Towing Servivces Contract Renewal Request and ChangesMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: City Towing Contract
DATE: April 19, 2012
Dubuque
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All-America City
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Police Chief Mark Dalsing is proposing changes to the City of Dubuque towing contract
which is set to expire on July 1, 2012.
The recommended changes to the contract are:
1) New insurance schedule language will result in a new set of insurance
attachments.
2) Based on a four year review of peak months, it is recommended that the
contractor's vehicle storage capacity be raised from 110 vehicles to 120 vehicles.
The inside storage capacity will remain at 30 vehicles but the outside storage
capacity will be raised from 80 to 90.
3) Allows for the City Manager to authorize changes to the schedule of charges
when the contractor petitions the City within 30 days of the contract's anniversary
date. The change allows for City Manager approval as opposed to City Council
approval. This was a recommendation from the Legal Department as it was
believed to be the proper channel for this type of issue.
An additional clause will also be added which allows the City Manager the right to
review and revise previously approved rate increases within 30 days of the
contract's anniversary date, and "roll back" previously authorized increases if the
condition that originally caused the increase has changed. An example of this is
the fluctuation of fuel costs year to year.
4) The final change being recommended is the addition of sections to the contract
which makes the towing contractor responsible for notification to owners or lien
holders of abandoned vehicles and also authorizes the towing contractor to act
as our private entity for the disposal of abandoned vehicles. In essence, we are
transferring the notification and disposal duties from the Finance Department to
the towing contractor.
There is also a provision in the section that allows the City to withdraw the
authorization for these services from the contractor and resume them through the
City with ten days notice should a major problem with the process be identified.
The vendor selection process and selection criteria will remain the same.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:sv
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Mark Da!sing, Chief of Police
2
THE CITY OF
DUB TE MEMORANDUM
Masterpiece on the Mississippi
April 16, 2012
TO: Michael C. Van Milligen
City Manager
FR: Mark M. Dalsing
Chief of Police
RE: City Towing Contract
INTRODUCTION
This memo will review proposed changes to the City of Dubuque towing contract which
is set to expire on July 01, 2012
BACKGROUND
The current City of Dubuque towing contract with Wenzel Towing is set to expire on
07/01/12. In preparation, Assistant Chief of Police Terry Tobin, with assistance from the
Finance Department and Legal Department, has reviewed the current contract general
specifications and has recommended changes to the contract to be implemented with
the upcoming new contract.
CONCLUSION & RECOMMENDATION
The attached memo from Asst. Chief Tobin elaborates on the changes but the changes
are synopsized as follows:
1) New insurance schedule language will result in a new set of insurance
attachments.
2) Based on a four year review of peak months, it is recommended that the
contractor's vehicle storage capacity be raised from 110 vehicles to 120 vehicles.
The inside storage capacity will remain at 30 vehicles but the outside storage
capacity will be raised from 80 to 90.
3) Allows for the City Manager to authorize changes to the schedule of charges
when the contractor petitions the City within 30 days of the contract's anniversary
date. The change allows for City Manager approval as opposed to City Council
approval. This was a recommendation from the Legal Department as it was
believed to be the proper channel for this type of issue.
An additional clause will also be added which allows the City Manager the right to
review and revise previously approved rate increases within 30 days of the
contract's anniversary date, and "roll back" previously authorized increases if the
condition that originally caused the increase has changed. An example of this is
the fluctuation of fuel costs year to year.
4) The final change being recommended is the addition of sections to the contract
which makes the towing contractor responsible for notification to owners or lien
holders of abandoned vehicles and also authorizes the towing contractor to act
as our private entity for the disposal of abandoned vehicles. In essence, we are
transferring the notification and disposal duties from the Finance Department to
the towing contractor.
There is also a provision in the section that allows the City to withdraw the
authorization for these services from the contractor and resume them through the
City with ten days notice should a major problem with the process be identified.
The vendor selection process and selection criteria will remain the same.
The previous selection committee will be once again asked to participate and will
include the following individuals or their designees: Ken Tekippe, Sue Brennan, Tim
Horsfield, John Klostermann, Mark Ludescher, Cory Sommer and Terry Tobin.
I concur with the contract changes as described in Assistant Chief of Police Terry
Tobin's memo and recommend the changes be made.
ACTION REQUESTED
Review of this memo and supporting documentation and approval of changes.
Attachments: Tobin Memo
Proposed Insurance Attachments
cc: Barry Lindahl
Ken Tekippe
CITY OF DUBUQUE
INSURANCE REQUIREMENTS FOR TOWING
Attachment A
1
Insurance Schedule T
shall furnish a signed Certificate of Insurance to the City of
Dubuque, Iowa for the coverage required in Exhibit I prior to commencing work and
at the end of the project if the term of work is longer than 60 days. Providers
presenting annual certificates shall present a Certificate at the end of each project
with the final billing. Each Certificate shall be prepared on the most current
ACORD form approved by the Iowa Department of Insurance or an equivalent.
2. All policies of insurance required hereunder shall be with a carrier authorized to do
business in Iowa and all carriers shall have a rating of A or better in the current A.M.
Best's Rating Guide.
3. Each Certificate shall be furnished to the contracting department of the City of
Dubuque.
4. Failure to provide minimum coverage shall not be deemed a waiver of these
requirements by the City of Dubuque. Failure to obtain or maintain the required
insurance shall be considered a material breach of this agreement.
5. Subcontractors and sub subcontractor performing work or service shall provide a
Certificate of Insurance in accord with Exhibit I.
6. All required endorsements to various policies shall be attached to Certificate of
insurance.
7. Whenever a specific ISO form is listed, an equivalent form may be substituted
subject to the provider identifying and listing in writing all deviations and exclusions
that differ from the ISO form.
8. Provider shall be required to carry the minimum coverage /limits, or greater if
required by law or other legal agreement, in Exhibit I.
1
CITY OF DUBUQUE
INSURANCE REQUIREMENTS FOR TOWING
Attachment B
EXHIBIT
WORKERS COMPENSATION AND EMPLOYERS LIABILITY
The limit of coverage for employer's liability shall be at least $100,000 each
accident, $100,000 each employee by disease, and $500,000 policy limit for bodily
injury by disease.
Policy shall include an endorsement waiving right of recovery against City of
Dubuque, Iowa.
AUTOMOBILE LIABILITY:
Bodily injury and property damage limit of liability: $ 1,000,000
COMMERCIAL GARAGE LIABILITY:
General Aggregate Limit $ 2,000,000
Products - Completed Operation Aggregate Limit $ 1,000,000
Personal and Advertising Injury Limit $ 1,000,000
Each Occurrence Limit $ 1,000,000
Fire Damage Limit (any one occurrence) $ 50,000
Medical Payments $ 5,000
i. Coverage shall be written on an occurrence, not claims made, form.
All deviations from the standard ISO Garage Liability form shall be
clearly identified.
ii. Include an endorsement indicating that coverage is primary and non-
contributory.
iii. Include endorsement to preserve Governmental Immunity, sample
attached.
iv. Include additional insured endorsement for: "The City of Dubuque,
including all its elected and appointed officials, all its employees and
volunteers, all its boards, commissions and/or authorities and their
board members, employees and volunteers.
GARAGE KEEPERS LIABILITY (to include "on- hook "): $ 100,000
Comprehensive
Collision
This coverage shall be primary and not excess.
2
CITY OF DUBUQUE
INSURANCE REQUIREMENTS FOR TOWING
Attachment C
1. Nonwaiver of Governmental Immunity. The insurance carrier expressly agrees and
states that the purchase of this policy and the including of the City of Dubuque, Iowa
as an Additional Insured does not waive any of the defenses of governmental
immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4
as it is now exists and as it may be amended from time to time.
2. Claims Coverage. The insurance carrier further agrees that this policy of insurance
shall cover only those claims not subject to the defense of governmental immunity
under the Code of Iowa Section 670.4 as it now exists and as it may be amended
from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be
covered by the terms and conditions of this insurance policy.
3. Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible
for asserting any defense of governmental immunity, and may do so at any time and
shall do so upon the timely written request of the insurance carrier.
4. Non - Denial of Coverage. The insurance carrier shall not deny coverage under this
policy and the insurance carrier shall not deny any of the rights and benefits
accruing to the City of Dubuque, Iowa under this policy for reasons of governmental
immunity unless and until a court of competent jurisdiction has ruled in favor of the
defense(s) of governmental immunity asserted by the City of Dubuque, Iowa.
No Other Change in Policy. The above preservation of governmental immunities
shall not otherwise change or alter the coverage available under the policy.
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THE CITY OF
DUB TE MEMORANDUM
Masterpiece on the Mississippi
DATE: March 30, 2012
TO: Chief Mark Dalsing
FROM: Assistant Chief Terry Tobin
RE: 07/01/12 Towing Contract Renewal
INTRODUCTION:
This memo will outline proposed changes to the City of Dubuque towing contract,
set to expire on 07/01/12.
BACKGROUND:
The current City of Dubuque towing contract with Wenzel Towing is set to expire on
07/01/12. As we prepare to request proposals from tow contractors for the next three
year towing contract period, we have reviewed the current contract general
specifications for items needing updating or changes in terms to better meet the needs
of the City in regards to the contract. The contract general specifications are sent to the
towing contractors as part of the request for proposals and also form the basis for the
terms of the towing contract. In reviewing these specifications, there are several areas
that should be considered for revisions in either requirements listed or language.
DISCUSSION:
The following will detail areas of the current towing contract that were identified
as areas that either needed to be changed or could be changed to better meet
the operational needs of the City.
• Ken TeKippe from the Finance Department and Frank O'Connor of O'Connor
and Associates Insurance Agency reviewed the current contract's insurance
requirements and attachments and have drawn up a new set of insurance attachments,
which resulted in updating the insurance schedule language. Required insurance
amounts and coverage's have remained the same as in the previous contract.
• The next area that should be considered for updating or revision under the
Technical Standards section is section 4. Section 4 covers the facilities of the business
and in particular lists the requirements for storage of towed vehicles. The current
contract and general specifications require the contractor to have inside storage
facilities for not less than 30 vehicles and outside storage facilities for not less than 80
vehicles.
The table below shows an analysis of vehicles towed by Wenzel Towing under the City
contract for the last four years during two winter months, January and February, and
two summer months, July and August. This analysis shows that on average, the towing
contractor will need to be able to provide storage for 120 vehicles per month.
Total City Initiated Vehicle
Year
January Februar
Jul
August Average
2008
117
117
153
93
120
2009
129
105
95
82
102.75
2010
118
98
102
84
100.5
2011
144
110
81
110
111.25
Average
127
107.5
108
92.25
108.69
Tow Adjustment (10 %1 for Storage of Accident Tows
2008
128.7
128.7
168.3
102.3
132
2009
141.9
115.5
104.5
90.2
113.025
2010
129.8
107.8
112.2
92.4
110.55
2011
158.4
121
89.1
121
122.375
Average
139.7
118.25
118.525
101.475
119.488
I would recommend that we consider increasing the total storage requirement to 120
vehicles based on our current monthly average with a requirement that capacity for
inside storage of vehicles remain at 30 vehicles and the outside requirement be 90
vehicles. This change increases the outside storage capacity by 10 vehicles from the
previous contract.
• The next change being recommended for the new contract is in section 10
dealing with the posting and providing of a schedule of charges. The previous contracts
have had a provision allowing the contractor to petition the City within 30 days of the
contract's anniversary date for approval of proposed changes in rates related to the City
contract. For the new contract, it is proposed that the contractor still has the option of
petitioning for a change in rates each year within 30 days of the contract anniversary
date, but the approval or denial would be at the sole discretion of the City Manager,
rather than needing to be brought before the full City Council for approval or denial.
Additionally, a clause has been added allowing the City Manager the right to review and
revise previous rate increases during the 30 day period preceding the contract
anniversary date subsequent to any previously approved rate or fee increases. This
allows the City the option of rolling back previously approved increases if the conditions
supporting an increase would substantially subside, i.e. a rate increase based on
increased fuel costs, then the following year the fuel costs substantially decrease or go
back to previous levels. These provisions would be worded in the new contract as
follows:
An increase in rates and fees on the rate sheet shall not be requested by the Contractor
except within thirty (30) days prior to the anniversary date each year of the contract and
may be granted by the City Manager in the City Manager's sole discretion.
In the event an increase in rates and fees is approved by the City Manager, the City
Manager reserves the right to review and reduce rates and fees based on a material
change in the conditions supporting the approved increase. Such a review by the City
Manager may only occur within thirty (30) days prior to anniversary dates of the
Contract subsequent to the increase in rates and fees.
• The final change being recommended for the FY2013 -2015 towing contract
involves a major change in procedures related to notification to owners /lien holders of
vehicles impounded by the City and subsequently deemed to be abandoned and the
disposal of those abandoned vehicles. The changes being recommended are based on
provisions used by the city of Cedar Rapids in their towing contract and greatly reduce
the workloads of the City Finance and Police departments related to abandoned
impounded vehicles.
Currently, the procedures spelled out in Iowa Code section 321.89 related to owner /lien
holder notification of abandoned impounded vehicles and the disposal of such vehicles
has been handled by the City through the Finance Department. The State Code allows
the City to employ a private entity to handle notification and disposal of vehicles
impounded by the City and later deemed to be abandoned. We have added sections to
the contract that make the towing contractor responsible for the notification to
owners /lien holders of abandoned vehicles and also authorizes the towing contractor to
act as our private entity for the disposal of abandoned vehicles. In essence, we are
transferring the notification and disposal duties from the Finance Department to the
towing contractor. We have also added a provision in the section that allows the City to
withdraw the authorization for these services from the contractor and resume them
through the City with ten days notice should a major problem with the process be
identified.
We plan to review these changes with prospective bidders, and fully expect to go
through a transitional period with the selected contractor instructing and providing
resources to bring the contractor up to speed in completing these functions as part of
their responsibilities in fulfilling the terms of the contract. The new sections specifying
these requirements as part of the contract are detailed below:
14. NOTIFICATION:
The City hereby authorizes the Contractor to act as its private entity to dispose of
abandoned (not claimed) vehicles. The Contractor agrees to remove all such vehicles
and store them without cost to the City. All notifications to persons or businesses
having an interest or claim to such vehicles will be the responsibility of the Contractor
and will be made pursuant to Section 321.89 of the State Code of Iowa, as amended.
The City reserves the right to withdraw the authority granted by this section in its sole
discretion with or without cause upon 10 days written notice delivered to the Contractor.
16. DISPOSAL OF VEHICLES:
The City hereby authorizes the Contractor to act as its private entity to dispose of
abandoned (not claimed) vehicles. The Contractor agrees to remove all such vehicles
and store them without cost to the City. Sales or disposal to a demolisher of the
vehicles towed under these specifications shall be pursuant to Section 321.89 of the
State Code of Iowa, as amended. Sales shall be conducted at a time, place and
manner to be determined by the Contractor.
The sales may be held upon the premises of the towing service. Disposition of the
proceeds of the sales shall be made in accordance with the provisions of the laws of the
State of Iowa. The City shall not be responsible for paying any cost to the towing
service.
The Contractor shall provide to the City Police Department the following information on
every vehicle disposed of by demolition or auction:
a. Year, make, model, and VIN of the vehicle
b. Date of disposal or sale
c. Name of purchaser or demolisher of vehicle
d. Amount received for vehicle (when requested by City of Dubuque)
e. Bill for towing, storage and notification accrued on each vehicle
The City reserves the right to withdraw the authority granted by this section in its sole
discretion with or without cause upon 10 days written notice delivered to the Contractor.
One item that should be pointed out regarding the above changes is the process for
selling or auctioning off impounded vehicles that have been deemed abandoned. The
City Finance Department has conducted sealed bid auctions among local salvage
companies for disposal of abandoned vehicle lots. Under the proposed contract
changes, the towing contractor would decide how they want to dispose of those
abandoned vehicles. The tow contractor may continue to use a sealed bid process
among local salvage companies, may decide to sell exclusively to one salvage
company, or may decide to sell to non -local salvage companies, or individuals for
salvage. The tow contractor will decide the process that works best for them regarding
the disposal of abandoned vehicles, as long as they follow the requirements of State
Code section 321.89.
All of the above proposed changes to the upcoming FY2013 -2015 City towing contract
have been reviewed by the City Legal Department and City Finance Department and
they are in agreement with them.
RECOMMENDATION: I would recommend, along with the City Legal and Finance
Departments, that the above proposed changes be adopted for inclusion with the 2012-
2015 City of Dubuque Towing Contract.
ACTION REQUESTED: Review of the above memo regarding the proposed changes
for the upcoming City of Dubuque towing contract by both you and City Manager
Michael Van Milligen and approval of the suggested changes.
cc: City Finance Department
City Legal Department