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HomeMy WebLinkAbout13- City Manager r 8 ORIGINAL CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION From: Charles McNeely, City Manager Subject: Resolution of the Mayor and Common Council of the City of San Dept: Office of the City Manager Bernardino authorizing the City Manager to execute Tow Service Agreements Date: March 29, 2011 with the six tow carriers (Tri City Towing, Danny's Towing, City Towing, Wilson Towing, LLC, Big Z Autoworks, Inc., Hayes Towing) participating in the program and operating within the incorporated boundaries of the City of San Bernardino M/CC Meeting Date: 4/4/2011 Synopsis of Previous Council Action: July 13, 1995 First Tow Service Agreement was approved by Council (Resolution #1995-2411) requiring a minimum storage capacity of 200 vehicles. July 8, 1998 Resolution #1998-195 was approved by Council thereby repealing the previous resolution. A population ratio was created permitting one tow carrier to operate within the City per 40,000 residents August 15, 2005 Resolution 05-286 Established Standard Towing Criteria and establishing a population ratio permitting one tow carrier to operate within the City per 35,000 residents December 19, 2005 Resolution 05-434 through 05-439 Authorized Tow Service Agreements with six Tow Carriers September 8, 2008 Resolution 2008-347 Set Franchise Fees at $38,841 per Month Total and Amended Resolution 05-286 and the City's Existing Tow Service Agreements to Require the Police Department to determine the franchise fees annually. March 4, 2009 Impound Yard concept presented to the Ways & Means Committee and directed to return with a comprehensive business plan. July 22, 2009 Business Plan presented to Ways & Means Committee August 5, 2009 Ways & Means Committee recommended the item be forwarded to the Common Council for Consideration I I i August 17, 2009 Motion to approve a Police Operated Impound Facility was not approved considered, but not approved by the Mayor and Common Council February 16, 2010 Mayor and Common Council Approved Tow Carrier franchise fees as required by Resolution 2005-285 and the City's existing Tow Service Agreement July 6, 2010 Council Directed Staff to Update the Business Plan for FY 2010/2011 January 10, 2011 Mayor and Common Council Directed the City Manager to place an agenda item on the Council meeting agenda for February 22, 2011, either (1) establishing the revised franchise fee for Tow Services Agreements for calendar year 2011, or (2) approving a revised form of Tow Services Agreement. February 22, 2011 Mayor and Common Council approved a new franchise fee of $21,299 per month. Recommended Motion: 1) Adopt a Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the City Manager to execute Tow Service Agreements with the six tow carriers (Tri City Towing, Danny's Towing, City Towing, Wilson Towing, LLC, Big Z Autoworks, Inc., Hayes Towing) participating in the program and operating within the incorporated boundaries of the City of San Bernardino Signature^� Contact person: James Graham Phone: 3557 Supporting data attached: Staff Report Ward: City Wide FUNDING REQUIREMENTS: Amount: $0 Source: Finance: Council Notes: s"'� o��- �D Agenda Item No. 13 Gy-�Oy--.;Wr CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Staff Report i i SUBJECT Resolution of the Mayor and Common Council of the City of San Bernardino establishing a new Tow Service Agreement with the six tow carriers (Tri City Towing, Danny's Towing, City Towing, Wilson Towing, LLC, Big Z Autoworks, Inc., Hayes Towing) participating in the program and operating within the incorporated boundaries of the City of San Bernardino. BACKGROUND On July 13, 1995 the first Tow Service Agreement ("TSA") was approved by Council (Resolution 91995-2411). It required a minimum storage of 200 vehicles as is required today. A population ratio was created permitting one tow carrier to operate within the City per 40,000 residents. The carriers were identified as City Towing, Big Z Towing, Tri-City Towing, Wilson Towing, and Loma Linda Towing. There was no franchise fee and there was a rotation agreement but not definitive. On July 8, 1998 Resolution #1998-195 was approved by Council and repealed the previous resolution. The language in the TSA remained fairly consistent except the population ratio was changed to read one tow carrier for every 35,000 residents, which exist today. All tow carriers were subject to a vehicle towing administration release fee set by resolution and a franchise fee set forth in the TSA Agreement. On August 15, 2005, the Mayor and Common Council passed Resolution 2005-286 establishing standard towing criteria for the six tow carriers on the City's tow rotation. On December 19, 2005, Resolutions 2005-434 through 439 were passed approving contracts with the six tow carriers to tow vehicles at the City's request. On September 8, 2008, Resolution 2008-347 was passed amending resolution 2005-286 and the existing Tow Service Agreements to require the police department to determine tow carrier franchise fees annually based on a cost analysis and the average number of tows during the prior fiscal year. This resolution authorized the execution of amendments to agreements for tow services with the six tow carriers and set the monthly towing franchise fees at $38,841 per month total for the City's six tow carriers. On February 16, 2010, Mayor and Common Council approved Resolution 2010-28 changing the franchise fee to $31,689.28 per month or $5,281.55 per carrier. Hence, in FY 10-11, the tow franchise revenue was budgeted at $380,300 which is $85,700 less than the prior fiscal year. On February 22, 2011 The Mayor and Common Council revised the franchise fee for the tow carriers and referred further work on the Tow Service Agreement to the Ways & Means Committee. On March 15, 2011 staff completed its negotiations of a new Tow Service Agreement with the tow carriers. The Ways & Means Committee was updated on the proposed changes to the Tow Service Agreement. The Committee agreed to allow staff to continue its negotiations with the Tow Carrier and come back with a final draft agreement at its next meeting. The Ways & Means Committee, during a special meeting held on March 28, 2011, reviewed the draft Tow Service Agreement and offered additional recommendations and referred the final Agreement to the Mayor & Common Council for approval. The following summary represents the provisions negotiated by staff and modified by the Ways and Means Committee: Tow Franchise Fee and Administrative Release Fee The City of San Bernardino imposes a tow franchise fee and an administrative release fee on all tow carriers operating under the program. As allowed by the Vehicle Code, the purpose of the fees is to recover the costs of administration of the program to the extent allowed by law. The City of San Bernardino through the Police Department currently imposes a tow franchise fee of$36.00 per tow. In addition, the City requires an administrative release fee to be paid in the amount of$230.00 per vehicle release. There has been a concern for several years that the City of San Bernardino has not been receiving all the revenue to which it is entitled. This is especially the case in situations when the tow carrier impounds a vehicle and sells the vehicle to a third party because the owner has abandoned it. In these instances, the City has not received the vehicle release fee. A new cost analysis, conducted by the Matrix Consulting Group has examined the costs associated with administering the Tow Service Agreement. Based on these analyses, it costs the Police Department $232 per tow to manage this activity. Of that cost, not all is legally recoverable. (For example, no release fee may be collected from the legal lien owner of a vehicle which repossesses the vehicle when it is impounded). Staff discussed with the Tow Carriers and their legal representative the City's costs and the need for additional revenue. During negotiations with the Tow Carriers, staff agreed to a fixed 5-year term of the Agreement, the possibility of assignment of the Agreement during that term with Council approval, and the Council's determination not to pursue its own impound yard. Based upon these negotiations and the analysis of the overall costs associated with operating the program, the parties agreed on a franchise fee of $70.00 with a 3% increase in the amount each fiscal year. The following further details the terms and conditions of the proposed Agreement: Year 1 (effective date of Agreement, 2011, through June 30, 2012)— $70.00/vehicle Year 2 (July 1, 2012 through June 30, 2013) -$72.10/vehicle Year 3 (July 1, 2013 through June 30, 2014) - $74.25/vehicle Year 4 (July 1, 2014 through June 30, 2015) - $75.50/vehicle Year 5 (July 1, 2015 through June 30, 2016) - $79.00/vehicle It is further recommended that the administrative vehicle release fee be increased to $349 as set out in the Matrix study. Term of Tow Service Agreement It is recommended that there be a fixed 5-year term of the Agreement based upon the amortization period for the purchase of new towing equipment. Audit Requirements As in previous Agreements, the City may conduct an audit of all tow carriers in the program. However, the revised Agreement provides for penalties and interest against any tow carriers found to provide false or misleading financial information to the City. In the event that an audit shows a 10% or greater variance in revenues in favor of the City,the following amounts shall be owed by the offending party: 1. the amount owed as a result of the audit; 2. simple interest at the rate of 10% on the amount owed, compounded daily from the due date; 3. pay the reasonable cost of the audit 4. In addition, In the event that an audit shows an 10% or greater variance in revenues owing to the City, the following amounts shall be paid to the City by that Tow Carrier: a. the amount owed as a result of the audit; b. simple interest at the rate of 10% on the amount owed, compounded daily from the due date; c. the amount owed including interest shall be paid within 10 calendar days of notification of deficiencies; and d. pay the reasonable costs of the audit 5. In the event the audit determines a 15% variance in revenues owing to the City, such result may be ground for action under Section 17 of the Agreement. Assignment As revised, the assignment provisions state that any change of ownership must be reviewed by the Police Department, with a recommendation to the Council for its approval or denial of the assignment of the contract to the new/proposed new owner. There is no provision to go to bid unless the assignment is denied. FINANCIAL IMPACT— For FY 2010-11 the tow franchise revenue was budgeted at $380,000 and the administrative release fee was budgeted at $360,000 for a total cost recovery of$740,000. It is projected that the total cost recovery of the proposed Tow Service Agreement will generate slightly more than $1 million annually. Although the actual number will vary the projections are based on an estimate of 7,000 tows per year for the term of the contract. see the attached Financial Impact Report). RECOMMENDATION Adopt Resolution No. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE NEW TOW SERVICE AGREEMENTS WITH THE SIX TOW CARRIERS (TRI-CITY TOWING, DANNY'S TOWING, CITY TOWING, WILSON TOWING, LLC., BIG Z AUTOWORKS, INC. AND HAYES TOWING) PARTICIPATING IN THE PROGRAM AND OPERATING WITHIN THE INCORPORATED BOUNDARIES OF THE CITY OF SAN BERNARDINO AND AMENDING RESOLUTION NO. 2005-286 ACCORDINGLY M H o V z � m LA c: m m- -II n ts7 < < z M m -I r0 r0 O �+ N N N N N m N (<D O M (<D v�" � O O O O O 3 3 3 3 N N N F-' 1--� ll1 W N 1--+ T C C C C N N N N N z r0 m m m m fmi by m to A w N Z a I G a I < n (] T to 3• ? '< y rNf r�Y N T ►l m 7 O 'y T m d T N Vmf fop < v 3 (<D. m I. H CD O in to ih iA IA O ;z C m n+ V V V V V < -q < FO+ p 01 {a N O (D Or n N d H O A N 1-+ O Lh O l0 Ol O O (D C T N 3 M fD m ~ m N z � N 00 O m T M v V v V v O m 0 0 0 0 0 OOOO 0 0 0 0 0 0 Ln N O D O x v Om 1 .6 = Vf iR Vf t/} < i/f V1. in. "n tD r O p n m m ? V N N l�0 N V W W 00 to N O O O N G rp t0 ta W O O O O O N W W w o O O O r+ N �L• iA IA iA n r w ~ v+ w C w 0 N Pi r w w o w 0 0 0 fa N O w N N F W N F .. W W o. �a V1 w N A O O O y to to j � O Aw N A w to f, at o w 0 0 0 V). j ooi L^ Ul� v~i \ o+ w w w w 00 0 0 0 I 1 RESOLUTION NO. i 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 3 BERNARDINO AUTHORIZING THE CITY MANAGER TO EXECUTE TOW SERVICE AGREEMENTS WITH THE SIX TOW CARRIERS (TRI-CITY TOWING, DANNY'S TOWING, 4 CITY TOWING, WILSON TOWING, LLC., BIG Z AUTOWORKS, INC. AND HAYES TOWING) PARTICIPATING IN THE PROGRAM AND OPERATING WITHIN THE 5 INCORPORATED BOUNDARIES OF THE CITY OF SAN BERNARDINO. 6 WHEREAS, on July 13, 1995, the Mayor and Common Council approved the first Tow 7 Service Agreement pursuant to Resolution 1995-2411, which required a minimum storage of 200 8 vehicles, as is required today; A population ratio was created permitting one tow carrier to operate 9 within the City per 40,000 residents; The carriers were identified as City Towing, Big Z Towing, 10 Tri-City Towing, Wilson Towing, and Loma Linda Towing; and There was no franchise fee and a 11 non-definitive rotation agreement; and 12 WHEREAS, on August 15, 2005, the Mayor and Common Council passed Resolution 2005- 13 286 establishing standard towing criteria for the six tow carriers on the City's tow rotation, and on 14 December 19, 2005, Resolutions 2005-434 through 439 were passed approving contracts with the 15 above mentioned five tow carriers and Hayes Towing to tow vehicles at the City's request; and 16 WHEREAS, on September 8, 2008, Resolution 2008-347 was passed by the Mayor and 17 Common Council amending Resolution 2005-286 and the existing Tow Service Agreements to 18 require the police department to determine Tow Carrier Franchise Fees annually based on a cost 19 analysis and the average number of tows during the prior fiscal year and authorized the execution of 20 amendments to the agreements for tow services with the six tow carriers and set the monthly towing 21 franchise fees at$38,841 per month total for the City's six tow carriers; and 22 WHEREAS, on February 16, 2010, Mayor and Common Council approved Resolution 23 2010-28 changing the franchise fee to $31,689.28 per month or $5,281.55 per carrier and thus, in 24 FY 10-11, the tow franchise revenue was budgeted at $380,300 which is $85,700 less than the prior 25 fiscal year; and 26 WHEREAS, on February 22, 2011, Mayor and Common Council approved a new franchise '7 fee of$21,299 per month; and 28 WHEREAS, the City Manager's office has worked with the Police Department and with j 't a 1 s i I i 1 Matrix Consulting to update the fees charged; and 2 WHEREAS, the City Manager's office has worked with special counsel to revise and update 3 the form of Tow Services Agreement attached to Resolution 2005-286 to reflect updated fees and 4 some minimal requirements; 5 WHEREAS, the Tow Services Agreement has been reorganized for ease of understanding 6 without substantial change to the requirements placed upon Tow Carriers, as follows: 1) 7 requirements for photographing impounded and stored vehicles; 2) requirements for available in- 8 door storage of vehicles and evidence; 3) more specific audit provisions than contained in the prior 9 form of agreement; 4) updated assignment provisions; 5) increase towing franchise fees in exchange 10 for no city impound yard; and 6)provide for a 5 year term of the Agreement; and 11 WHEREAS, Resolution No. 2005-286, as amended, continues to govern operations under 12 the Tow Services Agreement; and 13 WHEREAS, as directed by the Mayor and Common Council, and based upon the cost report 14 prepared by Matrix and the additional cost information provided by the Police Department, the 15 actual cost of each tow when all costs are considered at this time is $232/vehicles, although state 16 law prevents collection of much of this cost; and 17 WHEREAS, the administrative lien release fee also has been calculated by Matrix to be 18 $349; and 19 WHEREAS, after negotiation, the Tow Carriers have proposed and staff recommends a 20 franchise fee in the amount of$70/vehicle, increasing annually on a fiscal year basis at 3% during 21 the 5-year term of the Agreement; and 22 WHEREAS, the Mayor and Common Council find that the fees as set out here and in the 23 staff report and Tow Services Agreements are no more than the actual cost for the administrative 24 services incurred by the City, including direct and indirect overhead; and 25 WHEREAS, the Mayor and Common Council further find that the Tow Carriers agree to the 26 amount of the Franchise Fee and that the Franchise Fee does not exceed the actual cost of the 17 administration of the towing program; 28 WHEREAS, on February 16, 2011, and thereafter on March 9, 2011 and March 28, 2011 2 i 1 staff from the City Manager's office met with representatives of the six Tow Carriers to review and 2 discuss changes to the Tow Services Agreement and the updated fee structure; and 3 WHEREAS, on March 9, 2011 and March 28, 2011, the franchise fees and the agreement 4 were reviewed and considered by the Ways & Means Committee, and some of the Tow Carriers 5 were present and participated at those meetings; and 6 WHEREAS, the Tow Carriers (through their attorney) and staff have agreed on the contents 7 of the revised Tow Services Agreement; and 8 WHEREAS, upon approval by the Mayor and Common Council, each of the six existing 9 Tow Carriers will execute a new Tow Services Agreement which replaces any and all prior such 10 agreements; and 11 WHEREAS, the six tow carriers who will sign the new Tow Services Agreement are Tri 12 City Towing, Danny's Towing, City Towing, Wilson Towing LLC, Big Z Autoworks, Inc. and 13 Hayes Towing; and 14 WHEREAS, this action is exempt from CEQA as a statutory exemption for setting of rates 15 and charges not used for capital projects. 16 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED 17 BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 18 FOLLOWS: 19 Section 1. The Council hereby finds and determines that the facts and circumstances set 20 forth in the Recitals hereof are true and correct in all respects. 21 Section 2. The Council hereby authorizes the City Manager to execute the new Tow 22 Services Agreements with City Towing, Hayes Towing, Danny's Towing, Tri-City Towing, Big "Z" 23 Autoworks and Wilson Towing LLC, copies of which are attached hereto, marked as Exhibits "A- 24 F," and incorporated herein by this reference. 25 Section 3. This Resolution shall take effect upon its adoption and execution in the manner 26 as required by the City Charter. ?7 /// 28 ///// 3 2 3 4 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CITY MANAGER TO 5 EXECUTE NEW TOW SERVICE AGREEMENTS WITH THE SIX TOW 6 CARRIERS (TRI-CITY TOWING, DANNY'S TOWING, CITY TOWING, WILSON TOWING, LLC., BIG Z AUTOWORKS, INC. AND HAYES 7 TOWING) PARTICIPATING IN THE PROGRAM AND OPERATING WITHIN THE INCORPORATED BOUNDARIES OF THE CITY OF SAN 8 BERNARDINO. 9 10 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 11 Common Council of the City of San Bernardino at a meeting thereof, 12 held on the day of , 2011, by the following vote to wit: 13 Council Members: Ayes Nays Abstain Absent 14 MARQUEZ t 15 VACANT 16 BRINKER 17 SHORETT KELLEY 18 JOHNSON 19 MC CAMMACK 20 21 22 Rachel G. Clark, City Clerk 23 The foregoing Resolution is hereby approved this day of , 2011. 24 25 Patrick J. Morris, Mayor 26 City of San Bernardino 17 Approved as to Form: 28 By: Timothy J. Sabo 4 AGREEMENT FOR TOW SERVICES (EXISTING TOW CARRIERS) THIS AGREEMENT FOR TOW SERVICES(this"Agreement")is entered into this fourth day of April, 2011,by and between the CITY OF SAN BERNARDINO("City") and City Towing (Tow Carrier"or"Towing Carrier") effective April 4, 2011 (the"Effective Date"). RECITALS A. The Vehicle Code authorizes City regulation of involuntary towing and storage with appropriate compensation therefore, which compensation covers the reasonable cost (including direct and indirect overhead) as well as franchise fees; and B. City has adopted Resolution No.2005-286,as amended by Resolution No.2008-347, "Establishing Standard Criteria for Companies to Provide Tow Services"and the Exhibits attached thereto; C. The Resolutions cited above presently provide for a towing rotation franchise within the City for the more efficient regulation and operation of tow companies with the ratio of one tow company chosen for the rotation for each 35,000 people within the City; D. The City and the six (6) Tow Carriers currently on the rotation have agreed that it promotes ease of operation to restate such existing requirements in one Agreement which reorganizes the proposed model contracts for existing and new Tow Carriers as those proposed contracts were set out in Resolution 2005-286 and that this Agreement contains the same provisions regarding operation of the tow rotation and requirements for Tow Carriers; E. City shall not pursue the establishment of an impound yard. F. In consideration Tow Carriers have agreed to the revised or additional provisions including but not limited to those regarding franchise payments and audits; G. This revised and updated Agreement,upon execution by each of the six(6)existing Tow Carriers, shall supersede in their entirety any and all prior agreements between the City and each Tow Carrier; and H. City finds and Tow Carriers agree that the compensation and other provisions of this Agreement meet the requirements of all applicable laws. NOW, THEREFORE, the parties hereto agree as follows: 1. Recitals. The Recitals set out above are true and correct. 2. Provision of Tow Services by Tow Carrier Exhibit "A" 4834-4847-6167.1 1 a. Term; Extension at City's Option: This Agreement shall commence on the Effective Date for a term of five years unless sooner terminated hereunder. This Agreement may be extended as to the Tow Carrier upon the City's sole determination that Tow Carrier is in compliance with all terms and conditions hereof. Such an extension shall be for an additional 5years. There is no promise and should be no expectation of such extension. Failure to grant such extension shall result in termination of this Agreement, which termination is not subject to the appeal provisions hereof or of Resolution No. 2005-286. At the end of the term of the Agreement, whether or not extended,there shall be no more extensions of this Agreement and Tow Carrier understands it is not entitled to any such additional extension, nor may the City grant such additional extension. This Agreement confers a privilege and not a right; b. Tow Carrier hereby agrees to provide Tow Services to the City pursuant to terms and conditions contained in this Agreement. "Tow Services"means the following types of nonconsensual towing initiated by the City,including but not limited to code enforcement tows: (i) towing of involuntarily impounded vehicles (where such impound is authorized under the Vehicle Code) to the Tow Carrier's storage yard and storage there; and (ii) towing and storage of non- impounded vehicles when directed to do so by City personnel or by the owner (owner's request tows); C. Whenever a vehicle has been involved in an accident or a traffic violation,and the owner or someone delegated by the owner is present and is capable of removing the vehicle from the street with reasonable dispatch,and the vehicle is not needed for criminal evidence,City and/or Tow Carrier shall permit the owner or his delegate to remove the vehicle or call a tow carrier of his or her own choice to remove the same;provided, however, that if the street cannot be cleared for safe public use with reasonable dispatch by the above method,and in all situations other than above set forth, a Tow Carrier from the top of the rotation list will be called by the City; and d. This Agreement supersedes any and all prior agreements between the parties as to the subject matter hereof. 3. General Requirements of Tow Carriers: a. Tow Carrier shall comply with all rules,regulations and laws of the State of California,the County of San Bernardino and the City of San Bernardino,including but not limited to those applicable to storage facilities. Tow Carrier shall also comply with all provisions of the Resolution of the Mayor and Common Council of the City of San Bernardino Establishing Standard Criteria for Companies to Provide Tow Services for the City of San Bernardino as said Resolution exists and/or as said Resolution may be amended from time to time; b. Tow Carrier shall specifically comply with Exhibits A through E of Resolution No. 2005-286 attached thereto and set out as follows: Exhibit A—Minimum Tow Service Requirements Exhibit B - Preliminary Application Review Exhibit C - Towing Carrier Selection Process 4834-4847-6167.1 2 Exhibit D- Selection Process Exhibit E- Rights of Persons Whose Vehicles are Towed at the Request of City C. No Towing Carrier or applicant shall be directly involved in the towing related business of any other Towing Carrier or applicant on the City's tow rotation; d. Storage facilities owned by a Towing Carrier,and shared with another Towing Carrier, shall be approved only if the owner-Tow Carrier charges for the space exclusively on a flat monthly rate rather than a vehicle-by-vehicle basis, or combination thereof. Facilities shared by Towing Carriers shall be physically separated and secured from each other; e. The City shall conduct, at a minimum, one annual meeting with all Tow Carriers to discuss issues concerning the tow rotation. All meetings shall be mandatory for the Towing Carrier or Towing Carrier's designee wishing to remain on rotation. The City shall give the Towing Carrier 30 day's prior written notice of these meetings. The City may call additional required and noticed meetings with one or more Tow Carriers to address issues arising under this Agreement; and f. Tow Carrier understands and agrees that the Police Department or its designees may conduct annual reviews of Tow Carrier's operations to insure compliance with the regulatory and other requirements of this Agreement. Notwithstanding, the City and Police Department reserve the right to conduct reviews of Tow Carrier's operations at any time when health, safety or welfare concerns require such immediate review. 4. Towing Requirements: a. Rotation System:Agree to a rotation system established by the City; b. Carry a broom,trash can and sand,clean and remove broken glass,spilled oil, or gasoline from the area before departing, unless directed not to do so by police officers and/or designated City employees at the scene; C. Insurance: Each Tow Carrier shall maintain insurance pursuant to the requirements set forth below. The City shall be named as an additional insured on all policies including the workers compensation policies. Tow Carriers shall provide an endorsement to each policy showing the City as an additional insured. The Tow Carrier shall maintain the following minimum levels of insurance from an insurance carrier admitted in California, or admitted in the state in which the Tow Carrier business is located, and is authorized to do business in California: L Minimum Level of Financial Responsibility(as required by Section 34631.5 of the California Vehicle Code)—Bodily injury and property damage with a combined single limit of not less than $750,000 for Class A tow trucks. These minimum standards are to include non-owned and hired auto coverage. ii. Uninsured Motorist—Legal minimum combined single limit. 4834-4847-6167.1 3 On-Hook Coverage/Cargo insuring the vehicle in tow with limits based on the size of the tow truck; iv. Garage Liability/Garage Keeper's liability — Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than $500,000. Proof of insurance shall be in the form of a certificate of insurance. Policy expiration or cancellation will immediately nullify the Agreement for Tow Services between the Tow Carrier and the City. The Tow Carrier's insurance policy shall provide for not less than 30 days written notice to the City in the event the insurance policy is canceled or is due to expire; d. Every tow truck which responds to calls for service within the City pursuant to this Agreement shall be clearly marked on both sides of the cab with the name and telephone number of the Tow Carrier which operates the truck; and e. The Tow Carrier shall not display any sign or engage in any advertisement indicating an official or unofficial connection with the City or Department of Motor Vehicles. 5. Storne of Vehicles: Pursuant to the requirements hereof, a Tow Carrier shall transport vehicles or to the Tow Carrier's facility for storage and shall meet the following minimum requirements: a. Have a minimum storage space for 200 vehicles with a minimum of twelve inside spaces; outside storage lots must be adequately lighted; b. Provide for secure inside evidence storage and have the ability to provide secure in-door storage for vehicles upon request of the Police Department; C. Have an attendant on call twenty-four(24)hours a day,seven days a week at place of business; d. Have no more than two telephone numbers listed with any City department; e. Store towed vehicles in a safe and protected space where the vehicles and their contents will not be accessible to thieves nor be damaged by activity in the Tow Carrier's establishment or from the elements or by vandals; no vehicles shall be left parked or stored on the public streets at any time; in no event shall the City be liable for any theft, vandalism or damage occurring to any such vehicle or its contents; f. Post a tag on the windshield on all cars ordered impounded by the City; g. Furnish each owner with an itemized billing and collect towing and storage charges on each stored vehicle from the owner; in no event shall the City be liable for any such charge; 48344847-6167.1 4 f I I h. Confirm that the CHP Form 180 prepared by PD is accurate after PD inventories the contents.;p-prior to taking possession of any vehicle,and immediately before release, digitally photograph in a manner which shows the date and time on the photograph the inside and outside to document condition of vehicle and its contents and retain such photograph in a secure location for at least one year i. Release no vehicle without first having obtained a release from the City to do so; j. Have adequate equipment to handle calls from the City and storage of motor vehicles; k. The Tow Carrier shall operate from a location within the incorporated boundaries of the City, and all of the facilities necessary to comply with the provisions of this Agreement shall be located within the incorporated boundaries of the City; 1. The Towing Carrier shall be responsible for the security of vehicles and property at the place of storage. At a minimum, a fenced or enclosed area shall be provided. The Towing Carrier is responsible for the reasonable care,custody,and control of any property contained B in towed or stored vehicles; M. The Towing Carrier may not remove property from an impounded vehicle. The Towing Carrier shall obtain approval from the City prior to the removal of any property from a stored vehicle and shall provide a receipt,with a copy placed in the stored vehicle. The requirement to obtain approval from the City prior to the removal of property may he excused by the City if it is determined that proper safeguards and procedures are utilized by the Towing Carrier; n. Upon approval from the City, the Towing Carrier shall release personal property from a stored vehicle at the request of the vehicle registered owner or agent; o. There shall be no charge for the release of personal property during normal business hours. Towing Carrier may charge an after-hours release fee for property released after normal business hours, consistent with the after-hours vehicle release provisions; P. Personal property is considered to be items which are not affixed to the vehicle. Personal property from a stored vehicle shall be released upon request of the vehicle registered owner or agent. Responses are mandatory on weekends, holidays, and outside normal business hours, provided the vehicle's current registered owner or owner's authorized agent are available for return of personal property. Payment for an after-hour release of property may be required at the time of the release; q. Cargo shall be released upon demand of the carrier or pursuant to a court Order; r. The primary storage facility shall normally be at the same location as the business address. If not at the same location, there shall be no charge for any additional distance traveled to and from a secondary location. The vehicle and/or personal property shall he released at 4834-4847-6167.1 5 the primary storage facility or place of business upon request of the registered owner or a person having a legal entitlement to the vehicle and/or property; S. Prior to the utilization of new storage facilities that were not listed on the application for rotation tow listing,the Towing Carrier shall furnish the address and obtain the City's approval; t. Secondary storage facilities shall be located reasonably close to that main business office; U. All storage facilities shall meet all legal requirements for such facility; V. Towing Carrier's place of business shall have a sign that clearly identifies it to the public as a towing service. The sign shall have letters that are clearly visible to the public from the street. The sign shall be visible at night; w. For the purpose of this Agreement for Tow Services,"normal business hours" shall not be less than 8 a.m.to 5 p.m.,Monday through Friday, except for the following recognized holidays:New Year's Day,Martin Luther King Day,Presidents'Day,Memorial Day,Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, day after Thanksgiving Day, and Christmas Day; and X. Business hours shall be posted in plain view to the public.Offices staffed with only one employee may be closed for one hour at lunch. A sign shall be posted with the reason for closure. The sign shall have a phone number where a request will result in an immediate response to release property or vehicles. Response to the office shall be within the time frame required for tow response. 6. _Towing Equipment: Tow vehicles shall be rated at a minimum of 14000 GVWR. (Class A) a. Tow Track and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chasses Gross Vehicle Weight Rating (GVWR) and the classification system used by the American Trucking Association(ATA)and truck manufacturers; b. Towing Limitations: i. The total weight of the truck, including the lifted load, shall fall within the GVWR and not exceed either the Front Axle Weight Ratings (FAWR) or Rear Axle Weight Ratings (RAWR); ii. All tow trucks and car carriers shall be equipped and in compliance with the most recent electronic version of the California Highway Patrol Tow Truck Inspection Guide(CHP 234B); and, iii. The truck must meet all applicable state and/or federal standards; 4834-4847-6167.1 6 C. Identification Labels: Each piece of towing equipment shall have a label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number, model, and rated capacity; d. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can life in a winching mode,when the boom is static at a 30 degree elevation with the load lines vertical and the lifting cables sharing the load equally,measured with a live load (weight or load cell); i. The structural design of the recovery equipment must have a higher load capacity than the performance ratings; ii. Winches shall conform to or exceed the specifications set forth by the Recovery Equipment Rating(SAE) Handbook, SAEJ706; and, iii. All ratings for cable and chain assemblies are for the undamaged assembly condition. All cable and chain assemblies should be the same type, construction,and rating as specified by the original equipment manufacturer (OEM) for the equipment; and e. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. 7. Per Call Rotation System a. The City shall establish a per call rotation system of qualified Towing Carriers who have entered into Agreements with the City for the performance of towing services in response to calls from the City. All departments of the City shall comply with the rotation system. b. Towing Carrier shall comply with and qualify under all the minimum requirements set forth in this Agreement as a condition precedent to being eligible to be placed on the rotation list as follows: i. The City shall maintain a rotation tow list for Class A tow trucks to ensure an equitable distribution of calls. Nothing in this Agreement for Tow Services shall prohibit the City from requesting a specific Towing Carrier when,in the on scene supervisor's opinion, the necessary resources to clear a hazard as expeditiously as possible are not available from the Towing Carrier currently at the top of the rotation tow list. If the City needs a tow vehicle that exceeds that of a Class A tow truck,the City may,in its discretion, contact a Towing Carrier with the size of tow truck needed. In such an instance,the Towing Carrier selected would be the next Towing Carrier on the list which has the qualifications (equipment, skills, timelines, etc.) to provide the required service. After the request,the selected Towing Carrier would then go to the bottom of the rotation tow list. Towing Carriers on the same list that were 4834-4847-6167.1 7 by-passed would remain in the same order until their selection for a rotation tow for which they are qualified; ii. A call to a Towing Carrier shall constitute one turn on the list and the Towing Carrier shall be moved to the bottom of the list. This includes when the Towing Carrier fails to answer the phone,is unable to respond, is unable to perform the required service, refuses to respond or provide service, or is canceled due excessive response time. If it is determined that the Towing Carrier is not needed and is canceled by the City,up to and including arrival at the scene and standby time which does not result in a tow,there shall be no charges and the Towing Carrier will be placed back at the top of the list; a) If the Towing Carrier is cancelled by the vehicle's registered owner or agent prior to the Towing Carrier taking possession of the vehicle, there shall be no charges for towing. The Towing Carrier shall immediately contact the City and advise them of the cancellation. The Towing Carrier will then be placed back at the top of the list; and, b) If service, other than towing,recovery, and load salvage,has begun and is canceled by the vehicle's registered owner or agent, the Towing Carrier may charge one-half of the regular hourly service charges for the time expended on the call. For purposes of cancellation, service begins when physical work on the vehicle has begun,not the response.No lien shall arise for the service unless the Towing Carrier has presented a written statement to the vehicle's registered owner or agent for the signed authorization of services to be performed. The Towing Carrier shall not attempt to take possession of the vehicle in order to establish a lien for any non- towing services performed, or begun and subsequently canceled, when not entitled to such lien by law; iii. If two or more Towing Carriers are called to the same incident, distribution of the vehicles shall be at the discretion of the on-scene supervisor; iv. The Towing Carrier shall respond to calls 24 hours a day,seven days a week. Between 6:00 a.m. and 6:00 p.m., the response time shall be no more than twenty(20)minutes. Between 6:00 p.m.and 6:00 a.m.the response shall be no more than thirty(30) minutes. The Towing Carrier shall respond with a tow truck of the class required to tow the vehicle specified by the City. The Towing Carrier shall advise City dispatch,at the time of notification,if they are either unable to respond or unable to meet the maximum response time. If, after accepting the call,the Towing Carrier is unable to respond or will be delayed in responding, the Towing Carrier shall immediately notify the appropriate City department. The Towing Carrier shall not assign any calls to other Towing Carriers; 4834-4847-6167.1 8 a) A failure to respond to perform the required towing or service and/or repeated failures to meet the maximum response time requirements shall constitute a failure to comply with the terms and conditions of this Resolution and the Agreement for Tow Services; b) The City may take immediate disciplinary action for any violation of the requirement to respond within the maximum response time; and c) When a Towing Carrier will be temporarily unavailable to provide services due to a pre-planned or scheduled activity, the Towing Carrier shall notify the City at least 24 hours prior to the date that services will be unavailable, noting the times and dates of the unavailability; V. Towing Carriers shall have a minimum of three (3) verifiable years of for hire towing experience,as an owner or principal,prior to the final filing date of an enrollment period in order to qualify for a rotation tow listing; a) Towing Carriers and owners who do not meet the three year verifiable for-hire towing experience may be considered for a position on the City rotation tow list if a full-time manager who possesses the required tow management experience is employed by the Towing Carrier. An owner/Towing Carrier who releases vehicles, completes lien sale paperwork, and other tow business related documents for three years in the Towing Carrier, with the qualified manager, will fulfill the three years for-hire towing experience requirement; vi. To the extent applicable for stored vehicles, Towing Carrier shall give or cause to be given written notice to the registered and legal owners of each vehicle which is towed in conformity with the authorization and requirements of this Agreement concerning the fact of such towing,the place at which such vehicle is stored and the imposition of charges for towing,storage and related services whenever the Towing Carrier knows or is able to ascertain from the registration records in the vehicle or from the registration records of the Department of Motor Vehicles the name and address of the registered and legal owners. The notice shall be given ten (10) days from the date of the towing of the vehicle by the Towing Carrier. SBPD shall be responsible for such notice for impounded vehicles; vii. The Towing Carrier shall post in its office a list of rights of the owner of the vehicle under this Agreement for Tow Services. The rights are set forth on Exhibit E to this Resolution; and 48344847-6167.1 9 viii. A stored vehicle shall be released to the registered owner upon presentation of the registration and valid proof of identification (as provided in Vehicle Code Section 22860.3) and payment of all towing and storage charges If the Towing Carrier does not release the vehicle as required by this subsection upon presentation of registration and valid proof of identification and payment of all charges, storage charges shall cease on the date of presentation of the documentation and payment of the accrued charges. 8. Compensation for Tow Services: Tow Carrier shall charge for services on calls by the City in an amount not to exceed ten($10) above the hourly rate set by the California Highway Patrol. Tow Carrier is responsible for collection of all such fees and charges. a. The rate for towing shall be computed from portal to portal. Time expaxkd shall be charged at a rate not to exceed the hourly rate. Time expended in excess of the minimums shall also be at the hourly rate in no more than one-minute increments. There shall be no additional charges for mileage, labor, etc: i. The Towing Carrier may charge up to a thirty-minute minimum per call for any service or tow which is performed when the vehicle operator or agent is present and the vehicle is not stored at the discretion of an officer; and, ii. The Towing Carrier may charge up to a one-hour minimum per call on responses which result in storage of a vehicle at the direction of an officer; b. Rates for a service call(out of gas, lockouts,tire changes,etc.)shall be from portal to end of service, and may be at the hourly rate with a thirty-minute minimum. Charges in excess of thirty-minutes may be charged in no more than one-minute increments; and, C. Standby time for tow trucks will begin one(1)hour after receipt of calls from the City, and is defined to mean the time consumed after the first hour in necessary preparations in order to tow the disabled vehicle and in cleaning up the immediate surrounding area. 9. Compensation for Storage:Tow Carrier shall charge for services for storage at the storage rate set by the California Highway Patrol for the San Bernardino area. Tow Carrier is responsible for the collection of all such fees and charges. a. Fees for inside storage shall be charged only when inside storage is requested by the City, registered owner, legal owner, insurance company, or when the inside storage can otherwise be justified by the Towing Carrier; b. The Towing Carrier shall display in plain view at all cashiers stations,a sign as described in Section 3070 of the Civil Code. , disclosing storage fees, lien release fees, and charges in force, including the maximum storage rate; 4934-4847-6167 1 10 C. Vehicles stored 24 hours or less shall be charged no more than one day storage; and, d. Storage of vehicles in combination may be charged a per vehicle rate except for dollies and con-gear. Dollies and con-gear may be charged a storage rate not to exceed Class A storage fees; e. The charge for after-hours release shall be no more than one-half the hourly rate, and shall only be allowed on weekends, holidays, and outside normal business hours; f. The approved schedule of rates charged by the Towing Carrier shall be available in the tow truck, and shall be presented upon demand to the persons for whom the Tow Services were provided, their agent, or any officer at the scene; g. Rate requirements represent the maximum a Towing Carrier may charge on a City call. A Towing Carrier is not precluded from charging less when deemed appropriate by the Towing Carrier. These requirements shall not be construed as requiring a charge if a Towing Carrier would not normally charge for such service; h. Towing Carrier or employee shall not refer to any rate as required or set by the City; z i. In the event that a towed vehicle is forfeited by the owner in accordance with Section 14607.6 of the California Vehicle Code, the proceeds of the sale of the vehicle shall be distributed pursuant to said section of said Code; and j. The Towing Carrier shall accept all guaranteed forms of payment including, without limitation,money orders, certified checks,debit cards and all widely accepted credit cards. There shall be no surcharge for the use of a credit card. If the form of payment cannot be accepted by the Towing Carrier due to any failure by the Towing Carrier or Towing Carrier's payment processing equipment, Towing Carrier shall not charge storage fees beyond date of such failure. 10. City Fees and Franchise Fees. In addition to the amounts charged vehicle owners, Tow Carrier shall pay the following fees to the City in the manner set out here. a. Impounded Vehicles:Registered Owner shall pay to the City an administrative release fee of$349 per vehicle towed, impounded and thereafter stored; b. Stored vehicles: There shall not be a fee charged for stored vehicles based upon the City's determination that such fees most often would be charged to the victims of crimes(auto theft) or accidents; c. Franchise Fee: Tow Carrier shall pay the following franchise fees per vehicle towed under this Agreement (collectively"vehicle) during the initial term of this Agreement and shall not be passed through to vehicle owners in any manner: 48344847-6167.1 11 Year 1 (effective date of Agreement, 2011, through June 30, 2012) - $70.00/vehicle Year 2 (July 1, 2012 through June 30, 2013) -$72.10/vehicle Year 3 (July 1, 2013 through June 30, 2014) - $74.25/vehicle Year 4 (July 1, 2014 through June 30,2015) - $75.50/vehicle Year 5 (July 1, 2015 through June 30,2016) - $79.00/vehicle Such franchise fees may be adjusted by the City after the initial 5-year term hereof; d. Verification of Tows and Payment of Franchise Fees: By the 15a'of each month, Tow Carrier shall submit to the Police Department a list of all vehicles towed under this Agreement during the previous calendar month, including but not limited to owner's request tows. The list shall be in a format acceptable to the Police Department and shall include the case number, vehicle license plate number and vehicle identification number. At the same time as the list is provided, Tow Carriers will remit franchise fee payment to City for the vehicles towed during the previous calendar month. Any amounts not paid by the 15th of the following month shall bear interest at the rate of 10%per annum, simple interest, compounded daily until paid; and e. City fees (including but not limited to the list prepared) are subject to audit and verification as set out herein whether as part of an annual review or otherwise. 11. Employees: a. The Towing Carrier shall insure that tow truck drivers responding to calls initiated by the City are qualified and competent employees of the Towing Carrier's company. The Towing Carrier shall ensure that the tow truck drivers are trained and proficient in the use of the tow truck and related equipment, including, but not limited to, the procedures necessary for the safe towing and/or recovery of the various types of vehicles serviced through City rotation. Tow drivers shall perform all towing and recovery operations in the safest and most expedient manner possible. Tow truck drivers shall be at least 18 years of age and shall possess*the proper class license and endorsements for the towed and towing vehicle; b. The Towing Carrier shall maintain a current list of drivers; C. All tow truck drivers and owner/Towing Carriers shall be enrolled in the Pull Notice Program; i. Upon the addition of new drivers, a Towing Carrier will be granted a maximum of 30 days to enroll drivers in the Pull Notice Program; ii. Pull Notices shall be kept on file, signed, and dated by the Towing Carrier; and, iii. The City may require a Towing Carrier to provide copies of Pull Notice Reports to the City; 4834-4847-6167.1 12 d. The Towing Carrier,or Towing Carrier's employees responding to a call,shall perform the towing or service required for which they were called unless the requested equipment is inadequate for the service to be performed; and, e. Only the tow truck personnel and equipment requested shall respond to the City call. A Towing Carrier shall not respond to a City call assigned to another Towing Carrier unless requested to do so by the City; i. This shall not preclude the Towing Carrier from responding to an incident to ascertain if additional assistance or equipment is required. There shall be no additional charge for any personnel or equipment that is not necessary to perform the required service; ii. There may be times when the Towing Carrier assigned the initial call may require the assistance of an additional Towing Carrier at the scene. The Towing Carrier assigned the initial call may,subject to prior Agreement with the City and with the concurrence of the on scene supervisor, request a specific Towing Carrier for assistance. The request shall be routed to the additional Towing Carrier through the City; and, iii. There may be times when a Towing Carrier, who was not called to a scene, comes upon a collision scene where a vehicle or vehicle are blocking a roadway and an officer requests assistance in clearing the roadway. In such a case, the Towing Carrier may be requested to move the vehicle to a safe location, as directed by the officer, and leave it. There shall be no charge for this assistance and the assistance provided shall not change the Towing Carrier's place in the rotation. f. Employees shall he properly trained to conduct business transactions related to towing, storage, and release of vehicles/property; g. Uniforms: While engaged in tow operations hereunder, City rotation tow drivers shall wear an identifiable uniform shirt displaying the Tow Carrier's and driver's names;and h. Safety Vests: City rotation tow drivers shall wear a safety vest and/or reflectorizing clothing, as well as any other safety clothing required by and meeting CalOSHA and Occupational Safety and Health Administration (OSHA) requirements. 12. Complaint Procedure: All City related tow service complaints from the public received by the City against a Towing Carrier or Towing Carrier employees will be accepted and investigated in a fair and impartial manner pursuant to procedures utilized by the Police Department or as set out herein. The Towing Carrier will be notified of the results of any investigation. 13. Records: Each month, Towing Carrier shall submit a list of all vehicles towed the previous month, including license plate numbers and vehicle identification numbers, and shall identify clearly all impounded vehicles towed to its storage facility. 48344847-6167.1 13 i a I C a. The Towing Carrier shall maintain records of all Tow Services furnished. The records will be maintained at the Towing Carrier's place of business. Invoices shall at a minimum include a description of each vehicle,nature of service, start time,end time,location of call,itemized costs of towing and storage,the tow truck driver's name, and truck used; b. At the Towing Carrier's primary office,the Towing Carrier shall also maintain business records relating to personnel, insurance, personnel taxes, payroll, applicable operating authorities, local operating authorities, lien sale actions, Federal Communication Commission licensing, and non-City I tows; C. The City may inspect all Towing Carrier records without notice at any time during normal business hours and during the annual reviews; d. Towing Carrier shall permit the City to make copies ofbusiness records at its place of business, or to remove business records for the purpose of reproduction. The City shall provide a receipt for any(original)records removed from the place of business; e. Records shall be maintained and available for inspection for a period of four (4) years after the termination of this Agreement for Tow Services; and, f. Failure of the Towing Carrier to comply with the inspection requirements shall be cause for suspension and/or termination of this agreement. 14. Audit: a. Upon reasonable advance written notice, City or its designee shall have the right to review and audit the books of Towing Carrier's place of business and during business hours. In the event that such audit shows a 5% or greater variance in revenues owing to the City by Tow Carrier,the following amounts shall be owing by Tow Carrier to City: 1)the amount determined to be owing as a result of the audit; 2) simple interest at the rate of 10% on the amounts owing, compounded daily from the due date; 3) both 1) and 2) shall be paid within 10 calendar days of notification of the deficiencies;and 4)Tow Carrier shall pay the reasonable costs of the audit based upon invoices provided by City; and b. In the event that an audit shows an 10% or greater variance in revenues owing to the City, the following amounts shall be paid to the City by that Tow Carrier: 1. the amount owed as a result of the audit; 2. simple interest at the rate of 10%on the amount owed,compounded daily from the due date; 3. the amount owed including interest shall be paid within 10 calendar days of notification of deficiencies; and 4. pay the reasonable costs of the audit; 48344847-6167.1 14 c. In the event the audit determines a 15%variance in revenues owing to the City, such result may be ground for action under Section 17 herein. 15. Assignment: Any assignment of this agreement due to change in ownership requires the approval of the City Council to continue on the tow rotation.Any change of ownership must be reported to the Police Department in writing within seven(7) days of such change. Thereafter, Police Department will review the proposed new owner(s) under the standards set out in this Agreement and procedures the Police Department adopts therefor. Within 30 days ofthe date of notification of the change of ownership, the Police Department shall report the results of its review to the City Council,which shall approve or deny the assignment of this Agreement to the new owner. In the event the City Council denies the assignment,the Agreement shall terminate as of the date of such denial and the Police Department shall initiate procedures to replace the Tow Carrier in the towing rotation. Such termination is not subject to the appeal provisions hereof or of Resolution No. 2005-286. 16. Standards for Performance:While involved in City rotation tow operations or related business, the Tow Carrier and/or employees shall refrain from any acts of misconduct including,but not limited to, any of the following: a. Rude or discourteous behavior; b. Lack of service, selective service, or refusal to provide service which the Towing Carrier should be capable of performing; C. Any act of sexual harassment or sexual impropriety; d. Unsafe driving practices; e. Exhibiting any objective symptoms of alcohol and/or drug use; f. Appearing at the scene of a City rotation tow call with the odor of an alcoholic beverage emitting from the Tow Carrier's employee's breath. The Towing Carrier employee shall submit to a preliminary alcohol screening test upon demand of the City; g. Should the filing of criminal charges be a possibility,the City will conduct the investigation to conclusion or assist the lead investigation agency and, if warranted, request prosecution; h. Traffic Violations; i. In the event of a minor traffic violation by a tow truck driver which is known by the City,the Towing Carrier shall be advised of the violation by the City. The Towing Carrier will be granted the opportunity to take necessary steps to ensure that the driver complies with the law. Any subsequent traffic 4834-4847-6167.1 15 violations may be cause for disciplinary action against the Towing Carrier and/or the involved employee(s); ii. Any flagrant traffic violation may be cause for immediate disciplinary action against the Towing Carrier and/or the involved employee(s); and, iii. The provisions contained in any compliance with law provisions in this Agreement do not preclude the City from taking appropriate enforcement or administrative action for any violations of law. Complaints for violations of the law not normally investigated by City will be referred to the agency with investigation jurisdiction; i. Any conviction of the Towing Carrier or employee involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of violence, a drug-related offense, felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug, or moral turpitude while involved in a City rotation tow call shall be cause for removal of the Tow Carrier from the list of current City rotation, denial of Towing Carrier application, or termination of this Agreement; j. A Tow Carrier or employee arrested/charged for a violation involving any of the above crimes may be suspended until the case is fully adjudicated.Records of violations shall be retained by the City for at least 36 months; k. A violation of the equipment requirements related to safety shall be cause for immediate suspension of the Tow Carrier from the tow rotation.The suspension will remain in effect until the period of suspension is completed and the City has conducted an inspection and concluded the Tow Carrier is in compliance; 1. A violation of the GVWR and safe loading requirements of a tow truck may be cause for immediate suspension of the Tow Carrier. This includes exceeding the tow truck's GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck's unladen front axle weight on the front axle when in tow; M. A violation of intentionally overcharging or a pattern of overcharging or of non-payment of City fees shall be cause for suspension of the Tow Carrier. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has presented proof to the City that reimbursement has been made to the aggrieved customer; n. City personnel shall not be offered gratuities,and requests for gratuities shall not be honored by Tow Carriers, employees, or associates of the Tow Carrier. A violation of this section shall be cause for suspension or termination; o. Failure of the Tow Carrier to satisfy a court order mandating reimbursement to the vehicle owner or property owner for the damage or loss which occurred while the vehicle was in the Towing Carrier's custody will result in a suspension.The suspension will remain in effect until the period of suspension is completed and the Towing Carrier has presented proof of the reimbursement; 4834-4847-6167.1 16 P. Failure of the Tow Carrier to comply with the inspection requirements of this Agreement for Tow Services shall result in a suspension. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has complied with the inspection requirement; q. Failure of the Tow Carrier to send tow truck drivers who are qualified and competent employees on City calls shall be cause for suspension. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has presented proof to the City that the driver is qualified and competent; and, r. Failure of the Tow Carrier to maintain the minimum insurance requirements set forth in the Agreement for Tow Services will immediately nullify the Agreement for Tow Services. The Tow Carrier will be subject to an additional suspension for failure to notify the City in advance of the insurance policy expiration or cancellation. 17. Suspension and Termination for Cause: The City shall take disciplinary action against Tow Carriers for violations investigated and confirmed or sustained.Unless otherwise noted,the City shall determine the period of suspension. The City shall retain discretion regarding the length of any suspension imposed pursuant to the terms and conditions of this Agreement for Tow Services. a. Violations of the terms and conditions of this Agreement maybe cause for disciplinary action against the Tow Carrier as follows; in lieu of termination,the City may impose additional suspension for longer periods, if deemed appropriate; i. First violation within a 12 month period - letter of written reprimand; No changes to these per PD; ii. Second violation within a 12 month period- 1 to 30 day suspension; Third violation within a 12 month period-60 to 90-day suspension; and, iv. Fourth violation within a 12 month period-termination of the Agreement for Tow Services. b. Violations of the terms and conditions of this Agreement that are subject to suspension for the first violation are categorized as major violations.Any subsequent or continuing major violation may be cause for termination; i. When considering punitive action for a major violation of the Agreement,the City may take into consideration all major and minor violations that occurred within 36 months prior to the date of the current violations; and, ii. Termination shall be invoked if, in the City's sole judgment, continued participation in the Rotation Tow Program by the affected Towing Carrier 4834-4847-6167.1 17 may result in a hazard to public safety and/or welfare, or any conviction of the Towing Carrier or employee involving a stolen or embezzled vehicle, fraud related to the towing business,stolen or embezzled property,a crime of violence, a drug-related offense, felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug, or moral turpitude while involved in a City rotation tow call; C. Nothing herein shall be deemed to prohibit the City from immediately suspending any Towing Carrier or employee whose conduct,in the opinion of the City,is deemed to be a danger to the motoring public or who has engaged in conduct constituting a flagrant violation of the Agreement for Tow Services; d. Administrative Hearing: In the event the City serves the Towing Carrier with Disciplinary action, the Towing Carrier may request a hearing within seven calendar days by submitting a request in writing to the Traffic Sergeant at the Police Department. If a hearing is requested, it shall be held as soon as practical. The hearing shall be conducted by the Traffic Sergeant or designee, and the Tow Carrier shall be entitled to present all relevant facts and circumstances in support of the Tow Carrier's position. The Tow Carrier shall be further entitled to present testimony of at least one qualified person. The Tow Carrier shall be notified in writing of the Traffic Sergeant's decision(s)within ten business days of the date of completion of the hearing; e. Appeal from Administrative Hearing:Following a hearing,if the Tow Carrier is dissatisfied with the Traffic Sergeant's decision(s), the Tow Carrier may appeal by submitting a request in writing to the City Clerk, pursuant to Municipal Code Chapter 2.64, and paying any applicable fees; f. A suspension shall not take effect until the hearing and appeal process has been exhausted, with the exception of Tow Carriers whose conduct deemed to be a danger to the motoring public or who continue to violate the terms and conditions of this Agreement for Tow Services. If a Tow Carrier fails to request a hearing or appeal,the action taken by the,City shall be final, and the suspension shall take effect upon written notification to the Tow Carrier by the City; and g. A terminated or suspended Tow Carrier, and/or the Tow Carrier Business owner at the time of the suspension or termination shall not be eligible for a rotation listing for the duration of the suspension or termination.This provision applies to the Tow Carrier working in any capacity within any tow business or operating any tow business,and to the tow business,even if operated under new ownership.This provision does not apply to Section 16 regarding termination due to a change in ownership. 18. Notice: Any notice to be given pursuant to this Agreement by either party to The other shall be given by personal service or shall be deemed given when deposited with the United States Postal Service, first class,postage prepaid, and addressed as follows: 4834-4847-6167.1 18 To the City: City Manager 300 North "D" Street San Bernardino, CA 92418 To Towing Carrier: City Towing 530 w. I OTH Street San Bernardino, CA 92410-2802 19. Miscellaneous: This Agreement represents the entire Agreement between the City and the Tow Carrier and fully supersedes any and all previous Agreements enter into by and between the City and Tow Carrier. This Agreement may be amended only in writing agreed upon by all affected Tow Carriers.No waiver of any term or condition of this Agreement shall be a continuing waiver thereof. 20. Attorneys' Fees: In the event of litigation to enforce this Agreement, the prevailing party in such litigation shall be entitled to reasonable costs and attorneys' fees, as determined by the Court. As used here, "attorneys' fees" includes the costs, salary and expenses of the City Attorney and members of his office. IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the day and date first above shown. CITY OF SAN BERNARDINO By: City of San Bernardino Attest: By: TOW CARRIER: CITY TOWING By: Print Name: Approved as to Form: JAMES F. PENMAN City Attorney By: 4834-4847-6167.1 19 EXEI[Brr"All EXH BIT A TOW CARRIERS NM41MUM REQUIREMENTS (EI� ,CTIVE FOR TOW CARRIERS ENTERING THE CTTY'S TOW ROTATION AFTER THE EFFECTIVE DATE OF THIS RESOLUTION) A. Have a minimum outside storage space of 65,000 square feet capable of storing at least 200 vehicles. B. Minimum inside storage space of 2000 square feet capable of storing at least five (5) automobiles. C. Security fencing around the entire outside storage space. D. Monitored alarm system-If the outside storage space is not alarmed,the inside storage must be. E. Minimum of three Class A tow trucks. F. Current City Business License. G. Certificate of Occupancy. H. Hazardous Material Handler's Permit. I. Have either an inside or outside customer waiting area for at least five customers of 100 square feet. The outside waiting area shall exclude parking and landscape areas. J. Have a minimum of three years of for-hire towing experience as an owner/principal or have a qualified manager with the experience. K. Have an attendant on call twenty-four (24) hours a day, seven days a week at place of business. L. Have no more than two telephone numbers listed with any City department. M. Store towed vehicles in a safe, lighted and protected space where the vehicles and their contents will not be accessible to thieves nor be damaged by activity in the carrier establishment or from the elements or by vandals;no vehicles shall be left parked or stored on the public streets at anytime; in no event shall the city be liable for any theft,vandalism or damage occurring to any such vehicle or its contents. N. Post a tag on the windshield of all cars ordered impounded by the City. O. Collect all towing or hauling and storage charges on each vehicle from the owner; in no event shall the city be liable for any such charge. 1 P. Whenever a vehicle has been involved in an accident or a traffic violation,and the owner or someone delegated by him is present and is capable of removing the vehicle from the street with reasonable dispatch, and the vehicle is not needed for criminal evidence, City and/or towing carrier shall permit the owner or his delegate to remove the vehicle or call a towing company of his or her own choice to remove the same; provided, however, that if the street cannot be cleared for safe public use with reasonable dispatch by the above method, and in all situations other than above set forth, a towing carrier from the top of the rotation list will be called by the City. Q. Furnish each owner with a fully itemized billing. R. Immediately after each towing operation, make a towing slip with the contents of each vehicle placed in his or her care itemized thereon as verified by the officer ordering the same and make the slip available to the City on request. S. Release no impounded vehicle without first having obtained a release from the City to do SO. T. Agree to a rotation system established by the City. IL U. Comply with all rules, regulations and laws of the State of California, County of San Bernardino and City of San Bernardino. V. Have adequate equipment to handle calls from the city, impounds, and storage of motor vehicles. W. The carrier shall operate from a location within the City of San Bernardino, and all of the facilities necessary to comply with the provisions of this resolution shall be located within the City of San Bernardino. X. Carry a broom,trash can and sand,clean and remove broken glass,spilled oil,or gasoline from the area before departing, unless directed to not do so by police officers and/or designated City employees at the scene. Y. Each tow carrier shall maintain insurance pursuant to the requirements set forth below. The City of San Bernardino shall be named as an additional insured on all policies including the workers compensation policies. Tow carriers shall provide an endorsement to each policy showing the City as an additional insured. 1. The operator shall maintain the following minimum levels of insurance from an insurance carrier admitted in California, or admitted in the state in which the operator's business is located, and is authorized to do business in California: a) Minimum Level of Financial Responsibility(as required by Section 34631.5 of the California Vehicle Code) -Bodily injury and property damage with a combined single limit of not less than$750,000 for Class A tow trucks. These minimum standards are to include non-owned and hired auto coverage. b) Uninsured Motorist- Legal minimum, combined single limit. c) On-Hook Coverage/Cargo - Insuring the vehicle in tow with limits based on the size of the tow truck. d) Garage Liability/Garage Keeper's liability - Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than$500,000. 2. Proof of insurance shall be in the form of a certificate of insurance. Policy expiration or cancellation will immediately nullify the Agreement for Tow Services between the carrier and the City. The operator's insurance policy shall provide for not less than 30 days written notice to the City in the event the insurance policy is canceled or is due to expire. Z. Tow vehicles shall be rated at a minimum of 14000 GVWR.(Class A) 1. Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chassis Gross Vehicle Weight Rating(GVWR) and the classification system used by the American Trucking Association(ATA) and truck manufacturers. 2. Towing Limitations: a) The total weight of the truck, including the lifted load,shall fall within the GVWR and not exceed either the Front Axle Weight Ratings (FAWR) or Rear Axle Weight Ratings(RAWR). b) All tow trucks and car carriers shall be equipped and in compliance with the most recent electronic version of the California Highway Patrol Tow Truck Inspection Guide(CHP 234B). C) The truck must meet all applicable state and/or federal standards. 3. Identification Labels: Each piece of towing equipment shall have a label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number, model, and rated capacity. 4. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can lift in a winching mode,when the boom is static at a 30 degree elevation with the load lines vertical and the lifting cables Is �r✓ sharing the load equally; measured with a live load (weight or load cell). a) The structural design of the recovery equipment must have a higher load capacity than the performance ratings. b) Winches shall conform to or exceed the specifications set forth by the Recovery Equipment Rating (SAE)Handbook, SAE J706. c) All ratings for cable and chain assemblies are for the undamaged assembly condition. All cable and chain assemblies should be the same type, construction,and rating as specified by the original equipment manufacturer (OEM) for the equipment. 5. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. 6. Uniforms: City rotation tow drivers shall wear an identifiable uniform shirt displaying the company and driver's names while engaged in City rotation tow operations. 7. Safety Vests: City rotation tow drivers shall wear a safety vest or reflectorizing clothing, meeting Occupational Safety and Health Administration (OSHA) requirements. AA. The City may grant additional points or deduct points as set forth in Exhibit B to Resolution No. BB. No tow carrier is exempt from meeting legal requirements imposed by any city,county,State or Federal laws or regulations. An example of this is the Clean Water Act. A EXHIBIT"B" EMIBIT "B" Preliminary Application Review Applications that do not currently meet all of the following minimum qualifications will be rejected and returned to the tow carrier with a cover letter stating the reasonls for rejection. Tow Carrier Name Date Internal Use Only Qualification Yes No 1. Meets all standards of the most current city resolution establishing standard criteria for tow oom anies. 2. Tow business office and storage facility located within San Bernardino City limits. 3. Minimum Outside Storage of 200 vehicles,65,000 sq. ft. 4. Minimum Inside Storage of 2,000 sq.ft. 5. Secure,lighted storage facility 6. . Attendant on-duty 24 hours 7. 24 hour service including weekends and holidays 8. Minimum of three certified Class A tow trucks 9. Current City Business license 10. Certificate of Occupancy [ ) Permanent [ )Temporary 11. Hazardous Material Handlers Permit Current 12. Monitored Alarm System: If outside perimeter is not alarmed then inside storage must be. 13. Minimum inside waiting area of 100 sq. ft. 14. Minimum outside waiting area, excluding parking space and landscaping,of 100 ft. 15. Operator has three years of verifiable towing experience as an owner or principle, or has a full time mans er who possesses the reguired.experience. 16. Financial Interest in another tow company providing services to the City 17. Prior conviction(s),guilty plea,or nolo contendere plea that excludes tow carrier, Comments 4 TT•Arum cttifAAnnticatinn Prehnlina Review Check List 2-1-01Ldoc EXIIIBIT"C" IMHIBIT "C" - SELECTION PROCESS ATTACHMENT Tow Carrier: Date: Contact Information 6A"gencye Contact Person Title Telephone# . Date of Contact ; I k Governmental Agency Tow Service History Agency Number of Negative Complaint History Actions #Sustained #Unfounded Revised 7/19/2005 MMIBIT "C" SELECTION PROCESS ATTACHMENT Each tow carrier shall be awarded a point value for each of the in-depth investigation categories. The points may range from negative values(deductions)to positive values(additions). Meeting the minimum qualifications in a specific category will have a point value of zero. Tow Service History Points Lost Negative Actions are defined as any notice of Total Points Lost disciplinary action by a governmental agency or issuance of a citation that results in sanctions or conviction. 1 - 4=- 5 16-20=- 30 5 - 10=-10 21 -25=-40 11-15=-20 25+ =- 50 Government Agency Name Date of Action Summary of Action Business Expiration Date: License Number: Sub-Total Tow Service History Facility Inspection Minimum Outside Additional Outside Space Minimum Inside Additional Inside Space Total Storage Space 10,000-20,000 sq. ft.=+5 Storage Space 1,000-1,500 sq.ft.=+5 Points Required 65,000 sq.ft. 20,001 +sq. ft._+10 Required 2,000 sq.ft. 1,501 +sq.ft. =+10 1 Office Area Front of Business Rear of Business=-2 Unimproved Walkway for customer Location/Access No Obstructions access=-2 0 Staffing/Organization 1 person to 2-4 able to conduct routine business=+2 •Routine business includes the conduct routine 5+able to conduct routine business=+5 release and sale of vehicles* business 0 Customer Inside 100 sq. ft.minimum=0 Seating for Public access to customer files Waitin Area 100 additional ft=+2 Customers=+2 =-10 Revised 7/19/2005 i miBIT "C" SELECTION PROCESS ATTACHMENT j Customer Outside 100 sq.ft.of outside Entire Area Covered=+2 Waiting Area waiting area=+2 Some Area Covered=+1 (excluding parking Seating for Customers=+2 ace and land Security l Fencing No Damaged Areas=0 Yard Motion Beams=+2 •narnagc is areas flue aDow Damaged Areas=-5 Recorded Video Camera Unintended access to =+5 vehicles Hazardous Material Proper Storage& Improper Storage/Item Handler Permits Solid=-2;Liquid=-5 0 Tow Trucks Minimum of 3 Certified Additional Certified Class A Class A Trucks Trucks 1-3_=+2'4+_+5 Tow Truck Broken or Damaged Equipment=-1 per item Missing or Non-Useable Equipment Equipment -5 per item tequired Equipment *Specified on Tow Truck Guide* Pull Notices On File=0 Missing=-5 per driver Business Records On Site=0 Readily Accessible=+2 Not readily accessible= Immediate Retrieval or Records -5 Comments: Subtotal of Tow Service History Points Subtotal of Facility Inspection Points Total Points In Depth Investigation Conducted By: Print Name and Rank Reviewed/Approved By: Print Name and Rank • EXHIBIT "D" EXHIBIT "D" City of San Bernardino Selection Process of Tow Carriers The attached documents are samples of those the SBPD proposes to use when positions become available for tow carriers to provide service to the City of San Bernardino. The documents are in order in which they will be used during the selection process. 1. The SBPD gives notice of an available tow carrier position via advertisement in a local newspaper,Channel 3 posting and notice to local Chamber of Commerce. 2. Interested tow carriers request application packages through the SBPD Traffic Unit. 3. The SBPD Traffic Unit mails or gives an application package to the requesting tow carrier: a) Letter acknowledging request for package b) Tow Rotation List Application/Copy of current Agreement For Tow Services 4. Tow Carrier returns completed application by due date for consideration. 5. The SBPD reviews the returned application to ensure that the applicant meets the minimum criteria: a) Criteria met,letter sent to tow carrier b) Criteria not met, letter sent to tow carrier 6. Application package assigned for completion: a) Contact Government agencies to whom tow carrier provides service b) Business licensing c) Certificate of occupancy d) Haunt handlers permits 7. Conduct inspection: a) Licensing/Hazmat requirements compliance b) Rate posting compliance c) Tow Service Agreement compliance d) Total point value calculated from selection process attachment 8. Completed application and inspection packages given to City Council for selection of tow carriers)with rankings based on total points. 9. Required documents filed for formal entry of an Agreement For Tow Service with selected tow carrier: a) Request for Council Action b) Drafted Resolution c) Agreement for Tow Services between the City of San Bernardino and tow carrier EKMff"E" EXHIBIT"E" RIGHTS OF PERSONS WHOSE VEHICLES ARE TOWED AT THE REQUEST OF THE CITY OF SAN BERNARDINO (TO BE POSTED IN VISIBLE LOCATION IN TOWING CARRIER'S OFFICE) Tow operators who tow vehicles at the request of the City of San Bernardino operate under an Agreement for Tow Services with the City. The agreements require the tow operators to comply with certain rules and provides the following rights to the owner of a towed vehicle. The owners'rights are summarized as follows: 1. Notice to the registered and legal owners of the vehicle within 10 days of being towed of location of vehicles and charges. 2. Normal business hours are 8:00 am. to 5:00 p.m. Monday through Friday except recognized holidays of New Year's Day,Martin Luther King Day,Presidents'Day,Memorial Day, Independence Day,Labor Day, Veteran's Day,Thanksgiving Day and Christmas Day. 3. Business hours to be posted for viewing by the public. 4. Tow operators shall respond to after hours release within thirty minutes. 5. Tow operators shall accept all guaranteed forms of payment and widely accepted credit cards without a surcharge. 6. If a stored or impounded vehicle is not released once proper documentation and identification are provided and all charges paid,further storage charges shall cease as of the date of presentation and payment. 7. Itemized invoices shall be provided. 8. Right to file a complaint with the City of San Bernardino. AGREEMENT FOR TOW SERVICES (EXISTING TOW CARRIERS) THIS AGREEMENT FOR TOW SERVICES(this"Agreement")is entered into this fourth day of April,2011,by and between the CITY OF SAN BERNARDINO("City")and Hayes Towing (Tow Carrier"or"Towing Carrier") effective April 4, 2011 (the"Effective Date"). RECITALS A. The Vehicle Code authorizes City regulation of involuntary towing and storage with appropriate compensation therefore, which compensation covers the reasonable cost (including direct and indirect overhead) as well as franchise fees; and B. City has adopted Resolution No.2005-286,as amended by Resolution No.2008-347, "Establishing Standard Criteria for Companies to Provide Tow Services"and the Exhibits attached thereto; C. The Resolutions cited above presently provide for a towing rotation franchise within the City for the more efficient regulation and operation of tow companies with the ratio of one tow company chosen for the rotation for each 35,000 people within the City; D. The City and the six (6) Tow Carriers currently on the rotation have agreed that it promotes ease of operation to restate such existing requirements in one Agreement which reorganizes the proposed model contracts for existing and new Tow Carriers as those proposed contracts were set out in Resolution 2005-286 and that this Agreement contains the same provisions regarding operation of the tow rotation and requirements for Tow Carriers; E. City shall not pursue the establishment of an impound yard. F. In consideration Tow Carriers have agreed to the revised or additional provisions including but not limited to those regarding franchise payments and audits; G. This revised and updated Agreement,upon execution by each of the six(6)existing Tow Carriers, shall supersede in their entirety any and all prior agreements between the City and each Tow Carrier; and H. City finds and Tow Carriers agree that the compensation and other provisions of this Agreement meet the requirements of all applicable laws. NOW, THEREFORE, the parties hereto agree as follows: 1. Recitals. The Recitals set out above are true and correct. 2. Provision of Tow Services by Tow Carrier 48344847-6167.1 1L X a. Term; Extension at City's Option: This Agreement shall commence on the Effective Date for a term of five years unless sooner terminated hereunder. This Agreement may be extended as to the Tow Carrier upon the City's sole determination that Tow Carrier is in compliance with all terms and conditions hereof. Such an extension shall be for an additional 5years. There is no promise and should be no expectation of such extension. Failure to grant such extension shall result in termination of this Agreement, which termination is not subject to the appeal provisions hereof or of Resolution No. 2005-286. At the end of the term of the Agreement, whether or not extended,there shall be no more extensions of this Agreement and Tow Carrier understands it is not entitled to any such additional extension, nor may the City grant such additional extension. This Agreement confers a privilege and not a right; b. Tow Carrier hereby agrees to provide Tow Services to the City pursuant to terms and conditions contained in this Agreement. "Tow Services"means the following types of nonconsensual towing initiated by the City,including but not limited to code enforcement tows: (i) towing of involuntarily impounded vehicles (where such impound is authorized under the Vehicle Code) to the Tow Carrier's storage yard and storage there; and (ii) towing and storage of non- impounded vehicles when directed to do so by City personnel or by the owner (owner's request tows); C. Whenever a vehicle has been involved in an accident or a traffic violation,and the owner or someone delegated by the owner is present and is capable of removing the vehicle from the street with reasonable dispatch, and the vehicle is not needed for criminal evidence,City and/or Tow Carrier shall permit the owner or his delegate to remove the vehicle or call a tow carrier of his or her own choice to remove the same; provided, however, that if the street cannot be cleared for safe public use with reasonable dispatch by the above method,and in all situations other than above set forth, a Tow Carrier from the top of the rotation list will be called by the City; and d. This Agreement supersedes any and all prior agreements between the parties as to the subject matter hereof. 3. General Requirements of Tow Carriers: a. Tow Carrier shall comply with all rules,regulations and laws of the State of California,the County of San Bernardino and the City of San Bernardino,including but not limited to those applicable to storage facilities. Tow Carrier shall also comply with all provisions of the Resolution of the Mayor and Common Council of the City of San Bernardino Establishing Standard Criteria for Companies to Provide Tow Services for the City of San Bernardino as said Resolution exists and/or as said Resolution may be amended from time to time; b. Tow Carrier shall specifically comply with Exhibits A through E of Resolution No. 2005-286 attached thereto and set out as follows: Exhibit A—Minimum Tow Service Requirements Exhibit B - Preliminary Application Review Exhibit C - Towing Carrier Selection Process 48344847-6167.1 2 Exhibit D - Selection Process Exhibit E - Rights of Persons Whose Vehicles are Towed at the Request of City C. No Towing Carrier or applicant shall be directly involved in the towing related business of any other Towing Carrier or applicant on the City's tow rotation; d. Storage facilities owned by a Towing Carrier,and shared with another Towing Carrier, shall be approved only if the owner-Tow Carrier charges for the space exclusively on a flat monthly rate rather than a vehicle-by-vehicle basis, or combination thereof. Facilities shared by Towing Carriers shall be physically separated and secured from each other; e. The City shall conduct, at a minimum, one annual meeting with all Tow Carriers to discuss issues concerning the tow rotation. All meetings shall be mandatory for the Towing Carrier or Towing Carrier's designee wishing to remain on rotation. The City shall give the Towing Carrier 30 day's prior written notice of these meetings. The City may call additional required and noticed meetings with one or more Tow Carriers to address issues arising under this Agreement; and f. Tow Carrier understands and agrees that the Police Department or its designees may conduct annual reviews of Tow Carrier's operations to insure compliance with the regulatory and other requirements of this Agreement. Notwithstanding, the City and Police Department reserve the right to conduct reviews of Tow Carrier's operations at any time when health, safety or welfare concerns require such immediate review. 4. Towing Requirements: a. Rotation System: Agree to a rotation system established by the City; b. Carry a broom,trash can and sand,clean and remove broken glass,spilled oil, or gasoline from the area before departing, unless directed not to do so by police officers and/or designated City employees at the scene; C. Insurance: Each Tow Carrier shall maintain insurance pursuant to the requirements set forth below. The City shall be named as an additional insured on all policies including the workers compensation policies. Tow Carriers shall provide an endorsement to each policy showing the City as an additional insured. The Tow Carrier shall maintain the following minimum levels of insurance from an insurance carrier admitted in California, or admitted in the state in which the Tow Carrier business is located, and is authorized to do business in California: i. Minimum Level of Financial Responsibility(as required by Section 34631.5 of the California Vehicle Code)—Bodily injury and property damage with a combined single limit of not less than $750,000 for Class A tow trucks. These minimum standards are to include non-owned and hired auto coverage. ii. Uninsured Motorist—Legal minimum combined single limit. 4834-4847-6167.1 3 iii. On-Hook Coverage/Cargo insuring the vehicle in tow with limits based on the size of the tow truck; iv. Garage Liability/Garage Keeper's liability — Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than $500,000. Proof of insurance shall be in the form of a certificate of insurance. Policy expiration or cancellation will immediately nullify the Agreement for Tow Services between the Tow Carrier and the City. The Tow Carrier's insurance policy shall provide for not less than 30 days written notice to the City in the event the insurance policy is canceled or is due to expire; d. Every tow truck which responds to calls for service within the City pursuant to this Agreement shall be clearly marked on both sides of the cab with the name and telephone number of the Tow Carrier which operates the truck; and e. The Tow Carrier shall not display any sign or engage in any advertisement indicating an official or unofficial connection with the City or Department of Motor Vehicles. 5. Storage of Vehicles: Pursuant to the requirements hereof, a Tow Carrier shall transport vehicles or to the Tow Carrier's facility for storage and shall meet the following minimum requirements: a. Have a minimum storage space for 200 vehicles with a minimum of twelve inside spaces; outside storage lots must be adequately lighted; b. Provide for secure inside evidence storage and have the ability to provide secure in-door storage for vehicles upon request of the Police Department; C. Have an attendant on call twenty-four(24)hours a day,seven days a week at place of business; d. Have no more than two telephone numbers listed with any City department; e. Store towed vehicles in a safe and protected space where the vehicles and their contents will not be accessible to thieves nor be damaged by activity in the Tow Carrier's establishment or from the elements or by vandals; no vehicles shall be left parked or stored on the public streets at any time; in no event shall the City be liable for any theft, vandalism or damage occurring to any such vehicle or its contents; f. Post a tag on the windshield on all cars ordered impounded by the City; g. Furnish each owner with an itemized billing and collect towing and storage charges on each stored vehicle from the owner; in no event shall the City be liable for any such charge; 4834-4847-6167.1 4 h. Confirm that the CHP Form 180 prepared by PD is accurate after PD inventories the contents.;p-prior to taking possession of any vehicle,and immediately before release, digitally photograph in a manner which shows the date and time on the photograph the inside and outside to document condition of vehicle and its contents and retain such photograph in a secure location for at least one year i. Release no vehicle without first having obtained a release from the City to do so; j. Have adequate equipment to handle calls from the City and storage of motor vehicles; k. The Tow Carrier shall operate from a location within the incorporated boundaries of the City, and all of the facilities necessary to comply with the provisions of this Agreement shall be located within the incorporated boundaries of the City; 1. The Towing Carrier shall be responsible for the security of vehicles and property at the place of storage. At a minimum, a fenced or enclosed area shall be provided. The Towing Carrier is responsible for the reasonable care,custody,and control of any property contained in towed or stored vehicles; M. The Towing Carrier may not remove property from an impounded vehicle. The Towing Carrier shall obtain approval from the City prior to the removal of any property from a stored vehicle and shall provide a receipt,with a copy placed in the stored vehicle.The requirement to obtain approval from the City prior to the removal of property may he excused by the City if it is determined that proper safeguards and procedures are utilized by the Towing Carrier; n. Upon approval from the City, the Towing Carrier shall release personal property from a stored vehicle at the request of the vehicle registered owner or agent; o. There shall be no charge for the release of personal property during normal business hours. Towing Carrier may charge an after- hours release fee for property released after normal business hours, consistent with the after-hours vehicle release provisions; P. Personal property is considered to be items which are not affixed to the vehicle. Personal property from a stored vehicle shall be released upon request of the vehicle registered owner or agent. Responses are mandatory on weekends, holidays, and outside normal business hours, provided the vehicle's current registered owner or owner's authorized agent are available for return of personal property. Payment for an after-hour release of property may be required at the time of the release; q. Cargo shall be released upon demand of the carrier or pursuant to a court 1 Order; r. The primary storage facility shall normally be at the same location as the business address. If not at the same location, there shall be no charge for any additional distance traveled to and from a secondary location.The vehicle and/or personal property shall he released at 48344847-6167.1 5 the primary storage facility or place of business upon request of the registered owner or a person having a legal entitlement to the vehicle and/or property; S. Prior to the utilization of new storage facilities that were not listed on the application for rotation tow listing,the Towing Carrier shall furnish the address and obtain the City's approval; t. Secondary storage facilities shall be located reasonably close to that main business office; U. All storage facilities shall meet all legal requirements for such facility; V. Towing Carrier's place of business shall have a sign that clearly identifies it to the public as a towing service. The sign shall have letters that are clearly visible to the public from the street. The sign shall be visible at night; W. For the purpose of this Agreement for Tow Services,"normal business hours" shall not be less than 8 a.m.to 5 p.m.,Monday through Friday,except for the following recognized holidays:New Year's Day,Martin Luther King Day,Presidents'Day,Memorial Day,Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, day after Thanksgiving Day, and Christmas Day; and X. Business hours shall be posted in plain view to the public.Offices staffed with only one employee may be closed for one hour at lunch. A sign shall be posted with the reason for closure.The sign shall have a phone number where a request will result in an immediate response to release property or vehicles. Response to the office shall be within the time frame required for tow response. 6. Towing Equipment: Tow vehicles shall be rated at a minimum of 14000 GVWR. (Class A) a. Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chasses Gross Vehicle Weight Rating (GVWR) and the classification system used by the American Trucking Association(ATA)and truck manufacturers; b. Towing Limitations: i. The total weight of the truck, including the lifted load, shall fall within the GVWR and not exceed either the Front Axle Weight Ratings (FAWR) or Rear Axle Weight Ratings (RAWR); ii. All tow trucks and car carriers shall be equipped and in compliance with the most recent electronic version of the California Highway Patrol Tow Truck Inspection Guide (CHP 234B); and, iii. The truck must meet all applicable state and/or federal standards; 4834-4847-6167.1 6 C. Identification Labels: Each piece of towing equipment shall have a label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number, model, and rated capacity; d. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can life in a winching mode,when the boom is static at a 30 degree elevation with the load lines vertical and the lifting cables sharing the load equally,measured with a live load (weight or load cell); i. The structural design of the recovery equipment must have a higher load capacity than the performance ratings; ii. Winches shall conform to or exceed the specifications set forth by the Recovery Equipment Rating(SAE) Handbook, SAEJ706; and, iii. All ratings for cable and chain assemblies are for the undamaged assembly condition. All cable and chain assemblies should be the same type, construction,and rating as specified by the original equipment manufacturer (OEM) for the equipment; and e. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. 7. Per Call Rotation System a. The City shall establish a per call rotation system of qualified Towing Carriers who have entered into Agreements with the City for the performance of towing services in response to calls from the City. All departments of the City shall comply with the rotation system. b. Towing Carrier shall comply with and qualify under all the minimum requirements set forth in this Agreement as a condition precedent to being eligible to be placed on the rotation list as follows: i. The City shall maintain a rotation tow list for Class A tow trucks to ensure an equitable distribution of calls. Nothing in this Agreement for Tow Services shall prohibit the City from requesting a specific Towing Carrier when,in the on scene supervisor's opinion, the necessary resources to clear a hazard as expeditiously as possible are not available from the Towing Carrier currently at the top of the rotation tow list. If the City needs a tow vehicle that exceeds that of a Class A tow truck,the City may,in its discretion, contact a Towing Carrier with the size of tow truck needed. In such an instance, the Towing Carrier selected would be the next Towing Carrier on the list which has the qualifications (equipment, skills, timelines, etc.) to provide the required service. After the request,the selected Towing Carrier would then go to the bottom of the rotation tow list. Towing Carriers on the same list that were 4834-4847-6167.1 7 by-passed would remain in the same order until their selection for a rotation tow for which they are qualified; ii. A call to a Towing Carrier shall constitute one turn on the list and the Towing Carrier shall be moved to the bottom of the list. This includes when the Towing Carrier fails to answer the phone, is unable to respond, is unable to perform the required service, refuses to respond or provide service, or is canceled due excessive response time. If it is determined that the Towing Carrier is not needed and is canceled by the City,up to and including arrival at the scene and standby time which does not result in a tow,there shall be no charges and the Towing Carrier will be placed back at the top of the list; a) If the Towing Carrier is cancelled by the vehicle's registered owner or agent prior to the Towing Carrier taking possession of the vehicle, there shall be no charges for towing. The Towing Carrier shall immediately contact the City and advise them of the cancellation. The Towing Carrier will then be placed back at the top of the list; and, b) If service, other than towing, recovery, and load salvage,has begun and is canceled by the vehicle's registered owner or agent, the Towing Carrier may charge one-half of the regular hourly service charges for the time expended on the call. For purposes of cancellation, service begins when physical work on the vehicle has begun,not the response.No lien shall arise for the service unless the Towing Carrier has presented a written statement to the vehicle's registered owner or agent for the signed authorization of services to be performed. The Towing Carrier shall not attempt to take possession of the vehicle in order to establish a lien for any non- towing services performed, or begun and subsequently canceled, when not entitled to such lien by law; iii. If two or more Towing Carriers are called to the same incident, distribution of the vehicles shall be at the discretion of the on-scene supervisor; iv. The Towing Carrier shall respond to calls 24 hours a day,seven days a week. Between 6:00 a.m. and 6:00 p.m., the response time shall be no more than twenty(20)minutes. Between 6:00 p.m. and 6:00 a.m.the response shall be no more than thirty(30) minutes. The Towing Carrier shall respond with a tow truck of the class required to tow the vehicle specified by the City. The Towing Carrier shall advise City dispatch, at the time of notification,if they are either unable to respond or unable to meet the maximum response time. If,after accepting the call,the Towing Carrier is unable to respond or will be delayed in responding, the Towing Carrier shall immediately notify the appropriate City department. The Towing Carrier shall not assign any calls to other Towing Carriers; 4834-4847-6167.1 8 a) A failure to respond to perform the required towing or service and/or repeated failures to meet the maximum response time requirements shall constitute a failure to comply with the terms and conditions of this Resolution and the Agreement for Tow Services; b) The City may take immediate disciplinary action for any violation of the requirement to respond within the maximum response time; and C) When a Towing Carrier will be temporarily unavailable to provide services due to a pre-planned or scheduled activity, the Towing Carrier shall notify the City at least 24 hours prior to the date that services will be unavailable, noting the times and dates of the unavailability; V. Towing Carriers shall have a minimum of three (3) verifiable years of for hire towing experience,as an owner or principal,prior to the final filing date of an enrollment period in order to qualify for a rotation tow listing; a) Towing Carriers and owners who do not meet the three year verifiable for-hire towing experience may be considered for a position on the City rotation tow list if a full-time manager who possesses the required tow management experience is employed by the Towing Carrier.An owner/Towing Carrier who releases vehicles, completes lien sale paperwork, and other tow business related documents for three years in the Towing Carrier, with the qualified manager, will fulfill the three years for-hire towing experience requirement; vi. To the extent applicable for stored vehicles, Towing Carrier shall give or cause to be given written notice to the registered and legal owners of each vehicle which is towed in conformity with the authorization and requirements of this Agreement concerning the fact of such towing,the place at which such vehicle is stored and the imposition of charges for towing,storage and related services whenever the Towing Carrier knows or is able to ascertain from the registration records in the vehicle or from the registration records of the Department of Motor Vehicles the name and address of the registered and legal owners. The notice shall be given ten (10) days from the date of the towing of the vehicle by the Towing Carrier. SBPD shall be responsible for such notice for impounded vehicles; vii. The Towing Carrier shall post in its office a list of rights of the owner of the vehicle under this Agreement for Tow Services. The rights are set forth on Exhibit E to this Resolution; and 4834-4847-6167.1 9 viii. A stored vehicle shall be released to the registered owner upon presentation of the registration and valid proof of identification (as provided in Vehicle Code Section 22860.3)and payment of all towing and storage charges If the Towing Carrier does not release the vehicle as required by this subsection upon presentation of registration and valid proof of identification and payment of all charges, storage charges shall cease on the date of presentation of the documentation and payment of the accrued charges. 8. Compensation for Tow Services: Tow Carrier shall charge for services on calls by the City in an amount not to exceed ten ($10) above the hourly rate set by the California Highway Patrol. Tow Carrier is responsible for collection of all such fees and charges. a. The rate for towing shall be computed from portal to portal. Time ogxnded shall be charged at a rate not to exceed the hourly rate. Time expended in excess of the minimums shall also be at the hourly rate in no more than one-minute increments. There shall be no additional charges for mileage, labor, etc: i. The Towing Carrier may charge up to a thirty-minute minimum per call for any service or tow which is performed when the vehicle operator or agent is present and the vehicle is not stored at the discretion of an officer; and, ii. The Towing Carrier may charge up to a one-hour minimum per call on responses which result in storage of a vehicle at the direction of an officer; b. Rates for a service call(out of gas,lockouts,tire changes, etc.)shall be from portal to end of service, and may be at the hourly rate with a thirty-minute minimum. Charges in excess of thirty-minutes may be charged in no more than one-minute increments; and, C. Standby time for tow trucks will begin one(1)hour after receipt of calls from the City, and is defined to mean the time consumed after the first hour in necessary preparations in order to tow the disabled vehicle and in cleaning up the immediate surrounding area. 9. Compensation for Storage: Tow Carrier shall charge for services for storage at the storage rate set by the California Highway Patrol for the San Bernardino area. Tow Carrier is responsible for the collection of all such fees and charges. a. Fees for inside storage shall be charged only when inside storage is requested by the City, registered owner, legal owner, insurance company, or when the inside storage can otherwise be justified by the Towing Carrier; b. The Towing Carrier shall display in plain view at all cashiers stations,a sign as described in Section 3070 of the Civil Code. , disclosing storage fees, lien release fees, and charges in force, including the maximum storage rate; 4834-4847-6167:1 10 C. Vehicles stored 24 hours or less shall be charged no more than one day storage; and, d. Storage of vehicles in combination may be charged a per vehicle rate except for dollies and con-gear. Dollies and con-gear may be charged a storage rate not to exceed Class A storage fees; e. The charge for after-hours release shall be no more than one-half the hourly rate, and shall only be allowed on weekends,holidays, and outside normal business hours; f. The approved schedule of rates charged by the Towing Carrier shall be available in the tow truck, and shall be presented upon demand to the persons for whom the Tow Services were provided, their agent, or any officer at the scene; g. Rate requirements represent the maximum a Towing Carrier may charge on a City call. A Towing Carrier is not precluded from charging less when deemed appropriate by the Towing Carrier. These requirements shall not be construed as requiring a charge if a Towing Carrier would not normally charge for such service; h. Towing Carrier or employee shall not refer to any rate as required or set by the City; i. In the event that a towed vehicle is forfeited by the owner in accordance with Section 14607.6 of the California Vehicle Code, the proceeds of the sale of the vehicle shall be distributed pursuant to said section of said Code; and j. The Towing Carrier shall accept all guaranteed forms of payment including, without limitation,money orders,certified checks,debit cards and all widely accepted credit cards. There shall be no surcharge for the use of a credit card. If the form of payment cannot be accepted by the Towing Carrier due to any failure by the Towing Carrier or Towing Carrier's payment processing equipment, Towing Carrier shall not charge storage fees beyond date of such failure. 10. City Fees and Franchise Fees. In addition to the amounts charged vehicle owners, Tow Carrier shall pay the following fees to the City in the manner set out here. a. Impounded Vehicles:Registered Owner shall pay to the City an administrative release fee of$349 per vehicle towed, impounded and thereafter stored; b. Stored vehicles: There shall not be a fee charged for stored vehicles based upon the City's determination that such fees most often would be charged to the victims of crimes(auto theft) or accidents; c. Franchise Fee: Tow Carrier shall pay the following franchise fees per vehicle towed under this Agreement (collectively"vehicle) during the initial term of this Agreement and shall not be passed through to vehicle owners in any manner: 4834-4847-6167.1 11 Year 1 (effective date of Agreement, 2011, through June 30, 2012) - $70.00/vehicle Year 2 (July 1, 2012 through June 30, 2013) -$72.10/vehicle Year 3 (July 1, 2013 through June 30, 2014) - $74.25/vehicle Year 4 (July 1, 2014 through June 30, 2015) - $75.50/vehicle Year 5 (July 1, 2015 through June 30, 2016) - $79.00/vehicle Such franchise fees may be adjusted by the City after the initial 5-year term hereof; d. Verification of Tows and Payment of Franchise Fees: By the 15I'of each month, Tow Carrier shall submit to the Police Department a list of all vehicles towed under this Agreement during the previous calendar month, including but not limited to owner's request tows. The list shall be in a format acceptable to the Police Department and shall include the case number, vehicle license plate number and vehicle identification number. At the same time as the list is provided, Tow Carriers will remit franchise fee payment to City for the vehicles towed during the previous calendar month. Any amounts not paid by the 15"'of the following month shall bear interest at the rate of 10%per annum, simple interest, compounded daily until paid; and e. City fees (including but not limited to the list prepared) are subject to audit and verification as set out herein whether as part of an annual review or otherwise. 11. Employees: a. The Towing Carrier shall insure that tow truck drivers responding to calls initiated by the City are qualified and competent employees of the Towing Carrier's company. The Towing Carrier shall ensure that the tow truck drivers are trained and proficient in the use of the tow truck and related equipment, including, but not limited to, the procedures necessary for the safe towing and/or recovery of the various types of vehicles serviced through City rotation. Tow drivers shall perform all towing and recovery operations in the safest and most expedient manner possible. Tow truck drivers shall be at least 18 years of age and shall possess the proper class license and endorsements for the towed and towing vehicle; b. The Towing Carrier shall maintain a current list of drivers; C. All tow truck drivers and owner/Towing Carriers shall be enrolled in the Pull Notice Program; i. Upon the addition of new drivers, a Towing Carrier will be granted a maximum of 30 days to enroll drivers in the Pull Notice Program; ii. Pull Notices shall be kept on file, signed, and dated by the Towing Carrier; and, iii. The City may require a Towing Carrier to provide copies of Pull Notice Reports to the City; 4834-4847-6167.1 12 d. The Towing Carrier,or Towing Carrier's employees responding to a call,shall perform the towing or service required for which they were called unless the requested equipment is inadequate for the service to be performed; and, e. Only the tow truck personnel and equipment requested shall respond to the City call. A Towing Carrier shall not respond to a City call assigned to another Towing Carrier unless requested to do so by the City; i. This shall not preclude the Towing Carrier from responding to an incident to ascertain if additional assistance or equipment is required. There shall be no additional charge for any personnel or equipment that is not necessary to perform the required service; ii. There may be times when the Towing Carrier assigned the initial call may require the assistance of an additional Towing Carrier at the scene. The Towing Carrier assigned the initial call may,subject to prior Agreement with the City and with the concurrence of the on scene supervisor, request a specific Towing Carrier for assistance. The request shall be routed to the additional Towing Carrier through the City; and, iii. There may be times when a Towing Carrier, who was not called to a scene, comes upon a collision scene where a vehicle or vehicle are blocking a roadway and an officer requests assistance in clearing the roadway.In such a case, the Towing Carrier may be requested to move the vehicle to a safe location,as directed by the officer, and leave it.There shall be no charge for this assistance and the assistance provided shall not change the Towing Carrier's place in the rotation. f. Employees shall he properly trained to conduct business transactions related to towing, storage, and release of vehicles/property; g. Uniforms: While engaged in tow operations hereunder, City rotation tow drivers shall wear an identifiable uniform shirt displaying the Tow Carrier's and driver's names;and h. Safety Vests: City rotation tow drivers shall wear a safety vest and/or reflectorizing clothing, as well as any other safety clothing required by and meeting CalOSHA and Occupational Safety and Health Administration (OSHA) requirements. 12. Complaint Procedure: All City related tow service complaints from the public received by the City against a Towing Carrier or Towing Carrier employees will be accepted and investigated in a fair and impartial manner pursuant to procedures utilized by the Police Department or as set out herein. The Towing Carrier will be notified of the results of any investigation. 13. Records: Each month, Towing Carrier shall submit a list of all vehicles towed the previous month, including license plate numbers and vehicle identification numbers, and shall identify clearly all impounded vehicles towed to its storage facility. 4834-4847-6167.1 13 a. The Towing Carrier shall maintain records of all Tow Services furnished. The records will be maintained at the Towing Carrier's place of business. Invoices shall at a minimum include a description of each vehicle,nature of service,start time,end time,location of call,itemized costs of towing and storage, the tow truck driver's name, and truck used; b. At the Towing Carrier's primary office,the Towing Carrier shall also maintain business records relating to personnel, insurance, personnel taxes, payroll, applicable operating authorities, local operating authorities, lien sale actions, Federal Communication Commission licensing, and non-City I tows; C. The City may inspect all Towing Carrier records without notice at any time during normal business hours and during the annual reviews; d. Towing Carrier shall permit the City to make copies of business records at its place of business, or to remove business records for the purpose of reproduction. The City shall provide a receipt for any(original)records removed from the place of business; e. Records shall be maintained and available for inspection for a period of four (4) years after the termination of this Agreement for Tow Services; and, f. Failure of the Towing Carrier to comply with the inspection requirements shall be cause for suspension and/or termination of this agreement. 14. Audit: a. Upon reasonable advance written notice, City or its designee shall have the right to review and audit the books of Towing Carrier's place of business and during business hours. In the event that such audit shows a 5% or greater variance in revenues owing to the City by Tow Carrier,the following amounts shall be owing by Tow Carrier to City: 1)the amount determined to be owing as a result of the audit; 2) simple interest at the rate of 10% on the amounts owing, compounded daily from the due date; 3) both 1) and 2) shall be paid within 10 calendar days of notification of the deficiencies; and 4)Tow Carrier shall pay the reasonable costs of the audit based upon invoices provided by City; and b. In the event that an audit shows an 10%or greater variance in revenues owing to the City, the following amounts shall be paid to the City by that Tow Carrier: 1. the amount owed as a result of the audit; 2. simple interest at the rate of 10%on the amount owed,compounded daily from the due date; 3. the amount owed including interest shall be paid within 10 calendar days of notification of deficiencies; and 4. pay the reasonable costs of the audit; 4834-4847-6167.1 14 c. In the event the audit determines a 15%variance in revenues owing to the City, such result may be ground for action under Section 17 herein. 15. Assignment: Any assignment of this agreement due to change in ownership requires the approval of the City Council to continue on the tow rotation.Any change of ownership must be reported to the Police Department in writing within seven(7)days of such change. Thereafter, Police Department will review the proposed new owner(s) under the standards set out in this Agreement and procedures the Police Department adopts therefor. Within 30 days of the date of notification of the change of ownership, the Police Department shall report the results of its review to the City Council,which shall approve or deny the assignment of this Agreement to the new owner. In the event the City Council denies the assignment,the Agreement shall terminate as of the date of such denial and the Police Department shall initiate procedures to replace the Tow Carrier in the towing rotation. Such termination is not subject to the appeal provisions hereof or of Resolution No. 2005-286. 16. Standards for Performance:While involved in City rotation tow operations or related business, the Tow Carrier and/or employees shall refrain from any acts of misconduct including,but not limited to, any of the following: a. Rude or discourteous behavior; b. Lack of service, selective service, or refusal to provide service which the Towing Carrier should be capable of performing; C. Any act of sexual harassment or sexual impropriety; d. Unsafe driving practices; e. Exhibiting any objective symptoms of alcohol and/or drug use; f. Appearing at the scene of a City rotation tow call with the odor of an alcoholic beverage emitting from the Tow Carrier's employee's breath. The Towing Carrier employee shall submit to a preliminary alcohol screening test upon demand of the City; g. Should the filing of criminal charges be a possibility,the City will conduct the investigation to conclusion or assist the lead investigation agency and, if warranted, request prosecution; h. Traffic Violations; i. In the event of a minor traffic violation by a tow truck driver which is known by the City,the Towing Carrier shall be advised of the violation by the City. The Towing Carrier will be granted the opportunity to take necessary steps to ensure that the driver complies with the law. Any subsequent traffic 4834-4847-6167.1 15 i violations may be cause for disciplinary action against the Towing Carrier and/or the involved employee(s); ii. Any flagrant traffic violation may be cause for immediate disciplinary action against the Towing Carrier and/or the involved employee(s); and, iii. The provisions contained in any compliance with law provisions in this Agreement do not preclude the City from taking appropriate enforcement or administrative action for any violations of law. Complaints for violations of the law not normally investigated by City will be referred to the agency with investigation jurisdiction; i. Any conviction of the Towing Carrier or employee involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of violence,a drug-related offense,felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug, or moral turpitude while involved in a City rotation tow call shall be cause for removal of the Tow Carrier from the list of current City rotation, denial of Towing Carrier application, or termination of this Agreement; j. A Tow Carrier or employee arrested/charged for a violation involving any of the above crimes may be suspended until the case is fully adjudicated.Records of violations shall be retained by the City for at least 36 months; k. A violation of the equipment requirements related to safety shall be cause for immediate suspension of the Tow Carrier from the tow rotation.The suspension will remain in effect until the period of suspension is completed and the City has conducted an inspection and concluded the Tow Carrier is in compliance; 1. A violation of the GVWR and safe loading requirements of a tow truck may be cause for immediate suspension of the Tow Carrier. This includes exceeding the tow truck's GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck's unladen front axle weight on the front axle when in tow; M. A violation of intentionally overcharging or a pattern of overcharging or of non-payment of City fees shall be cause for suspension of the Tow Carrier. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has presented proof to the City that reimbursement has been made to the aggrieved customer; n. City personnel shall not be offered gratuities,and requests for gratuities shall not be honored by Tow Carriers, employees, or associates of the Tow Carrier. A violation of this section shall be cause for suspension or termination; o. Failure of the Tow Carrier to satisfy a court order mandating reimbursement to the vehicle owner or property owner for the damage or loss which occurred while the vehicle was in the Towing Carrier's custody will result in a suspension.The suspension will remain in effect until the period of suspension is completed and the Towing Carrier has presented proof of the reimbursement; 48344847-6167.1 16 p. Failure of the Tow Carrier to comply with the inspection requirements of this Agreement for Tow Services shall result in a suspension.The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has complied with the inspection requirement; q. Failure of the Tow Carrier to send tow truck drivers who are qualified and competent employees on City calls shall be cause for suspension. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has presented proof to the City that the driver is qualified and competent; and, r. Failure f h o the Tow Carney to maintain the minimum insurance requirements set forth in the Agreement for Tow Services will immediately nullify the Agreement for Tow Services. The Tow Carrier will be subject to an additional suspension for failure to notify the City in advance of the insurance policy expiration or cancellation. 17. Suspension and Termination for Cause: The City shall take disciplinary action against Tow Carriers for violations investigated and confirmed or sustained.Unless otherwise noted,the City shall determine the period of suspension.The City shall retain discretion regarding the length of any suspension imposed pursuant to the terms and conditions of this Agreement for Tow Services. a. Violations of the terms and conditions of this Agreement may be cause for disciplinary action against the Tow Carrier as follows;in lieu of termination,the City may impose additional suspension for longer periods, if deemed appropriate; i. First violation within a 12 month period- letter of written reprimand; No changes to these per PD; ii. Second violation within a 12 month period - 1 to 30 day suspension; iii. Third violation within a 12 month period - 60 to 90-day suspension; and, iv. Fourth violation within a 12 month period-termination of the Agreement for Tow Services. b. Violations of the terms and conditions of this Agreement that are subject to suspension for the first violation are categorized as major violations.Any subsequent or continuing major violation may be cause for termination; i. When considering punitive action for a major violation of the Agreement,the City may take into consideration all major and minor violations that occurred within 36 months prior to the date of the current violations; and, ii. Termination shall be invoked if, in the City's sole judgment, continued participation in the Rotation Tow Program by the affected Towing Carrier 4834-4847-6167.1 17 may result in a hazard to public safety and/or welfare, or any conviction of the Towing Carrier or employee involving a stolen or embezzled vehicle, fraud related to the towing business,stolen or embezzled property,a crime of violence, a drug-related offense, felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug, or moral turpitude while involved in a City rotation tow call; C. Nothing herein shall be deemed to prohibit the City from immediately suspending any Towing Carrier or employee whose conduct,in the opinion of the City,is deemed to be a danger to the motoring public or who has engaged in conduct constituting a flagrant violation of the Agreement for Tow Services; d. Administrative Hearing: In the event the City serves the Towing Carrier with Disciplinary action, the Towing Carrier may request a hearing within seven calendar days by submitting a request in writing to the Traffic Sergeant at the Police Department. If a hearing is requested, it shall be held as soon as practical. The hearing shall be conducted by the Traffic Sergeant or designee, and the Tow Carrier shall be entitled to present all relevant facts and circumstances in support of the Tow Carrier's position.The Tow Carrier shall be further entitled to present testimony of at least one qualified person. The Tow Carrier shall be notified in writing of the Traffic Sergeant's decision(s) within ten business days of the date of completion of the hearing; e. Appeal from Administrative Hearing:Following a hearing,if the Tow Carrier is dissatisfied with the Traffic Sergeant's decision(s), the Tow Carrier may appeal by submitting a request in writing to the City Clerk, pursuant to Municipal Code Chapter 2.64, and paying any applicable fees; f. A suspension shall not take effect until the hearing and appeal process has been exhausted, with the exception of Tow Carriers whose conduct deemed to be a danger to the motoring public or who continue to violate the terms and conditions of this Agreement for Tow Services. If a Tow Carrier fails to request a hearing or appeal,the action taken by the, City shall be final, and the suspension shall take effect upon written notification to the Tow Carrier by the City; and g. A terminated or suspended Tow Carrier, and/or the Tow Carrier Business owner at the time of the suspension or termination shall not be eligible for a rotation listing for the duration of the suspension or termination.This provision applies to the Tow Carrier working in any capacity within any tow business or operating any tow business,and to the tow business,even if operated under new ownership.This provision does not apply to Section 16 regarding termination due to a change in ownership. 18. Notice: Any notice to be given pursuant to this Agreement by either party to The other shall be given by personal service or shall be deemed given when deposited with the United States Postal Service, first class, postage prepaid, and addressed as follows: 4834-4847-6167.1 18 To the City: City Manager 300 North "D" Street San Bernardino, CA 92418 To Towing Carrier: Hayes Towing 5486 Industrial Parkway San Bernardino, CA 92407-1859 19. Miscellaneous: This Agreement represents the entire Agreement between the City and the Tow Carrier and fully supersedes any and all previous Agreements enter into by and between the City and Tow Carrier. This Agreement may be amended only in writing agreed upon by all affected Tow Carriers.No waiver of any term or condition of this Agreement shall be a continuing waiver thereof. 20. Attorneys' Fees: In the event of litigation to enforce this Agreement, the prevailing party in such litigation shall be entitled to reasonable costs and attorneys' fees, as determined by the Court. As used here, "attorneys' fees" includes the costs, salary and expenses of the City Attorney and members of his office. IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the day and date first above shown. CITY OF SAN BERNARDINO By: City of San Bernardino Attest: By: TOW CARRIER: HAYES TOWING By: Print Name: Approved as to Form: JAMES F. PENMAN City Attorney By: 4834-4847-6167.1 19 i i i s i i i i s 8 t l i f EXH[BIT "A" EXHIBIT A TOW CARRIERS MINIMUM REQUIREMENT'S (EFFECTIVE FOR TOW CARRIERS ENTERING THE CITY'S TOW ROTATION AFTER THE EFFECTIVE DATE OF THIS RESOLUTION) A. Have a minimum outside storage space of 65,000 square feet capable of storing at least 200 vehicles. B. Minimum inside storage space of 2000 square feet capable of storing at least five (5) automobiles. C. Security fencing around the entire outside storage space. D. Monitored alarm system-If the outside storage space is not alarmed,the inside storage must be. E. Minimum of three Class A tow trucks. F. Current City Business License. G. Certificate of Occupancy. H. Hazardous Material Handler's Permit. I. Have either an inside or outside customer waiting area for at least five customers of 100 square feet. The outside waiting area shall exclude parking and landscape areas. J. Have a minimum of three years of for-hire towing experience as an owner/principal or have a qualified manager with the experience. K. Have an attendant on call twenty-four (24) hours a day, seven days a week at place of business. L. Have no more than two telephone numbers listed with any City department. M. Store towed vehicles in a safe, lighted and protected space where the vehicles and their contents will not be accessible to thieves nor be damaged by activity in the carrier establishment or from the elements or by vandals;no vehicles shall be left parked or stored on the public streets at anytime; in no event shall the city be liable for any theft,vandalism or damage occurring to any such vehicle or its contents. N. Post a tag on the wind shield of all cars ordered impounded by the City. � O. Collect all towing or hauling and storage charges on each vehicle from the owner; in no event shall the city be liable for any such charge. 1 P. Whenever a vehicle has been involved in an accident or a traffic violation,and the owner or someone delegated by him is present and is capable of removing the vehicle from the street with reasonable dispatch, and the vehicle is not needed for criminal evidence, City and/or towing carrier shall permit the owner or his delegate to remove the vehicle or call a towing company of his or her own choice to remove the same;provided, however, that if the street cannot be cleared for safe public use with reasonable dispatch by the above method, and in all situations other than above set forth, a towing carrier from the top of the rotation list will be called by the City. Q. Furnish each owner with a fully itemized billing. R. Immediately after each towing operation, make a towing slip with the contents of each vehicle placed in his or her care itemized thereon as verified by the officer ordering the same and make the slip available to the City on request. S. Release no impounded vehicle without first having obtained a release from the City to do SO. T. Agree to a rotation system established by the City. U. Comply with all rules, regulations and laws of the State of California, County of San Bernardino and City of San Bernardino. V. Have adequate equipment to handle calls from the city, impounds, and storage of motor vehicles. W. The carrier shall operate from a location within the City of San Bernardino, and all of the facilities necessary to comply with the provisions of this resolution shall be located within the City of San Bernardino. X. Carry a broom,trash can and sand, clean and remove broken glass, spilled oil,or gasoline from the area before departing, unless directed to not do so by police officers and/or designated City employees at the scene. Y. Each tow carrier shall maintain insurance pursuant to the requirements set forth below. The City of San Bernardino shall be named as an additional insured on all policies including the workers compensation policies. Tow carriers shall provide an endorsement to each policy showing the City as an additional insured. 1. The operator shall maintain the following minimum levels of insurance from an insurance carrier admitted in California, or admitted in the state in which the operator's business is located, and is authorized to do business in California: ® Minimum Level of Financial Responsibility(as required by Section 34631.5 a) � of the California Vehicle Code) -Bodily injury and property damage with 2 a combined single limit of not less than$750,000 for Class A tow trucks. These minimum standards are to include non-owned and hired auto coverage. b) Uninsured Motorist- Legal minimum, combined single limit. c) On-Hook Coverage/Cargo - Insuring the vehicle in tow with limits based on the size of the tow truck. d) Garage Liability/Garage Keeper's liability - Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than$500,000. 2. Proof of insurance shall be in the form of a certificate of insurance. Policy expiration or cancellation will immediately nullify the Agreement for Tow Services between the carrier and the City. The operator's insurance policy shall provide for not less than 30 days written notice to the City in the event the insurance policy is canceled or is due to expire. Z. Tow vehicles shall be rated at a minimum of 14000 GVWR.(Class A) 1. Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chassis Gross Vehicle Weight Rating(GVWR) and the classification system used by the American Trucking Association(ATA) and truck manufacturers. 2. Towing Limitations: H a) The total weight of the truck, including the lifted load, shall fall within the GVWR and not exceed either the Front Axle Weight Ratings(FAWR) or Rear Axle Weight Ratings (RAWR). b) All tow trucks and car carriers shall be equipped and in compliance with the most recent electronic version of the California Highway Patrol Tow Truck Inspection Guide(CHP 234B). c) The truck must meet all applicable state and/or federal standards. 3. Identification Labels: Each piece of towing equipment shall have a label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number, model, and rated capacity. 4. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can lift in a winching mode,when the boom is static at a 30 degree elevation with the load lines vertical and the lifting cables 3 1 3 sharing the load equally, measured with a live load (weight or load cell). a) The structural design of the recovery equipment must have a higher load capacity than the performance ratings. b) Winches shall conform to or exceed the specifications set forth by the Recovery Equipment Rating (SAE) Handbook, SAE J706. c) All ratings for cable and chain assemblies are for the undamaged assembly condition. All cable and chain assemblies should be the same type, construction,and rating as specified by the original equipment manufacturer (OEM) for the equipment. 5. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. 6. Uniforms: City rotation tow drivers shall wear an identifiable uniform shirt displaying the company and dr'iver's names while engaged in City rotation tow operations. 7. Safety Vests: City rotation tow drivers shall wear a safety vest or reflectorizing clothing, meeting Occupational Safety and Health Administration (OSHA) requirements. AA. The City may grant additional points or deduct points as set forth in Exhibit B to Resolution No. BB. No tow carrier is exempt from meeting legal requirements imposed by any city,county,State or Federal laws or regulations. An example of this is the Clean Water Act. 4 I i i 3 j� S I EXIIIBIT"B" EXHIBIT "B" Preliminary Application Review Applications that do not currently meet all of the following minimum qualifications will be rejected and returned to the tow carrier with a cover letter stating the reason/s for rejection. Tow Carrier Name Date Internal Use Only Qualification Yes No 1. Meets all standards of the most current city resolution establishing standard criteria for tow com awes. 2. Tow business office and storage facility located within San Bernardino City limits. 3. Minimum Outside Storage of 200 vehicles,65,000 sq. ft. 4. Minimum Inside Storage of 2,000 sq. ft. 5. Secure,lighted storage facility 6. . Attendant on-duty 24 hours 7. 24 hour service including weekends and holidays 8. Minimum of three certified Class A tow trucks 9. Current City Business license 10. Certificate of Occupancy [ ] Permanent [ ] Temporary 11. Hazardous Material Handlers Permit Current 12. Monitored Alarm System: If outside perimeter is not alarmed then inside storage must be. 13. Minimum inside waiting area of 100 sq. ft. 14. Minimum outside waiting area, excluding parking space and landscaping,of 100 ft. 15. Operator has three years of verifiable towing experience as an owner or principle, or has a full time manager who possesses the reauired ex erience. 16. Financial Interest in another tow company providing services to the City 17. Prior conviction(s),guilty plea, or nolo contendere plea that excludes tow carrier Comments UATow stufflApplication Preliminary Review Check List 2-1-011.doc I EXHIBIT "C" EXHIBIT "C" SELECTION PROCESS ATTACHMENT Tow Carrier: Date: Contact Information Agency Name Contact Person Title Telephone# . Date of Contact I Governmental Agency Tow Service History Agency Number of Negative Complaint History Actions #Sustained #Unfounded Revised 7/19/2005 EXHIBIT "C" SELECTION PROCESS ATTACHMENT Each tow carrier shall be awarded a point value for each of the in-depth investigation categories. The points may range from negative values(deductions)to positive values(additions). Meeting the minimum qualifications in a specific category will have a point value of zero. Tow Service History Points Lost Negative Actions are defined as any notice of Total Points Lost disciplinary action by a governmental agency or issuance of a citation that results in sanctions or conviction. 1 - 4=- 5 16-20=-30 5- 10=-10 21 -25=-40 11-15=-20 25+ =- 50 Government Agency Name Date of Action Summary of Action Business Expiration Date: License Number: .7 -- Sub-Total Tow Service History Facility Inspection Minimum Outside Additional Outside Space Minimum Inside Additional Inside Space Total Storage Space 10,000-20,000 sq. ft.=+5 Storage Space 1,000-1,500 sq.ft.=+5 Points Required 65,000 sq.ft. 20,001 +sq. ft.=+10 Required 2,000 sq.ft. 1,501 +sq.ft. =+10 J Oce Area Front of Business Rear of Business=-2 Unimproved Walkway for customer lLocaft'ion/Access No Obstructions access=-2 0 Staffing/Organization 1 person to 24 able to conduct routine business=+2 *Routine business includes the conduct routine 5+able to conduct routine business=+5 release and sale of vehicles' business O Customer Inside 100 sq. ft.minimum=0 Seating for Public access to customer files Waitin Area 100 additional sq.ft=+2 Customers=+2 =-10 Revised 7/19/2005 EXHIBIT "C" SELECTION PROCESS ATTACHMENT Customer Outside 100 sq.ft.of outside Entire Area Covered=+2 Waiting Area waiting area=+2 Some Area Covered=+1 (excluding parking Seating for Customers=+2 ace and land Security/Fencing No Damaged Areas=0 Yard Motion Beams=+2 *Damage is areas that allow Damaged Areas=-5 Recorded Video Camera Unintended access to =+5 vehicles Hazardous Material Proper Storage& Improper Storage/Item Handler Permits Solid=-2;Liquid=-5 0 Tow Trucks Minimum of 3 Certified Additional Certified Class A Class A Trucks Trucks 1-3=+2;4+=+5 Tow Truck Broken or Damaged Equipment=-1 per item Missing or Non-Useable Equipment Equipment -5 per item Required Equipment *Specified on Tow Truck Inspection Guide* Pull Notices On File=0 Missing=-5 per driver Business Records On Site=0 Readily Accessible=+2 Not readily accessible= Immediate Retrieval of Records -5 Comments: Subtotal of Tow Service History Points Subtotal of Facility Inspection Points Total Points In Depth Investigation Conducted By: Print Name and Rank Reviewed/Approved By: Print Name and Rank Revised 7/19/2005 ® „ „ EXHIBIT D MIBIT "D" City of San Bernardino Selection Process of Tow Carriers The attached documents are samples of those the SBPD proposes to use when positions become available for tow carriers to provide service to the City of San Bernardino. The documents are in order in which they will be used during the selection process. 1. The SBPD gives notice of an available tow carrier position via advertisement in a local newspaper,Channel 3 posting and notice to local Chamber of Commerce. 2. Interested tow carriers request application packages through the SBPD Traffic Unit. 3. The SBPD Traffic Unit mails or gives an application package to the requesting tow carrier: a) Letter acknowledging request for package b) Tow Rotation List Application/Copy of current Agreement For Tow Services 4. Tow Carrier returns completed application by due date for consideration. 5. The SBPD reviews the returned application to ensure that the applicant meets the minimum criteria: a) Criteria met,letter sent to tow carrier b) Criteria not met, letter sent to tow carrier I 6. Application package assigned for completion: a) Contact Government agencies to whom tow carrier provides service b) Business licensing c) Certificate of occupancy d) Hazmat handlers permits 7. Conduct inspection: a) Licensing/Hazmat requirements compliance b) Rate posting compliance c) Tow Service Agreement compliance d) Total point value calculated from selection process attachment S. Completed application and inspection packages given to City Council for selection of tow carrier(s)with rankings based on total points. 9. Required documents filed for formal entry of an Agreement For Tow Service with selected tow carrier. a) Request for Council Action b) Drafted Resolution c) Agreement for Tow Services between the City of San Bernardino and tow carrier i EXHIBIT"E" EXHIBIT"E" RIGHTS OF PERSONS WHOSE VEHICLES ARE TOWED AT THE REQUEST OF THE CITY OF SAN BERNARDINO (TO BE POSTED IN VISIBLE LOCATION IN TOWING CARRIER'S OFFICE) Tow operators who tow vehicles at the request of the City of San Bernardino operate under an Agreement for Tow Services with the City. The agreements require the tow operators to comply with certain rules and provides the following rights to the owner of a towed vehicle. The owners'rights are summarized as follows: 1. Notice to the registered and legal owners of the vehicle within 10 days of being towed of location of vehicles and charges. 2. Normal business hours are 8:00 am. to 5:00 p.m. Monday through Friday except recognized holidays of New Year's Day,Martin Luther King Day,Presidents'Day,Memorial Day, Independence Day,Labor Day,Veteran's Day,Thanksgiving Day and Christmas Day. 3. Business hours to be posted for viewing by the public. 4. Tow operators shall respond to after hours release within thirty minutes. 5. Tow operators shall accept all guaranteed forms of payment and widely accepted credit cards without a surcharge. 6. If a stored or impounded vehicle is not released once proper documentation and identification are provided and all charges paid,further storage charges shall cease as of the date of presentation and payment. 7. Itemized invoices shall be provided. 8. Right to file a complaint with the City of San Bernardino. AGREEMENT FOR TOW SERVICES (EXISTING TOW CARRIERS) THIS AGREEMENT FOR TOW SERVICES(this"Agreement")is entered into this Fourth day of April, 2011, by and between the CITY OF SAN BERNARDINO ("City") and Danny's Towing (Tow Carrier"or"Towing Carrier") effective April 4, 2011 (the"Effective Date"). RECITALS A. The Vehicle Code authorizes City regulation of involuntary towing and storage with appropriate compensation therefore, which compensation covers the reasonable cost (including direct and indirect overhead) as well as franchise fees; and B. City has adopted Resolution No.2005-286,as amended by Resolution No.2008-347, "Establishing Standard Criteria for Companies to Provide Tow Services"and the Exhibits attached thereto; C. The Resolutions cited above presently provide for a towing rotation franchise within the City for the more efficient regulation and operation of tow companies with the ratio of one tow company chosen for the rotation for each 35,000 people within the City; D. The City and the six (6) Tow Carriers currently on the rotation have agreed that it promotes ease of operation to restate such existing requirements in one Agreement which reorganizes the proposed model contracts for existing and new Tow Carriers as those proposed contracts were set out in Resolution 2005-286 and that this Agreement contains the same provisions regarding operation of the tow rotation and requirements for Tow Carriers; E. City shall not pursue the establishment of an impound yard. F. In consideration Tow Carriers have agreed to the revised or additional provisions including but not limited to those regarding franchise payments and audits; G. This revised and updated Agreement,upon execution by each of the six(6)existing Tow Carriers, shall supersede in their entirety any and all prior agreements between the City and each Tow Carrier; and H. City finds and Tow Carriers agree that the compensation and other provisions of this Agreement meet the requirements of all applicable laws. NOW, THEREFORE, the parties hereto agree as follows: 1. Recitals. The Recitals set out above are true and correct. 2. Provision of Tow Services by Tow Carrier 4834-4847-6167.1 1 a. Term; Extension at City's Option: This Agreement shall commence on the Effective Date for a term of five years unless sooner terminated hereunder. This Agreement maybe extended as to the Tow Carrier upon the City's sole determination that Tow Carrier is in compliance with all terms and conditions hereof. Such an extension shall be for an additional 5years. There is no promise and should be no expectation of such extension. Failure to grant such extension shall result in termination of this Agreement, which termination is not subject to the appeal provisions hereof or of Resolution No. 2005-286. At the end of the term of the Agreement, whether or not extended,there shall be no more extensions of this Agreement and Tow Carrier understands it is not entitled to any such additional extension, nor may the City grant such additional extension. This Agreement confers a privilege and not a right; b. Tow Carrier hereby agrees to provide Tow Services to the City pursuant to terms and conditions contained in this Agreement. "Tow Services"means the following types of nonconsensual towing initiated by the City,including but not limited to code enforcement tows: (i) towing of involuntarily impounded vehicles (where such impound is authorized under the Vehicle Code) to the Tow Carrier's storage yard and storage there; and (ii) towing and storage of non- impounded vehicles when directed to do so by City personnel or by the owner (owner's request tows); C. Whenever a vehicle has been involved in an accident or a traffic violation,and the owner or someone delegated by the owner is present and is capable of removing the vehicle from the street with reasonable dispatch,and the vehicle is not needed for criminal evidence,City and/or Tow Carrier shall permit the owner or his delegate to remove the vehicle or call a tow carrier of his or her own choice to remove the same; provided, however, that if the street cannot be cleared for safe public use with reasonable dispatch by the above method,and in all situations other than above set forth, a Tow Carrier from the top of the rotation list will be called by the City; and d. This Agreement supersedes any and all prior agreements between the parties as to the subject matter hereof. 3. General Requirements of Tow Carriers: a. Tow Carrier shall comply with all rules,regulations and laws of the State of California,the County of San Bernardino and the City of San Bernardino,including but not limited to those applicable to storage facilities. Tow Carrier shall also comply with all provisions of the Resolution of the Mayor and Common Council of the City of San Bernardino Establishing Standard Criteria for Companies to Provide Tow Services for the City of San Bernardino as said Resolution exists and/or as said Resolution may be amended from time to time; b. Tow Carrier shall specifically comply with Exhibits A through E of Resolution No. 2005-286 attached thereto and set out as follows: Exhibit A—Minimum Tow Service Requirements Exhibit B - Preliminary Application Review Exhibit C - Towing Carrier Selection Process 4834-4847-6167.1 2 Exhibit D - Selection Process Exhibit E- Rights of Persons Whose Vehicles are Towed at the Request of City C. No Towing Carrier or applicant shall be directly involved in the towing related business of any other Towing Carrier or applicant on the City's tow rotation; d. Storage facilities owned by a Towing Carrier,and shared with another Towing Carrier, shall be approved only if the owner-Tow Carrier charges for the space exclusively on a flat monthly rate rather than a vehicle-by-vehicle basis, or combination thereof. Facilities shared by Towing Carriers shall be physically separated and secured from each other; e. The City shall conduct, at a minimum, one annual meeting with all Tow Carriers to discuss issues concerning the tow rotation. All meetings shall be mandatory for the Towing Carrier or Towing Carrier's designee wishing to remain on rotation.The City shall give the Towing Carrier 30 day's prior written notice of these meetings. The City may call additional required and noticed meetings with one or more Tow Carriers to address issues arising under this Agreement; and f. Tow Carrier understands and agrees that the Police Department or its designees may conduct annual reviews of Tow Carrier's operations to insure compliance with the regulatory and other requirements of this Agreement. Notwithstanding, the City and Police Department reserve the right to conduct reviews of Tow Carrier's operations at any time when health, safety or welfare concerns require such immediate review. 4. Towing Requirements: a. Rotation System: Agree to a rotation system established by the City; b. Carry a broom,trash can and sand,clean and remove broken glass,spilled oil, or gasoline from the area before departing, unless directed not to do so by police officers and/or designated City employees at the scene; C. Insurance: Each Tow Carrier shall maintain insurance pursuant to the requirements set forth below. The City shall be named as an additional insured on all policies including the workers compensation policies. Tow Carriers shall provide an endorsement to each policy showing the City as an additional insured. The Tow Carrier shall maintain the following minimum levels of insurance from an insurance carrier admitted in California, or admitted in the state in which the Tow Carrier business is located, and is authorized to do business in California: i. Minimum Level of Financial Responsibility(as required by Section 34631.5 of the California Vehicle Code)—Bodily injury and property damage with a combined single limit of not less than $750,000 for Class A tow trucks. These minimum standards are to include non-owned and hired auto coverage. ii. Uninsured Motorist— Legal minimum combined single limit. 4834-4847-6167.1 3 iii. On-Hook Coverage/Cargo insuring the vehicle in tow with limits based on the size of the tow truck; iv. Garage Liability/Garage Keeper's liability — Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than $500,000. Proof of insurance shall be in the form of a certificate of insurance. Policy expiration or cancellation will immediately nullify the Agreement for Tow Services between the Tow Carrier and the City. The Tow Carrier's insurance policy shall provide for not less than 30 days written notice to the City in the event the insurance policy is canceled or is due to expire; d. Every tow truck which responds to calls for service within the City pursuant to this Agreement shall be clearly marked on both sides of the cab with the name and telephone number of the Tow Carrier which operates the truck; and e. The Tow Carrier shall not display any sign or engage in any advertisement indicating an official or unofficial connection with the City or Department of Motor Vehicles. 5. Storage of Vehicles: Pursuant to the requirements hereof, a Tow Carrier shall transport vehicles or to the Tow Carrier's facility for storage and shall meet the following minimum requirements: a. Have a minimum storage space for 200 vehicles with a minimum of twelve inside spaces; outside storage lots must be adequately lighted; b. Provide for secure inside evidence storage and have the ability to provide secure in-door storage for vehicles upon request of the Police Department; C. Have an attendant on call twenty-four(24)hours a day,seven days a week at place of business; d. Have no more than two telephone numbers listed with any City department; e. Store towed vehicles in a safe and protected space where the vehicles and their contents will not be accessible to thieves nor be damaged by activity in the Tow Carrier's establishment or from the elements or by vandals;no vehicles shall be left parked or stored on the public streets at any time; in no event shall the City be liable for any theft, vandalism or damage occurring to any such vehicle or its contents; f. Post a tag on the windshield on all cars ordered impounded by the City; g. Furnish each owner with an itemized billing and collect towing and storage charges on each stored vehicle from the owner; in no event shall the City be liable for any such charge; 4834-4847-6167.1 4 h. Confirm that the CHP Form 180 prepared by PD is accurate after PD inventories the contents.;p-prior to taking possession of any vehicle,and immediately before release, digitally photograph in a manner which shows the date and time on the photograph the inside and outside to document condition of vehicle and its contents and retain such photograph in a secure location for at least one year i. Release no vehicle without first having obtained a release from the City to do so; j. Have adequate equipment to handle calls from the City and storage of motor vehicles; k. The Tow Carrier shall operate from a location within the incorporated boundaries of the City, and all of the facilities necessary to comply with the provisions of this Agreement shall be located within the incorporated boundaries of the City; 1. The Towing Carrier shall be responsible for the security of vehicles and property at the place of storage. At a minimum, a fenced or enclosed area shall be provided. The Towing Carrier is responsible for the reasonable care,custody,and control of any property contained in towed or stored vehicles; M. The Towing Carrier may not remove property from an impounded vehicle. The Towing Carrier shall obtain approval from the City prior to the removal of any property from a stored vehicle and shall provide a receipt,with a copy placed in the stored vehicle.The requirement to obtain approval from the City prior to the removal of property may he excused by the City if it is determined that proper safeguards and procedures are utilized by the Towing Carrier; n. Upon approval from the City, the Towing Carrier shall release personal property from a stored vehicle at the request of the vehicle registered owner or agent; o. There shall be no charge for the release of personal property during normal business hours. Towing Carrier may charge an after- hours release fee for property released after normal business hours, consistent with the after-hours vehicle release provisions; p. Personal property is considered to be items which are not affixed to the vehicle. Personal property from a stored vehicle shall be released upon request of the vehicle registered owner or agent. Responses are mandatory on weekends, holidays, and outside normal business hours, provided the vehicle's current registered owner or owner's authorized agent are available for return of personal property. Payment for an after-hour release of property may be required at the time of the release; q. Cargo shall be released upon demand of the carrier or pursuant to a court Order; r. The primary storage facility shall normally be at the same location as the business address. If not at the same location, there shall be no charge for any additional distance traveled to and from a secondary location.The vehicle and/or personal property shall he released at 48344847-6167.1 5 the primary storage facility or place of business upon request of the registered owner or a person having a legal entitlement to the vehicle and/or property; S. Prior to the utilization of new storage facilities that were not listed on the application for rotation tow listing,the Towing Carrier shall furnish the address and obtain the City's approval; t. Secondary storage facilities shall be located reasonably close to that main business office; U. All storage facilities shall meet all legal requirements for such facility; V. Towing Carrier's place of business shall have a sign that clearly identifies it to the public as a towing service. The sign shall have letters that are clearly visible to the public from the street. The sign shall be visible at night; W. For the purpose of this Agreement for Tow Services,"normal business hours" shall not be less than 8 a.m.to 5 p.m.,Monday through Friday,except for the following recognized holidays:New Year's Day,Martin Luther King Day,Presidents'Day,Memorial Day,Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, day after Thanksgiving Day, and Christmas Day; and X. Business hours shall be posted in plain view to the public.Offices staffed with only one employee may be closed for one hour at lunch. A sign shall be posted with the reason for closure.The sign shall have a phone number where a request will result in an immediate response to release property or vehicles. Response to the office shall be within the time frame required for tow response. 6. Towing Equipment: Tow vehicles shall be rated at a minimum of 14000 GVWR. (Class A) a. Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chasses Gross Vehicle Weight Rating (GVWR) and the classification system used by the American Trucking Association(ATA) and truck manufacturers; b. Towing Limitations: i. The total weight of the truck, including the lifted load, shall fall within the GVWR and not exceed either the Front Axle Weight Ratings (FAWR) or Rear Axle Weight Ratings (RAWR); ii. All tow trucks and car carriers shall be equipped and in compliance with the most recent electronic version of the California Highway Patrol Tow Truck Inspection Guide(CHP 234B); and, iii. The truck must meet all applicable state and/or federal standards; 4834-4847-6167.1 6 C. Identification Labels: Each piece of towing equipment shall have a label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number,model, and rated capacity; d. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can life in a winching mode,when the boom is static at a 30 degree elevation with the load lines vertical and the lifting cables sharing the load equally,measured with a live load(weight or load cell); i. The structural design of the recovery equipment must have a higher load capacity than the performance ratings; ii. Winches shall conform to or exceed the specifications set forth by the Recovery Equipment Rating (SAE) Handbook, SAEJ706; and, iii. All ratings for cable and chain assemblies are for the undamaged assembly condition. All cable and chain assemblies should be the same type, construction,and rating as specified by the original equipment manufacturer (OEM) for the equipment; and e. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. 7. Per Call Rotation System a. The City shall establish a per call rotation system of qualified Towing Carriers who have entered into Agreements with the City for the performance of towing services in response to calls from the City. All departments of the City shall comply with the rotation system. b. Towing Carrier shall comply with and qualify under all the minimum requirements set forth in this Agreement as a condition precedent to being eligible to be placed on the rotation list as follows: i. The City shall maintain a rotation tow list for Class A tow trucks to ensure an equitable distribution of calls. Nothing in this Agreement for Tow Services shall prohibit the City from requesting a specific Towing Carrier when,in the on scene supervisor's opinion, the necessary resources to clear a hazard as expeditiously as possible are not available from the Towing Carrier currently at the top of the rotation tow list. If the City needs a tow vehicle that exceeds that of a Class A tow truck,the City may,in its discretion,contact a Towing Carrier with the size of tow truck needed. In such an instance, the Towing Carrier selected would be the next Towing Carrier on the list which has the qualifications (equipment, skills, timelines, etc.) to provide the required service. After the request,the selected Towing Carrier would then go to the bottom of the rotation tow list. Towing Carriers on the same list that were 48344847-6167.1 7 by-passed would remain in the same order until their selection for a rotation tow for which they are qualified; ii. A call to a Towing Carrier shall constitute one turn on the list and the Towing Carrier shall be moved to the bottom of the list. This includes when the Towing Carrier fails to answer the phone, is unable to respond, is unable to perform the required service, refuses to respond or provide service, or is canceled due excessive response time. If it is determined that the Towing Carrier is not needed and is canceled by the City,up to and including arrival at the scene and standby time which does not result in a tow,there shall be no charges and the Towing Carrier will be placed back at the top of the list; a) If the Towing Carrier is cancelled by the vehicle's registered owner or agent prior to the Towing Carrier taking possession of the vehicle, there shall be no charges for towing. The Towing Carrier shall immediately contact the City and advise them of the cancellation. The Towing Carrier will then be placed back at the top of the list; and, b) If service, other than towing, recovery, and load salvage,has begun and is canceled by the vehicle's registered owner or agent, the Towing Carrier may charge one-half of the regular hourly service charges for the time expended on the call. For purposes of cancellation, service begins when physical work on the vehicle has begun,not the response.No lien shall arise for the service unless the Towing Carrier has presented a written statement to the vehicle's registered owner or agent for the signed authorization of services to be performed. The Towing Carrier shall not attempt to take possession of the vehicle in order to establish a lien for any non- towing services performed, or begun and subsequently canceled, when not entitled to such lien by law; iii. If two or more Towing Carriers are called to the same incident, distribution of the vehicles shall be at the discretion of the on-scene supervisor; iv. The Towing Carrier shall respond to calls 24 hours a day, seven days a week. Between 6:00 a.m. and 6:00 p.m., the response time shall be no more than twenty(20)minutes. Between 6:00 p.m. and 6:00 a.m.the response shall be no more than thirty(30) minutes. The Towing Carrier shall respond with a tow truck of the class required to tow the vehicle specified by the City. The Towing Carrier shall advise City dispatch, at the time of notification,if they are either unable to respond or unable to meet the maximum response time. If,after accepting the call,the Towing Carrier is unable to respond or will be delayed in responding, the Towing Carrier shall immediately notify the appropriate City department. The Towing Carrier shall not assign any calls to other Towing Carriers; 4834-4847-6167.1 8 a) A failure to respond to perform the required towing or service and/or repeated failures to meet the maximum response time requirements shall constitute a failure to comply with the terms and conditions of this Resolution and the Agreement for Tow Services; b) The City may take immediate disciplinary action for any violation of the requirement to respond within the maximum response time; and c) When a Towing Carrier will be temporarily unavailable to provide services due to a pre-planned or scheduled activity, the Towing Carrier shall notify the City at least 24 hours prior to the date that services will be unavailable, noting the times and dates of the unavailability; V. Towing Carriers shall have a minimum of three (3) verifiable years of for hire towing experience,as an owner or principal,prior to the final filing date of an enrollment period in order to qualify for a rotation tow listing; a) Towing Carriers and owners who do not meet the three year verifiable for-hire towing experience may be considered for a position on the City rotation tow list if a full-time manager who possesses the required tow management experience is employed by the Towing Carrier.An owner/Towing Carrier who releases vehicles, completes lien sale paperwork, and other tow business related documents for three years in the Towing Carrier, with the qualified manager, will fulfill the three years for-hire towing experience requirement; vi. To the extent applicable for stored vehicles, Towing Carrier shall give or cause to be given written notice to the registered and legal owners of each vehicle which is towed in conformity with the authorization and requirements of this Agreement concerning the fact of such towing,the place at which such vehicle is stored and the imposition of charges for towing,storage and related services whenever the Towing Carrier knows or is able to ascertain from the registration records in the vehicle or from the registration records of the Department of Motor Vehicles the name and address of the registered and legal owners. The notice shall be given ten (10) days from the date of the towing of the vehicle by the Towing Carrier. SBPD shall be responsible for such notice for impounded vehicles; vii. The Towing Carrier shall post in its office a list of rights of the owner of the vehicle under this Agreement for Tow Services. The rights are set forth on Exhibit E to this Resolution; and 4834-4847-6167.1 9 viii. A stored vehicle shall be released to the registered owner upon presentation of the registration and valid proof of identification (as provided in Vehicle Code Section 22860.3)and payment of all towing and storage charges If the Towing Carrier does not release the vehicle as required by this subsection upon presentation of registration and valid proof of identification and payment of all charges, storage charges shall cease on the date of presentation of the documentation and payment of the accrued charges. 8. Compensation for Tow Services:Tow Carrier shall charge for services on calls by the City in an amount not to exceed ten ($10) above the hourly rate set by the California Highway Patrol. Tow Carrier is responsible for collection of all such fees and charges. a. The rate for towing shall be computed from portal to portal. Time a gxnded shall be charged at a rate not to exceed the hourly rate. Time expended in excess of the minimums shall also be at the hourly rate in no more than one-minute increments. There shall be no additional charges for mileage, labor, etc: i. The Towing Carrier may charge up to a thirty-minute minimum per call for any service or tow which is performed when the vehicle operator or agent is present and the vehicle is not stored at the discretion of an officer; and, ii. The Towing Carrier may charge up to a one-hour minimum per call on responses which result in storage of a vehicle at the direction of an officer; b. Rates for a service call(out of gas,lockouts,tire changes, etc.)shall be from portal to end of service, and may be at the hourly rate with a thirty-minute minimum. Charges in excess of thirty-minutes may be charged in no more than one-minute increments; and, C. Standby time for tow trucks will begin one(1)hour after receipt of calls from the City, and is defined to mean the time consumed after the first hour in necessary preparations in order to tow the disabled vehicle and in cleaning up the immediate surrounding area. 9. Compensation for Storage:Tow Carrier shall charge for services for storage at the storage rate set by the California Highway Patrol for the San Bernardino area. Tow Carrier is responsible for the collection of all such fees and charges. a. Fees for inside storage shall be charged only when inside storage is requested by the City, registered owner, legal owner, insurance company, or when the inside storage can otherwise be justified by the Towing Carrier; b. The Towing Carrier shall display in plain view at all cashiers stations,a sign as described in Section 3070 of the Civil Code. , disclosing storage fees, lien release fees, and charges in force, including the maximum storage rate; 4834-4847-6167.1 10 C. Vehicles stored 24 hours or less shall be charged no more than one day storage; and, d. Storage of vehicles in combination may be charged a per vehicle rate except for dollies and con-gear. Dollies and con-gear may be charged a storage rate not to exceed Class A storage fees; e. The charge for after-hours release shall be no more than one-half the hourly rate, and shall only be allowed on weekends,holidays, and outside normal business hours; f. The approved schedule of rates charged by the Towing Carrier shall be available in the tow truck, and shall be presented upon demand to the persons for whom the Tow Services were provided, their agent, or any officer at the scene; g. Rate requirements represent the maximum a Towing Carrier may charge on a City call. A Towing Carrier is not precluded from charging less when deemed appropriate by the Towing Carrier. These requirements shall not be construed as requiring a charge if a Towing Carrier would not normally charge for such service; h. Towing Carrier or employee shall not refer to any rate as required or set by the City; i. In the event that a towed vehicle is forfeited by the owner in accordance with Section 14607.6 of the California Vehicle Code, the proceeds of the sale of the vehicle shall be distributed pursuant to said section of said Code; and j. The Towing Carrier shall accept all guaranteed forms of payment including, without limitation,money orders, certified checks,debit cards and all widely accepted credit cards. There shall be no surcharge for the use of a credit card. If the form of payment cannot be accepted by the Towing Carrier due to any failure by the Towing Carrier or Towing Carrier's payment processing equipment, Towing Carrier shall not charge storage fees beyond date of such failure. 10. City Fees and Franchise Fees. In addition to the amounts charged vehicle owners, Tow Carrier shall pay the following fees to the City in the manner set out here. a. Impounded Vehicles:Registered Owner shall pay to the City an administrative release fee of$349 per vehicle towed, impounded and thereafter stored; b. Stored vehicles: There shall not be a fee charged for stored vehicles based upon the City's determination that such fees most often would be charged to the victims of crimes(auto theft) or accidents; c. Franchise Fee: Tow Carrier shall pay the following franchise fees per vehicle towed under this Agreement(collectively"vehicle) during the initial term of this Agreement and shall not be passed through to vehicle owners in any manner: 48344847-6167.1 11 Year 1 (effective date of Agreement, 2011,through June 30, 2012) - $70.00/vehicle Year 2 (July 1, 2012 through June 30, 2013) -$72.10/vehicle Year 3 (July 1, 2013 through June 30, 2014) - $74.25/vehicle Year 4 (July 1,2014 through June 30, 2015) - $75.50/vehicle Year 5 (July 1, 2015 through June 30, 2016) - $79.00/vehicle Such franchise fees may be adjusted by the City after the initial 5-year term hereof; d. Verification of Tows and Payment of Franchise Fees: By the 15th of each month, Tow Carrier shall submit to the Police Department a list of all vehicles towed under this Agreement during the previous calendar month, including but not limited to owner's request tows. The list shall be in a format acceptable to the Police Department and shall include the case number, vehicle license plate number and vehicle identification number. At the same time as the list is provided, Tow Carriers will remit franchise fee payment to City for the vehicles towed during the previous calendar month. Any amounts not paid by the 15th of the following month shall bear interest at the rate of 10%per annum, simple interest, compounded daily until paid; and e. City fees (including but not limited to the list prepared) are subject to audit and verification as set out herein whether as part of an annual review or otherwise. 11. Employees: a. The Towing Carrier shall insure that tow truck drivers responding to calls initiated by the City are qualified and competent employees of the Towing Carrier's company. The Towing Carrier shall ensure that the tow truck drivers are trained and proficient in the use of the tow truck and related equipment, including, but not limited to, the procedures necessary for the safe towing and/or recovery of the various types of vehicles serviced through City rotation. Tow drivers shall perform all towing and recovery operations in the safest and most expedient manner possible. Tow truck drivers shall be at least 18 years of age and shall possess the proper class license and endorsements for the towed and towing vehicle; b. The Towing Carrier shall maintain a current list of drivers; C. All tow truck drivers and owner/Towing Carriers shall be enrolled in the Pull Notice Program; i. Upon the addition of new drivers, a Towing Carrier will be granted a maximum of 30 days to enroll drivers in the Pull Notice Program; ii. Pull Notices shall be kept on file, signed, and dated by the Towing Carrier; and, iii. The City may require a Towing Carrier to provide copies of Pull Notice Reports to the City; 4834-4847-6167.1 12 d. The Towing Carrier,or Towing Carrier's employees responding to a call,shall perform the towing or service required for which they were called unless the requested equipment is inadequate for the service to be performed; and, e. Only the tow truck personnel and equipment requested shall respond to the City call. A Towing Carrier shall not respond to a City call assigned to another Towing Carrier unless requested to do so by the City; i. This shall not preclude the Towing Carrier from responding to an incident to ascertain if additional assistance or equipment is required.There shall be no additional charge for any personnel or equipment that is not necessary to perform the required service; ii. There may be times when the Towing Carrier assigned the initial call may require the assistance of an additional Towing Carrier at the scene. The Towing Carrier assigned the initial call may,subject to prior Agreement with the City and with the concurrence of the on scene supervisor, request a specific Towing Carrier for assistance. The request shall be routed to the additional Towing Carrier through the City; and, iii. There may be times when a Towing Carrier,who was not called to a scene, comes upon a collision scene where a vehicle or vehicle are blocking a roadway and an officer requests assistance in clearing the roadway.In such a case, the Towing Carrier may be requested to move the vehicle to a safe location,as directed by the officer, and leave it.There shall be no charge for this assistance and the assistance provided shall not change the Towing Carrier's place in the rotation. f. Employees shall he properly trained to conduct business transactions related to towing, storage, and release of vehicles/property; g. Uniforms: While engaged in tow operations hereunder, City rotation tow drivers shall wear an identifiable uniform shirt displaying the Tow Carrier's and driver's names;and h. Safety Vests: City rotation tow drivers shall wear a safety vest and/or reflectorizing clothing,as well as any other safety clothing required by and meeting CalOSHA and Occupational Safety and Health Administration (OSHA) requirements. 12. Complaint Procedure: All City related tow service complaints from the public received by the City against a Towing Carrier or Towing Carrier employees will be accepted and investigated in a fair and impartial manner pursuant to procedures utilized by the Police Department or as set out herein. The Towing Carrier will be notified of the results of any investigation. 13. Records: Each month, Towing Carrier shall submit a list of all vehicles towed the previous month, including license plate numbers and vehicle identification numbers, and shall identify clearly all impounded vehicles towed to its storage facility. 4834-4847-6167.1 13 a. The Towing Carrier shall maintain records of all Tow Services furnished. The records will be maintained at the Towing Carrier's place of business. Invoices shall at a minimum include a description of each vehicle,nature of service,start time,end time,location of call,itemized costs of towing and storage, the tow truck driver's name, and truck used; b. At the Towing Carrier's primary office,the Towing Carrier shall also maintain business records relating to personnel, insurance, personnel taxes, payroll, applicable operating authorities, local operating authorities, lien sale actions, Federal Communication Commission licensing, and non-City I tows; C. The City may inspect all Towing Carrier records without notice at any time during normal business hours and during the annual reviews; d. Towing Carrier shall permit the City to make copies of business records at its place of business, or to remove business records for the purpose of reproduction. The City shall provide a receipt for any(original)records removed from the place of business; e. Records shall be maintained and available for inspection for a period of four (4) years after the termination of this Agreement for Tow Services; and, f. Failure of the Towing Carrier to comply with the inspection requirements shall be cause for suspension and/or termination of this agreement. 14. Audit: a. Upon reasonable advance written notice, City or its designee shall have the right to review and audit the books of Towing Carrier's place of business and during business hours. In the event that such audit shows a 5% or greater variance in revenues owing to the City by Tow Carrier,the following amounts shall be owing by Tow Carrier to City: 1)the amount determined to be owing as a result of the audit; 2) simple interest at the rate of 10% on the amounts owing, compounded daily from the due date; 3) both 1) and 2) shall be paid within 10 calendar days of notification of the deficiencies;and 4)Tow Carrier shall pay the reasonable costs of the audit based upon invoices provided by City; and b. In the event that an audit shows an 10% or greater variance in revenues owing to the City,the following amounts shall be paid to the City by that Tow Carrier: 1. the amount owed as a result of the audit; 2. simple interest at the rate of 10%on the amount owed,compounded daily from the due date; 3. the amount owed including interest shall be paid within 10 calendar days of notification of deficiencies; and 4. pay the reasonable costs of the audit; 4834-4847-6167.1 14 c. In the event the audit determines a 15%variance in revenues owing to the City, such result may be ground for action under Section 17 herein. 15. Assignment: Any assignment of this agreement due to change in ownership requires the approval of the City Council to continue on the tow rotation.Any change of ownership must be reported to the Police Department in writing within seven(7) days of such change. Thereafter, Police Department will review the proposed new owner(s) under the standards set out in this Agreement and procedures the Police Department adopts therefor. Within 30 days ofthe date of notification of the change of ownership, the Police Department shall report the results of its review to the City Council,which shall approve or deny the assignment of this Agreement to the new owner. In the event the City Council denies the assignment,the Agreement shall terminate as of the date of such denial and the Police Department shall initiate procedures to replace the Tow Carrier in the towing rotation. Such termination is not subject to the appeal provisions hereof or of Resolution No. 2005-286. 16. Standards for Performance:While involved in City rotation tow operations or related business, the Tow Carrier and/or employees shall refrain from any acts of misconduct including, but not limited to, any of the following: a. Rude or discourteous behavior; b. Lack of service, selective service, or refusal to provide service which the Towing Carrier should be capable of performing; C. Any act of sexual harassment or sexual impropriety; d. Unsafe driving practices; e. Exhibiting any objective symptoms of alcohol and/or drug use; f. Appearing at the scene of a City rotation tow call with the odor of an alcoholic beverage emitting from the Tow Carrier's employee's breath. The Towing Carrier employee shall submit to a preliminary alcohol screening test upon demand of the City; g. Should the filing of criminal charges be a possibility,the City will conduct the investigation to conclusion or assist the lead investigation agency and, if warranted, request prosecution; h. Traffic Violations; i. In the event of a minor traffic violation by a tow truck driver which is known by the City,the Towing Carrier shall be advised of the violation by the City. The Towing Carrier will be granted the opportunity to take necessary steps to ensure that the driver complies with the law. Any subsequent traffic 4834-4847-6167.1 15 violations may be cause for disciplinary action against the Towing Carrier and/or the involved employee(s); ii. Any flagrant traffic violation maybe cause for immediate disciplinary action against the Towing Carrier and/or the involved employee(s); and, iii. The provisions contained in any compliance with law provisions in this Agreement do not preclude the City from taking appropriate enforcement or administrative action for any violations of law. Complaints for violations of the law not normally investigated by City will be referred to the agency with investigation jurisdiction; i. Any conviction of the Towing Carrier or employee involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of violence,a drug-related offense, felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug, or moral turpitude while involved in a City rotation tow call shall be cause for removal of the Tow Carrier from the list of current City rotation, denial of Towing Carrier application, or termination of this Agreement; j. A Tow Carrier or employee arrested/charged for a violation involving any of the above crimes may be suspended until the case is fully adjudicated.Records of violations shall be retained by the City for at least 36 months; k. A violation of the equipment requirements related to safety shall be cause for immediate suspension of the Tow Carrier from the tow rotation.The suspension will remain in effect until the period of suspension is completed and the City has conducted an inspection and concluded the Tow Carrier is in compliance; 1. A violation of the GVWR and safe loading requirements of a tow truck may be cause for immediate suspension of the Tow Carrier. This includes exceeding the tow truck's GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck's unladen front axle weight on the front axle when in tow; M. A violation of intentionally overcharging or a pattern of overcharging or of non-payment of City fees shall be cause for suspension of the Tow Carrier. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has presented proof to the City that reimbursement has been made to the aggrieved customer; n. City personnel shall not be offered gratuities,and requests for gratuities shall not be honored by Tow Carriers, employees, or associates of the Tow Carrier. A violation of this section shall be cause for suspension or termination; o. Failure of the Tow Carrier to satisfy a court order mandating reimbursement to the vehicle owner or property owner for the damage or loss which occurred while the vehicle was in the Towing Carrier's custody will result in a suspension.The suspension will remain in effect until the period of suspension is completed and the Towing Carrier has presented proof of the reimbursement; 4834-4847-6167.1 16 P. Failure of the Tow Carrier to comply with the inspection requirements of this Agreement for Tow Services shall result in a suspension.The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has complied with the inspection requirement; q. Failure of the Tow Carrier to send tow truck drivers who are qualified and competent employees on City calls shall be cause for suspension. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has presented proof to the City that the driver is qualified and competent; and, r. Failure of the Tow Carrier to maintain the minimum insurance requirements set forth in the Agreement for Tow Services will immediately nullify the Agreement for Tow Services. The Tow Carrier will be subject to an additional suspension for failure to notify the City in advance of the insurance policy expiration or cancellation. 17. Suspension and Termination for Cause: The City shall take disciplinary action against Tow Carriers for violations investigated and confirmed or sustained.Unless otherwise noted,the City shall determine the period of suspension.The City shall retain discretion regarding the length of any suspension imposed pursuant to the tenns and conditions of this Agreement for Tow Services. a. Violations of the terns and conditions of this Agreement maybe cause for disciplinary action against the Tow Carver as follows; in lieu of termination,the City may impose additional suspension for longer periods, if deemed appropriate; i. First violation within a 12 month period -letter of written reprimand; No changes to these per PD; ii. Second violation within a 12 month period - 1 to 30 day suspension; iii. Third violation within a 12 month period- 60 to 90-day suspension; and, iv. Fourth violation within a 12 month period-termination of the Agreement for Tow Services. b. Violations of the tenns and conditions of this Agreement that are subject to suspension for the first violation are categorized as major violations.Any subsequent or continuing major violation may be cause for termination; i. When considering punitive action for a major violation of the Agreement,the City may take into consideration all major and minor violations that occurred within 36 months prior to the date of the current violations; and, ii. Tennination shall be invoked if, in the City's sole judgment, continued participation in the Rotation Tow Program by the affected Towing Carrier 4834-4847-6167.1 17 may result in a hazard to public safety and/or welfare, or any conviction of the Towing Carrier or employee involving a stolen or embezzled vehicle, fraud related to the towing business,stolen or embezzled property,a crime of violence,a drug-related offense,felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug, or moral turpitude while involved in a City rotation tow call; C. Nothing herein shall be deemed to prohibit the City from immediately suspending any Towing Carrier or employee whose conduct,in the opinion of the City,is deemed to be a danger to the motoring public or who has engaged in conduct constituting a flagrant violation of the Agreement for Tow Services; d. Administrative Hearing: In the event the City serves the Towing Carrier with Disciplinary action, the Towing Carrier may request a hearing within seven calendar days by submitting a request in writing to the Traffic Sergeant at the Police Department. If a hearing is requested, it shall be held as soon as practical. The hearing shall be conducted by the Traffic Sergeant or designee, and the Tow Carrier shall be entitled to present all relevant facts and circumstances in support of the Tow Carrier's position. The Tow Carrier shall be further entitled to present testimony of at least one qualified person.The Tow Carrier shall be notified in writing of the Traffic Sergeant's decision(s) within ten business days of the date of completion of the hearing; e. Appeal from Administrative Hearing:Following a hearing,if the Tow Carrier is dissatisfied with the Traffic Sergeant's decision(s),the Tow Carrier may appeal by submitting a request in writing to the City Clerk, pursuant to Municipal Code Chapter 2.64, and paying any applicable fees; f. A suspension shall not take effect until the hearing and appeal process has been exhausted, with the exception of Tow Carriers whose conduct deemed to be a danger to the motoring public or who continue to violate the terms and conditions of this Agreement for Tow Services. If a Tow Carrier fails to request a hearing or appeal,the action taken by the,City shall be final, and the suspension shall take effect upon written notification to the Tow Carrier by the City; and g. A terminated or suspended Tow Carrier, and/or the Tow Carrier Business owner at the time of the suspension or termination shall not be eligible for a rotation listing for the duration of the suspension or termination.This provision applies to the Tow Carrier working in any capacity within any tow business or operating any tow business,and to the tow business,even if operated under new ownership.This provision does not apply to Section 16 regarding termination due to a change in ownership. 18. Notice: Any notice to be given pursuant to this Agreement by either party to The other shall be given by personal service or shall be deemed given when deposited with the United States Postal Service, first class,postage prepaid, and addressed as follows: 4834-4847-6167.1 18 To the City: City Manager 300 North"D" Street San Bernardino, CA 92418 To Towing Carrier: Danny's Towing 2305 W. Highland Avenue San Bernardino, CA 92407-6405 19. Miscellaneous: This Agreement represents the entire Agreement between the City and the Tow Carrier and fully supersedes any and all previous Agreements enter into by and between the City and Tow Carrier. This Agreement may be amended only in writing agreed upon by all affected Tow Carriers.No waiver of any term or condition of this Agreement shall be a continuing waiver thereof. 20. Attorneys' Fees: In the event of litigation to enforce this Agreement, the prevailing party in such litigation shall be entitled to reasonable costs and attorneys' fees, as determined by the Court. As used here, "attorneys' fees" includes the costs, salary and expenses of the City Attorney and members of his office. IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the day and date first above shown. CITY OF SAN BERNARDINO By: City of San Bernardino Attest: By: TOW CARRIER: DANNY'S TOWING By: Print Name: Approved as to Form: JAMES F. PENMAN City Attorney By: 4834-4847-6167.1 19 ► EXHIBIT"A" EXHIBIT A TOW CARRIERS MINIMUM REQUIREMENTS (EFFECTIVE FOR TOW CARRIERS ENTERING THE CTY'S TOW ROTATION AFTER THE EFFECTIVE DATE OF THIS RESOLUTION) A. Have a minimum outside storage space of 65,000 square feet capable of storing at least 200 vehicles. B. Minimum inside storage space of 2000 square feet capable of storing at least five (5) automobiles. C. Security fencing around the entire outside storage space. D. Monitored alarm system-If the outside storage space is not alarmed,the inside storage must be. E. Minimum of three Class A tow trucks. F. Current City Business License. G. Certificate of Occupancy. H. Hazardous Material Handler's Permit. I. Have either an inside or outside customer waiting area for at least five customers of 100 square feet. The outside waiting area shall exclude parking and landscape areas. J. Have a minimum of three years of for-hire towing experience as an owner/principal or have i a qualified manager with the experience. K. Have an attendant on call twenty-four (24) hours a day, seven days a week at place of business. L. Have no more than two telephone numbers listed with any City department. M. Store towed vehicles in a safe, lighted and protected space where the vehicles and their contents will not be accessible to thieves nor be damaged by activity in the carrier establishment or from the elements or by vandals;no vehicles shall be left parked or stored on the public streets at anytime; in no event shall the city be liable for any theft,vandalism or damage occurring to any such vehicle or its contents. N. Post a tag on the windshield of all cars ordered impounded by the City. 0. Collect all towing or hauling and storage charges on each vehicle from the owner; in no event shall the city be liable for any such charge. P. Whenever a vehicle has been involved in an accident or a traffic violation, and the owner or someone delegated by him is present and is capable of removing the vehicle from the street with reasonable dispatch, and the vehicle is not needed for criminal evidence, City and/or towing carrier shall permit the owner or his delegate to remove the vehicle or call a towing company of his or her own choice to remove the same;provided, however, that if the street cannot be cleared for safe public use with reasonable dispatch by the above method, and in all situations other than above set forth, a towing carrier from the top of the rotation list will be called by the City. Q. Furnish each owner with a fully itemized billing. R. Immediately after each towing operation, make a towing slip with the contents of each vehicle placed in his or her care itemized thereon as verified by the officer ordering the same and make the slip available to the City on request. S. Release no impounded vehicle without fast having obtained a release from the City to do SO. T. Agree to a rotation system established by the City. U. Comply with all rules, regulations and laws of the State of California, County of San Bernardino and City of San Bernardino. V. Have adequate equipment to handle calls from the city, impounds, and storage of motor vehicles. W. The carrier shall operate from a location within the City of San Bernardino, and all of the facilities necessary to comply with the provisions of this resolution shall be located within the City of San Bernardino. X. Carry a broom,trash can and sand,clean and remove broken glass,spilled oil, or gasoline from the area before departing, unless directed to not do so by police officers and/or designated City employees at the scene. Y. Each tow carrier shall maintain insurance pursuant to the requirements set forth below. The City of San Bernardino shall be named as an additional insured on all policies including the workers compensation policies. Tow carriers shall provide an endorsement to each policy showing the City as an additional insured. 1. The operator shall maintain the following minimum levels of insurance from an insurance carrier admitted in California, or admitted in the state in which the operator's business is located, and is authorized to do business in California: a) Minimum Level of Financial Responsibility(as required by Section 34631.5 of the California Vehicle Code) -Bodily injury and property damage with a combined single limit of not less than$750,000 for Class A tow trucks. These minimum standards are to include non-owned and hired auto coverage. b) Uninsured Motorist- Legal minimum, combined single limit. c) On-Hook Coverage/Cargo-Insuring the vehicle in tow with limits based on the size of the tow truck. d) Garage Liability/Garage Keeper's liability - Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than$500,000. 2. Proof of insurance shall be in the form of a certificate of insurance. Policy expiration or cancellation will immediately nullify the Agreement for Tow Services between the carrier and the City. The operator's insurance policy shall provide for not less than 30 days written notice to the City in the event the insurance policy is canceled or is due to expire. Z. Tow vehicles shall be rated at a minimum of 14000 GVWR.(Class A) 1. Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chassis Gross Vehicle Weight Rating(GVWR) and the classification system used by the American Trucking Association(ATA) and truck manufacturers. 2. Towing Limitations: a) The total weight of the truck, including the lifted load, shall fall within the GVWR and not exceed either the Front Axle Weight Ratings (FAWR) or Rear Axle Weight Ratings(RAWR). b) All tow trucks and car carriers shall be equipped and in compliance with the most recent electronic version of the California Highway Patrol Tow Truck Inspection Guide(CHP 234B). C) The truck must meet all applicable state and/or federal standards. 3. Identification Labels: Each piece of towing equipment shall have a label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number, model, and rated capacity. 4. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can lift in a winching mode,when the boom is static at a 30 degree elevation with the load lines vertical and the lifting cables sharing the load equally, measured with a live load (weight or load cell). a) The structural design of the recovery equipment must have a higher load capacity than the performance ratings. b) Winches shall conform to or exceed the specifications set forth by the Recovery Equipment Rating(SAE) Handbook, SAE J706. c) All ratings for cable and chain assemblies are for the undamaged assembly condition. All cable and chain assemblies should be the same type, construction,and rating as specified by the original equipment manufacturer (OEM) for the equipment. 5. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. 6. Uniforms: City rotation tow drivers shall wear an identifiable uniform shirt displaying the company and driver's names while engaged in City rotation tow operations. Or 7. Safety Vests: City rotation tow drivers shall wear a safety vest or reflector'zing clothing, meeting Occupational Safety and Health Administration (OSHA) requirements. AA. The City may grant additional points or deduct points as set forth in Exhibit B to Resolution No. BB. No tow carrier is exempt from meeting legal requirements imposed by any city,county,State or Federal laws or regulations. An example of this is the Clean Water Act. 4 I I I EXHIBIT"B" i IMIBIT "B" . i Prel mina Application .Review Preliminary pp Applications that do no_t currently meet all of the following minimum qualifications will be rejected and returned to the tow carrier with a cover letter stating the reasons for rejection. Tow Carrier Name Date Internal Use Only Qualification Yes No T Meets all standards of the most current city resolution establishing standard criteria for tow com anies. 2. Tow business office and storage facility located within San Bernardino City limits. 3. Minimum Outside Storage of 200 vehicles,65,000 sq. ft. 4. Minimum Inside Storage of 2,000 sq. ft. 5. Secure,lighted storage facility 6. . Attendant on-duty 24 hours 7. 24 hour service including weekends and holidays 8. Minimum of three certified Class A tow trucks 9. Current City Business license 10. Certificate of Occupancy [ ] Permanent [ ] Temporary 11. Hazardous Material Handlers Permit Current 12. Monitored Alarm System: If outside perimeter is not alarmed then inside storage must be. 13. Minimum inside waiting area of 100 sq. ft. 14. Minimum outside waiting area, excluding parking space and landscaping, of 100 . ft. 15. Operator has three years of verifiable towing experience as an owner or principle, or has a full time manager who possesses the reauired experience. 16. Financial Interest in another tow company providing services to the City 17. Prior conviction(s),guilty plea, or nolo contendere plea that excludes tow carrier Comments U:\Tow stuffiApplication Preliminary Review Check List 2-1-011.doc i i EXHIBIT"C" EXHIBIT "C" SELECTION PROCESS ATTACHMENT Tow Carrier: Date: Contact Information Agency Name Contact Person Title Telephone# . Date of Contact I i Governmental Agency Tow Service History Agency Number of Negative Complaint History Acti(wr #Sustained #Unfounded Revised 7/19/2005 IMUIT "C" SELECTION PROCESS ATTACHMENT Each tow carrier shall be awarded a point value for each of the in-depth investigation categories- The points may range from negative values(deductions)to positive values(additions). Meeting the minimum qualifications in a specific category will have a point value of zero- Tow Service History Points Lost Negative Actions are defined as any notice of Total Points Lost disciplinary action by a governmental agency or issuance of a citation that results in sanctions or conviction. 1 - 4=- 5 16-20=-30 5- 10=-10 21 -25=-40 11-15—-20 25+ =-50 Government Agency Name Date of Action Summary of Action Business Expiration Date: License Number: Sub-Total Tow Service History Facility Inspection Minimum Outside Additional Outside Space Minimum Inside Additional Inside Space Total. Storage Space 10,000-20,000 sq.ft.=+5 Storage Space 1,000-1,500 sq.ft.=+5 Points Required 65,000 sq.& 20,001+sq.&_+10 Required 2,000 sq.ft. 1,501 +sq.& =+10 Office Area Front of Business Rear of Business=-2 Unimproved Walkway for customer Location/Access No Obstructions access=-2 0 Staffing/Organization 1 person to 2-4 able to conduct routine business=+2 ' b e- uda do conduct routine 5+able to conduct routine business=+5 rdew and We of vehicles* business 0 ( ><nside 100 sq.&minimum=0 Seating for Public access to customer files Wai Ariea 100 additional sq.ft=+2 Customers=+2 =-10 Rovised 7/19/2005 EXHIBIT "Cn SELECTION PROCESS ATTACHMENT Customer Outside 100 sq.ft of outside Entire Area Covered=+2 Waiting Area waiting area=+2 Some Area Covered=+1 (excluding parking Seating for Customers=+2 'ace and Isnd Security l Fencing No Damaged Areas=0 Yard Motion Beams=+2 +Dances is am "that allow Damaged Areas=-5 Recorded Video Camera Unintended access to =+5 vehicka Hazardous Material Proper Storage& Improper Storage/Item Handler Permits Solid=-2;Liquid=-5 0 To*- Minimum of 3 Certified Additional Certified Class A Class A Trucks Trucks 1-3=+2;4+=+5 Tow Truck Broken or Damaged Equipment=-1 per item Missing or Non-Useable Equipment Equipment -5 per item equired Equipment *Specified as Tow Truck an Guide' Pull Notices On File=0 Missing=-5 per driver, Business Records On Site=0 Readily Accessible=+2 Not readily accessible= Immedlate Retrieval of Records -5 Comments: Subtotal of Tow Service History Points Subtotal of Facility Inspection Points Total Points In Depth Investigation Conducted By Print Name and Rank Reviewed/Approved By: Print Name and Rank Revised 7/19/2005 EXHIBIT"E" RIGHTS OF PERSONS WHOSE VEHICLES ARE TOWED AT THE REQUEST OF THE CITY OF SAN BERNARDINO (TO BE POSTED IN VISIBLE LOCATION IN TOWING CARRIER'S OFFICE) Tow operators who tow vehicles at the request of the City of San Bernardino operate under an.Agreement for Tow Services with the City. The agreements require the tow operators to comply with certain rules and provides the following rights to the owner of a towed vehicle. The owners'rights are summarized as follows: 1. Notice to the registered and legal owners of the vehicle within 10 days of being towed of location of vehicles and charges. 2. Normal business hours are 8:00 a.m. to 5:00 p.m. Monday through Friday except recognized holidays of New Year's Day,Martin Luther King Day,Presidents'Day,Memorial Day, Independence Day,Labor Day,Veteran's Day,Thanksgiving Day and Christmas Day. 3. Business hours to be posted for viewing by the public. 4. Tow operators shall respond to after hours release within thirty minutes. 5. Tow operators shall accept all guaranteed forms of payment and widely accepted credit cards without a surcharge. 6. If a stored or impounded vehicle is not released once proper documentation and identification are provided and all charges paid,further storage charges shall cease as of the date of presentation and payment. 7. Itemized invoices shall be provided. 8. Right to file a complaint with the City of San Bernardino. AGREEMENT FOR TOW SERVICES (EXISTING TOW CARRIERS) THIS AGREEMENT FOR TOW SERVICES(this"Agreement")is entered into this fourth day of April, 2011, by and between the CITY OF SAN BERNARDINO ("City") and Tri-City Towing(Tow Carrier"or"Towing Carrier") effective April 4, 2011 (the"Effective Date"). RECITALS A. The Vehicle Code authorizes City regulation of involuntary towing and storage with appropriate compensation therefore, which compensation covers the reasonable cost (including direct and indirect overhead) as well as franchise fees; and B. City has adopted Resolution No.2005-286,as amended by Resolution No.2008-347, "Establishing Standard Criteria for Companies to Provide Tow Services"and the Exhibits attached thereto; C. The Resolutions cited above presently provide for a towing rotation franchise within the City for the more efficient regulation and operation of tow companies with the ratio of one tow company chosen for the rotation for each 35,000 people within the City; D. The City and the six (6) Tow Carriers currently on the rotation have agreed that it promotes ease of operation to restate such existing requirements in one Agreement which reorganizes the proposed model contracts for existing and new Tow Carriers as those proposed contracts were set out in Resolution 2005-286 and that this Agreement contains the same provisions regarding operation of the tow rotation and requirements for Tow Carriers; E. City shall not pursue the establishment of an impound yard. F. In consideration Tow Carriers have agreed to the revised or additional provisions including but not limited to those regarding franchise payments and audits; G. This revised and updated Agreement,upon execution by each of the six(6)existing Tow Carriers, shall supersede in their entirety any and all prior agreements between the City and each Tow Carrier; and H. City finds and Tow Carriers agree that the compensation and other provisions of this Agreement meet the requirements of all applicable laws. NOW, THEREFORE, the parties hereto agree as follows: I. Recitals. The Recitals set out above are true and correct. 2. Provision of Tow Services by Tow Carrier 4834-4847-6167.1 1 a. Term; Extension at City's Option: This Agreement shall commence on the Effective Date for a term of five years unless sooner terminated hereunder. This Agreement maybe extended as to the Tow Carrier upon the City's sole determination that Tow Carrier is in compliance with all terms and conditions hereof. Such an extension shall be for an additional 5years. There is no promise and should be no expectation of such extension. Failure to grant such extension shall result in termination of this Agreement, which termination is not subject to the appeal provisions hereof or of Resolution No. 2005-286. At the end of the term of the Agreement, whether or not extended,there shall be no more extensions of this Agreement and Tow Carrier understands it is not entitled to any such additional extension, nor may the City grant such additional extension. This Agreement confers a privilege and not a right; b. Tow Carrier hereby agrees to provide Tow Services to the City pursuant to terms and conditions contained in this Agreement. "Tow Services"means the following types of nonconsensual towing initiated by the City,including but not limited to code enforcement tows: (i) towing of involuntarily impounded vehicles (where such impound is authorized under the Vehicle Code) to the Tow Carver's storage yard and storage there; and (ii) towing and storage of non- impounded vehicles when directed to do so by City personnel or by the owner (owner's request tows); C. Whenever a vehicle has been involved in an accident or a traffic violation,and the owner or someone delegated by the owner is present and is capable of removing the vehicle from the street with reasonable dispatch,and the vehicle is not needed for criminal evidence,City and/or Tow Carrier shall permit the owner or his delegate to remove the vehicle or call a tow carrier of his or her own choice to remove the same; provided, however, that if the street cannot be cleared for safe public use with reasonable dispatch by the above method,and in all situations other than above set forth, a Tow Carrier from the top of the rotation list will be called by the City; and d. This Agreement supersedes any and all prior agreements between the parties as to the subject matter hereof. 3. General Requirements of Tow Carriers: a. Tow Carrier shall comply with all rules,regulations and laws of the State of California,the County of San Bernardino and the City of San Bernardino,including but not limited to those applicable to storage facilities. Tow Carrier shall also comply with all provisions of the Resolution of the Mayor and Common Council of the City of San Bernardino Establishing Standard Criteria for Companies to Provide Tow Services for the City of San Bernardino as said Resolution exists and/or as said Resolution may be amended from time to time; b. Tow Carrier shall specifically comply with Exhibits A through E of Resolution No. 2005-286 attached thereto and set out as follows: Exhibit A—Minimum Tow Service Requirements Exhibit B - Preliminary Application Review Exhibit C- Towing Carrier Selection Process 4834-4847-6167.1 2 Exhibit D - Selection Process Exhibit E - Rights of Persons Whose Vehicles are Towed at the Request of City C. No Towing Carrier or applicant shall be directly involved in the towing related business of any other Towing Carrier or applicant on the City's tow rotation; d. Storage facilities owned by a Towing Carrier,and shared with another Towing Carrier,shall be approved only if the owner-Tow Carrier charges for the space exclusively on a flat monthly rate rather than a vehicle-by-vehicle basis, or combination thereof. Facilities shared by Towing Carriers shall be physically separated and secured from each other; e. The City shall conduct, at a minimum, one annual meeting with all Tow Carriers to discuss issues concerning the tow rotation. All meetings shall be mandatory for the Towing Carrier or Towing Carrier's designee wishing to remain on rotation. The City shall give the Towing Carrier 30 day's prior written notice of these meetings. The City may call additional required and noticed meetings with one or more Tow Carriers to address issues arising under this Agreement; and f. Tow Carrier understands and agrees that the Police Department or its designees may conduct annual reviews of Tow Carrier's operations to insure compliance with the regulatory and other requirements of this Agreement. Notwithstanding, the City and Police Department reserve the right to conduct reviews of Tow Carrier's operations at any time when health, safety or welfare concerns require such immediate review. 4. Towing Requirements: a. Rotation System: Agree to a rotation system established by the City; b. Carry a broom,trash can and sand,clean and remove broken glass,spilled oil, or gasoline from the area before departing, unless directed not to do so by police officers and/or designated City employees at the scene; C. Insurance: Each Tow Carrier shall maintain insurance pursuant to the requirements set forth below. The City shall be named as an additional insured on all policies including the workers compensation policies. Tow Carriers shall provide an endorsement to each policy showing the City as an additional insured. The Tow Carrier shall maintain the following minimum levels of insurance from an insurance carrier admitted in California, or admitted in the state in which the Tow Carrier business is located, and is authorized to do business in California: i. Minimum Level of Financial Responsibility(as required by Section 34631.5 of the California Vehicle Code)—Bodily injury and property damage with a combined single limit of not less than $750,000 for Class A tow trucks. These minimum standards are to include non-owned and hired auto coverage. ii. Uninsured Motorist—Legal minimum combined single limit. 4834-4847-6167.1 3 On-Hook Coverage/Cargo insuring the vehicle in tow with limits based on the size of the tow truck; iv. Garage Liability/Garage Keeper's liability — Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than $500,000. Proof of insurance shall be in the form of a certificate of insurance. Policy expiration or cancellation will immediately nullify the Agreement for Tow Services between the Tow Carrier and the City. The Tow Carrier's insurance policy shall provide for not less than 30 days written notice to the City in the event the insurance policy is canceled or is due to expire; d. Every tow truck which responds to calls for service within the City pursuant to this Agreement shall be clearly marked on both sides of the cab with the name and telephone number of the Tow Carrier which operates the truck; and e. The Tow Carrier shall not display any sign or engage in any advertisement indicating an official or unofficial connection with the City or Department of Motor Vehicles. 5. Storage of Vehicles: Pursuant to the requirements hereof, a Tow Carrier shall transport vehicles or to the Tow Carrier's facility for storage and shall meet the following minimum requirements: a. Have a minimum storage space for 200 vehicles with a minimum of twelve inside spaces; outside storage lots must be adequately lighted; b. Provide for secure inside evidence storage and have the ability to provide secure in-door storage for vehicles upon request of the Police Department; C. Have an attendant on call twenty-four(24)hours a day,seven days a week at place of business; d. Have no more than two telephone numbers listed with any City department; e. Store towed vehicles in a safe and protected space where the vehicles and their contents will not be accessible to thieves nor be damaged by activity in the Tow Carrier's establishment or from the elements or by vandals; no vehicles shall be left parked or stored on the public streets at any time; in no event shall the City be liable for any theft, vandalism or damage occurring to any such vehicle or its contents; f. Post a tag on the windshield on all cars ordered impounded by the City; g. Furnish each owner with an itemized billing and collect towing and storage charges on each stored vehicle from the owner; in no event shall the City be liable for any such charge; 4834-4847-6167.1 4 h. Confirm that the CHP Form 180 prepared by PD is accurate after PD inventories the contents.;p-prior to taking possession of any vehicle, and immediately before release, digitally photograph in a manner which shows the date and time on the photograph the inside and outside to document condition of vehicle and its contents and retain such photograph in a secure location for at least one year i. Release no vehicle without first having obtained a release from the City to do so; j. Have adequate equipment to handle calls from the City and storage of motor vehicles; k. The Tow Carrier shall operate from a location within the incorporated boundaries of the City, and all of the facilities necessary to comply with the provisions of this Agreement shall be located within the incorporated boundaries of the City; 1. The Towing Carrier shall be responsible for the security of vehicles and property at the place of storage. At a minimum, a fenced or enclosed area shall be provided. The Towing Carrier is responsible for the reasonable care,custody,and control of any property contained in towed or stored vehicles; M. The Towing Carrier may not remove property from an impounded vehicle. The Towing Carrier shall obtain approval from the City prior to the removal of any property from a stored vehicle and shall provide a receipt,with a copy placed in the stored vehicle.The requirement to obtain approval from the City prior to the removal of property may he excused by the City if it is determined that proper safeguards and procedures are utilized by the Towing Carrier; n. Upon approval from the City, the Towing Carrier shall release personal property from a stored vehicle at the request of the vehicle registered owner or agent; o. There shall be no charge for the release of personal property during normal business hours. Towing Carrier may charge an after- hours release fee for property released after normal business hours, consistent with the after-hours vehicle release provisions; p. Personal property is considered to be items which are not affixed to the vehicle. Personal property from a stored vehicle shall be released upon request of the vehicle registered owner or agent. Responses are mandatory on weekends, holidays, and outside normal business hours, provided the vehicle's current registered owner or owner's authorized agent are available for return of personal property. Payment for an after-hour release of property may be required at the time of the release; q. Cargo shall be released upon demand of the carrier or pursuant to a court Order; r. The primary storage facility shall normally be at the same location as the business address. If not at the same location, there shall be no charge for any additional distance traveled to and from a secondary location.The vehicle and/or personal property shall he released at 4834-4847-6167.1 5 the primary storage facility or place of business upon request of the registered owner or a person having a legal entitlement to the vehicle and/or property; S. Prior to the utilization of new storage facilities that were not listed on the application for rotation tow listing,the Towing Carrier shall furnish the address and obtain the City's approval; t. Secondary storage facilities shall be located reasonably close to that main business office; U. All storage facilities shall meet all legal requirements for such facility; V. Towing Carrier's place of business shall have a sign that clearly identifies it to the public as a towing service. The sign shall have letters that are clearly visible to the public from the street. The sign shall be visible at night; W. For the purpose of this Agreement for Tow Services,"normal business hours" shall not be less than 8 a.m.to 5 p.m.,Monday through Friday,except for the following recognized holidays:New Year's Day,Martin Luther King Day,Presidents'Day,Memorial Day,Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, day after Thanksgiving Day, and Christmas Day; and X. Business hours shall be posted in plain view to the public.Offices staffed with only one employee may be closed for one hour at lunch. A sign shall be posted with the reason for closure. The sign shall have a phone number where a request will result in an immediate response to release property or vehicles.Response to the office shall be within the time frame required for tow response. 6. Towing Equipment: Tow vehicles shall be rated at a minimum of 14000 GVWR. (Class A) a. Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chasses Gross Vehicle Weight Rating (GVWR) and the classification system used by the American Trucking Association(ATA)and truck manufacturers; b. Towing Limitations: i. The total weight of the truck, including the lifted load, shall fall within the GVWR and not exceed either the Front Axle Weight Ratings (FAWR) or Rear Axle Weight Ratings (RAWR); ii. All tow trucks and car carriers shall be equipped and in compliance with the most recent electronic version of the California Highway Patrol Tow Truck Inspection Guide (CHP 234B); and, iii. The truck must meet all applicable state and/or federal standards; 4834-4847-6167.1 6 C. Identification Labels: Each piece of towing equipment shall have a label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number,model, and rated capacity; d. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can life in a winching mode,when the boom is static at a 30 degree elevation with the load lines vertical and the lifting cables sharing the load equally,measured with a live load(weight or load cell); i. The structural design of the recovery equipment must have a higher load capacity than the performance ratings; ii. Winches shall conform to or exceed the specifications set forth by the Recovery Equipment Rating (SAE) Handbook, SAEJ706; and, iii. All ratings for cable and chain assemblies are for the undamaged assembly condition. All cable and chain assemblies should be the same type, construction,and rating as specified by the original equipment manufacturer (OEM) for the equipment; and e. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. 7. Per Call Rotation System a. The City shall establish a per call rotation system of qualified Towing Carriers who have entered into Agreements with the City for the performance of towing services in response to calls from the City. All departments of the City shall comply with the rotation system. b. Towing Carrier shall comply with and qualify under all the minimum requirements set forth in this Agreement as a condition precedent to being eligible to be placed on the rotation list as follows: i. The City shall maintain a rotation tow list for Class A tow trucks to ensure an equitable distribution of calls. Nothing in this Agreement for Tow Services shall prohibit the City from requesting a specific Towing Carrier when,in the on scene supervisor's opinion, the necessary resources to clear a hazard as expeditiously as possible are not available from the Towing Carrier currently at the top of the rotation tow list. If the City needs a tow vehicle that exceeds that of a Class A tow truck,the City may,in its discretion, contact a Towing Carrier with the size of tow truck needed. In such an instance, the Towing Carrier selected would be the next Towing Carrier on the list which has the qualifications (equipment, skills, timelines, etc.) to provide the required service. After the request,the selected-Towing Carrier would then go to the bottom of the rotation tow list. Towing Carriers on the same list that were 48344847-6167.1 7 by-passed would remain in the same order until their selection for a rotation tow for which they are qualified; ii. A call to a Towing Carrier shall constitute one turn on the list and the Towing Carrier shall be moved to the bottom of the list. This includes when the Towing Carrier fails to answer the phone,is unable to respond, is unable to perform the required service, refuses to respond or provide service, or is canceled due excessive response time. If it is determined that the Towing Carrier is not needed and is canceled by the City,up to and including arrival at the scene and standby time which does not result in a tow,there shall be no charges and the Towing Carrier will be placed back at the top of the list; a) If the Towing Carrier is cancelled by the vehicle's registered owner or agent prior to the Towing Carrier taking possession of the vehicle, there shall be no charges for towing. The Towing Carrier shall immediately contact the City and advise them of the cancellation. The Towing Carrier will then be placed back at the top of the list; and, b) If service, other than towing,recovery, and load salvage,has begun and is canceled by the vehicle's registered owner or agent, the Towing Carrier may charge one-half of the regular hourly service charges for the time expended on the call. For purposes of cancellation, service begins when physical work on the vehicle has began,not the response. No lien shall arise for the service unless the Towing Carrier has presented a written statement to the vehicle's registered owner or agent for the signed authorization of services to be performed. The Towing Carrier shall not attempt to take possession of the vehicle in order to establish a lien for any non- towing services performed, or begun and subsequently canceled, when not entitled to such lien by law; iii. If two or more Towing Carriers are called to the same incident, distribution of the vehicles shall be at the discretion of the on-scene supervisor; iv. The Towing Carrier shall respond to calls 24 hours a day,seven days a week. Between 6:00 a.m. and 6:00 p.m., the response time shall be no more than twenty(20)minutes. Between 6:00 p.m. and 6:00 a.m.the response shall be no more than thirty(30) minutes. The Towing Carrier shall respond with a tow truck of the class required to tow the vehicle specified by the City. The Towing Carrier shall advise City dispatch,at the time of notification,if they are either unable to respond or unable to meet the maximum response time. If,after accepting the call,the Towing Carrier is unable to respond or will be delayed in responding, the Towing Carrier shall immediately notify the appropriate City department. The Towing Carrier shall not assign any calls to other Towing Carriers; 4834-4847-6167.1 8 a) A failure to respond to perform the required towing or service and/or repeated failures to meet the maximum response time requirements shall constitute a failure to comply with the terms and conditions of this Resolution and the Agreement for Tow Services; b) The City may take immediate disciplinary action for any violation of the requirement to respond within the maximum response time; and c) When a Towing Carrier will be temporarily unavailable to provide services due to a pre-planned or scheduled activity, the Towing Carrier shall notify the City at least 24 hours prior to the date that services will be unavailable, noting the times and dates of the unavailability; V. Towing Carriers shall have a minimum of three (3) verifiable years of for hire towing experience,as an owner or principal,prior to the final filing date of an enrollment period in order to qualify for a rotation tow listing; a) Towing Carriers and owners who do not meet the three year verifiable for-hire towing experience may be considered for a position on the City rotation tow list if a full-time manager who possesses the required tow management experience is employed by the Towing Carrier.An owner/Towing Carrier who releases vehicles, completes lien sale paperwork, and other tow business related documents for three years in the Towing Carrier, with the qualified manager, will fulfill the three years for-hire towing experience requirement; vi. To the extent applicable for stored vehicles, Towing Carver shall give or cause to be given written notice to the registered and legal owners of each vehicle which is towed in conformity with the authorization and requirements of this Agreement concerning the fact of such towing,the place at which such vehicle is stored and the imposition of charges for towing,storage and related services whenever the Towing Carrier knows or is able to ascertain from the registration records in the vehicle or from the registration records of the Department of Motor Vehicles the name and address of the registered and legal owners. The notice shall be given ten (10) days from the date of the towing of the vehicle by the Towing Carrier. SBPD shall be responsible for such notice for impounded vehicles; vii. The Towing Carrier shall post in its office a list of rights of the owner of the vehicle under this Agreement for Tow Services. The rights are set forth on Exhibit E to this Resolution; and 4834-4847-6167.1 9 viii. A stored vehicle shall be released to the registered owner upon presentation of the registration and valid proof of identification (as provided in Vehicle Code Section 22860.3)and payment of all towing and storage charges If the Towing Carrier does not release the vehicle as required by this subsection upon presentation of registration and valid proof of identification and payment of all charges, storage charges shall cease on the date of presentation of the documentation and payment of the accrued charges. 8. Compensation for Tow Services:Tow Carrier shall charge for services on calls by the City in an amount not to exceed ten($10)above the hourly rate set by the California Highway Patrol. Tow Carrier is responsible for collection of all such fees and charges. a. The rate for towing shall be computed from portal to portal. Time ogxr ded shall be charged at a rate not to exceed the hourly rate. Time expended in excess of the minimums shall also be at the hourly rate in no more than one-minute increments. There shall be no additional charges for mileage, labor, etc: i. The Towing Carrier may charge up to a thirty-minute minimum per call for any service or tow which is performed when the vehicle operator or agent is present and the vehicle is not stored at the discretion of an officer; and, ii. The Towing Carrier may charge up to a one-hour minimum per call on responses which result in storage of a vehicle at the direction of an officer; b. Rates for a service call(out of gas,lockouts,tire changes,etc.)shall be from portal to end of service, and may be at the hourly rate with a thirty-minute minimum. Charges in excess of thirty-minutes may be charged in no more than one-minute increments; and, C. Standby time for tow trucks will begin one(1)hour after receipt of calls from the City, and is defined to mean the time consumed after the first hour in necessary preparations in order to tow the disabled vehicle and in cleaning up the immediate surrounding area. 9. Compensation for Storage: Tow Carrier shall charge for services for storage at the storage rate set by the California Highway Patrol for the San Bernardino area. Tow Carrier is responsible for the collection of all such fees and charges. a. Fees for inside storage shall be charged only when inside storage is requested by the City, registered owner, legal owner, insurance company, or when the inside storage can otherwise be justified by the Towing Carrier; b. The Towing Carrier shall display in plain view at all cashiers stations,a sign as described in Section 3070 of the Civil Code. , disclosing storage fees, lien release fees, and charges in force, including the maximum storage rate; 4834-4847-6167.1 10 storage; and, C. Vehicles stored 24 hours or less shall be charged no more than one day d. Storage of vehicles in combination may be charged a per vehicle rate except for dollies and con-gear. Dollies and con-gear may be charged a storage rate not to exceed Class A storage fees; e. The charge for after-hours release shall be no more than one-half the hourly rate, and shall only be allowed on weekends,holidays, and outside normal business hours; f. The approved schedule of rates charged by the Towing Carrier shall be available in the tow truck, and shall be presented upon demand to the persons for whom the Tow Services were provided, their agent,or any officer at the scene; g. Rate requirements represent the maximum a Towing Carrier may charge on a City call. A Towing Carrier is not precluded from charging less when deemed appropriate by the Towing Carrier. These requirements shall not be construed as requiring a charge if a Towing Carrier would not normally charge for such service; h. Towing Carrier or employee shall not refer to any rate as required or set by the City; i. In the event that a towed vehicle is forfeited by the owner in accordance with Section 14607.6 of the California Vehicle Code, the proceeds of the sale of the vehicle shall be distributed pursuant to said section of said Code; and j. The Towing Carrier shall accept all guaranteed forms of payment including, without limitation,money orders,certified checks,debit cards and all widely accepted credit cards. There shall be no surcharge for the use of a credit card.If the form of payment cannot be accepted by the Towing Carrier due to any failure by the Towing Carrier or Towing Carrier's payment processing equipment, Towing Carrier shall not charge storage fees beyond date of such failure. 10. City Fees and Franchise Fees. In addition to the amounts charged vehicle owners, Tow Carrier shall pay the following fees to the City in the manner set out here. a. Impounded Vehicles: Registered Owner shall pay to the City an administrative release fee of$349 per vehicle towed, impounded and thereafter stored; b. Stored vehicles: There shall not be a fee charged for stored vehicles based upon the City's determination that such fees most often would be charged to the victims of crimes(auto theft) or accidents; c. Franchise Fee: Tow Carrier shall pay the following franchise fees per vehicle towed under this Agreement(collectively"vehicle) during the initial term of this Agreement and shall not be passed through to vehicle owners in any manner: 4834-4847-6167.1 11 Year 1 (effective date of Agreement, 2011,through June 30, 2012) - $70.00/vehicle Year 2 (July 1, 2012 through June 30, 2013) -$72.10/vehicle Year 3 (July 1, 2013 through June 30, 2014) - $74.25/vehicle Year 4 (July 1, 2014 through June 30, 2015) - $75.50/vehicle Year 5 (July 1,2015 through June 30, 2016) - $79.00/vehicle Such franchise fees may be adjusted by the City after the initial 5-year term hereof; d. Verification of Tows and Payment of Franchise Fees: By the 15th of each month, Tow Carrier shall submit to the Police Department a list of all vehicles towed under this Agreement during the previous calendar month, including but not limited to owner's request tows. The list shall be in a format acceptable to the Police Department and shall include the case number, vehicle license plate number and vehicle identification number. At the same time as the list is provided, Tow Carriers will remit franchise fee payment to City for the vehicles towed during the previous calendar month. Any amounts not paid by the 15''of the following month shall bear interest at the rate of 10%per annum, simple interest, compounded daily until paid; and e. City fees (including but not limited to the list prepared) are subject to audit and verification as set out herein whether as part of an annual review or otherwise. 11. Employees: a. The Towing Carrier shall insure that tow truck drivers responding to calls initiated by the City are qualified and competent employees of the Towing Carrier's company. The Towing Carrier shall ensure that the tow truck drivers are trained and proficient in the use of the tow truck and related equipment, including, but not limited to, the procedures necessary for the safe towing and/or recovery of the various types of vehicles serviced through City rotation. Tow drivers shall perform all towing and recovery operations in the safest and most expedient manner possible. Tow truck drivers shall be at least 18 years of age and shall possess the proper class license and endorsements for the towed and towing vehicle; b. The Towing Carrier shall maintain a current list of drivers; C. All tow truck drivers and owner/Towing Carriers shall be enrolled in the Pull Notice Program; i. Upon the addition of new drivers, a Towing Carrier will be granted a maximum of 30 days to enroll drivers in the Pull Notice Program; ii. Pull Notices shall be kept on file, signed, and dated by the Towing Carrier; and, iii. The City may require a Towing Carrier to provide copies of Pull Notice Reports to the City; 4834-4847-6167A 12 d. The Towing Carrier,or Towing Carrier's employees responding to a call,shall perform the towing or service required for which they were called unless the requested equipment is inadequate for the service to be performed; and, e. Only the tow truck personnel and equipment requested shall respond to the City call. A Towing Carrier shall not respond to a City call assigned to another Towing Carrier unless requested to do so by the City; i. This shall not preclude the Towing Carrier from responding to an incident to ascertain if additional assistance or equipment is required. There shall be no additional charge for any personnel or equipment that is not necessary to perform the required service; ii. There may be times when the Towing Carrier assigned the initial call may require the assistance of an additional Towing Carrier at the scene. The Towing Carrier assigned the initial call may,subject to prior Agreement with the City and with the concurrence of the on scene supervisor, request a specific Towing Carrier for assistance. The request shall be routed to the additional Towing Carrier through the City; and, iii. There may be times when a Towing Carrier, who was not called to a scene, comes upon a collision scene where a vehicle or vehicle are blocking a roadway and an officer requests assistance in clearing the roadway.In such a case, the Towing Carrier may be requested to move the vehicle to a safe location, as directed by the officer, and leave it. There shall be no charge for this assistance and the assistance provided shall not change the Towing Carrier's place in the rotation. f. Employees shall he properly trained to conduct business transactions related to towing, storage, and release of vehicles/property; g. Uniforms: While engaged in tow operations hereunder, City rotation tow drivers shall wear an identifiable uniform shirt displaying the Tow Carrier's and driver's names;and h. Safety Vests: City rotation tow drivers shall wear a safety vest and/or reflectorizing clothing,as well as any other safety clothing required by and meeting CalOSHA and Occupational Safety and Health Administration (OSHA)requirements. 12. Complaint Procedure: All City related tow service complaints from the public received by the City against a Towing Carrier or Towing Carrier employees will be accepted and investigated in a fair and impartial manner pursuant to procedures utilized by the Police Department or as set out herein. The Towing Carrier will be notified of the results of any investigation. 13. Records: Each month, Towing Carrier shall submit a list of all vehicles towed the previous month, including license plate numbers and vehicle identification numbers, and shall identify clearly all impounded vehicles towed to its storage facility. 4834-4847-6167.1 13 a. The Towing Carrier shall maintain records of all Tow Services furnished. The records will be maintained at the Towing Carrier's place of business. Invoices shall at a minimum include a description of each vehicle,nature of service,start time,end time,location of call,itemized costs of towing and storage, the tow truck driver's name, and truck used; b. At the Towing Carrier's primary office,the Towing Carrier shall also maintain business records relating to personnel, insurance, personnel taxes, payroll, applicable operating authorities, local operating authorities, lien sale actions, Federal Communication Commission licensing, and non-City I tows; C. The City may inspect all Towing Carrier records without notice at any time during normal business hours and during the annual reviews; d. Towing Carrier shall permit the City to make copies of business records at its place of business, or to remove business records for the purpose of reproduction. The City shall provide a receipt for any(original)records removed from the place of business; e. Records shall be maintained and available for inspection for a period of four (4) years after the termination of this Agreement for Tow Services; and, f. Failure of the Towing Carrier to comply with the inspection requirements shall be cause for suspension and/or termination of this agreement. 14. Audit: a. Upon reasonable advance written notice, City or its designee shall have the right to review and audit the books of Towing Carrier's place of business and during business hours. In the event that such audit shows a 5% or greater variance in revenues owing to the City by Tow Carrier,the following amounts shall be owing by Tow Carrier to City: 1)the amount determined to be owing as a result of the audit; 2) simple interest at the rate of 10% on the amounts owing, compounded daily from the due date; 3) both 1) and 2) shall be paid within 10 calendar days of notification of the deficiencies; and 4)Tow Carrier shall pay the reasonable costs of the audit based upon invoices provided by City; and b. In the event that an audit shows an 10% or greater variance in revenues owing to the City, the following amounts shall be paid to the City by that Tow Carrier: 1. the amount owed as a result of the audit; 2. simple interest at the rate of 10%on the amount owed,compounded daily from the due date; 3. the amount owed including interest shall be paid within 10 calendar days of notification of deficiencies; and 4. pay the reasonable costs of the audit; 4834-4847-6167.1 14 c. In the event the audit determines a 15%variance in revenues owing to the City, such result may be ground for action under Section 17 herein. 15. Assignment: Any assignment of this agreement due to change in ownership requires the approval of the City Council to continue on the tow rotation.Any change of ownership must be reported to the Police Department in writing within seven(7)days of such change. Thereafter, Police Department will review the proposed new owner(s) under the standards set out in this Agreement and procedures the Police Department adopts therefor. Within 30 days of the date of notification of the change of ownership, the Police Department shall report the results of its review to the City Council,which shall approve or deny the assignment of this Agreement to the new owner. In the event the City Council denies the assignment,the Agreement shall terminate as of the date of such denial and the Police Department shall initiate procedures to replace the Tow Carrier in the towing rotation. Such termination is not subject to the appeal provisions hereof or of Resolution No. 2005-286. 16. Standards for Performance:While involved in City rotation tow operations or related business, the Tow Carrier and/or employees shall refrain from any acts of misconduct including,but not limited to, any of the following: a. Rude or discourteous behavior; b. Lack of service, selective service, or refusal to provide service which the Towing Carrier should be capable of performing; C. Any act of sexual harassment or sexual impropriety; d. Unsafe driving practices; e. Exhibiting any objective symptoms of alcohol and/or drug use; f. Appearing at the scene of a City rotation tow call with the odor of an alcoholic beverage emitting from the Tow Carrier's employee's breath. The Towing Carrier employee shall submit to a preliminary alcohol screening test upon demand of the City; g. Should the filing of criminal charges be a possibility,the City will conduct the investigation to conclusion or assist the lead investigation agency and, if warranted, request prosecution; h. Traffic Violations; i. In the event of a minor traffic violation by a tow truck driver which is known by the City,the Towing Carrier shall be advised of the violation by the City. The Towing Carrier will be granted the opportunity to take necessary steps to ensure that the driver complies with the law. Any subsequent traffic 4834-4847-6167.1 15 violations may be cause for disciplinary action against the Towing Carrier and/or the involved employee(s); ii. Any flagrant traffic violation maybe cause for immediate disciplinary action against the Towing Carrier and/or the involved employee(s); and, iii. The provisions contained in any compliance with law provisions in this Agreement do not preclude the City from taking appropriate enforcement or administrative action for any violations of law. Complaints for violations of the law not normally investigated by City will be referred to the agency with investigation jurisdiction; i. Any conviction of the Towing Carrier or employee involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of violence,a drug-related offense, felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug, or moral turpitude while involved in a City rotation tow call shall be cause for removal of the Tow Carrier from the list of current City rotation, denial of Towing Carrier application, or termination of this Agreement; j. A Tow Carrier or employee arrested/charged for a violation involving any of the above crimes may be suspended until the case is fully adjudicated.Records of violations shall be retained by the City for at least 36 months; k. A violation of the equipment requirements related to safety shall be cause for immediate suspension of the Tow Carrier from the tow rotation.The suspension will remain in effect until the period of suspension is completed and the City has conducted an inspection and concluded the Tow Carrier is in compliance; 1. A violation of the GVWR and safe loading requirements of a tow truck may be cause for immediate suspension of the Tow Carrier. This includes exceeding the tow truck's GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck's unladen front axle weight on the front axle when in tow; M. A violation of intentionally overcharging or a pattern of overcharging or of non-payment of City fees shall be cause for suspension of the Tow Carrier. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has presented proof to the City that reimbursement has been made to the aggrieved customer; n. City personnel shall not be offered gratuities,and requests for gratuities shall not be honored by Tow Carriers, employees, or associates of the Tow Carrier. A violation of this section shall be cause for suspension or termination; o. Failure of the Tow Carrier to satisfy a court order mandating reimbursement to the vehicle owner or property owner for the damage or loss which occurred while the vehicle was in the Towing Carrier's custody will result in a suspension.The suspension will remain in effect until the period of suspension is completed and the Towing Carrier has presented proof of the reimbursement; 4834-4847-6167.1 16 P- Failure of the Tow Carrier to comply with the inspection requirements of this Agreement for Tow Services shall result in a suspension.The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has complied with the inspection requirement; q. Failure of the Tow Carrier to send tow truck drivers who are qualified and competent employees on City calls shall be cause for suspension. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has presented proof to the City that the driver is qualified and competent; and, r. Failure of the Tow Carrier to maintain the minimum insurance requirements set forth in the Agreement for Tow Services will immediately nullify the Agreement for Tow Services. The Tow Carrier will be subject to an additional suspension for failure to notify the City in advance of the insurance policy expiration or cancellation. 17. Suspension and Termination for Cause: The City shall take disciplinary action against Tow Carriers for violations investigated and confirmed or sustained.Unless otherwise noted,the City shall determine the period of suspension.The City shall retain discretion regarding the length of any suspension imposed pursuant to the terms and conditions of this Agreement for Tow Services. a. Violations of the terms and conditions of this Agreement maybe cause for disciplinary action against the Tow Carrier as follows;in lieu of termination,the City may impose additional suspension for longer periods, if deemed appropriate; i. First violation within a 12 month period - letter of written reprimand; No changes to these per PD; ii. Second violation within a 12 month period- 1 to 30 day suspension; Third violation within a 12 month period - 60 to 90-day suspension; and, iv. Fourth violation within a 12 month period-termination of the Agreement for Tow Services. b. Violations of the terms and conditions of this Agreement that are subject to suspension for the first violation are categorized as major violations.Any subsequent or continuing major violation may be cause for termination; i. When considering punitive action for a major violation of the Agreement,the City may take into consideration all major and minor violations that occurred within 36 months prior to the date of the current violations; and, ii. Termination shall be invoked if, in the City's sole judgment, continued participation in the Rotation Tow Program by the affected Towing Carrier 48344847-6167.1 17 may result in a hazard to public safety and/or welfare, or any conviction of the Towing Carrier or employee involving a stolen or embezzled vehicle, fraud related to the towing business,stolen or embezzled property,a crime of violence,a drug-related offense,felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug, or moral turpitude while involved in a City rotation tow call; C. Nothing herein shall be deemed to prohibit the City from immediately suspending any Towing Carrier or employee whose conduct,in the opinion of the City,is deemed to be a danger to the motoring public or who has engaged in conduct constituting a flagrant violation of the Agreement for Tow Services; d. Administrative Hearing: In the event the City serves the Towing Carrier with Disciplinary action, the Towing Carrier may request a hearing within seven calendar days by submitting a request in writing to the Traffic Sergeant at the Police Department. If a hearing is requested, it shall be held as soon as practical. The hearing shall be conducted by the Traffic Sergeant or designee, and the Tow Carrier shall be entitled to present all relevant facts and circumstances in support of the Tow Carrier's position. The Tow Carrier shall be further entitled to present testimony of at least one qualified person.The Tow Carrier shall be notified in writing of the Traffic Sergeant's decision(s) within ten business days of the date of completion of the hearing; e. Appeal from Administrative Hearing:Following a hearing,if the Tow Carrier is dissatisfied with the Traffic Sergeant's decision(s), the Tow Carrier may appeal by submitting a request in writing to the City Clerk, pursuant to Municipal Code Chapter 2.64, and paying any applicable fees; f. A suspension shall not take effect until the hearing and appeal process has been exhausted, with the exception of Tow Carriers whose conduct deemed to be a danger to the motoring public or who continue to violate the terms and conditions of this Agreement for Tow Services. If a Tow Carrier fails to request a hearing or appeal,the action taken by the, City shall be final, and the suspension shall take effect upon written notification to the Tow Carrier by the City; and g. A terminated or suspended Tow Carrier, and/or the Tow Carrier Business owner at the time of the suspension or termination shall not be eligible for a rotation listing for the duration of the suspension or termination. This provision applies to the Tow Carrier working in any capacity within any tow business or operating any tow business,and to the tow business,even if operated under new ownership.This provision does not apply to Section 16 regarding termination due to a change in ownership. 18. Notice: Any notice to be given pursuant to this Agreement by either party to The other shall be given by personal service or shall be deemed given when deposited with the United States Postal Service, first class,postage prepaid, and addressed as follows: 48344847-6167.1 18 To the City: City Manager 300 North "D" Street San Bernardino, CA 92418 To Towing Carrier: Tri-City Towing 1661 Walnut Street San Bernardino, CA 92410-2233 19. Miscellaneous: This Agreement represents the entire Agreement between the City and the Tow Carrier and fully supersedes any and all previous Agreements enter into by and between the City and Tow Carrier. This Agreement may be amended only in writing agreed upon by all affected Tow Carriers.No waiver of any term or condition of this Agreement shall be a continuing waiver thereof. 20. Attorneys' Fees: In the event of litigation to enforce this Agreement, the prevailing party in such litigation shall be entitled to reasonable costs and attorneys' fees, as determined by the Court. As used here, "attorneys' fees" includes the costs, salary and expenses of the City Attorney and members of his office. IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the day and date first above shown. CITY OF SAN BERNARDINO By: City of San Bernardino Attest: By: TOWING CARRIER: TRI-CITY TOWING By: Print Name: Approved as to Form: JAMES F. PENMAN City Attorney By: 4834-4847-6167.1 19 EXHIBIT"A" I LRHIBrr A TOW CARRIERS MNIMUM REQUIREMENTS (EFFECTIVE FOR TOW CARRIERS ENTERING THE CITY'S TOW ROTATION AFTER THE EFFECTIVE DATE OF THIS RESOLUTION) A. Have a minimum outside storage space of 65,000 square feet capable of storing at least 200 vehicles. B. Minimum inside storage space of 2000 square feet capable of storing at least five (5) automobiles. C. Security fencing around the entire outside storage space. D. Monitored alarm system-If the outside storage space is not alarmed,the inside storage must be. E. Minimum of three Class A tow trucks. F. Current City Business License. G. Certificate of Occupancy. H. Hazardous Material Handler's Permit. I. Have either an inside or outside customer waiting area for at least five customers of 100 square feet. The outside waiting area shall exclude parking and landscape areas. J. Have a minimum of three years of for-hire towing experience as an owner/principal or have a qualified manager with the experience. K. Have an attendant on call twenty-four (24) hours a day, seven days a week at place of business. L. Have no more than two telephone numbers listed with any City department. M. Store towed vehicles in a safe, lighted and protected space where the vehicles and their contents will not be accessible to thieves nor be damaged by activity in the carrier establishment or from the elements or by vandals;no vehicles shall be left parked or stored on the public streets at anytime;in no event shall the city be liable for any theft,vandalism or damage occurring to any such vehicle or its contents. N. Post a tag on the windshield of all cars ordered impounded by the City. O. Collect all towing or hauling and storage charges on each vehicle from the owner; in no event shall the city be liable for any such charge. 1 P. Whenever a vehicle has been involved in an accident or a traffic violation,and the owner or someone delegated by him is present and is capable of removing the vehicle from the street with reasonable dispatch, and the vehicle is not needed for criminal evidence, City and/or towing carrier shall permit the owner or his delegate to remove the vehicle or call a towing company of his or her own choice to remove the same;provided, however, that if the street cannot be cleared for safe public use with reasonable dispatch by the above method, and in all situations other than above set forth, a towing carrier from the top of the rotation list will be called by the City. Q. Furnish each owner with a fully itemized billing. R. Immediately after each towing operation, make a towing slip with the contents of each vehicle placed in his or her care itemized thereon as verified by the officer ordering the same and make the slip available to the City on request. S. Release no impounded vehicle without first having obtained a release from the City to do SO. T. Agree to a rotation system established by the City. U. Comply with all rules, regulations and laws of the State of California, County of San Bernardino and City of San Bernardino. V. Have adequate equipment to handle calls from the city, impounds, and storage of motor vehicles. W. The carrier shall operate from a location within the City of San Bernardino,and all of the facilities necessary to comply with the provisions of this resolution shall be located within the City of San Bernardino. X. Carry a broom,trash can and sand,clean and remove broken glass,spilled oil,or gasoline from the area before departing, unless directed to not do so by police officers and/or designated City employees at the scene. Y. Each tow carrier shall maintain insurance pursuant to the requirements set forth below. The City of San Bernardino shall be named as an additional insured on all policies including the workers compensation policies. Tow carriers shall provide an endorsement to each policy showing the City as an additional insured. 1. The operator shall maintain the following minimum levels of insurance from an insurance carrier admitted in California, or admitted in the state in which the operator's business is located, and is authorized to do business in California: a) Minimum Level of Financial Responsibility(as required by Section 34631.5 of the California Vehicle Code) -Bodily injury and property damage with 1) a combined single limit of not less than$750,000 for Class A tow trucks. These minimum standards are to include non-owned and hired auto coverage. b) Uninsured Motorist-Legal minimum, combined single limit. c) On-Hook Coverage/Cargo-Insuring the vehicle in tow with limits based on the size of the tow truck. d) Garage Liability/Garage Keeper's liability - Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than$500,000. 2. Proof of insurance shall be in the form of a certificate of insurance. Policy expiration or cancellation will immediately nullify the Agreement for Tow Services between the carrier and the City. The operator's insurance policy shall provide for not less than 30 days written notice to the City in the event the insurance policy is canceled or is due to expire. Z. Tow vehicles shall be rated at a minimum of 14000 GVWR.(Class A) 1. Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chassis Gross Vehicle Weight Rating(GVWR) and the classification system used by the American Trucking Association(ATA) and truck mamfacturers. 2. Towing Limitations: a) The total weight of the truck, including the lifted load,shall fall within the GVWR and not exceed either the Front Axle Weight Ratings (FAWR)or Rear Axle Weight Ratings(RAWR). b) All tow trucks and car carriers shall be equipped and in compliance with the most recent electronic version of the California Highway Patrol Tow Truck Inspection Guide(CHP 234B). c) The truck must meet all applicable state and/or federal standards. 3. Identification Labels: Each piece of towing equipment shall have a label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number, model, and rated capacity. 4. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can lift in a winching mode,when the boom is static at a 30 degree elevation with the load lines vertical and the lifting cables 3 sharing the load equally; measured with a live load (weight or load cell). a) The structural design of the recovery equipment must have a higher load capacity than the performance ratings. b) Winches shall conform to or exceed the specifications set forth by the Recovery Equipment Rating(SAE)Handbook, SAE J706. c) All ratings for cable and chain assemblies are for the undamaged assembly condition. All cable and chain assemblies should be the same type, construction,and rating as specified by the original equipment manufacturer (OEM)for the equipment. 5. ControllSafety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. 6. Uniforms: City rotation tow drivers shall wear an identifiable uniform shirt displaying the company and driver's names while engaged in City rotation tow operations. 7. Safety Vests: City rotation tow drivers shall wear a safety vest or reflectorizing clothing, meeting Occupational Safety and Health Administration (OSHA) requirements. AA. The City may grant additional points or deduct points asset forth in Exhibit B to Resolution No. BB. No tow carrier is exempt from meeting-legal requirements imposed by any city,county,State or Federal laws or regulations. An example of this is the Clean Water Act. 4 I EXHIBIT 'B•' E"IBIT "B" Preliminary Application Review Applications that do not currently meet all of the following minimum qualifications will be rejected and returned to the tow carrier with a cover letter stating the reasons for rejection. Tow Carrier Name Date Internal Use Only Qualification Yes No 1. Meets all standards of the most current city resolution establishing standard criteria for tow corn anies. 2. Tow business office and storage facility located within San Bernardino City limits. 3. Minimum Outside Storage of 200 vehicles,65,000 sq. ft. 4. Minimum Inside Storage of 2,000 sq.ft. 5. Secure, lighted storage facility 6. . Attendant on-duty 24 hours 7. 24 hour service including weekends and holidays 8. Minimum of three certified Class A tow trucks 9. Current City Business license 10. Certificate of Occupancy [ ] Permanent [ ] Temporary 11. Hazardous Material Handlers Permit Current 12. Monitored Alarm System: If outside perimeter is not alarmed then inside storage must be. 13. Minimum inside waiting area of 100 sq. ft. 14. Minimum outside waiting area, excluding parking space and landscaping,of 100 . ft. 15. Operator has three years of verifiable towing experience as an owner or principle, or has a full time manager who possesses the required experience. 16. Financial Interest in another tow company providing services to the City 17. Prior conviction(s),guilty plea,or nolo contenders plea that excludes tow carrier, Comments UATow swffiApplication Preliminary Review Check List 2-1-01 Ldoc efi�'.za. I I EXHIBIT"C" IMIBIT "C" SELECTION PROCESS ATTACHMENT Tow Carrier. Date! Contact Information Agency Name Contact Person Title Telephone# . Date of Contact I Governmental Agency Tow Service History Agency Number of Negative Complaint History Actions #Sustained #Unfounded Revised 7/19/2005 ]=IBIT "C" SELECTION PROCESS ATTACHMFNT Each tow carrier shall be awarded a point value for each of the in-depth investigation categories. The points may range from negative values(deductions)to positive values(additions). Meeting the minimum qualifications in a specific category will have a point value of zero. Tow Service History Points Lost Negative Actions-are defined as any notice of Total Points Lost disciplinary action by a governmental agency or issuance of a citation that results in sanctions or conviction. 1 - 4=- 5 16-20=-30 5- 10=40 21 -25=-40 11-15=-20 25+ =-50 Government Agency Name Date of Action Summary of Action Business Expiration Date: License Number: Sub-Total Tow Service History Facility Inspection Minimum Outside Additional Outside Space Minimum Inside Additional Inside Space Total Storage Space 10,000-20,000 sq.ft.=+5 Storage Space 1,000-1,500 sq.ft.=+5 Points. Required 65,000 sq.ft. 20,001 +sq.ft.=+10 Required 2,000 sq.ft. 1,501 +sq.ft. =+10 J Office Area Front of Business Rear of Business=-2 Unimproved Walkway for customer Location/Access No Obstructions access=-2 0 Sta$nig/Otgaazation 1 person to 2-4 able to conduct routine business=+2 *Routine busineas includes do conduct routine 5+able to conduct routine business=+5 release and sale of vehicles' business 0 Gtistai►e inside 100 sq. ft.minimum=0 Seating for Public access to customer files War ' Area 100 additional sq.ft=+2 Customers=+2 =-10 Revised 7/19/2005 F.%IiIBIT "C" SELECTION PROCESS ATTACHMENT Customer Outside 100 sq.ft.of outside Entire Area Covered=+2 Waiting Area waiting area=+2 Some Area Covered=+1 (excluding parking Seating for Customers=+2 and land SecUr&*I Fencing No Damaged Areas=0 Yard Motion Beams=+2 •Damalo is arcs teat allow Damaged Areas=-5 Recorded Video Camera Unintended amens to =+5 veldcks Hazardous Material Proper Storage& Improper Storage/Item Handler Permits Solid=-2;Liquid=-5 0 Tow Trucks Minimum of 3 Certified Additional Certified Class A Class A Trucks Trucks 1-3=+2;4+_+5 Toa Truck Broken or Damaged Equipment=-1 per item Missing or Non Useable Equipment Equipment -5 per item squired Equipment Specified on Tow Truck bon Guide• Pull No�xs On File=0 Missing=-5 per driver Business Records On Site=0 Readily Accessible=+2 Not readily accessible= Immediate Retrieval ofReeords -5 Comments: Subtotal of Tow Service History Points Subtotal of Facility Inspection Points Total Points In Depth Investigation Conducted By: Print Name and Rank Reviewed/Approved By: Print Name and Rank Rrvicrtl 7/l9/2(905 i t a l f 0 i I a i 3 r 31 I i 1 i I EXHIBIT•"D" SRSIBIT City of San Bernardino Selection Process of Tow Carriers The attached documents are samples of those the SBPD proposes to use when positions become available for tow carriers to provide service to the City of San Bernardino. The documents are in order in which they will be used during the selection process. 1. The SBPD gives notice of an available tow carrier position via advertisement in a local newspaper,Channel 3 posting and notice to local Chamber of Commerce. 2. Interested tow carriers request application packages through the SBPD Traffic Unit. 3. The SBPD Traffic Unit mails or gives an application package to the requesting tow carver: a) Letter acknowledging request for package b) Tow Rotation List Application/Copy of current Agreement For Tow Services 4. Tow Carrier returns completed application by due date for consideration. 5. The SBPD reviews the retumed application to ensure that the applicant meets the minimum criteria: a) Criteria met,letter sent to tow carrier b) Criteria not met,letter sent to tow carrier 6. Application package assigned for completion: a) Contact Government agencies to whom tow carrier provides service b) Business licensing c) Certificate of occupancy d) -Hazmat handlers permits 7. Conduct inspection: a) Licensing/Haz nat requirements compliance b) gate posting compliance c) Tow Service Agreement compliance d) Total point value calculated from selection process attachment 8. Completed application and inspection packages given to City Council for selection of tow carrier(s)with rankings based on total points. 9. Required documents Sled for formal entry of an Agreement For Tow Service with selected tow carrier. a) Request for Council Action b) Drafted Resolution c) Agreement for Tow Services between the City of San Bernardino and tow carrier � . ] � . ! � . . ) ] ] 2 ) . ) ! . ) } ] ! � ] . . . ) ] ! � EXEO[Bff"E' EXHIBIT"Ell RIGHTS OF PERSONS WHOSE VEHICLES ARE TOWED AT THE REQUEST OF THE CITY OF SAN BERNARDINO (TO BE POSTED IN VISIBLE LOCATION IN TOWING CARRIER'S OFFICE) Tow operators who tow vehicles at the request of the City of San Bernardino operate under an Agreement for Tow Services with the City. The agreements require the tow operators to comply with certain rules and provides the following rights to the owner of a towed vehicle. The owners'rights are summarized as follows: 1. Notice to the registered and legal owners of the vehicle within 10 days of being towed of location of vehicles and charges. 2. Normal business hours are 8:00 a.m. to 5:00 p.m. Monday through Friday except recognized holidays of New Year's Day,Martin Luther King Day,Presidents'Day,Memorial Day, Independence Day,Labor Day,Veteran's Day,Thanksgiving Day and Christmas Day. 3. Business hours to be posted for viewing by the public. 4. Tow operators shall respond to after hours release within thirty minutes. 5. Tow operators shall accept all guaranteed forms of payment and widely accepted credit cards without a surcharge. 6. If a stored or impounded vehicle is not released once proper documentation and identification are provided and all charges paid,further storage charges shall cease as of the date of presentation and payment. 7. Itemized invoices shall be provided. 8. Right to file a complaint with the City of San Bernardino. AGREEMENT FOR TOW SERVICES (EXISTING TOW CARRIERS) THIS AGREEMENT FOR TOW SERVICES (this"Agreement")is entered into this fourth day of April, 2011, by and between the CITY OF SAN BERNARDINO ("City") and Big "Z" Autoworks, Inc. (Tow Carrier" or "Towing Carrier") effective April 4, 2011 (the "Effective Date"). RECITALS A. The Vehicle Code authorizes City regulation of involuntary towing and storage with appropriate compensation therefore, which compensation covers the reasonable cost (including direct and indirect overhead) as well as franchise fees; and B. City has adopted Resolution No.2005-286,as amended by Resolution No.2008-347, "Establishing Standard Criteria for Companies to Provide Tow Services"and the Exhibits attached thereto; C. The Resolutions cited above presently provide for a towing rotation franchise within the City for the more efficient regulation and operation of tow companies with the ratio of one tow company chosen for the rotation for each 35,000 people within the City; -D. The City and the six (6) Tow Carriers currently on the rotation have agreed that it promotes ease of operation to restate such existing requirements in one Agreement which reorganizes the proposed model contracts for existing and new Tow Carriers as those proposed contracts were set out in Resolution 2005-286 and that this Agreement contains the same provisions regarding operation of the tow rotation and requirements for Tow Carriers; E. City shall not pursue the establishment of an impound yard. F. In consideration Tow Carriers have agreed to the revised or additional provisions including but not limited to those regarding franchise payments and audits; G. This revised and updated Agreement,upon execution by each of the six(6)existing Tow Carriers, shall supersede in their entirety any and all prior agreements between the City and each Tow Carrier; and H. City finds and Tow Carriers agree that the compensation and other provisions of this Agreement meet the requirements of all applicable laws. NOW, THEREFORE,the parties hereto agree as follows: 1. Recitals. The Recitals set out above are true and correct. 2. Provision of Tow Services by Tow Carrier 4834-4847-6167.1 1 a. Term; Extension at City's Qption: This Agreement shall commence on the Effective Date for a term of five years unless sooner terminated hereunder. This Agreement may be extended as to the Tow Carrier upon the City's sole determination that Tow Carrier is in compliance with all terms and conditions hereof. Such an extension shall be for an additional 5years. There is no promise and should be no expectation of such extension. Failure to grant such extension shall result in termination of this Agreement, which termination is not subject to the appeal provisions hereof or of Resolution No. 2005-286. At the end of the term of the Agreement, whether or not extended,there shall be no more extensions of this Agreement and Tow Carrier understands it is not entitled to any such additional extension, nor may the City grant such additional extension. This Agreement confers a privilege and not a right; b. Tow Carrier hereby agrees to provide Tow Services to the City pursuant to terms and conditions contained in this Agreement. "Tow Services"means the following types of nonconsensual towing initiated by the City,including but not limited to code enforcement tows: (i) towing of involuntarily impounded vehicles (where such impound is authorized under the Vehicle Code) to the Tow Carrier's storage yard and storage there; and (ii) towing and storage of non- impounded vehicles when directed to do so by City personnel or by the owner (owner's request tows); C. Whenever a vehicle has been involved in an accident or a traffic violation,and the owner or someone delegated by the owner is present and is capable of removing the vehicle from the street with reasonable dispatch, and the vehicle is not needed for criminal evidence,City and/or Tow Carrier shall permit the owner or his delegate to remove the vehicle or call a tow carrier of his or her own choice to remove the same; provided, however, that if the street cannot be cleared for safe public use with reasonable dispatch by the above method,and in all situations other than above set forth, a Tow Carrier from the top of the rotation list will be called by the City; and d. This Agreement supersedes any and all prior agreements between the parties as to the subject matter hereof. 3. General Requirements of Tow Carriers: a. Tow Carrier shall comply with all rules,regulations and laws of the State of California,the County of San Bernardino and the City of San Bernardino,including but not limited to those applicable to storage facilities. Tow Carrier shall also comply with all provisions of the Resolution of the Mayor and Common Council of the City of San Bernardino Establishing Standard Criteria for Companies to Provide Tow Services for the City of San Bernardino as said Resolution exists and/or as said Resolution maybe amended from time to time; b. Tow Carrier shall specifically comply with Exhibits A through E of Resolution No. 2005-286 attached thereto and set out as follows: Exhibit A—Minimum Tow Service Requirements Exhibit B - Preliminary Application Review 483411847-6167.1 2 Exhibit C - Towing Carrier Selection Process Exhibit D - Selection Process Exhibit E - Rights of Persons Whose Vehicles are Towed at the Request of City C. No Towing Carrier or applicant shall be directly involved in the towing related business of any other Towing Carrier or applicant on the City's tow rotation; d. Storage facilities owned by a Towing Carrier,and shared with another Towing Carrier,shall be approved only if the owner-Tow Carrier charges for the space exclusively on a flat monthly rate rather than a vehicle-by-vehicle basis, or combination thereof. Facilities shared by Towing Carriers shall be physically separated and secured from each other; e. The City shall conduct, at a minimum, one annual meeting with all Tow Carriers to discuss issues concerning the tow rotation. All meetings shall be mandatory for the Towing Carrier or Towing Carrier's designee wishing to remain on rotation. The City shall give the Towing Carrier 30 day's prior written notice of these meetings. The City may call additional required and noticed meetings with one or more Tow Carriers to address issues arising under this Agreement; and f. Tow Carrier understands and agrees that the Police Department or its designees may conduct annual reviews of Tow Carrier's operations to insure compliance with the regulatory and other requirements of this Agreement. Notwithstanding, the City and Police Department reserve the right to conduct reviews of Tow Carrier's operations at any time when health, safety or welfare concerns require such immediate review. 4. Towing Requirements: a. Rotation System: Agree to a rotation system established by the City; b. Carry a broom,trash can and sand,clean and remove broken glass,spilled oil, or gasoline from the area before departing, unless directed not to do so by police officers and/or designated City employees at the scene; C. Insurance: Each Tow Carrier shall maintain insurance pursuant to the requirements set forth below. The City shall be named as an additional insured on all policies including the workers compensation policies. Tow Carriers shall provide an endorsement to each policy showing the City as an additional insured. The Tow Carrier shall maintain the following minimum levels of insurance from an insurance carrier admitted in California, or admitted in the state in which the Tow Carrier business is located, and is authorized to do business in California: i. Minimum Level of Financial Responsibility(as required by Section 34631.5 of the California Vehicle Code)—Bodily injury and property damage with a combined single limit of not less than $750,000 for Class A tow trucks. These minimum standards are to include non-owned and hired auto coverage. ii. Uninsured Motorist—Legal minimum combined single limit. 4834-4847-6167.1 3 iii. On-Hook Coverage/Cargo insuring the vehicle in tow with limits based on the size of the tow truck; iv. Garage Liability/Garage Keeper's liability — Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than$500,000. Proof of insurance shall be in the form of a certificate of insurance. Policy expiration or cancellation will immediately nullify the Agreement for Tow Services between the Tow Carrier and the City. The Tow Carrier's insurance policy shall provide for not less than 30 days written notice to the City in the event the insurance policy is canceled or is due to expire; d. Every tow truck which responds to calls for service within the City pursuant to this Agreement shall be clearly marked on both sides of the cab with the name and telephone number of the Tow Carrier which operates the truck; and e. The Tow Carrier shall not display any sign or engage in any advertisement indicating an official or unofficial connection with the City or Department of Motor Vehicles. 5. Storage of Vehicles: Pursuant to the requirements hereof, a Tow Carrier shall transport vehicles or to the Tow Carrier's facility for storage and shall meet the following minimum requirements: a. Have a minimum storage space for 200 vehicles with a minimum of twelve inside spaces; outside storage lots must be adequately lighted; b. Provide for secure inside evidence storage and have the ability to provide secure in-door storage for vehicles upon request of the Police Department; C. Have an attendant on call twenty-four(24)hours a day,seven days a week at place of business; d. Have no more than two telephone numbers listed with any City department; e. Store towed vehicles in a safe and protected space where the vehicles and their contents will not be accessible to thieves nor be damaged by activity in the Tow Carrier's establishment or from the elements or by vandals; no vehicles shall be left parked or stored on the public streets at any time; in no event shall the City be liable for any theft, vandalism or damage occurring to any such vehicle or its contents; f. Post a tag on the windshield on all cars ordered impounded by the City; g. Furnish each owner with an itemized billing and collect towing and storage charges on each stored vehicle from the owner; in no event shall the City be liable for any such charge; 4834-4847-6167.1 4 h. Confirm that the CHP Form 180 prepared by PD is accurate after PD inventories the contents.;p-prior to taking possession of any vehicle,and immediately before release, digitally photograph in a manner which shows the date and time on the photograph the inside and outside to document condition of vehicle and its contents and retain such photograph in a secure location for at least one year i. Release no vehicle without first having obtained a release from the City to do so; j. Have adequate equipment to handle calls from the City and storage of motor vehicles; k. The Tow Carrier shall operate from a location within the incorporated boundaries of the City, and all of the facilities necessary to comply with the provisions of this Agreement shall be located within the incorporated boundaries of the City; 1. The Towing Carrier shall be responsible for the security of vehicles and property at the place of storage. At a minimum, a fenced or enclosed area shall be provided. The Towing Carrier is responsible for the reasonable care,custody,and control of any property contained in towed or stored vehicles; M. The Towing Carrier may not remove property from an impounded vehicle. The Towing Carrier shall obtain approval from the City prior to the removal of any property from a stored vehicle and shall provide a receipt,with a copy placed in the stored vehicle.The requirement to obtain approval from the City prior to the removal of property may he excused by the City if it is determined that proper safeguards and procedures are utilized by the Towing Carrier; n. Upon approval from the City, the Towing Carrier shall release personal property from a stored vehicle at the request of the vehicle registered owner or agent; o. There shall be no charge for the release of personal property during normal business hours. Towing Carrier may charge an after- hours release fee for property released after normal business hours, consistent with the after-hours vehicle release provisions; p. Personal property is considered to be items which are not affixed to the vehicle. Personal property from a stored vehicle shall be released upon request of the vehicle registered owner or agent. Responses are mandatory on weekends, holidays, and outside normal business hours, provided the vehicle's current registered owner or owner's authorized agent are available for return of personal property. Payment for an after-hour release of property may be required at the time of the release; Order; q. Cargo shall be released upon demand of the carrier or pursuant to a court r. The primary storage facility shall normally be at the same location as the business address. If not at the same location, there shall be no charge for any additional distance traveled to and from a secondary location.The vehicle and/or personal property shall he released at 48344847-6167.1 5 the primary storage facility or place of business upon request of the registered owner or a person having a legal entitlement to the vehicle and/or property; S. Prior to the utilization of new storage facilities that were not listed on the application for rotation tow listing,the Towing Carrier shall furnish the address and obtain the City's approval; t. Secondary storage facilities shall be located reasonably close to that main business office; U. All storage facilities shall meet all legal requirements for such facility; V. Towing Carrier's place of business shall have a sign that clearly identifies it to the public as a towing service. The sign shall have letters that are clearly visible to the public from the street. The sign shall be visible at night; W. For the purpose of this Agreement for Tow Services,"normal business hours" shall not be less than 8 a.m.to 5 p.m.,Monday through Friday,except for the following recognized holidays:New Year's Day,Martin Luther King Day,Presidents'Day,Memorial Day,Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, day after Thanksgiving Day, and Christmas Day, and i X. Business hours shall be posted in plain view to the public.Offices staffed with only one employee may be closed for one hour at lunch.A sign shall be posted with the reason for closure.The sign shall have a phone number where a request will result in an immediate response to release property or vehicles. Response to the office shall be within the time frame required for tow response. 6. Towing Equipment: Tow vehicles shall be rated at a minimum of 14000 GVWR. (Class A) a. Tow Truck and Car Carver Classifications: Tow truck and car carrier classifications are based on the truck chasses Gross Vehicle Weight Rating (GVWR) and the classification system used by the American Trucking Association(ATA)and truck manufacturers; b. Towing Limitations: i. The total weight of the truck, including the lifted load, shall fall within the GVWR and not exceed either the Front Axle Weight Ratings (FAWR) or Rear Axle Weight Ratings (RAWR); ii. All tow trucks and car carriers shall be equipped and in compliance with the most recent electronic version of the California Highway Patrol Tow Truck Inspection Guide(CHP 234B); and, iii. The truck must meet all applicable state and/or federal standards; 4834-4847-6167.1 6 C. Identification Labels: Each piece of towing equipment shall have a label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number,model, and rated capacity; d. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can life in a winching mode,when the boom is static at a 30 degree elevation with the load lines vertical and the lifting cables sharing the load equally,measured with a live load(weight or load cell); i. The structural design of the recovery equipment must have a higher load capacity than the performance ratings; ii. Winches shall conform to or exceed the specifications set forth by the Recovery Equipment Rating (SAE) Handbook, SAEJ706; and, iii. All ratings for cable and chain assemblies are for the undamaged assembly condition. All cable and chain assemblies should be the same type, construction,and rating as specified by the original equipment manufacturer (OEM) for the equipment; and e. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. 7. Per Call Rotation System a. The City shall establish a per call rotation system of qualified Towing Carriers who have entered into Agreements with the City for the performance of towing services in response to calls from the City. All departments of the City shall comply with the rotation system. b. Towing Carrier shall comply with and qualify under all the minimum requirements set forth in this Agreement as a condition precedent to being eligible to be placed on the rotation list as follows: i. The City shall maintain a rotation tow list for Class A tow trucks to ensure an equitable distribution of calls. Nothing in this Agreement for Tow Services shall prohibit the City from requesting a specific Towing Carrier when,in the on scene supervisor's opinion, the necessary resources to clear a hazard as expeditiously as possible are not available from the Towing Carrier currently at the top of the rotation tow list. If the City needs a tow vehicle that exceeds that of a Class A tow truck,the City may,in its discretion,contact a Towing Carrier with the size of tow truck needed. In such an instance,the Towing Carrier selected would be the next Towing Carrier on the list which has the qualifications (equipment, skills, timelines, etc.) to provide the required service. After the request,the selected Towing Carrier would then go to the bottom of the rotation tow list. Towing Carriers on the same list that were 4834-4847-6167.1 7 by-passed would remain in the same order until their selection for a rotation tow for which they are qualified; ii. A call to a Towing Carrier shall constitute one turn on the list and the Towing Carrier shall be moved to the bottom of the list. This includes when the Towing Carrier fails to answer the phone, is unable to respond,is unable to perform the required service, refuses to respond or provide service, or is canceled due excessive response time. If it is determined that the Towing Carver is not needed and is canceled by the City,up to and including arrival at the scene and standby time which does not result in a tow,there shall be no charges and the Towing Carrier will be placed back at the top of the list; a) If the Towing Carrier is cancelled by the vehicle's registered owner or agent prior to the Towing Carrier taking possession of the vehicle, there shall be no charges for towing. The Towing Carrier shall immediately contact the City and advise them of the cancellation. The Towing Carrier will then be placed back at the top of the list; and, b) If service, other than towing, recovery, and load salvage,has begun and is canceled by the vehicle's registered owner or agent, the Towing Carrier may charge one-half of the regular hourly service charges for the time expended on the call. For purposes of cancellation, service begins when physical work on the vehicle has begun,not the response.No lien shall arise for the service unless the Towing Carrier has presented a written statement to the vehicle's registered owner or agent for the signed authorization of services to be performed. The Towing Carrier shall not attempt to take possession of the vehicle in order to establish a lien for any non- towing services performed, or begun and subsequently canceled, when not entitled to such lien by law; iii. If two or more Towing Carriers are called to the same incident, distribution of the vehicles shall be at the discretion of the on-scene supervisor; iv. The Towing Carrier shall respond to calls 24 hours a day,seven days a week. Between 6:00 a.m. and 6:00 p.m., the response time shall be no more than twenty(20)minutes. Between 6:00 p.m. and 6:00 a.m.the response shall be no more than thirty(30) minutes. The Towing Carrier shall respond with a tow truck of the class required to tow the vehicle specified by the City. The Towing Carrier shall advise City dispatch,at the time of notification,if they are either unable to respond or unable to meet the maximum response time. If,after accepting the call,the Towing Carrier is unable to respond or will be delayed in responding, the Towing Carrier shall immediately notify the appropriate City department. The Towing Carrier shall not assign any calls to other Towing Carriers; 48344847-6167.1 8 a) A failure to respond to perform the required towing or service and/or repeated failures to meet the maximum response time requirements shall constitute a failure to comply with the terms and conditions of this Resolution and the Agreement for Tow Services; b) The City may take immediate disciplinary action for any violation of the requirement to respond within the maximum response time; and C) When a Towing Carrier will be temporarily unavailable to provide services due to a pre-planned or scheduled activity, the Towing Carrier shall notify the City at least 24 hours prior to the date that services will be unavailable, noting the times and dates of the unavailability; V. Towing Carriers shall have a minimum of three (3) verifiable years of for hire towing experience, as an owner or principal,prior to the final filing date of an enrollment period in order to qualify for a rotation tow listing; a) Towing Carriers and owners who do not meet the three year verifiable for-hire towing experience may be considered for a position on the City rotation tow list if a full-time manager who possesses the required tow management experience is employed by the Towing Carrier.An owner/Towing Carrier who releases vehicles, completes lien sale paperwork, and other tow business related documents for three years in the Towing Carrier, with the qualified manager, will fulfill the three years for-hire towing experience requirement; vi. To the extent applicable for stored vehicles, Towing Carrier shall give or cause to be given written notice to the registered and legal owners of each vehicle which is towed in conformity with the authorization and requirements of this Agreement concerning the fact of such towing,the place at which such vehicle is stored and the imposition of charges for towing,storage and related services whenever the Towing Carrier knows or is able to ascertain from the registration records in the vehicle or from the registration records of the Department of Motor Vehicles the name and address of the registered and legal owners. The notice shall be given ten (10) days from the date of the towing of the vehicle by the Towing Carrier. SBPD shall be responsible for such notice for impounded vehicles; vii. The Towing Carrier shall post in its office a list of rights of the owner of the vehicle under this Agreement for Tow Services. The rights are set forth on Exhibit E to this Resolution; and 4834-4847-6167.1 9 viii. A stored vehicle shall be released to the registered owner upon presentation of the registration and valid proof of identification (as provided in Vehicle Code Section 22860.3)and payment of all towing and storage charges If the Towing Carrier does not release the vehicle as required by this subsection upon presentation of registration and valid proof of identification and payment of all charges, storage charges shall cease on the date of presentation of the documentation and payment of the accrued charges. 8. Compensation for Tow Services:Tow Carrier shall charge for services on calls by the City in an amount not to exceed ten ($10) above the hourly rate set by the California Highway Patrol. Tow Carrier is responsible for collection of all such fees and charges. a. The rate for towing shall be computed from portal to portal. Time aqx dad shall be charged at a rate not to exceed the hourly rate. Time expended in excess of the minimums shall also be at the hourly rate in no more than one-minute increments. There shall be no additional charges for mileage, labor, etc: i. The Towing Carrier may charge up to a thirty-minute minimum per call for any service or tow which is performed when the vehicle operator or agent is present and the vehicle is not stored at the discretion of an officer; and, ii. The Towing Carrier may charge up to a one-hour minimum per call on responses which result in storage of a vehicle at the direction of an officer; b. Rates for a service call(out of gas,lockouts,tire changes,etc.)shall be from portal to end of service, and may be at the hourly rate with a thirty-minute minimum. Charges in excess of thirty-minutes may be charged in no more than one-minute increments; and, C. Standby time for tow trucks will begin one(1)hour after receipt of calls from the City, and is defined to mean the time consumed after the first hour in necessary preparations in order to tow the disabled vehicle and in cleaning up the immediate surrounding area. 9. Compensation for Storage: Tow Carrier shall charge for services for storage at the storage rate set by the California Highway Patrol for the San Bernardino area. Tow Carrier is responsible for the collection of all such fees and charges. a. Fees for inside storage shall be charged only when inside storage is requested by the City, registered owner, legal owner, insurance company, or when the inside storage can otherwise be justified by the Towing Carrier; b. The Towing Carrier shall display in plain view at all cashiers stations,a sign as described in Section 3070 of the Civil Code. , disclosing storage fees, lien release fees, and charges in force, including the maximum storage rate; 4834-4847-6167.1 10 c. Vehicles stored 24 hours or less shall be charged no more than one day storage; and, d. Storage of vehicles in combination may be charged a per vehicle rate except for dollies and con-gear. Dollies and con-gear may be charged a storage rate not to exceed Class A storage fees; e. The charge for after-hours release shall be no more than one-half the hourly rate, and shall only be allowed on weekends, holidays, and outside normal business hours; f. The approved schedule of rates charged by the Towing Carrier shall be available in the tow truck, and shall be presented upon demand to the persons for whom the Tow Services were provided,their agent, or any officer at the scene; g. Rate requirements represent the maximum a Towing Carrier may charge on a City call. A Towing Carrier is not precluded from charging less when deemed appropriate by the Towing Carrier. These requirements shall not be construed as requiring a charge if a Towing Carrier would not normally charge for such service; h. Towing Carrier or employee shall not refer to any rate as required or set by the City; i. In the event that a towed vehicle is forfeited by the owner in accordance with Section 14607.6 of the California Vehicle Code, the proceeds of the sale of the vehicle shall be distributed pursuant to said section of said Code; and j. The Towing Carrier shall accept all guaranteed forms of payment including, without limitation,money orders,certified checks,debit cards and all widely accepted credit cards. There shall be no surcharge for the use of a credit card. If the form of payment cannot be accepted by the Towing Carrier due to any failure by the Towing Carrier or Towing Carrier's payment processing equipment, Towing Carrier shall not charge storage fees beyond date of such failure. 10. City Fees and Franchise Fees. In addition to the amounts charged vehicle owners, Tow Carrier shall pay the following fees to the City in the manner set out here. a. Impounded Vehicles:Registered Owner shall pay to the City an administrative release fee of$349 per vehicle towed, impounded and thereafter stored; b. Stored vehicles: There shall not be a fee charged for stored vehicles based upon the City's determination that such fees most often would be charged to the victims of crimes(auto theft) or accidents; c. Franchise Fee: Tow Carrier shall pay the following franchise fees per vehicle towed under this Agreement (collectively"vehicle) during the initial term of this Agreement and shall not be passed through to vehicle owners in any manner: 4834-4847-6167.1 11 {9 { Year 1 (effective date of Agreement, 2011,through June 30, 2012) - $70.00/vehicle Year 2 (July 1, 2012 through June 30, 2013) -$72.10/vehicle Year 3 (July 1, 2013 through June 30, 2014) - $74.25/vehicle Year 4 (July 1, 2014 through June 30, 2015) - $75.50/vehicle Year 5 (July 1, 2015 through June 30, 2016) - $79.00/vehicle Such franchise fees may be adjusted by the City after the initial 5-year term hereof; d. Verification of Tows and Payment of Franchise Fees: By the 15th of each month, Tow Carrier shall submit to the Police Department a list of all vehicles towed under this Agreement during the previous calendar month,including but not limited to owner's request tows. The list shall be in a format acceptable to the Police Department and shall include the case number, vehicle license plate number and vehicle identification number. At the same time as the list is provided, Tow Carriers will remit franchise fee payment to City for the vehicles towed during the previous calendar month. Any amounts not paid by the 15th of the following month shall bear interest at the rate of 10%per annum, simple interest, compounded daily until paid; and e. City fees (including but not limited to the list prepared) are subject to audit and verification as set out herein whether as part of an annual review or otherwise. 11. Employees: a. The Towing Carrier shall insure that tow truck drivers responding to calls initiated by the City are qualified and competent employees of the Towing Carrier's company. The Towing Carrier shall ensure that the tow truck drivers are trained and proficient in the use of the tow truck and related equipment, including, but not limited to, the procedures necessary for the safe towing and/or recovery of the various types of vehicles serviced through City rotation. Tow drivers shall perform all towing and recovery operations in the safest and most expedient manner possible. Tow truck drivers shall be at least 18 years of age and shall possess the proper class license and endorsements for the towed and towing vehicle; b. The Towing Carrier shall maintain a current list of drivers; C. All tow truck drivers and owner/Towing Carriers shall be enrolled in the Pull Notice Program; i. Upon the addition of new drivers, a Towing Carrier will be granted a maximum of 30 days to enroll drivers in the Pull Notice Program; ii. Pull Notices shall be kept on file, signed, and dated by the Towing Carrier; and, iii. The City may require a Towing Carrier to provide copies of Pull Notice Reports to the City; 4834-4847-6167.1 12 d. The Towing Carrier,or Towing Carrier's employees responding to a call,shall perform the towing or service required for which they were called unless the requested equipment is inadequate for the service to be performed; and, e. Only the tow truck personnel and equipment requested shall respond to the City call. A Towing Carrier shall not respond to a City call assigned to another Towing Carrier unless requested to do so by the City; i. This shall not preclude the Towing Carrier from responding to an incident to ascertain if additional assistance or equipment is required.There shall be no additional charge for any personnel or equipment that is not necessary to perform the required service; ii. There may be times when the Towing Carrier assigned the initial call may require the assistance of an additional Towing Carrier at the scene. The Towing Carrier assigned the initial call may,subject to prior Agreement with the City and with the concurrence of the on scene supervisor, request a specific Towing Carrier for assistance. The request shall be routed to the additional Towing Carrier through the City; and, iii. There may be times when a Towing Carrier, who was not called to a scene, comes upon a collision scene where a vehicle or vehicle are blocking a roadway and an officer requests assistance in clearing the roadway.In such a case, the Towing Carrier may be requested to move the vehicle to a safe location,as directed by the officer, and leave it. There shall be no charge for this assistance and the assistance provided shall not change the Towing Carrier's place in the rotation. f Employees shall he properly trained to conduct business transactions related to towing, storage, and release of vehicles/property; 9- Uniforms: While engaged in tow operations hereunder, City rotation tow drivers shall wear an identifiable uniform shirt displaying the Tow Carrier's and driver's names;and h. Safety Vests: City rotation tow drivers shall wear a safety vest and/or reflectorizing clothing,as well as any other safety clothing required by and meeting CalOSHA and Occupational Safety and Health Administration (OSHA)requirements. 12. Complaint Procedure: All City related tow service complaints from the public received by the City against a Towing Carrier or Towing Carrier employees will be accepted and investigated in a fair and impartial manner pursuant to procedures utilized by the Police Department or as set out herein. The Towing Carrier will be notified of the results of any investigation. 13. Records: Each month, Towing Carrier shall submit a list of all vehicles towed the previous month, including license plate numbers and vehicle identification numbers, and shall identify clearly all impounded vehicles towed to its storage facility. 4834-4847-6167.1 13 a. The Towing Carver shall maintain records of all Tow Services furnished. The records will be maintained at the Towing Carrier's place of business. Invoices shall at a minimum include a description of each vehicle,nature of service,start time,end time,location of call,itemized costs of towing and storage, the tow truck driver's name, and truck used; b. At the Towing Carrier's primary office,the Towing Carrier shall also maintain business records relating to personnel, insurance, personnel taxes, payroll, applicable operating authorities, local operating authorities, lien sale actions, Federal Communication Commission licensing, and non-City I tows; C. The City may inspect all Towing Carrier records without notice at any time during normal business hours and during the annual reviews; d. Towing Carrier shall permit the City to make copies of business records at its place of business, or to remove business records for the purpose of reproduction. The City shall provide a receipt for any(original) records removed from the place of business; e. Records shall be maintained and available for inspection for a period of four (4)years after the termination of this Agreement for Tow Services; and, f. Failure of the Towing Carrier to comply with the inspection requirements shall be cause for suspension and/or termination of this agreement. 14. Audit: a. Upon reasonable advance written notice, City or its designee shall have the right to review and audit the books of Towing Carrier's place of business and during business hours. In the event that such audit shows a 5% or greater variance in revenues owing to the City by Tow Carrier,the following amounts shall be owing by Tow Carrier to City: 1)the amount determined to be owing as a result of the audit; 2) simple interest at the rate of 10% on the amounts owing, compounded daily from the due date; 3) both 1) and 2) shall be paid within 10 calendar days of notification of the deficiencies; and 4)Tow Carrier shall pay the reasonable costs of the audit based upon invoices provided by City; and b. In the event that an audit shows an 10%or greater variance in revenues owing to the City, the following amounts shall be paid to the City by that Tow Carrier: 1. the amount owed as a result of the audit; 2. simple interest at the rate of 10%on the amount owed,compounded daily from the due date; 3. the amount owed including interest shall be paid within 10 calendar days of notification of deficiencies; and 4. pay the reasonable costs of the audit; 4834-4847-6167.1 14 c. In the event the audit determines a 15%variance in revenues owing to the City, such result may be ground for action under Section 17 herein. 15. Assignment: Any assignment of this agreement due to change in ownership requires the approval of the City Council to continue on the tow rotation.Any change of ownership must be reported to the Police Department in writing within seven (7) days of such change.Thereafter, Police Department will review the proposed new owner(s) under the standards set out in this Agreement and procedures the Police Department adopts therefor. Within 30 days of the date of notification of the change of ownership, the Police Department shall report the results of its review to the City Council,which shall approve or deny the assignment of this Agreement to the new owner. In the event the City Council denies the assignment,the Agreement shall terminate as of the date of such denial and the Police Department shall initiate procedures to replace the Tow Carrier in the towing rotation. Such termination is not subject to the appeal provisions hereof or of Resolution No. 2005-286. 16. Standards for Performance:While involved in City rotation tow operations or related business, the Tow Carrier and/or employees shall refrain from any acts of misconduct including,but not limited to, any of the following: a. Rude or discourteous behavior; b. Lack of service, selective service, or refusal to provide service which the Towing Carrier should be capable of performing; C. Any act of sexual harassment or sexual impropriety; d. Unsafe driving practices; e. Exhibiting any objective symptoms of alcohol and/or drug use; f. Appearing at the scene of a City rotation tow call with the odor of an alcoholic beverage emitting from the Tow Carrier's employee's breath. The Towing Carrier employee shall submit to a preliminary alcohol screening test upon demand of the City; g. Should the filing of criminal charges be a possibility,the City will conduct the investigation to conclusion or assist the lead investigation agency and, if warranted, request prosecution; h. Traffic Violations; i. In the event of a minor traffic violation by a tow truck driver which is known by the City,the Towing Carrier shall be advised of the violation by the City. The Towing Carrier will be granted the opportunity to take necessary steps to ensure that the driver complies with the law. Any subsequent traffic 4834-4847-6167.1 15 violations may be cause for disciplinary action against the Towing Carrier and/or the involved employee(s); ii. Any flagrant traffic violation maybe cause for immediate disciplinary action against the Towing Carrier and/or the involved employee(s); and, iii. The provisions contained in any compliance with law provisions in this Agreement do not preclude the City from taking appropriate enforcement or administrative action for any violations of law. Complaints for violations of the law not normally investigated by City will be referred to the agency with investigation jurisdiction; i. Any conviction of the Towing Carrier or employee involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of violence, a drug-related offense, felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug, or moral turpitude while involved in a City rotation tow call shall be cause for removal of the Tow Carrier from the list of current City rotation, denial of Towing Carrier application, or termination of this Agreement; j. A Tow Carrier or employee arrested/charged for a violation involving any of the above crimes maybe suspended until the case is fully adjudicated.Records of violations shall be retained by the City for at least 36 months; k. A violation of the equipment requirements related to safety shall be cause for immediate suspension of the Tow Carrier from the tow rotation.The suspension will remain in effect until the period of suspension is completed and the City has conducted an inspection and concluded the Tow Carrier is in compliance; 1. A violation of the GVWR and safe loading requirements of a tow truck may be cause for immediate suspension of the Tow Carrier. This includes exceeding the tow truck's GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck's unladen front axle weight on the front axle when in tow; M. A violation of intentionally overcharging or a pattern of overcharging or of non-payment of City fees shall be cause for suspension of the Tow Carrier. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has presented proof to the City that reimbursement has been made to the aggrieved customer; n. City personnel shall not be offered gratuities,and requests for gratuities shall not be honored by Tow Carriers, employees, or associates of the Tow Carrier. A violation of this section shall be cause for suspension or termination; o. Failure of the Tow Carrier to satisfy a court order mandating reimbursement to the vehicle owner or property owner for the damage or loss which occurred while the vehicle was in the Towing Carrier's custody will result in a suspension. The suspension will remain in effect until the period of suspension is completed and the Towing Carrier has presented proof of the reimbursement; 4834-4847-6167.1 16 P. Failure of the Tow Carrier to comply with the inspection requirements of this Agreement for Tow Services shall result in a suspension.The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has complied with the inspection requirement; q. Failure of the Tow Carrier to send tow truck drivers who are qualified and competent employees on City calls shall be cause for suspension. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has presented proof to the City that the driver is qualified and competent; and, r. Failure of the Tow Carrier to maintain the minimum insurance requirements set forth in the Agreement for Tow Services will immediately nullify the Agreement for Tow Services. The Tow Carrier will be subject to an additional suspension for failure to notify the City in advance of the insurance policy expiration or cancellation. 17. Suspension and Termination for Cause: The City shall take disciplinary action against Tow Carriers for violations investigated and confirmed or sustained.Unless otherwise noted,the City shall determine the period of suspension.The City shall retain discretion regarding the length of any suspension imposed pursuant to the terms and conditions of this Agreement for Tow Services. a. Violations of the terms and conditions of this Agreement maybe cause for disciplinary action against the Tow Carrier as follows;in lieu of termination,the City may impose additional suspension for longer periods, if deemed appropriate; i. First violation within a 12 month period- letter of written reprimand; No changes to these per PD; ii. Second violation within a 12 month period- 1 to 30 day suspension; iii. Third violation within a 12 month period - 60 to 90-day suspension; and, iv. Fourth violation within a 12 month period-termination of the Agreement for Tow Services. b. Violations of the terms and conditions of this Agreement that are subject to suspension for the first violation are categorized as major violations.Any subsequent or continuing major violation may be cause for termination; i. When considering punitive action for a major violation ofthe Agreement,the City may take into consideration all major and minor violations that occurred within 36 months prior to the date of the current violations; and, ii. Termination shall be invoked if, in the City's sole judgment, continued participation in the Rotation Tow Program by the affected Towing Carrier 4834-4847-6167.1 17 may result in a hazard to public safety and/or welfare, or any conviction of the Towing Carrier or employee involving a stolen or embezzled vehicle, fraud related to the towing business,stolen or embezzled property,a crime of violence,a drug-related offense,felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug, or moral turpitude while involved in a City rotation tow call; C. Nothing herein shall be deemed to prohibit the City from immediately suspending any Towing Carrier or employee whose conduct,in the opinion of the City,is deemed to be a danger to the motoring public or who has engaged in conduct constituting a flagrant violation of the Agreement for Tow Services; d. Administrative Hearing: In the event the City serves the Towing Carrier with Disciplinary action, the Towing Carrier may request a hearing within seven calendar days by submitting a request in writing to the Traffic Sergeant at the Police Department. If a hearing is requested, it shall be held as soon as practical. The hearing shall be conducted by the Traffic Sergeant or designee, and the Tow Carrier shall be entitled to present all relevant facts and circumstances in support of the Tow Carrier's position.The Tow Carrier shall be further entitled to present testimony of at least one qualified person.The Tow Carrier shall be notified in writing of the Traffic Sergeant's decision(s) within ten business days of the date of completion of the hearing; e. Appeal from Administrative Hearing:Following a hearing,if the Tow Carrier is dissatisfied with the Traffic Sergeant's decision(s),the Tow Carrier may appeal by submitting a request in writing to the City Clerk, pursuant to Municipal Code Chapter 2.64, and paying any applicable fees; f. A suspension shall not take effect until the hearing and appeal process has been exhausted, with the exception of Tow Carriers whose conduct deemed to be a danger to the motoring public or who continue to violate the terms and conditions of this Agreement for Tow Services. If a Tow Carrier fails to request a hearing or appeal,the action taken by the,City shall be final, and the suspension shall take effect upon written notification to the Tow Carrier by the City; and g. A terminated or suspended Tow Carrier, and/or the Tow Carrier Business owner at the time of the suspension or termination shall not be eligible for a rotation listing for the duration of the suspension or termination.This provision applies to the Tow Carrier working in any capacity within any tow business or operating any tow business,and to the tow business,even if operated under new ownership.This provision does not apply to Section 16 regarding termination due to a change in ownership. 18. Notice: Any notice to be given pursuant to this Agreement by either party to The other shall be given by personal service or shall be deemed given when deposited with the United States Postal Service, first class, postage prepaid, and addressed as follows: 4834-4847-6167.1 18 To the City: City Manager 300 North"D" Street San Bernardino, CA 92418 To Towing Carrier: Big"Z"Autoworks, Inc. 274 N. I Street San Bernardino, CA 92410-1841 19. Miscellaneous: This Agreement represents the entire Agreement between the City and the Tow Carrier and fully supersedes any and all previous Agreements enter into by and between the City and Tow Carrier. This Agreement may be amended only in writing agreed upon by all affected Tow Carriers.No waiver of any term or condition of this Agreement shall be a continuing waiver thereof. 20. Attorneys' Fees: In the event of litigation to enforce this Agreement, the prevailing party in such litigation shall be entitled to reasonable costs and attorneys' fees, as determined by the Court. As used here, "attorneys' fees" includes the costs, salary and expenses of the City Attorney and members of his office. IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the day and date first above shown. CITY OF SAN BERNARDINO By: City of San Bernardino Attest: By: TOW CARRIER: BIG"Z" AUTOWORKS, INC. By: Print Name: Approved as to Form: JAMES F. PENMAN City Attorney By: 4834-4847-6167.1 19 i I i I ' 9 's i 9 3 F Y EXHIBIT"A" EXHIBIT A TOW CARRIERS M NIM[JM REQUIREMENTS (EFFECTIVE FOR TOW CARRIERS ENTERING THE CITY'S TOW ROTATION AFTER THE EFFECTIVE DATE OF THIS RESOLUTION) A. Have a minimum outside storage space of 65,000 square feet capable of storing at least 200 vehicles. B. Minimum inside storage space of 2000 square feet capable of storing at least five (5) automobiles. C. Security fencing around the entire outside storage space. D. Monitored alarm system-If the outside storage space is not alarmed,the inside storage must be. E. Minimum of three Class A tow trucks. F. Current City Business License. 0. Certificate of Occupancy. H. Hazardous Material Handler's Permit. I. Have either an inside or outside customer waiting area for at least five customers of 100 square feet. The outside waiting area shall exclude parking and landscape areas. J. Have a minimum of three years of for-hire towing experience as an owner/principal or have a qualified manager with the experience. K. Have an attendant on call twenty-four (24) hours a day, seven days a week at place of business. L. Have no more than two telephone numbers listed with any City department. M. Store towed vehicles in a safe, lighted and protected space where the vehicles and their contents will not be accessible to thieves nor be damaged by activity in the carrier establishment or from the elements or by vandals;no vehicles shall be left parked or stored on the public streets at anytime;in no event shall the city be liable for any theft,vandalism or damage occurring to any such vehicle or its contents. N. Post a tag on the windshield of all cars ordered impounded by the City. O. Collect all towing or hauling and storage charges on each vehicle from the owner; in no event shall the city be liable for any such charge. 1 P. Whenever a vehicle has been involved in an accident or a traffic violation, and the owner or someone delegated by him is present and is capable of removing the vehicle from the street with reasonable dispatch, and the vehicle is not needed for criminal evidence, City and/or towing carrier shall permit the owner or his delegate to remove the vehicle or call a towing company of his or her own choice to remove the same;provided, however, that if the street cannot be cleared for safe public use with reasonable dispatch by the above method, and in all situations other than above set forth, a towing carrier from the top of the rotation list will be called by the City. Q. Furnish each owner with a My itemized billing. R. Immediately after each towing operation, make a towing slip with the contents of each vehicle placed in his or her care itemized thereon as verified by the officer ordering the same and make the slip available to the City on request. S. Release no impounded vehicle without first having obtained a release from the City to do SO. T. Agree to a rotation system established by the City. U. Comply with all rules, regulations and laws of the State of California, County of San Bernardino and City of San Bernardino. V. Have adequate equipment to handle calls from the city, impounds, and storage of motor vehicles. W. The carrier shall operate from a location within the City of San Bernardino,and all of the facilities necessary to comply with the provisions of this resolution shall be located within the City of San Bernardino. X. Carry a broom,trash can and sand,clean and remove broken glass,spilled oil,or gasoline from the area before departing, unless directed to not do so by police officers and/or designated City employees at the scene. Y. Each tow carrier shall maintain insurance pursuant to the requirements set forth below. The City of San Bernardino shall be named as an additional insured on all policies including the workers compensation policies. Tow carriers shall provide an endorsement to each policy showing the City as an additional insured. 1. The operator shall maintain the following minimum levels of insurance from an insurance carrier admitted in California, or admitted in the state in which the operator's business is located, and is authorized to do business in California: a) Minimum Level of Financial Responsibility(as required by Section 34631.5 of the California Vehicle Code) -Bodily injury and property damage with 2 a combined single limit of not less than$750,000 for Class A tow trucks. These minimum standards are to include non-owned and hired auto coverage. b) Uninsured Motorist-Legal minimum, combined single limit. c) On-Hook Coverage/Cargo-Insuring the vehicle in tow with limits based on the size of the tow truck. d) Garage Liability/Garage Keeper's liability - Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than$500,000. 2. Proof of insurance shall be in the form of a certificate of insurance. Policy expiration or cancellation will immediately nullify the Agreement for Tow Services between the carrier and the City. The operator's insurance policy shall provide for not less than 30 days written notice to the City in the event the insurance policy is canceled or is due to expire. Z. Tow vehicles shall be rated at a minimum of 14000 GVWR.(Class A) 1. Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chassis Gross Vehicle Weight Rating(GVWR) and the classification system used by the American Trucking Association(ATA) and truck manufacturers. 2. Towing Limitations: a) The total weight of the track, including the lifted load,shall fall within the GVWR and not exceed either the Front Axle Weight Ratings (FAWR)or Rear Axle Weight Ratings(RAWR). b) All tow trucks and car carriers shall be equipped and in compliance with the most recent electronic version of the California Highway Patrol Tow Truck Inspection Guide(CHP 234B). c) The truck must meet all applicable state and/or federal standards. 3. Identification Labels: Each piece of towing equipment shall have a label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number, model, and rated capacity. 4. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can lift in a winching mode,when the boom is static at a 30 degree elevation with the load lines vertical and the lifting cables 3 sharing the load equally; measured with a live load (weight or load cell). a) The structural design of the recovery equipment must have a higher load capacity than the performance ratings. b) Winches shall conform to or exceed the specifications set forth by the Recovery Equipment Rating(SAE) Handbook, SAE 1706. c) All ratings for cable and chain assemblies are for the undamaged assembly condition. All cable and chain assemblies should be the same type, construction,and rating as specified by the original equipment manufacturer (OEW for the equipment. 5. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. 6. Uniforms: City rotation tow drivers shall wear an identifiable uniform shirt displaying the company and driver's names while engaged in City rotation tow operations. 7. Safety Vests: City rotation tow drivers shall wear a safety vest or reflector'zing clothing, meeting Occupational Safety and Health Administration (OSHA) requirements. AA. The City may grant additional points or deduct points as set forth in Exhibit B to Resolution No. BB. No tow carrier is exempt frommeetinglegal requirements imposed by any city,county,State or Federal laws or regulations. An example of this is the Clean Water Act. 4 i 73 3 .i i 3 1 9 i 3 z 3 8 a i t 3 i 3 f j • 3 S EXHIBIT"B" E3XIBIT "B" Preliminary PP A licadon Review Applications that do not currently meet all of the following minimum qualifications will be rejected and returned to the tow carrier with a cover letter stating the reasons for rejection. Tow Carrier Name Date Internal Use Only Qualification Yes No 1. Meets all standards of the most current city resolution establishing standard criteria for tow corn anies. 2. Tow business office and storage facility located within San Bernardino City limits. 3. Minimum Outside Storage of 200 vehicles,65,000 sq. ft. 4. Minimum Inside Storage of 2,000 sq. ft. 5. Secure, lighted storage facility 6. . Attendant on-duty 24 hours 7. 24 hour service including weekends and holidays 8. Minimum of three certified Class A tow trucks 9. Current City Business license 10. Certificate of Occupancy [ ]Permanent [ ] Temporary 11. Hazardous Material Handlers Permit Current 12. Monitored Alarm System: If outside perimeter is not alarmed then inside storage must be. 13. Minimum inside waiting area of 100 sq.ft. 14. Minimum outside waiting area, excluding parking space and landscaping,of 100 . ft. 15. Operator has three years of verifiable towing experience as an owner or principle, or has a full time manager who vossesses the required experience. 16. Financial Interest in another tow company providing services to the City 17. Prior conviction(s),guilty plea,or nolo contenders plea that excludes tow carrier- Comments U:\Tow stufflApplication Preliminary Review Check List 2-1-01Ldoc 3 i 9 s F EXHIBIT"C" MMIBIT "C" SELECTION PROCESS ATTACHMENT Tow Carrier: Date: Contact Information Agency Name Contact Person Title Telephone# . Date of Contact J Governmental Agency Tow Service History Agency Number of Negative Complaint History Actions #Sustained #Unfounded Revised 7/19/2005 IMIBIT s'C" SELECTION PROCESS ATTACHMENT Each tow carrier shall be awarded a point value for each of the in-depth investigation categories. The points may range from negative values(deductions)to positive values(additions). Meeting the minimum qualifications in a specific category will have a point value of zero. Tow Service History Points Lost Negative Actions are defined as any notice of Total Points Lost disciplinary action by a governmental agency or issuance of a citation that results in sanctions or conviction. 1 - 4=- 5 16-20=-30 5-10=-10 21 -25=-40 11-15=-20 25+ =-50 Government Agency Name Date of Action Summary of Action Business Expiration Date: License Number: Sub-Total Tow Service History Facility Inspection Minimum Outside Additional Outside Space Minimum Inside Additional Inside Space Total Storage Space 10,000-20,000 sq. ft.=+5 Storage Space 1,000-1,500 sq.ft.=+5 Points Required 65,000 sq.& 20,001+sq.&_+10 Required 2,000 sq.ft. 1,501 +sq.ft. =+10 1 Office Area Front of Business Rear-of Business=-2 Unimproved Walkway for customer Location/Access No Obstructions access=-2 0 Staffing/Organization 1 person to 2-4 able to conduct routine business=+2 *Routine business includes the conduct routine 5+able to conduct routine business=+5 release and tale of vehicles' business 0' Cwstomer Inside 100 sq.&minimum=0 Seating for Public access to customer files Wai ' Area 100 additional sq.ft=+2 Customers=+2 =-10 Revised 7/19/2005 i EMBIT "C" SELECTION PROCESS ATTACHMENT Customer Outside 100 sq.ft.of outside Entire Area Covered=+2 Waiting Area waiting area=+2 Some Area Covered=+1 (excluding parking Seating for Customers=+2 and land Security l Fencing No Damaged Areas=0 Yard Motion Beams=+2 *Damage is areas Oat allow Damaged Areas=_g Recorded Video Camera Unintended access to =+5 vdrictea Hazardous Material Proper Storage& Improper Storage!Item Handler Permits Solid=-2;Liquid=-5 0 Tow Trucks Minimum of 3 Certified Additional Certified Cla ss A Class A Trucks Trucks 1-3=+2;4+=+5 R Tow Truck Broken or Damaged Equipment=-1 per item Missing or Non-Useable Equipment Equipment -5 per item squired Equipment 'Specified on Tow Truck bon Guide• Pull Notices On File=0 Missing=-5 per driver Business Records On Site=0 Readily Accessible=+2 Not readily accessible= immediate Reasew emmrds -5 Comments: Subtotal of Tow Service History Points Subtotal of Facility Inspection Points Total Points In Depth Investigation Conducted By: Print Name and Rank Reviewed/Approved By: Print Name and Rank Revised 7/19/2005 EXHIBIT "D" RBHIBIT City of San Bernardino Selection Process of Tow Carriers The attached documents are samples of those the SBPD proposes to use when positions become available for tow carriers to provide service to the City of San Bernardino. The documents are in order in which they will be used during the selection process. I. The SBPD gives notice of an available tow carrier position via advertisement in a local newspaper,Channel 3 posting and notice to local Chamber of Commerce. 2. Interested tow carriers request application packages through the SBPD Traffic Unit. 3. The SBPD Traffic Unit mails or gives an application package to the requesting tow carrier: a) Letter acknowledging request for package b) Tow Rotation List Application/Copy of current Agreement For Tow Services 4. Tow Carrier reams completed application by due date for consideration. 5. The SBPD reviews the returned application to ensure that the applicant meets the minimum criteria: a) Criteria met,letter sent to tow carrier b) Criteria not met,letter sent to tow carrier 6. Application package assigned for completion: a) Contact Government agencies to whom tow carrier provides service b) Business licensing c) Certificate of occupancy d) 'Haunt handlers permits 7. Conduct inspection: a) Licensing/Hazinat requirements compliance b) Rate posting compliance c) Tow Service Agreement compliance d) Total point value calculated from selection process attachment 8. Completed application and inspection packages given to City Council for selection of tow carrier(s)with rankings based on total points. 9. Required documents filed for formal entry of an Agreement For Tow Service with selected tow carrier: a) Request for Council Action b) Drafted Resolution c) Agreement for Tow Services between the City of San Bernardino and tow carrier Q EXHIBIT"E" RIGHTS OF PERSONS WHOSE VEHICLES ARE TOWED AT THE REQUEST OF THE CITY OF SAN BERNARDINO (TO BE POSTED IN VISIBLE LOCATION IN TOWING CARRIER'S OFFICE} Tow operators who tow vehicles at the request of the City of San Bernardino operate under an Agreement for Tow Services with the City. The agreements require the tow operators to comply with certain rules and provides the following rights to the owner of a towed vehicle. The owners'rights are summarized as follows: 1. Notice to the registered and legal owners of the vehicle within 10 days of being towed of location of vehicles and charges. 2. Normal business hours are 8:00 a.m. to 5:00 p.m. Monday through Friday except recognized holidays of New Year's Day,Martin Luther King Day,Presidents'Day,Memorial Day, Independence Day,Labor Day,Veteran's Day,Thanksgiving Day and Christmas Day. 3. Business hours to be posted for viewing by the public. 4. Tow operators shall respond to after hours release within thirty minutes. 5. Tow operators shall accept all guaranteed forms of payment and widely accepted credit cards without a surcharge. 6. If a stored or impounded vehicle is not released once proper documentation and identification are provided and all charges paid,further storage charges shall cease as of the date of presentation and payment. 7. Itemized invoices shall be provided. 8. Right to file a complaint with the City of San Bernardino. AGREEMENT FOR TOW SERVICES (EXISTING TOW CARRIERS) THIS AGREEMENT FOR TOW SERVICES(this"Agreement")is entered into this fourth day of April, 2011, by and between the CITY OF SAN BERNARDINO ("City") and Wilson Towing LLC (Tow Carrier"or"Towing Carrier") effective April 4, 2011 (the"Effective Date"). RECITALS A. The Vehicle Code authorizes City regulation of involuntary towing and storage with appropriate compensation therefore, which compensation covers the reasonable cost (including direct and indirect overhead) as well as franchise fees; and B. City has adopted Resolution No.2005-286,as amended by Resolution No.2008-347, "Establishing Standard Criteria for Companies to Provide Tow Services"and the Exhibits attached thereto; C. The Resolutions cited above presently provide for a towing rotation franchise within the City for the more efficient regulation and operation of tow companies with the ratio of one tow company chosen for the rotation for each 35,000 people within the City; D. The City and the six (6) Tow Carriers currently on the rotation have agreed that it promotes ease of operation to restate such existing requirements in one Agreement which reorganizes the proposed model contracts for existing and new Tow Carriers as those proposed contracts were set out in Resolution 2005-286 and that this Agreement contains the same provisions regarding operation of the tow rotation and requirements for Tow Carriers; E. City shall not pursue the establishment of an impound yard. F. In consideration Tow Carriers have agreed to the revised or additional provisions including but not limited to those regarding franchise payments and audits; G. This revised and updated Agreement,upon execution by each of the six(6)existing Tow Carriers, shall supersede in their entirety any and all prior agreements between the City and each Tow Carrier; and H. City finds and Tow Carriers agree that the compensation and other provisions of this Agreement meet the requirements of all applicable laws. NOW,THEREFORE, the parties hereto agree as follows: 1. Recitals. The Recitals set out above are true and correct. 2. Provision of Tow Services by Tow Carrier 4834-4847-6167.1 j a. Term; Extension at City's Option: This Agreement shall commence on the Effective Date for a term of five years unless sooner terminated hereunder. This Agreement maybe extended as to the Tow Carrier upon the City's sole determination that Tow Carrier is in compliance with all terms and conditions hereof. Such an extension shall be for an additional 5years. There is no promise and should be no expectation of such extension. Failure to grant such extension shall result in termination of this Agreement, which termination is not subject to the appeal provisions hereof or of Resolution No. 2005-286. At the end of the term of the Agreement, whether or not extended,there shall be no more extensions of this Agreement and Tow Carrier understands it is not entitled to any such additional extension, nor may the City grant such additional extension. This Agreement confers a privilege and not a right; b. Tow Carrier hereby agrees to provide Tow Services to the City pursuant to terms and conditions contained in this Agreement. "Tow Services"means the following types of nonconsensual towing initiated by the City,including but not limited to code enforcement tows:(i) towing of involuntarily impounded vehicles (where such impound is authorized under the Vehicle Code) to the Tow Carrier's storage yard and storage there; and (ii) towing and storage of non- impounded vehicles when directed to do so by City personnel or by the owner (owner's request tows); C. Whenever a vehicle has been involved in an accident or a traffic violation,and the owner or someone delegated by the owner is present and is capable of removing the vehicle from the street with reasonable dispatch,and the vehicle is not needed for criminal evidence,City and/or Tow Carrier shall permit the owner or his delegate to remove the vehicle or call a tow carrier of his or her own choice to remove the same; provided, however, that if the street cannot be cleared for safe public use with reasonable dispatch by the above method,and in all situations other than above set forth, a Tow Carrier from the top of the rotation list will be called by the City; and d. This Agreement supersedes any and all prior agreements between the parties as to the subject matter hereof. 3. General Requirements of Tow Carriers: a. Tow Carrier shall comply with all rules,regulations and laws of the State of California,the County of San Bernardino and the City of San Bernardino, including but not limited to those applicable to storage facilities. Tow Carrier shall also comply with all provisions of the Resolution of the Mayor and Common Council of the City of San Bernardino Establishing Standard Criteria for Companies to Provide Tow Services for the City of San Bernardino as said Resolution exists and/or as said Resolution may be amended from time to time; b. Tow Carrier shall specifically comply with Exhibits A through E of Resolution No. 2005-286 attached thereto and set out as follows: Exhibit A—Minimum Tow Service Requirements Exhibit B - Preliminary Application Review Exhibit C - Towing Carrier Selection Process 48344847-6167.1 2 Exhibit D - Selection Process Exhibit E - Rights of Persons Whose Vehicles are Towed at the Request of City C. No Towing Carrier or applicant shall be directly involved in the towing related business of any other Towing Carrier or applicant on the City's tow rotation; d. Storage facilities owned by a Towing Carrier,and shared with another Towing Carrier,shall be approved only if the owner-Tow Carrier charges for the space exclusively on a flat monthly rate rather than a vehicle-by-vehicle basis, or combination thereof. Facilities shared by Towing Carriers shall be physically separated and secured from each other; e. The City shall conduct, at a minimum, one annual meeting with all Tow Carriers to discuss issues concerning the tow rotation. All meetings shall be mandatory for the Towing Carrier or Towing Carrier's designee wishing to remain on rotation.The City shall give the Towing Carrier 30 day's prior written notice of these meetings. The City may call additional required and noticed meetings with one or more Tow Carriers to address issues arising under this Agreement; and f. Tow Carrier understands and agrees that the Police Department or its designees may conduct annual reviews of Tow Carrier's operations to insure compliance with the regulatory and other requirements of this Agreement. Notwithstanding, the City and Police Department reserve the right to conduct reviews of Tow Carrier's operations at any time when health, safety or welfare concerns require such immediate review. 4. Towing Requirements: a. Rotation System: Agree to a rotation system established by the City; b. Carry a broom,trash can and sand,clean and remove broken glass,spilled oil, or gasoline from the area before departing, unless directed not to do so by police officers and/or designated City employees at the scene; C. Insurance: Each Tow Carrier shall maintain insurance pursuant to the requirements set forth below. The City shall be named as an additional insured on all policies including the workers compensation policies. Tow Carriers shall provide an endorsement to each policy showing the City as an additional insured. The Tow Carrier shall maintain the following minimum levels of insurance from an insurance carrier admitted in California, or admitted in the state in which the Tow Carrier business is located, and is authorized to do business in California: i. Minimum Level of Financial Responsibility(as required by Section 34631.5 of the California Vehicle Code)—Bodily injury and property damage with a combined single limit of not less than $750,000 for Class A tow trucks. These minimum standards are to include non-owned and hired auto coverage. ii. Uninsured Motorist—Legal minimum combined single limit. 48344847-6167.1 3 On-Hook Coverage/Cargo insuring the vehicle in tow with limits based on the size of the tow truck; iv. Garage Liability/Garage Keeper's liability — Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than$500,000. Proof of insurance shall be in the form of a certificate of insurance. Policy expiration or cancellation will immediately nullify the Agreement for Tow Services between the Tow Carrier and the City. The Tow Carrier's insurance policy shall provide for not less than 30 days written notice to the City in the event the insurance policy is canceled or is due to expire; d. Every tow truck which responds to calls for service within the City pursuant to this Agreement shall be clearly marked on both sides of the cab with the name and telephone number of the Tow Carrier which operates the truck; and e. The Tow Carrier shall not display any sign or engage in any advertisement indicating an official or unofficial connection with the City or Department of Motor Vehicles. 5. Storage of Vehicles: Pursuant to the requirements hereof, a Tow Carrier shall transport vehicles or to the Tow Carrier's facility for storage and shall meet the following minimum requirements: a. Have a minimum storage space for 200 vehicles with a minimum of twelve inside spaces;outside storage lots must be adequately lighted; b. Provide for secure inside evidence storage and have the ability to provide secure in-door storage for vehicles upon request of the Police Department; C. Have an attendant on call twenty-four(24)hours a day,seven days a week at place of business; d. Have no more than two telephone numbers listed with any City department; e. Store towed vehicles in a safe and protected space where the vehicles and their contents will not be accessible to thieves nor be damaged by activity in the Tow Carrier's establishment or from the elements or by vandals; no vehicles shall be left parked or stored on the public streets at any time; in no event shall the City be liable for any theft, vandalism or damage occurring to any such vehicle or its contents; f. Post a tag on the windshield on all cars ordered impounded by the City; g. Furnish each owner with an itemized billing and collect towing and storage charges on each stored vehicle from the owner; in no event shall the City be liable for any such charge; 48344847-6167.1 4 B x k i h. Confirm that the CHP Form 180 prepared by PD is accurate after PD inventories the contents.;p-prior to taking possession of any vehicle,and immediately before release, digitally photograph in a manner which shows the date and time on the photograph the inside and outside to document condition of vehicle and its contents and retain such photograph in a secure location for at least one year i. Release no vehicle without first having obtained a release from the City to do so; j. Have adequate equipment to handle calls from the City and storage of motor vehicles; k. The Tow Carrier shall operate from a location within the incorporated boundaries of the City, all of the facilities necessary ary to comply with the provisions of this Agreement shall be located within the incorporated boundaries of the City; 1. The Towing Carrier shall be responsible for the security of vehicles and property at the place of storage. At a minimum, a fenced or enclosed area shall be provided. The Towing Carrier is responsible for the reasonable care,custody,and control of any property contained in towed or stored vehicles; m. The Towing Carrier may not remove property from an impounded vehicle. The Towing Carrier shall obtain approval from the City prior to the removal of any property from a stored vehicle and shall provide a receipt,with a copy placed in the stored vehicle.The requirement to obtain approval from the City prior to the removal of property may he excused by the City if it is determined that proper safeguards and procedures are utilized by the Towing Carrier; n. Upon approval from the City, the Towing Carrier shall release personal property from a stored vehicle at the request of the vehicle registered owner or agent; o. There shall be no charge for the release of personal property during normal business hours. Towing Carrier may charge an after- hours release fee for property released after normal business hours, consistent with the after-hours vehicle release provisions; 1 P. Personal property is considered to be items which are not affixed to the vehicle. Personal property from a stored vehicle shall be released upon request of the vehicle 1 registered owner or agent. Responses are mandatory on weekends, holidays, and outside normal business hours, provided the vehicle's current registered owner or owner's authorized agent are available for return of personal property. Payment for an after-hour release of property may be required at the time of the release; q. Cargo shall be released upon demand of the carrier or,pursuant to a court Order; r. The primary storage facility shall normally be at the same location as the business address. If not at the same location, there shall be no charge for any additional distance traveled to and from a secondary location.The vehicle and/or personal property shall he released at 4834-4847-6167.1 5 the primary storage facility or place of business upon request of the registered owner or a person having a legal entitlement to the vehicle and/or property; S. Prior to the utilization of new storage facilities that were not listed on the application for rotation tow listing,the Towing Carrier shall furnish the address and obtain the City's approval; t. Secondary storage facilities shall be located reasonably close to that main business office; U. All storage facilities shall meet all legal requirements for such facility; V. Towing Carrier's place of business shall have a sign that clearly identifies it to the public as a towing service. The sign shall have letters that are clearly visible to the public from the street. The sign shall be visible at night; W. For the purpose of this Agreement for Tow Services,"normal business hours" shall not be less than 8 a.m.to 5 p.m.,Monday through Friday,except for the following recognized holidays:New Year's Day,Martin Luther King Day,Presidents'Day,Memorial Day,Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, day after Thanksgiving Day, and Christmas Day; and X. Business hours shall be posted in plain view to the public.Offices staffed with only one employee may be closed for one hour at lunch. A sign shall be posted with the reason for closure.The sign shall have a phone number where a request will result in an immediate response to release property or vehicles. Response to the office shall be within the time frame required for tow response. 6. Towing Equipment: Tow vehicles shall be rated at a minimum of 14000 GVWR. (Class A) a. Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chasses Gross Vehicle Weight Rating (GVWR) and the classification system used by the American Trucking Association(ATA) and truck manufacturers; b. Towing Limitations: i. The total weight of the truck, including the lifted load, shall fall within the GVWR and not exceed either the Front Axle Weight Ratings (FAWR) or Rear Axle Weight Ratings (RAWR); ii. All tow trucks and car carriers shall be equipped and in compliance with the most recent electronic version of the California Highway Patrol Tow Truck Inspection Guide(CHP 234B); and, .. iii. The truck must meet all applicable state and/or federal standards; 4834-4847-6167.1 6 C. Identification Labels: Each piece of towing equipment shall have a label or identification tag permanently affixed to the equipment in a prominent location to identify the manufacturer, serial number, model, and rated capacity; d. Recovery Equipment Rating: The basic performance rating of the recovery equipment is the weight the equipment can life in a winching mode,when the boom is static at a 30 degree elevation with the load lines vertical and the lifting cables sharing the load equally,measured with a live load(weight or load cell); i. The structural design of the recovery equipment must have a higher load capacity than the performance ratings; ii. Winches shall conform to or exceed the specifications set forth by the Recovery Equipment Rating (SAE) Handbook, SAEJ706; and, iii. All ratings for cable and chain assemblies are for the undamaged assembly condition. All cable and chain assemblies should be the same type, construction,and rating as specified by the original equipment manufacturer (OEM) for the equipment; and e. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. 7. Per Call Rotation System a. The City shall establish a per call rotation system of qualified Towing Carriers who have entered into Agreements with the City for the performance of towing services in response to calls from the City. All departments of the City shall comply with the rotation system. b. Towing Carrier shall comply with and qualify under all the minimum requirements set forth in this Agreement as a condition precedent to being eligible to be placed on the rotation list as follows: i. The City shall maintain a rotation tow list for Class A tow trucks to ensure an equitable distribution of calls. Nothing in this Agreement for Tow Services shall prohibit the City from requesting a specific Towing Carrier when,in the on scene supervisor's opinion, the necessary resources to clear a hazard as expeditiously as possible are not available from the Towing Carrier currently at the top of the rotation tow list. If the City needs a tow vehicle that exceeds that of a Class A tow truck,the City may,in its discretion, contact a Towing Carrier with the size of tow truck needed. In such an instance, the Towing Carrier selected would be the next Towing Carrier on the list which has the qualifications (equipment, skills, timelines, etc.) to provide the required service. After the request,the selected Towing Carrier would then go to the bottom of the rotation tow list. Towing Carriers on the same list that were 4834-4847-6167.1 7 by-passed would remain in the same order until their selection for a rotation tow for which they are qualified; ii. A call to a Towing Carrier shall constitute one turn on the list and the Towing Carrier shall be moved to the bottom of the list. This includes when the Towing Carrier fails to answer the phone,is unable to respond,is unable to perform the required service, refuses to respond or provide service, or is canceled due excessive response time. If it is determined that the Towing Carrier is not needed and is canceled by the City,up to and including arrival at the scene and standby time which does not result in a tow,there shall be no charges and the Towing Carrier will be placed back at the top of the list; a) If the Towing Carrier is cancelled by the vehicle's registered owner or agent prior to the Towing Carrier taking possession of the vehicle, there shall be no charges for towing. The Towing Carrier shall immediately contact the City and advise them of the cancellation. The Towing Carrier will then be placed back at the top of the list; and, b) If service, other than towing, recovery, and load salvage,has begun and is canceled by the vehicle's registered owner or agent, the Towing Carver may charge one-half of the regular hourly service charges for the time expended on the call. For purposes of cancellation, service begins when physical work on the vehicle has begun,not the response.No lien shall arise for the service unless the Towing Carrier has presented a written statement to the vehicle's registered owner or agent for the signed authorization of services to be performed. The Towing Carrier shall not attempt to take possession of the vehicle in order to establish a lien for any non- towing services performed, or begun and subsequently canceled, when not entitled to such lien by law; iii. If two or more Towing Carriers are called to the same incident, distribution of the vehicles shall be at the discretion of the on-scene supervisor; iv. The Towing Carrier shall respond to calls 24 hours a day,seven days a week. Between 6:00 a.m. and 6:00 p.m., the response time shall be no more than twenty(20)minutes. Between 6:00 p.m. and 6:00 a.m.the response shall be no more than thirty(30) minutes. The Towing Carrier shall respond with a tow truck of the class required to tow the vehicle specified by the City. The Towing Carrier shall advise City dispatch,at the time of notification,if they are either unable to respond or unable to meet the maximum response time. If,after accepting the call,the Towing Carrier is unable to respond or will be delayed in responding, the Towing Carrier shall immediately notify the appropriate City department. The Towing Carrier shall not assign any calls to other Towing Carriers; 4834-4847-6167.1 8 a) A failure to respond to perform the required towing or service and/or repeated failures to meet the maximum response time requirements shall constitute a failure to comply with the terms and conditions of this Resolution and the Agreement for Tow Services; b) The City may take immediate disciplinary action for any violation of the requirement to respond within the maximum response time; and C) When a Towing Carrier will be temporarily unavailable to provide services due to a pre-planned or scheduled activity, the Towing Carrier shall notify the City at least 24 hours prior to the date that services will be unavailable, noting the times and dates of the unavailability; V. Towing Carriers shall have a minimum of three (3) verifiable years of for hire towing experience,as an owner or principal,prior to the final filing date of an enrollment period in order to qualify for a rotation tow listing; a) Towing Carriers and owners who do not meet the three year verifiable for-hire towing experience may be considered for a position on the City rotation tow list if a full-time manager who possesses the required tow management experience is employed by the Towing Carrier.An owner/Towing Carrier who releases vehicles, completes lien sale paperwork, and other tow business related documents for three years in the Towing Carrier, with the qualified manager, will fulfill the three years for-hire towing experience requirement; Vi. To the extent applicable for stored vehicles, Towing Carrier shall give or cause to be given written notice to the registered and legal owners of each vehicle which is towed in conformity with the authorization and requirements of this Agreement concerning the fact of such towing,the place at which such vehicle is stored and the imposition of charges for towing,storage and related services whenever the Towing Carrier knows or is able to ascertain from the registration records in the vehicle or from the registration records of the Department of Motor Vehicles the name and address of the registered and legal owners. The notice shall be given ten (10) days from the date of the towing of the vehicle by the Towing Carrier. SBPD shall be responsible for such notice for impounded vehicles; vii. The Towing Carrier shall post in its office a list of rights of the owner of the vehicle under this Agreement for Tow Services. The rights are set forth on Exhibit E to this Resolution; and 4834-4847-6167.1 9 viii. A stored vehicle shall be released to the registered owner upon presentation of the registration and valid proof of identification (as provided in Vehicle Code Section 22860.3)and payment of all towing and storage charges If the Towing Carrier does not release the vehicle as required by this subsection upon presentation of registration and valid proof of identification and payment of all charges, storage charges shall cease on the date of presentation of the documentation and payment of the accrued charges. 8. Compensation for Tow Services:Tow Carrier shall charge for services on calls by the City in an amount not to exceed ten ($10) above the hourly rate set by the California Highway Patrol. Tow Carver is responsible for collection of all such fees and charges. a. The rate for towing shall be computed from portal to portal. Time expaxlad shall be charged at a rate not to exceed the hourly rate. Time expended in excess of the minimums shall also be at the hourly rate in no more than one-minute increments. There shall be no additional charges for mileage, labor, etc: i. The Towing Carrier may charge up to a thirty-minute minimum per call for any service or tow which is performed when the vehicle operator or agent is present and the vehicle is not stored at the discretion of an officer; and, ii. The Towing Carrier may charge up to a one-hour minimum per call on responses which result in storage of a vehicle at the direction of an officer; b. Rates for a service call(out of gas,lockouts,tire changes, etc.)shall be from portal to end of service, and may be at the hourly rate with a thirty-minute minimum. Charges in excess of thirty-minutes may be charged in no more than one-minute increments; and, C. Standby time for tow trucks will begin one(1)hour after receipt of calls from the City, and is defined to mean the time consumed after the first hour in necessary preparations in order to tow the disabled vehicle and in cleaning up the immediate surrounding area. 9. Compensation for Storage:Tow Carrier shall charge for services for storage at the storage rate set by the California Highway Patrol for the San Bernardino area. Tow Carrier is responsible for the collection of all such fees and charges. a. Fees for inside storage shall be charged only when inside storage is requested by the City, registered owner, legal owner, insurance company, or when the inside storage can otherwise be justified by the Towing Carrier; b. The Towing Carrier shall display in plain view at all cashiers stations,a sign as described in Section 3070 of the Civil Code. , disclosing storage fees, lien release fees, and charges in force,including the maximum storage rate; 4834-4847-6167.1 10 C. Vehicles stored 24 hours or less shall be charged no more than one day storage; and, d. Storage of vehicles in combination may be charged a per vehicle rate except for dollies and con-gear. Dollies and con-gear may be charged a storage rate not to exceed Class A storage fees; e. The charge for after-hours release shall be no more than one-half the hourly rate, and shall only be allowed on weekends,holidays, and outside normal business hours; f. The approved schedule of rates charged by the Towing Carrier shall be available in the tow truck, and shall be presented upon demand to the persons for whom the Tow Services were provided,their agent, or any officer at the scene; g. Rate requirements represent the maximum a Towing Carrier may charge on a City call. A Towing Carrier is not precluded from charging less when deemed appropriate by the Towing Carrier. These requirements shall not be construed as requiring a charge if a Towing Carrier would not normally charge for such service; h. Towing Carrier or employee shall not refer to any rate as required or set by the City; i. In the event that a towed vehicle is forfeited by the owner in accordance with Section 14607.6 of the California Vehicle Code, the proceeds of the sale of the vehicle shall be distributed pursuant to said section of said Code; and j. The Towing Carrier shall accept all guaranteed forms of payment including, without limitation,money orders, certified checks,debit cards and all widely accepted credit cards. There shall be no surcharge for the use of a credit card.If the form of payment cannot be accepted by the Towing Carrier due to any failure by the Towing Carrier or Towing Carrier's payment processing equipment, Towing Carrier shall not charge storage fees beyond date of such failure. 10. City Fees and Franchise Fees. In addition to the amounts charged vehicle owners, Tow Carrier shall pay the following fees to the City in the manner set out here. a. Impounded Vehicles:Registered Owner shall pay to the City an administrative release fee of$349 per vehicle towed, impounded and thereafter stored; b. Stored vehicles: There shall not be a fee charged for stored vehicles based upon the City's determination that such fees most often would be charged to the victims of crimes(auto theft) or accidents; c. Franchise Fee: Tow Carrier shall pay the following franchise fees per vehicle towed under this Agreement(collectively"vehicle) during the initial term of this Agreement and shall not be passed through to vehicle owners in any manner: 4834-4847-6167.1 11 Year 1 (effective date of Agreement, 2011,through June 30, 2012) - $70.00/vehicle Year 2 (July 1, 2012 through June 30, 2013) -$72.10/vehicle Year 3 (July 1, 2013 through June 30, 2014) - $74.25/vehicle Year 4 (July 1, 2014 through June 30, 2015) - $75.50/vehicle Year 5 (July 1,2015 through June 30,2016) - $79.00/vehicle Such franchise fees may be adjusted by the City after the initial 5-year term hereof; d. Verification of Tows and Payment of Franchise Fees: By the 15a'of each month, Tow Carrier shall submit to the Police Department a list of all vehicles towed under this Agreement during the previous calendar month, including but not limited to owner's request tows. The list shall be in a format acceptable to the Police Department and shall include the case number, vehicle license plate number and vehicle identification number. At the same time as the list is provided,Tow Carriers will remit franchise fee payment to City for the vehicles towed during the previous calendar month. Any amounts not paid by the 15th of the following month shall bear interest at the rate of 10%per annum, simple interest, compounded daily until paid; and e. City fees (including but not limited to the list prepared) are subject to audit and verification as set out herein whether as part of an annual review or otherwise. 11. Employees: a. The Towing Carrier shall insure that tow truck drivers responding to calls initiated by the City are qualified and competent employees of the Towing Carver's company. The Towing Carrier shall ensure that the tow truck drivers are trained and proficient in the use ofthe tow truck and related equipment, including, but not limited to, the procedures necessary for the safe towing and/or recovery of the various types of vehicles serviced through City rotation. Tow drivers shall perform all towing and recovery operations in the safest and most expedient manner possible. Tow truck drivers shall be at least 18 years of age and shall possess the proper class license and endorsements for the towed and towing vehicle; b. The Towing Carrier shall maintain a current list of drivers; C. All tow truck drivers and owner/Towing Carriers shall be enrolled in the Pull Notice Program; i. Upon the addition of new drivers, a Towing Carrier will be granted a maximum of 30 days to enroll drivers in the Pull Notice Program; ii. Pull Notices shall be kept on file, signed, and dated by the Towing Carrier; and, iii. The City may require a Towing Carrier to provide copies of Pull Notice Reports to the City; 4834-4847-6167.1 12 d. The Towing Carrier,or Towing Carrier's employees responding to a call,shall perform the towing or service required for which they were called unless the requested equipment is inadequate for the service to be performed; and, e. Only the tow truck personnel and equipment requested shall respond to the City call. A Towing Carrier shall not respond to a City call assigned to another Towing Carrier unless requested to do so by the City; i. This shall not preclude the Towing Carrier from responding to an incident to ascertain if additional assistance or equipment is required. There shall be no additional charge for any personnel or equipment that is not necessary to perform the required service; ii. There may be times when the Towing Carrier assigned the initial call may require the assistance of an additional Towing Carrier at the scene. The Towing Carrier assigned the initial call may,subject to prior Agreement with the City and with the concurrence of the on scene supervisor, request a specific Towing Carrier for assistance. The request shall be routed to the additional Towing Carrier through the City; and, iii. There may be times when a Towing Carrier, who was not called to a scene, comes upon a collision scene where a vehicle or vehicle are blocking a roadway and an officer requests assistance in clearing the roadway.In such a case, the Towing Carrier may be requested to move the vehicle to a safe location,as directed by the officer, and leave it.There shall be no charge for this assistance and the assistance provided shall not change the Towing Carrier's place in the rotation. f. Employees shall he properly trained to conduct business transactions related to towing, storage, and release of vehicles/property; g. Uniforms: While engaged in tow operations hereunder, City rotation tow drivers shall wear an identifiable uniform shirt displaying the Tow Carrier's and driver's names;and h. Safety Vests: City rotation tow drivers shall wear a safety vest and/or reflectorizing clothing,as well as any other safety clothing required by and meeting CalOSHA and Occupational Safety and Health Administration(OSHA) requirements. 12. Complaint Procedure: All City related tow service complaints from the public received by the City against a Towing Carrier or Towing Carrier employees will be accepted and investigated in a fair and impartial manner pursuant to procedures utilized by the Police Department or as set out herein. The Towing Carrier will be notified of the results of any investigation. 13. Records: Each month, Towing Carrier shall submit a list of all vehicles towed the previous month, including license plate numbers and vehicle identification numbers, and shall identify clearly all impounded vehicles towed to its storage facility. 48344847-6167.1 13 a. The Towing Carrier shall maintain records of all Tow Services furnished. The records will be maintained at the Towing Carrier's place of business. Invoices shall at a minimum include a description of each vehicle,nature of service,start time,end time,location of call,itemized costs of towing and storage, the tow truck driver's name, and truck used; b. At the Towing Carrier's primary office,the Towing Carrier shall also maintain business records relating to personnel, insurance, personnel taxes, payroll, applicable operating authorities, local operating authorities, lien sale actions, Federal Communication Commission licensing, and non-City I tows; C. The City may inspect all Towing Carrier records without notice at any time during normal business hours and during the annual reviews; d. Towing Carrier shall permit the City to make copies of business records at its place of business, or to remove business records for the purpose of reproduction. The City shall provide a receipt for any(original)records removed from the place of business; e. Records shall be maintained and available for inspection for a period of four (4) years after the termination of this Agreement for Tow Services; and, f. Failure of the Towing Carrier to comply with the inspection requirements shall be cause for suspension and/or termination of this agreement. 14. Audit: a. Upon reasonable advance written notice, City or its designee shall have the right to review and audit the books of Towing Carrier's place of business and during business hours. In the event that such audit shows a 5% or greater variance in revenues owing to the City by Tow Carrier,the following amounts shall be owing by Tow Carrier to City: 1)the amount determined to be owing as a result of the audit; 2) simple interest at the rate of 10% on the amounts owing, compounded daily from the due date; 3) both 1) and 2) shall be paid within 10 calendar days of notification of the deficiencies; and 4)Tow Carrier shall pay the reasonable costs of the audit based upon invoices provided by City; and b. In the event that an audit shows an 10% or greater variance in revenues owing to the City, the following amounts shall be paid to the City by that Tow Carrier: 1. the amount owed as a result of the audit; 2. simple interest at the rate of 10%on the amount owed,compounded daily from the due date; 3. the amount owed including interest shall be paid within 10 calendar days of notification of deficiencies; and 4. pay the reasonable costs of the audit; 4834-4847-6167.1 14 c. In the event the audit determines a 15%variance in revenues owing to the City, such result may be ground for action under Section 17 herein. 15. Assignment: Any assignment of this agreement due to change in ownership requires the approval of the City Council to continue on the tow rotation.Any change of ownership must be reported to the Police Department in writing within seven(7) days of such change.Thereafter, Police Department will review the proposed new owner(s) under the standards set out in this Agreement and procedures the Police Department adopts therefor. Within 30 days ofthe date of notification of the change of ownership, the Police Department shall report the results of its review to the City Council,which shall approve or deny the assignment of this Agreement to the new owner. In the event the City Council denies the assignment,the Agreement shall terminate as of the date of such denial and the Police Department shall initiate procedures to replace the Tow Carrier in the towing rotation. Such termination is not subject to the appeal provisions hereof or of Resolution No. 2005-286. 16. Standards for Performance:While involved in City rotation tow operations or related business, the Tow Carrier and/or employees shall refrain from any acts of misconduct including,but not limited to, any of the following: a. Rude or discourteous behavior; b. Lack of service, selective service, or refusal to provide service which the Towing Carrier should be capable of performing; C. Any act of sexual harassment or sexual impropriety; d. Unsafe driving practices; e. Exhibiting any objective symptoms of alcohol and/or drug use; f. Appearing at the scene of a City rotation tow call with the odor of an alcoholic beverage emitting from the Tow Carrier's employee's breath. The Towing Carrier employee shall submit to a preliminary alcohol screening test upon demand of the City; g. Should the filing of criminal charges be a possibility,the City will conduct the investigation to conclusion or assist the lead investigation agency and, if warranted, request prosecution; h. Traffic Violations; i. In the event of a minor traffic violation by a tow truck driver which is known by the City,the Towing Carrier shall be advised of the violation by the City. The Towing Carrier will be granted the opportunity to take necessary steps to ensure that the driver complies with the law. Any subsequent traffic 4834-4847-6167.1 15 violations may be cause for disciplinary action against the Towing Carrier and/or the involved employee(s); ii. Any flagrant traffic violation maybe cause for immediate disciplinary action against the Towing Carrier and/or the involved employee(s); and, iii. The provisions contained in any compliance with law provisions in this Agreement do not preclude the City from taking appropriate enforcement or administrative action for any violations of law. Complaints for violations of the law not normally investigated by City will be referred to the agency with investigation jurisdiction; i. Any conviction of the Towing Carrier or employee involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of violence, a drug-related offense, felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug,or moral turpitude while involved in a City rotation tow call shall be cause for removal of the Tow Carrier from the list of current City rotation, denial of Towing Carrier application, or termination of this Agreement; j. A Tow Carrier or employee arrested/charged for a violation involving any of the above crimes may be suspended until the case is fully adjudicated.Records of violations shall be retained by the City for at least 36 months; k. A violation of the equipment requirements related to safety shall be cause for immediate suspension of the Tow Carrier from the tow rotation.The suspension will remain in effect until the period of suspension is completed and the City has conducted an inspection and concluded the Tow Carrier is in compliance; 1. A violation of the GVWR and safe loading requirements of a tow truck may be cause for immediate suspension of the Tow Carrier. This includes exceeding the tow truck's GVWR, front axle weight rating, rear axle weight rating, maximum tire weight ratings, or not maintaining 50 percent of the tow truck's unladen front axle weight on the front axle when in tow; m. A violation of intentionally overcharging or a pattern of overcharging or of non-payment of City fees shall be cause for suspension of the Tow Carrier. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has presented proof to the City that reimbursement has been made to the aggrieved customer; n. City personnel shall not be offered gratuities,and requests for gratuities shall not be honored by Tow Carriers, employees, or associates of the Tow Carrier. A violation of this section shall be cause for suspension or termination; o. Failure of the Tow Carrier to satisfy a court order mandating reimbursement to the vehicle owner or property owner for the damage or loss which occurred while the vehicle was in the Towing Carrier's custody will result in a suspension.The suspension will remain in effect until the period of suspension is completed and the Towing Carrier has presented proof of the reimbursement; 48344847-6167.1 16 P. Failure of the Tow Carrier to comply with the inspection requirements of this Agreement for Tow Services shall result in a suspension.The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has complied with the inspection requirement; q. Failure of the Tow Carrier to send tow truck drivers who are qualified and competent employees on City calls shall be cause for suspension. The suspension will remain in effect until the period of suspension is completed and the Tow Carrier has presented proof to the City that the driver is qualified and competent; and, r. Failure of the Tow Carrier to maintain the minimum insurance requirements set forth in the Agreement for Tow Services will immediately nullify the Agreement for Tow Services. The Tow Carrier will be subject to an additional suspension for failure to notify the City in advance of the insurance policy expiration or cancellation. 17. Suspension and Termination for Cause: The City shall take disciplinary action against Tow Carriers for violations investigated and confirmed or sustained.Unless otherwise noted,the City shall determine the period of suspension.The City shall retain discretion regarding the length of any suspension imposed pursuant to the terms and conditions of this Agreement for Tow Services. a. Violations of the terms and conditions of this Agreement maybe cause for disciplinary action against the Tow Carrier as follows;in lieu of termination,the City may impose additional suspension for longer periods, if deemed appropriate; i. First violation within a 12 month period- letter of written reprimand; No changes to these per PD; ii. Second violation within a 12 month period- 1 to 30 day suspension; Third violation within a 12 month period- 60 to 90-day suspension; and, iv. Fourth violation within a 12 month period-termination of the Agreement for Tow Services. b. Violations of the terms and conditions of this Agreement that are subject to suspension for the first violation are categorized as major violations.Any subsequent or continuing major violation may be cause for termination; i. When considering punitive action for a major violation of the Agreement,the City may take into consideration all major and minor violations that occurred within 36 months prior to the date of the current violations; and, ii. Termination shall be invoked if, in the City's sole judgment, continued participation in the Rotation Tow Program by the affected Towing Carrier 4834-4847-6167.1 17 may result in a hazard to public safety and/or welfare, or any conviction of the Towing Carrier or employee involving a stolen or embezzled vehicle, fraud related to the towing business,stolen or embezzled property,a crime of violence,a drug-related offense,felony driving while under the influence of alcohol and/or a drug, misdemeanor driving while under the influence of alcohol and/or a drug, or moral turpitude while involved in a City rotation tow call; C. Nothing herein shall be deemed to prohibit the City from immediately suspending any Towing Carrier or employee whose conduct,in the opinion of the City,is deemed to be a danger to the motoring public or who has engaged in conduct constituting a flagrant violation of the Agreement for Tow Services; d. Administrative Hearing: In the event the City serves the Towing Carrier with Disciplinary action, the Towing Carrier may request a hearing within seven calendar days by submitting a request in writing to the Traffic Sergeant at the Police Department. If a hearing is requested, it shall be held as soon as practical. The hearing shall be conducted by the Traffic Sergeant or designee, and the Tow Carrier shall be entitled to present all relevant facts and circumstances in support of the Tow Carrier's position. The Tow Carrier shall be further entitled to present testimony of at least one qualified person.The Tow Carrier shall be notified in writing of the Traffic Sergeant's decision(s) within ten business days of the date of completion of the hearing; e. Appeal from Administrative Hearing:Following a hearing,if the Tow Carrier is dissatisfied with the Traffic Sergeant's decision(s),the Tow Carrier may appeal by submitting a request in writing to the City Clerk, pursuant to Municipal Code Chapter 2.64, and paying any applicable fees; f. A suspension shall not take effect until the hearing and appeal process has been exhausted, with the exception of Tow Carriers whose conduct deemed to be a danger to the motoring public or who continue to violate the terms and conditions of this Agreement for Tow Services. If a Tow Carrier fails to request a hearing or appeal,the action taken by the,City shall be final, and the suspension shall take effect upon written notification to the Tow Carrier by the City; and g. A terminated or suspended Tow Carrier, and/or the Tow Carrier Business owner at the time of the suspension or termination shall not be eligible for a rotation listing for the duration of the suspension or termination. This provision applies to the Tow Carrier working in any capacity within any tow business or operating any tow business,and to the tow business,even if operated under new ownership.This provision does not apply to Section 16 regarding termination due to a change in ownership. 18. Notice: Any notice to be given pursuant to this Agreement by either party to The other shall be given by personal service or shall be deemed given when deposited with the United States Postal Service, first class,postage prepaid, and addressed as follows: 4834-4847-6167.1 18 To the City: City Manager 300 North"D" Street San Bernardino, CA 92418 To Towing Carrier: Wilson Towing LLC 2310 E. 3rd Street San Bernardino, CA 92410 19. Miscellaneous: This Agreement represents the entire Agreement between the City and the Tow Carrier and fully supersedes any and all previous Agreements enter into by and between the City and Tow Carrier. This Agreement may be amended only in writing agreed upon by all affected Tow Carriers.No waiver of any term or condition of this Agreement shall be a continuing waiver thereof. 20. Attorneys' Fees: In the event of litigation to enforce this Agreement, the prevailing party in such litigation shall be entitled to reasonable costs and attorneys' fees, as determined by the Court. As used here, "attorneys' fees" includes the costs, salary and expenses of the City Attorney and members of his office. IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the day and IL date first above shown. CITY OF SAN BERNARDINO By: City of San Bernardino Attest: By: TOW CARRIER: WILSON TOWING LLC By: Print Name: Approved as to Form: JAMES F. PENMAN City Attorney By: 4834-4847-6167.1 19 i i a 3 EXHIBIT"A'• EXHIBIT A TOW CARRIERS MINIMUM REQUIREMENTS (EFFECTIVE FOR TOW CARRIERS EgTERWG THE CITY'S TOW ROTATION AFTER TILE EFFEC'T'IVE DATE OF THIS RESOLUTION) A. Have a minimum outside storage space of 65,000 square feet capable of storing at least 200 vehicles. B. Minimum inside storage space of 2000 square feet capable of storing at least five (5) automobiles. C. Security fencing around the entire outside storage space. D. Monitored alarm system-If the outside storage space is not alarmed,the inside storage must be. E. Minimum of three Class A tow trucks. F. Current City Business License. G. Certificate of Occupancy. H. Hazardous Material Handler's Permit. L Have either an inside or outside customer waiting area for at least five customers of 100 square feet. The outside waiting area shall exclude parking and landscape areas. J. Have a minimum of three years of for-hire towing experience as an owner/principal or have a qualified manager with the experience. K. Have an attendant on call twenty-four (24) hours a day, seven days a week at place of business. L. Have no more than two telephone numbers listed with any City department. M. Store towed vehicles in a safe, lighted and protected space where the vehicles and their contents will not be accessible to thieves nor be damaged by activity in the carrier establishment or from the elements or by vandals;no vehicles shall be left parked or stored on the public streets at anytime; in no event shall the city be liable for any theft,vandalism or damage occurring to any such vehicle or its contents. N. Post a tag on the windshield of all cars ordered impounded by the City. O. Collect all towing or hauling and storage charges on each vehicle from the owner; in no event shall the city be liable for any such charge. 1 a. P. Whenever a vehicle has been involved in an accident or a traffic violation, and the owner or someone delegated by him is present and is capable of removing the vehicle from the street with reasonable dispatch, and the vehicle is not needed for criminal evidence, City and/or towing carrier shall permit the owner or his delegate to remove the vehicle or call a towing company of his or her own choice to remove the same;provided, however,that if the street cannot be cleared for safe public use with reasonable dispatch by the above method, and in all situations other than above set forth, a towing carrier from the top of the rotation list will be called by the City. Q. Furnish each owner with a fully itemized billing. R. Immediately after each towing operation, make a towing slip with the contents of each vehicle placed in his or her care itemized thereon as verified by the officer ordering the same and make the slip available to the City on request. S. Release no impounded vehicle without first having obtained a release from the City to do SO. T. Agree to a rotation system established by the City. U. Comply with all rules, regulations and laws of the State of California, County of San Bernardino and City of San Bernardino. V. Have adequate equipment to handle calls from the city, impounds, and storage of motor vehicles. W. The carrier shall operate from a location within the City of San Bernardino, and all of the facilities necessary to comply with the provisions of this resolution shall be located within the City of San Bernardino. X. Carry a broom,trash can and sand,clean and remove broken glass,spilled oil,or gasoline from the area before departing, unless directed to not do so by police officers and/or designated City employees at the scene. Y. Each tow carrier shall maintain insurance pursuant to the requirements set forth below. The City of San Bernardino shall be named as an additional insured on all policies including the workers compensation policies. Tow carriers shall provide an endorsement to each policy showing the City as an additional insured. 1. The operator shall maintain the following minimum levels of insurance from an insurance carrier admitted in California, or admitted in the state in which the operator's business is located, and is authorized to do business in California: a) Minimum Level of Financial Responsibility(as required by Section 34631.5 of the California Vehicle Code) -Bodily injury and property damage with 2 a combined single limit of not less than$750,000 for Class A tow trucks. These minimum standards are to include non-owned and hired auto coverage. b) Uninsured Motorist-Legal minimum, combined single limit. c) On-Hook Coverage/Cargo-Insuring the vehicle in tow with limits based on the size of the tow truck. d) Garage Liability/Garage Keeper's liability Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than$500,000. 2. Proof of insurance shall be in the fbrin of a certificate of insurance. Policy expiration or cancellation will immediately nullify the Agreement for Tow Services between the carrier and the City. The operator's insurance policy shall provide for not less than 30 days written notice to the City in the event the insurance policy is canceled or is due to expire. OL Z. Tow vehicles shaU be rated at a minimum of 14000 GVWR.(Class A) I Tow Truck and Car Carrier Classifications: Tow truck and car carrier classifications are based on the truck chassis Gross Vehicle Weight Rating(GVWR) and the classification system used by the American Trucking Association(ATA) and truck mantifacturers. 2. Towing Limitations: a) The total weight of the truck, including the lifted load,shall fall widk the GVWR and not exceed either the Front Axle Weight Ratings (FAWR) or Rear Axle Weight Ratings(RAWR). b) All tow trucks and car carriers shall be equipped and in compliance with the most romt electronic version of the California Highway Patrol Tow Truck Inspection Guide(CHP 234B). c) The truck must meet all applicable state and/or federal standards. 3. Identification Labels: Each piece of towing equipment shall have a label or identification tag permanently affixed to the equipment in a prominent location to identify the er, serial number, model, and rated capacity. 4. Recovery Equipment Rating: The basic perfbrinance raft of the recovery equipment is the weight the equipment can lift ina winchin mode,when the boom is static at a 30 degree elevation with the load lines vertical and the lifting cables 3 sharing the load equally, measured with a live load (weight or load cell). a) The structural design of the recovery equipment must have a higher load capacity than the performance ratings. b) Winches shall conform to or exceed the specifications set forth by the Recovery Equipment Rating(SAE) Handbook, SAE J706. c) All ratings for cable and chain assemblies are for the undamaged assembly condition. All cable and chain assemblies should be the same type, construction,and rating as specified by the original equipment manufacturer (OEM) for the equipment. 5. Control/Safety Labels: All controls shall be clearly marked to indicate proper operation, as well as any special warnings or cautions. b. Uniforms: City rotation tow drivers shall wear an identifiable uniform shirt displaying the company and driver's names while engaged in City rotation tow operations. 7. Safety Vests: City rotation tow drivers shall wear a safety vest or reflectorizing clothing, meeting Occupational Safety and Health Administration (OSHA) requirements. AA. The City may grant additional points or deduct points as set forth in Exhibit B to Resolution No. BB. No tow carrier is exempt frommeeting-legal requirements imposed by any city,county,State or Federal laws or regulations. An example of this is the Clean Water Act. 4 s t i 4 ' I 3 E I I i EXHIBIT"B" E MTBIT "B" Preliminary Application Review Applications that do not currently meet all of the following minimum qualifications will be rejected and returned to the tow carrier with a cover letter stating the reason/s for rejection. Tow Carrier Name Date Internal Use Only Qualification Yes No 1. Meets all standards of the most current city resolution establishing standard criteria for tow com anies. 2. Tow business office and storage facility located within San Bernardino City limits. 3. Minimum Outside Storage of 200 vehicles,65,000 sq. ft. 4. Minimum Inside Storage of 2,000 sq.ft. 5. Secure,lighted storage facility 6. . Attendant on-duty 24 hours 7. 24 hour service including weekends and holidays 8. Minimum of three certified Class A tow trucks 9. Current City Business license 10. Certificate of Occupancy [ )Permanent [ )Temporary 11. Hazardous Material Handlers Permit Current 12. Monitored Alarm System: If outside perimeter is not alarmed then inside storage must be. 13. Minimum inside waiting area of 100 sq.ft. 14. Minimum outside waiting area, excluding parking space and landscaping,of 100 . ft. 15. Operator has three years of verifiable towing experience as an owner or principle, or has a full time manager who possesses the required experience. 16. Financial Interest in another tow company providing services to the City 17. Prior conviction(s),guilty plea,or nolo contendere plea that excludes tow carrier, Comments UATow stuffiApplication Preliminary Review Check List 2-1-01 Ldoc I I I I I i I II I I I I EXHIBIT"C" IMIBIT "C" SELECTION PROCESS ATTACHMENT Tow Carrier. Date: Contact Information Agency Name Contact Person Title Telephone# . Date of Contact J 1 Governmental Agency Tow Service History Agency Number of Negative Complaint History Actions #Sustained #Unfounded Revised 7/19/2005 1MTBIT "Cs' SELECTION PROCESS ATTACHMENT Each tow carrier shall be awarded a point value for each of the in-depth investigation categories. The points may range from negative values(deductions)to positive values(additions). Meeting the minimum qualifications in a specific category will have a point value of zero. Tow Service History Points Lost Negative Actions are defined as any notice of Total Points Lost disciplinary action by a governmental agency or issuance of a citation that results in sanctions or conviction. 1- 4=- 5 16-20=-30 5-10=-10 21 -25=-40 11-15=-20 25+ =-50 Government Agency Name Date of Action Summary of Action Business Expiration Date: License Number: Sub-Total Tow Service History Facility Inspection Minimum Outside Additional Outside Space Minimum Inside Additional Inside Space Total. Storage Space 10,000-20,000 sq. ft.=+5 Storage Space 1,000-1,500 sq.ft.=+5 Points, Required 65,000 sq.ft. 20,001 +sq.ft._+10 Required 2,000 sq.ft. 1,501 +sq.ft. =+10 J Office Area Front of Business Rear of Business=-2 Unimproved Walkway for customer Location/Access No Obstructions access=-2 0 Sta ig/D gamz tion 1 person to 24 able to conduct routine business=+2 *Routine business includes the conduct routine 5+able to conduct routine business=+5 release and sale of vehicles* business Customer Inside 100 sq.ft.minimum=0 Seating for Public access to customer files Wai ' Area 100 additional sq.ft=+2 Customers=+2 =-10 Revised 7/19/2005 . 8%HIBIT "C" 9 SELECTION PROCESS ATTACHMENT Customer Outside 100 sq.ft.of outside Entire Area Covered=+2 Waiting Area waiting area=+2 Some Area Covered=+1 (excluding parking Seating for Customers=+2 'ace and land Security!Fencing No Damaged Areas=0 Yard Motion Beams=+2 •Damage is areas tint ailow Damaged Areas=-5 Recorded Video Camera Unintended access to =+5 vehicka Hazardous Material Proper Storage& Improper Storage/Item Handler Permits Solid=-2;Liquid=-5 0 Tow Trucks Minimum of 3 Certified Additional Certified Class A Class A Trucks Trucks 1-3=+2;4+=+5 Tow Truck Broken or Damaged Equipment=-1 per item Missing or Non-Useable Equipment Equipment -5 per item 'equired Equipment Specified on Tow Truck bon Guide" Pull Notices On File=0 Missing=-5 per driver. Business Records On Site=0 Readily Accessible=+2 Not readily accessible= Immediate Retrieval orReoords -5 Comments: Subtotal of Tow Service History Points Subtotal of Facility Inspection Points Total Points In Depth Investigation Conducted By: Print Name and Rank Reviewed/Approved By: Print Name and Rank Revised 7/19/2005 i EXHIBIT "D" EXHIBIT City of San Bernardino Selection Process of Tow Carriers The attached documents are samples of those the SBPD proposes to use when positions become available for tow carriers to provide service to the City of San Bernardino. The documents are in order in which they will be used during the selection process. 1. The SBPD gives notice of an available tow carrier position via advertisement in a local newspaper,Channel 3 posting and notice to local Chamber of Commerce. 2. Interested tow carriers request application packages through the SBPD Traffic Unit. 3. The SBPD Traffic Unit mails or gives an application package to the requesting tow carrier: a) Letter acknowledging request for package b) Tow Rotation List Application/Copy of current Agreement For Tow Services 4. Tow Carrier returns completed application by due date for consideration. 5. The SBPD reviews the returned application to ensure that the applicant meets the minimum criteria: a) Criteria met,letter sent to tow carrier b) Criteria not met,letter sent to tow carrier 6. Application package assigned for completion: a) Contact Government agencies to whom tow carver provides service b) Business licensing c) Certificate of occupancy d) Hazmat handlers permits 7. Conduct inspection: a) Licensing/Hazmat requirements compliance b) Rate posting compliance c) Tow Service Agreement compliance d) Total point value calculated from selection process attachment 8. Completed application and inspection packages given to City Council for selection of tow carrier(s)with rankings based on total points. 9. Required documents filed for formal entry of an Agreement For Tow Service with selected tow carrier. a) Request for Council Action b) Drafted Resolution c) Agreement for Tow Services between the City of San Bernardino and tow carrier i EXHIBIT"E" t EXHIBIT"Ell RIGHTS OF PERSONS WHOSE VEHICLES ARE TOWED AT THE REQUEST OF THE CITY OF SAN BERNARDINO (TO BE POSTED IN VISIBLE LOCATION IN TOWING CARRIER'S OFFICE) Tow operators who tow vehicles at the request of the City of San Bernardino operate under an Agreement for Tow Services with the City. The agreements require the tow operators to comply with certain rules and provides the following rights to the owner of a towed vehicle. The owners'rights are summarized as follows: 1. Notice to the registered and legal owners of the vehicle within 10 days of being towed of location of vehicles and charges. 2. Normal business hours are 8:00 a.m. to 5:00 p.m. Monday through Friday except recognized holidays of New Year's Day,Martin Luther King Day,Presidents'Day,Memorial Day, Independence Day,Labor Day,Veteran's Day,Thanksgiving Day and Christmas Day. 3. Business hours to be posted for viewing by the public. 4. Tow operators shall respond to after hours release within thirty minutes. 5. Tow operators shall accept all guaranteed forms of payment and widely accepted credit cards without a surcharge. 6. If a stored or impounded vehicle is not released once proper documentation and identification are provided and all charges paid,further storage charges shall cease as of the date of presentation and payment. 7. Itemized invoices shall be provided. 8. Right to file a complaint with the City of San Bernardino.