City of Dubuque Tow Contract - Change of Ownership (Wenzel's) Copyrighted
December 3, 2018
City of Dubuque Consent Items # 12.
ITEM TITLE: City of Dubuque Tow Contract- Change of Ownership
SUMMARY: City Manager recommending approval of changes to the
Tow Contract for FY2019-FY2021 to reflect the change of
ownership of Wenzel's Towing.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Tow Contract FY2019-FY2021-NNM Memo City Manager Memo
Staff Memo Staff Memo
Supporting Letter Staff Memo
THE CITY OF Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Towing Contract FY2019-FY2021
DATE: November 27, 2018
Assistant Chief Jeremy Jensen recommends City Council approval of changes to the
Tow Contract for FY2019-FY2021 to reflect the change of ownership of Wenzel's
Towing.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen��—�
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Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Mark Dalsing, Chief of Police
Jeremy Jensen, Assistant Chief of Police
THE CITY OF
DUB E MEMORANDUM
Masterpiece on the Mississippi
Date: November 26, 2018
To: Michael C. Van Milligen
City Manager
From: Jeremy Jensen
Assistant Chief of Police
Re: Towing Contract: FY2019-FY2021
INTRODUCTION
The purpose of this memorandum is to notify City of Dubuque leaders reference a
change in ownership of Wenzel's Towing, the current contracted tow company for the
City of Dubuque.
BACKGROUND
On July 1, 2018, Wenzel's Towing was awarded the FY2019-FY2021 tow contract
based upon a selection criterion that was vetted through members of various
departments within the City organization.
DISCUSSION
On November 2, 2018, I received an email from a Jake Schroeder, a representative of
Jason Rauen, stating effective 11/1/18 at approximately 4 p.m., Rauen had taken
ownership of Wenzel's Towing. Rauen is the current owner of Tegler's Towing,
McCann's Towing, and Burt Steve Towing. It should be noted that McCann's Towing
had also presented the only other proposal for the FY2019-FY2021 tow contract.
In a letter dated November 20, 2018 (see attached), attorney Todd Locher, representing
Jason Rauen, states that Rauen intends to keep the Wenzel's Towing contract, under
the Wenzel's name and with "greater resources" at their disposal. The letter assures
that all assets, equipment, and the operating manager of Wenzel's Towing would
remain the same. The letter also assures that the contract can be carried out as written
and with no change in service to the citizens or the City organization.
It is our belief that a change in ownership, while maintaining the existing resources,
does not affect the contract. Essentially, the practical application of the contract does
not change. It is the opinion of City Attorney Brumwell that the City of Dubuque
generally does not want to interfere with private arrangements of parties as they relate
to the sale of a business.
RECOMMENDATION
We recommend that the contract be reassigned to the new owner of Wenzel's Towing.
ACTION REQUESTED
Action requested is to incorporate the above changes into Tow Contract for FY2019-
FY2021 and to approve the contract change, only based upon ownership.
LOCHER & DAVIS rLc
ATfORNEYS AT LAW
202 2ND AVENl1E NW
P. O. BOX 7
FARLEY, IA 52046
JoHN M. LocHEa c i 93�-zo i 3� TE�EPHONE: (563) 744-3359
T000 J. Locr+ea* FncsiMi�E: (563) 744-3350
GeoRce A. Davis
"A�so LicENSEo iN I�urvois WRITER�S E-MAIL'.
TLOCHERC�LOCHERL4W.COM
November 20, 2018
Jeremy Jensen
Assistant Chief of Police
City o' Dubuque
855 Central Ave
Dubuque IA 52001
RE: Wenzel Towing, Inc.
Dear Assistant Chief Jensen:
As you know, Jason J. Rauen purchased Wenzel Towing, Inc. from the Roger Kunde
Estate effective November 1, 2018. Jason purchased from the Roger Kunde Estate all of the
units of Kunde Enterprises, LLC. Kunde Enterprises, LLC owned one hundred percent (100°/a)
of Wenzel Towing, including the Wenzel facility at Hughes Court and all of the tow trucks and
equipment owned by Wenzel Towing and Burt Steve Towing. Jason Rauen will retain all of the
equipment of Wenzel Towing, including Neal Sweeney, Wenzel Towing's operations manager.
Jason has an extensive business background. He has owned and operated businesses
for 20 years. Also, Jason has been running towing businesses since 2012. One of the towing
businesses that Jason Rauen owns and operates is McCann's Service, Inc. Thus, the
equipment and certified operators of McCann Service, Inc. will also be available to meet the
City of Dubuque's needs, if necessary. Thus, Wenzel Towing has greater resources and
greater capacity than Roger Kunde or the Kunde family had to meet the obligations of its
contract with the City of Dubuque.
Jason Rauen and all of the employees of Wenzel Towing look forward to fulfilling all of
the City of Dubuque's needs as expressed in the City of Dubuque Towing Service Contract
FY2019-FY2021 and hope to continue to serve the City for years to come. If you have any
further questions or require any other information, please feel free to contact me.
Very'truly ours,
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Todd . Locher
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