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HomeMy WebLinkAbout10.E.2. Terms of Towing Contract 10.E. City of Shakopee MEMORANDUM TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator V' SUBJECT: Terms of Towing Contract DATE: October 12, 2012 Action Sought The Council is asked to provide direction regarding the location requirements and desired duration of the City's next towing contract. Background Staff has prepared the attached Request for Proposals (RFP) for towing services, as directed by the Council at its Oct. 4 meeting. During the preparation of this RFP, two policy issues have arisen for which staff is seeking Council direction prior to issuing the RFP. The issues are as follows: 1. Location. The City's current contract requires that the lot to which vehicles are towed be located within the City limits. However a towing RFP recently issued by the City of Savage allowed for businesses located within 4 miles of the City limits to be considered. Requiring the contractor to be located within the City has multiple benefits. In most cases it provides for a faster response time. The sooner the tow truck arrives on the scene of an accident to remove a damaged or disabled vehicle, the sooner our police officer(s) can be available for other calls for service and the sooner the normal flow of traffic can be restored for other motorists. Additionally, a local company will presumably have greater knowledge of and experience with the geography of Shakopee, including traffic patterns, current road construction, etc. and this knowledge is again likely to lead to a faster response time. Finally, a local lot is presumably more convenient for residents who may have to reclaim a towed or impounded vehicle. The downside of requiring RFP respondents to have a facility within the City limits is that it is likely to significantly limit the number of respondents, possibly to as few as one. If the purpose of issuing the RFP is to determine whether other qualified companies exist and are interested in providing a competitive bid, retaining the requirement for a facility within the City limits may work against this goal. 2. Duration. The City's history has been to have two -year contracts. Staff recommends extending this term to five years, while providing for terms under which the contract can be terminated earlier. Renegotiating the contract every two years has proven to be an unnecessary administrative hassle for both the City and the contractor. Additionally, a longer contract may attract additional proposals as it would better allow a company to amortize its investment in equipment. Budget Impact Towing charges negotiated in the contract are paid by the vehicle owner. Therefore there is no budgetary impact to the City. Relationship to Vision This is a housekeeping item (F). Recommendation The Police Chief and I recommend that the RFP require respondents to operate a lot within the City limits and that the duration of the contract be five years. Requested Action If the Council concurs, it is asked to direct that the Request for Proposals for Towing Services be limited to those operating a facility within the City limits and that it seek a five -year contract. Request for Proposals for Towing, Impounding & Storage of Motor Vehicles The City of Shakopee seeks proposals from qualified companies interested in entering into a contract for the provision of towing, impounding and storage of motor vehicles. 1. Contents In order to be considered, proposals must include: A. Name of the business submitting the proposal, contact person and contact information. B. Overview of the business, including number of years in business, scope of services provided and geographic service area. C. Written acknowledgement that the respondent has reviewed all contract terms and conditions as stated in Appendix A of this document and that respondent is willing and able to meet all stated criteria. D. A complete listing of the towing equipment currently owned and available for use in meeting the terms of the contract and the towing capacity of each. E. A specific listing of any components of the contract that will or may be subcontracted out to another business. F. The proposed fees to be charged in each of the categories outlined in Section 18 of Appendix A. 2. Deadline Proposals must be received by 4:30 p.m. on Friday, November 9, 2012. 3. Submittal Proposals must be submitted in writing to: Ms. Kris Wilson, Assistant City Administrator City of Shakopee 129 Holmes St., Shakopee, MN 55379 Review of all proposals received by the deadline is anticipated to be completed on or about November 16, with a recommendation brought forward to the City Council on November 20, 2012 and a contract effective date of January 1, 2013. The City of Shakopee reserves the right to reject any and all proposals and is not bound to use price as the sole determining factor. All information included in the submitted proposal(s) will be classified in accordance with Minnesota statutes governing data practices. 1 APPENDIX A Contract Terms & Conditions Scope of Services 1. The Contractor shall 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 him/her. 2. When called to the scene of an accident to tow vehicles involved in an accident, the Contractor shall also remove any vehicular parts or other debris resulting from the accident. 3. The contractor shall provide for the towing of any and all damaged or disabled vehicles owned by the City, including but not limited to squad cars, snow plows, fire trucks and inspection vehicles to a location of the City's choice within the City limits. Response Time 4. The Contractor shall have satisfactory equipment and personnel to provide immediate service on all vehicles ordered towed and/or impounded by authorized city officials at all times, twenty - four (24) hours a day, seven (7) days a week, holidays included. 5. Should the Contractor fail to appear at the designated point to tow within twenty (20) minutes of 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. In any case, only the towing service which performs the work will be paid. Equipment 6. The contractor shall own, or have available for use within the City, the following: • Tow trucks equipped with a crane and winch, and further equipped to control the movement of the towed vehicle; • Equipment capable of righting and towing a loaded semi tractor - trailer combination; • Equipment sufficient to move a completely demolished vehicle via dollies or low -bed trailer. 7. 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 the Agreement. Storage 8. All storage and parking lot facilities and equipment of the Contractor must be located within the City limits of Shakopee, Minnesota. The storage and parking lot facilities of the Contractor 2 shall meet all applicable state and building code standards and municipal licenses and zoning requirements, including those relating to screening and landscaping. 9. 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. 10. The Contactor will provide six (6) secured storage spaces for forfeited motor vehicles at no cost to the City. Employees 11. The Contractor shall assume 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. 12. The Contractor shall follow all applicable state and federal employment laws, including but not limited to those related to workplace safety, nondiscrimination, work hours and compensation. Loss and /or Damage 13. The Contractor shall tow vehicles without further damaging said vehicles. 14. 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. Recordkeeping 15. The Contractor shall maintain proper records of all vehicles received, stored and released, including a copy of the police impounding report. These records shall be made immediately available to the Police Chief and other authorized City Officials upon request. Release of Vehicles 16. All vehicles impounded for the Police Department shall be released by the Contractor only upon the showing of a release form issued by the Police Department. 17. At a minimum, the Contractor's parking facility shall be open and staffed for the purpose of releasing vehicles to authorized claimants between the hours of 8:30 a.m. and 5:30 p.m., Monday through Friday, 9:00 a.m. and 1:00 p.m. Saturday and 10:00 a.m. to noon on Sunday. 3 Fees & Charges 18. The Contractor shall be entitled to a charge for its towing, storage, and debris removal services according to the fee schedule established under contract with the City. The established fees shall apply only when the car is towed to the Contractor's storage area at the direction of the 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. 19. Services provided under the contract must be charged at the fees specified in the contract. The Contractor shall not establish, charge or collect any additional fees or charges or amounts in excess of the established fees. 20. The contract may or shall establish the following categories of fees: Towing Charges o Type I Towing, defined as all tows which involve a vehicle on or immediately adjacent to a public street or alley and which can be secured for towing with standard winching. o Type II Towing, defined as all tows of a vehicle 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. o Type III Towing, defined as all tows of a vehicle that requires, and for which a specific request has been made, two or more tow trucks. o Towing of Large Vehicles Towing, defined as towing of vehicles with a factory rated capacity of eight (8) tons or more. o Incomplete Tows, establishing a fee to be charged in the case where 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. NOTE: The designation as to the type of tow performed shall be made by the duly authorized agent of the City. Any disagreement with this designation shall be made in writing to the City Administrator within 24 hours. Administrative Fees o The contract may establish an administrative fee to be added to instances requiring additional research, mailings and notifications. o The contract may establish a fuel surcharge to be added should the price of fuel increase by a designated amount over the market price at the time the contract was negotiated. 4 Storage Charges o Storage charges shall be established for each period of twenty -four (24) hours or fraction thereof during which a vehicle towed under the contract is stored at the Contractor's lot. o The contract may establish separate storage charges for inside and outside storage. o The contract shall establish a per day storage charge for forfeited vehicles stored in excess of the allotted six (6) free storage spaces referenced in Section 9 of this document, including a not to exceed amount for said storage. Clean Up Charges o The contract may establish a fee for the removal of vehicular parts and routine sweeping and clean-up of accident scenes. o The contract may establish a fee for the removal of debris other than vehicular parts, and more extensive clean-up. After -Hours Vehicle Release Charge The contract may establish an additional service fee for release of vehicles outside of the hours established in Section 16. Vehicle Unlocking Charge The contract shall establish a fee to be charged for the unlocking of a vehicle directed by an authorized representative of the Shakopee Police Department. 21. There shall be no charges or fees applied to the first five (5) service calls per month in which the vehicle to be towed is the property of the City of Shakopee. 22. Under no circumstances shall the City be responsible to the Contractor for the payment of any charge for towing, storage, clean-up, and/or unlocking of vehicles, except in cases where the vehicle is owned by the City of Shakopee and represents service in excess of that in #18 above. Liability & Insurance 23. The Contractor shall defend, indemnify, and hold harmless 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 the 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. 24. The Contractor shall be required to maintain the following types and amounts of insurance coverage at all times and to furnish to the City a certificate of insurance of its policy or policies. 5 A. Garage Liability and Automobile Liability as follows: 1. Bodily Injury and Property Damage Liability in the amount of not less than $1,000,000 per occurrence. 2. Garage Keepers' Legal Liability policy in the amount of not less than $300,000. 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. 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. Duration 25. The initial contract shall be for a period of five years, beginning January 1, 2013 and concluding December 31, 2017. 26. The contract shall be subject to termination by either party without cause by giving sixty (60) days' written notice to the other. 27. In the event of a breach by Contractor of any terms or conditions of the final contract, the City shall have, in addition to any other legal recourse, the right to terminate the contract forthwith. Miscellaneous 28. A copy of the completed contract and a schedule of the fees authorized shall be posted in a conspicuous place in the Contractor's garage. 29. The Contractor shall operate its parking facility in compliance with the terms of the completed contract and all applicable laws, ordinances, rules, and regulations which are now in effect or which may hereafter be adopted. 30. Once entered into, there shall be no alteration of the terms of the contract unless made in writing and signed by both parties. 6