storage, and related fees borne by the service provider assuming the new responsibility.

EXHIBIT “B”

SCHEDULE OF COMPENSATION

EXHIBIT “B”

SCHEDULE OF COMPENSATION

1. Rates and VTACR Fee

1.1 In accordance with Sections 11.82.090 and 11.82.100 of the Palm Springs Municipal Code, and as authorized by California Vehicle Code Section 22850.5, the Vehicle Towing Administrative Cost Recovery (VTACR) Fee is imposed to recover the City’s actual and reasonable administrative costs associated with the enforcement, removal, storage, and release of impounded vehicles. These costs include overhead, personnel, and contract management expenses necessary to operate the official police tow services program. Pursuant to Resolution No. 25189, the City Council has reviewed and adopted a VTACR fee in the amount of $235.00 per tow, calculated based on the City's total annual administrative cost of $345,016.16.

Each official police tow services provider shall collect the VTACR fee at the time of vehicle release and remit payment to the City of Palm Springs no later than the 10th day of each month. The remittance shall include an itemized report detailing all vehicles towed under the program. The City may waive the VTACR fee in cases of abandoned vehicles, where neither the City nor the Contractor collects any towing or storage fees, and the Contractor avails itself of the Abandoned Vehicle Abatement Program, as set forth in Palm Springs Municipal Code Section 11.80.

The Tow Fee Schedule is adopted as follows:

Fee Schedule

TOWING SERVICES CHARGES HOURLY
CLASS A TOW TRUCK $230*
CLASS B TOW TRUCK $285*

STORAGE FEES DAILY
MOTORCYCLES $80
PASSENGER CARS $90
TRUCKS | TRAILERS 20' OR LESS $90
TRUCKS | TRAILERS | VEHICLES 20' TO 30' $95
TRUCKS | TRAILERS | VEHICLES 30' ABOVE $100
VEHICLE TOWING ADMINISTRATIVE COST RECOVERY $235