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HomeMy WebLinkAbout4.F.3. Correction to Contract with Shakopee Towing Inc. Consent Business 4. F. 3. SFHAIOiE E TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Asst City Administrator DATE: 02/19/2013 SUBJECT: Correction to Contract with Shakopee Towing, Inc. (F) Action Sought The Council is asked to approve a slight change to the City's new five -year contract with Shakopee Towing. Background In late December the Council approved a new five -year contract with Shakopee Towing for the provision of vehicle towing, impound and storage services. When the contract was sent to Shakopee Towing for signature it came back with a note that the administrative fee to be applied to each tow was less than what they had submitted in their response to the City's RFP. Rather than the $25 administrative fee that was contained in the previous contract, they wish to charge a $30 administrative fee under the new contract. The attached document corrects this amount. Budget Impact The fees established in the attached contract are paid by vehicle owners. Therefore there is no budget impact to the City. Relationship to Vision This is a housekeeping item (F). Requested Action The Council is asked to authorize the appropriate officials to enter into the attached, corrected, contract with Shakopee Towing for the provision of vehicle towing, impound and storage services from January 1, 2013 - December 31, 2017. Attachments: Corrected Towing Contract CITY OF SHAKOPEE AGREEMENT PROVIDING FOR TOWING, IMPOUNDING, AND STORAGE OF MOTOR VEHICLES THIS AGREEMENT, made and entered into this 1st day of January, 2013 by and between the City of Shakopee, 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 him/her. 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 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. 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 of the Contractor must be located within the City limits of Shakopee, Minnesota. The storage and parking lot facilities of the Contractor 1 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. 2 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. 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. $120.00. 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 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 $30.00 administrative fee will be added to all tows. A minimum $7.00 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. $160.0 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. B. Outside storage for Impounded Vehicle: $25.00 C. Outside storage for Accident Vehicle: $35.00 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. 3 1. Removing vehicular parts and routine sweeping and clean-up $25.00. 2. Removing debris other than vehicular parts, and more extensive clean-up $50.00 per %2 hour. F. Unlocking Vehicles: $60.00. 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 (3) 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 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. Each of these policies shall carry an endorsement which reads: It is understood and agreed that the insurance provided under the under mentioned 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. 4 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 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. 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 Administrator 5