Towing Services Amendment to Contract with Wenzel for Rate IncreaseMasterpiece on the Mississippi
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Terry Tobin, Acting Chief of Police
Michael C. Van `tii igen
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Request by Wenzel Towing to Increase Rates Related to the City of
Dubuque Towing Contract
DATE: June 1, 2011
The City of Dubuque entered into a three -year contract with Wenzel Towing on July 1,
2009, expiring June 31, 2012. This contract designates Wenzel Towing as the service
to be used for vehicle towing requests made by the various divisions of City government
and includes storage services for vehicles towed at the request of the City and also
towing services for City -owned vehicles. As part of that contract, Wenzel Towing
submitted a rate and fee schedule to be used for determining fees applicable to City
contract tows.
Acting Chief of Police Terry Tobin is recommending approval of a request from Wenzel
Towing for an increase in fees for the remainder of the contract period related to the
increase in fuel costs.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
THE CITY OF
DUB UE MEMORANDUM
Masterpiece on the Mississippi
DATE: June 2, 2011
TO: Michael Van Milligan, City Manager
FROM: Terry Tobin, Acting Police Chief
RE: Request by Wenzel Towing to increase rates related to the City of Dubuque
towing contract
INTRODUCTION
Wenzel Towing, the city's contracted tow service, is requesting the City Towing
contract be opened to allow adjustments in their fee structure to allow for
increased operating expenses their business is experiencing related to increases
in the cost of diesel fuel.
BACKGROUND
The City of Dubuque entered into a three year contract with Wenzel Towing of
Dubuque on July 1, 2009, expiring June 31, 2012. This contract designates
Wenzel Towing as the service to be used for vehicle towing requests made by
the various divisions of city government and includes storage services for
vehicles towed at the request of the city and also towing services for city owned
vehicles. As part of that contract, Wenzel Towing submitted a rate and fee
schedule to be used for determining fees applicable to city contract tows.
Section 10(b) of the towing contract addresses rate changes during the time
frame of the contract and states "Rates and fees on the rate sheet shall not be
changed except within thirty (30) days prior to the anniversary date each year of
the Contract and only if approved by the City." Wenzel Towing is requesting
increases in the charges listed on the fee schedule to allow them to help cover
their increased operating costs related to diesel fuel expense.
DISCUSSION
There are two separate fee schedules in the tow contract. Group 1 fees are tow
services for vehicles not owned by the City of Dubuque, but for which service is
performed as a result of a call from a City of Dubuque employee. Group 2 fees
apply to those vehicles owned or leased by the City of Dubuque and services
performed as a result of a call from a City of Dubuque employee. In the current
contract fee schedules, Group 1 and Group 2 fees mirror each other. This
remains the case with the proposed rate increases, Group 1 and Group 2 fees
continue to match, i.e. both are proposed to increase equally.
Wenzel Towing is requesting increases be allowed in their City of Dubuque tow
contract fee schedule as follows (both to Group 1 and Group 2 fee schedules):
Standard Tow (from 6:00 A.M. to 6:00 P.M.)- - -from $45.00 to $51.75 +15%
Night Tow (from 6:00 P.M. to 6:00 A.M.) from $55.00 to $63.25 +15%
Dolly Fee from $35.00 to $40.25 +15%
Winching (1 half hour) from $40.00 to $46.00 +15%
Winching (after 1 half hour) from $40.00 to $46.00 +15%
Standby Time (1 half hour) from $30.00 to $34.50 +15%
Standby Time (after 1 half hour) from $25.00 to $28.75 +15%
Mileage Outside City Limits from $2.75/mi. to $3.15/mi. +15%
Show Up Fee from $26.00 to $29.90 +15%
Go Jacks from $10.00 to $11.50 +15%
Class C (large tow units) towing and /or recovery
First hour (per unit) from $125.00 to $143.75/hr. +15%
After first hour (per unit) from $125.00 to $143.75/hr. +15%
As justification for the increase in these fees, Wenzel Towing cites the increase
in operating costs related to diesel fuel, which is the fuel utilized for all of their
towing equipment. Wenzel Towing cites figures from the U.S. Energy
Information Administration of the United States Department of Energy showing
the increase in retail prices for No. 2 diesel fuel in the Midwest going from
$2.51.2/gal. in July 2009, when the current contract fee structure went into effect,
to the price as of May, 2011 of $4.001 /gal. This equates to a 59% increase in the
cost of diesel fuel over the approximate two -year time frame of the current
contract and fee structure.
It should be noted that the majority of City of Dubuque initiated tows involve the use of
Wenzel Towing's smaller class A tow trucks, so the class C (large tow units) increases
will not be experienced by the vast majority of city initiated tows. City of Dubuque tows
consist primarily of the standard tow and night tow.
RECOMMENDATION
Based on the figures cited by Wenzel Towing showing the increased operating costs
related to the increased cost of diesel fuel, the proposed 15% fee increases for towing
services appear reasonable. This is only the second time in the history of Wenzel
Towing, as the contracted City of Dubuque tow service (20 years), they have requested
the contract be reopened to adjust rates. We believe the requested increases are fair in
relation to the increased cost of diesel fuel and recommend Wenzel Towing's request to
adjust their fees related to the city tow contract as detailed above.
ACTION REQUESTED
Action requested is for City Council consideration to amend the current City of Dubuque
tow contract fee schedule to allow for increases in the above cited fee categories.
Attached is the request and supporting documentation provided by Wenzel Towing
seeking changes in fees in the current City Towing contract.
City of Dubuque
Dubuque Police Department
ATTN: Assistant Chief Terry Tobin
AMENDED REQUEST OF WENZEL TOWING, INC.
FOR CHANGE OF RATES AND FEES UNDER
VEHICLE TOWING SERVICE CONTRACT
WITH
THE CITY OF DUBUQUE, IOWA
Wenzel Towing, Inc. hereby amends its list of Proposed Rates and Charges to the
form attached hereto as Exhibit "A" and withdraws its list of Proposed Rates and Charges
included in its original REQUEST OF WENZEL TOWING, INC. FOR CHANGE OF
RATES AND FEES UNDER VEHICLE TOWING SERVICE CONTRACT WITH
THE CITY OF DUBUQUE, IOWA
Wenzel Towing, Inc. further hereby submits this additional information in support
of its request for a change of rates and fees under the City of Dubuque Towing Service
Contract FY 2010 -2012. The U.S. Energy Information Administration communication
office advises that there are no Iowa specific tables available for the Midwest region.
Attached is Table 1 showing the States included in the Midwest (PADD II) and Table 2
showing the Midwest No. 2 Diesel Retail Sales by All Sellers (Dollars per Gallon) from
1994 to 2011.
Dated this 2nd day of June, 2011.
WENZEL TOWING, INC.
By:
K
Julien F. Wenzel, P sident
City of Dubuque
Dubuque Police Department
ATTN: Assistant Chief Terry Tobin
AMENDED REQUEST OF WENZEL TOWING, INC.
FOR CHANGE OF RATES AND FEES UNDER
VEHICLE TOWING SERVICE CONTRACT
WITH
THE CITY OF DUBUQUE, IOWA
Wenzel Towing, Inc. hereby amends its list of Proposed Rates and Charges to the
form attached hereto as Exhibit "A" and withdraws its list of Proposed Rates and Charges
included in its original REQUEST OF WENZEL TOWING, INC. FOR CHANGE OF
RATES AND FEES UNDER VEHICLE TOWING SERVICE CONTRACT WITH
THE CITY OF DUBUQUE, IOWA
Wenzel Towing, Inc. further hereby submits this additional information in support
of its request for a change of rates and fees under the City of Dubuque Towing Service
Contract FY 2010 -2012. The U.S. Energy Information Administration communication
office advises that there are no Iowa specific tables available for the Midwest region.
Attached is Table 1 showing the States included in the Midwest (PADD II) and Table 2
showing the Midwest No. 2 Diesel Retail Sales by All Sellers (Dollars per Gallon) from
1994 to 2011.
Dated this 2nd day of June, 2011.
WENZEL TOWING, INC.
B
Julien F. Wenzel, P sident
ATTENTION: SUBMIT SEPARATELY WITH GROUP II PRICING
IN SEALED ENVELOPE
List your proposed rates and charges (Prices must remain for the first year of the Contract.
Any fee or change may be negotiated only thirty days on or before the anniversary date
each year):
NOTE: The City of Dubuque does not guarantee or imply any specific number of
tows or other service that will occur during the life of this Contract.
GROUP I. Rates for Group I apply to those vehicles that are NOT owned by the City, but
for which service is performed as a result of a call from a Dubuque City Police
Officer. Group I will not apply to City owned or leased vehicles that are
included in Group [1.
GROUP I. Class A
Standard Tow From 6 :00 AMID 6:00 PM $ 51.75
Night Tow From 6 :00 PM to 6 :00 AM $ 63.25
Dolly Fee $ 40.25
Winching (1 half hour $ 46.00
Winchin After 1 half hour $ 46.00
Standby Time (1 half hour) $ 34.50
Standby Time (After 1 half hour) $ 28.75
Mileage Outside City Limits $ 3.15
Show Up Fee $ 29.90
Go Jacks $ 11.50
GROUP I. STORAGE
Cars, pickups, motorcycles (Outside storage) $ 15.00 per da
Cars, pickups, motorcycles (inside storage — by owner request) $ 20.00 per da
Trucks, tractors, busses $ 30.00 per da
Truck tractor trailers $ 30.00 per da
EXHIBIT "A"
$ 143.75
$ 143.75
ATTENTION: SUBMIT SEPARATELY WITH GROUP I PRICING
IN SEALED ENVELOPE
GROUP II. CLASS A.
First Hour (per unit)
10E
After First Hour (per unit)
List your proposed rates and charges (Prices must remain for the first year of the Contract.
Any fee or change may be negotiated only thirty days on or before the anniversary date
each year):
NOTE: The City of Dubuque does not guarantee or imply any specific number o f
tows or other service that will occur during the life of this Contract.
GROUP II: Rates for Group II apply to those vehicles that are owned or leased by the City
and service is performed as a result of a call from a City Police Officer or City
employee.
GROUP II. Class C: Towing and /or Recovery
[Wit MEI
$ 143.75
143.75
16
Standard Tow
From 6:00 AM to 6:00 PM
$ 51.75
Night Tow
From 6:00 PM to 6:00 AM
$ 63.25
Dolly Fee
$ 40.25
Winching (1 half hour)
$ 46.00
$ 46.00
Winching (After 1" half hour)
Standby Time (1 half hour)
$ 34.50
Standby Time (After 1" half hour)
$ 28.75
Mileage Outside City Limits
$ 3.15
Show Up Fee
$ 29.90
Go Jacks
$ 11.50
ATTENTION: SUBMIT SEPARATELY WITH GROUP I PRICING
IN SEALED ENVELOPE
GROUP II. CLASS A.
First Hour (per unit)
10E
After First Hour (per unit)
List your proposed rates and charges (Prices must remain for the first year of the Contract.
Any fee or change may be negotiated only thirty days on or before the anniversary date
each year):
NOTE: The City of Dubuque does not guarantee or imply any specific number o f
tows or other service that will occur during the life of this Contract.
GROUP II: Rates for Group II apply to those vehicles that are owned or leased by the City
and service is performed as a result of a call from a City Police Officer or City
employee.
GROUP II. Class C: Towing and /or Recovery
[Wit MEI
$ 143.75
143.75
16
States in each Region
ela US. Energy Information
, Administration
Home > Petroleum > Weekly Retail On- Highway Diesel Prices > States in each Region
States in each Region
WEST COAS
(PADD V)
OCKY MOUNTAIN
PADD IV}
TABLE 1
IDWEST
(PADD II)
GULF COAST
(PADD III)
CENTRAL
ATLANTIC
(PROD IB
NEW
ENGLAND
(PADD IA)
OWER
ATLANTIC
(PADD IC)
EAST
COAST
(PADD I)
Page 1 of 1
http: / /www.eia. doe. gov /oog /info /wohdp /paddpage.html 5/23/2011
Midwest No 2 Diesel Retail Sales by All Sellers (Dollars per Gallon) Page 1 of 1
ela U.S. Energy Information
Administration
YL'1'ROLEUNl & OTHER LIQUIDS
View History: 0 Weekly 0 Monthly 0 Annual
5.0- -
4.0-
4
(a 3.0-
0 20
1.0-
0.0
1994
Release Date: 5/3112011
Next Release Date: 6!612011
Monthly Midwest No2 Diesel Retail Sales by All Sellers
1996 1998
Sevrce: U.B. Er: ,ry IrbrmnbeArimIc6tretbn
2000
Midwest No 2 Diesel Retail Sales by All Sellers (Dollars per Gallon)
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1994 1.088 1.087 1.082 1.086 1.094 1.110 1.102 1.094 1.101 1.087
1995 1.074 1.065 1.068 1.084 1.101 1.097 1.075 1.085 1.099 1.088 1 098 1.110
1998 1.119 1.123 1.172 1.260 1.247 1.164 1.145 1.186 1.249 1.307 1.314 1.298
1997 1.267 1.257 1.204 1.188 1.189 1.167 1.141 1.148 1.132 1.161 1.167 1.140
1998 1.086 1.060 1.049 1.049 1.048 1.022 1.009 0.985 1.009 1.020 1.003 0.950
1999 0.944 0.939 0.973 1.047 1.047 1.043 1.091 1.146 1.204 1,220 1.260 1.287
2000 1.324 1.429 1.463 1.414 1.426 1.428 1.420 1.436 1_610 1.601 1.580 1.515
2001 1.501 1.474 1.375 1.402 1.537 1.495 1.350 1.409 1.555 1.367 1.266 1.160
2002 1.128 1.126 1.208 1.294 1.287 1.264 1.287 1.313 1.400 1.461 1.421 1.430
2003 1.473 1,639 1.661 1.495 1.436 1.409 1.408 1.464 1.450 1.482 1.470 1.460
2004 1.520 1.544 1.596 1.648 1.677 1.659 1.693 1.801 1.889 2.105 2.112 1.972
2005 1.930 1.973 2.163 2.236 2.138 2.264 2.341 2.445 2.753 3.098 2.541 2.416
2006 2.425 2.420 2.512 2.694 2.845 2.851 2_934 3.051 2.714 2.475 2.541 2.562
2007 2.429 2.443 2.650 2.817 2.763 2.774 2.554 2.864 2.973 3.061 3.373 3.304
2008 3.270 3346 3.855 4.040 4.382 4.604 4.630 4.222 3.984 3.548 2.824 2.430
2009 2.264 2,146 2.039 2.165 2.170 2.501 2.512 2,606 2.605 2.656 2.769 2.719
2010 2.810 2.739 2.885 3.033 3,038 2.916 2.878 2.931 2.923 3.039 3.124 3,222
2011 3.353 3.533 3.855 4.025 4.001
-= No Data Reported; - = Not ApplIcable; NA = Not Available; W = Withheld to avoid disclosure of indlvidual company data.
Referring Pages:
• Midwest (PADD 2) Gasoline and Diesel Retail Prices
• Retail Prices for Diesel (On- Highway) - All Types
2002
TABLE 2
Download Data (XLS Filet
2004
2006
2008
GLOSSARY. FADS.
http: / /www.eia.gov /dnav/ pet /hist /Leafl ashx ?n= pet &s =emd &fm 6/1 /2011