HomeMy WebLinkAbout4.F.5. Renewal of Towing Contract L f. 5.
City of Shakopee
MEMORANDUM CON S N T
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Kris Wilson, Assistant City Administrator
SUBJECT: Renewal of Towing Contract
DATE: December 13, 2012
Action Requested
The Council is asked to authorize the appropriate officials to enter into a contract with Shakopee Towing
for towing, impounding and storage services.
Background
The City has had a series of successive two -year contracts with Shakopee Towing covering the past 25
years. 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.
With the current two -year contract expiring on December 31, 2012, it was decided that a Request for
Proposals (RFP) should be issued to provide an opportunity for competition. However, Shakopee
Towing was the only company to respond to the RFP.
The proposed contract includes price increases for most categories. However, it has been the history of
this contract for costs to remain flat for many years in a row, then step up and remain flat at the new
rate for numerous years. For example, the rates in the contract expiring December 31 have been in
place since 2005. The attached chart shows the rate history dating back to 1987.
The other notable change in the proposed contract is that it would be for a period of five years rather
than two. In conjunction with this change, it provides an opportunity for the contractor to propose
annual price increases for an upcoming year no later than November 15 of the previous calendar year.
Lastly, the contract redefines the services available to the City at no cost to be no more than 3 service
calls per month, to include Type 1 towing but not the more complicated Type 2 or Type 3 tows or towing
of larger vehicles such as fire trucks. This clarification was requested by the Contractor after differing
interpretations of the contract arose earlier this year in regards to a specific incident.
Budget Impact
The fees established under the contract are paid by the vehicle owner, therefore there is not budgetary
impact to the City, unless the City happens to be the vehicle owner.
Recommendation
The Police Department has been very satisfied with the services of Shakopee Towing over the years and
it appears they are the primary service provider available for the range and level of service the City
desires. Therefore it is recommended that the Council approve the proposed contract.
Relationship to Vision
This is a housekeeping item. (F)
Requested Action
The Council is asked to offer a motion to authorize the appropriate officials to enter into the attached
contract with Shakopee Towing for towing, impound and storage services from January 1, 2013 through
December 31, 2017.
Rate History for Towing Contract
YEAR Type 1 Type 2 Type 3
1987 35.00 55.00 70.00
1989 45.00 70.00 90.00
1991 45.00 70.00 90.00
1993 45.00 70.00 90.00
1995 45.00 70.00 90.00
1997 45.00 70.00 90.00
1999 45.00 70.00 90.00
2001 60.00 95.00 125.00
2003 65.00 100.00 130.00
2005 70.00 105.00 135.00
2007 70.00 105.00 135.00
2009 70.00 105.00 135.00
2011 70.00 105.00 135.00
2013 85.00 120.00 140.00
160.00
140.00
120.00
100.00
80.00 Type 1
60.00 .••#'' '"... -Type 2
40.00 ,,•' -Type 3
20.00
1 1 1 1 1 7 1 7 1 1 1 1
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Y c 5 Y 0 Y cp Y 0 ) Y 0 ) Y c5 V O V O V O V O V O V O
CITY OF SHAKOPEE
AGREEMENT PROVIDING FOR TOWING, IMPOUNDING,
AND STORAGE OF MOTOR VEHICLES
3 AGREEMENT, made and entered into this 1st day of January, 2013 by and between the
:opee, and Shakopee Towing, hereinafter referred to as the "Contractor."
WITNESSETH:
EREAS, the City of Shakopee desires to enter into a contract for the towing, impounding,
)f motor vehicles; and
EREAS, the Contractor is the operator of a towing and storing facility located in the City of
Ld is desirous and willing to enter into such a contract with the City.
V THEREFORE, the parties heretofore, in consideration of the covenants hereinafter set
is follows:
Zontractor hereby agrees to tow, impound, and store all motor vehicles which are ordered
ved under the direction of the Police Chief of the City of Shakopee or persons authorized
m/her.
2,ontractor shall have satisfactory equipment and personnel to provide immediate service
1 vehicles ordered impounded by authorized city officials at all times, twenty -four (24)
> a day, seven (7) days a week, holidays included.
:ontractor shall own or have available to the City of Shakopee, Minnesota, the following
)ment:
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 uprighting and towing a loaded semi tractor- trailer
combination; and
C. Equipment sufficient to move a completely demolished vehicle on dollies or low -
bed trailer.
;ontractor agrees to maintain said equipment in good condition and repair. The City
res the right to inspect the Contractor's equipment from time to time for the purpose of
nining whether the equipment is in good condition and repair and in conformance with the
and conditions of this Agreement.
)rage and parking lot facilities and equipment of the Contractor must be located within the
imits of Shakopee, 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 of the 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 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.
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During the time frame covered by this agreement. the Contractor may submit a request for
changes to the established fees no more than once per calendar year. Such request must be
submitted to the City, in writing, no later than November 15 of the calendar year prior to the
desired effective date.
A. 1. Towing 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. $85.00 $70.00.
Type II, 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. $120.0 $1- 05.00.
Type III, all tows which involve a vehicle that requires, and for which a specific
request has been made, two or more tow trucks. $140.00 $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 minimum $25.00 administrative fee will be added to all tows.
A minimum $7.00 WOO 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. $160.0 $1.50.00
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 may be 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 (1/2) of the Type I towing
charge.
D. Storage Charges.
1. Twenty -four (24) hours or fraction thereof
A. Inside storage $40.00 $35.09.
B. Outside storage for Impounded Vehicle: $25.00 $20.00.
C. Outside storage for Accident Vehicle: $35.00
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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 $25.00 $20,00.
2. Removing debris other than vehicular parts, and more extensive clean-up $50.00
X00 -per Y2 hour.
F. Unlocking Vehicles: $60.0 0 $- 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 three five (53) service calls per month with no
charge to the City , which may include Type 1 towing services but not Type 1 Type 3 or
Large vehicle towing.
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 unless the vehicle in question is owned by
City of Shakopee.
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 of the 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. 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 at least $300,000.
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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.
16. 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 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 of this 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, 2013 to December 31, 2017, 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 of the fees authorized shall be posted in a conspicuous
place in the Contractor's garage.
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IN WITNESS THEREOF, the parties have caused this Agreement to be executed by their appropriate
officers and their seals affixed as of the day and year first above written.
CITY OF SHAKOPEE: CONTRACTOR:
By
Its Mayor Its
Its Clerk
Its Administrator
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