HomeMy WebLinkAbout5.F.4. Renewal of Towing Contract
City of Shakopee S. F. '1#
Memorandum
TO: Mayor and City Council C 0 ~IN ~, ~~ ~),~ T
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Mark McNeill, City Administrator ,. .f~wJ'~~VJ.
FROM: Kris Wilson, Assistant City Administrator
SUBJECT: Renewal of Towing Contract
DATE: December 16, 2008
Introduction
The Council is asked to authorize the appropriate City officials to enter into a renewed
contract with Shakopee Towing for the period of January 1, 2009 - December 31,2010.
Background
The City of Shakopee currently has a towing contract with Shakopee Towing, which
provides towing, impound and vehicle storage services. The City requires towing
services in a number of different circumstances, including accident scenes, winter
parking violations, and in the case of stuck or stalled City vehicles. Shakopee Towing
has provided reliable, cost-effective and timely service to the City for the past four years.
Therefore it is recommended that their contract be renewed for 2009 and 2010.
The only change to the existing contract is an additional administrative fee to account for
the rising cost of fuel. It is quite common for businesses of a similar nature to charge an
additional fee for fuel. Shakopee Towing is requesting that a fuel surcharge of $5 be
added to the contract. This fee is paid by the vehicle owner.
A copy of the amended contract is attached for your information.
Budget Impact
The towing fees established in this contract are the responsibility ofthe vehicle owner.
Therefore there is no budget impact to the City.
Relationship to Vision
This is a housekeeping item.
Requested Action
If the Council concurs, it should offer a motion to authorize the appropriate City officials
to enter into a contract with Shakopee Towing for the period of January 1, 2009 through
December 31,2010.
CITY OF SHAKOPEE
AGREEMENT PROVIDING FOR TOWING, IMPOUNDING,
AND STORAGE OF MOTOR VEHICLES
THIS AGREEMENT, made and entered into this 1st day of January, 2007 by and between the
City of Shako pee, and Shakopee Towing, hereinafter referred to as the "Contractor."
WITNESSETH:
WHEREAS, the City of Shakopee desires to enter into a contract for the towing, impounding,
and storage of motor vehicles; and
WHEREAS, the Contractor is the operator of a towing and storing facility located in the City of
Shakopee and is desirous and willing to enter into such a contract with the City.
NOW THEREFORE, the parties heretofore, in consideration of the covenants hereinafter set
forth, agree as follows:
1. The Contractor hereby agrees to tow, impound, and store all motor vehicles which are ordered
removed under the direction of the Police Chief of the City of Shakopee or persons authorized
by himlher.
2. The Contractor shall have satisfactory equipment and personnel to provide immediate service
on all vehicles ordered impounded by authorized city officials at all times, twenty-four (24)
hours a day, seven (7) days a week, holidays included.
3. The contractor shall own or have available to the City of Shakopee, Minnesota, the following
equipment:
A. A minimum of two (2) tow trucks having a gross vehicle weight of eight thousand
(8,000) pounds or more, equipped with a crane and winch, and further equipped to
control the movement of the towed vehicle; and
B. Equipment capable of up righting and towing a loaded semi tractor-trailer
combination; and
C. Equipment sufficient to move a completely demolished vehicle on dollies or low-
bed trailer.
The Contractor agrees to maintain said equipment in good condition and repair. The City
reserves the right to inspect the Contractor's equipment from time to time for the purpose of
determining whether the equipment is in good condition and repair and in conformance with the
terms and conditions of this Agreement.
4. All storage and parking lot facilities and equipment ofthe Contractor must be located within the
City limits of Shako pee, Minnesota. The storage and parking lot facilities of the Contractor
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shall meet all applicable state and building code standards and municipal licenses and zoning
requirements, including those relating to screening and landscaping.
5. The Contractor shall control and operate facilities capable of storing a minimum of four (4)
vehicles inside for one (1) week, and facilities capable of storing a minimum of twenty (20)
vehicles outside. The Contactor will provide six (6) secured storage spaces for forfeited motor
vehicles at no cost to the City.
It is further agreed that vehicles need be stored inside only when so directed by an authorized
City Official.
6. The Contractor assumes full responsibility for the conduct of its employees and guarantees that
its employees will respond promptly to calls, use safe and adequate equipment, be clean in
appearance, use decent language, and treat the public courteously at all times.
7. The Contractor shall be solely responsible for the loss or damage to any motor vehicle,
including its equipment and contents, from the time the vehicle is turned over to the Contractor
or its agent by an authorized City Official until such time as the vehicle is released to the
registered or actual owner or agent thereof.
8. The Contractor agrees to maintain proper records of all vehicles received. These records shall
be approved by the Police Chief ofthe City and are available at all times for inspection by
authorized City Officials. The records shall include a copy of the police impounding report.
The Contractor must submit to the Shakopee Police Chief or his/her designee, monthly reports
of vehicles stored and released.
9. All vehicles towed or impounded for the Police Department of the City are to be released by the
Contractor only upon the showing of a release form issued by the Police Department of the
City. Either the Contractor or its employee must be present at the Contractor's parking facility or
on call at least between the hours of 8:30 a.m. and 5:30 p.m., Monday through Friday, and on
Saturday from 9:00 a.m. to 1:00 p.m., and Sunday from 10:00 a.m. to noon, for the purpose of
releasing vehicles to authorized claimants.
10. The Contractor agrees to tow the vehicles without further damaging said vehicles.
11. When the Contractor arrives at an accident scene to a tow vehicles involved in an accident, the
Contractor assumes responsibility for removing any vehicular parts or other debris resulting
from the accident.
12. The Contractor shall be entitled to a charge for its towing, storage, and debris removal services
pursuant to those fees specified in the following schedule. The fees shall apply only when the
car is towed to the Contractor's storage area at the direction ofthe City of Shakopee. Towing
requested by vehicle owners shall be subject to fees agreed upon between the Contractor and the
owner including charges for towing vehicles outside the City of Shakopee.
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A. 1. Towin?: Charges:
Type I, all tows which involve a vehicle which is on or immediately adjacent to
a public street or alley and which can be secured for towing with the usual type
of winching. $70.00.
Type n, all tows which involved a vehicle which is not on or immediately
adjacent to a public street or alley or which requires an unusual amount of
winching to secure it for towing by one tow truck or the use of a dolly to tow the
vehicle. $105.00.
Type ill, all tows which involve a vehicle that requires, and for which a specific
request has been made, two or more tow trucks. $135.00 minimum.
NOTE: The designation as to the type of tow performed will be the duly
authorized agent of the City. Any disagreement with this designation shall be
made in writing to the City Administrator within 24 hours.
2. Administrative Fees.
A $25.00 administrative fee will be added to all tows.
A $5.00 fuel surcharge will be added to all tows.
B. Towing of Large Vehicles.
Towing of vehicles of more than eight (8) ton factory rated capacity. $150.00 minimum.
C. Reclaimed Vehicles at Scene.
If an operator of the Contractor is called to tow a vehicle and after arriving at the scene
of the tow, the owner appears to claim said vehicle, the vehicle maybe turned over to
- the owner provided the police authorize the release of the vehicle and the towing
operator is paid a service fee in the amount of one-half (112) of the Type I towing
charge.
D. Storage Charges.
1. Twenty-four (24) hours or fraction thereof
A. Inside storage $35.00.
B. Outside storage $20.00.
2. Forfeited Vehicles: Two (2) dollars a day to maximum of $750.00 for each
forfeited motor vehicle over the allotted six (6) free storage spaces referenced in
paragraph 5 of this agreement.
E. Clean UP Charges.
1. Removing vehicular parts and routine sweeping and clean-up $20.00.
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2. Removing debris other than vehicular parts, and more extensive clean-up $45.00
per ~ hour.
F. Unlocking Vehicles: $50.00.
G. Vehicle Release.
The release of vehicles will be conducted during posted normal working hours. A
release requested after normal working hours will be charged an additional service call
fee of $50.00.
H. The Contactor will provide the City five (5) service calls per month with no charge to
the City.
13. The City shall not be responsible to the Contractor for the payment of any charge for towing,
storage, clean-up, and/or unlocking vehicles.
14. Should the Contractor fail to appear at the designated point to tow within twenty (20) minutes
after a call, the City reserves the right to call another tow service to perform the work. If the
Contractor is called for a tow and is unable to respond, it must immediately so inform the City
Official or department requesting the tow, and the City hereby reserves the right to another tow
service to perform the work. In any case, only the towing service which performs the work will
be paid.
15. This Agreement will not be executed nor shall the Contractor commence work under this
Agreement until the Contractor has established that it has obtained the insurance coverage set
forth and effect with respect to all operations of the Contractor. The Contractor agrees to
furnish to the City a certificated of insurance of its policy or policies which shall be in force on
the date ofthe execution of the Agreement and shall continue for a period equal to the duration
of the Agreement. The following coverage is required:
A. Garage Liability and Automobile Liability as follows:
1. Bodilv Iniury and Property Damage Liability in the amount of not less than
$1,500,000 per occurrence.
2. Garage Kee1Jers' Legal Liability policy in the amount at least $30,000.
Each of these policies shall carry an endorsement which reads:
It is understood and agreed that the insurance provided under the undermentioned policy
and endorsement attached thereto, is hereby extended to apply to the liability imposed
by law on the City of Shakopee for bodily injury and for damage to property, which
liability is assumed by the Insured under the towing Agreement between the City of
Shakopee and the Insured.
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B. Worker's Compensation Insurance covering all employees of the Contractor working in
the job in accordance with the Minnesota Worker's Compensation Law.
C. Cancellation Notice the policy shall provide for 10 days notice to the City before any
changes or cancellation of each policy becomes effective.
16. The Contractor shall defend, indemnify, and hold hannless the City, its employees and agents,
from any and all claims, causes of action, lawsuits, damages, losses and expenses on account of
bodily injury, sickness, disease, death, or property damage as a result, directly or indirectly, of
the operations of the Contractor in connection with the work performed under this Agreement.
In the event the Contractor shall fail to assume full responsibility for the defense of any claim
after proper notice, the City shall have the right to defend such action and to charge all costs
thereof to the Contractor.
17. The Contractor shall operate its parking facility in compliance with the terms ofthis Agreement
and all applicable laws, ordinances, rules, and regulations which are now in effect or which may
hereafter be adopted.
18. It is mutually understood and agreed that no alteration of the terms of this Agreement shall be
valid unless made in writing and signed by the parties hereto.
19. In the event of a breach by Contractor of any terms or condition of this Agreement, the City
shall have, in addition to any other legal recourse, the right to terminate this a Agreement
forthwith.
20. This Agreement shall be for a period from January 1, 2009 to December 31, 2010, provided that
either party may terminate the same without cause by giving ninety (90) days' written notice to
the other.
21. A copy of this Agreement and a schedule ofthe fees authorized shall be posted in a conspicuous
place in the Contractor's garage.
IN WITNESS THEREOF, the parties have caused this Agreement to be executed by their
appropriate officers and their seals affixed as ofthe day and year first above written.
CITY OF SHAKOPEE: CONTRACTOR:
By
Its Mayor Its
Its Clerk
Its Administrator
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