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HomeMy WebLinkAboutCC RESO 2006-57RESOLUTION NO. 2006 — 57 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ACCEPTING TWO PROPOSALS FOR THE POLICE DEPARTMENT TOWING AND IMPOUND SERVICES AGREEMENT, OVERRULING ALL PROTESTS, AND AUTHORIZING THE MAYOR TO EXECUTE AGREEMENTS WITH MOYNAHAN TOWING AND JC TOWING, INC. FOR A THREE-YEAR TERM WHEREAS, the City's current Police Department Towing and Impound Services Agreements with Tom Moynahan and Road One Towing will expire March 31, 2006. Request for Proposal #GS0506-5 was issued to 15 vendors in order to establish new agreements; and WHEREAS, 8 proposals were received in response to the RFP by the February 3, 2006 due date; and WHEREAS, extensive administrative review and site evaluations were conducted for all companies that submitted proposals, and companies were ranked according to how well iney met or exceeded the RFP requirements; and WHEREAS, the Police Department and Purchasing Department recommended that agreements for a term of three years be entered into with Moynahan Towing and JC Towing, as the companies best qualified to provide the required level of service; and WHEREAS, the City Council finds and determines that the RFP process was r*ularly and properly performed, and the City Council overrules all protests to the RFP process Id to the recommended agreements. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute Agreements for Police Department owing and Impound Services with Tom Moynahan and with JC Towing, Inc., respectfully, for a term beginning April 1, 2006, and ending March 31, 2009. Said agreements are on file in the office of the City Clerk. PASSED and ADOPTED this 21st day of March, 2006. ick Inzunza, Mayor ATTEST: Michael R. = Ila, ' ity erk APPROVED AS TO FORM: George H. Eiser, III City Attorney AGREEMENT BY AND BETWEEN CITY OF NATIONAL CITY AND JC TOWING, INC. FOR TOWING AND IMPOUND SERVICES FOR THE PERIOD OF APRIL 1, 2006 TO MARCH 31, 2009 TABLE OF CONTENTS Title & Section Page Number "Towing Agreement" 7 Recitals 7 1.0 DEFINITION OF TERMS 1.1 Police Tow 8 1.2 Police Referral Tow 8 1.3 On Demand Tow . 8 1.4 Secondary Tow 8 1.5 Collision Tow 8 1.6 Response Time ... 8 1.7 Contract Year 9 1.8 Fee Schedule 9 1.9 Referral Fee 9 1.10 Negligent Vehicle Impound Release Fee 9 1.11 STOP Fee 9 1.12 30 Day Impound Fee 9 2.0 ADMINISTRATION and MANAGEMENT of AGREEMENT 2.1 Agreement Approval 10 2.2 Entire Agreement ... 10 2.3 Administration of Contract 10 2.4 Cooperation and Consultation 11 2.5 Compliance with Applicable Law 11 2.6 Licenses, Permits, Etc 11 2.7 Disputes 11 2.8 Mediation / Arbitration 12 fl 2.9 Legal Fees 12 2.10 Indemnification and Hold Harmless 12 2.11 Business Records (10650 CVC et seg.) 13 2.12 Prohibition Against Use of Privileged Information 13 2.13 Independent Contractor 13 2.14 Assignment 13 2.15 Workers' Compensation ... 14 2.16 Non -Discrimination Provision ... 14 2.17 Conflict of Interest and Political Reform Act Obligations 14 2.18 Termination of Agreement 15 2.19 Charges and Fees 15 2.20 Inspection ... 15 2.21 Notice of Termination 15 3.0 TERMS of AGREEMENT, OPTIONS, RENEW and RE -OPENERS 3.1 Duration 16 3.2 Relevant Dates ... 16 3.3 Option to Renew 16 3.4 Re -Opener Clause - Referral Fee 17 3.5 Re -Opener Clause - Fee Schedule 17 3.6 Re -Opener Clause - 30 Day Impound Fee (STOP) 17 4.0 RESPONSE TIME, EXCEPTIONS and PENALTY ASSESSMENT 4.1 Response Time ... 17 4.2 Response Time Computation 18 4.3 Response Time - Penalty 18 4.4 Response Time - Penalty Assessment 18 3 5.0 ON -CALL CONTRATOR and CONTRACTOR ROTATION SCHEDULE 5.1 Contractor On -Call & Rotation 19 6.0 GENERAL DUTIES, REQUIREMENTS and OBLIGATIONS 6.1 Business License 19 6.2 Contractor Availability - Response to Service Requests 19 6.3 Contractor Towing Forfeited Vehicles 20 6.4 Contractor Availability - Vehicle Release 20 6.5 Business Office 20 6.6 Business Office Hours 20 6.7 Contractor's Employees 21 6.8 Signs 21 6.9 Method of Payment - Towing or Storage Charges (22651.1 CVC) 21 6.10 Storage of Vehicles; City, Seized, Evidentiary 22 6.11 Removal from Private Property 22 6.12 Notice to City - Private Property Impounds 22 6.13 Gratuities (12110 CVC) 22 6.14 Tow Truck Driver - On Scene Duties 23 6.15 Access to Stored Vehicles 23 6.16 Access to Stored Vehicle - Removal of Private Property 23 6.17 Access to Evidentiary Vehicles 24 6.18 Invoices 24 6.19 Vehicle Impound Control Card (PD form 250) 24 6.20 Proceeds from Lien Sale 24 7.0 FEES 7.1 Fee Schedule 25 7.2 Secondary Tow Fees 26 7.3 City Vehicle Tow Fees 26 4 1 7.4 Fees - Police Department Errors and Omissions 26 7.5 Referral Fee 26 7.6 Referral Fee - Due Date 27 7.7 Referral Fee - Late Fee ... 27 7.8 Referral Fee - Payments 27 7.9 Negligent Vehicle Impound Release (NVIR) Fee 28 7.10 NVIR Fee 28 7.11 NVIR Fee - Payment Due Date 28 7.12 NVIR Fee - Payments 28 7.13 NVIR Payment - Late Fee 29 7.14 Serious Traffic Offender Program (STOP) Impound Fee 29 7.15 STOP Impound Fees - Due Date 29 7.16 STOP Fee - Payment 29 7.17 STOP Fee - Late Fee 30 7.18 STOP; 30-Day Vehicle Impound Fees 30 7.19 30-Day Impound Fees - Due Date and Payment 30 8.0 VEHICLE RELEASE 8.1 General Rule - Vehicle Release 30 8.2 Exceptions to General Rule 30 8.3 Hit & Run Investigations - Mandatory Release (22655(b) CVC) 31 8.4 Questions, Problems, or Controversy Associated with Vehicle Release 31 8.5 Expert Training - DMV Document Identification 31 9.0 MINIMUM TRUCK EQUIPMENT and STORAGE LOT REQUIREMENTS 9.1 Minimum Tow Truck Requirements 31 9.2 Minimum Tow Truck Equipment Requirements 32 9.3 Tow Truck Identification 33 9.4 Tow Truck Lighting Equipment 33 5 1.0 DEFINITION OF TERMS 1.1 Police Tow shall mean the towing of vehicles at the direction of The National City Police Department where the consent of the owner or operator of the vehicle is not required under existing law. This shall include but is not limited to the towing of motor vehicles that are illegally parked, abandoned, evidence in a criminal investigation, disabled due to collision or mechanical failure or otherwise subject to the authority of the National City Police Department. 1.2 Police Referral Tow shall mean the towing of a vehicle by the National City Police Department, at the request of the vehicle owner or operator. Examples include mechanically disabled vehicles, vehicles disabled as a result of collision, or any other circumstances where the public right-of-way is impacted. 1.3 On -Demand Tow means the towing of a vehicle by a specific Contractor that has been requested by the vehicle owner or operator without police involvement. On -Demand tows may include owners or agents of private property landholders who arrange for vehicle towing service from private property without police involvement. If the police department becomes involved in arranging for tow service the matter is considered a Referral Tow. On -Demand Tows are considered independent services outside the scope of this Agreement. 1.4 Secondary Tow is defined as the impound of a vehicle on orders of police under the authority of California Vehicle Code § 22655 or 22655.5 and the vehicle is brought to the National City Police Department for evidence processing. The secondary tow occurs when the police direct the original Contractor to retrieve and store the vehicle on Contractor's property. 1.5 Collision Tow The owner or operator of a vehicle involved in a non -criminal traffic collision may select a tow company of their own choosing. However, if in the opinion of the investigating police officer an unreasonable delay would result, or unnecessary delay would negatively impact access to the public right-of-way, the investigating officer may consider the matter a "Police Tow" and cause the removal of the vehicle. If the vehicle is towed on orders of the investigating officer, the officer shall complete the Vehicle Impound Control Card citing 22500 CVC as the authority for impound. No special hold or police authorized release is necessary. 1.6 Response Time is defined as the elapsed time between the relaying of the tow service request by a Police Department Employee to the Contractor and the arrival of the specific tow truck type requested to fulfill the tow need on scene. (For example: NCPD Dispatch phones in a request for a low profile truck to tow an evidence hold vehicle to the underground parking lot of NCPD. The response of a NON low profile tow truck which cannot accommodate towing the vehicle into the underground parking lot of the National City Police Department does not qualify as fulfilling the Response Time requirement.) NCPD does not have a group of employees that have a singular function of requesting tow service and would be called a "tow dispatch center." Under normal circumstances the tow company will be called by the NCPD "Dispatch Center." The NCPD "Dispatch Center" is the Police Department's multifunction emergency and non -emergency telephone/radio operators. Under most situations a call for field service will be relayed by the Police dispatchers via telephone to the tow contractors. However, there is a need to allow for direct requests to the tow contractor by any NCPD employee. This may be done by phone or in person to either the tow 8 company's dispatcher or to a tow truck driver that is already on the scene of an NCPD requested tow, wherein there is a need for additional services. (An example of this would include times where a collision occurred and originally an officer makes a request for one two truck. Upon arrival it is determined that another tow truck will be needed and the officer makes the request to the driver on the scene to obtain the services of another truck. The driver calls in the request and the officer advises NCPD dispatch that he/she has made the request and an appropriate CAD entry is made.) 1.7 Contract Year is defined as any one year, 365 day period during the term of this agreement. The first contract year begins on April 1, 2006 and ends on March 31, 2007. The second contract year begins on April 1, 2007 and ends on March 31, 2008. The third contract year begins on April 1, 2008 and ends on March 31, 2009. There are three (3) successive years in this contract. 1.8 Fee Schedule is defined as the fees charged by Contractor to the owner, operator, or agent of the subject vehicle for various services charged by Contractor. The fee schedule is approved and authorized by a majority vote of the City of National City, City Council. The fee schedule includes itemized charges for numerous towing and storage services including but not limited to hook up fees, dolly fees, daily storage fees, after -hour release fees, etc. The Fee Schedule is identified and located at Attachment A of this document. 1.9 Referral Fee is authorized by California Vehicle Code § 12110(b) and is defined as a quarterly fee charged to Contractor by City for the right to provide towing, impound and storage services for City. The Referral Fee is designed to offset actual and reasonable costs incurred by the police department to process and administer towing services. The Referral Fee may be adjusted throughout the term of this Agreement, consistent with Section 3.4, Re -Opener Clause — Referral Fee. 1.10 Negligent Vehicle Impound Release Fee is authorized by the City Council. The Negligent Vehicle Impound Release Fee is defined as a fee charged to the owner, operator or agent of a vehicle that violated certain, specified sections of the California Vehicle Code or National City Municipal Code. The NVIR fee is currently established at fifty-five ($55) dollars. The NVIR fee may be adjusted during the term of the agreement at the discretion of the City Council. This fee is collected by Contractor on behalf of City. 1.11 S.T.O.P Fee The Serious Traffic Offender Program targets the unlicensed driver and provides for a 30-day impound of vehicles. A fee, designed to off set the administrative costs of the program is authorized by the City Council under the authority of California Vehicle Code § 22850.5. The fee is currently set at one hundred fifty ($150) dollars. The STOP fee may be adjusted during the term of this agreement at the discretion of the City Council. This fee is charged to the vehicle owner, operator or agent and is collected by Contractor on behalf of City 1.12 30-Day Impound Fee is defined as a percentage fee paid to City by Contractor, when a Serious Traffic Offender Program vehicle is held for 30-day storage. This fee is not applicable when City releases a vehicle prior to the full 30-day period. Nothing in this section is intended to prevent or preclude the early release of a 30-day hold STOP vehicle if extraordinary circumstances warrant. The Impound Fee will remain at 15% of the amount collected for storage on released vehicles. This is unchanged from the previous contract. 9 2.0 ADMINISTRATION and MANAGEMENT of AGREEMENT 2.1 Agreement Approval Any Agreement to provide towing services is subject to a substantive city administration review process. Such review process shall include but is not limited to review by the Chief of Police, City Attorney, Human Resources Director, Risk Manager, Finance Director and City Manager. No Agreement for towing service shall become effective until the City Council, City of National City, has reviewed and approved the Agreement. 2.2 Entire Agreement This Agreement supersedes any prior agreements, documents, negotiations and communications, oral or written, and contains the entire Agreement between the parties as to towing and impound services. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. 2.3 Administration of Contract Each party designates the below individuals as the "Contract Administrator" for the party. The Contract Administrator is authorized by the party to represent the party in the administration of this agreement. The Contract Administrator shall monitor the progress and execution of this Agreement. The Contract Administrator may delegate duties and responsibilities to subordinates to insure functional management, supervision and operation of this Agreement. Contract Administrator For The City of National City Dr. Adolfo Gonzales Chief of Police National City Police Department 1200 National City Blvd National City, CA. 91950 (619) 336-4511 Management and Operations Neighborhood Policing Team I Lieutenant National City Police Department 1200 National City Blvd National City, CA 91950 (619) 336-4400 :l0 Inspection & Operational Supervision Traffic Division Sergeant National City Police Department 1200 National City Blvd National City, CA 91950 (619) 336-4420 Contract Administrator for JC Towing, Inc. Owner: G. John Clark, III 2501 Faivre Street, Chula Vista, CA 91911 Ph: (619)429-1492 2.4 Cooperation and Consultation The City and Contractor shall regularly consult during the term of this Agreement in order to achieve the objectives of this Agreement. Throughout the term of this Agreement, the City and Contractor shall permit mutual access to its offices, facilities, files and records relating to the operation and management of this agreement. Upon request of the City the Contractor shall provide copies of files, materials or records relating to the towing, impound, and disposition of any vehicle towed as a result of this agreement. Upon request, the City shall provide the Contractor with any annual report or management report relating to the towing and impound of vehicles towed as a result of this Agreement. Access to police files, records or materials does not include unrelated records, communications between City and the police department, any record which may infringe upon the privacy rights of any individual, or any file, record, or investigation determined by the police department to be privileged or confidential. 2.5 Compliance with Applicable Law The Contractor in the performance of the services to be provided herein, shall comply with all applicable State and Federal statutes and regulations, and all applicable ordinances, rules and regulations of the City of National City, whether now in force or subsequently enacted. 2.6 Licenses, Permits, Etc. Contractor represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The Contractor represents and covenants that the Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this agreement, any license, permit, insurance or approval which is legally required for the Contractor to practice its profession. 2.7 Disputes Except as otherwise provided in this agreement, any dispute concerning a question of fact arising under any term of this Agreement which is not disposed of by this Agreement shall be decided by the Chief of Police who will furnish the decision to the Contractor in writing. Contractor shall proceed diligently with performance of this Agreement pending receipt of the decision of the 11 • Chief of Police. The decision of the Chief of Police is final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, arbitrary, capricious or so grossly erroneous as to necessarily imply bad faith. The "Disputes" clause does not and is not intended to preclude consideration of legal questions in connection with decisions provided in the above paragraph. Nothing in this Agreement shall be construed as making final the decision of any administrative official, representative, or council on a question of law. 2.8 Mediation / Arbitration If a dispute arises out of or relates to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego County, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The cost of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego County, California, in accordance with the Commercial Arbitration Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction over the subject matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the cost of its own experts, evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 2.9 Legal Fees If any party brings a suit or action against the other party arising from any alleged breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of -court settlement, shall be entitled to have and recover from the other party all costs and expenses of suit, including attorneys' fees. For purposes of determining who is to be considered the prevailing party, it is stipulated that attorneys' fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorneys' fees to the prevailing party if other than the City shall, in addition, are limited to the amount of attorneys' fees incurred by the City in its prosecution or defense of the action, irrespective of the actual amount of attorneys' fees incurred by the prevailing party. 2.10 Indemnification and Hold Harmless The Contractor agrees to indemnify, defend, and hold harmless the City of National City, its officers, employees and volunteers, against and from any and all liability, loss, damage, suits, actions, proceedings, costs or attorneys' fees, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, in any way resulting from or arising out of the Contractor's performance of this Agreement. 12 2.11 Business Records (10650 CVC et seq.) Contractor shall maintain and retain data and records of all tow services furnished, including description of vehicles, nature of service, date, time of notification by City, time of tow truck dispatch, time of arrival of tow truck at scene, location of calls, total itemized charges of towing and storage, and the description of all vehicles towed and/or stored at the initiation of the City. If the vehicle is sold at lien sale, data shall be maintained documenting all liens against the vehicle, monies received as a result of the sale, identification of the purchaser, and the amount of monies forwarded to City and state. All such data and original towing and storage records shall be maintained in an accessible location. The Contractor shall make available and permit the City without notice during normal business hours to audit, examine and make excerpts, copies, or transcripts of all data and records with respect to the towing and storage of vehicles initiated by the City. If Contractor employs, assigns or contracts with a third -party vendor to manage or process the DMV required processing regarding lien sale vehicles, Contractor shall make available all relevant records, data or documents regarding lien sales. Contractor shall waive any privacy rights in order to permit City to inspect, review and copy any relevant record in possession of a third -party vendor. 2.12 Prohibition Against Use of Privileged Information Contractor shall not use for personal gain, transmit or disclose any privileged or confidential information that is acquired from or obtained as a result of information gathered from the management or operation of this agreement. For the purpose of this section, "Privileged or Confidential Information" shall include City or police department records unrelated to towing and storage of vehicles, DMV information, or Criminal History information. 2.13 Independent Contractor Contractor shall for all purposes arising out of this Agreement, be an independent Contractor. Contractor and employees of Contractor shall not be deemed employees or agents of City. It is expressly understood and agreed that the Contractor and its employees shall in no event, as a result of this Agreement, be entitled to any benefit to which City employees are entitled, including but not limited to overtime, retirement benefits, workers' compensation benefits, injury leave, medical leave, unemployment or any other leave benefits. Neither the City nor its officers, agents or employees shall have any control over the conduct of the Contractor or any of the Contractor's employees except as herein set forth, and the Contractor expressly agrees not to represent that the Contractor or the Contractor's agents, servants, or employees are in any manner agents, servants, and employees of the City, it being understood that the Contractor, its agents, servants, and employees are as to the City wholly independent contractors and that the Contractor's obligations to the City are solely such as are prescribed by this Agreement. 2.14 Assignment This Agreement contemplates the personal services of the Contractor and the Contractor's employees, and it is recognized by the parties that a substantial inducement to the City for entering into this Agreement was, and is, the professional reputation and competence of the Contractor and its employees. Neither this Agreement nor any interest herein may be assigned by 13 the Contractor without the prior written consent of the City. Nothing herein contained is intended to prevent the Contractor from employing or hiring as many employees, or subcontractors, as the Contractor may deem necessary for the proper and efficient performance of this Agreement. All agreements by Contractor with its subcontractors(s) shall require the subcontractor to adhere to the applicable terms of this Agreement. 2.15 Workers' Compensation The 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 or Federal acts or laws applicable; and shall indemnify, defend and hold harmless the City and its officers, employees and volunteers from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorneys' fees and costs presented, brought or recovered against the City or its officers, employees, or volunteers, 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 the Contractor under this Agreement. 2.16 Non -Discrimination Provision The Contractor will not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The Contractor will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the City setting forth the provisions of this non-discrimination clause. 2.17 Conflict of Interest and Political Reform Act Obligations During the term of this Agreement, the Contractor shall not perform services of any kind for any person or entity whose interest's conflict in any way with those of the City of National City. The Contractor also agrees not to specify any product, treatment, process or material for the project in which the Contractor has a material financial interest, either direct or indirect, without first notifying the City of that fact. The Contractor shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The Contractor shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the City in which the Contractor has a direct or indirect financial interest as defined in Government Code Section 87103. The Contractor represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the City. Contractor further warrants and represents that Contractor will immediately advise the City Attorney if Contractor learns of an economic interest of Contractor's that may result in a conflict of interest for the purposes of the Political Reform Act, and regulations promulgated thereunder. 14 The Contractor shall be strictly liable to the City for all damages, costs or expenses the City may suffer by virtue of any violation of this section by the Contractor. 2.18 Termination of Agreement This Agreement may be terminated immediately by the City for cause in the event of a material breach of this Agreement, misrepresentation by the Contractor in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the City. Termination for cause shall be effected by delivery of written Notice of Termination to the Contractor as provided for in Section 2.21. In the event of termination, all finished or unfinished memoranda, reports, plans, specifications and other documents prepared by the Contractor, whether paper or electronic, shall immediately become the property of and be delivered to the City, and the Contractor shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the City by the Contractor's breach, if any. The City further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the Contractor; (2) a reorganization of the Contractor for the benefit of creditors; or (3) a business reorganization or change in business status of the Contractor. 2.19 Charges and Fees Contractor is authorized and responsible for the collection of all applicable towing and storage charges, and any fee authorized or required by City to defray costs to City for the management and operation of this agreement, prior to releasing a vehicle. 2.20 Inspection City shall require no less than an annual inspection of Contractor to insure conformance and compliance with the provisions of the California Vehicle Code and this agreement. Responsibility for said inspection rests with the National City Police Department Traffic Division Sergeant and/or designee. Said inspections shall be conducted during normal business hours. Upon completion of inspection the Traffic Division Sergeant shall submit a written report to the Contract Administrators. 2.21 Notice of Termination All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered of certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days, (ten (10) days if the address is outside the State of 15 California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telex, telecopy, facsimile or fax, when sent. Any notices, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To the CITY: Contract Administrator For The City of National City Dr. Adolfo Gonzales Chief of Police National City Police Department 1200 National City Blvd National City, CA. 91950 (619)336-4511 To the CONTRACTOR: JC Towing, Inc. G. John Clark, III 2501 Faivre Street, Chula Vista, CA 91911 (619)429-1492 3.0 TERM OF AGREEMENT, OPTIONS, and RE -OPENERS 3.1 Duration The duration of this Agreement shall be three (3) successive years with an option for extension. 3.2 Relevant Dates This Agreement begins at 0000 hours on April 1, 2006 and terminates at 2400 hours on March 31, 2009. 3.3 Option to Renew The City of National City reserves the option to renew the contract for up to four (4) six (6) month periods under the terms and conditions herein stated beginning on the anniversary of the commencement of service. The renewal is contingent on a mutual agreement between the City and the Contractor with such agreement to be confirmed by the Contract Administrator within sixty (60) days prior to the expiration of the contract period. The City of National City or the Contractor may decline to confirm the renewal of the contract for any reason whatsoever, which shall render the renewal option null and void. The City's initial letter informing the Contractor of the City's exercise of its option to renew the contract does not constitute an award of the option period. Any option acceptance must be confirmed by the City of National City in writing, before it becomes valid. 16 The City will not grant an option, if the Contractor requests an increase which exceeds the average percentage variant for the previous twelve (12) months in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the National City area as published by the Bureau of Labor Statistics, or five percent (5%) whichever is less. If a price increase is requested, the Contractor must provide detailed supporting documentation to justify the requested increase. The City will evaluate the requested increase, and the City reserves the right to accept or reject. 3.4 Re -Opener Clause - Referral Fee The purpose of the Referral Fee Re -Opener Clause is to verify data to demonstrate the appropriateness of the Referral Fee. After the first twelve consecutive month period of this agreement, City shall review all tow data and develop accurate records to determine the actual number of Police and Referral Tows in the preceding twelve-month period. The Referral Fees may be adjusted up or down based upon the number of vehicles referred to the Contractor as determined by City. If appropriate, City shall consider implementing a per vehicle referral fee to offset costs incurred by the police department in processing and administering towing services. City shall also compare and consider referral fees charged by other law enforcement jurisdictions in San Diego County for towing services. 3.5 Re -Opener Clause - Fee Schedule The purpose of the Fee Schedule Re -Opener Clause is to provide the Contractor the ability to adjust the fee schedule consistent with the community standard for police towing in San Diego County. After the first twelve consecutive month period of this contract, the Contractor may submit a request for increase in fee schedule to the Chief of Police. The request shall include a comparison of relevant fees in each law enforcement jurisdiction in San Diego County. City shall assist and consult with Contractor to provide Contractor with accurate data. The Chief of Police shall make appropriate comments, recommendations and submit the material for City Council consideration. 3.6 Re -Opener Clause - 30-Dav Impound Fee (STOP) The purpose of the Re -Opener Clause, 30-Day Impound Fee is to verify data to demonstrate the appropriateness of the 30-Day Impound Fee. After the first twelve consecutive month period of this Agreement, City shall review all tow data and develop accurate records to determine the actual number of STOP vehicles held for a 30 day period versus the number of STOP vehicles not held for the 30 day period, in the preceding twelve month period. The percentage 30-day impound fee may be adjusted up or down based upon the data. 4.0 RESPONSE TIME, EXCEPTIONS and PENALTY ASSESSMENT 4.1 Response Time Response time is defined as the elapsed time between the relaying of the tow service request by a Police Department Employee to the Contractor and the arrival of the specific tow truck type requested to fulfill the tow need on scene. (For example: NCPD Dispatch phones in a request for a low profile truck to tow an evidence hold vehicle to the underground parking lot of NCPD. The response of a NON low profile tow truck which cannot accommodate towing the vehicle 17 into the underground parking lot of NCPD does not qualify as fulfilling the Response Time requirement.) The Response Time for Towing Service shall not exceed twenty (20) minutes for tows inside the jurisdictional limits of City. Due to the limited number of out of jurisdiction towing service requests, response times shall be evaluated on an individual basis for towing service requests outside of the jurisdictional limits of City. Complaints or irregularities involving out of jurisdiction towing requests shall be managed between the Contract Administrators. Response Time is defined as the elapsed time between the relaying of the tow service request to the Contractor and the arrival of the tow truck on scene. The Contractor is expected to dispatch any available tow truck immediately upon receipt of a towing request. The Contractor is expected to notify the National City Police Communications Center when the response time requirement cannot be met. The Police Communications Dispatcher or the officer at the scene will have the discretion to cancel the tow if the response time cannot or is not met and re -dispatch to a Secondary tow Contractor, at no cost to City. "Secondary tow Contractor" refers to the next tow company in rotation. 4.2 Response Time Computation Response time is computed from the time the police dispatcher enters the request for a tow into the dispatch CAD system and the Contractor arrives on scene. The on -scene investigating officer shall notify dispatch of the tow truck arrival. The police department computer aided dispatch system shall be the final resolution of any actual time dispute regarding response times. Any failure to record relevant times by the on -duty dispatcher shall not be considered in any penalty assessment. 4.3 Response Time - Penalty Failure to arrive at the requested location within the prescribed response time may result in cancellation of the service request. The alternate Contractor may be notified. 4.4 Response Time - Penalty Assessment Contractor shall pay a five hundred dollar ($500.00) penalty, if more than five percent (5%) of the tows in any calendar month period exceed the maximum response time requirement per any single request by the City for emergency towing services. Failure to meet Response Time requirements may result in termination of this contract. 18 .5.0 ON -CALL CONTRACTOR and CONTRACTOR ROTATION SCHEDULE 5.1 Contractor On -Call & Rotation The contractor on -call rotation shall run weekly, beginning at 0000 hours on Sunday, through the following Saturday. The Traffic Division Sergeant will do the selection for the on call rotation at the beginning of each contract year. The Traffic Division Sergeant will select the contractor rotation by an impartial means agreeable to contractors involved. Should all contractors not meet an agreement as to means the Traffic Division Sergeant will make the selection, the means will be directed by the Chief of Police and the Chief's decision will be final. Any contractor selected as the first in the rotation schedule at the beginning of a contract year will begin the first day of the contract year (whatever day of the week the contract year begins) and end that rotation on the following Sunday as to establish the Sunday through Saturday rotation cycle. It is understood that the number of contractors selected divided into the number of weeks per year may not result in each contractor having the same number of overall tow days per year. In the event this Agreement is extended pursuant to section 3.3 Option for Renewal, the schedule will continue to rotate as reflected. 6.0 GENERAL DUTIES, REQUIREMENTS and OBLIGATIONS 6.1 Business License Contractor shall at all times during the term of this Agreement retain a valid City Business License in compliance with National City Municipal Code § 6.04 Et seq. Contractor businesses and storage lots located within the jurisdictional limits of the City of National City must conform to all City of National City building ordinances, zoning regulations, land use requirements and must have the approval of the City Planning Department. Contractor businesses and storage lots located outside the jurisdictional limits of the City of National City must conform to all City (if located within an incorporated City) or County (if located within an unincorporated County area) building ordinances, zoning regulations, land use requirements within the jurisdiction of location. 6.2 Contractor Availability - Response to Service Requests Contractor shall be available to promptly respond twenty-four (24) hours a day, seven (7) days a week including all holidays, consistent with the On -Call and Rotation Schedule, for all requests initiated by City for towing services. Upon award of contract Tow Contractors shall operate a dispatching system. The Tow dispatching system shall be sufficiently staffed and equipped to accept all telephone calls, without delay, twenty-four (24) hours a day, seven (7) days a week. Delay is defined as the :19 City or the public receiving no answer after six (6) rings or busy signal to their telephone call. Tow Contractors using paging systems are required to respond to a page within five (5) minutes of the initial page by the City. The City does not currently have plans for adding automated tow dispatching to the existing NCPD dispatch system. Therefore the City is not requiring any contractor to purchase equipment to be used to integrate into an automated tow dispatching system. It will be up to the contractor to ensure they are able to meet the response time requirements of the contract by whatever means they deem appropriate. Since there are no current plans to add automated tow dispatching to the existing NCPD dispatch system there are no minimum requirements established for such a system upgrade at this time. 6.3 Contractor Towing Forfeited Vehicles The Contractor shall tow all forfeited vehicles, as ordered by the City. The Contractor shall not drive the forfeited vehicles except to move them within the storage facility. Use of vehicles for personal use is strictly prohibited. In the event it is found that a towed vehicle is subject to forfeiture the City shall arrange for the vehicle to be picked up from the Contractor's storage facility and the Contractor shall invoice the National City Police Department, Serious Traffic Offenders Team (STOP) for all towing and storage fees. 6.4 Contractor Availability - Vehicle Release Contractor shall be available to release vehicles to their owners, agents or authorized representatives, twenty-four (24) hours a day, seven (7) days a week including all holidays. 6.5 Business Office Contractor shall maintain a functional business office within the location of the yard used to store police initiated tows. 6.6 Business Office Hours Contractor shall adequately staff their business office in order to remain open and available to meet the public during the normal business office hours. The business office of the Contractor shall be located within the storage yard for which a towed vehicle is located and be open to serve the public and the City from 0800 to 1800 hours, Monday through Friday, except for City observed holidays. City observed holidays are: New Years Day, Dr. Martin Luther King Jr.'s Birthday, Washington's Birthday, Caesar Chavez Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, and Christmas Day. 20 6.7 Contractor's Employees All drivers must maintain a professional appearance. Staff shall work in a neat and clean uniform. The Contractor shall furnish staff with a shirt or some other type of outerwear bearing the company name and logo. Appropriate clothing will be worn at all times including by employees that are being trained. All employees will conduct themselves in a professional manner when interacting with the public or City employees. Within ten (10) days of provisional award the Contractor(s) shall provide the National City Police Department Traffic Division Sergeant with the names of all employees that will be assigned to the contract. The Contractor will notify National City Police Department Traffic Division Sergeant whenever a new employee is hired that is assigned to perform duties under the contract or may have access to vehicles impounded pursuant to police request. Contractor shall ensure that all tow truck drivers responding to calls initiated by the City are properly licensed, qualified and competent employees. The Contractor shall ensure all tow truck drivers are 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 ALL vehicles. All tow truck drivers shall possess the proper class license and certificates for towing vehicles, along with a class 'A' endorsement to allow operation of special vehicle configurations and/or special cargos. Contractor's employees shall be qualified to perform all work undertaken by or assigned to them. In the event a driver or the equipment is inadequate and the Contractor is unable to service the request, a charge for service or labor will not be permitted. 6.8 Signs In compliance with California Civil Code § 3070 (E), Contractor shall display inside the business office, in plain view at the cashier's station, a sign. Said sign shall not be less than 17 by 22 inches in size, with lettering not less than one inch in height, disclosing all storage fees and charges in force, including the maximum daily storage rate. Posting of the Fee Schedule (Attachment A) in the appropriate size and lettering complies with CCC § 3070 (E). Additionally, Contractor is required by California Vehicle Code § 22850.3 (b) to display in a conspicuous place a notice to the effect that a vehicle impounded at the direction of the Police Department may only be released upon proof of current registration. Said notice must include the name and telephone number of the local police agency that caused the vehicle to be stored. 6.9 Method of Payment - Towing or Storage Charges (22651.1 CVC) At a minimum, Contractor shall accept a valid bank credit card or cash for payment of towing and storage by the registered owner, legal owner, or the owner's agent claiming the vehicle. Pursuant to California Civil Code § 1748.1, Contractor shall not impose a surcharge on a cardholder who elects to use a credit card in lieu of cash for payment of any fees pursuant to this 21 Agreement. In addition, Contractor shall have sufficient funds on the premises to accommodate and make change in a reasonable monetary transaction. 6.10 Storage of Vehicles; City, Seized, Evidentiary Contractor shall immediately provide written notice to the National City Police Department Traffic Unit whenever a city vehicle, seized vehicle or one towed for evidentiary purposes is stored in excess of forty-eight (48) hours. Failure to provide the required written notification to the City may result in forfeiture of Contractor's right to storage fees. The Contractor shall provide invoices to the National City Police Department Operations Assistant for the towing of each City owned and each seized vehicle, and towing and storage of each vehicle for evidentiary purposes. The invoices shall include the description of the vehicle, the date, time, origin, and disposition of the towed vehicle, name and identification number of City employee authorizing the tow and/or storage, the mileage starting and finishing at destination, and an itemized cost of services provided (mileage, number of storage days) commensurate with the attached rate schedule. Invoices shall be delivered to the National City Police Department Operations Assistant no later than the fifteenth (15th) of the month following services rendered. City shall make payment for services rendered on a monthly basis from month previous. 6.11 Removal from Private Property Pursuant to California Vehicle Code § 22658(h) a towing company may impose a charge of not more than one-half of the regular towing charge for the towing of a vehicle at the request of the owner of private property or that owner's agent pursuant to this section if the owner of the vehicle or the owner's agent returns to the vehicle before it is removed from private property. The regular towing charge may only be imposed after the vehicle has been removed from the property and is in transit. Pursuant to sub -section (i) (2), if a vehicle is released within 24 hours from the time the vehicle is brought into the storage facility, regardless of the calendar date, the storage charge shall be for only one day. Not more than one day's storage charge may be required for any vehicle released the same day that it is stored. 6.12 Notice to City - Private Property Impounds In addition to the requirements set forth in California Vehicle Code § 22658 Contractor agrees to notify the National City Police Department of all vehicle impounds from private property, within the jurisdictional limits of City, that result in storage of the vehicle. Notice shall include but not be limited to a complete description of the vehicle including the vehicle identification number, location of impound and name of property owner or agent who authorized the impound. Notice shall occur within one hour of taking possession of the vehicle. Generally, private property impounds are considered On -Demand Tows. 6.13 Gratuities (12110 CVC) Contractor or Contractor's employees shall not offer or provide City, and no City employee shall accept any direct or indirect commission, reduced fee, gift, recreation, favors, seasonal gratuity, 22 or any compensation whatsoever from Contractor. No City employee shall offer or provide Contractor with any gift, recreation, favor, seasonal gratuity, or any compensation whatsoever. No City employee is permitted to purchase a lien sold vehicle from Contractor that resulted from a police initiated tow or referral tow. City employees shall not purchase any vehicle or vehicle part from Contractor for a reduced fee or a fee below the prevailing rate as determined by industry standards. The intent of this section is to avoid the mere appearance of impropriety involving the contractual relationship. Contractor or Contractor's employees are prohibited from accepting any money or anything of value from a repair shop for delivery or the arranging of a delivery of a vehicle for the purpose of storage or repair. Nothing in this section is intended to preclude Contractor from charging a repair shop appropriate towing fees pursuant to the Fee Schedule. No benefit provided City by Contractor, or benefit provided Contractor by City, as defined in the terms and conditions of this Agreement that resulted from the process of negotiations, shall be considered a gift or gratuity within the meaning of this section. 6.14 Tow Truck Driver - On -Scene Duties Upon arriving on -scene of a police initiated tow, the Contractor's employee shall report to the investigating Peace Officer in charge. The officer -in -charge shall make every reasonable effort to inform Contractor's employee of any unusual circumstance or hazardous condition. Contractor's employee shall make every reasonable effort to inform the officer -in -charge of any unusual circumstance or hazardous condition undetected by the officer -in -charge. The officer -in -charge may request additional towing services from the Contractor's employee and the officer -in -charge shall have the authority to waive the Response Time requirements for additional services based on the on -scene needs. Contractor's employee shall make every reasonable effort to comply with instructions or directions provided by the officer -in -charge. Contractor's employee may make any emergency alterations reasonably required to safely move and/or impound vehicles. Contractor shall be responsible for removing and appropriately disposing of collision related debris from the public right-of-way to ensure public safety. Contractor shall also remove or render inert any liquid debris that may reasonably be considered a safety hazard to the public - right -of -way. If the removal of any type of debris or hazardous material is beyond the capability of Contractor, Contractor's employee shall inform the officer -in -charge so accommodations can be made. 6.15 Access to Stored Vehicles During regular business hours, Contractor shall make vehicles stored at the request of City available to that vehicle's registered owner, a person who can be verified to be the registered owner's agent, insurance agents, insurance adjusters, or representatives of automotive repair businesses for the purpose or estimating or appraising damages. 6.16 Access to Stored Vehicles — Removal of Private Property Pursuant to California Vehicle Code § 22851(b); no lien shall attach to any personal property in or on the vehicle. The personal property in or on the vehicle shall be given to the current 2:3 registered owner or the owner's authorized agent upon demand. The lien holder shall not be responsible for personal property after any vehicle has been disposed of pursuant to Division 11, Chapter 10 of the California Vehicle Code. Pursuant to California Civil Code § 3068.1, the lien is deemed to arise on the date of possession of the vehicle. Possession is deemed to arise when the vehicle is removed and is in transit. 6.17 Access to Evidentiary Vehicles Vehicles impounded by City for investigative purposes pursuant to California Vehicle Code Sections 22655 or 22655.5 shall be held in maximally secured, nonpublic areas of Contractor's property, until the vehicle is released by order of City or in conformance with section 8.3 of this Agreement. No person other than a Police Officer, Reserve Police Officer, Field Evidence Technician, Property & Evidence Unit employee or Crime Scene Specialist employed by City shall remove any property or other contents from evidentiary vehicles. Property removed from such vehicles shall be recorded as removed on the content inventory and the content inventory dated and signed by the Police Officer, Reserve Police Officer, Field Evidence Technician, Property & Evidence Unit employee or Crime Scene Specialist removing the property and by a representative of the Contractor. 6.18 Invoices All invoices for towing and impounds pursuant to this Agreement shall clearly and individually itemize each and every specific charge or fee type. Daily storage fees shall be itemized on a per day basis, for example: 10 days storage @ $ per day. All itemized City fees of all types shall be documented on the invoice. The customer shall be provided no less than one copy of the invoice, after all fees have been paid and the invoice marked "Paid." 6.19 Vehicle Impound Control Card (PD form 250) A Vehicle Impound Control Card (PD Form 250) shall be completed for all police tows. A Vehicle Impound Control Card shall also be completed for all collision tows when the police order or direct a tow for a disabled vehicle. The impounding officer shall obtain a case number and enter. the case number on the control card before giving the tow truck driver a copy of the control card. Contractor shall not be liable for uncollected City or administrative fees when the Vehicle Impound Control Card (PD Form 250) is not properly completed by the impounding officer. PD Form 250 shall contain the lawful authority to impound pursuant to the California Vehicle Code. However, the impounding officer may elect to use the words "Admin Fee Applies" listed in the OTHER section of the form. 6.20 Proceeds from Lien sale In conformance with California Civil Code § 3073 and California Vehicle Code § 22850.5 the proceeds from the lien sale of any vehicle impounded pursuant to the Negligent Vehicle 24 Impound Release (NVIR) program or the Serious Traffic Offender Program (STOP) shall be distributed in the following order: 1. Any and all costs necessary to discharge the lien, including but not limited to impound and storage fees, and the costs of processing the vehicle for lien sale shall be paid to the (lien holder) Contractor. 2. Any and all City administrative fees, including individual fees or any partial fees associated with the STOP and/or NVIR programs, shall be paid to City. Any partial fees recovered by City, resulting from the lien sale, shall first be attributed to the STOP program. 3. The balance, if any, shall be forwarded to the California Department of Motor Vehicles for deposit in the Motor Vehicle Account in the State Transportation Fund. 7.0 FEES 7.1 Fee Schedule Attachment A to this Agreement provides a complete schedule of all charges and fees the Contractor will be authorized to collect from consumers for towing, impound, and storage services rendered on behalf of City. The Attachment A rate schedule shall remain in place unless and until amended by the City Council, City of National City pursuant to section 3.5 Re -Opener - Fee Schedule, of this agreement. The schedule of rates charged by the operator shall be available in the tow truck, and shall be presented upon demand to person(s) for whom the tow services were provided, or his/her agent, or any representative of the City at the scene. In the event of a significant or substantial increase in operating expenses, which was not caused by any action of the Towing Contractor, a temporary surcharge may be added in the current rates for any and all of the services provided pursuant to this agreement. The Towing Contractor shall petition the City for the increase in towing and storage rates and provide supporting documentation. Any surcharge is subject to approval by the City. Rate changes may be sought at the will of the City. This process may be instituted by routine cost of service evaluation by the City or by request by the contractor. It is understood that there may be a need for rate changes during the term of the contract. Therefore, during the term of the contract, should any contractor make a request for rate changes, the contract Administrator will forward the request appropriately for consideration. No rate adjustments will be considered without City Council approval. Any cost -of -living increase to the tow rates shall be calculated from the Consumer Price Index (CPI) as published for the first quarter of each calendar year. In any year in which this index is not available, the City shall ascertain and utilize some similar criterion and establish, retroactively, a figure for the computation. Any increase in the City Standard Rates will trigger a proportional increase in the City's Referral Fee beginning of July 1st of each contract year. 2.5 7.2 Secondary Tow Fees Secondary towing fees are the responsibility of the vehicle owner, operator or agent. If it is determined that City is liable for the secondary tow fees, Contractor shall charge City 50% of the Basic Tow Fee for Secondary Tows, if applicable. No storage fees shall accrue while the subject vehicle is in the actual possession of the National City Police Department. Police personnel shall not release a vehicle from the National City Police Department until all Contractor fees have been paid to Contractor by the vehicle owner, operator or agent. In the event a vehicle is released from the police department and Contractor fees were not paid, City shall be liable for the full fee. 7.3 City Vehicle Tow Fees Contractor agrees not to charge City a fee for the towing of marked or unmarked City police vehicles whether the tow resulted from mechanical breakdown or collision within the jurisdictional limits of National City. Contractor shall charge City 50% of the Basic Tow Fee for the towing of all other City vehicles whether the tow resulted from mechanical breakdown or collision within the jurisdictional limits of National City. Fees for all City vehicle tows including police vehicles, which occur outside the jurisdictional limits of National City, shall be resolved between the Contract Administrators but shall not exceed 50% of the basic tow fee. 7.4 Fees - Police Department Errors and Omissions When any vehicle has been ordered towed by City and it is established that the tow was in error through a mistake of fact, Contractor shall release the vehicle to its owner, operator or agent at no cost. Contractor shall bill City at no more than 50% of the basic tow fee. If an error by City results in a vehicle being stored longer than it can reasonably be established that it should have been, Contractor shall release the vehicle and bill the owner, operator or agent only those storage charges that would have accrued if no error had occurred. Contractor shall bill City storage fees at no more than $2.50 per day for every day beyond the owner, operator or agent's responsibility. If the error in towing or storage is discovered after the vehicle owner, operator or agent recovers the vehicle and all fees have been paid to Contractor, the owner, operator, or agent may be referred to the City Clerk, City of National City to file a Claim for Damages against City. 7.5 Referral Fee Contractor shall make quarterly Referral Fee payments to City for the right to provide towing and storage service to City. The minimum Referral Fee payment amount per Contractor shall be five thousand five hundred sixty five dollars ($5,565.) per quarter. The Referral Fee shall be payable for a period of three (3) years subject to adjustments as defined in Section 3.4 - Re - Opener Clause - Referral Fee. 26 7.6 Referral Fee - Due Date The Referral Fee payment shall be due and payable no later than the fifteenth (15th) day of the calendar month following the end of each quarter, pursuant to the following schedule: First Contract Year; Quarter End Dates ls` Quarter — June 30, 2006 2"a Quarter — September 30, 2006 3rd Quarter — December 31, 2006 4th Quarter — March 31, 2007 Second Contract Year; Quarter End Dates ls` Quarter - June 30, 2007 2nd Quarter September 30, 2007 3rd Quarter December 31, 2007 4th Quarter - March 31, 2008 Third Contract Year; Quarter End Dates ls` Quarter - June 30, 2008 2nd Quarter - September 30, 2008 3rd Quarter - December 31, 2008 4th Quarter - March 31, 2009 7.7 Referral Fee - Late Fee Any amount owed to the City more than fifteen (15) calendar days beyond the due date, shall be considered delinquent and will be in breach of contract. Failure to pay any amount owed to the City may result in the Contractor being suspended from the contract until such amount is paid. Interest will be charged on unpaid amounts at the maximum rate permitted by law. Partial payments will not be accepted. 7.8 Referral Fee - Payments The Referral Fee is payable to "City of National City." Payments shall be directed as follows: Operations Assistant National City Police Department 1200 National City Blvd. National City, CA 91950 27 Upon receipt and no later than five days from receipt, the Operations Assistant shall record and account for the Referral Fee payment consistent with the terms of this agreement and forward the payment to the City Finance Department for deposit in Revenue Account Number 001-11000- 3558. 7.9 Negligent Vehicle Impound Release (NVIR) Fee The Negligent Vehicle Impound Release Fee shall be an amount established by City. Said fee is currently fifty-five ($55) dollars. The NVIR fee is recognized as a necessary and effective method of generating those revenues necessary to off set program costs, services and facilities. The NVIR fee applies only to vehicles released by Contractor for violating certain sections of the California Vehicle Code (CVC) and/or the National City Municipal Code (NCMC). See Attachment B for a list of applicable sections. 7.10 NVIR Fee Contractor shall collect the NVIR fee of fifty-five ($55.00) dollars per vehicle, upon the release of any vehicle impounded pursuant to the above listed California Vehicle Code sections. Contractor shall remit the collected fees to City pursuant to the below listed payment schedule. The collected NVIR fees shall be properly identified, and itemized. 7.11 NVIR Fee - Payment Due Date NVIR fees collected by Contractor shall be due and payable to City no later than the fifth (5th) day of each month and the twentieth (20th) day of each month. Payments due on the fifth (5th) day of each month shall include and account for all vehicles released by Contractor between the sixteenth (16th) day of the month, and the last day of the month, (inclusive). Payments due on the twentieth (20th) day of the month shall include and account for all vehicles released by Contractor between the first (1d) day of the month and the fifteenth (15th) day of the month, (inclusive). 7.12 NVIR Fee -Payments The NVIR Fee is payable to "City of National City." Payment shall be directed as follows: Operations Assistant National City Police Department 1200 National City Blvd. National City, CA 91950 Upon receipt and no later than five days from receipt, the Operations Assistant shall record and account for the NVIR Fee payment, consistent with the terms of this agreement and forward the payment to the City Finance Department for deposit in Revenue Account Number 001-04049- 3551. 28 7.13 NVIR Fee Payment - Late Fee Any amount owed to the City more than fifteen (15) calendar days beyond the due date, shall be considered delinquent and will be in breach of contract. Failure to pay any amount owed to the City may result in the Contractor being suspended from the contract until such amount is paid. Interest will be charged on unpaid amounts at the maximum rate permitted by law. Partial payments will not be accepted. 7.14 Serious Traffic Offender Program (STOP) Impound Fee The Serious Traffic Offender Program Fee shall be an amount established by City. Said fee is currently one hundred fifty ($150) dollars. The STOP fee is recognized as a necessary and effective method of generating revenues necessary to off set program costs, services and facilities. Vehicles impounded by City pursuant to the STOP program shall be released by City, upon expiration of a 30-day hold and shall only be released by City upon a showing of proof that the owner, operator or agent has a valid driver's license. Contractor shall collect STOP fees prior to the actual release of the vehicle. Contractor shall remit the collected STOP fees to City pursuant to the below listed payment schedule. The STOP fees shall be properly identified and itemized. The STOP fee applies only to vehicles impounded pursuant to certain California Vehicle Code Sections. See Attachment C for a list of applicable sections. 7.15 STOP Impound Fees - Due Date STOP grogram fees collected by Contractor shall be due and payable to City no later than the fifth (5 ) day of each month and the twentieth (20th) day of each month. Payments due on the fifth (5th) day of each month shall include and account for all vehicles released by Contractor between the sixteenth (16th) day of the month, and the last day of the month, (inclusive). Payments due on the twentieth (20th) day of the month shall include and account for all vehicles released by Contractor between the first (1st) day of the month and the fifteenth (15th) day of the month, (inclusive). 7.16 STOP Fee -Payment The STOP program fee is payable to "City of National City." Payment shall be directed as follows: Operations Assistant National City Police Department 1200 National City Blvd. National City, CA 91950 Upon receipt and no later than five days from receipt, the Operations Assistant shall record and account for the STOP fees consistent with the terms of this agreement. The STOP fee of one - hundred fifty ($150) dollars per vehicle shall be divided and deposited with the City Finance Department as follows: 29 Amount Revenue Account Number $125.00 191-11000-3550 $ 25.00 001-11000-3550 7.17 STOP - Late Fee Any amount owed to the City more than fifteen (15) calendar days beyond the due date, shall be considered delinquent and will be in breach of contract. Failure to pay any amount owed to the City may result in the Contractor being suspended from the contract until such amount is paid. Interest will be charged on unpaid amounts at the maximum rate permitted by law. Partial payments will not be accepted. 7.18 STOP; 30-Dav Vehicle Impound Fees Pursuant to the Serious Traffic Offender Program certain vehicles are impounded and held in impound for thirty (30) days. Said vehicles accrue Contractor's daily storage fees according to the attached Fee Schedule. In addition to any other administrative fees herein identified, Contractor shall pay CITY, fifteen (15%) percent of the total storage fee, when the vehicle is held for 30 days and subsequently released to the vehicle owner, operator or agent. Any revenue recovered as a result of this section shall be used to defray and off set police costs associated with the operation of the STOP program. This fifteen (15%) percent fee shall not apply to STOP vehicles not held for the 30-day period. This fee shall apply to the lien sale process, consistent with section 6.17 of this Agreement. 7.19 30-Day Impound Fees - Due Date and Payment Revenue received as a result of section 7.18, shall be distinguished from any other administrative fee or revenue and shall be due and payable consistent with sections 7.15 through 7.17. Any proceeds received from the STOP 30-Day Vehicle Impound shall be deposited into Revenue Account Number 191-110003550. 8.0 VEHICLE RELEASE 8.1 General Rule - Vehicle Release As a general rule, Contractor shall be responsible for the release of all vehicles in Contractor's possession as a result of police initiated or referral tows. 8.2 Exceptions to General Rule Vehicles impounded pursuant to the following California Vehicle Code Sections shall not be released by Contractor. Contractor shall refer the vehicle owner, operator or agent to the police department to obtain a release: 1. 14602.6 - S.T.O.P. Program 30 2. 22651 (i) - Five or more Parking Citations 3. 22655 - Hit & Run Investigation 4. 22655.5 - Evidentiary Reasons 8.3 Hit & Run Investigation - Mandatory Release 22655(b) CVC Any vehicle impounded for hit & run investigation (20002 thru 20006 CVC), pursuant to the authority of California Vehicle Code § 22655, shall be released within 48 hours after removal from highway or private property. When determining the 48-hour period, weekends, and holidays shall not be included. Any vehicle not released by City within the maximum 48-hour period, shall be released by Contractor upon demand of the vehicle owner, operator or agent upon the expiration of the 48-hour period, regardless of City hold status. 8.4 Questions, Problems, or Controversy Associated with Vehicle Release In the event Contractor experiences problems, questions or controversy associated with a customer demanding the release of a police initiated or referral tow, Contractor shall notify the police department. Additionally, if Contractor discovers a questionable DMV document, an officer shall be dispatched to resolve the problem. 8.5 Expert Training - DMV Document Identification During the term of this Agreement and at Contractor's request, City shall provide Contractor, Contractor's employees, and new employees with training in the identification and recognition of all relevant California Department of Motor Vehicles documents including but not limited to California Drivers License and California Vehicle Registration documents. A recognized expert employed by the California Department of Motor Vehicles shall conduct training. Training shall include but not be limited to recognition and identification of counterfeit, altered, or forged California Driver's License and California Registration and Title Certificates. The Contract Administrators shall coordinate date, time and location of training. 9.0 MINIMUM TRUCK EQUIMENT and STORAGE LOT REQUIREMENTS During the term of this Agreement, Contractor shall meet the following minimum tow truck equipment requirements and storage lot requirements: 9.1 Minimum Tow Truck Requirements During the term of this Agreement, Contractor shall have available no less than three tow rigs of at least one -ton capacity Each tow rig shall have dual rear wheels. Each vehicle used for towing police impounds shall have a manufacturer's gross vehicle weight rating (GVWR) of not less than 14,500 pounds. 31 In addition, Contractor shall have available one tow rig, commonly known as a "Sub -Garage Tow Vehicle," capable of entering and removing impounded vehicles from the underground parking garage of the National City Police Department. The sub -garage tow vehicle is a limited use vehicle and does not require dual wheels or a GVWR of 14,500 pounds. 9.2 Minimum Tow Truck Equipment Requirements Each tow truck responding to requests for police initiated towing and impound services shall be equipped with radio communications equipment capable of effecting two-way radio communications between the tow truck operator and Contractor's dispatching operation. Citizen Band radios shall not be used to meet this requirement. Each tow truck shall have a maximum 8,000 pound capacity winch that is power driven by power takeoff from transmission, in both directions, and equipped with safety dogs or an adequate braking system. Winches must be fitted with a minimum of 100 feet of cable for recovery tasks. Roll back car carriers must be fitted with a minimum of 50 feet of cable. All cable (wire rope) must be maintained in good condition. Only wire rope with swaged ends, wedge locks or braided ends, with metal sleeves in the loops shall be approved for use under the terms of this agreement. Consistent with the California Code of Regulations, Title 13, § 1305(b), wire rope is not in good condition when it is stranded, knotted, crushed, excessively rusted, kinked, badly worn, when there are 12 or more wires broken in lay length, or where there is other visible evidence of loss of strength. Contractor shall maintain dollies for use by in-service tow trucks providing police towing services to City. Each tow truck, with the exception of slide back carriers, shall carry its own set of dollies. Each tow truck shall be equipped with no less than two safety chains. No less than two safety chains shall be used for each vehicle being towed. Each safety chain shall be rated at no less than the rating specified by the original equipment manufacturer (OEM). The safety chains shall be securely affixed to the bed frame or wrecker boom, independent of the towing sling, bar, hitch, wheel lift, or under lift towing equipment. The towed vehicle shall be secured to the towing equipment independent of the safety chains by either two chains or two straps. All safety connections and attachments shall have a positive means, of sufficient strength, to ensure that the safety connection or attachment cannot become disengaged while in transit. Vehicles being transported on slide back carriers shall be secured by four tie down chains or straps, independent of the winch or loading cable. In addition to the requirements set forth in California Vehicle Code § 27700, City requires Contractor to equip each tow truck with red flares, lanterns or reflectors, hand tools (screw drivers, pliers, ratchet and sockets, crescent wrenches, metric and standard lug wrenches), bolt cutters, six foot crowbar, rope, broom, shovel, dustpan, fire extinguisher (dry chemical or carbon dioxide type), utility flood lamps, portable red taillights and stoplights for towed vehicles, equipment for opening locked vehicles, safety snubber chains, and a trash can with absorbent material. 32 1. Be completely enclosed by an 8-foot high fence with a lockable gate. Construction of the fence and gates must be of sufficient construction to prevent entry into the storage area of unauthorized persons or vehicles. 2. Alarms and intrusion sensors that provide immediate notification capabilities at all times or similar devices or security measures. 3. Sufficient lighting to detect unauthorized entrance at night. 4. The storage yard shall be served by drainage facilities adequate to prevent the accumulation of standing water. The vehicle storage area must remain free of mud, pools of standing water, debris, or other elements that would be harmful to the stored vehicle, vehicle contents, or to persons viewing, inspecting or recovering the vehicles. The vehicle storage area, including all driveways and access roads, shall be surfaced in a manner so as to prevent the listed conditions. An acceptable surface includes concrete, asphalt, asphaltic concrete, or decomposed granite with oil. The Contractor shall provide service to the public twenty-four (24) hours a day, seven (7) days a week so that an owner may pay towing and storage fees at the Storage Yard where their vehicle is stored and obtain its release. The Contractor is responsible for the reasonable care, custody, security, and control of any property contained in towed or stored vehicles. All items removed from a vehicle or left stored within the vehicle shall be released to the owner or agent of the impounded vehicle upon demand during normal business hours unless the vehicle is under Police Evidence Hold. 9.8 Minimum Lighting Requirements - Storage Lot There must be adequate lighting, and all yard and office construction must comply with applicable building codes, fire codes, and zoning regulations. The minimum lighting requirements per ten thousand (10,000) square feet are in effect unless zoning or other local regulations dictate increased or diminished Lighting requirements: 1. Four (4) 300-Watt incandescent medium -wide flood lights, or 2. Three (3) 300-Watt quartz halogen lights, or 3. Two (2) 100-Watt high-pressure sodium lights. 34 9.9 Vehicle Examination Area Contractor will set aside an area of sufficient size to place a standard sized passenger sedan and have a minimum of forty-eight (48") inches from each side, the front, and rear of the vehicle for the purpose of inspecting the vehicle. This examination area must be flat, level, and paved with concrete, asphalt or asphaltic -concrete, or other suitable all weather surfaces. 9.10 Secure Area - Evidentiary Vehicles Vehicles impounded by City for investigative purposes shall be held in a maximally secured, non-public area of Contractor's property until released by City. Contractor shall insure, by the use of various security devices and measures, including but not limited to walls, fences, containers, buildings or the like, that no unauthorized person, whether intentionally or accidentally can come into physical contact with evidentiary vehicles. Located within the storage yard, Contractor shall set aside a secure area, sufficient in size to hold four (4) vehicles, with sufficient room to walk around, open doors, and examine each separate vehicle. 10.0 INSURANCE REQUIREMENTS 10.1 Minimum Insurance Requirements All required insurance shall be submitted to the City of National City within ten (10) days of provisional award. Failure to provide the insurance certificates within the time frame specified shall be cause for the bid to be rejected as non -responsive. The Contractor shall maintain insurance in full force and effect during the entire period of performance under contract. Failure to do so shall be cause for termination of the contract. All policies must have a thirty (30) day non -cancellation clause giving the City thirty (30) days prior written notice in the event a policy is canceled. At the end of each contract year, the City reserves the right to review insurance requirements and to require more or less coverage depending upon assessment of the risk, the Contractor's past experience, and the availability and affordability of increased liability insurance coverage. Insurance coverage must be from an insurance carrier licensed in the State of California and rated "A-, VI" or better by the A.M. Best Key Rating Guide. All policies must be endorsed to provide that the insurance afforded by Contractor is primary to any insurance or self-insurance maintained by City and its elected officials, officers, employees, agents, and representatives as respects operations of the Named Insured. Any insurance or self insurance maintained by City and its elected officials, officers, employees, agents, and representatives shall be in excess of Contractor's insurance and shall not contribute to it. The Contractor, at its sole cost and expense, shall purchase and maintain throughout the term of this agreement, the following insurance policies: 1. Commercial General Liability for a minimum of two million dollars combined single limit per occurrence ($2,000,000.00). The City of National City must be named as an additional insured on the certificate 35 2. Automobile Liability for a minimum of two million dollars combined single limit per occurrence ($2,000,000.00). The City of National City must be named as an additional insured on the certificate. 3. Garage Keepers minimum of one million dollars per occurrence ($1,000,000.00). 4. On Hook/Cargo in amounts not less than one hundred thousand dollars ($100,000.00). 5. Workers' Compensation coverage in accordance with the laws of the State of California. Policy must contain a Waiver of Subrogation of Rights against the City of National City. 10.2 Primary Insurance The aforementioned policies shall constitute primary insurance as to the City, its officers, employees, and volunteers, so that any other policies held by the City shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the City of cancellation or material change. Said policies, except the workers' compensation policy, shall name the City and its officers, agents and employees as additional insured's. 10.3 Claims Made vs. Occurrence Form If required insurance coverage is provided on a "claims made" rather than "Occurrence" form, the Contractor shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. The policy retroactive date coincides with or precedes Contractor's commencement of work under this Agreement (including subsequent policies purchased as renewals or replacements). 10.4 Aggregate Insurance Limits Any aggregate insurance limits must apply solely to this Agreement. 10.5 Insurance Company Insurance shall be written with only California admitted companies which hold a current policy holder's alphabetic and financial size category rating of not less than A; VIII according to the current Best's Key Rating Guide, or a company of equal financial stability that is approved by the City's Risk Manager. Any deductibles more than ten thousand dollars ($10,000) shall be declared and approved by City. 10.6 Insurance Certification Requirement This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the City Purchasing Agent at 2100 Hoover Avenue National City, California 91950. If the Contractor does not keep all of such insurance policies in full force and effect at all times during the terms of this agreement, the City may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and may terminate this Agreement as provided herein. 36 10.7 Insurance Requirement - Renew Option If this Agreement is extended beyond its original term pursuant to section 3.3, the insurance provisions may be updated at the option of City. 10.8 Limitations of Liabilities and Obligations The foregoing requirements as to the types and limits of insurance coverage to be maintained by the Contractor, and any approval of said insurance by the City, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to the Agreement, including, but not limited to, the provisions concerning indemnification, section 2.10. 10.9 Sub -Contractor Insurance Requirement Contractor shall make certain that all subcontractors hired by Contractor are insured in accordance with this Agreement. If any subcontractor's coverage does not comply with the foregoing provisions, Contractor shall indemnify and hold City harmless of and from any damage, loss, cost, or expense, including attorneys' fees. 11.0 CONSTRUCTION of AGREEMENT The parties acknowledge and agree that (1) each party is of equal bargaining strength; (2) each party has actively participated in the drafting, preparation and negotiation of this Agreement; (3) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement; (4) each party and such party's counsel and advisors have reviewed this Agreement; (5) each party has agreed to enter into this Agreement following such review and the rendering of such advice; and (6) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any attachments, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF r1ONAL CITY JC TOWING, INC. By: Nick lnzunza, Mayor APPROVED AS TO FORM: > � Nt uG., George H. Eiser, III City Attorney, City of National City .. �. By: 37 /lJohn Clark, IV (Title) SERVICE ATTACHMENT A TOWING FEE SCHEDULE FEE • BASIC TOWING Includes First Hour Hookup, Labor, Standby Time, for vehicles Under 9,500 GVW (unloaded). $135.00 • MEDIUM SIZE - BASIC TOWING INCLUDES FIRST HOUR HOOKUP, LABOR, STANDBY TIME, FOR VEHICLES OVER 9,500 GVW BUT LESS THAN 22,000 • LARGE SIZE - BASIC TOWING INCLUDES FIRST HOUR HOOKUP, LABOR, STANDBY TIME, FOR VEHICLES OVER 22,000 GVW (UNLOADED). • ON -SCENE OR STAND-BY LABOR = EACH 15- MINUTE INCREMENT, BEYOND FIRST HOUR. IS CHARGED ONLY WHEN EXTRA ORDINARY LABOR MUST BE EXPENDED TO RECOVER A VEHICLE. STAND-BY IS CHARGED WHEN THE JOB CANNOT BE STARTED AND MUST BE EXPLAINED ON THE TOW BILL. $150.00 $200.00 $35.00 • DOLLIES WILL ONLY BE USED WHEN THERE IS NOT A LESS EXPENSIVE, SAFE MANNER OF HANDLING THE SITUATION. $50.00 • DRY RUN MAY ALSO BE KNOWN AS A "HOOK-UP — DROP FEE" AND IS CHARGED WHEN THE VEHICLE IS HOOKED UP AND THE OWNER RETURNS BEFORE THE VEHICLE IS IN TRANSIT. $60.00 • PER MILE TOWING APPLIES ONLY TO VEHICLES RECOVERED OUTSIDE THE JURISDICTION OF THE CITY OF NATIONAL CITY. $5.00 • MAXIMUM STORAGE - PER DAY Per day is defined as a 24- hour period. $35.00 • STORAGE PER HOUR Up to maximum of $35.00 per day. $5.00 • AFTER HOURS VEHICLE RELEASE After 6PM and before 8AM including weekends and all holidays. $50.00 38 • NOTIFICATION OF LIEN SALE Vehicle valued at less than $4.000, (22851.12 CVC). $70.00 • NOTIFICATION OF LIEN SALE Vehicle valued at over $4,000. (22851.12 CVC). $100.00 • POLICE EQUIPMENT TOWING Inside jurisdictional limits of National City. No Charge • CITY EQUIPMENT TOWING Includes all City vehicles. Also includes police vehicles towed from outside jurisdictional limits of National City. $50.00 CITY ADMINISTRATIVE FEE'S • NEGLIGENT VEHICLE IMPOUND RELEASE FEE $55.00 • SERIOUS TRAFFIC OFFENDER PROGRAM FEE $150.00 39 ATTACHMENT B Pursuant to Section 7.9 of this Agreement, the Negligent Vehicle Impound Release Fee shall apply to vehicles impounded pursuant to the following California Vehicle Code sections and/or National City Municipal Code sections. One or more the listed sections must be included on the impounding documents. California Vehicle Code 22500 Et seq. Prohibited Stopping, Standing, or Parking 22500.1 22651 (a) 22651 (b) 22651 (d) 22651 (e) 22651 (h) 22651 (i) 22651 (j) 22651 (k) 22651 (1) 22651 (m) 22651 (n) Prohibited Stopping, Standing, or Parking: Fire Lane Unattended on Bridge Hazard to flow of traffic Blocking a driveway Blocking fire hydrant access Operator taken into custody - not practical to park or lock Unpaid parking citations Illegally parked and no evidence of registration displayed Parking over 72 hours Temporary tow away signs for street repair Highway authorization for other use, with 24-hour notice No parking tow away signs posted 22651 (o) (1) Expired registration in excess of six months 22651 (p) 22651 (r) 22652 22653 (c) 22655 (a) Unlicensed or suspended/ revoked license in violation of 12500, 14601, 14601.1, 14601.2, 14601.3, 14601.4, 14601.5, or 14604. Illegally parked, blocking a legally parked vehicle Illegally parked in designated handicapped parking space Removal from private property, at request of property owner, when operator is taken into custody Hit & Run suspect vehicle 40 22656 Illegally parked or abandoned within 7 '/2 feet of nearest railroad rail 22669 Et seq. Removal of Abandoned Vehicles as determined pursuant to section 22523 CVC National City Municipal Code 11.32.060 Illegally parked - 72 hour violation - vehicle removal 11.32.070 Illegally parked - Restricted hours - vehicle removal 11.32.160 Illegally parked - Emergency parking - vehicle removal 11.32.250 (e) Illegally parked - Taxi Stand - vehicle removal 41 ATTACHMENT C Pursuant to Section 7.14 of this Agreement, the Serious Traffic Offender Program Fee shall apply to vehicles impounded pursuant to the following California Vehicle Code Sections. One or more of the following sections must be included on the impounding documents. 22651(p) 22651(h)(2) 14602.6 California Vehicle Code Includes Sections 12500, 14601, 14601.1, 14601.2, 14601.3, 14601.4, 14601.5 or 14604. Upon service of notice of an order of Suspension or Revocation, pursuant to 13388 CVC. Unlicensed, Suspended or Revoked and involved in traffic collision. Sub -section (b) - Certified Mail, 2-day notice to legal owner. Failure to notify legal owner results in maximum fee for 15 days vehicle storage. 14602.7 Fleeing a Peace Officer - Court Order upon affidavit of Peace Officer, to seize vehicle, not to exceed 30 days. Failure to notify legal owner (2 days notice) results in maximum fee for 15 days vehicle storage. 14607.6 Impoundment and Forfeiture of Motor Vehicle. 42 from: Rgbyn Ballinger At: RA Storelee Insurance Agency, Inc. FaxID: 707-745-3700 To: Brenda Hodges Date: 2/22/2006 02:01 PM Page: 1 of 2 RA Storelee Insurance Agency, Inc. PO Box 219 Benieia, CA-94-51 0 FAX From: Robyn Ballinger Phone: (707) 745-3321 Fax: (707) 745-3709 Lic. # 0618185 To: Brenda Hodges Pages: 2 Fax: (619) 336-4597 Date: 2/22/2006 Phone: ( ) - Subject: Certificate Message: Brenda, Following is the certificate for JC Towing, Inc. The insured has a $1,000,000 Limit for General Liability and11,1300,Uu UtimFfor the Auto Liability andlheri$1,000,000 Excess/Umbrella Policy. The Excess Umbrella policy provides $1,000,000 over and above the Ai,tto or- General Libility, thus giving you a $2,00O,000 Combined -Single limit for Auto and a $2,000,000 Combined Single Limit for General Liability. Please call me if you have any questions!! Thank you! Robyn ,Ballinger From: R9byn Ballinger At: RA Storelee Insurance Agency, Inc. FaxID: 707-745-3709 To: Brenda Hodges Date: 2/22/2006 02:01 PM Page: 2 of 2 ACORD_ CERTIFICATE OF LIABILITY INSURANCE PRODUfIER R.A. Storelee Insurance Agency Rob Storelee 321 .First Street Suite 201 Benicia CA 94510 Phone:707=745 3321 Tax:7-07-745-3109 INSURED CSR VM JCTOW-i DATE (MM/DDNYYY) 02/22/06 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # J.C. Towing, Inc. Auto Donation Auction Center 2501 PLivie Street Chula Vista CA 91911 INSURER A. Lincoln General Ins. Co. INSURER B. ./SURER C. TOPA Insurance Company INSURER D: INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED- NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN!. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS NC CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR Ate" LTR NSRD I TPt Vr llwurtANCE "POLTCYNI1MBER POLICY Er- JJVE DATEYENDDIW) yt,IUCY t)li'RATID` -"DATE(IMN/DDTY) LIMITS GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 A X X COMMERCIAL GENERAL LIABILITY I4P1,-0132-0-02 -0-5/22-8/-05 05/2-8/0-5 • misEsTEa occurenceT $ -100,-009 ] CLAIMS MADE I X I OCCUR MED EXP (Any one person) $ 5,000 FCREOMAL & ADV INJURY 4 1400 GENERAL AGGREGATE T-o0Q $2,000,000 GEN'L AGGREGATE LIMIT APPLIES PRO- PER: - PRODUCTS-COMP(OP AGG $2,00-0,I0 POLICY JECT LOC A X -AUTUM08t-E LIABILITY ANY AUTO LTP101320-02 05/28/05 05/28/06 COMBINED SINGLE LIMIT (Ea accident)000 81,000, - X ALL GINNED AUTOS SCHEDULED AUIO:i BODILY INJURY {Per person? X X HIRED AUTOS NON -OWNED AUS TO BODILY INJURY [Per accident] $ X -MIN crraPr) MOTORIST: $60 , 000 PROPERTY DAMAGE (Per accident) $ GARAGELIABIL lY AUTO GNI Y- EAACCYDENT - $ ANY AUTO OTHER THAN EA ACC $ AUTO ONLY: AGE $ EXCESSNMBRELLA LIABILITY EACH OCCURRENT $ 1, 000 , 000 $ X OCCUR I ICLAIMS MADE XL20528 .OS128/0_5 -0S/2HIQ-6 AGGREGATE $1,808,0O0 DEDUCTIBLE RETENTION $ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OR SIATL} ER TY LIMITS ER ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCL.UOED? EL. EACH ACCIDENT $ If yes, describe under E L DISEASE - EA EMPLOYEE SPECIAL PROVISIONS below E.L. DISEASE POLICY LIMIT $ A A DESCRIPTION OTHER aARAGKEEEPERS,L.L. ON HOOK/CARGO LTP101320-02 LTP101320-02 05/28/05 05/28/05 05/28/06 05/28/06 50/250000 500/2500Ded 50/250000 $1,000 Ded/ OF OPERATIONS /LOCATIONS / VEHICLES /EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS City of National City/National City Police Department are Named as Additional Insureds as their Interest may Appear: TONING OPERATIONS. CFRTIFIrATP MAI f1Ro NATLCIT City of National City/ National City Police Dept. 2100 Hoover Avenue National City CA 91950 ACORN 25 (2001/08) SHOULD ANY OF THE ABOVE DESCRIBED POLICES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER MALL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY HIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. 02/..a2/2008 0-9728 FAX 81989-91344 DRIVER ALLIANT INS SVCS IA 001 DRIVER ALLIANT INSURANCE SERVICES, INC. driver.aIliant INSURANCE SERVICES 1620 FIFTH AVENUE. SANDUO,tA P2101 LICENSE NO. 0C36861 PII. 619.699.0525 FAX 619.699,214S E-MAIL: Acodv@slriveralliant_corn AeststIER .100$ *Oat DATE: February 22, 2006 TO: Brenda Hodges FROM: Natalie Cody -Parker RE: JC Towing, Inc. PAGES: 2 -FAX: 33-6.4517 FAX: 619.699.2148 The certificate of insurance you requested is attadtecl. Advise if you need anything further. Sincerely, Natalie Cody -Parker 02472/2008 09:28 FAX 81989913'44 DRIVER ALLIANT INS SVCS I002 STATE COMPENSATION I N S 1.-A-AiN t f FUND CERTHOLDER COPY P.O, BOX 420807, SAN FRANCISCO,CA 94142-0807 CERTIFICATE OF WORKERS' COMPENSATION INSURANCE ISSUE DATE! 42-22-2005 CITY OF NATIONAL CITY PURCHASING DEPT. 2100 HOOVER AVE NATIONAL CITY CA 81850-8530 SO -GROUP; C04937 POLICY NUMBER: 000001E-240S CERTIFICATE 10: 45 CERTIFICATE.FX IREE 04-01-2006 04-01-2005/04-01-2006 This is to certify that we have issued a valid Workers —Compensation insurance policy in-e form approvedty the California Insurance Commissioner to the employer named below for the policy period that will expire or did expire as indicated above. This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the panty fisted bafein.-Netwigrstanding any, -requirement- tertrn .or -condition of any contract a a1her _document with respect to which this certificate of insurance may be issued or to whip, it may pertain the insurance afforded by the policy described herein Is subject to all the terms, exclusions. end conditions. of such policy. THORNED RIPRE$ENTATPRESIDENT EMPLO ER`-S LIABICIT-1'-LIMIT-INCLUDIHGDEFENSE COSTS: 44,400,400 PER OCCURRENCE. ENDORSEMENT N16O0 - G. JOIN CLARK, III TREAS - EXCLUDED. ENDORSEMENT N1801 - dOHN CLARK III MGR-MEMBER - EXCLUDED. ENDORSEMENT F2055 ENTITLED -CERTIFICATE HOLDERS' NOTICE EFFECTIVE 04-01-200S IS ATTAC%1E0 TO AND FORMS A PART Of THIS POLICY. EMPLOYER JC TOWING, INC AND/OR AUTO DONATION AUCTION CENTER. 7,-LC 2501 FAIVRE ST CHULA VISTA CA-111811 MEv.115) f915.S0) -PRINTED : -02— 22-2009 SD AGREEMENT BY AND BETWEEN CITY OF NATIONAL CITY AND MOYNAHAN TOWING FOR TOWING AND IMPOUND SERVICES FOR THE PERIOD OF APRIL 1, 2006 TO MARCH 31, 2009 TABLE OF CONTENTS Title & Section Page Number "Towing Agreement" 7 Recitals 7 1.0 DEFINITION OF TERMS 1.1 Police Tow 8 1.2 Police Referral Tow 8 1.3 On Demand Tow 8 1.4 Secondary Tow 8 1.5 Collision Tow 8 1.6 Response Time .8 1.7 Contract Year 9 1.8 Fee Schedule 9 1.9 Referral Fee 9 1.10 Negligent Vehicle Impound Release Fee 9 1.11 STOP Fee 9 1.12 30 Day Impound Fee 9 2.0 ADMINISTRATION and MANAGEMENT of AGREEMENT 2.1 Agreement Approval 10 2.2 Entire Agreement 10 2.3 Administration of Contract 10 2.4 Cooperation and Consultation 11 2.5 Compliance with Applicable Law 11 2.6 Licenses, Permits, Etc ... 11 2.7 Disputes 11 2.8 Mediation / Arbitration ... 12 2 2.9 Legal Fees 12 2.10 Indemnification and Hold Harmless 12 2.11 Business Records (10650 CVC et seg.) 13 2.12 Prohibition Against Use of Privileged Information 13 2.13 Independent Contractor ... 13 2.14 Assignment 13 2.15 Workers' Compensation 14 2.16 Non -Discrimination Provision 14 2.17 Conflict of Interest and Political Reform Act Obligations .. 14 2.18 Termination of Agreement 15 2.19 Charges and Fees 15 2.20 Inspection ... 15 2.21 Notice of Termination 15 3.0 TERMS of AGREEMENT, OPTIONS, RENEW and RE -OPENERS 3.1 Duration 16 3.2 Relevant Dates 16 3.3 Option to Renew 16 3.4 Re -Opener Clause - Referral Fee 17 3.5 Re -Opener Clause - Fee Schedule 17 3.6 Re -Opener Clause - 30 Day Impound Fee (STOP) ... 17 4.0 RESPONSE TIME, EXCEPTIONS and PENALTY ASSESSMENT 4.1 Response Time .. 17 4.2 Response Time Computation 18 4.3 Response Time - Penalty 18 4.4 Response Time - Penalty Assessment .. 18 5.0 ON -CALL CONTRATOR and CONTRACTOR ROTATION SCHEDULE 5.1 Contractor On -Call & Rotation 19 6.0 GENERAL DUTIES, REQUIREMENTS and OBLIGATIONS 6.1 Business License 19 6.2 Contractor Availability - Response to Service Requests 19 6.3 Contractor Towing Forfeited Vehicles 20 6.4 Contractor Availability - Vehicle Release 20 6.5 Business Office .. 20 6.6 Business Office Hours 20 6.7 Contractor's Employees 21 6.8 Signs .21 6.9 Method of Payment - Towing or Storage Charges (22651.1 CVC) 21 6.10 Storage of Vehicles; City, Seized, Evidentiary 22 6.11 Removal from Private Property 22 6.12 Notice to City - Private Property Impounds 22 6.13 Gratuities (12110 CVC) 22 6.14 Tow Truck Driver - On Scene Duties 23 6.15 Access to Stored Vehicles 23 6.16 Access to Stored Vehicle - Removal of Private Property 23 6.17 Access to Evidentiary Vehicles 24 6.18 Invoices . . 24 6.19 Vehicle Impound Control Card (PD form 250) 24 6.20 Proceeds from Lien Sale 24 7.0 FEES 7.1 Fee Schedule 25 7.2 Secondary Tow Fees 26 7.3 City Vehicle Tow Fees 26 4 7.4 Fees - Police Department Errors and Omissions 26 7.5 Referral Fee 26 7.6 Referral Fee - Due Date 27 7.7 Referral Fee - Late Fee .. 27 7.8 Referral Fee - Payments 27 7.9 Negligent Vehicle Impound Release (NVIR) Fee Z8 7.10 NVIR Fee 28 7.11 NVIR Fee - Payment Due Date 28 7.12 NVIR Fee - Payments 28 7.13 NVIR Payment - Late Fee 29 7.14 Serious Traffic Offender Program (STOP) Impound Fee 29 7.15 STOP Impound Fees - Due Date 29 7.16 STOP Fee - Payment 29 7.17 STOP Fee - Late Fee 30 7.18 STOP; 30-Day Vehicle Impound Fees 30 7.19 30-Day Impound Fees - Due Date and Payment 30 8.0 VEHICLE RELEASE 8.1 General Rule - Vehicle Release 30 8.2 Exceptions to General Rule 30 8.3 Hit & Run Investigations - Mandatory Release (22655(b) CVC) 31 8.4 Questions, Problems, or Controversy Associated with Vehicle Release 31 8.5 Expert Training - DMV Document Identification 31 9.0 MINIMUM TRUCK EQUIPMENT and STORAGE LOT REQUIREMENTS 9.1 Minimum Tow Truck Requirements 31 9.2 Minimum Tow Truck Equipment Requirements 32 9.3 Tow Truck Identification 33 9.4 Tow Truck Lighting Equipment 33 5 9.5 California Highway Patrol Inspection Certification ... 33 9.6 Tow Truck Maintenance 33 9.7 Storage Lot, Minimum Requirements 33 9.8 Minimum Lighting Requirements - Storage Lot 34 9.9 Vehicle Examination Area 35 9.10 Secure Area - Evidentiary Vehicles 35 10.0 INSURANCE REQUIREMENTS 10.1 Minimum Insurance Requirements 35 10.2 Primary Insurance 36 10.3 Claims Made vs. Occurrence Form 36 10.4 Aggregate Insurance Limits 36 10.5 Insurance Company 36 10.6 Insurance Certification Requirement 36 10.7 Insurance Requirement - Extension Option 37 10.8 Limitations of Liabilities and Obligations 37 10.9 Sub -Contractor Insurance Requirement 37 11.0 CONSTRUCTION of AGREEMENT 37 ATTACHMENT A Towing Fee Schedule 38, 39 ATTACHMENT B NVIR Fee - Applicable CVC & NCMC Sections 40, 41 ATTACHMENT C STOP Fee - Applicable CVC Sections 42 "TOWING AGREEMENT" This Agreement is made and entered into in the City of National City, State of California, on this 7th day of March, in the year 2006, by and between the City of National City, a municipal corporation, herein after referred to as "City", and Moynahan Towing, herein after referred to as "Contractor." RECITALS • Whereas, the City of National City Police Department requires professional towing and impound services to maintain the safety of the public right-of-way and to seize and secure vehicles in accordance with the laws of the State of California and the Municipal Code, ordinances and regulations of the City of National City; and • Whereas, the City Council, City of National City has adopted policies and procedures for the selection and designation of professional towing contractors to provide towing, impound and storage service upon the request of the National City Police Department. • Whereas, Moynahan Towing has a history of satisfactory service and has participated in a competitive process, and together with another towing contractor has been found to have the best qualifications and capability of providing the highest quality, professional towing services for the City of National City; and Whereas, the City of National City desires to have Contractors perform exclusive towing service within the City of National City and Contractor represents and warrants they are experienced and staffed in a manner such that they are capable and prepared to deliver the services required by the City of National City within the time frames herein provided, all in accordance with the terms and conditions of this Agreement. NOW, THEREFORE, BE IT RESOLVED that the City of National City and Moynahan Towing, Inc. do hereby mutually assent to the terms and conditions as follows: 7 1.0 DEFINITION OF TERMS 1.1 Police Tow shall mean the towing of vehicles at the direction of The National City Police Department where the consent of the owner or operator of the vehicle is not required under existing law. This shall include but is not limited to the towing of motor vehicles that are illegally parked, abandoned, evidence in a criminal investigation, disabled due to collision or mechanical failure or otherwise subject to the authority of the National City Police Department. 1.2 Police Referral Tow shall mean the towing of a vehicle by the National City Police Department, at the request of the vehicle owner or operator. Examples include mechanically disabled vehicles, vehicles disabled as a result of collision, or any other circumstances where the public right-of-way is impacted. 1.3 On -Demand Tow means the towing of a vehicle by a specific Contractor that has been requested by the vehicle owner or operator without police involvement. On -Demand tows may include owners or agents of private property landholders who arrange for vehicle towing service from private property without police involvement. If the police department becomes involved in arranging for tow service the matter is considered a Referral Tow. On -Demand Tows are considered independent services outside the scope of this Agreement. 1.4 Secondary Tow is defined as the impound of a vehicle on orders of police under the authority of California Vehicle Code § 22655 or 22655.5 and the vehicle is brought to the National City Police Department for evidence processing. The secondary tow occurs when the police direct the original Contractor to retrieve and store the vehicle on Contractor's property. 1.5 Collision Tow The owner or operator of a vehicle involved in a non -criminal traffic collision may select a tow company of their own choosing. However, if in the opinion of the investigating police officer an unreasonable delay would result, or unnecessary delay would negatively impact access to the public right-of-way, the investigating officer may consider the matter a "Police Tow" and cause the removal of the vehicle. If the vehicle is towed on orders of the investigating officer, the officer shall complete the Vehicle Impound Control Card citing 22500 CVC as the authority for impound. No special hold or police authorized release is necessary. 1.6 Response Time is defined as the elapsed time between the relaying of the tow service request by a Police Department Employee to the Contractor and the arrival of the specific tow truck type requested to fulfill the tow need on scene. (For example: NCPD Dispatch phones in a request for a low profile truck to tow an evidence hold vehicle to the underground parking lot of NCPD. The response of a NON low profile tow truck which cannot accommodate towing the vehicle into the underground parking lot of the National City Police Department does not qualify as fulfilling the Response Time requirement.) NCPD does not have a group of employees that have a singular function of requesting tow service and would be called a "tow dispatch center." Under normal circumstances the tow company will be called by the NCPD "Dispatch Center." The NCPD "Dispatch Center" is the Police Department's multifunction emergency and non -emergency telephone/radio operators. Under most situations a call for field service will be relayed by the Police dispatchers via telephone to the tow contractors. However, there is a need to allow for direct requests to the tow contractor by any NCPD employee. This may be done by phone or in person to either the tow 8 company's dispatcher or to a tow truck driver that is already on the scene of an NCPD requested tow, wherein there is a need for additional services. (An example of this would include times where a collision occurred and originally an officer makes a request for one two truck. Upon arrival it is determined that another tow truck will be needed and the officer makes the request to the driver on the scene to obtain the services of another truck. The driver calls in the request and the officer advises NCPD dispatch that he/she has made the request and an appropriate CAD entry is made.) 1.7 Contract Year is defined as any one year, 365 day period during the term of this agreement. The first contract year begins on April 1, 2006 and ends on March 31, 2007. The second contract year begins on April 1, 2007 and ends on March 31, 2008. The third contract year begins on April 1, 2008 and ends on March 31, 2009. There are three (3) successive years in this contract. 1.8 Fee Schedule is defined as the fees charged by Contractor to the owner, operator, or agent of the subject vehicle for various services charged by Contractor. The fee schedule is approved and authorized by a majority vote of the City of National City, City Council. The fee schedule includes itemized charges for numerous towing and storage services including but not limited to hook up fees, dolly fees, daily storage fees, after -hour release fees, etc. The Fee Schedule is identified and located at Attachment A of this document. 1.9 Referral Fee is authorized by California Vehicle Code § 12110(b) and is defined as a quarterly fee charged to Contractor by City for the right to provide towing, impound and storage services for City. The Referral Fee is designed to offset actual and reasonable costs incurred by the police department to process and administer towing services. The Referral Fee may be adjusted throughout the term of this Agreement, consistent with Section 3.4, Re -Opener Clause — Referral Fee. 1.10 Negligent Vehicle Impound Release Fee is authorized by the City Council. The Negligent Vehicle Impound Release Fee is defined as a fee charged to the owner, operator or agent of a vehicle that violated certain, specified sections of the California Vehicle Code or National City Municipal Code. The NVIR fee is currently established at fifty-five ($55) dollars. The NVIR fee may be adjusted during the term of the agreement at the discretion of the City Council. This fee is collected by Contractor on behalf of City. 1.11 S.T.O.P Fee The Serious Traffic Offender Program targets the unlicensed driver and provides for a 30-day impound of vehicles. A fee, designed to off set the administrative costs of the program is authorized by the City Council under the authority of California Vehicle Code § 22850.5. The fee is currently set at one hundred fifty ($150) dollars. The STOP fee may be adjusted during the term of this agreement at the discretion of the City Council. This fee is charged to the vehicle owner, operator or agent and is collected by Contractor on behalf of City 1.12 30-Day Impound Fee is defined as a percentage fee paid to City by Contractor, when a Serious Traffic Offender Program vehicle is held for 30-day storage. This fee is not applicable when City releases a vehicle prior to the full 30-day period. Nothing in this section is intended to prevent or preclude the early release of a 30-day hold STOP vehicle if extraordinary circumstances warrant. The Impound Fee will remain at 15% of the amount collected for storage on released vehicles. This is unchanged from the previous contract. 2.0 ADMINISTRATION and MANAGEMENT of AGREEMENT 2.1 Agreement Approval Any Agreement to provide towing services is subject to a substantive city administration review process. Such review process shall include but is not limited to review by the Chief of Police, City Attorney, Human Resources Director, Risk Manager, Finance Director and City Manager. No Agreement for towing service shall become effective until the City Council, City of National City, has reviewed and approved the Agreement. 2.2 Entire Agreement This Agreement supersedes any prior agreements, documents, negotiations and communications, oral or written, and contains the entire Agreement between the parties as to towing and impound services. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. 2.3 Administration of Contract Each party designates the below individuals as the "Contract Administrator" for the party. The Contract Administrator is authorized by the party to represent the party in the administration of this agreement. The Contract Administrator shall monitor the progress and execution of this Agreement. The Contract Administrator may delegate duties and responsibilities to subordinates to insure functional management, supervision and operation of this Agreement. Contract Administrator For The City of National City Dr. Adolfo Gonzales Chief of Police National City Police Department 1200 National City Blvd National City, CA. 91950 (619) 336-4511 Management and Operations Neighborhood Policing Team I Lieutenant National City Police Department 1200 National City Blvd National City, CA 91950 (619) 336-4400 10 Inspection & Operational Supervision Traffic Division Sergeant National City Police Department 1200 National City Blvd National City, CA 91950 (619) 336-4420 Contract Administrator for Moynahan Towing Owner: Tom Moynahan 3200 National City Blvd., National City, CA 91950 (619)477-9362 2.4 Cooperation and Consultation The City and Contractor shall regularly consult during the term of this Agreement in order to achieve the objectives of this Agreement. Throughout the term of this Agreement, the City and Contractor shall permit mutual access to its offices, facilities, files and records relating to the operation and management of this agreement. Upon request of the City the Contractor shall provide copies of files, materials or records relating to the towing, impound, and disposition of any vehicle towed as a result of this agreement. Upon request, the City shall provide the Contractor with any annual report or management report relating to the towing and impound of vehicles towed as a result of this Agreement. Access to police files, records or materials does not include unrelated records, communications between City and the police department, any record which may infringe upon the privacy rights of any individual, or any file, record, or investigation determined by the police department to be privileged or confidential. 2.5 Compliance with Applicable Law The Contractor in the performance of the services to be provided herein, shall comply with all applicable State and Federal statutes and regulations, and all applicable ordinances, rules and regulations of the City of National City, whether now in force or subsequently enacted. 2.6 Licenses, Permits, Etc. Contractor represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The Contractor represents and covenants that the Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this agreement, any license, permit, insurance or approval which is legally required for the Contractor to practice its profession. 2.7 Disputes Except as otherwise provided in this agreement, any dispute concerning a question of fact arising under any term of this Agreement which is not disposed of by this Agreement shall be decided by the Chief of Police who will furnish the decision to the Contractor in writing. Contractor shall proceed diligently with performance of this Agreement pending receipt of the decision of the 11 Chief of Police. The decision of the Chief of Police is final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, arbitrary, capricious or so grossly erroneous as to necessarily imply bad faith. The "Disputes" clause does not and is not intended to preclude consideration of legal questions in connection with decisions provided in the above paragraph. Nothing in this Agreement shall be construed as making final the decision of any administrative official, representative, or council on a question of law. 2.8 Mediation / Arbitration If a dispute arises out of or relates to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego County, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA') before resorting to arbitration. The cost of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego County, California, in accordance with the Commercial Arbitration Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction over the subject matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the cost of its own experts, evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 2.9 Leaal Fees If any party brings a suit or action against the other party arising from any alleged breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of -court settlement, shall be entitled to have and recover from the other party all costs and expenses of suit, including attorneys' fees. For purposes of determining who is to be considered the prevailing party, it is stipulated that attorneys' fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorneys' fees to the prevailing party if other than the City shall, in addition, are limited to the amount of attorneys' fees incurred by the City in its prosecution or defense of the action, irrespective of the actual amount of attorneys' fees incurred by the prevailing party. 2.10 Indemnification and Hold Harmless The Contractor agrees to indemnify, defend, and hold harmless the City of National City, its officers, employees and volunteers, against and from any and all liability, loss, damage, suits, actions, proceedings, costs or attorneys' fees, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, in any way resulting from or arising out of the Contractor's performance of this Agreement. 12 2.11 Business Records (10650 CVC et seq.) Contractor shall maintain and retain data and records of all tow services furnished, including description of vehicles, nature of service, date, time of notification by City, time of tow truck dispatch, time of arrival of tow truck at scene, location of calls, total itemized charges of towing and storage, and the description of all vehicles towed and/or stored at the initiation of the City. If the vehicle is sold at lien sale, data shall be maintained documenting all liens against the vehicle, monies received as a result of the sale, identification of the purchaser, and the amount of monies forwarded to City and state. All such data and original towing and storage records shall be maintained in an accessible location. The Contractor shall make available and permit the City without notice during normal business hours to audit, examine and make excerpts, copies, or transcripts of all data and records with respect to the towing and storage of vehicles initiated by the City. If Contractor employs, assigns or contracts with a third -party vendor to manage or process the DMV required processing regarding lien sale vehicles, Contractor shall make available all relevant records, data or documents regarding lien sales. Contractor shall waive any privacy rights in order to permit City to inspect, review and copy any relevant record in possession of a third -party vendor. 2.12 Prohibition Against Use of Privileged Information Contractor shall not use for personal gain, transmit or disclose any privileged or confidential information that is acquired from or obtained as a result of information gathered from the management or operation of this agreement. For the purpose of this section, "Privileged or Confidential Information" shall include City or police department records unrelated to towing and storage of vehicles, DMV information, or Criminal History information. 2.13 Independent Contractor Contractor shall for all purposes arising out of this Agreement, be an independent Contractor. Contractor and employees of Contractor shall not be deemed employees or agents of City. It is expressly understood and agreed that the Contractor and its employees shall in no event, as a result of this Agreement, be entitled to any benefit to which City employees are entitled, including but not limited to overtime, retirement benefits, workers' compensation benefits, injury leave, medical leave, unemployment or any other leave benefits. Neither the City nor its officers, agents or employees shall have any control over the conduct of the Contractor or any of the Contractor's employees except as herein set forth, and the Contractor expressly agrees not to represent that the Contractor or the Contractor's agents, servants, or employees are in any manner agents, servants, and employees of the City, it being understood that the Contractor, its agents, servants, and employees are as to the City wholly independent contractors and that the Contractor's obligations to the City are solely such as are prescribed by this Agreement. 2.14 Assignment This Agreement contemplates the personal services of the Contractor and the Contractor's employees, and it is recognized by the parties that a substantial inducement to the City for entering into this Agreement was, and is, the professional reputation and competence of the Contractor and its employees. Neither this Agreement nor any interest herein may be assigned by 13 the Contractor without the prior written consent of the City. Nothing herein contained is intended to prevent the Contractor from employing or hiring as many employees, or subcontractors, as the Contractor may deem necessary for the proper and efficient performance of this Agreement. All agreements by Contractor with its subcontractors(s) shall require the subcontractor to adhere to the applicable terms of this Agreement. 2.15 Workers' Compensation The 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 or Federal acts or laws applicable; and shall indemnify, defend and hold harmless the City and its officers, employees and volunteers from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorneys' fees and costs presented, brought or recovered against the City or its officers, employees, or volunteers, 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 the Contractor under this Agreement. 2.16 Non -Discrimination Provision The Contractor will not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The Contractor will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection "for training, including apprenticeship. The Contractor agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the City setting forth the provisions of this non-discrimination clause. 2.17 Conflict of Interest and Political Reform Act Obligations During the term of this Agreement, the Contractor shall not perform services of any kind for any person or entity whose interest's conflict in any way with those of the City of National City. The Contractor also agrees not to specify any product, treatment, process or material for the project in which the Contractor has a material financial interest, either direct or indirect, without first notifying the City of that fact. The Contractor shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The Contractor shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the City in which the Contractor has a direct or indirect financial interest as defined in Government Code Section 87103. The Contractor represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the City. Contractor further warrants and represents that Contractor will immediately advise the City Attorney if Contractor learns of an economic interest of Contractor's that may result in a conflict of interest for the purposes of the Political Reform Act, and regulations promulgated thereunder. 14 The Contractor shall be strictly liable to the City for all damages, costs or expenses the City may suffer by virtue of any violation of this section by the Contractor. 2.18 Termination of Agreement This Agreement may be terminated immediately by the City for cause in the event of a material breach of this Agreement, misrepresentation by the Contractor in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the City. Termination for cause shall be effected by delivery of written Notice of Termination to the Contractor as provided for in Section 2.21. In the event of termination, all finished or unfinished memoranda, reports, plans, specifications and other documents prepared by the Contractor, whether paper or electronic, shall immediately become the property of and be delivered to the City, and the Contractor shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the City by the Contractor's breach, if any. The City further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the Contractor; (2) a reorganization of the Contractor for the benefit of creditors; or (3) a business reorganization or change in business status of the Contractor. 2.19 Charges and Fees Contractor is authorized and responsible for the collection of all applicable towing and storage charges, and any fee authorized or required by City to defray costs to City for the management and operation of this agreement, prior to releasing a vehicle. 2.20 Inspection City shall require no less than an annual inspection of Contractor to insure conformance and compliance with the provisions of the California Vehicle Code and this agreement. Responsibility for said inspection rests with the National City Police Department Traffic Division Sergeant and/or designee. Said inspections shall be conducted during normal business hours. Upon completion of inspection the Traffic Division Sergeant shall submit a written report to the Contract Administrators. 2.21 Notice of Termination All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered of certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days, (ten (10) days if the address is outside the State of 15 California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telex, telecopy, facsimile or fax, when sent. Any notices, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To the CITY: Contract Administrator For The City of National City Dr. Adolfo Gonzales Chief of Police National City Police Department 1200 National City Blvd National City, CA. 91950 (619) 336-4511 To the CONTRACTOR: Moynahan Towing Tom Moynahan 3200 National City Blvd., National City, CA 91950 (619)477-9362 3.0 TERM OF AGREEMENT, OPTIONS, and RE -OPENERS 3.1 Duration The duration of this Agreement shall be three (3) successive years with an option for extension. 3.2 Relevant Dates This Agreement begins at 0000 hours on April 1, 2006 and terminates at 2400 hours on March 31, 2009. 3.3 Option to Renew The City of National City reserves the option to renew the contract for up to four (4) six (6) month periods under the terms and conditions herein stated beginning on the anniversary of the commencement of service. The renewal is contingent on a mutual agreement between the City and the Contractor with such agreement to be confirmed by the Contract Administrator within sixty (60) days prior to the expiration of the contract period. The City of National City or the Contractor may decline to confirm the renewal of the contract for any reason whatsoever, which shall render the renewal option null and void. The City's initial letter informing the Contractor of the City's exercise of its option to renew the contract does not constitute an award of the option period. Any option acceptance must be confirmed by the City of National City in writing, before it becomes valid. 16 The City will not grant an option, if the Contractor requests an increase which exceeds the average percentage variant for the previous twelve (12) months in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the National City area as published by the Bureau of Labor Statistics, or five percent (5%) whichever is less. If a price increase is requested, the Contractor must provide detailed supporting documentation to justify the requested increase. The City will evaluate the requested increase, and the City reserves the right to accept or reject. 3.4 Re -Opener Clause - Referral Fee The purpose of the Referral Fee Re -Opener Clause is to verify data to demonstrate the appropriateness of the Referral Fee. After the first twelve consecutive month period of this agreement, City shall review all tow data and develop accurate records to determine the actual number of Police and Referral Tows in the preceding twelve-month period. The Referral Fees may be adjusted up or down based upon the number of vehicles referred to the Contractor as determined by City. If appropriate, City shall consider implementing a per vehicle referral fee to offset costs incurred by the police department in processing and administering towing services. City shall also compare and consider referral fees charged by other law enforcement jurisdictions in San Diego County for towing services. 3.5 Re -Opener Clause - Fee Schedule The purpose of the Fee Schedule Re -Opener Clause is to provide the Contractor the ability to adjust the fee schedule consistent with the community standard for police towing in San Diego County. After the first twelve consecutive month period of this contract, the Contractor may submit a request for increase in fee schedule to the Chief of Police. The request shall include a comparison of relevant fees in each law enforcement jurisdiction in San Diego County. City shall assist and consult with Contractor to provide Contractor with accurate data. The Chief of Police shall make appropriate comments, recommendations and submit the material for City Council consideration. 3.6 Re -Opener Clause - 30-Day Impound Fee (STOP) The purpose of the Re -Opener Clause, 30-Day Impound Fee is to verify data to demonstrate the appropriateness of the 30-Day Impound Fee. After the first twelve consecutive month period of this Agreement, City shall review all tow data and develop accurate records to determine the actual number of STOP vehicles held for a 30 day period versus the number of STOP vehicles not held for the 30 day period, in the preceding twelve month period. The percentage 30-day impound fee may be adjusted up or down based upon the data. 4.0 RESPONSE TIME, EXCEPTIONS and PENALTY ASSESSMENT 4.1 Response Time Response time is defined as the elapsed time between the relaying of the tow service request by a Police Department Employee to the Contractor and the arrival of the specific tow truck type requested to fulfill the tow need on scene. (For example: NCPD Dispatch phones in a request for a low profile truck to tow an evidence hold vehicle to the underground parking lot of NCPD. The response of a NON low profile tow truck which cannot accommodate towing the vehicle 17 into the underground parking lot of NCPD does not qualify as fulfilling the Response Time requirement.) The Response Time for Towing Service shall not exceed twenty (20) minutes for tows inside the jurisdictional limits of City. Due to the limited number of out of jurisdiction towing service requests, response times shall be evaluated on an individual basis for towing service requests outside of the jurisdictional limits of City. Complaints or irregularities involving out of jurisdiction towing requests shall be managed between the Contract Administrators. Response Time is defined as the elapsed time between the relaying of the tow service request to the Contractor and the arrival of the tow truck on scene. The Contractor is expected to dispatch any available tow truck immediately upon receipt of a towing request. The Contractor is expected to notify the National City Police Communications Center when the response time requirement cannot be met. The Police Communications Dispatcher or the officer at the scene will have the discretion to cancel the tow if the response time cannot or is not met and re -dispatch to a Secondary tow Contractor, at no cost to City. "Secondary tow Contractor" refers to the next tow company in rotation. 4.2 Response Time Computation Response time is computed from the time the police dispatcher enters the request for a tow into the dispatch CAD system and the Contractor arrives on scene. The on -scene investigating officer shall notify dispatch of the tow truck arrival. The police department computer aided dispatch system shall be the final resolution of any actual time dispute regarding response times. Any failure to record relevant times by the on -duty dispatcher shall not be considered in any penalty assessment. 4.3 Response Time - Penalty Failure to arrive at the requested location within the prescribed response time may result in cancellation of the service request. The alternate Contractor may be notified. 4.4 Response Time - Penalty Assessment Contractor shall pay a five hundred dollar ($500.00) penalty, if more than five percent (5%) of the tows in any calendar month period exceed the maximum response time requirement per any single request by the City for emergency towing services. Failure to meet Response Time requirements may result in termination of this contract. 18 .5.0 ON -CALL CONTRACTOR and CONTRACTOR ROTATION SCHEDULE 5.1 Contractor On -Call & Rotation The contractor on -call rotation shall run weekly, beginning at 0000 hours on Sunday, through the following Saturday. The Traffic Division Sergeant will do the selection for the on call rotation at the beginning of each contract year. The Traffic Division Sergeant will select the contractor rotation by an impartial means agreeable to contractors involved. Should all contractors not meet an agreement as to means the Traffic Division Sergeant will make the selection, the means will be directed by the Chief of Police and the Chiefs decision will be final. Any contractor selected as the first in the rotation schedule at the beginning of a contract year will begin the first day of the contract year (whatever day of the week the contract year begins) and end that rotation on the following Sunday as to establish the Sunday through Saturday rotation cycle. It is understood that the number of contractors selected divided into the number of weeks per year may not result in each contractor having the same number of overall tow days per year. In the event this Agreement is extended pursuant to section 3.3 Option for Renewal, the schedule will continue to rotate as reflected. 6.0 GENERAL DUTIES, REQUIREMENTS and OBLIGATIONS 6.1 Business License Contractor shall at all times during the term of this Agreement retain a valid City Business License in compliance with National City Municipal Code § 6.04 Et seq. Contractor businesses and storage lots located within the jurisdictional limits of the City of National City must conform to all City of National City building ordinances, zoning regulations, land use requirements and must have the approval of the City Planning Department. Contractor businesses and storage lots located outside the jurisdictional limits of the City of National City must conform to all City (if located within an incorporated City) or County (if located within an unincorporated County area) building ordinances, zoning regulations, land use requirements within the jurisdiction of location. 6.2 Contractor Availability - Response to Service Requests Contractor shall be available to promptly respond twenty-four (24) hours a day, seven (7) days a week including all holidays, consistent with the On -Call and Rotation Schedule, for all requests initiated by City for towing services. Upon award of contract Tow Contractors shall operate a dispatching system. The Tow dispatching system shall be sufficiently staffed and equipped to accept all telephone calls, without delay, twenty-four (24) hours a day, seven (7) days a week. Delay is defined as the 19 City or the public receiving no answer after six (6) rings or busy signal to their telephone call. Tow Contractors using paging systems are required to respond to a page within five (5) minutes of the initial page by the City. The City does not currently have plans for adding automated tow dispatching to the existing NCPD dispatch system. Therefore the City is not requiring any contractor to purchase equipment to be used to integrate into an automated tow dispatching system. It will be up to the contractor to ensure they are able to meet the response time requirements of the contract by whatever means they deem appropriate. Since there are no current plans to add automated tow dispatching to the existing NCPD dispatch system there are no minimum requirements established for such a system upgrade at this time. 6.3 Contractor Towing Forfeited Vehicles The Contractor shall tow all forfeited vehicles, as ordered by the City. The Contractor shall not drive the forfeited vehicles except to move them within the storage facility. Use of vehicles for personal use is strictly prohibited. In the event it is found that a towed vehicle is subject to forfeiture the City shall arrange for the vehicle to be picked up from the Contractor's storage facility and the Contractor shall invoice the National City Police Department, Serious Traffic Offenders Team (STOP) for all towing and storage fees. 6.4 Contractor Availability - Vehicle Release Contractor shall be available to release vehicles to their owners, agents or authorized representatives, twenty-four (24) hours a day, seven (7) days a week including all holidays. 6.5 Business Office Contractor shall maintain a functional business office within the location of the yard used to store police initiated tows. 6.6 Business Office Hours Contractor shall adequately staff their business office in order to remain open and available to meet the public during the normal business office hours. The business office of the Contractor shall be located within the storage yard for which a towed vehicle is located and be open to serve the public and the City from 0800 to 1800 hours, Monday through Friday, except for City observed holidays. City observed holidays are: New Years Day, Dr. Martin Luther King Jr.'s Birthday, Washington's Birthday, Caesar Chavez Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, and Christmas Day. 20 6.7 Contractor's Employees All drivers must maintain a professional appearance. Staff shall work in a neat and clean uniform. The Contractor shall furnish staff with a shirt or some other type of outerwear bearing the company name and logo. Appropriate clothing will be worn at all times including by employees that are being trained. All employees will conduct themselves in a professional manner when interacting with the public or City employees. Within ten (10) days of provisional award the Contractor(s) shall provide the National City Police Department Traffic Division Sergeant with the names of all employees that will be assigned to the contract. The Contractor will notify National City Police Department Traffic Division Sergeant whenever a new employee is hired that is assigned to perform duties under the contract or may have access to vehicles impounded pursuant to police request. Contractor shall ensure that all tow truck drivers responding to calls initiated by the City are properly licensed, qualified and competent employees. The Contractor shall ensure all tow truck drivers are 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 ALL vehicles. All tow truck drivers shall possess the proper class license and certificates for towing vehicles, along with a class 'A' endorsement to allow operation of special vehicle configurations and/or special cargos. Contractor's employees shall be qualified to perform all work undertaken by or assigned to them. In the event a driver or the equipment is inadequate and the Contractor is unable to service the request, a charge for service or labor will not be permitted. 6.8 Signs In compliance with California Civil Code § 3070 (E), Contractor shall display inside the business office, in plain view at the cashier's station, a sign. Said sign shall not be less than 17 by 22 inches in size, with lettering not less than one inch in height, disclosing all storage fees and charges in force, including the maximum daily storage rate. Posting of the Fee Schedule (Attachment A) in the appropriate size and lettering complies with CCC § 3070 (E). Additionally, Contractor is required by California Vehicle Code § 22850.3 (b) to display in a conspicuous place a notice to the effect that a vehicle impounded at the direction of the Police Department may only be released upon proof of current registration. Said notice must include the name and telephone number of the local police agency that caused the vehicle to be stored. 6.9 Method of Payment - Towing or Storage Charges (22651.1 CVC) At a minimum, Contractor shall accept a valid bank credit card or cash for payment of towing and storage by the registered owner, legal owner, or the owner's agent claiming the vehicle. Pursuant to California Civil Code § 1748.1, Contractor shall not impose a surcharge on a cardholder who elects to use a credit card in lieu of cash for payment of any fees pursuant to this 21 Agreement. In addition, Contractor shall have sufficient funds on the premises to accommodate and make change in a reasonable monetary transaction. 6.10 Storage of Vehicles; City, Seized, Evidentiary Contractor shall immediately provide written notice to the National City Police Department Traffic Unit whenever a city vehicle, seized vehicle or one towed for evidentiary purposes is stored in excess of forty-eight (48) hours. Failure to provide the required written notification to the City may result in forfeiture of Contractor's right to storage fees. The Contractor shall provide invoices to the National City Police Department Operations Assistant for the towing of each City owned and each seized vehicle, and towing and storage of each vehicle for evidentiary purposes. The invoices shall include the description of the vehicle, the date, time, origin, and disposition of the towed vehicle, name and identification number of City employee authorizing the tow and/or storage, the mileage starting and finishing at destination, and an itemized cost of services provided (mileage, number of storage days) commensurate with the attached rate schedule. Invoices shall be delivered to the National City Police Department Operations Assistant no later than the fifteenth (15th) of the month following services rendered. City shall make payment for services rendered on a monthly basis from month previous. 6.11 Removal from Private Property Pursuant to California Vehicle Code § 22658(h) a towing company may impose a charge of not more than one-half of the regular towing charge for the towing of a vehicle at the request of the owner of private property or that owner's agent pursuant to this section if the owner of the vehicle or the owner's agent returns to the vehicle before it is removed from private property. The regular towing charge may only be imposed after the vehicle has been removed from the property and is in transit. Pursuant to sub -section (i) (2), if a vehicle is released within 24 hours from the time the vehicle is brought into the storage facility, regardless of the calendar date, the storage charge shall be for only one day. Not more than one day's storage charge may be required for any vehicle released the same day that it is stored. 6.12 Notice to City - Private Property Impounds In addition to the requirements set forth in California Vehicle Code § 22658 Contractor agrees to notify the National City Police Department of all vehicle impounds from private property, within the jurisdictional limits of City, that result in storage of the vehicle. Notice shall include but not be limited to a complete description of the vehicle including the vehicle identification number, location of impound and name of property owner or agent who authorized the impound. Notice shall occur within one hour of taking possession of the vehicle. Generally, private property impounds are considered On -Demand Tows. 6.13 Gratuities (12110 CVC) Contractor or Contractor's employees shall not offer or provide City, and no City employee shall accept any direct or indirect commission, reduced fee, gift, recreation, favors, seasonal gratuity, 22 or any compensation whatsoever from Contractor. No City employee shall offer or provide Contractor with any gift, recreation, favor, seasonal gratuity, or any compensation whatsoever. No City employee is permitted to purchase a lien sold vehicle from Contractor that resulted from a police initiated tow or referral tow. City employees shall not purchase any vehicle or vehicle part from Contractor for a reduced fee or a fee below the prevailing rate as determined by industry standards. The intent of this section is to avoid the mere appearance of impropriety involving the contractual relationship. Contractor or Contractor's employees are prohibited from accepting any money or anything of value from a repair shop for delivery or the arranging of a delivery of a vehicle for the purpose of storage or repair. Nothing in this section is intended to preclude Contractor from charging a repair shop appropriate towing fees pursuant to the Fee Schedule. No benefit provided City by Contractor, or benefit provided Contractor by City, as defined in the terms and conditions of this Agreement that resulted from the process of negotiations, shall be considered a gift or gratuity within the meaning of this section. 6.14 Tow Truck Driver - On -Scene Duties Upon arriving on -scene of a police initiated tow, the Contractor's employee shall report to the investigating Peace Officer in charge. The officer -in -charge shall make every reasonable effort to inform Contractor's employee of any unusual circumstance or hazardous condition. Contractor's employee shall make every reasonable effort to inform the officer -in -charge of any unusual circumstance or hazardous condition undetected by the officer -in -charge. The officer -in -charge may request additional towing services from the Contractor's employee and the officer -in -charge shall have the authority to waive the Response Time requirements for additional services based on the on -scene needs. Contractor's employee shall make every reasonable effort to comply with instructions or directions provided by the officer -in -charge. Contractor's employee may make any emergency alterations reasonably required to safely move and/or impound vehicles. Contractor shall be responsible for removing and appropriately disposing of collision related debris from the public right-of-way to ensure public safety. Contractor shall also remove or render inert any liquid debris that may reasonably be considered a safety hazard to the public - right -of -way. If the removal of any type of debris or hazardous material is beyond the capability of Contractor, Contractor's employee shall inform the officer -in -charge so accommodations can be made. 6.15 Access to Stored Vehicles During regular business hours, Contractor shall make vehicles stored at the request of City available to that vehicle's registered owner, a person who can be verified to be the registered owner's agent, insurance agents, insurance adjusters, or representatives of automotive repair businesses for the purpose or estimating or appraising damages. 6.16 Access to Stored Vehicles — Removal of Private Property Pursuant to California Vehicle Code § 22851(b); no lien shall attach to any personal property in or on the vehicle. The personal property in or on the vehicle shall be given to the current 23 registered owner or the owner's authorized agent upon demand. The lien holder shall not be responsible for personal property after any vehicle has been disposed of pursuant to Division 11, Chapter 10 of the California Vehicle Code. Pursuant to California Civil Code § 3068.1, the lien is deemed to arise on the date of possession of the vehicle. Possession is deemed to arise when the vehicle is removed and is in transit. 6.17 Access to Evidentiary Vehicles Vehicles impounded by City for investigative purposes pursuant to California Vehicle Code Sections 22655 or 22655.5 shall be held in maximally secured, nonpublic areas of Contractor's property, until the vehicle is released by order of City or in conformance with section 8.3 of this Agreement. No person other than a Police Officer, Reserve Police Officer, Field Evidence Technician, Property & Evidence Unit employee or Crime Scene Specialist employed by City shall remove any property or other contents from evidentiary vehicles. Property removed from such vehicles shall be recorded as removed on the content inventory and the content inventory dated and signed by the Police Officer, Reserve Police Officer, Field Evidence Technician, Property & Evidence Unit employee or Crime Scene Specialist removing the property and by a representative of the Contractor. 6.18 Invoices All invoices for towing and impounds pursuant to this Agreement shall clearly and individually itemize each and every specific charge or fee type. Daily storage fees shall be itemized on a per day basis, for example: 10 days storage @ $ per day. All itemized City fees of all types shall be documented on the invoice. The customer shall be provided no less than one copy of the invoice, after all fees have been paid and the invoice marked "Paid." 6.19 Vehicle Impound Control Card (PD form 250) A Vehicle Impound Control Card (PD Form 250) shall be completed for all police tows. A Vehicle Impound Control Card shall also be completed for all collision tows when the police order or direct a tow for a disabled vehicle. The impounding officer shall obtain a case number and enter the case number on the control card before giving the tow truck driver a copy of the control card. Contractor shall not be liable for uncollected City or administrative fees when the Vehicle Impound Control Card (PD Form 250) is not properly completed by the impounding officer. PD Form 250 shall contain the lawful authority to impound pursuant to the California Vehicle Code. However, the impounding officer may elect to use the words "Admin Fee Applies" listed in the OTHER section of the form. 6.20 Proceeds from Lien sale In conformance with California Civil Code § 3073 and California Vehicle Code § 22850.5 the proceeds from the lien sale of any vehicle impounded pursuant to the Negligent Vehicle 24 Impound Release (NVIR) program or the Serious Traffic Offender Program (STOP) shall be distributed in the following order: 1. Any and all costs necessary to discharge the lien, including but not limited to impound and storage fees, and the costs of processing the vehicle for lien sale shall be paid to the (lien holder) Contractor. 2. Any and all City administrative fees, including individual fees or any partial fees associated with the STOP and/or NVIR programs, shall be paid to City. Any partial fees recovered by City, resulting from the lien sale, shall first be attributed to the STOP program. 3. The balance, if any, shall be forwarded to the California Department of Motor Vehicles for deposit in the Motor Vehicle Account in the State Transportation Fund. 7.0 FEES 7.1 Fee Schedule Attachment A to this Agreement provides a complete schedule of all charges and fees the Contractor will be authorized to collect from consumers for towing, impound, and storage services rendered on behalf of City. The Attachment A rate schedule shall remain in place unless and until amended by the City Council, City of National City pursuant to section 3.5 Re -Opener - Fee Schedule, of this agreement. The schedule of rates charged by the operator shall be available in the tow truck, and shall be presented upon demand to person(s) for whom the tow services were provided, or his/her agent, or any representative of the City at the scene. In the event of a significant or substantial increase in operating expenses, which was not caused by any action of the Towing Contractor, a temporary surcharge may be added in the current rates for any and all of the services provided pursuant to this agreement. The Towing Contractor shall petition the City for the increase in towing and storage rates and provide supporting documentation. Any surcharge is subject to approval by the City. Rate changes may be sought at the will of the City. This process may be instituted by routine cost of service evaluation by the City or by request by the contractor. It is understood that there may be a need for rate changes during the term of the contract. Therefore, during the term of the contract, should any contractor make a request for rate changes, the contract Administrator will forward the request appropriately for consideration. No rate adjustments will be considered without City Council approval. Any cost -of -living increase to the tow rates shall be calculated from the Consumer Price Index (CPI) as published for the first quarter of each calendar year. In any year in which this index is not available, the City shall ascertain and utilize some similar criterion and establish, retroactively, a figure for the computation. Any increase in the City Standard Rates will trigger a proportional increase in the City's Referral Fee beginning of July 1st of each contract year. 25 7.2 Secondary Tow Fees Secondary towing fees are the responsibility of the vehicle owner, operator or agent. If it is determined that City is liable for the secondary tow fees, Contractor shall charge City 50% of the Basic Tow Fee for Secondary Tows, if applicable. No storage fees shall accrue while the subject vehicle is in the actual possession of the National City Police Department. Police personnel shall not release a vehicle from the National City Police Department until all Contractor fees have been paid to Contractor by the vehicle owner, operator or agent. In the event a vehicle is released from the police department and Contractor fees were not paid, City shall be liable for the full fee. 7.3 City Vehicle Tow Fees Contractor agrees not to charge City a fee for the towing of marked or unmarked City police vehicles whether the tow resulted from mechanical breakdown or collision within the jurisdictional limits of National City. Contractor shall charge City 50% of the Basic Tow Fee for the towing of all other City vehicles whether the tow resulted from mechanical breakdown or collision within the jurisdictional limits of National City. Fees for all City vehicle tows including police vehicles, which occur outside the jurisdictional limits of National City, shall be resolved between the Contract Administrators but shall not exceed 50% of the basic tow fee. 7.4 Fees - Police Department Errors and Omissions When any vehicle has been ordered towed by City and it is established that the tow was in error through a mistake of fact, Contractor shall release the vehicle to its owner, operator or agent at no cost. Contractor shall bill City at no more than 50% of the basic tow fee. If an error by City results in a vehicle being stored longer than it can reasonably be established that it should have been, Contractor shall release the vehicle and bill the owner, operator or agent only those storage charges that would have accrued if no error had occurred. Contractor shall bill City storage fees at no more than $2.50 per day for every day beyond the owner, operator or agent's responsibility. If the error in towing or storage is discovered after the vehicle owner, operator or agent recovers the vehicle and all fees have been paid to Contractor, the owner, operator, or agent may be referred to the City Clerk, City of National City to file a Claim for Damages against City. 7.5 Referral Fee Contractor shall make quarterly Referral Fee payments to City for the right to provide towing and storage service to City. The minimum Referral Fee payment amount per Contractor shall be five thousand five hundred sixty five dollars ($5,565.) per quarter. The Referral Fee shall be payable for a period of three (3) years subject to adjustments as defined in Section 3.4 - Re - Opener Clause - Referral Fee. 26 7.6 Referral Fee - Due Date The Referral Fee payment shall be due and payable no later than the fifteenth (15th) day of the calendar month following the end of each quarter, pursuant to the following schedule: First Contract Year; Quarter End Dates 1st Quarter — June 30, 2006 2nd Quarter — September 30, 2006 3rd Quarter — December 31, 2006 4th Quarter — March 31, 2007 Second Contract Year; Quarter End Dates 1st Quarter - June 30, 2007 2"d Quarter September 30, 2007 3rd Quarter December 31, 2007 4th Quarter - March 31, 2008 Third Contract Year; Quarter End Dates 1st Quarter - June 30, 2008 2nd Quarter - September 30, 2008 3rd Quarter - December 31, 2008 4th Quarter - March 31, 2009 7.7 Referral Fee - Late Fee Any amount owed to the City more than fifteen (15) calendar days beyond the due date, shall be considered delinquent and will be in breach of contract. Failure to pay any amount owed to the City may result in the Contractor being suspended from the contract until such amount is paid. Interest will be charged on unpaid amounts at the maximum rate permitted by law. Partial payments will not be accepted. 7.8 Referral Fee - Payments The Referral Fee is payable to "City of National City." Payments shall be directed as follows: Operations Assistant National City Police Department 1200 National City Blvd. National City, CA 91950 27 Upon receipt and no later than five days from receipt, the Operations Assistant shall record and account for the Referral Fee payment consistent with the terms of this agreement and forward the payment to the City Finance Department for deposit in Revenue Account Number 001-11000- 3558. 7.9 Negligent Vehicle Impound Release (NVIR) Fee The Negligent Vehicle Impound Release Fee shall be an amount established by City. Said fee is currently fifty-five ($55) dollars. The NVIR fee is recognized as a necessary and effective method of generating those revenues necessary to off set program costs, services and facilities. The NVIR fee applies only to vehicles released by Contractor for violating certain sections of the California Vehicle Code (CVC) and/or the National City Municipal Code (NCMC). See Attachment B for a list of applicable sections. 7.10 NVIR Fee Contractor shall collect the NVIR fee of fifty-five ($55.00) dollars per vehicle, upon the release of any vehicle impounded pursuant to the above listed California Vehicle Code sections. Contractor shall remit the collected fees to City pursuant to the below listed payment schedule. The collected NVIR fees shall be properly identified, and itemized. 7.11 NVIR Fee - Payment Due Date NV1R fees collected by Contractor shall be due and payable to City no later than the fifth (5th) day of each month and the twentieth (20th) day of each month. Payments due on the fifth (5th) day of each month shall include and account for all vehicles released by Contractor between the sixteenth (16th) day of the month, and the last day of the month, (inclusive). Payments due on the twentieth (20th) day of the month shall include and account for all vehicles released by Contractor between the first (1`t) day of the month and the fifteenth (15th) day of the month, (inclusive). 7.12 NVIR Fee -Payments The NVIR Fee is payable to "City of National City." Payment shall be directed as follows: Operations Assistant National City Police Department 1200 National City Blvd. National City, CA 91950 Upon receipt and no later than five days from receipt, the Operations Assistant shall record and account for the NVIR Fee payment, consistent with the terms of this agreement and forward the payment to the City Finance Department for deposit in Revenue Account Number 001-04049- 3551. 28 7.13 NVIR Fee Payment - Late Fee Any amount owed to the City more than fifteen (15) calendar days beyond the due date, shall be considered delinquent and will be in breach of contract. Failure to pay any amount owed to the City may result in the Contractor being suspended from the contract until such amount is paid. Interest will be charged on unpaid amounts at the maximum rate permitted by law. Partial payments will not be accepted. 7.14 Serious Traffic Offender Program (STOP) Impound Fee The Serious Traffic Offender Program Fee shall be an amount established by City. Said fee is currently one hundred fifly ($150) dollars. The STOP fee is recognized as a necessary and effective method of generating revenues necessary to off set program costs, services and facilities. Vehicles impounded by City pursuant to the STOP program shall be released by City, upon expiration of a 30-day hold and shall only be released by City upon a showing of proof that the owner, operator or agent has a valid driver's license. Contractor shall collect STOP fees prior to the actual release of the vehicle. Contractor shall remit the collected STOP fees to City pursuant to the below listed payment schedule. The STOP fees shall be properly identified and itemized. The STOP fee applies only to vehicles impounded pursuant to certain California Vehicle Code Sections. See Attachment C for a list of applicable sections. 7.15 STOP Impound Fees - Due Date STOP program fees collected by Contractor shall be due and payable to City no later than the fifth (5 ) day of each month and the twentieth (201h) day of each month. Payments due on the fifth (5th) day of each month shall include and account for all vehicles released by Contractor between the sixteenth (16th) day of the month, and the last day of the month, (inclusive). Payments due on the twentieth (200') day of the month shall include and account for all vehicles released by Contractor between the first (14) day of the month and the fifteenth (15th) day of the month, (inclusive). 7.16 STOP Fee -Payment The STOP program fee is payable to "City of National City." Payment shall be directed as follows: Operations Assistant National City Police Department 1200 National City Blvd. National City, CA 91950 Upon receipt and no later than five days from receipt, the Operations Assistant shall record and account for the STOP fees consistent with the terms of this agreement. The STOP fee of one - hundred fifty ($150) dollars per vehicle shall be divided and deposited with the City Finance Department as follows: 29 Amount Revenue Account Number $125.00 191-11000-3550 $ 25.00 001-11000-3550 7.17 STOP - Late Fee Any amount owed to the City more than fifteen (15) calendar days beyond the due date, shall be considered delinquent and will be in breach of contract. Failure to pay any amount owed to the City may result in the Contractor being suspended from the contract until such amount is paid. Interest will be charged on unpaid amounts at the maximum rate permitted by law. Partial payments will not be accepted. 7.18 STOP; 30-Day Vehicle Impound Fees Pursuant to the Serious Traffic Offender Program certain vehicles are impounded and held in impound for thirty (30) days. Said vehicles accrue Contractor's daily storage fees according to the attached Fee Schedule. In addition to any other administrative fees herein identified, Contractor shall pay CITY, fifteen (15%) percent of the total storage fee, when the vehicle is held for 30 days and subsequently released to the vehicle owner, operator or agent. Any revenue recovered as a result of this section shall be used to defray and off set police costs associated with the operation of the STOP program. This fifteen (15%) percent fee shall not apply to STOP vehicles not held for the 30-day period. This fee shall apply to the lien sale process, consistent with section 6.17 of this Agreement. 7.19 30-Day Impound Fees - Due Date and Payment Revenue received as a result of section 7.18, shall be distinguished from any other administrative fee or revenue and shall be due and payable consistent with sections 7.15 through 7.17. Any proceeds received from the STOP 30-Day Vehicle Impound shall be deposited into Revenue Account Number 191-110003550. 8.0 VEHICLE RELEASE 8.1 General Rule - Vehicle Release As a general rule, Contractor shall be responsible for the release of all vehicles in Contractor's possession as a result of police initiated or referral tows. 8.2 Exceptions to General Rule Vehicles impounded pursuant to the following California Vehicle Code Sections shall not be released by Contractor. Contractor shall refer the vehicle owner, operator or agent to the police department to obtain a release: 1. 14602.6 - S.T.O.P. Program 30 2. 22651 (i) - Five or more Parking Citations 3. 22655 - Hit & Run Investigation 4. 22655.5 - Evidentiary Reasons 8.3 Hit & Run Investigation - Mandatory Release 22655(b) CVC Any vehicle impounded for hit & run investigation (20002 thru 20006 CVC), pursuant to the authority of California Vehicle Code § 22655, shall be released within 48 hours after removal from highway or private property. When determining the 48-hour period, weekends, and holidays shall not be included. Any vehicle not released by City within the maximum 48-hour period, shall be released by Contractor upon demand of the vehicle owner, operator or agent upon the expiration of the 48-hour period, regardless of City hold status. 8.4 Ouestions, Problems, or Controversy Associated with Vehicle Release In the event Contractor experiences problems, questions or controversy associated with a customer demanding the release of a police initiated or referral tow, Contractor shall notify the police department. Additionally, if Contractor discovers a questionable DMV document, an officer shall be dispatched to resolve the problem. 8.5 Expert Training - DMV Document Identification During the term of this Agreement and at Contractor's request, City shall provide Contractor, Contractor's employees, and new employees with training in the identification and recognition of all relevant California Department of Motor Vehicles documents including but not limited to California Drivers License and California Vehicle Registration documents. A recognized expert employed by the California Department of Motor Vehicles shall conduct training. Training shall include but not be limited to recognition and identification of counterfeit, altered, or forged California Driver's License and California Registration and Title Certificates. The Contract Administrators shall coordinate date, time and location of training. 9.0 MINIMUM TRUCK EQUIMENT and STORAGE LOT REQUIREMENTS During the term of this Agreement, Contractor shall meet the following minimum tow truck equipment requirements and storage lot requirements: 9.1 Minimum Tow Truck Requirements During the term of this Agreement, Contractor shall have available no less than three tow rigs of at least one -ton capacity Each tow rig shall have dual rear wheels. Each vehicle used for towing police impounds shall have a manufacturer's gross vehicle weight rating (GVWR) of not less than 14,500 pounds. 31 In addition, Contractor shall have available one tow rig, commonly known as a "Sub -Garage Tow Vehicle," capable of entering and removing impounded vehicles from the underground parking garage of the National City Police Department. The sub -garage tow vehicle is a limited use vehicle and does not require dual wheels or a GVWR of 14,500 pounds. 9.2 Minimum Tow Truck Equipment Requirements Each tow truck responding to requests for police initiated towing and impound services shall be equipped with radio communications equipment capable of effecting two-way radio communications between the tow truck operator and Contractor's dispatching operation. Citizen Band radios shall not be used to meet this requirement. Each tow truck shall have a maximum 8,000 pound capacity winch that is power driven by power takeoff from transmission, in both directions, and equipped with safety dogs or an adequate braking system. Winches must be fitted with a minimum of 100 feet of cable for recovery tasks. Roll back car carriers must be fitted with a minimum of 50 feet of cable. All cable (wire rope) must be maintained in good condition. Only wire rope with swaged ends, wedge locks or braided ends, with metal sleeves in the loops shall be approved for use under the terms of this agreement. Consistent with the California Code of Regulations, Title 13, § 1305(b), wire rope is not in good condition when it is stranded, knotted, crushed, excessively rusted, kinked, badly worn, when there are 12 or more wires broken in lay length, or where there is other visible evidence of loss of strength. Contractor shall maintain dollies for use by in-service tow trucks providing police towing services to City. Each tow truck, with the exception of slide back carriers, shall carry its own set of dollies. Each tow truck shall be equipped with no less than two safety chains. No less than two safety chains shall be used for each vehicle being towed. Each safety chain shall be rated at no less than the rating specified by the original equipment manufacturer (OEM). The safety chains shall be securely affixed to the bed frame or wrecker boom, independent of the towing sling, bar, hitch, wheel lift, or under lift towing equipment. The towed vehicle shall be secured to the towing equipment independent of the safety chains by either two chains or two straps. All safety connections and attachments shall have a positive means, of sufficient strength, to ensure that the safety connection or attachment cannot become disengaged while in transit. Vehicles being transported on slide back carriers shall be secured by four tie down chains or straps, independent of the winch or loading cable. In addition to the requirements set forth in California Vehicle Code § 27700, City requires Contractor to equip each tow truck with red flares, lanterns or reflectors, hand tools (screw drivers, pliers, ratchet and sockets, crescent wrenches, metric and standard lug wrenches), bolt cutters, six foot crowbar, rope, broom, shovel, dustpan, fire extinguisher (dry chemical or carbon dioxide type), utility flood Lamps, portable red taillights and stoplights for towed vehicles, equipment for opening locked vehicles, safety snubber chains, and a trash can with absorbent material. 32 Each tow truck shall be equipped with disposable (one time use) latex or rubber gloves for use by Contractor's employees to prevent contamination or contact with potential blood borne pathogens. The decision to use said equipment rests solely with Contractor. 9.3 Tow Truck Identification Each tow truck responding to police initiated towing and impound services shall, on both sides of the vehicle, conspicuously bear Contractor's company name, local address, and local phone number(s) in lettering that complies with California Vehicle Code § 27907. 9.4 Tow Truck Lighting Equipment Each tow truck responding to police initiated towing and impound services shall be equipped with lighting systems as required by California Vehicle Code Sections 24605, 24606 and 25253. Additionally, tow trucks shall be equipped with utility lamp lighting systems than comply with California Vehicle Code § 25110. 9.5 California Highway Patrol Inspection Certification During each contract year of this Agreement, Contractor shall obtain and retain an annual California Highway Patrol (CHP) tow truck safety inspection certification. Contractor shall annually be able to show proof that every vehicle providing services to the City has passed a CHP tow truck safety inspection. Tow trucks not passing inspections or meeting the requirements of this section shall immediately be removed from rotation. The tow truck may return to rotation once the truck has successfully passed a re -inspection by the original inspecting agency. Nothing in this section is intended to prevent, or preclude the National City Police Department from performing periodic unscheduled inspections to insure compliance with the requirements of the California Vehicle Code and this Agreement. 9.6 Tow Truck Maintenance Each tow truck responding to police initiated towing and impound services shall be well maintained and reasonably clean on the exterior and interior and should reflect the clean, professional image of the City of National City. 9.7 Storage Lot, Minimum Requirements There shall be a minimum of one (1) vehicle storage yard within ten (10) miles of the boundary of the City of National City with adequate storage capabilities for all vehicles retrieved from the City and requiring storage. The Contractor shall identify the exact location and size of any storage yards to be used pursuant to this contract. The storage yard shall be approximately 10,000 sq. ft. and have space necessary to accommodate all Police Department tows and comply with all applicable Building Codes and Zoning Regulations (including but not limited to: Fire, Sign, Zoning, and Building Codes). There shall also be the following: 33 1. Be completely enclosed by an 8-foot high fence with a lockable gate. Construction of the fence and gates must be of sufficient construction to prevent entry into the storage area of unauthorized persons or vehicles. 2. Alarms and intrusion sensors that provide immediate notification capabilities at all times or similar devices or security measures. 3. Sufficient lighting to detect unauthorized entrance at night. 4. The storage yard shall be served by drainage facilities adequate to prevent the accumulation of standing water. The vehicle storage area must remain free of mud, pools of standing water, debris, or other elements that would be harmful to the stored vehicle, vehicle contents, or to persons viewing, inspecting or recovering the vehicles. The vehicle storage area, including all driveways and access roads, shall be surfaced in a manner so as to prevent the listed conditions. An acceptable surface includes concrete, asphalt, asphaltic concrete, or decomposed granite with oil. The Contractor shall provide service to the public twenty-four (24) hours a day, seven (7) days a week so that an owner may pay towing and storage fees at the Storage Yard where their vehicle is stored and obtain its release. The Contractor is responsible for the reasonable care, custody, security, and control of any property contained in towed or stored vehicles. All items removed from a vehicle or left stored within the vehicle shall be released to the owner or agent of the impounded vehicle upon demand during normal business hours unless the vehicle is under Police Evidence Hold. 9.8 Minimum Lighting Requirements - Storage Lot There must be adequate lighting, and all yard and office construction must comply with applicable building codes, fire codes, and zoning regulations. The minimum lighting requirements per ten thousand (10,000) square feet are in effect unless zoning or other local regulations dictate increased or diminished lighting requirements: 1. Four (4) 300-Watt incandescent medium -wide flood lights, or 2. Three (3) 300-Watt quartz halogen lights, or 3. Two (2) 100-Watt high-pressure sodium lights. 34 9.9 Vehicle Examination Area Contractor will set aside an area of sufficient size to place a standard sized passenger sedan and have a minimum of forty-eight (48") inches from each side, the front, and rear of the vehicle for the purpose of inspecting the vehicle. This examination area must be flat, level, and paved with concrete, asphalt or asphaltic -concrete, or other suitable all weather surfaces. 9.10 Secure Area - Evidentiary Vehicles Vehicles impounded by City for investigative purposes shall be held in a maximally secured, non-public area of Contractor's property until released by City. Contractor shall insure, by the use of various security devices and measures, including but not limited to walls, fences, containers, buildings or the like, that no unauthorized person, whether intentionally or accidentally can come into physical contact with evidentiary vehicles. Located within the storage yard, Contractor shall set aside a secure area, sufficient in size to hold four (4) vehicles, with sufficient room to walk around, open doors, and examine each separate vehicle. 10.0 INSURANCE REQUIREMENTS 10.1 Minimum Insurance Requirements All required insurance shall be submitted to the City of National City within ten (10) days of provisional award. Failure to provide the insurance certificates within the time frame specified shall be cause for the bid to be rejected as non -responsive. The Contractor shall maintain insurance in full force and effect during the entire period of performance under contract. Failure to do so shall be cause for termination of the contract. All policies must have a thirty (30) day non -cancellation clause giving the City thirty (30) days prior written notice in the event a policy is canceled. At the end of each contract year, the City reserves the right to review insurance requirements and to require more or less coverage depending upon assessment of the risk, the Contractor's past experience, and the availability and affordability of increased liability insurance coverage. Insurance coverage must be from an insurance carrier licensed in the State of California and rated "A-, VI" or better by the A.M. Best Key Rating Guide. All policies must be endorsed to provide that the insurance afforded by Contractor is primary to any insurance or self-insurance maintained by City and its elected officials, officers, employees, agents, and representatives as respects operations of the Named Insured. Any insurance or self insurance maintained by City and its elected officials, officers, employees, agents, and representatives shall be in excess of Contractor's insurance and shall not contribute to it. The Contractor, at its sole cost and expense, shall purchase and maintain throughout the term of this agreement, the following insurance policies: 1. Commercial General Liability for a minimum of two million dollars combined single limit per occurrence ($2,000,000.00). The City of National City must be named as an additional insured on the certificate 35 2. Automobile Liability for a minimum of two million dollars combined single limit per occurrence ($2,000,000.00). The City of National City must be named as an additional insured on the certificate. 3. Garage Keepers minimum of one million dollars per occurrence ($1,000,000.00). 4. On Hook/Cargo in amounts not less than one hundred thousand dollars ($100,000.00). 5. Workers' Compensation coverage in accordance with the laws of the State of California. Policy must contain a Waiver of Subrogation of Rights against the City of National City. 10.2 Primary Insurance The aforementioned policies shall constitute primary insurance as to the City, its officers, employees, and volunteers, so that any other policies held by the City shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the City of cancellation or material change. Said policies, except the workers' compensation policy, shall name the City and its officers, agents and employees as additional insured's. 10.3 Claims Made vs. Occurrence Form If required insurance coverage is provided on a "claims made" rather than "Occurrence" form, the Contractor shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. The policy retroactive date coincides with or precedes Contractor's commencement of work under this Agreement (including subsequent policies purchased as renewals or replacements). 10.4 Aggregate Insurance Limits Any aggregate insurance limits must apply solely to this Agreement. 10.5 Insurance Company Insurance shall be written with only California admitted companies which hold a current policy holder's alphabetic and financial size category rating of not less than A; VIII according to the current Best's Key Rating Guide, or a company of equal financial stability that is approved by the City's Risk Manager. Any deductibles more than ten thousand dollars ($10,000) shall be declared and approved by City. 10.6 Insurance Certification Requirement This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the City Purchasing Agent at 2100 Hoover Avenue National City, California 91950. If the Contractor does not keep all of such insurance policies in full force and effect at all times during the terms of this agreement, the City may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and may terminate this Agreement as provided herein. 36 10.7 Insurance Requirement - Renew Option If this Agreement is extended beyond its original term pursuant to section 3.3, the insurance provisions may be updated at the option of City. 10.8 Limitations of Liabilities and Obligations The foregoing requirements as to the types and limits of insurance coverage to be maintained by the Contractor, and any approval of said insurance by the City, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to the Agreement, including, but not limited to, the provisions concerning indemnification, section 2.10. 10.9 Sub -Contractor Insurance Requirement Contractor shall make certain that all subcontractors hired by Contractor are insured in accordance with this Agreement. If any subcontractor's coverage does not comply with the foregoing provisions, Contractor shall indemnify and hold City harmless of and from any damage, loss, cost, or expense, including attorneys' fees. 11.0 CONSTRUCTION of AGREEMENT The parties acknowledge and agree that (1) each party is of equal bargaining strength; (2) each party has actively participated in the drafting, preparation and negotiation of this Agreement; (3) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement; (4) each party and such party's counsel and advisors have reviewed this Agreement; (5) each party has agreed to enter into this Agreement following such review and the rendering of such advice; and (6) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any attachments, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OPTIONAL CITY By: MOYNAHAN TOWING By: Nick Inzunza, Mayor Tom Moyna APPROVED AS TO FORM: George H. Eiser, III City Attorney, City of National City 37 (Title) ATTACHMENT A TOWING FEE SCHEDULE SERVICE FEE • BASIC TOWING Includes First Hour Hookup, Labor, Standby Time, for vehicles Under 9,500 GVW (unloaded). $135.00 • MEDIUM SIZE - BASIC TOWING INCLUDES FIRST HOUR HOOKUP, LABOR, STANDBY TIME, FOR VEHICLES OVER 9,500 GVW BUT LESS THAN 22,000 • LARGE SIZE - BASIC TOWING INCLUDES FIRST HOUR HOOKUP, LABOR, STANDBY TIME, FOR VEHICLES OVER 22,000 GVW (UNLOADED). • ON -SCENE OR STAND-BY LABOR = EACH 15- MINUTE INCREMENT, BEYOND FIRST HOUR. IS CHARGED ONLY WHEN EXTRA ORDINARY LABOR MUST BE EXPENDED TO RECOVER A VEHICLE. STAND-BY IS CHARGED WHEN THE JOB CANNOT BE STARTED AND MUST BE EXPLAINED ON THE TOW BILL. $150.00 $200.00 $35.00 • DOLLIES WILL ONLY BE USED WHEN THERE IS NOT A LESS EXPENSIVE, SAFE MANNER OF HANDLING THE SITUATION. $50.00 • DRY RUN MAY ALSO BE KNOWN AS A "HOOK-UP — DROP FEE" AND IS CHARGED WHEN THE VEHICLE IS HOOKED UP AND THE OWNER RETURNS BEFORE THE VEHICLE IS IN TRANSIT. $60.00 • PER MILE TOWING APPLIES ONLY TO VEHICLES RECOVERED OUTSIDE THE JURISDICTION OF THE CITY OF NATIONAL CITY. $5.00 • MAXIMUM STORAGE - PER DAY Per day is defined as a 24- hour period. $35.00 • STORAGE PER HOUR Up to maximum of $35.00 per day. $5.00 • AFTER HOURS VEHICLE RELEASE After 6PM and before 8AM including weekends and all holidays. $50.00 38 • NOTIFICATION OF LIEN SALE Vehicle valued at less than $4.000, (22851.12 CVC). $70.00 • NOTIFICATION OF LIEN SALE Vehicle valued at over $4,000. (22851.12 CVC). $100.00 • POLICE EQUIPMENT TOWING Inside jurisdictional limits of National City. No Charge • CITY EQUIPMENT TOWING Includes all City vehicles. Also includes police vehicles towed from outside jurisdictional limits of National City. $50.00 CITY ADMINISTRATIVE FEE'S • NEGLIGENT VEHICLE IMPOUND RELEASE FEE $55.00 • SERIOUS TRAFFIC OFFENDER PROGRAM FEE $150.00 39 ATTACHMENT B Pursuant to Section 7.9 of this Agreement, the Negligent Vehicle Impound Release Fee shall apply to vehicles impounded pursuant to the following California Vehicle Code sections and/or National City Municipal Code sections. One or more the listed sections must be included on the impounding documents. California Vehicle Code 22500 Et seq. Prohibited Stopping, Standing, or Parking 22500.1 22651 (a) 22651 (b) 22651 (d) 22651 (e) 22651 (h) 22651 (i) 22651 (j) 22651 (k) 22651 (1) 22651 (m) 22651 (n) 22651 (o) (1) 22651 (p) 22651 (r) 22652 22653 (c) 22655 (a) Prohibited Stopping, Standing, or Parking: Fire Lane Unattended on Bridge Hazard to flow of traffic Blocking a driveway Blocking fire hydrant access Operator taken into custody - not practical to park or lock Unpaid parking citations Illegally parked and no evidence of registration displayed Parking over 72 hours Temporary tow away signs for street repair Highway authorization for other use, with 24-hour notice No parking tow away signs posted Expired registration in excess of six months Unlicensed or suspended/ revoked license in violation of 12500, 14601, 14601.1, 14601.2, 14601.3, 14601.4, 14601.5, or 14604. Illegally parked, blocking a legally parked vehicle Illegally parked in designated handicapped parking space Removal from private property, at request of property owner, when operator is taken into custody Hit & Run suspect vehicle 40 22656 Illegally parked or abandoned within 7 '/2 feet of nearest railroad rail 22669 Et seq. Removal of Abandoned Vehicles as determined pursuant to section 22523 CVC National City Municipal Code 11.32.060 Illegally parked - 72 hour violation - vehicle removal 11.32.070 Illegally parked - Restricted hours - vehicle removal 11.32.160 Illegally parked - Emergency parking - vehicle removal 11.32.250 (e) Illegally parked - Taxi Stand - vehicle removal 41 ATTACHMENT C Pursuant to Section 7.14 of this Agreement, the Serious Traffic Offender Program Fee shall apply to vehicles impounded pursuant to the following California Vehicle Code Sections. One or more of the following sections must be included on the impounding documents. California Vehicle Code 22651(p) Includes Sections 12500, 14601, 14601.1, 14601.2, 14601.3, 14601.4, 14601.5 or 14604. 22651(h)(2) Upon service of notice of an order of Suspension or Revocation, pursuant to 13388 CVC. 14602.6 Unlicensed, Suspended or Revoked and involved in traffic collision. Sub -section (b) - Certified Mail, 2-day notice to legal owner. Failure to notify legal owner results in maximum fee for 15 days vehicle storage. 14602.7 Fleeing a Peace Officer - Court Order upon affidavit of Peace Officer, to seize vehicle, not to exceed 30 days. Failure to notify legal owner (2 days notice) results in maximum fee for 15 days vehicle storage. 14607.6 Impoundment and Forfeiture of Motor Vehicle. 42 02/17/2006 11:23 FAX 805 384 8035 CENTERPOINTE 001 CENTERPOINTE P INSURANCE SERVICES, LTD, California License 0735759 807 B CAMARILLO SPRINGS ROAD, CAMARILLO, CA. 93012-9463 805-384-1166, 800-451-8766 FAX: 805-384-8036 E-MAIL ADDRESS LOUISC[ CPIINS.COM CENTERPOINTE FAX MESSAGE TO: TOM MOYNAHANS DATE: 2-17-06 FAX #: 1.619-477-6589 ATTN: TOM MOYNAHAN FROM: LOU CIARIMBQLI RE: Umbrella policy for National City ponce Tow contract TOTAL NUMBER OF PAGES INCLUDING COVER SHEET: Deer Tom; I have applied for the Umbrella coverage required by your new National Ci+police Tow contract. The additional 2 million limits will be in place for the 4-1-06 start of the contract. The carrier is an "A" rated, California admitted company, TOPA Insurance and we will issue new certificates for the contracts at 2 million General Liability and 2 million Auto Liability well in advance of the 4-106 start date. Ifyou have any questions, please feel free to contact me. SIGNED: LOU CIARIMBCILI 02/17/2006 11:23 FAX 805 384 8036 CENTERPOINTE 01002 CENTERPOINTE INSURANCE SERVICES, LTD. California License #0735759 807 B CAMARILLO SPRINGS ROAD, CAMARILLO, CA. 93012-9463 805-384-1166, 800-451-8766 FAX: 805-384-8036 E-MAIL ADDRESS LOUISCpa CPIINS.COM CENTERPOINTE FAX MESSAGE TO: Lemac & Assoc DATE: 2-17-06 FAX #: ATTN: Barbara FIiggins FROM: LOU CIARIMBOLI RE: TOM MOYNAHAN'S TOTAL NUMBER OF PAGES INCLUDING COVER SHEET: 1}4141. tlGltntLLU, AticWILYS tJ cow nu r nkowna LluLil.idy IJotIYf' rVL uul LAMA/Olt, Tvul hrV7ua614uu'J. TINJ 4vulyMllr' jir1JI renewed their National City police tow contract; cff; 4-1-06 and the new contract requires them to have 2 mm liability limits for GL and AL. Please quote this asap for short terra policy 4-1-06 to 8-1-06 renewaI and we will annualize the policy at them time. Please advise if there is any other information you will require to place this coverage on behalf of our client. SIGNED: LOU CIAIU iEOLI ACORDTM CERTIFICATE OF LIABILITY INSURANCE DATE IMM/DD `Y, YI PRODUCER Centerpointe Insurance Service California License #0735759 807 - B Camarillo Spring's Road rama+-a 1 TQ CA 9101 2=1464 1 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC# INSURED THOMAS MOYNAHAN DBA: TOM NALNCITY' S 0 NATIONAL CITY BLVD. 3200 NATIONAL CITY, CA 90255 TOMMT0(9 INSURER A: T INCOT.N r,RNF,RA INSURER : INSURER : C INSURER D: INSURER E: THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTB ADD INSRD TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATEIMM/DD(YYI POLICY EXPIRATION DATE IKOM/OD/YY) LIMITS A GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY LTP100210-03 08/05/2005 08/05/2006 EACH OCCURRENCE $ 1,000,oast_ 8 100,000 9 5-, Q_OQ 7 DAMAGE TO RENTED PREMISES (Ea occurenbel CLAIMS MADE OCCUR MED EXP (Any one person) PERSONAL &ADV INJURY $ 1,000,000 9 2, 000, 0'00 GENERAL AGGREGATE GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/CIP AGG 9 2,000,000 —1 POLICY 287 r 1 L00 AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS LTP100210-03 08/05/2005 08/05/2006 COMBINED SINGLE LIMIT (Ea accident) 9 Lona,o00 BODILY INJURY (Per person) ___x_ __ x_ g BODILY INJURY (Per accident) PROPERTY DAMAGE (Por accident) $ GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT $ EA ACC 9 OTHER THAN AUTO ONLY: AGG $ EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE 8 1 OCCUR 7 CLAIMS MADE AGGREGATE 9 DEDUCTIBLE RETENTION $ $ 8 9 WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPEBER/PAATECU77VE OFFICER/MEMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below WC STATU- OTH- TORY LIMITS ER E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE $ E.L. DISEASE - POLICY LIMIT $ A OTHER ON-HOOK/CARGO LTP100210-03 08/05/2005 08/05/2006 PER VEH.SCHED 150000 $1000 DEDUCTBL DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS —_ GARAGEKEEPERS LEGAL LIABILITY- $150,000 LIMIT; UNINSURED MOTORIST BODILY INJURY - $60,00 LIMIT CANCELLATION CITY OF NATIONAL CITY BUSINESS LICENSE DIVISION 1243 NATIONAL CITY BLVD. NATIONAL CITY, CA 91950-4397 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION DR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENT,T11r F1\ 19 V I` ACORL) CORPORATION 1988 ACORD 25 (2001 /08) Passed and adopted by the Council of the City of National City, California, on March 21, 2006, by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Parra, Zarate. Nays: Inzunza. Absent: None. Abstain: None. AUTHENTICATED BY: By: NICK INZUNZA Mayor of the City of National City, California /1 City C�erk of the City of/Jational City, California Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2006-57 of the City of National City, California, passed and adopted by the Council of said City on March 21, 2006. City Clerk of the City of National City, California By: Deputy