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HomeMy WebLinkAboutStaff Report 3.B 05/07/2012 • • A ges Itenv#3 .3 2 A L b:err �85g DATE: May 7,:2012 TO: Honorable Mayor and:Me " 0 'rs if the City Council through City Manager FROM Dan Fish, Chief of Police �� Or SUBJECT: Resolution-Approving.a Form City of Petaluma Police Department Tow Service Franchise Agreement RECOMMENDATION It is recommended that the City, Council adopt the.attached-resolution.approvingthe form "City of Petaluma Police Department Tow Service Franchise Agreement'pursuant to Chapter 11.94 of the City of Petaluma Municipal Code entitled"Nonexclusive Tow Franchise Agreements". BACKGROUND On,April 16, 2012, the City Couneifadopted Ordinance 2430:N:C.S. to amend Petaluma Municipal Code:("PMC"),Chapter 11.94 and allow the '`Tow Service_Franchise Agreement" formerly codified in that chapter to'be;updated and modified by City Council resolution. Because of needed-changes to the.agreement and the related,maximum tow rate schedule, staff • recommended this modification. As part of the update, staff also recognized a need for more detailed procedures for•tow franchise;awards and updated standards for tow operators and equipment. The changes recommended to the City's forrmagreement-will now match many of the California Highway'Patrol r("CHP") state standards.for tow operators'and equipment contained in the form CHP Tow Service Agreement. Because operators are generally familiar with the CHP standards,the changes are expected;to make it easier for operators, who for the mostpart will have to:comply with only one set of performance.standards. DISCUSSION The Police Departmerittprovides'law°enforcement and publicsafetytowingservices to the community by awarding Tow,Service Franchise Agreements. The existing agreements are currently expired,are;outdated and need to be,renewed. Staff hasieviewedand'updated the agreement and`added'application procedures and performance standards for interested towing operators: Agenda Review: City Attorney Finance Director City Manager The franchise fees being collected under the franchise agreement Will not be changed. The maximum,tow rates;cbarged`by the towing operators have been updated, and will be subject to increase in the,future,if the-California Highway Patrol increases its recommended maximum tow rate structure for Sonoma County: FINANCIAL IMPACTS There are-;no.financial impacts to making these changes to the agreement, other than staff and legal review time in preparing the revised agreement. ATTACHMENTS 1. Resolution 2. Tow Franchise Agreement • a NIto.c4Acc.ecs\C 1. • RESOLUTION OF THE CITY COUNCIL OF THECITY OF"PETALUMA APPROVING A FORM CITY OF PETALUMA POLICE DEPARTMENT TOW SERVICE FRANCHISE AGREEMENT WHEREAS,.the .City has entered into.agreements ("Tow Franchise Agreements") that grant non- exclusive franchises to provide towing and storage services in the City of Petaluma ("City") as part of the Police Department's towing:program;.and WHEREAS;. Petaluma Municipal Code Chapter 11.94 provides authority for granting of non- , exclusive towTranchises.and execution of Tow Franchise Agreements between the City and private tow companies,operating in the City in;accordance with andssubjectto the requirements of Chapter 11.94; California Vehicle Code section 12110, subdivision (b), and sections 46, 51, and 75 of the Petaluma'Charter; and WHEREAS, Petaluma Municipal Code Section 11.94.020 authorizes the City Manager to execute form Tow Franchise Agreements; and WHEREAS, on March 5, 2012, the City Council introduced an ordinance amending Petaluma Municipal Code section 11.94.040 to-permit amendment of the Tow Franchise Agreement form and the setting of maximum rates which franchisees may charge for tow services byresolution; and WHEREAS; in accordance with the-Charter of the City of Petaluma. Section 51, on April 16, 2012, the City Council adopted an ordinance amending the Petaluma Municipal Code section 11.94.040 to permit amendment of the Tow Franclii'se-..Agreement form and the,;setting of maximum rates which franchisees may charge for tow services by resolution. NOW, THEREFORE, BE IT RESOLVED: 1. The City of Petaluma-Police Department Tow Service;Franchise Agreement attached here as Exhibit A is approved for use as a non-exclusive,franchise agreement by the City. 2. This resolution shall take;effect upon the effective date of City of Petaluma Ordinance No. 2430 N.C.S. CITY OF PETALUMA POLICEDEPARTMENT TOW SERVICE FRANCHISE AGREEMENT This Cify,of:P,etalumaPolice=Department Tow Service Franehise.A'greement ("Agreement") is entered line, effective as of , 2012, between the CITY OF PETALUMA, a municipal corporation and a charter city("City"),and ("Contractor"), (collectively, the"'Parties"). City or Contractor are sometimes referred to herein as a"Party." RECITALS WHEREAS, Contractor has.applied,to provide towing and 'storage service in connection with the City's;Rotation Tow Lists; WHEREAS; Contractor has the necessary expertise, equipment and skill to provide tow services in response to calls generated from the City's Rotation Tow Lists as set forth_iirthis Agreement; WHEREAS, the City is authorized.to award a franchise for such towing services pursuant to California Vehicle Code section 12110, as may be amended from time to time, and pursuant to the City Charter; NOW THEREFORE, for good•and valuable consideration, the receipt,and sufficiency of which is hereby acknowledged,the Parties agree as.follows: SECTION 1 - DEFINITIONS "Bundling' means the practiee of removing several vehicles from an area, as in the conducting of a special project or sweep, and storing them as a group, generally near the area they were removed froni, until they can be transported to the Contractor's storage area. "Communications Center" means the Petaluma Police Department's Communications Center. "City-generated tows" means the towing of vehicles in response to calls generated froth the RotationTow.Lists included'under Section 2B of this Agreement. "City Manager" means;:the City Manager of the City of Petaluma;'or his or her designee. "Class 'A'Tow Truck" means a=tow truck as defined in Section9°of the current version of the California Highway Patrol ("CHP") Tow Service Agreement as it may be subsequently modified or renumbered (' Cl` lP Tow Service Agreement'or "CHP 234''), a copy of which is:available for reference at the Petaluma Police Department. "Class 'B' Tow Truck"means.a tow truck as defined in Section 9 of the CI-IP Tow Service Agreement. Page 1 of 18 y 'Class 'C' Tow Truck" means',a tow truck as defined in Section 9cof the CI-IP Tow Service Agreement. "Class 'D' Tow Truck" meanssa°tow truck as defined,in Section.9 of the CHP Tow Service Agreement. "P.olice.Deparfnient" means=the•Police Department of the,Cityoffetaluma. "Police(Special Services"-means:a response to a call generated fro m the Police Special Services Rotation"Tow List. "Service•Calls" means calls generated from the Regular Rotation Tow List for vehicle assistance, including lockouts,jump starts, tire:changes and fueling. "Sweeps" means police operationsexpected to result irra need toltow four (4) cars or more or special operations for which Contractor will be required to leave the city`lifnits of Petaluma if a tow is requested. SECTION 2 —TERM The term of this Agreernenfis?from ,.2012, to ,.2015, inclusive, subject to early termination pursuant to section 6. SECTION 3 —SCOPE OF SERVICES A. Contractor agrees to provide, in response to calls;generated from the City's Rotation Tow'lists(as set forth herein, in subsection B), towing and storage of vehicles, and related services as set forth herein. The City places no maximum on. the number of City-generated tows that Contractor may be required to provide in any time period:There shall be no obligation upon City to provide Contractor with a minimum'number of City-generated tows during any time period. B. Rotation Tow Lists. 1. ,Call's generated1fromthe Police•Speci'al Services Rotation Tow List ;include, but are'not limited to, vehicles impounded for evidence or criminal investigation, or tow serviceskfor City vehicles. Tow services for City vehicles'include, but arc not limited to, towing,jump-starts,'and flat tire repair. Contractor will be available�for_SpecialService Rotation calls 24.hours a day, 7 days a week. 2. Calls generated from the Regular Rotation Tow List include, but are not limited to,;storage of vehicles, disabled vehicle's, traffic hazards, traffic collisions,;vehicles parked over 72 hours,,Service Calls, or'other tow servicesnot covered under any other list Con_tractor will be available for RegulafRotation calls 24 hours a day, 7 days a Week. Page 2 of 18 S 3'. Cakgenerated from the Abandoned and'Junk°Vehicle-Rotation Tow List • include„but are;not;limited to, vehicles towed pursuant to California Vehicle Code section.22669(d) Contractorwill be<available for Abandoned and Junk Rotation calls•Ivlonday through Friday, 8:00 a.m. to 5:00 p. in., except holidays or under special`.circumstances. 4. Calls':generated from the Serious Traffic.Offender Program ("STOP”) Vehicle Forfeiture/30 Day Impound Rotation List are limited to vehicles impounded pursuant to the California Vehicle>.Code for a 30-day impound. Contractor will be available for STOP-30 Day Impound Rotation calls 24 hours a day, 7 days a week. C. Requests for Service and Response Standards. Contractorwill be notified of a request forrotationtow services via telephone from.the Communications Center. Communications personnel will attempt telephone contact one,tinie,.allowing the phone to ring at least siz'.(6) complete rings. If afterthe;sixth ring there is no answer, the next Contractor on the list will be called. 2. If Contractor fails to answer the telephone, or answers but declines to provide°the requested services, the next Contractor on the list will be called. If the next Contractor called isnvailable, that call will not constitute that•responding contractor's next call on the Rotation Tow List. • Instead, the responding Contracforwill be indicated on the list over Contractor's name. The responding Contractor will then maintain its original position-on;the.list as next on;rotation. Responding to a Service Call will_not alter a contractor's position on the Regular Rotation Tow List. 3. Contractor inquiries to the Communications Center shall be limited to urgent andjustifed circumstances, and not Inquiries as to Contractor's placeonany Rotation Tow List. 'However, if Contractor will be unavailable for an extended period of time, Contractor shall contact the Communnications`Center in advance to provide information regarding the time.during which Contractorwill be-unavailable. 9: Contractor shall,arrive at.the.site at which-the vehicle to be towed is located"within thirty (30) minutes of receiving a telephone request from the Communications Center. Contractorwill advise the Communications Center if, at the time of receiving a•request;for services from Communications[Center,,Contractor anticipates'it will be unable to respond within thirty (30) minutes. 5: If Contractor fails to arrive at the site at which the vehicle to,be towed is located within thirty (30) minutes, or if Contractor passes on a tow without good cause as determined by the City, the City shall have the right to have Page3of18 to the-Vehicle towed by another"Contrraetor: Repeated failure to meet the response standards set forth above,shall constitute,a=material breach-ofthis Agreement. D. Standards of Service. I. Certain standards of service.required,of Contractor are incorporated in this Agreement by reference to the most current;,version"of the California Highway Patrol ("CHP") Tow Service Agreement (CHP Form 234), a copy of which is available for reference at the Petaluma Police.Department and at http://www:chp:ca.gov/programs/rotationhtm}_or such successor CHP Rotation Tow Program website:as may be implemented by the CHP. References in such standards to the'CHP, CHP tow program operations arid/or,Ci-IP personnel are 'intended to refer tothe:City of Petaluma and its Polices Department, Petaluma Police Department tow program operations and City of Petaluma personnel. 2. The following CHP Tow Service Agreement sections are incorporated herein by reference as though fully set forth. In the event of subsequent modification to the CHP Tow Service Agreement that modifies the section numbers or titles of incorporated standards; the subsequent standard's covering the same subject matter;shall apply: a. Section 3. "TOW OPERATORS." b. .Section 4. "TOW OPERATOR'S BUSINESS." (i) In addition to theistandardscontained in Section 4 of the CHP Tow Service Agreement, the'following documents, printed in a minimum of 12-point type, shall be posted by Contractor at each storage facility in a conspicuous location, easily visible to the public: (1) Name and address of Contractor's insurance broker handling the insurance coverage required pursuant to this Agreement; (2) A notice explaining the procedure by which unclaimed vehicles are sold at public auction, including the locations of such auctions and publications in which such auctions iare"advertised, and stating,thatall_in attendance at such auction shall:have anequal:opportunity to bid. c. Section 6. "RESPONSE TO CALI.,S." The CFIP standards and procedures contained in this Section are supplementary to Section 2.C. of this"Agreement. Whenirrcontlict, Section 2.C. of this Agreement shall govern. d. Section 8. "TOW TRUCK DRIVERS". Page 4 of 18 • e. Section 10, "GENERAL.EQUIPMENT SPECIFICATIONS." f Section 11. "INSPECTIONS:" g. Section 12, "RATES," subsections 12-.D, 12.F through 12.1, and 12.K through 12.0 only. h. Section 16. "DEMEANOR AND CONDUCT." 3. Contractor"fshall provide City annually on January 15`" a completed current version of the TOW OPERATOR/DRIVER INFORMATION (CHP 234F) form for each tow truck driver employed by or under contract with Contractor, and shall provide City with an updated form within twenty four (24) hours of any change.in driver status. Forms provided,annually shall be the current version of form CHP234F or other Tow Operator/Driver Information Form asadopted by the'California Highway Patrol and normally available at. http://www.chp.ca:gov/programs/rotation:html or successor Cl-IP Rotation Tow Program website. The:driver's current home address, if different from DMV records, shall be listed ()lithe form along with a home telephone number. 4. All of Contractor's officers, agents; or:employees who engage in performance of this Agreement with City on behalf of Contractor shall be neat-in<appearance.and courteous to the public-and to City employees. 5. Contractor shall supply its tow truck drivers-with shirts upon which the name:of the driver has,been stitched on the left pocket or a pin-on name tag to be'affixed to the left hand pocket. The:shirt or name tag must be worn by the driver at all times when-the driver is towing vehicles or interacting with the public or City pursuant to`this Agreerent. 6. Contractor shall take prompt and appropriate steps to resolve any third • party complaints arising from or related to services provided pursuant to • this.Agreement. Contractor shall provide;each such complainant with a Custerner Complaint form (provided:by:City), and shall fully cooperate With-City's investigation of and attempts to resolve complaints. 8. Neither City personnel nor Contractor nor Contractor's employees shall be offered or accept gratuities pursuant to CVC section 12110(a). No tow operator or its'employees shall accept any gratuities from a repair shop for Page 5 of 18 the delivery.of.a vehicle not owned'bythe repair shop or the tow operator for the purpose of storage or repair pursuant,to CVC section 12110(c). '9. In=the event Contractor discoversuthat a,vehicl'e which has been towed has a'Vehicle Identification Number (VIN) which-is different that the VIN showing on.the:CHPForm 180, the Contractor will.notifythe:Police Department Traffic Division withimtwenty-four (24) hours of the time of such discovery. 10. Multiple'vehicle,tows (bundling) are permitted only during traffic collisions or of multiple vehicles from a single private property location. 11. Failure to comply with any of the.standards,of service set forth in this Subsection may treated as a material breach of this Agreement. • E. Required Tow'Trucks and Equipment. 1. Contractoryshall-maintain a minimum of three tow trucks with wheel lifts or two trucks with wheel lifts and onetar`carrier to be available for City- generated tows. The trucks must be staffed appropriately and stored at locations sufficient to allow for the mandatory maximum response time The trucks'must have a means of communicating with the Contractor's dispatch,center, preferably via 2-way'radio. At least one truck must be equipped with the means of towing ball-type•trailers. 2. Contractor shall equip, operate and maintain tow trucks covered under this Agreement in accordance with the provisions;in`the CVC, Title 13 of the California-Code,of Regulations, the specifications in this Agreement, .including but not limited to Section 1'0 of the'CHP Tow Service Agreement and in a manner consistent with industry standards and practice. 3. All of Contractor's tow trucks,shall be identified with signssin compliance with CVC section 27907, with-the additional:fequirenientthat suchsigns be,dis'played,on the right and left doors of.,each tow truck. F. Storage Facilities. 1. All vehicles•stored pursuant to this Agreement must be stored within Petaluma city limits. Contractors,shall maintain a storage lot or lots for purposes.of storing vehicles towed pursuant to"this.Agreement which meets the following'requirements: Page 6 of 18 a. The lot shall include a level area large enough to store at least thirty (30) automobiles with at least two (2)feet of clearance between the sides of all vehicles, and at least one-foot of clearance between the front or rear end of any vehicle and the front or rear end,of another vehicle. . b. The lot shall be enclosed by fencingthat complies with all applicable City ordinances and regulations including applicable zoning;regulations and permits; c. The lot shall be available-twenty-four(24) hours a day, seven (7) days a week including holidays:for,,storage::of vehicles towed pursuant to this Agreement;and d. The lot shall be maintained,so;as to be reasonably secure from intrusion by unwanted persons;and adequately lighted. 2. Contractor shall also maintain covered storage on at least one of its storage lots capable:ofstoring at least one (1) vehicle._ 3. Contractor;shall maintain an office at its primary storage lot, staffed twenty-four(24) hours a day, seven (7) days.a-week including holidays by at least one employee, or have an employee available who can arrive at the office within thirty (30)minutes of a City or,citizen request. Contractor shallTrovide:a.phone number that is-answered twenty-four(24) hours a day and shall display that number in a prominent place. 4. An employee of Contractor shall;be,properly trained to conduct busines transactions relating to towing, storage andtrelease of vehicles/property. 5. Contractor shall maintain a security system sufficient to protect the office and the vehicles stored pursuant'-try ythis Agreement. 6. Contractor,shall be responsible forthe'safekeeping and prevention of vandalism of all vehicles and contents'which are stored or,impounded by the City until such vehicle has been released to its owner, or disposed of through'legal process:- Contractor shall comply with police regulations regarding the inventory or removal of property found in police-stored or iinpounded'vehicles. 7. Upon approval by the City, Contractoror'its:employee shall release 'personal property from a vehicle which has been stored/impounded by the City at the request of the vehicle=s registered owner or agent (personal • property.is considered to be items which are not affixed to the vehicle, including but not limited to papers; cell phones,"pull=out electronic equipment, clothes, luggage, tools, etc.). Page 7 of 18 \0 a. The requirement to obtain approval:of the City;prior to release of removed'property may excused by the City ifit is determined by the City that proper safeguards and proceduresareput in place and used by the Contractor. This requirement may hot be waived when a vehicle has been impounded for evidence and investigation. b. Areceipt shall be provided:for thexemovedproperty, with a copy placed in the.stored vehicle. This receiptprocedure shall also,apply to the removal of property by Contractor and/or its eniployee•to.asecured area within the business. 8. Pursuant to California Vehicle Code,("CVC").section 22851(b) and 22651.07(c)(1), no fee shall be charged forrthe;release of a vehicle or personal property during normal business hours: Normal business hours are 8 00.a.M. to 5:00 p.m. Monday through Friday, excepting weekends and state!.holidays. a. Pursuant to CVC,section2285I(b), the maximum charge for a non-business hour release shall be one-half the hourly tow rate, or less, charged for initiallytiowing the vehicle. b. Pursuant to CVC"section,2285i(b),No lien shall attach to any personal property in or on the vehicle 9. Pursuant to CVC"section 10650(a)„theroperatorshall keep a written record of every every veliiele.stored for a period.longer than 12 hours. 10. All of Contractors storage facilitiesshall have valid land use and other regulatory permits, as may be required bylaw. 11. All of Contractor's storage facilities;shall be operated and maintained in compliance with all applicable environmental laws and regulations. H. Vehicle Releases. 1. Stored or impounded vehicles shall not be released unless Contractor is presented with a written release authorized by.the City.- Upon receiving such a release during normal business hours, Contractor shall grant the release and at-no additional compensation,-provide.all.services and equipment necessary to release the'vehicle or property taken from the vehieleowner pursuant to this Agreement. 2. 'Contractoi_-shall complete a Veliicle.In pound,Disposition Sheet (provided by City) for each vehicle released-from impound,.and shall maintain the completed Vehicle Impound Disposition Sheets. Page 8 of 18 3. In the event an owner of an impounded vehicle surrenders title to the vehicle'`toiCont actor, Contractor:shall berentitled to immediately dispose of the vehicle. L Lien Sales. Contractor will comply with the lien sale provisions set forth in Vehicle Code Section 22851, and Civil Code Sections3068.1 to 3074, inclusive. Contractor is responsible for forwarding any excess lien sale proceeds in accordance with state law. SECTION 4 - TOWING AND STORAGE CHARGES A. The maximum-rates which Contractor may charge for the towing and storage of a vehicle pursuant to this Agreement are set forth in Exhibit A, attached hereto and incorporated'herein by reference. B. Contractor shall not charge for moving a vehicle from one of Contractor's lots to another. C. Contractor:shall not conspire, attempt to conspire, or commit any other act of collusion with-any towing Contractor onapplicant for the purpose of secretly or otherwise establishing an understanding<regardingerates,or conditions to a Tow Franchise Agreement-that would bring about any unfair condition which would be prejudicial to the City,the motoring public or other`franchise operators. D. City will compensate Contractor at the rate of$50.00 per vehicle for each abandoned vehicle towed pursuant to California Vehicle Code Section 22669, from the Abandoned and Junk Rotation Tow List. SECTION 5 —FRANCHISE FEE A. Contractor shall pay the City a franchise fee as follows: 1. $75.00per vehicle towed pursuant to the STOP Vehicle Forfeiture/30 Day Impound List; and 2. $2000 per vehicle for all other tows pursuant to:this Agreement, except for tows pursuantto the Police Special Services Rotation Tow List,the Abandoned and Iunk Vehicle Rotation Tow List and those vehicles towed pursuant to Vehicle Code Sections 22651(k) and 22651 (o). Page 9 of 18 B'. Payment Requirements. 1. Franchise will be provided`to Contractor(s) within 10 business days of the:end'of each month. Franchise fee payments shall be due and payable on the fifteenth (15t ) of every month. The payment is to be delivered-to-the Finance Department'w ith a.cop y of the invoice sent by the Police:Department. 2. Franchise fee.payments pursuant-to this Agreement shall be in addition to any other license fees, business license tax, or other fees or taxes required by the City. 3. Each franchise fee payment shall be accompanied by a.statement, verified by Contractor,showing in such form and detailas the City's Finance Directormay require the facts material to determining the amount of the monthly franchise fee. C. Records. Contractor shall at all times.maintain accurate and complete records of each City-generated tow, which shall contain the following information: 1. Name and,address, if available, of the'person whose vehicle was towed; 2. Vehicle-identification number, license plate number, make, year, and model oftowed'vehicle; 3. Date and time request for tow was received; 4. Identify reason for tow by applicable'Rotation Tow List, e.g., Police Special Services, Regular, Abandoned and Junk Vehicle, or STOP Vehicle Forfeiture/30 Day Impound; 5. Date and time of vehicle release; 6. Name of person to whom:vehicle was released; and 7. All of Contractor's fees and charges for-tow, including, but not limited'to, fees for towing, storage, gate fees, repair,'and.lien sale proceeds including the'd,at'e such fees, charges or proceeds were received: D. Contractor-shall,provide City with the;infomiation required to be recorded wider subsection C, above, upon request along with the monthly franchise fee payment. SECTION,6 -TERMINATION The City shall have theright•to?terminate this Agreement without cause, upon thirty (30) days written notice+of termination. City may immediately terminate or suspend this Agreement for Page 10of18 cause upon written notice.to'Contractor. Cause for termination includes, but not limited to, any material breach of this Agreement;failure to comply with applicable laws and regulations; and unacceptable; repeated-and/or unresolved third party complaints. In'the event of termination, Contractor shall deliver to the,City within thirty(30) days of'the date of termination copies of all reports, documents,.and other workperfonmed by Contractor underthis Agreement. Contractor shall pay City-any,outstanding.franchise-fee within 30 (thirty) days df the effective date of termination. SECTION 7— LIVING WAGE ORDINANCE Contractor shall comply fully with the,requirements of Petaluma Municipal Code,Chapter 8.36, Living Wage (the "Living Wage:Ordinance''), as the same may be;amended from time to time Upon the City's request Contractor shall promptly provide to'the City documents and information verifying Contractor's compliance with the requirements of the Living Wage Ordinance, and shall-within,fifteen (l5) calendar days of the Effective Date of this Agreement, notify each of its affected employees as`to-the amount wages and time off that are required to be provided to them pursuant to the Living Wage.Ordinance. Contractor's noncompliance with the Living Wage Ordinance shall.constitute cause for City's:terimination, of this Agreement pursuant to Section 5 hereof In the event that Contractor believes it is not subject to the Living Wage Ordinance pursuant to Petaluma Municipal Code Section 836;040.0 or any other subsection, Contractor shall provide factual documentation acceptable to the City to establish that Contactor is not subject to the Living Wage Ordinance. SECTION 8 -INDEMNIFICATION To the maximum extent permitted by .law, Contractor shall,, at its own expense, indemnify, defend with counsel acceptable to the City, (which acceptance will not be unreasonably withheld), and hold harmless.'City and its officers, officials, employees, agents and volunteers ("Indemnitees") from and against any and all liability, ,loss, damage, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, civil penalties and fines, expenses and costs (including, without limitation, claims expenses, attorney's fees and costs and fees of litigation) (collectively, "Liability") of every nature, whether actual, alleged or threatened, arising out of or in ,connection with the Contractor's work performed under this Agreement or its failure.to comply with any of its-obligations'contained in this Agreement or the terms of this Agreement, regardless of any fault or alleged fault of the Indemnitees: The Contractors obligation to indemnify, defend and.hold,:harmless under this provision shall not be excused because of the Contractor's inability to evaluate Liability; or because the Contractor evaluates Liability and determines that the Contractor is not or may not be liable. 'fhe.Contractor must respond within 30 calendar days to any tender,for defense-and'indemnity by the City,,unless the time for responding has been extended by an authorized representative of the City in writing. If the Contractor ails to accept tender of defense and indemnity within 30 calendar days, imaddition toanyother remedies authorized by law, so much of the money due or that may`become due they.Contractor ,under this Agreement as'shall reasonably be considered necessary by the City, may be retained by the City until disposition has been made of the matter subject to tender, or until the Contractor accepts the tender, whichever occurs first. In the event that the City must file responsive documents in a_matter tendered to Contractor prior to Page 11 of 18 \� Contractor's acceptance of tender, Contractor agrees to.fully reimburse all costs; including but not limited to attorney's fees and costs and fees of litigation; incurred by the City in filing such responsive documents.. Contractof waives any and all rights to express or iniplied indemnity against the Indemnitees concerning any Liability of the Contractor arising out of or in connection with the Services or• Contractor's'_failure to comply with:any of the terms of.this Agreement. SECTION 9 - INSURANCE:REQUIREMENTS A. Contractor and;any..subcontractor shall not commence,work under this Agreement until Contractor and any subcontractor shall have Obtained all insurance required under this section and such insurance shallhave.been,approved by the City Attorney as to forin and carrier and the City's Risk'Manager as to sufficiency. All requirements herein provided shall appear either the body of the insurance policies or as'endorsements and shall specifically bind the insurance carrier. B. Contractor shall maintain`the following minimum'levels:of insurance for the duration of this Agreement from an insurance carrier with a current A.M. Best's rating of no less than ANVIL 1. Minimum.Level of Financial Responsibility-0s required by California Vehicle Code §34631.5) - Bodily injury and'property damage with a combinedsingle limit of not less than'$750,000 for Class A tow trucks. The combined limits for Classes B, C,;;and D shall not be less than $1,000,0001 These minimum standards are to include non-owned and hired auto coverage. 2. Uninsured,Motorist - Legal State of:California minimum, combined single limit. 3. On-FIook Coverage - Insuring the vehicle in tow with limits based on the size-of the tow truck as follows: a. Class A tow truck $50,000 b. Class-13 tow truck $100,000 c. Class C tow truck $200,000 d. Class D tow truck $250,000 4.. Garage Liability - Includes premisesand.operations. Coverage for bodily injury and`property damage withRa combined single limit of not less than $500;000. 5. Garage'Keeper'sLiability -:Shall be the same.minimum as on-hook cOverage for vehicles in the care, custody, and control of the operator in the storage:yard. Page 12 of 18' \5 6. Workers' Compensation Insurance:—Legal Stat of California minimum requirements. C. Any deductibles or self-insured retentions.mustbe declared to and approved by the City. At the:option of the City, either the insurer shall reduces or eliminate such deductibles or self-insured'retentions as respects the City, its officers, officials, employees, and volunteers; or the Contractor>shall procure abond guaranteeing payment Of losses and related investigations, clairnadniinistration and defense expenses. D. The required policies are to contain, or be endorsed to contain the following provisions: 1. The.City;,its,officers;;officials, employees, agents and volunteers are to be covered as insureds as respects:.liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used:by the Contractor; or automobiles owned,leased, hired or borrowed by the-Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers,officials, employees, agents or volunteers. 2. For anyclainms related to this Agreement, the Contractor's insurance coverage shall be primary insurance asrrespects the City, its officers, officials,;employees, agents and volunteers. Any insurance or self- insurance.Maintained by the City, its officers; officials, employees, agents or volunteers,shall be excess of the Contractor's insurance and shall not contribute with it.. 3. Any failure to comply with reporting or othcr provisions of the policies including'breaches of warranties shall not affect coverage provided to the City;its officers, officials, employees, agents or volunteers. 4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought except, with respect to the limits of the'insurerts liability. , 5. Each insurance policy required by thisclause shall be endorsed to state that coverage shall not be suspended; voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt;requested, has been given to the City. SECTION 10 - OWNERSHIP OF MATERIALS All reports, documents or other materials developed or discovered byContractor in the performance•olthis Agreement or any other person engaged directly or:indirectly by Contractor to perform Contractor's services are the City's property without restriction or limitation upon Page 13 of 18. \ln their use; Contractor may use such reports, documents'and:other matefials'related to the conduct of its business. SECTION,11—GENERAL PROVISIONS A. Non-exclusive franchise. The City reserves the right to enter into a non-exclusive franchise agreement with an additional tow service provider at any time that the City, in its sole discretion, determines this would bein the best interest of the City. • B. Integration. This;Agreement and all Exhibitsrattached hereto and incorporated by reference herein, contain all of the agreements„representations and understandings of;the.Parties, and supersede and replace any previous understandings, commitments, or agreements, whether oral or written. C. Severability. Should.any provision or parttof this Agreement be found to be invalid or unenforceable, only that particular provision or part shall be inoperative, and all remaining provisions and parts of this Agreement shall continue in full force and effect and remain bindingron the parties. D. Waiver. ThesContractor agrees that the.City's waiver of any breach or violation of any provision of this;Agreement shall not be deemed to be a waiver of any other provision or a waiver of any subsequent breach or violation of the same or any other provision. The,City's acceptance ofthe performance of any of Contractor's:services will not be a waiver of any provision of this Agreement. G. Independent Contractor. It is understood and agreed that in the performance of this Agreement,Contractor (including its employees and agents) is acting in the capacity of.an independent contractor, and,notas an agent or employee of the City. Contractor has full control over the means and methods of performing said services, and`is Solely responsible for its acts and omissions, including the acts and omissions of'its'employees and agents. F. Compliancewith Laws. Contractor shall comply with all applicable laws, ordinances, codes and regulations of the federal, state-and-local,governments, including without limitation, any and all laws Specified:elsewhere in this Agreement. .Non-compliance shall constitute a material,lbreach of this Agreement. G. Conflict of Interest. Contractor shall,avoid all conflicts of interest or the. appearance of conflicts of interest in performance of this Agreement. H. Nondiscrimination. Contractor shall not discriminate in the provision of service or in the employment of persons engaged in.theperformance of this Agreement on account of race, color, national origin, ancestry, religion, gender, marital status, sexual orientation, age, physical or;mental disability in violation of any applicable local, state or federal laws. Page 14 of 18 Confidential Information. All data, documents, discussions oi:other information developed or received by or for Contractor in,performance of this Agreement are confidential and:must not disclosed to any person except as?authorized by the City, or as required by law. J. Assignability. The parties agree that the expertise and experience of Contractor are material considerations for this Agreement. Unless specifically authorized by this Agreement, Contractor may not assign the performance of any obligation or interest under t} is.Agreement without the prior written consent of the City. Any attempt by Contractor to assign this Agreement,.in violation of this Section, will be voidable at the City's sole option. K. Subcontractors: Contractor must obtain the,City's written consent for subcontracting any services pursuant to this Agreement. Contractor shall ensure that Contractor's subcontractor(s) comply with this Agreement by requiring any or all of Contractor§.subcontractor(s).to sign an agreement with Contractor requiring compliance with this Agreement. L. Governing Law andVenue. This Agreement.shall,be construed and its performance enforced under California law. Any litigation between the parties arising from this Agreement shall be venued in the Superior Court of California in the County of Sonoma. M. Notices. 1. All notices and other communications required or permitted to be given under this Agreement must be in writing and must be personally served, or mailed,postageprepaid via U.S. Mail, or sent via courier service, addressed to the respective parties as follows: To,City: City Clerk _ City of Petaluma P. 0. Box 61 Petaluma, CA 94593 AND Traffic Division Sergeant Petaluma Police Department 969 Petaluma Blvd. North Petaluma, Ca. %942 To Contractor: Page 15 of 18 �% 2. Notice will be effective on the date personally delivered'or if sent by courier service,on the date of receipt If mailed, notice be effective three.(3') days after deposit in the mail. 3. The parties,may change their respective addresses in accordance with the provisions of section, by written notification to the other party at the address(es) above. N. Headings. The"headings of the sections and exhibits of this Agreement are inserted for convenience only. They do not constitute part of this Agreement and are,notto be used in its construction. SECTION 12 —ACKNOWLEDGEMENT, CERTIFICATION AND WAIVER By executing this Agreement, Contractor agrees to all of the terms and conditions set forth herein, and acknowledges that this Agreement and each Of the tennis and conditions herein, including the franchise=fee,constitutes+a proper exercise of the City's police power under the City's Charter and pursuant to California law, including, but not limited to the provisions of the California Vehicle Code. Contractor,further acknowledges that Contractor has had the opportunity to have this Agreement,reviewed by Contractor's.legal;counsel, and that Contractor has freely entered into this Agreement. Contractor herebywaives any right to challenge any part of this Agreement or the procedures by which°this Agreement;;including the franchise fee, is adopted and implemented;byCity. By executing this Agreement Contractor further certifies that all tow drivers operating under this Agreement are qualified and,competent and meet the qualifications:and,standards of service for drivers contained herein. Contractoi's.initials, affixed below, indicate.that Contractor has read, understood and agreed to this provision of the Agreement. Contractor's initials: WHEREFORE, City hereby awards Contractor a non-exclusive franchise to provide towing and storage services, pursuant to California,Vehicle Code section 1211-0 and the Petaluma City Charter. in accordance with the.terms:.and-conditions set forth herein. Page 16 of 18 1°� CITY OF'PETALUMA 'CONTRACTOR. By:• City Manager Signature Name ATTEST: Title [Owner or authorized capacity] City Clerk • Address APPROVED AS TO FORM: City State Zip City Attorney TaxpayerI.D. Number APPROVED: • Petaluma Business Tax Certificate Number Department Director APPROVED: Risk Manager APPROVED: Finance Director Page 17 of 18 ao EXHIBIT A TOWING-AND STORAGE CHARGES The maximum rates which Contractor may charge for the towing and storage of a vehicle pursuant to this Agreement are as follows: Tow , . : :..,;..:.,,.,: . . . $150.00 Storage(Outside) $ 40.00/day Storagei(Inside) $ 40.00/day Release Fee/Gate.Fee $ 75.00 Service Call....(per hour) . . . . ... . ... $150.00 Police-`Special.Services . . . . . .,. . . . $ 50:00 These maximum rates are subject to change during the term of this.Agreement to reflect increases in rates as provided by the California Highway Patrol's rate structure for Sonoma County. • Page 18 of 18