Loading...
HomeMy WebLinkAboutItem 06.u Date: Item No. AGREEMENT FOR TOWING SERVICES WITH MAREK’S TOWING & REPAIR, INC. Proposed Action Staff recommends adoption of the following motion: Move to approve Agreement for Towing Services with Marek’s Towing & Repair effective January 1, 2018 through December 31, 2022. Overview Marek’s has served as the primary service provider for towing and impounding vehicles for the Lakeville Police Department since 2008. Passage of this motion will continue this relationship. Primary Issues to Consider • Rates have remained the same since 2013. • Rates are subject to annual re-negotiation effective 1/1/2019. Rates will continue at current rates unless proposed rates are received at least 60 days prior to the end of each year, and rates are agreed on by November 30. • The agreement can be canceled by either party upon 30 days written notice. Supporting Information • 2018 Operating Budget includes $14,000 for forfeiture/impound tows and $1,000 for fleet tows • 2018 Revenue Budget for towing administration fee is $8,800 Financial Impact: $ Budgeted: Y☒ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Diane Bastyr, Business Manager December 18, 2017 15,000 62981v8 1 AGREEMENT FOR TOWING SERVICES THIS AGREEMENT, entered into this 18th day of December 2017 between the CITY OF LAKEVILLE ("City") and MAREK'S TOWING & REPAIR, INC. ("Contractor"). IN CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED HEREIN, THE CITY AND CONTRACTOR AGREE AS FOLLOWS: 1. CONTRACTOR'S SERVICES. The Contractor agrees to provide all services required by the City for towing of vehicles and removing debris from the roadway as a result of accident vehicles it tows. These services shall be provided in accordance with the terms of this Agreement. The Contractor shall furnish the equipment, personnel, supplies, and facilities sufficient to fulfill all the terms of this Agreement. 2. PERSONNEL. Contractor shall check all drivers provided for the towing of vehicles under this Contract for current driver's licenses and review their criminal history prior to their assignment. Contractor agrees to train all drivers in the proper towing of vehicles containing hazardous materials in accordance with federal and state law. 3. STORAGE FACILITY. The Contractor shall provide a locked storage facility for towed vehicles with a security fence along the entire perimeter. The facility shall have space for no fewer than fifty (50) vehicles and shall be within Lakeville city limits. 4. OPERATION. No vehicle shall be towed under this Agreement without the specific authorization from an employee or agent of the City. All vehicles shall be towed, not driven (except when authorized), without damage to the vehicles, to the storage facility. Contractor shall maintain and provide a telephone answering service and a FAX machine twenty-four (24) hours a day for the purpose of receiving requests for service pursuant to this Agreement, and shall provide and maintain mobile radio service with all towing units. 5. NOTIFICATION OF OWNER AND LIENHOLDER. A. Upon deposit of a towed vehicle in the storage facility, the Contractor shall send to the registered owner and lienholder of record within five (5) days, by certified mail, a notice specifying the date and place of the tow, the year, make, model, and serial number of the vehicle towed, and the procedure to reclaim the vehicle. A record of this notice shall be retained by the Contractor. B. If a vehicle remains unclaimed after thirty (30) days from the date the notice was sent under paragraph 5A above, a second notice shall be sent by certified mail, return receipt requested, to the registered owner, if any, of the unauthorized vehicle and to all readily identifiable lienholders of record. 62981v8 2 6. RELEASE. No vehicle shall be released without proper proof of ownership. Vehicles ordered held by the Police Department shall not be released without written authorization from the Department. Vehicles not kept on a "police hold" shall be released by the Contractor after obtaining proper proof of ownership and proof of current automobile liability insurance, if the vehicle is to be driven out of the impound lot. The Contractor reserves the right to specify the manner of payment for all charges and fees. Contractor agrees to supply personnel and reasonable hours for the release of vehicles. Minimum hours shall be 7:00 a.m. to 5:30 p.m. Monday through Friday, two (2) hours on Saturday, two (2) hours on Sunday, and two (2) hours on holidays, with the exception of Christmas Day, New Years Day, Thanksgiving, and Easter, when they must be open one (1) hour. Contractor agrees to provide temporary service beyond these hours at the request of the Police Department. The Contractor shall release vehicles after normal business hours within a reasonable time. The Contractor may charge a reasonable service fee above and beyond the normal fee for vehicles released after normal business hours. 7. TOWING AND STORAGE CHARGES. The current rate schedule is attached hereto as Exhibit "A". All towing or storage charges shall be the responsibility of the vehicle owner. The rate schedule will be reviewed by the parties annually and adjusted by written addendum on an annual basis pursuant to Paragraph 17. 8. CITY TOWING ADMINISTRATIVE FEE. The Contractor agrees to pay the City Thirty-five and no/100 ($35.00) Dollars for clerical and administrative expenses for each vehicle, per incident, referenced in an impound report filed by the Police Department. This fee may be adjusted based on the City of Lakeville’s fee schedule. These fees shall be paid on a monthly basis. Vehicles not claimed and destroyed by the Contractor will be exempt from the administrative fee if the Contractor provides proof of salvage to the City. 9. RECORDS AND REPORTS. Contractor shall prepare a monthly report of all vehicles towed, stored, released, and still held, in a form acceptable to the City. This report shall be forwarded to the Police Department at the same time as payment of the administrative fee referenced in Paragraph 8. The report shall include the reasons why, if any, vehicles towed have not been released. All towing and impound records pertaining to services provided by the Contractor pursuant to this Agreement shall be available for inspection by the City upon request. 10. SALES AND/OR DISPOSAL. When the total of all charges for towing, storage, and other charges equals or exceeds the value of the vehicle impounded and/or the registered owner and lienholder of record voluntarily agree to same, the Contractor shall, with the permission of the Chief of Police, sell the vehicle at a Sheriff's sale or otherwise dispose of the vehicle by lawful means. The Chief of Police may authorize the lawful sale of other vehicles when so requested by the Contractor after proper notification has been made to the registered owner and lienholder of record. The Contractor shall report all transactions of sale or disposal, including the proceeds received, in the monthly report referenced above in Paragraph 9. The Contractor shall keep records and prepare an annual summary report by December 15 each year of all losses and profits from the sale or disposal of vehicles towed pursuant to this Agreement. 11. LIABILITY. The Contractor shall be responsible for the loss of, or damage to, any vehicle, equipment thereon, and contents due to the fault of the Contractor or its agents, from the 62981v8 3 time Contractor or its agent takes custody of the vehicle, whether that be by signing the receipt for the vehicle or by hooking or hoisting the vehicle. The Contractor shall be responsible for the safekeeping of personal property with or on the vehicle, as identified on the vehicle impound form. 12. INDEMNIFICATION. The Contractor shall indemnify and hold harmless the City, its employees and agents, from and against all claims, damages, losses, and expenses, including attorney's fees, which it may suffer or for which it may be held liable because of bodily injury, including death, or damage to property, including loss of use, as a result of the fault of the Contractor, its employees, agents, or subcontractors in the breach of performance of this Agreement. 14. INSURANCE. The Contractor shall obtain and maintain liability insurance for coverage of not less than the following amounts: General Liability (or in combination with an umbrella policy) $1,000,000 Each Occurrence $1,000,000 Personal & Advertising Injury $1,000,000 Products Completed Operations Aggregate $1,000,000 Annual Aggregate Auto Liability $1,000,000 Combined Single Limit - Bodily Injury & Property Damage Owned Vehicles (if Provider has such vehicles) Hired & Non-Owned Workers Compensation Statutory Limits $100,000 Each Accident $500,000 Policy Limit $100,000 Each Disease Hazardous Load As required by federal/state laws Garage Liability $60,000 each occurrence for vehicles in the care, custody, or control of the Contractor The insurance shall cover all operations under this Agreement whether undertaken by the Contractor, subcontractors, or anyone employed or retained by the Contractor. Coverage for bodily injury and property damage shall be written under Comprehensive General and Comprehensive Automobile Liability policy forms, including coverage for all owned, hired, and non-owned motor vehicles. The insurance shall also cover the indemnification liability set forth in Paragraph 12. The insurance company shall deliver to the City insurance certificates of all required coverages on a form acceptable to the City, signed by an authorized representative of the insurer. The authorized representative shall have in effect, errors and omissions coverage in limits of not less than One 62981v8 4 Hundred Thousand and no/100 ($100,000.00) Dollars per occurrence and Three Hundred Thousand and no/100 ($300,000.00) Dollars aggregate. The City shall be named as an additional insured. 15. NON-DISCRIMINATION. The Contractor agrees during the life of this Agreement not to discriminate against any employee, application for employment, or other individual because of race, color, sex, age, creed, national origin, sexual preference, or any other basis prohibited by federal, state, or local law. The Contractor will include a similar provision in all subcontracts entered into for performance of this Agreement. 16. SUBCONTRACTORS. The Contractor shall not subcontract all or any portion of this Agreement without prior written approval of the City, except for assistance in emergency or unforeseen circumstances. All subcontractors shall be bound by, and covered by all terms of this Agreement. 17. TERM. This Agreement shall commence January 1, 2018 and terminate on December 31, 2022. The fees for service are subject to re-negotiation annually prior to the next contract year. Marek’s shall propose an updated schedule of fees for future each contract year 60 days prior to the end of each year. If the parties do not agree on a new fee schedule by November 30th of each year, the contract will terminate at midnight on December 31st of that year. If Marek’s fails to supply a proposed fee schedule increase within the time provided, the contract shall continue for the following year at the current rate. This Agreement may also be terminated by either party upon thirty (30) days written notice if the other party fails to perform in accordance with the terms of this Agreement through no fault of the terminating party. 18. INDEPENDENT CONTRACTOR. At all times and for all purposes hereunder, the Contractor is an independent contractor and not an employee of the City. No statement herein shall be construed so as to find the Contractor an employee of the City. 19. COMPLIANCE WITH LAWS. In providing services pursuant to this Agreement, the Contractor shall abide by all statutes, ordinances, rules, and regulations pertaining to the performance of this Agreement. Any violation shall constitute a material breach of this Agreement and entitle the City to terminate this Agreement. 20. NON-ASSIGNABILITY. The Contractor may not assign its interest in this Contract or subcontract with third parties. If Kevin J. Marek ceases to be a full-time employee of Contractor, or if more than forty-nine (49%) percent of the Contractor's stock is owned by someone other than Kevin J. Marek and his wife, the City may terminate this Contract upon thirty (30) days written notice. 21. WHOLE AGREEMENT. This Agreement embodies the entire agreement between parties including all prior understanding and agreements, any may not be modified except in writing, signed by all parties. 22. STATUTORY COMPLIANCE. Minnesota Statutes Chapter 168B is incorporated herein by reference. To the extent anything in this Agreement conflicts with any current or future 62981v8 5 statutory requirements, this Agreement shall be deemed amended to be in conformity with the statutory requirements. CITY OF LAKEVILLE MAREK'S TOWING & REPAIR, INC. BY: ______________________________ BY: _____________________________ Douglas P. Anderson, Mayor Kevin J. Marek, C.E.O. AND _____________________________ Charlene Friedges, Clerk 62981v8 1 EXHIBIT “A” MARKE’S TOWING SERVICE FEES JANUARY 1, 2018 Standard Wheel Lift or Flatbed Tow $110.00 Motorcycles, Corvettes, Porsches, Classic Cars $125.00 Dolly $50.00 Clean up $10.00 & up Service calls, Tire Change, Jump Start, Lock Outs $55.00 Lockout with child in car NO CHARGE Daily Storage Fee $30.00 *After Hour Release Fee $55.00 **Administration Fee $25.00 Fuel Surcharge $10.00 Winches, Rollovers, Recovery, Etc. will be charged an additional fee *After Hour Release is available during holiday and weekends for an extra fee between the hours of 8:00 a.m. - 5:00 p.m. **Administration Fee is used for sending certified letters to registered owners and lien holders. The City of Lakeville also charges a Towing Administration Fee of $35.00 per vehicle per incident for clerical and administrative expenses. This fee may be adjusted based on the City of Lakeville’s fee schedule. Release hours: Monday through Friday 7:00 a.m. - 5:30 p.m. Saturday through Sunday 10:00 a.m. – noon Holidays 11:00 a.m. – noon