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Ordinance No. 1259
ORDINANCE NO. 1259 AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON GRANTING TO U.S. TOW, INC., A FRANCHISE TOWING SERVICES AGREEMENT WHEREAS, the City of Vernon (the "City") is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California; and WHEREAS, on October 2, 2012, the City Council of the City of Vernon adopted Ordinance No. 1198 adding Chapter 4B of the Vernon Municipal Code to establish a non-consensual franchise towing fee; and WHEREAS, on September 15, 2015, the City Council of the City of Vernon adopted Ordinance Nos. 1231 and 1233 granting U.S. Tow, Inc. and H.P. Automotive & Tow, Inc. a franchise towing services agreement for a term of three years; and WHEREAS, on or about November 1, 2018, the Police Chief issued a Request for Proposals for the City's Franchise Tow Fee Program; and WHEREAS, the City Council of the City of Vernon desires to grant a Franchise Towing Services Agreement to U.S. Tow, Inc.; and WHEREAS, the City Council of the City of Vernon is authorized by City Charter Section 8.9 to grant a franchise in the City of Vernon to any person, firm, corporation, or other entity and to set terms, conditions, restrictions and limitations by ordinance. THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2: GRANT OF FRANCHISE. A non-exclusive franchise shall be, and the same is hereby granted by the City Council of the City of Vernon to U.S. Tow, Inc., its lawful successors or assigns to provide official non-consensual police towing services to the Vernon Police Department. Said franchise is further described and depicted in the Franchise Towing Services Agreement, in substantially the same form as attached hereto as Exhibit A and incorporated herein by reference. SECTION 3: FRANCHISE TERM. The franchise shall endure in full force and effect for three (3) years, subject to the terms and conditions of the Franchise Towing Services Agreement. SECTION 4: FRANCHISE FEE. The grantee of the franchise, during the life thereof, will pay to the City five percent (5%) of the gross annual receipts of the grantee arising from the use, operation or possession of the franchise. SECTION 5: VERIFIED STATEMENT OF GROSS RECEIPTS. The grantee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the grantee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The grantee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the - 2 - aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by grantee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this franchise and of all rights of grantee hereunder. However, grantee has the ability to cure under Section 12. Further, the City is responsible for insuring that grantee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this franchise. SRCTTnW A- nATA MT,T,RCTTnT4 ANTS RRPnPTTMrZ The Vernon Police Department shall maintain a record of grantee's response times during the term of the franchise and shall submit a written report summarizing such data to the City Council of the City of Vernon at a regularly scheduled City Council meeting in the month of April each year during the term of the franchise. SECTION 7: WRITTEN ACCEPTANCE REQUIRED. The.franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk. CR.CTTnM R • Al kAMnn'KTMP'KTT nP PRTnP RPANTl'WTCFC The franchise granted by this Ordinance is in lieu of all other franchises, rights or privileges owned by the grantee, or by any successor of the grantee to any rights under the franchise, for providing official police towing services throughout the limits of the City of Vernon as such limits exist at the time of the granting of the - 3 - franchise or as they may thereafter, except any franchise derived under Section 19 of Article IX of the Constitution as that section existed prior to the amendment thereof adopted October 10, 1911. The acceptance of the franchise granted by this Ordinance shall operate as an abandonment of all such franchises, rights, and privileges within the limits of City as such limits at any time exist, in lieu of which the franchise is granted by this Ordinance. SECTION 9: EMINENT DOMAIN. The granting of the franchise shall not in any way impair or affect the right of the City to acquire the property of the grantee by purchase or condemnation, and nothing contained in this franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's right of eminent domain. SECTION 10: VALUE OF FRANCHISE. By acceptance of the franchise, the grantee, for itself, its successors and assigns, agrees that in any proceeding of any character before any court, commission, administrative body, board of arbitration or other public authority, no greater value shall be placed upon the franchise in excess of the cost to the grantee of the necessary publication and any other sum paid by grantee to the City therefor at the time of acquisition. SECTION 11: NONCOMPLIANCE. If the grantee of the franchise granted by this Ordinance fails, neglects, or refuses to comply with any of the provisions or conditions prescribed in this ordinance or the Franchise Act of 1937, and does not within ten (10) days after written demand for compliance begin the work of compliance, and after such beginning does not prosecute the work with due diligence to completion, the City, by its - 4 - City Council, may declare the franchise forfeited. The City may sue in its own name for the forfeiture of the franchise granted pursuant to this Ordinance, in the event of noncompliance with any of the conditions thereof by the grantee, its successors, or assigns. SECTION 12: CONFORMITY TO RULES AND STATUTORY REQUIREMENTS. The grantee of the franchise granted by this Ordinance shall comply with all of the ordinances and rules adopted by the City Council of the City of Vernon in the exercise of its police powers and not in conflict with the paramount authority of the State. All work undertaken or performed pursuant to the provisions of the franchise shall be of the standard required by law, and by any other body or governmental authority having jurisdiction in the premises. Where not in conflict with State law, or other governmental authority having jurisdiction in the premises, tow services shall be performed in accordance with the rules and regulations and ordinances of the City. .qP.CTTON II - TNnRMNTFTCATTnN_ The grantee shall indemnify and hold harmless the City, its officers, agents and employees, from all liability for damages proximately resulting from any operations under this franchise. SECTION 14: ASSIGNMENT. Grantee shall not assign or transfer any interest in the franchise without the express prior written consent and approval of City Council. Any unauthorized assignment or transfer of Franchisee's rights or obligations under this Agreement shall be null and void and shall constitute a material breach by Franchisee of this Agreement. SECTION 15_ PERFORMANCE BOND_ (a) At the option of the City, grantee shall either (a) reduce or eliminate any deductibles or self -insured retentions with - 5 - respect to the City, its elected officials, officers, employees, agents, representatives, attorneys, and volunteers; or (b) file with the City Clerk a corporate surety bond running to City and guaranteeing payment of losses and related investigations, claim administration and defense expenses. The bond shall be conditioned that grantee shall well and truly observe, fulfill and perform each term and condition of the franchise, and that in case of any breach of condition of the bond the amount of the penal sum therein shall be recoverable. If City elects option (b) above, Grantee shall file such bond within five (5) days after the adoption of this ordinance. (b) Grantee shall maintain the bond in full force and effect throughout the term of this franchise, at grantee's sole expense. The bond shall be issued by an admitted surety insurer and comply with the requirements of the Bond and Undertaking Law, codified in Code of Civil Procedure Sections 995.010 et seq. This franchise shall be considered a "license or permit" within the meaning of the Bond and Undertaking Law, solely for purposes of application of such law to the bonding requirements of this section. SECTION 16: LIABILITY. The grantee of the franchise under this Ordinance shall be liable to the City for all damages proximately resulting from the failure of the grantee to well and faithfully observe and perform any provision of the franchise or any provision of the Franchise Act of 1937. SECTION 17: REPEAL. Any ordinance or parts of an ordinance in conflict with this Ordinance are hereby repealed. SECTION 18: SEVERABILITY. If any chapter, article, section, subsection, subdivision, paragraph, sentence, clause, phrase, or word - 6 - in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more chapters, articles, sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared unconstitutional, or invalid, or ineffective. eFr PTnTT 1 Q • Rnnu (1F nRnTNnTTrFc The City Clerk shall attest and certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk's certification to be entered in the Book of Ordinances of the Council of this City. The City Clerk shall cause this ordinance to be published or posted as required by law. - 7 - SECTION 20: EFFECTIVE DATE. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty- first (31st) day after its passage. APPROVED AND ADOPTED this 19th day of February, 2019. Name: Yvette Woodruff -Perez ATTEST: Maria E. Aya�Ia,OCity Clerk APPROVED AS TO FORM: Brian"'I. Byun, Senior Deputy ity Attorney Title: Mayor / - - 8 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Maria E. Ayala , City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1259 was duly and regularly introduced at a regular meeting of the City Council of the City of Vernon, held in the City of Vernon on Tuesday, February 5, 2019, and thereafter adopted at a meeting of said City Council held on Tuesday, February 19, 2019, by the following vote: AYES: Councilmembers: Mayor Woodruff -Perez, Mayor Pro-Tem Davis, Lopez, Martinez, Ybarra NOES: Councilmembers: None ABSENT: Councilmembers: None And thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this ZWday of February, 2019, at Vernon, California. (SEAL) - 9 - Maria E. Ayal , City Clerk EXHIBIT A CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. Franchisee: Responsible Principal of Franchisee: Notice Information - Franchisee: Notice Information - City: Commencement Date: Termination Date: Consideration: COVER PAGE U.S. Tow, Inc. Moshe Ben Dayan, President/CEO U.S. Tow, Inc. 2119 East 25' Street Los Angeles, CA 90058 Attention: Moshe Ben Dayan, President/CEO Phone: (213) 749-7100 Facsimile: (213) 749-0272 City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Anthony Miranda Chief of Police Telephone: (323) 587-5171 ext. 115 Facsimile: (323) 826-1483 No earlier than thirty-one (31) days after final approval by City Council of City of Vernon of ordinance granting franchise to U.S. Tow, Inc. Three (3) years from Commencement Date, inclusive Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Records Retention Period Three (3) years, pursuant to Section 15.3 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. This Agreement is made and entered into by and between the City of Vernon ("City"), a California charter City and California municipal corporation, and U.S. Tow, Inc. ("Franchisee"), a California corporation with its principal place of business at 2119 East 25th Street, Los Angeles, CA 90058 (collectively, the "Parties") to provide towing services to the City. The Parties agree as follows: RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vernon as set forth in the Request for Proposal issued on or about November 1, 2018, Exhibit A, and Franchisee's proposal to the City ("Proposal') dated November 19, 2018, Exhibit B, both of which are attached to and incorporated into this Agreement, by reference. WHEREAS, pursuant to Chapter 4B of the Vernon Municipal Code, Franchisee has applied for a Police Towing Franchise ("Franchise"); and WHEREAS, the City Council has held a public hearing for the purpose of hearing persons in favor of or in opposition to the granting of such Franchise; and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with Chapter 4B of the Vernon Municipal Code and has agreed to comply with all provisions of that Chapter; and WHEREAS, it is required that City and Franchisee enter into a Franchise Towing Services Agreement ("Agreement") for Police Towing services in the City of Vernon; and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW, THEREFORE, the Parties do hereby agree as follows: Section 1. GRANT OF FRANCHISE. City grants to Franchisee a Police Towing Franchise authorizing Franchisee to engage in the business of Police Towing as set forth in chapter 4B of the Vernon Municipal Code in the City of Vernon and to use the public streets and rights of way for such purpose. This grant is pursuant to the City's Request for Proposal and to Franchisee's proposal for the Franchise. Franchisee is subject to the terms and conditions specified in Section 8.9 of the Charter of the City of Vernon, the provisions of Chapter 4B of the Vernon Municipal Code, the terms and conditions specified in all related resolutions, the terms and conditions of this Agreement, the representations and assurances in Franchisee's application for the Franchise. Section 2. TERM OF FRANCHISE. The term of this Franchise granted to Franchisee shall be for three (3) years, effective from thirty-one (31) days after the date upon which the City Council of the City of Vernon finally approves the ordinance granting the Franchise (the "Effective Date") to the date that is three (3) years from the Effective Date, Inclusive. Section 3. FRANCHISE FEES. 3.1 During the term of the Franchise, Franchisee shall pay a franchise fee to City in an amount equal to 5% of Franchisee's gross annual receipts arising from the use, operation or possession of the Franchise, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 413.8 of the Vernon Municipal Code and any Resolution adopted by the City Council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the City Council at any time during the term of the Agreement. 3.2 The Franchisee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the Franchisee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The Franchisee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by Franchisee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this Franchise and of all rights of Franchisee hereunder pursuant to the procedures set forth in Sections 11 and 12 herein. However, Franchisee has the ability to cure. Further, the City is responsible for insuring that Franchisee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this Franchise. 3.3 Franchisee shall timely pay all required franchise fees to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Each payment shall be accompanied by a written statement, verified by the Franchisee or a duly authorized representative of the Franchise, showing in such form and detail as the Finance Director of the City of Vernon may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Finance Director may require as material to a determination of the amount due. 3.4 The first payment of the franchise fee will be due on _ and payments shall be due monthly thereafter on the 15th day of each month. 3.5 When Franchisee remits franchise fees to the City, such franchise fees shall be deemed timely paid only if delivered or postmarked on or before the due date. If fees are not timely paid, Franchisee shall be subject to suspension or termination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be established and assessed by the City, including, but without limitation, late fees assessed at the rate of five percent (5%). Section 4. TOWING SERVICES. 4.1 Franchisee shall provide Police Towing services, as set forth in Exhibit A, which is the City's Request for Proposals for Official Police Tow Services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules, standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for Proposals. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 4B of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisition towing services from other service providers as set forth in Section 4B.12 of the Vernon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in the reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. Section 5. RATES, CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the City Council. The prevailing rates prescribed by the Southern Division of the California Highway Patrol, the Los Angeles Police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shall be $160.00 and the storage charge shall be $50.00 per day, until otherwise modified by the City Council. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by MasterCard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after -hour release fee. As part of the award of franchise the City Council will be requested to establish an after-hours release fee not to exceed '/2 of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payment of its monthly franchise fees. The report shall be submitted to: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 The report shall include the information required by Section 4B.10(H) of the Vernon Municipal Code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee: Section 7. FRANCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms with generally accepted accounting principles. Franchisee's books, accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents of the City. Such records shall be kept at franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform Police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchise. Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchisee and its subcontractors. Section 8. TOW VEHICLE AND DRIVER, REPORTING, COMPLIANCE, AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to City, that every such vehicle conforms with regional and State vehicle emission standards ("emission standards"), and shall provide documentation of compliance on written request of the City. Franchisee understands and agrees that failure to conform with emission standards may result in suspension, termination or non -renewal of a Franchise. 8.2 Every vehicle operated by Franchisee and for Police Towing services in the City shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, together with Franchisee's telephone number painted upon both sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-1/4" in height and not less than 5/6" stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all identification required of any tow unit driver working for Franchisee, whether as an employee or as a contractor, which information shall be filed not later than ten (10) business days following the effective date of employment or engagement. Franchisee shall also notify the Vernon Police Department within ten (10) business days of the following occurrences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any tow unit driver with Franchisee. Section 9. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, fines, charges or penalties whatsoever, including reasonable attorney's fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner related to the services provided or business conducted under Chapter 4B of the Vernon Municipal Code or otherwise pursuant to this Agreement. 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns, and any successor or successors to the City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses (including, but not limited to, attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the City or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 United States Code Section 9607, and California Health and Safety Code Section 25364, and any successor provisions, to insure, protect, hold harmless, and indemnify the City from liability. Section 10. INSURANCE. Franchisee shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Agreement, including any extensions thereto. The policies shall state that they afford primary coverage. i. Automobile Liability with minimum limits of at least $1,000,000 combined single limit, including owned, hired, and non -owned liability coverage. (1) MCS 90 Endorsement must be attached to the auto liability policy. ii. Garage Keeper Legal Liability insurance with coverage limits of no less than $1,000,000 for damage to a vehicle towed, impounded or otherwise stored by Franchisee. iii. On -Hook Liability insurance with coverage limits of no less than $1,000,000 for damage to any vehicle towed by Franchisee or otherwise connected to any of Franchisee's tow trucks. iv. Franchisee agrees to subrogate automobile liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. V. General Liability with minimum limits of at least $1,000,000 per occurrence and $2,000,000 aggregate written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Franchisee's performance of this Agreement. (1) If Franchisee employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Franchisee may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. (2) Franchisee agrees to subrogate General Liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. vi. Franchisee shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. In addition, Franchisee shall require each subcontractor to similarly maintain workers' compensation insurance in accordance with the laws for California for all of the subcontractor's employees. Compliance is accomplished in one of the following manners: (1) Provide copy of permissive self-insurance certificate approved by the State of California; or (2) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Agreement; or (3) Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Agreement. vii. Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. viii. Insurance shall be placed with insurers with a Best's rating of no less than A-VIII. ix. Prior to commencement of performance, Franchisee shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. X. Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Franchisee shall immediately notify City and cease all performance under this Agreement until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Franchisee by way of set-off or recoupment from sums due to Franchisee, at City's option; (b) immediately terminate this Agreement and seek damages from the Agreement resulting from said breach; or (c) self -insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Franchisee, by way of set-off or recoupment from any sums due to Franchisee. Section 11. TERMINATION AND SUSPENSION. The City may terminate this Agreement, without cause, by giving the Franchisee thirty (30) days written notice of such termination and the effective date thereof. The City may terminate this Agreement, with cause, by giving the Franchisee (10) days written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the City and shall be, but is not limited to, failure to supply the materials, equipment or service specified within the time allowed or within the terms, conditions or provisions of this agreement. The Franchisee may not cancel this Agreement without prior written consent from the Vernon Chief of Police. Section 12. TEMPORARY SUSPENSION. In addition to termination or suspension as set forth in Section 11, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the continued operation by the Franchisee would constitute a danger to public health, safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different. Notwithstanding other notice provisions of this Agreement, the temporary suspension is effective upon the earlier of either receipt or the expiration of 3 days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for termination hearing and all other information required by the Vernon Municipal Code. The temporary suspension shall remain effective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of Police. Section 13. ACCEPTANCE, WAIVER. Franchisee agrees to be bound by and comply with all the requirements of Chapter 4B and this Agreement. By entering into this Agreement, Franchisee waives, to the maximum extent permitted by law, Franchisee's right to challenge the terms of this Agreement and of Chapter 4B under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14. GENERAL TERMS AND CONDITIONS. 14.1 INDEPENDENT STATUS. It is understood that in the performance under this Agreement, Franchisee shall be, and is, an independent operator, and is not an agent, contractor, or employee of City and shall furnish services in its own manner and method. Further, Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Franchisee in its business operations. Franchisee shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 14.2 FRANCHISE NOT AGENT. Franchisee and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 14.3 WAIVER. The City's waiver of any term, condition, breach or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 14.4 NO ASSIGNMENT. The Franchisee shall not assign or transfer any interest in this Agreement without the express prior written consent and approval of City Council. 14.5 COMPLIANCE WITH LAWS. Franchisee shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 14.6 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 14.7 INTERPRETATION. 14.7.1 Applicable Law. This Agreement, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed and construed according to the laws of the State of California. 14.7.2 Entire Agreement. This Agreement, including any Exhibits attached hereto and any documents explicitly referenced herein, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 14.7.3 Written Amendment. This Agreement may only be changed by written amendment signed by Franchisee and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Agreement shall be of no force or effect. 14.7.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. 14.7.5 Choice of Forum. The parties hereby agree that this Agreement is to be enforced in accordance with the laws of the State of California, is entered into and is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 Order of Precedence. In case of conflict between the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the order of precedence is as follows: Charter the City of Vernon, the Vernon Municipal Code, the ordinance granting this Franchise, resolutions of the City of Vernon this Agreement, the City's Request for Proposals for Official Police Towing Services, and Franchisee's Response to the City's Request for Proposals for Official Police Towing Services. 14.7.7 Duplicate Originals. There shall be two (2) fully signed copies of this Agreement, each of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement, and its execution of this Agreement has been duly authorized. Section 15. ADDITIONAL ASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Franchisee certifies and represents that, during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "C". 15.2 BUSINESS LICENSES. Franchisee shall obtain, and pay any and all costs associated therewith, any Vernon Business License, which may be required by the Vernon Municipal Code and all permits, and licenses applicable to Franchisee's operations under this Franchise, which are required of Franchisee by any governmental agency. 15.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Franchisee's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Agreement and/or is paying only the amounts to which Franchisee is properly entitled under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the City of Vernon. If not, the Franchisee shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personal, salaries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchisee hereby represents warrants and certifies that no member, officer or employee of the Franchisee is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES. Except as otherwise provided in this Agreement, all notices required by this Agreement or by Chapter 4B of the Vernon Municipal Code shall be given by personal service or by deposit in the United States mail, postage pre -paid and return receipt requested, addressed to the parties as follows: To City: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 Copies to: Director of Finance City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: U.S. Tow, Inc. Attention: Moshe Ben Dayan, President/CEO 2119 East 25`h Street Los Angeles, CA 90058 Notice shall be deemed effective on the date personally served or, if mailed, three days after the date deposited in the mail. [Signatures Begin on Next Page]. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a California charter City and California municipal corporation DATED: L-fi Carlos Fandino, City Administrator U.S. Tow, Inc., a California corporation DATED: By: Name: Title: ATTEST: By: Name: Maria E. Ayala, City Clerk Title: APPROVED AS TO FORM: Brian Byun, Senior Deputy City Attorney EXHIBIT A EXHIBIT A REQUEST FOR PROPOSALS City of Vernon Request for Proposals (RFP) Franchise Tow Fee Program 4N,h ,r �""'_ 1� City of Vernon Police Department 4305 Santa Fe Avenue, Vernon, CA 90058 Phone: (323) 587-5171 City of Vernon Franchise Tow Fee Program Request for Proposals 1. INTRODUCTION AND PROJECT The City of Vernon seeks proposals from qualified bidders to enter into a franchise agreement to perform rotational police towing and storage services. Services to be performed by the selected tow service company include vehicle towing and impound services as directed by the Vernon Police Department. Based on the quality of the proposals received, the City may consider awarding a single tow franchise contract, or multiple tow franchise contracts using a call -for -service rotation. The City does not expect to award more than two (2) franchise agreements under the rotational system, although City Council reserves the right to award contracts at its sole discretion, based on the proposals submitted. The City will select no more than two (2) tow service companies, based on demonstrated competence and a cost effective approach to design, conduct, and assist in the removal of vehicles which are apparently abandoned, or driven by unlicensed drivers, or drivers driving on suspended licenses, or involved in traffic collisions, or vehicles creating a traffic hazard due to mechanical failures. To be eligible for consideration, the tow service company's place of business and vehicle storage facility must be located within a seven (7) mile radius of the Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon CA 90058. 2. BACKGROUND The City of Vernon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles California. Over its long history, Vernon has been developed as an industrial community. At the turn of the 20t" century the lands that make up Vernon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial" city. By the 1920's Vernon was attracting large stockyards and meatpacking facilities. In the 1930's Vernon became the location of choice for many heavy industrial plants. As economic conditions changed over the decades, these large scale industrial operations have relocated out of Southern California and Vernon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Government: The City Council consists of five members, elected at -large, who serve five-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tern from its own membership to serve one-year terms. Labor Force: Vernon has approximately 280 employees, and its departments include a Fire Department, Police Department, Finance Department, Public Works Department, Public Utilities Department, and Health and Environmental Control Department. Present bargaining units recognized include the Vernon Police Officers Benefit Association, Vernon Police Management Association, Vernon Firemen's Association, the Vernon Fire Management Association, International Brotherhood of Electrical Workers Local 47, and Teamsters Local 911. -2- City of Vernon Franchise Tow Fee Program Request for Proposals 3. Key Dates a) Issue Date: November 1, 2018 b) Bidders Deadline for Requests for Information: November 7, 2018 c) City's Response to Requests for Information Deadline: November 14, 2018 d) Deadline to submit Proposal: November 19, 2018 4. REQUESTS FOR INFORMATION A) All questions must be submitted in writing to the City of Vernon Police Department no later than 5:00 pm, November 7, 2018. Responses to verbal questions will not be given. B) Requests for clarifications, questions and comments must be clearly labeled, 'Written Questions Re: City of Vernon Franchise Tow Fee Program." The City is not responsible for failure to respond to a request that has not been labeled as such. C) Any of the following methods of delivering written questions are acceptable as long as the questions are received no later than the date and time specified above: • U.S. Mail or Personal Courier: Attention: Robert Sousa, Captain Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 • E-mail: rsousa@covpd.org D) Responses from the City of Vernon to requests for information will be delivered to all interested parties no later than November 14, 2018. E) Please note that any questions asked and any response provided by Vernon will be sent to every person who will be submitting a proposal, to the extent the City is aware of them. 5. ISSUES OR PROBLEMS TO BE ADDRESSED The selected tow service company shall be able to provide swift, professional service in the removal of any vehicle, as directed by the Vernon Police Department, from any City street. 6. SCOPE OF SERVICES REQUIRED The City of Vernon is seeking the services of a highly qualified tow service company to assist in: Under the terms specified herein as well as in Chapter 4B of the Vernon Municipal Code, Franchisee shall furnish impound, towing, and storage services to the Vernon Police -3- City of Vernon Franchise Tow Fee Program Request for Proposals Department and the City as directed by the Vernon Police Department. To be eligible for a franchise, applicants must meet the City's minimum requirements as specified herein. Franchisee will be required to provide the necessary trained personnel, tow trucks and storage facilities to recover, if necessary, and remove vehicles and tractor/trailers involved in collisions. Franchisee(s) must be able to tow and store vehicles impounded by the police, many times in excess of 30 days; and must be able to clean up and dispose of debris at the scene of an accident at which any vehicle to be towed hereunder was involved. The average response time for any thirty (30) day period pursuant to requests for tow service by the Police Department, must not exceed twenty (20) minutes. The maximum response time for any single request for tow service by the Police Department shall not exceed thirty (30) minutes. In the event the Franchisee cannot respond within twenty (20) minutes, the Franchisee shall immediately notify the Police Department dispatcher and provide an estimated time of arrival. Franchisee must provide a dispatcher available onsite at the tow facility place of business at all times for the immediate dispatching of towing equipment. Franchisee's place of business must be open from 0700 to 1800 hours Monday through Friday. Alternate hours, as directed by the City, must also be available in order to accommodate special City events. Failure or refusal to promptly relay the Police Dispatcher's requests for towing services shall constitute failure to comply with the requirements, terms and conditions of the agreement and may result in termination of the agreement. All tow trucks shall be equipped as provided in the California Vehicle Code. Franchisee's trucks shall be painted, free of major dents, and kept clean and in good working order. Official police tow services shall, at all times, have at least three (3) fully equipped and operational tow trucks in service. All of the tow trucks in service must have a minimum capacity of one (1) ton. At least one (1) of the tow trucks in service must be a flatbed tow truck. At least one (1) of the three (3) tow trucks in service must have a five (5) ton lifting capacity. Every official police tow service shall be equipped for and have personnel proficient in unlocking locked vehicles when requested to do so by Police Department employees. Upon selection the Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all other information required of any tow unit driver employed by the permit holder subsequent to the date of the tow operator permit application, which information shall be filed not later than ten (10) business days following the effective date of hiring. The Franchisee will be required to notify the Vernon Police Department of the name of any tow truck driver no longer employed by such permit holder. This notification shall be given to the Vernon Police Department no later than ten (10) business days following the last date of the driver's employment by the permit holder. lM City of Vernon Franchise Tow Fee Program Request for Proposals The Franchisee will be required to notify the Vernon Police Department of the identity of any tow truck driver whose license is suspended. The operator shall not be authorized to operate in Vernon unless the operator has provided proof from the Department of Motor Vehicles of the ability to operate a vehicle during work hours. The Franchisee will be required to enroll and participating in a program with California Department of Motor Vehicles (DMV Pull Program) that notifies the Franchisee when their drivers have any change to their driving status or record. This DMV program will alert the Franchisee to any potential problem drivers. Franchisee will be required to comply with the California Vehicle Code and other applicable laws with regards to lien sales, including supplying a list of vehicles each month that the Franchisee intends to lien sale prior to selling same for approval by the department. Franchisee is responsible for maintaining all documents relating to lien sales. 7. QUALIFICATIONS & CRITERIA A. Qualifications: The City of Vernon will select no more than two (2) tow service companies for all of the outlined Scope of Service on the basis of qualifications, experience, and cost. The following are the minimum qualifications to be used to evaluate responses to this Request for Proposal: 1. The applicants can satisfy the insurance, business license, and tow operator permits requirements set forth in Vernon Municipal Code Chapter 4B. 2. The applicants are qualified on the basis of prior experience in the towing operation business and financial responsibility. 3. All tow vehicles and equipment must comply with all state and applicable federal requirements. 4. The applicants can reasonably conduct an official police towing service which complies with all of the requirements of Vernon Municipal Code Chapter 4B. 5. The applicants will accept all tow requested by the City, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment. B. Selection Criteria: The City will conduct a comprehensive, fair, and impartial evaluation of proposals received in response to this RFP. All proposals received will be reviewed and evaluated by a committee of qualified personnel. The name, information, or experience of the individual members will not be made available to any proposer. The Evaluation Committee will first review and screen all proposals submitted, except for the cost proposals, according to the minimum qualifications set forth above. The following criteria will be used in reviewing and comparing the proposals and in determining the highest scoring bid: 1. 40% Qualifications, background and prior experience of the tow service company in the Service Area(s) being proposed, experience of key staff assigned to oversee services provided to Vernon, evaluation of size and scope of similar work performed and success on that work. -5- City of Vernon Franchise Tow Fee Program Request for Proposals 2. 30% Cost and fees to the City for handling matters. Cost is not the sole determining factor but will be taken into consideration. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. If rates differ for different types or levels of service, or for different Service Areas, the Proposer should so state. 3. 10% Responsiveness to the RFP, and quality and responsiveness of the proposal. 4. 20% References including past performance of proposer. 8. FORMAT AND DELIVERY OF RESPONSE Respondents are asked to submit one (1) unbound original, seven (7) hard copies and one (1) electronic copy (via email to rsousa@covpd.org) of their proposals in sufficient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum, the following information in sectionalized format addressing all phases of the work in the RFP. A. Format: Limit your proposal to 20 typed 8.5" X 11" pages, or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments. You may attach a company brochure if you wish, but it must be as a separate attachment and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1" margin on all boarders. 2. Organize your submittal in the order described above. 3. Prominently label the package: "Franchise Tow Fee Program" and include the name of the primary contact for the respondent. Deliver the response to: City of Vernon Attention: Robert Sousa, Captain 4305 Santa Fe Avenue Vernon, CA 90058 4. Responses are due on or before 5:00 p.m. on November 19, 2018. Late response will not be accepted. B. Cover Letter: All proposals shall include a cover letter which states that the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal. If the proposal contemplates the use of sub -contractors, the sub- contractors shall be identified in the cover letter. If the proposal is submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually bind the business entity. With respect to the business entity, the cover letter shall also include: the identification of the business entity, including the name, address and telephone number of the business entity; and the name, title, -6- City of Vernon Franchise Tow Fee Program Request for Proposals address and telephone number of a contact person during the proposal evaluation period. C. Introduction: Present an introduction of the proposal and your understanding of the assignment and significant steps, methods and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. D, General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions it for each Service Area proposed. E. Work Plan: Present concepts for conducting the work plan and interrelationship of all projects. Define the scope of each task including the depth and scope of analysis or research proposed. F. Fees and costs: Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer; therefore, the proposal submitted should contain the proposer's most favorable terms and conditions, since selection and award may be made without discussion with any tow service company. All prices should reflect "not to exceed" amounts per item. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. G. Ability of the Proposer to Perform: Provide a detailed description of the proposer and his/her/its qualifications, including names, titles, detailed professional resumes and past experience in similar work efforts/products of key personnel who will be working on the assignment. Provide a list of specific related work projects that have been completed by the proposer which are directly related to the assignment described in this RFP. Note the specific individuals who completed such project(s). Identify role and responsibility of each member of the project team. Include the amount of time key personnel will be involved in the respective portions of the assignment. Respondents are encouraged to supply relevant examples of their professional product. Provide a list of references. The selected tow service companies shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. H. Affidavit of Non -Collusion. Proposer must submit a completed and signed, "Affidavit of Non -Collusion." (Copy attached as Exhibit A). 9. ADDENDA, CHANGES, AND AMENDMENTS TO THIS SOLICITATION At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda, changes, and amendments, if made, will be posted on the City's website (www.cityofvernon.org), which is deemed adequate notice. A proposer may make a request to the City's project coordinator to be placed on a list of persons to receive notice of any such addenda, changes, or -7- City of Vernon Franchise Tow Fee Program Request for Proposals amendments. The preferred manner of communications is via e-mail due to its timeliness. 10. CONDITIONS FOR RESPONSES TO RFP The following conditions apply to this RFP process: A. Nothing contained in this RFP shall create any contractual relationship between the respondent and the City. B. This RFP does not obligate the City to establish a list of service providers qualified as prime contractors, or award a contract to any respondent. The City reserves the right to amend or cancel this RFP without prior notice, at any time, at its sole discretion. C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFP. D. No conversations or agreements with any officer, agent, or employee of the City shall affect or modify any terms of this RFP. Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. E. The City reserves the right, in its sole discretion, to accept or reject any or all Proposals without prior notice and to waive any minor irregularities or defects in a Proposal. The City reserves the right to seek clarification on a Proposal with any source. F. The dates, times, and sequence of events related to this RFP shall ultimately be determined by the City. The schedule shown above is subject to change, at the sole discretion of the City, although the City will attempt to follow it and, if it must be altered, will attempt to provide reasonable notice of the changes. G. Respondents shall not issue any news release pertaining to this RFP, or the City without prior written approval of the City. H. All submitted proposals and information included therein or attached thereto shall become public record upon delivery to the City Administrator's Office. 11. RIGHT BY THE CITY TO WITHDRAW THIS REQUEST The City may, at its sole discretion and for any reason whatsoever, withdraw this solicitation at any time. City of Vernon Franchise Tow Fee Program Request for Proposals 12. LIVING WAGE ORDINANCE The selected tow service companies shall pay qualifying employees a wage of not less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. The tow service companies shall also provide qualifying employees at least twelve days off per year for sick leave, vacation or personnel necessity, and an additional ten days a year of uncompensated time for sick leave. There shall be a prohibition on employer retaliation against an employee's complaining to the City with regard to the employer's compliance with the living wage ordinance. The tow services companies, and any sub- contractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D" of the standard form franchise towing services agreement, attached hereto as Exhibit B. Upon the City's request, certified payroll records shall promptly be provided to the City. 13. STANDARD TERMS AND CONDITIONS Prior to the award of any work hereunder, City and proposer shall enter into the written contract for services attached hereto as Exhibit B. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract. The term of the Contract shall not exceed three (3) years. Wz City of Vernon Franchise Tow Fee Program Request for Proposals AFFIDAVIT OF NON -COLLUSION -10- City of Vernon Franchise Tow Fee Program Request for Proposals STANDARD FORM CONTRACT - 11 - CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. Franchisee: Responsible Principal of Franchisee: Notice Information - Franchisee: Notice Information - City: Commencement Date: Termination Date: Consideration: COVER PAGE [insert name of franchisee] [insert name, title] [insert name of franchisee] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Anthony Miranda Chief of Police Telephone: (323) 587-5171 ext. 115 Facsimile: (323) 826-1483 [insert commencement date] [insert termination date, three years after commencement date] Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Records Retention Period Three (3) years, pursuant to Section 15.3 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. This Agreement is made and entered into by and between the City of Vernon ("City"), a California charter City and California municipal corporation, and ("Franchisee"), a Police Towing Company with its principal place of business at (collectively, the "Parties") to provide towing services to the City. The Parties agree as follows: RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vernon as set forth in the Request for Proposal issued on or about , Exhibit A, and Franchisee's proposal to the City ("Proposal') dated , Exhibit B, both of which are attached to and incorporated into this Agreement, by reference. WHEREAS, pursuant to Chapter 4B of the Vernon Municipal Code, Franchisee has applied for a Police Towing Franchise ("Franchise"); and WHEREAS, the City Council has held a public hearing for the purpose of hearing persons in favor of or in opposition to the granting of such Franchise; and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with Chapter 4B of the Vernon Municipal Code and has agreed to comply with all provisions of that Chapter; and WHEREAS, it is required that City and Franchisee enter into a Franchise Towing Services Agreement ("Agreement") for Police Towing services in the City of Vernon; and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW, THEREFORE, the Parties do hereby agree as follows: Section 1. GRANT OF FRANCHISE. City grants to Franchisee a Police Towing Franchise authorizing Franchisee to engage in the business of Police Towing as set forth in chapter 4B of the Vernon Municipal Code in the City of Vernon and to use the public streets and rights of way for such purpose. This grant is pursuant to the City's Request for Proposal and to Franchisee's proposal for the Franchise. Franchisee is subject to the terms and conditions specified in Section 8.9 of the Charter of the City of Vernon, the provisions of Chapter 4B of the Vernon Municipal Code, the terms and conditions specified in all related resolutions, the terms and conditions of this Agreement, the representations and assurances in Franchisee's application for the Franchise. Section 2. TERM OF FRANCHISE. The term of this Franchise granted to Franchisee shall be for three (3) years, from to inclusive. Section 3. FRANCHISE FEES. 3.1 During the term of the Franchise, Franchisee shall pay a franchise fee to City in an amount equal to 5% of Franchisee's gross annual receipts arising from the use, operation or possession of the Franchise, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 413.8 of the Vernon Municipal Code and any Resolution adopted by the City Council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the City Council at any time during the term of the Agreement. 3.2 The Franchisee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the Franchisee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The Franchisee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by Franchisee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this Franchise and of all rights of Franchisee hereunder pursuant to the procedures set forth in Sections 11 and 12 herein. However, Franchisee has the ability to cure. Further, the City is responsible for insuring that Franchisee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this Franchise. 3.3 Franchisee shall timely pay all required franchise fees to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Each payment shall be accompanied by a written statement, verified by the Franchisee or a duly authorized representative of the Franchise, showing in such form and detail as the Finance Director of the City of Vernon may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Finance Director may require as material to a determination of the amount due. 3.4 The first payment of the franchise fee will be due on , and payments shall be due monthly thereafter on the 151h day of each month. 3.5 When Franchisee remits franchise fees to the City, such franchise fees shall be deemed timely paid only if delivered or postmarked on or before the due date. If fees are not timely paid, Franchisee shall be subject to suspension or termination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be established and assessed by the City, including, but without limitation, late fees assessed at the rate of five percent (5%). Section 4. TOWING SERVICES. 4.1 Franchisee shall provide Police Towing services, as set forth in Exhibit A, which is the City's Request for Proposals for Official Police Tow Services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules, standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for Proposals. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 4B of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisition towing services from other service providers as set forth in Section 4B.12 of the Vernon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in the reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. Section 5. RATES, CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the City Council. The prevailing rates prescribed by the Southern Division of the California Highway Patrol, the Los Angeles Police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shall be $ and the storage charge shall be $ per day, until otherwise modified by the City Council. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by MasterCard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after -hour release fee. As part of the award of franchise the City Council will be requested to establish an after-hours release fee not to exceed Ih of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payment of its monthly franchise fees. The report shall be submitted to: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 The report shall include the information required by Section 4B.10(H) of the Vemon Municipal Code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee: Section 7. FRANCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms with generally accepted accounting principles. Franchisee's books, accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents of the City. Such records shall be kept at franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform Police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchise. Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchisee and its subcontractors. Section 8. TOW VEHICLE AND DRIVER REPORTING COMPLIANCE AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to City, that every such vehicle conforms with regional and State vehicle emission standards ("emission standards"), and shall provide documentation of compliance on written request of the City. Franchisee understands and agrees that failure to conform with emission standards may result in suspension, termination or non -renewal of a Franchise. 8.2 Every vehicle operated by Franchisee and for Police Towing services in the City shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, together with Franchisee's telephone number painted upon both sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-1/4" in height and not less than 5/6" stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all identification required of any tow unit driver working for Franchisee, whether as an employee or as a contractor, which information shall be filed not later than ten (10) business days following the effective date of employment or engagement. Franchisee shall also notify the Vernon Police Department within ten (10) business days of the following occurrences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any tow unit driver with Franchisee. Section 9. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, fines, charges or penalties whatsoever, including reasonable attorney's fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner related to the services provided or business conducted under Chapter 4B of the Vernon Municipal Code or otherwise pursuant to this Agreement. 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns, and any successor or successors to the City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses (including, but not limited to, attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the City or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 United States Code Section 9607, and California Health and Safety Code Section 25364, and any successor provisions, to insure, protect, hold harmless, and indemnify the City from liability. Section 10. INSURANCE. Franchisee shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Agreement, including any extensions thereto. The policies shall state that they afford primary coverage. Automobile Liability with minimum limits of at least $1,000,000 combined single limit, including owned, hired, and non -owned liability coverage. (1) MCS 90 Endorsement must be attached to the auto liability policy. Garage Keeper Legal Liability insurance with coverage limits of no less than $1,000,000 for damage to a vehicle towed, impounded or otherwise stored by Franchisee. iii. On -Hook Liability insurance with coverage limits of no less than $1,000,000 for damage to any vehicle towed by Franchisee or otherwise connected to any of Franchisee's tow trucks. iv. Franchisee agrees to subrogate automobile liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. V. General Liability with minimum limits of at least $1,000,000 per occurrence and $2,000,000 aggregate written on an Insurance Services Office (ISO) Comprehensive General Liability 'occurrence" form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Franchisee's performance of this Agreement. (1) If Franchisee employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Franchisee may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. (2) Franchisee agrees to subrogate General Liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. vi. Franchisee shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. In addition, Franchisee shall require each subcontractor to similarly maintain workers' compensation insurance in accordance with the laws for California for all of the subcontractor's employees. Compliance is accomplished in one of the following manners: (1) Provide copy of permissive self-insurance certificate approved by the State of California; or (2) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Agreement; or (3) Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Agreement. vii. Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. viii. Insurance shall be placed with insurers with a Best's rating of no less than A-VII1. ix. Prior to commencement of performance, Franchisee shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. X. Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Franchisee shall immediately notify City and cease all performance under this Agreement until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorneys fees and costs against Franchisee by way of set-off or recoupment from sums due to Franchisee, at City"s option; (b) immediately terminate this Agreement and seek damages from the Agreement resulting from said breach; or (c) self -insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorneys fees and costs, being collectible from Franchisee, by way of set-off or recoupment from any sums due to Franchisee. Section 11. TERMINATION AND SUSPENSION. The City may terminate this Agreement, without cause, by giving the Franchisee thirty (30) days written notice of such termination and the effective date thereof. The City may terminate this Agreement, with cause, by giving the Franchisee (10) days written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the City and shall be, but is not limited to, failure to supply the materials, equipment or service specified within the time allowed or within the terms, conditions or provisions of this agreement. The Franchisee may not cancel this Agreement without prior written consent from the Vernon Chief of Police. Section 12. TEMPORARY SUSPENSION. In addition to termination or suspension as set forth in Section 11, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the continued operation by the Franchisee would constitute a danger to public health, safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different. Notwithstanding other notice provisions of this Agreement, the temporary suspension is effective upon the earlier of either receipt or the expiration of 3 days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for termination hearing and all other information required by the Vernon Municipal Code. The temporary suspension shall remain effective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of Police. Section 13. ACCEPTANCE, WAIVER. Franchisee agrees to be bound by and comply with all the requirements of Chapter 4B and this Agreement. By entering into this Agreement, Franchisee waives, to the maximum extent permitted by law, Franchisee's right to challenge the terms of this Agreement and of Chapter 4B under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14. GENERAL TERMS AND CONDITIONS. 14.1 INDEPENDENT STATUS. It is understood that in the performance under this Agreement, Franchisee shall be, and is, an independent operator, and is not an agent, contractor, or employee of City and shall furnish services in its own manner and method. Further, Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Franchisee in its business operations. Franchisee shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 14.2 FRANCHISE NOT AGENT. Franchisee and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 14.3 WAIVER. The City's waiver of any term, condition, breach or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 14.4 NO ASSIGNMENT. The Franchisee shall not assign or transfer any interest in this Agreement without the express prior written consent and approval of City Council. 14.5 COMPLIANCE WITH LAWS. Franchisee shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 14.6 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 14.7 INTERPRETATION. 14.7.1 Applicable Law. This Agreement, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed and construed according to the laws of the State of California. 14.7.2 Entire Agreement. This Agreement, including any Exhibits attached hereto and any documents explicitly referenced herein, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 14.7.3 Written Amendment. This Agreement may only be changed by written amendment signed by Franchisee and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Agreement shall be of no force or effect. 14.7.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. 14.7.5 Choice of Forum. The parties hereby agree that this Agreement is to be enforced in accordance with the laws of the State of California, is entered into and is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 Order of Precedence. In case of conflict between the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the order of precedence is as follows: Charter the City of Vernon, the Vernon Municipal Code, the ordinance granting this Franchise, resolutions of the City of Vernon this Agreement, the City's Request for Proposals for Official Police Towing Services, and Franchisee's Response to the City's Request for Proposals for Official Police Towing Services. 14.7.7 Duplicate Originals. There shall be two (2) fully signed copies of this Agreement, each of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement, and its execution of this Agreement has been duly authorized. Section 15. ADDITIONAL ASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Franchisee certifies and represents that, during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "C". 15.2 BUSINESS LICENSES. Franchisee shall obtain, and pay any and all costs associated therewith, any Vernon Business License, which may be required by the Vernon Municipal Code and all permits, and licenses applicable to Franchisee's operations under this Franchise, which are required of Franchisee by any governmental agency. 15.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Franchisee's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Agreement and/or is paying only the amounts to which Franchisee is properly entitled under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the City of Vernon. If not, the Franchisee shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personal, salaries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchisee hereby represents warrants and certifies that no member, officer or employee of the Franchisee is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES. Except as otherwise provided in this Agreement, all notices required by this Agreement or by Chapter 4B of the Vernon Municipal Code shall be given by personal service or by deposit in the United States mail, postage pre -paid and return receipt requested, addressed to the parties as follows: To City: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 Copies to: Director of Finance City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: Notice shall be deemed effective on the date personally served or, if mailed, three days the date deposited in the mail. [Signatures Begin on Next Page]. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a California charter City and California municipal corporation DATED: M Carlos Fandino, City Administrator [FRANCHISEE'S NAME, a [State incorporated in] corporation DATED: as Name: Title: ATTEST: By: Name: Maria E. Ayala, City Clerk Title: APPROVED AS TO FORM: Hema Patel, City Attorney EXHIBIT A REQUEST FOR PROPOSALS : FRANCHISEE'S PROPOSAL EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Franchisee certifies and represents that, during the performance of this Agreement, the Franchisee and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Franchisee further certifies that it will not maintain any segregated facilities. B. Franchisee agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Franchisee, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Franchisee agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Franchisee agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. LIVING WAGE PROVISIONS Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the agreement of violating employers. AFFIDAVIT OF NON -COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) )Ss COUNTY OF LOS ANGELES ) being first duly sworn deposes and says that he/she is (Insert 'Sole Owner", 'Panner','President. "Secresam'. or other proper title) of (insert ruime of bidder) who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not, directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of bids/proposals, said bidder. a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain from bidding or withdraw his/her bid/proposal; C. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or fix any overhead, profit or cost element of his/her bid/proposal price, or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, or to any individual or group of individuals, except the City of Vernon, or to any person or persons who have a partnership or other financial interest with said bidder in his/her business. I certify under penalty of perjury that the above information is correct By: Title: Date: EXHIBIT B FRANCHISEE'S PROPOSAL FRANCHISE TOW FEE PROGRAM PROPOSAL Made To The City of Vernon Police Department Attention: Robert Sousa., Captain 4305 Santa Fe Avenue Vernon, CA 90058 Made By U.S. Tow, Inc. 2119 East 251h Street Los Angeles, CA 90058 ORIGINAL FRANCHISE TOW FEE PROGRAM PROPOSAL Made To The City of Vernon Police Department Attention: Robert Sousa, Captain 4305 Santa Fe Avenue Vernon, CA 90058 Made By U.S. Tow, Inc. 2119 East 25t` Street Los Angeles, CA 90058 COPY aO G el .,'-S TOW, INC. FFc �ace'ce k I9 f:. 2Sth Street Los .,NilLele,, CA 90058 - M&: (213) 749-7100 Fax: (213) "i-19-02 13 November 19, 2018 City of Vernon Police Department Attention: Robert Sousa, Captain 4305 Santa Fe Avenue Vernon, CA 90058 RE: FRANCHISE TOW FEE PROGRAM Dear Captain Sousa: U.S. Tow, Inc. is pleased to submit this proposal for the continuation of Franchise Tow Fee Program services for the City of Vernon Police Department, Competitive Position U.S. Tow, Inc. originated in 1983. The firm has served the Los Angeles Police Department as its Official Police Garage for the Newton Division since 2004. It additionally has served the City of Vernon Police Department as its only Franchise Tow Fee Program provider since 2015. U. S. Tow, Inc. also serves a number of other governmental entities including the City of Los Angeles Department of Transportation, the California Highway Patrol, the Los Angeles County Sheriff's Department and the City of Los Angeles School Police Department. Experience/Management U. S. Tow, Inc. was acquired by Moshe Ben Dayan in 2013. Mr. Ben Dayan assumed the ownership of U.S. Tow with a wealth of previous towing experience. He founded and has operated Classic Tow, Inc. dba Tip Top Tow Service at the same location in Santa Monica for more than 28 years. Tip Top Tow Service is an Official Police Contractor for the Cities of Santa Monica and Beverly Hills. It additionally has long-standing contracts with a number of other governmental entities. -i- City of Vernon Police Department November 19, 2018 Page Two of Four Management Staff The major management staff of U.S. Tow has an average of 18 years of experience in the towing industry. This staff operates the Newton Division OPG, the Franchise Tow Fee Program of the City of Vernon Police Department and the other elements of the firm's business with professionalism and integrity and if again selected to be the contractor stands ready to continue to provide excellent service to the City of Vernon Police Department. Additionally, the hiring and training procedures utilized by U.S. Tow are stringent, and we consider it our utmost responsibility to continue to enforce these procedures in the fixture. Site U.S. Tow continues to have the distinct advantage of an existing site located at 2119 East 25�1 Street, Los Angeles which meets all current zoning regulations. This site is located directly across 25`b Street from the northern boundary of the City of Vernon, thereby providing us with immediate access to Vernon. U.S. Tow also continues to have a facility which provides a modern, clean, safe and professional environment The U.S. Tow site consists of approximately 4.0 acres of screened, secured, lighted, signed and cemented area for the impounding and storage of vehicles and approximately 12,600 square feet of enclosed building area for evidence hold, ancillary storage, administration and lien sale auction of vehicles. Tow Vehicles In an effort to serve all of our clients in a timely and effective manner, we are continuously mindful with respect to maintaining a strong, contemporary fleet of tow vehicles. U.S. Tow currently has a fleet of eight units including six flatbeds and two wheel-lift/standard duty trucks. We additionally have three heavy duty trucks and one heavy duty trailer. This fleet, which we continuously service and upgrade, will allow us to continue to maintain call times well under the 20-minute requirement of the City of Vernon Police Department if we are again selected to be the Department's contractor. City of Vernon Police Department November 19, 2018 Page Three of Four Employees U.S. Tow, Inc. has a total of 20 employees including thirteen tow drivers and seven office personnel. Throughout the years we have developed a staff of highly trained and motivated employees, many of whom have been with the firm for years. Our office employees have considerable experience in all facets of towing and storage including dispatch, computer programming and operation, accounting, monthly report preparation, evidence hold operation, lien sales and customer interaction. Our drivers are particularly highly trained with the ability to complete all tow tasks in a damage free and expeditious manner. Customer Service The employees of U.S. Tow are trained to develop awareness of customer problems, to establish empathy for customers, to understand and adapt to the diverse ethnicities and cultures of customers and to treat customers with respect and their vehicles and personal belongings with professionalism. Each office staff person and driver at U.S. Tow understands that difficult situations arise and our "team" philosophy of operation allows us to proactively handle these situations before they become problematic. Management Moshe Ben Dayan, the President/CEO of U.S. Tow, has been actively involved in the tow industry since 1989 at which time he established Classic Tow, Inc. dba Tip Top Tow Service which he has operated continuously in Santa Monica since that time. It is significant that Mr. Ben Dayan made the operation of Tip Top Tow Service his one and only business commitment until his purchase of U.S. Tow in 2013. Currently, Mr. Ben Dayan devotes his time almost exclusively to U.S. Tow and its clients including the City of Vernon Police Department. City of Vernon Police Department November 19, 2018 Page Four of Four Authorized Contact The person authorized to represent U.S. Tow, Inc. in negotiations with the City of Vernon Police Department is Moshe Ben Dayan, President/CEO, U.S. Tow, Inc. Mr. Ben Dayan additionally is authorized to execute the agreement with the City of Vernon on behalf of U.S. Tow and is the contact point for any questions or concerns relative to this Proposal. This Proposal will remain valid for a period of not less than ninety (90) days from the submittal date of November 19, 2018. Legal Business Status U.S. Tow, Inc. is an "S" corporation, Federal Tax ID#90-1014831. The corporation was founded in 1983. Moshe Ben Dayan is President/CEO of the corporation and Stephanie McColgan is Vice President and Secretary/Treasurer of the corporation. The address of U.S. Tow, Inc. is 2119 East 25t' Street, Los Angeles, CA 90058; the telephone number is (323) 870-7100; the FAX number is (213) 749-0272; and the e-mail address is mosheAustow.com. U.S. Tow currently meets all Federal, State and City requirements and there are no changes necessary nor requirements unmet for us to continue to operate the Franchise Tow Fee Program for the City of Vernon Police Department. Our site is operative, our office functional, our required insurances in place and our economic viability and professional commitment unwavering. We would very much like to again be selected to work with you and we strongly believe that we are more than capable of performing all services as your single provider. Thank you for your consideration of U.S. Tow for this contract. h Very truly f urs, aosden d Stephanie McColgan President/CEO Vice President and Secretary/Treasurer -1v- INTRODUCTION U.S. Tow, Inc. has served as the Official Police Garage for the Newton Division of the Los Angeles Police Department for the past 13 years. In this capacity, we have been responsible for towing and storage services for the LAPD, the Department of Transportation and other City of Los Angeles departments. We have additionally served the California Highway Patrol and the Los Angeles County Sheriffs Department. During those years, we have developed strong and impeccable guidelines for the conduct of our business. We also have developed strong ties to the community which surrounds our facility and of which we consider ourselves a part. U.S. Tow, Inc. also has served as the Franchise Tow Fee Program contractor for the City of Vernon Police Department for the past three years. As such, we view ourselves as having a specific contractual obligation to Vernon and it is twofold: (1) every single day of the year and every single hour of each day we must provide an organized, timely response to the officers of the Vernon Police Department to pick up and tow vehicles and there can be no lapse in this performance; and (2) at the time that a vehicle is released to its owner, we must provide careful, courteous and empathetic service throughout the release. It is important to note that, in the three years that we have served the Vernon Police Department, we have never had a motorist complaint. We must additionally create accurate and complete paperwork as part of the entire process. It is thus significant to note that, in the three years that we have served the Vernon Police Department, the City has consistently received monthly reports/franchise fees in a timely manner. For those vehicles that are not released and must instead flow through the lien process, a completely different set of rules governs. This process also requires stringent controls and strict compliance with the law. We are dedicated to providing service to the City of Vernon while, at the same time, maintaining strong standards of quality and safety for our customers. And, we strongly believe that we can continue to serve the Vernon Police Department as a single provider. U. S. Tow has through the years of its operation developed strong training processes for every one of our staff persons, We consider these to be the core of our association with the LAPD, City of Vernon Police Department, DOT and other City agencies as well as our private clients. We continuously leave no detail of our employee training to chance, making every effort to provide our staff with training that is comprehensive and meaningful. As a result, we are able to keep customer complaints to a minimum. U.S. Tow has always supported involvement in the community in which we work_ However, since his acquisition of the business in 2013, Moshe Ben Dayan has made a particular effort to increase the community involvement of the firm. Mr. Ben Dayan understands that investment in the community in which he works represents an investment in U.S. Tow itself. As you evaluate the possibility of again selecting U.S. Tow as the City of Vernon's Franchise Tow contractor, we want you to understand that we at U.S. Tow will continue to work very hard every day to provide the very best service to the City of Vernon, the members of Vernon's Police Force and the customers associated %ith those towing and storage operations. We bring to this submission our extensive past OPG experience, our three years of service as the City of Vernon Police Department's Franchise Tow contractor, Mr. Ben Dayan's expertise and the professional qualifications and dedication of our staff As you know, we do not require a site; we have one. We do not require a functioning office with all of the latest computer and security equipment; we have it. We do not require tow equipment; we have the best. We understand that the Request For Proposal for the letting of the Franchise Tow Fee Program contract is competitive, but we ask that you consider our past experience with the LAPD and the City of Vernon, our long-term operation and staying power, our relationship with the community and our commitment to strong performance at all times and in all circumstances. 2 GENERAL SCOPE OF WORK/ WORK PLAN FACH ITY Physical Location The facility of U.S. Tow, Inc. is located at 2119 East 251' Street, directly across 25 h Street from the northern boundary of the City of Vernon. This proximity provides us with a distinct advantage relative to the provision of towing and storage services to the City of Vernon Police Department, to customers who must redeem vehicles and for evidence hold purposes. U.S. Tow's facility is a point of great pride for its owner and management. Our facility consists of state-of-the-art construction and contains clean, well organized, modern evidence hold, ancillary storage, dispatch and office space. It is situated on a fully concreted lot which is meticulously maintained. We pride ourselves on the image that is conveyed to the governmental agencies with which we are involved including the City of Vernon, the public that we serve and the surrounding community and this image is carefully monitored. Our location complies with all City of Los Angeles zoning requirements for a towing operation and auto park, with a zoning designation of M3-1, and no Conditional Use Permit is required. We believe that U.S. Tow sets the bar for the way in which a towing operation facility should appear. Our property contains 174,240 square feet (4.0 acres) with aluminum and steel fencing which is eight feet in height and is topped with concertina wire. The yard has concrete flooring and contains capacity for 750 vehicles. Because of this large capacity, we are able to store impounded vehicles for as long as is deemed necessary by the Police agency involved including the City of Vernon Police Department. The yard is very well lighted and there are 50 cameras providing 24-hour video surveillance (archived for a minimum of 180 days). Our storage yard is immediately adjacent to our business office and is attended at all times by our staff members. U.S. Tow has personnel on -site 24 hours per day 365 days per year and we are open to the public between 7:00 a.m. and 7:00 p.m. seven days per week 365 days per year. We are also always available to accommodate special City events. Our property has been leased to U.S. Tow on a long-term basis. Our property lease was renegotiated shortly after Moshe Ben Dayan acquired the company in 2013. The initial lease term of five years ran from September, 2013 to September, 2018. We now have begun the fast of two options of five years each, with the lease ultimately terminating in 2028. 3 In addition to our primary facility, U.S. Tow has a secondary lot located at 1615 East Adams Boulevard, a distance of .8 miles. This site contains two acres of land and a small supply office and has a capacity of approximately 200 vehicles of ancillary storage. The site is well secured with lighting, 12-foot high solid aluminum fencing, security cameras and security beams with sirens. Administrative Facility Our facility contains approximately 12,600 total square feet of building area and houses four separate personnel offices, dispatch, accounting, a filing room for auction records and other files, a lien sale area, an IT area, a classroom/break room for company and community use, an Evidence Hold Area and ancillary storage space. Evidence Hold Area This 2,600-square-foot secure area has 24-hour surveillance and limited access with specific rules for entering and exiting. It is equipped with two roll -up doors for unobstructed access and has a capacity of 10 vehicles. There is an additional secondary Evidence Hold Area which is protected by one metal roll -up door and a bullet proof ballistic glass pedestrian door as well as an Evidence Property Room. Our Evidence Hold Area has a specifically designated inspection area which is accessible only to designated U.S. Tow personnel and Police officials. Indoor Workshop Our facility has an indoor workshop for the storage of equipment such as air compressors and tire changing machines. TOW EQUIPMENT The staff and management of U.S. Tow, Inc. have many combined years of experience with various types of tow equipment. This experience has resulted in the knowledge that deploying the correct equipment is critical to the efficiency and success of Official Police Tow operation. All of our tow equipment is equipped as provided in the California Vehicle Code. Another very important element for our operation is that our tow drivers have the best and most appropriate equipment to complete tasks in a damage free and expeditious manner. As the members of the Vernon Police Department well know, the area in which we are located has a diverse impound environment. Vehicles often are stripped of major components such as wheels, engines and body panels and sometimes are burned and/or wrecked. At the other end of the spectrum, we handle custom and high value vehicles. Our equipment, including flatbeds and wheel-lift/standard duty trucks as well as heavy duty equipment including trucks and a trailer, is engineered to accommodate these diverse situations in a timely and efficient manner. Our wheel-lift/standard duty trucks have been engineered and manufactured to be efficient and fast, thereby providing for the immediate removal of vehicles from major thoroughfares. With these trucks, peak hour tow away zones can be cleared expeditiously to relieve traffic congestion and provide the public with clear paths to their destinations during heavy traffic periods while allowing City personnel to respond to other duties without unnecessary delays. With the utilization of experienced and trained personnel, an impounded vehicle can be removed in just minutes by a wheel-lift/standard duty truck. Wheel -lifts additionally provide damage free towing by lifting vehicles by only their tires. Body panels, front ends, bumpers and under carriages are not touched by the towing unit, thereby ensuring damage free handling of towed vehicles. Wheel- lift/standard duty trucks also allow efficient towing from parking garages and towing from off -road areas. Our flatbed carriers have been selected to provide efficient and damage free vehicle removal and transport. Vehicles with extensive damage, missing wheels or which are heavily burned are suited for removal by flatbed. Flatbeds also are well suited to hybrid, electric, exotic and custom vehicles. In addition, bulk items such as cargo from damaged vehicles, large or heavy vehicle components from "chop shops," motorcycles or stolen vehicles can be safely loaded onto flatbeds to provide damage free transport with minimal loading time. Flatbed carriers also provide the capability to transport two vehicles at the same time, thus allowing us to respond quickly and efficiently when requests for service are made in proximate geographic locations or when requests are made in a narrow time frame. Our choice of Kenworth and Peterbilt chasses is based upon their capability to handle two vehicles at once and/or to transport heavy and/or oddly shaped cargo safely. Our heavy duty trucks, with their adjustable booms and five - ton lifting capacity, and our heavy duty trailer are available for the heaviest requirements including the towing of large and oversized vehicles, and again attest to our well- rounded, complete towing capability. Our drivers are highly trained to operate all of our tow units. In particular, flatbed units require highly skilled drivers with a thorough knowledge of the machinery involved. They also are trained to unlock locked vehicles, a frequent request from our Police clients. Our drivers are trained to operate units with the priority of safety to themselves and to the public they serve. Continuing education enhances their knowledge base and ability to perform the tasks involved. If selected to again be the Franchise Tow Fee Program contractor for the City of Vernon Police Department, we will continue our process of filing with the Department the name, address, date of birth, driver's license number and all other information required relative to each of our drivers. We will also notify the Department of any driver no longer employed by us as well as the identity of any driver whose license is suspended. Our training procedures are in writing and are available for perusal by the Vernon Police Department at any time. U.S. Tow, Inc. also is a member in good standing of the California Department of Motor Vehicles Pull Program. Within our facility, the use of forklifts with special attachments provide efficient and damage free vehicle movement and/or vehicle release. Our forklifts are powered by liquid propane, providing low emission levels and reduced carbon monoxide release. U.S. Tow constantly monitors trends in tow equipment, vehicle impounds and safety practices. It is through this due diligence that we are able to provide our clients and the motoring public with the highest level of safety and service. U.S. Tow has a total of eight tow units, including two wheel -lifts and six flatbeds. We additionally have three heavy duty trucks and one heavy duty trailer. In addition, U.S. Tow has access to the 23 trucks of Tip Top Tow Service in case of a large emergency operation or a disaster operation. A listing of the tow units of U.S. Tow is provided on the following page. TWO-WAY RADIO COMMUNICATION EQUIPMENT U.S. Tow, Inc. uses Kenwood hardware for its two-way radio system. The system employs mountain -top repeaters to maximize coverage area and provide reliable, quality communication, thus enabling instant access to our fleet and personnel. Our two-way radio communication equipment also sends and receives Police tow requests between dispatch and our tow units on a first priority basis. Through its use, all of our clients benefit from faster service, increased efficiency, quick schedule or task changing and higher productivity. The City of Vernon Police Department has for the past three years been the recipient of the quality communication deriving from this system. DISPATCH COMPONENTS U.S. Tow, Inc. utilizes an efficient dispatch system which features three components — proper tools, adequate staffing and management oversight. Our use of GPS vehicle tracking and computerized dispatch is integrated to maintain the highest level of service. Our system includes time stamping of all requests received as well as notation of the exact time the request is assigned to a tow unit, the time the tow unit arrives at the scene of the request and the time that the tow unit returns to the U.S. Tow facility. Our system also assigns a number to each tow request for tracking purposes. Our dispatch terminals are dedicated to the function of dispatch only. Our radio communications equipment sends and receives Police tow requests between dispatch and the tow units on a "first priority" basis. The dispatchers of U.S. Tow are trained in the effective use of radio equipment in order to maximize efficiency. The dispatch office is equipped with a telephone system capable of receiving tow requests on a "first priority" basis and dedicated telephone lines ensure "first priority" to "Police" calls. Dispatch is a dedicated function on a 24-hour per day, seven-day per week, 365-day per year basis. Dispatchers are available to release vehicles seven days per week between 7 a.m. and 7 p.m. and for a minimum period of four hours after any special event. Every member of our office staff is cross -trained in order to provide an excellent service standard in the execution of dispatch duties. 0 TOW UNITS U.S. Tow, Inc. owns 13 tow units and one trailer, as follows: Unit ! T Year Make Weight lbs VIN 19 Flatbed 2005 Kenworth T-300 26,000 2NKMIHZ6X05M098216 20 Flatbed 2015 Peterbilt 26,000 21&PNHM6X0FM298418 22 Wheel -lift 2005 Ford F-550 19,000 1FDAF56P55EB89089 27 Flatbed 2006 Kenworth T-300 I 26,000 2NKMHZ6X56M154250 28 Flatbed 2016 i Peterbilt T337 26 ,000 2NP2HM6XXGM347211 30 Wheel -lift 2017 Dodge 5500 19,700 3C7WRMBL1HG572607 33 Flatbed 2017 Kenworth T-270 26,000 2NKHHA46X9HM133554 34 Flatbed 2017 Kenworth T-270 26,0 00 2NKHHM6X41IM133560 35 Flatbed 2018 Kenworth T-270 26,000 2NI IM iXXJM181201 25 Wrecker 2014 Peterbilt 54,000 1NPWL49XOED187127 16 Wrecker 2015 Kenworth 35,000 2NK9-MIZXXFM439593 80 Tractor 2007 Freightliner 80,000 I 1FUJA6CK47LX17262 81 Trailer 2015 Landoll 97,000 1LH440VH1F1021834 82 Tractor 2015 Peterbilt 377 52,000 1XPCDP9X4FD290009 INFORMATION TECHNOLOGY KNOWLEDGE The computer system utilized by U.S. Tow is the Towing Operations Systems (TOPS) system. It is used for both dispatch and accounting. The program utilizes functions which provide dispatch, vehicle inventory search, property removal with receipt, inspection of a vehicle with receipt, evidentiary hold area search and auditing, lien processing including the removal of liened vehicles, VIN verification of make and model, cash on delivery options and private property impound tracking. Not all employees are granted access to sensitive information contained in the tow program. Only management and ownership can access all records pertaining to any particular vehicle. Any changes made in the computer record concerning a vehicle are tracked through an exception report. The exception report is checked every morning by management to ensure that no unauthorized changes have been made to any computer record. The program also has a fleet function by which U.S. Tow can maintain fleet data as well as an accounting function for maintenance of accounts payable and accounts receivable. TOPS also has reporting functions that allow us to keep daily, weekly and monthly internal reports. Our accounting department additionally uses QuickBooks to maintain a checks and balances system for all accounts. QuickBooks provides U.S. Tow with a controlled method by which to track accounts, print statements and maintain a ledger for monies that flow in and out of the company. QuickBooks Pro is used to pay bills, record payroll, reconcile cash and keep track of vendor and employee ledgers and advances. A daily back-up of our computer system is completed and stored at a remote location. An outside firm monitors this back-up on a daily basis. We additionally have software support readily available for our tow program. All files are backed up several times per day and we have a working generator in case of a significant power failure. Our computer system, software and tow program are set up to generate franchise fees (which are placed in a separate account) and impound information and the safeguards are in place to monitor these functions at all times. Our dispatch, tow Iot management, impound and franchise fee software has a long history of use within U.S. Tow. Our hardware has been carefully selected to provide both reliability and ease of use. Computer work stations, servers, telecommunications and video surveillance have been chosen and implemented to provide the highest levels of security, accuracy, accountability and service. VEHICLE IMPOUND INFORMATION CENTER VHC Reports The VIIC system provides our law enforcement customers including the City of Vernon Police Department with real-time reconciliation and auditing of remitted fees through a computer system that cannot be altered. This system provides very readable PDF reports or reports that can be downloaded into a CSV file for the Police Department's use in daily oversight. VIIC system features include: • Detailed monthly activity reports which show all impound and storage activity; • Vehicle reports which show vehicle date in and date out; • Vehicles by "hold" status; • Gross revenue remittance reports; and • Vehicle release fee remittance reports. Law Enforcement Access And Information The VIIC system allows authorized personnel to quickly and accurately track vehicles, thus ensuring the proper collection of fees for towed and impounded vehicles. Through secured Internet access (htlp://Nvww.opiziaviic.com or by stand-alone computers located within authorized law enforcement facilities such as the Vernon Police Department, users can obtain immediate access to information pertaining to impounded vehicles 24 hours per day 7 days per week. This information consists of several components including vehicle inventories by vehicle make, license plate VIN and original location of the impound. Public Access And Information Although the information available to law enforcement agencies such as the Vernon Police Department is more comprehensive than that available to the general public, the VIIC system also provides the public with valuable real-time information which facilitates the location of impounded vehicles. With the VIIC system, the public can determine the location of vehicles through Internet access. Required search information includes the license plate number and VIN. Once the vehicle is located, the VIIC system provides the U.S. Tow name and address, directions to our facility, release hours, fees incurred and a simple matrix by which fees can be calculated. MONTHLY REPORTS If again selected to be the Franchise Tow Fee Program contractor for the City of Vernon Police Department, U.S. Tow will continue to submit a monthly report to the Captain of Police which, as per the City of Vernon requirement, includes the following: *Total Police impounds. *Number of times dispatched by the Vernon Police Department. *Number of calls resulting in impounds. *Number of vehicles sold on lien sale under authority of Section 3072 Civil Code and reporting said lien sales as per authority of Section 22705 CVC. *Names and addresses of buyers and description of vehicles when sold. *Number of calls answered in which time beyond one hour was required. EVIDENCE HOLD VEHICLES U.S. Tow, Inc. has 13 years of experience as an OPG for the City of Los Angeles Police Department and thus of dealing with vehicles and vehicle -related components that are on "hold" for evidence or require processing by a crime lab unit. Moshe Ben Dayan, the owner of U.S. Tow, has 28 years of experience in the handling of evidentiary holds and maintaining the integrity of the "chain of custody" in conjunction with his other public agency towing operations through his firm Classic Tow, Inc. dba Tip Top Tow Service. Over the past three years U.S. Tow also has also provided evidence hold services to the Vernon Police Department. All of our personnel are acutely aware of the importance of handling vehicles with evidence holds. A set of specific steps are consistently employed in order to ensure that vehicles are not mishandled and that the "chain of custody" is maintained at all times. All of our personnel receive training on how to deal with vehicles from the moment a call is generated until the final disposition of the vehicle occurs. Dispatchers advise drivers of a request for service for a vehicle that requires special handling due to evidence or criminal lab processing. • Drivers request from the impounding officer or the officer in charge at the scene of the impound whether any special handling is required so as not to touch surfaces of a vehicle, not to enter a vehicle, not to disturb possible material under or on a vehicle or any other special requests dealing with the handling of the vehicle. Once evidence hold vehicles arrive at the storage yard, drivers sign the Evidence Log Book noting the time, date, year, make, model, color, VIN, license and names of any persons who will enter the Evidence Hold Area in conjunction with the vehicle. 110 • Following placement of a vehicle or components of a vehicle within the Evidence Hold Area and the securing of the Hold Area, drivers return to the office to notate the date and time of completion of the vehicle and/or vehicle components placement. • Drivers receive instruction on the handling of vehicles utilizing our equipment so that the vehicle can be transported without disturbing fingerprints and/or other physical evidence contained on or inside it. As vehicles arrive at our location, they are entered into our vehicle inventory database and the Evidence Log Book. In order to verify the time of entry, U.S. Tow utilizes a time stamp along with the manual entry in the Evidence Log Book. Within the vehicle database, a special "hold" is placed and this creates a flag which must be specifically acknowledged prior to any change including an authorized release by the agency placing the original hold on the vehicle such as the Vernon Police Department. Often vehicles get released from "hold" status prior to the release of the vehicle to the owner or interested party. Vehicles that are released from a "hold" status prior to removal by the owner or interested party have specific notes entered in the vehicle database as well as the agency, name, ID, date and time that the vehicle's "hold" status was removed. Associated paperwork is additionally attached to the vehicle record (CHP180). Once the vehicle has had the "hold" released, it is removed from the Evidence Hold Area and placed in the general vehicle inventory. U.S. Tow has a segregated, completely enclosed evidence warehouse with a storage capacity of a minimum of 10 evidentiary/criminalistic hold vehicles. U.S. Tow also maintains an area that can be converted to a temporary secure hold area in the event of a large scale crime involving many vehicles or bulk items. A minimum of six additional vehicles can be secured in this area. Evidence Hold Area entry is limited to OPG employees and concerned law enforcement officials such as members of the Vernon Police Department and video surveillance is used to enhance the security of vehicles within the Evidence Hold Area. An electronic record of the person, time, date and duration of access is maintained. This is accomplished through entry system technology which features a magnetic lock system with unique entry key fob assigned only to management. The supplier of our entry control and electronic entry and exit recordkeeping is Axis. The Axis system features electronic recording and physical hardware that is secure and that provides access Iimited to management in order to ensure that the "chain of custody" is not compromised. All entries are also noted in the Evidence Log Book. The elements of recording and recordkeeping of entry to our Evidence Hold Area allow management and law enforcement to validate all access. The area has large, clear posting prohibiting entry. The Evidence Hold Area features ample lighting to aid detectives and/or evidence technicians in the processing of vehicles. U.S. Tow also has a vehicle lift available on -site to aid investigators. Through all of these mechanisms, we ensure that only vehicles or vehicle parts that are held for evidence or criminalistic hold are stored within the Evidence Hold Area. al With respect to the City of Vernon Police Department, if U.S. Tow is again selected to be the Franchise Tow Fee Program contractor, notification will be provided to the Police Captain or his/her designee of vehicles with a "hold" that are stored in excess of 72 hours. Asper the City of Vernon Police Department requirement, "holds" will expire 10 calendar days after the date of a tow unless otherwise extended by a Police Department employee. LIEN SALE EXPERIENCE U.S. Tow, Inc. files for vehicle liens following California Civil Code Sections 3068.1, 3071, 3072 and 3074. Ultimately, not all liens started end in disposal through public auction. Many vehicles are redeemed by registered owners, legal owners or authorized interested parties, thus accomplishing the intended purpose of notification followed by redemption. In the event that a vehicle is not redeemed, a sale is conducted to satisfy the outstanding lien and avoid the stockpiling of vehicles. Vehicle disposal through public auction has been performed for more than 13 years by U.S. Tow and more than 23 years by Moshe Ben Dayan via other towing operations that he owns and operates. U.S. Tow sells vehicles in a fair and impartial manner to the highest bidder. Our sale list is posted in public view at our facility a minimum of 10 days prior to the sale date, and vehicles are available for inspection one -and one-half hours prior to the sale time on the sale date. We continually strive to improve levels of customer service to members of the public who attend our weekly auto auctions. U.S. Tow is bound by California Civil Codes relating to the disposal of impounded vehicles. U.S. Tow also stringently follows the fee structure outlined in the California Civil Codes that pertain to the processing of vehicle liens. If again selected to be the Franchise Tow Fee Program contractor to the Vernon Police Department, we will continue to always be available to review any other elements of our lien sale operation requested by the Police Department. CUSTOMER SERVICE U. S. Tow takes extreme pride in its exceptional customer service. The impound process is by its very nature a stress producing experience and we attempt in every possible way to expedite the process and make it as comfortable as possible. Registered owners redeeming vehicles can expect to deal with employees who are well trained, courteous and professional and with a facility which is clean, modern and secure and which provides them with comfort in the event that they need to wait for appropriate paperwork, acceptable form of payment or a towing service for a disabled vehicle in order to complete the release process. U.S. Tow completely understands the responsibility for the proper release of vehicles to parties who have a legal right to take possession and we take all necessary precautions through established procedures throughout the release process. Our personnel are trained to verify that a proper release has been issued by us or by the relevant governmental impounding agency including the Vernon Police Department prior to the release of vehicles that have either a statutory or evidence hold. A dedicated 12 computer system is available to check the "scofflaw" status of vehicles prior to their release. Personal property is released to identified, authorized persons and is inventoried and notated on the vehicle record. Our staff also is trained to answer general questions regarding the disposition of vehicles and lien sale auction information. Computer equipment with access to our vehicle inventory software is available to handle high - volume release situations. COMMUNITY SUPPORT AND INVOLVEMENT U. S. Tow has since its inception and continues to understand the importance of support of and involvement in the local community. Even though we are physically located in an industrialized portion of the City of Los Angeles as the Vernon Police Department well understands, we are very aware that there is a significant community of residents surrounding our site. As such, it has been our continuing philosophy of operation to identify and support portions of the community and community projects in need of financial sponsorship and the donation of other assets. We additionally have a well appointed classroom/break room at our facility which we offer for community use. 13 U.S. TOW, INC. TOW RATES/FEES i Towing Storage �_Ligh_tDuty_ $160.00 $50.00 under 10,000 GVWR Motorcycle $160.00 $25.00 Medium Duty $271.00 $60.00 Heavy Duty $350.00 $75.00 Low Boy $350.00 $?5.00 Super Heavy Duty/ $550.00 $75.00 Wrecker I Forklift $ 125.00 r hour Service Call $80.00 Bulk Item $15.00 r pallet/per day) • Towing/recovery work/transport is assessed portal to portal. There is no fee variation for night tows. • Storage/impoundment rates are the same for day and night, Our release hours are 7:00 a.m. — 7:00 p.m. After hours fees apply and are half the tow. • Towing rates are subject to 30-minute increase increments after the first hour. • Storage for less than 24 hours is charged as one day. After 24 hours, storage is charged per calendar day. • Service calls are based on a one-half hourly tow rate. • Vehicles not redeemed within 72 hours are subject to lien sale/notice fees of $70.00 - $100.00. • AlI City vehicles under I ton and towed within 10 miles are free. • All City vehicles under 1 ton tire changes are free within 10 miles. 14 ABILITY OF U.S. TOW, INC. TO PERFORM THE NECESSARY SERVICES U.S. Tow, Inc. was originally founded as a California "S" corporation in 1983. The company was purchased by Moshe Ben Dayan in 2013. Mr. Ben Dayan is the sole Owner/President/CEO and owns 100% of the corporation. U.S. Tow, Inc. has a primary location at 2119 East 25t' Street, Los Angeles, and a secondary storage location at 1615 East Adams Boulevard, Los Angeles. These facilities have been discussed previously in this Proposal under General Scope of Work/Work Plan. The firm has a total of 25 employees. STATE AND CITY LICENSES U.S. Tow, Inc. is licensed to operate in the State of California, the City of Los Angeles and the City of Vernon. Our licenses include City of Los Angeles Parking Occupancy Tax M; City of Los Angeles Professions/Occupations; City of Los Angeles Police Commission Permit for Towing Operation; City of Los Angeles Police Commission Permit for Master .Auto Park; City of Los Angeles Police Commission Permit for Auto Park; State of California Department of Motor Vehicles Motor Carrier Permit; and City of Vernon Business License. EXPERIENCE OPERATING A COMPLEX BUSINESS As stated above, Moshe Ben Dayan purchased U.S. Tow, Inc. in 2013. Mr. Ben Dayan came to the purchase with a strong understanding of the highly regulated and complex operations of an Official Police Garage/Police Tow. Since his purchase of U.S. Tow, Mr. Ben Dayan has been working to improve the already strong operations and level of service of U.S. Tow's overall operations. Based upon commendations that he has received from members of the Los Angeles Police Department and other U.S. Tow clients, he appears to be succeeding. Since 2015 U.S. Tow has been the Franchise Tow Fee Program provider for the City of Vernon Police Department. In that regard, we have performed as the sole provider of towing and storage services to the Vernon Police Department. During the course of the contract, we have met the requirements of the Vernon Police Department including more than sufficient and qualified office, dispatch and driver personnel; well equipped and diverse tow trucks with both light duty and heavy duty capability; an excellent primary facility which is located very proximate to the City of Vernon boundary; and careful, diligent management providing constant oversight. In addition to U.S. Tow, Mr. Ben Dayan owns and operates Classic Tow, Inc. dba Tip Top Tow Service. He founded and has owned and operated this company since 1989 and it has been his full-time and only business involvement until his purchase of U.S. Tow. 15 Tip Top Tow Service is the Official Police Tow for both the Cities of Santa Monica. and Beverly Hills. The firm has worked in this capacity for Santa Monica since 1993 and for Beverly Hills since 2012. Service to these entities is highly regulated and involves impounding of vehicles including owner requests, statutory holds and evidence holds as well as the roadside servicing of City -owned vehicles and traffic accident assistance. Mr. Ben Dayan has additionally participated in the California Highway Patrol's (CHP) rotation Tow Service Agreement (TSA) since 1992, providing general towing and impound and storage services. Additionally, Mr. Ben Dayan is a Freeway Service Patrol provider for the Los Angeles County Metropolitan Transportation Authority (LACMTA), providing freeway roadside services to stranded motorists since 2005. The contracts let by this Agency are highly regulated with scheduled and random inspections of tow truck units and facilities conducted by LACMTA itself as well as by the State of California Department of Transportation (Caltrans) and a special unit of the CHP known as "David Units." The level of regulation imposed by the CUP's David Units is unequaled in the towing industry, with strict enforcement of rules and regulations as well as of drivers and trucks in the field through monitoring by GPS, Caltrans and the CHP itself. The contracts of LACMTA mandate that detail be paid and rules adhered to relative to a multitude of policies and procedures and that standards be strictly enforced. Moshe Ben Dayan and Tip Top Tow Service have never had a contract fail to renew due to substandard service or violation of any rules and/or regulations. The successful operation of a tow business is complex, with many areas of responsibility. We are responsible 24 hours per day 365 days per year for dealing with the vehicles and personal possessions of many people, some of whom are angry about having been towed in the first place, distraught over damage to their vehicle or who are dealing with the consequences of having a family member or friend injured in an automobile accident. We are responsible 24 hours per day 365 days per year for dealing with law enforcement and the complexities of evidentiary holds, constantly being attentive to the issues involved in the potential contamination of important evidence. We are responsible for conducting lien sales with careful attention to the legalities of this procedure such that we do not err either on our own part or for the interests of the customer. We are responsible to our employees for the creation of a work environment that is comfortable, clean and conducive to minimizing the stress of a business which requires proficiency in taking calls, dispatching drivers accurately and quickly and performing tow services in an efficient, orderly and courteous manner. We are responsible to the many vendors with whom we do business including insurance providers and equipment and parts providers and we must be vigilant at all times regarding the licenses and permits that we ho1d. And, we are responsible to the community to maintain a top-notch facility which is environmentally conscious with minimal noise and pollution and to participate in community events and sponsorships. 16 CAPABILITY AND EXPERIENCE OF KEY PERSONNEL MANAGEMENT Moshe Ben Dayan, Owner/President/CEO. Moshe Ben Dayan, Owner/President/CEO of U.S. Tow, Inc., as over the past three years of our service to the City of Vernon Police Department, will continue to manage all aspects of our contract for the Franchise Tow Fee Program. A detailed description of Mr. Ben Dayan's responsibilities is presented in Exhibit B attached to this Proposal. The resume of Mr. Ben Dayan also is included in Exhibit B. Mohammed Jaweed, CFO. Mohammed Jaweed, as over the past three years of our service to the City of Vernon Police Department, will continue to be responsible for the management of all financial and accounting functions as well as all bookkeeping functions for our contract for the Franchise Tow Fee Program. A detailed description of Mr. Jaweed's responsibilities is presented in Exhibit B attached to this Proposal. The resume of Mr. Jaweed also is included in Exhibit B. Richard L. Kettering H, General Manager. Richard Kettering, as over the past three years of our service to the City of Vernon Police Department, will continue to oversee the daily operations associated with our contract for the Franchise Tow Fee Program. A detailed description of Mr. Kettering's responsibilities is presented in Exhibit B attached to this Proposal. The resume of Mr. Kettering also is included in Exhibit B. Stephanie McColgan, Assistant Manager. Stephanie McColgan, as over the past three years of our service to the City of Vernon Police Department, will continue to assist the General Manager with overflow business matters associated with the company, banking and other financial matters and customer relations matters. A detailed description of Ms. McColgan's responsibilities is presented in Exhibit B attached to this Proposal. The resume of Ms. McColgan also is included in Exhibit B. ADMINISTRATIVE STAFF The administrative staff of U.S. Tow, Inc. is carefully trained and is knowledgable in the following areas related to company operations: computer software; dispatch; impound reporting; vehicle release procedures; vehicle property removal procedures; statutory hold vehicle release procedures; evidence/crimina.listic hold vehicle procedures; lien sale procedures and fees; two-way radio use; telephone system and customer service techniques and procedures; criminal activity reporting; and the prioritization of calls for service. The administrative staff of U.S. Tow also receive continuous training in such aspects of company operations as dealing with hostile people and developing solutions to hostile situations; making effective decisions and implementing those decisions; understanding and adapting to the diverse ethnicities and cultures of customers; and establishing empathy for customers. k7 TOR' DRIVER STAFF The tow driver staff of U.S. Tow, Inc. is carefully trained and is knowledgable in the following areas related to its work: highway safety; towing techniques; rollover and recovery techniques; laws pertaining to operation of tow trucks; customer service; automotive lockouts; and tow truck maintenance. Our tow truck drivers also receive continuous training in the following areas: computer software; impound report reading and understanding, vehicle codes; care and custody of vehicles; forklift operation; vehicle release procedures; vehicle property removal procedures; vehicle inspection procedures; verification of proper release of evidence hold vehicles; verification of proper release of statutory hold vehicles; proper handling of evidence/criminalistic hold vehicles; proper placement and spacing of vehicles; criminal activity reporting, vehicle identification (license plate and VIN), prevention of heat stress, dehydration, exhaustion, stroke and related problems; battery safety; prevention of blood borne pathogens; fire extinguisher use; back injury prevention; and eye protection. All drivers must hold and maintain Level 1 Certification from the California Tow Truck Association. A Staff Flow Chart for U.S. Tow, Inc. is provided on the following page. U.S. Tow, Inc. Staff Flow Chart Moshe Ben Dayan President/CEO Mohammed Jaweed CFO Richard Kettering General Manager Stephanie McColgan Luis Cruz Francisco Verdugo Office Manager Driver Manager Yard Manager/Driver Francisco Cardenas Head Dispatcher Alyssa Round Dispatcher Ernie Gonzalez Dispatcher Vicky Reyes Dispatcher Lavette Hatchett Dispatcher Filiberto Hernandez Driver Armando Valenzuela Driver Jonathan Zetina Driver Raul Marroquin Driver Carlos Reyes Driver Brian Chacon Driver Julian Hernandez Driver Richard Quintero Driver David Riley Driver Terrell Taylor Driver A9 Justin White Yardman Walter Ruckwardt Yardman/Driver Rosendo Favela Mechanic/Drive r Armando Cisneros Mechanic/Driver AFFIDAVIT OF NON -COLLUSION BY CONTRACTOR STATE OF CALIFORNIA 1 t ss COUNTY OF LOS ANGELES } and says that he/she is (loon rome of hidMi Moshe Ben Dayan Owner/President/CEO being first duly sworn deposes Own -Sole Om rkv'. 'Pamrcr'. 'Pr.sidem. :Se:remar)of mtw proper urki U.S. Tow, Inc. who submits herewith to the City of Vernon a hid/proposal. That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, pannership, company, association, organization or corporation; That such bid/proposal is genuine and not collusive or sham: That said bidder has not. directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of bids/proposals, said bidder: a. Did not directly or indirectly. induce or solicit anyone else to suhmit a false or sham hid/proposal; h. Did not directly or indirectly. collude, conspire. connive or agree with anyone else that said bidder or anyone else would submit a false or sham hid/proposal, or that anyone should refrain from bidding or withdraw his/her hid/proposal: C. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the hid/proposal price of said bidder or of anyone else. or to raise or fix any overhead, profit or cost element of his/her hid/proposal price, or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation. partnership, company, association, organization. bid depository, or to any member or agent thereof, or to any individual or groylp of individuals. except the City of Vernon, or to any person or persons who have a partnersho or other financial interest with said bidder in his/her business. 1 certify under pe of perjury at the hove information is correct By: Title: Owner/Presi dent/CEQ Date: Nove 9, 2 Nj EXHIBIT A REFERENCES OF U.S. TOW, INC. CONTACT INFORMATION FOR REFERENCES U.S. TOW, INC. Contact Person 1. John Takahashi Senior Highway Operations Program Manager Congestion Reduction Metro Freeway Service Patrol 2 Charirs H. Joseph, Jr. Supervisor Vehicle Maintenance 1 3. Robert N Arcos Assistant Chief 4. Jorge R. Rodriguez Commander Assistant to the Director Name and Address Of Agencv/Finn Los Angeles County Metropolitan Transportation Authority One Gateway Plaza Los Angeles, CA 90212 United States Postal Service 2306 Corinth Ave Los Angeles, CA 90064 Telephone/ Fax/ E-Mail T: (213) 418-3271 F: (213) 922-2955 E-Mail: takahashij@ metro. net T: (323) 272-0030 F: (310) 575-3167 E-Mail: charlesh.joseph@ usps.gov Los Angeles Police T: (213) 486-0100 Department F: (213) 486-0115 Office of Operations E-Mail: 100 W. First St. Robert.Arcos@ Room 1031 lapd.on!ine Los Angeles, CA 90012 Los Angeles Police T: (213) 486-0110 Department (213) 305-4678 Office of Operations ; F: (213) 486-0115 100 W. First St. E-Mail: Room 1032 25668@lapd.online Los Angeles, CA 90012 Services Provided Los Angeles County Metropolitan Transportation Authority Freeway Service Patrol: Beat #12 and Beat #70 General towing and roadside assistance services Official Police Garage for LAPD Newton Division Official Police Garage for LAPD Newton Division CONTACT INFORMATION FOR REFERENCES U.S. TOW,INC. (Continued) 5. Gregg Mader Beverly Hills T. (310) 285-2140 Official Police Tow Sergeant Police Department F: (310) 271-9349 464 N. Rexford Dr. E-Mail: j Beverly Hills, CA , gmader a@ 90210. beveriyhills.org I 6. Hratch Basjmakian Los Angeles ( T: (562) 946-7846 Towing, impound, Investigator County Sheriff's F: None storage, cargo Department E-Mail: recovery 11515 S. Colima ! hbashma@lasd.org Rd. Bldg. C, Room 111 Whittier, CA 90604 EXHIBIT B AREAS OF RESPONSIBILITY STATEMENT AND RESUMES OF KEY EMPLOYEES OF U.S. TOW, INC. AREAS OF RESPONSIBILITY STATEMENT FOR EACH KEY EMPLOYEE The areas of responsibility for each U.S. Tow, Inc. key employee have been carefully allocated based upon that employee's education, experience, skill and ability. MANAGEMENT Moshe Ben Dayan, President/CEO. Mr. Ben Dayan purchased U.S. Tow, Inc. in September, 2013 after a long and experienced history as Founder and President/CEO of Classic Tow, Inc. dba Tip Top Tow Service in Santa Monica. As President/CEO of U.S. Tow, he is responsible for fulfilling the firm's contracts with all governmental and private clients. Specific responsibilities include overall management of all operations including financial operations; company policy including contract procurement and compliance; project staffing; customer relations; community relations; and equipment/facility procurement and operations. Please see the resume of Mr. Ben Dayan. INTERNAL STAFF Mohammed Jaweed, CFO. Mr. Jaweed is responsible for the management of all financial and accounting functions and all bookkeeping functions for U.S. Tow. Mr. Jaweed is responsible for the daily, monthly and annual reporting of the firm including VIIC reporting; reports and timely payments for vehicle release fees, gross receipts fees, collections, forfeitures, monthly reports and business license fees. Mr. Jaweed is additionally responsible for working with auditors and insurance companies to maintain the company's liability and Worker's Compensation insurance and manages all internal and external payroll reporting. Please see the resume of Mr. Jaweed. Richard L. Kettering H, General Manager. Mr. Kettering's responsibilities are significant and multidimensional. Mr. Kettering oversees all daily operations of U.S. Tow. He is responsible for contract compliance; the generation of internal daily reports; VIIC system internal transparency and compliance; complaint/problem resolution for customers and Police agencies; employee relations including hiring and dismissal; tow driver safety compliance; lien sales auctions and paperwork; and security camera content review. Please see the resume of Mr. Kettering. Stephanie McColgan, Assistant Manager. Ms. McColgan prepares lien sale auction paperwork and vehicle release paperwork. She is responsible for the banking activities of the firm as well as human resources/employee applications and other associated paperwork. Ms. McColgan also assists the General Manager with other overflow business matters associated with the company. RESUME OF QUALIFICATIONS MOSHE BEN DAYAN President/CEO EXPERIENCE Owner and President/CEO of U.S. Tow, Inc. 1989 To Present Mr. Ben Dayan purchased U.S. Tow in September, 2013. As President/CEO, he is responsible for fulfilling the firm's contract with the City of Los Angeles as the OPG provider for the Newton Division. Additional specific responsibilities include overall management of all operations including financial operations; company policy including contract procurement and compliance; project staffing; customer relations; community relations; and equipment/facility procurement and operations. Founder, Owner and President/CEO of Classic Tow, Inc. dba Tip Top Tow Service. Operation of this business was started by Mr. Ben Dayan in 1989. Tip Top Tow Service has contracts with the City of Santa Monica, the City of Beverly Hills, the Los Angeles County Metropolitan Transportation Authority, the Los Angeles County Sheriff's Department and the California Highway Patrol and serves numerous other governmental and private clients. Mr. Ben Dayan's responsibilities at Tip Top Tow Service are the same as at U.S. Tow, with the exception that U.S. Tow is an OPG provider while Tip Top Tow is an Official Police Tow provider. EDUCATION High School Diploma received in Israel. Business College attended in Israel. Served as First Sergeant/Parachute Division/Israel Defense Forces for three years. COMMUNITY Mr. Ben Dayan is involved in numerous community activities through both U.S. Tow and Tip Top Tow Service. PERSONAL Date of Birth: 1964 Place of Birth: Israel Marital Status/Children: Married; three children References are noted as an attachment to this Proposal and are also available upon request. RESUME OF QUALIFICATIONS MOHAMMAD JAWEED CFO EXPERIENCE CFO of U.S. Tow, Inc. Mr. Jaweed is responsible for September, 2013 To the management of all financial and accounting functions Present and all bookkeeping functions for U.S. Tow. Mr. Jaweed is responsible for the daily, monthly and annual reporting of the firm including VUC reporting as well as management of other reports; timely payments for vehicle release fees; gross receipts fees; collections; forfeitures; and business license fees. Mr. Jaweed is additionally responsible for working with auditors and insurance companies to maintain the firm's liability and Worker's Compensation insurance and manages all internal and external payroll reporting. July, 1999 To Controller of Tamkin Development Corp., Brentwood, CA. September, 2013 Mr. Jaweed was responsible for all accounting functions; preparation of financial packages for purposes of construction estimates; property management projections; annual budgets; CAM reconciliations; and lease administration functions including property management, lease negotiation and capitalized expense contract negotiation. Mr. Jaweed additionally was responsible for payroll preparation; Federal and State tax reporting; employee benefits programs; and employee health care benefits. April, 1994 To Controller/Accounting Manager of C1M Group, LLC/ April, 1999 Dekel Construction, Inc., Santa Monica, CA. Mr. Jaweed was responsible for all accounting functions including monthly and year-end financial statements, construction draws, budget reports and Federal and State tax reporting. Mr. Jaweed was additionally responsible for tenant rent collections; the biIIing of CAM charges; property tax analysis; and maintenance of a sophisticated computerized accounting system. EDUCATION Bachelor's Degree with Accounting Major, India, 1986. Computer skills in Windows, Linux, Microsoft Office, Accpac, Yardi, QuickBooks Pro, Dataline and CTI Online. PERSONAL Date of Birth: 1967 Place of Birth: Hyderabad, Andhra Pradesh, India Marital Status: Married, three children RESUME OF QUALIFICATIONS RICHARD L. FETTERING H General Manager EXPERIENCE General Manager of U.S. Tow, Inc. Mr. Kettering's 2009 To Present responsibilities are significant and multidimensional. Mr. Kettering oversees all daily operations of U.S. Tow. He is responsible for contract compliance; the generation of daily and monthly reports; VIIC system internal transparency and compliance; client interface; complaint/problem resolution for customers and Police agencies; employee relations including hiring and dismissal; tow driver safety compliance; lien auctions and paperwork; and security camera content review. 2004 To 2009 Longshoreman of Pacific Maritime Association, Ports of Los Angeles and Long Beach. Mr. Kettering was responsible for compiling container manifests; driving tractors for the loading of containers onto ships; locating missing cargo; and signaling traffic for the purpose of loading cargo. 2002 To 2004 Manager, Big 5 Sporting Goods, Whittier, CA. Mr. Kettering was responsible for all duties in connection with the operation of this Big 5 Sporting Goods location. EDUCATION Golden West College, Huntington Beach, CA. Associate of Arts Degree in Social Sciences, 2009. Graduated with Honors. Member Alpha Gamma Sigma Honor Society. OTHER Transportation Workers Identification Credential Certified Tow Unit Driver, California Tow Truck Association, Level 1 PERSONAL Date of Birth: 1979 Place of Birth: Bellflower, CA Marital Status: Married, two children RESUME OF QUALIFICATIONS STEPHANIE McCOLGAN Assistant Manager EXPERIENCE Assistant Manager of U. S. Tow, Inc. September, 2013 To Ms. McColgan's responsibilities include preparation Present of lien sale auction paperwork; vehicle release paperwork; banking activities; human resources/employee applications; and other associated paperwork. Ms. McColgan also assists the General Manager with other overflow business matters associated with the company. 1989 To Office Manager of Classic Tow, Inc. dba September, 2013 Tip Top Tow Service. Ms. McColgan worked with Moshe Ben Dayan to start Tip Top Tow Service in 1989. She continued to work for that entity until September, 2013 at which time she moved to U.S. Tow. Her responsibilities at Tip Top Tow Service included the management of banking/financial aspects of day-to-day business; payroll computation; daily receipts computation; serving as a back-up dispatcher, resolution of difficult customer issues; public relations work with municipal/public agencies as well as with the local community, and resolution of internal staff and vendor issues. Ms. McColgan additionally owned and operated two retail toy stores between 2002 and 2006. EDUCATION Peterborough County School For Girls, Peterborough, England (graduated 1981). PERSONAL Date of Birth: 1963 Place of Birth: Norwich, England Marital Status/ChiIdren: Married; three children EXHIBIT C EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Franchisee certifies and represents that, during the performance of this Agreement, the Franchisee and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Franchisee further certifies that it will not maintain any segregated facilities. B. Franchisee agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Franchisee, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Franchisee agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Franchisee agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. EXHIBIT D 1:7CI1:1k2%, LIVING WAGE PROVISIONS Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the agreement of violating employers. TRANSMITTAL COMMUNICATION 7 i 'PLT {tfp to OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 April 3, 2019 U.S. Tow, Inc. Attn: Moshe Ben Dayan, President/CEO 2119 East 25 h Street Los Angeles, CA 90058 Re: Franchise Tow Services Agreement Dear Mr. Dayan: The insurance requirements have been met. Transmitted herewith is one fully executed original agreement, as referenced above, approved by the City Council on February 19, 2019. If you have any questions regarding this matter, please call contact Anthony Miranda at (323) 583-8811 ext. 114. Very truly yours, ora . Juare Records Management Assistant Enclosure c: Anthony Miranda Purchasing Department Ordinance No. 1259 Agreement File No. 19-019 EXclusivel Industrial FULLY EXECUTED AGREEMENT SIGNATURE ROUTING FORM CONTRACTOR: U.S. Tow Inc. CONTRACT PURPOSE: Franchisee Towing Services Agreement CONTRACT IS: ❑ FEDERAL ❑ PREVAILING WAGE .COMPETITIVE SELECTION & NOTICED RFP ❑ COMPETITIVE BID & NOTICED INVITATION TO BID ❑ EXEMPT FROM COMPETITIVE PROCESS (APPROVAL ATTACHED) ❑ SERVICES ❑ MATERIALS tBUDGETED ❑ NOT BUDGETED TOTAL CONTRACT VALUE: $ Charge Acct. No(s) Amendment Value $ ❑ Contract is an Amendment to Eden Contract No. (if applicable) RESPONSIBLE DEPARTMENT PERSON: Anthonv Miranda PHONE: ext. 114 AUTHORIZATION: 1$,Approved by Council on '...2/1194 (Check one and attach Resolution No. (if applicable) supporting documentation) 0,rA-1 1aV1Q- NQ . \ZS% ❑ Approved by City Administrator on ❑ Approved by Finance Director on ROUTING SEQUENCE: (Please Follow In Order) Initials Date (1) Responsible Department Person 2�2�5' Ill Certifies compliance with Competitive Bidding and Purchasing Ordinance, obtains approval from City Council/City Administrator/Finance Director, and obtains approval as to form from the City Attorney's Office, assembles two (2) originals of contract, obtains proper signatures from contractor/consultant pursuant to the signature requirements, obtains insurance & bond documents, notifies IT to remove related RFP/bid notice from the City's website (if applicable), enters contract into Eden once routing process is complete. (2) Liability and Claims Approves insurance and sureties, if bonds required. 5� oz, (3) Finance (Purchasing) Checks compliance with Competitive Bidding & Living Wage Ordinances and reflected in current budget. (4) City Attorney Approves contract as to form. (5) City Signatory Signs document on behalf of City. �[ l (6) City Clerk / Attests signatures, numbers and tiles contract, enters contract documents (executed contract, supporting documentation, insurance and bonds, etc.) into Laserfiche, transmits duplicate original to contractor/consultant, notifies Responsible Department Person, and notifies any "consultant" of duties to file Form 700, if applicable. Rev. 6/2017 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT Franchisee: Responsible Principal of Franchisee: Notice Information - Franchisee: Notice Information - City: Commencement Date: Termination Date: Consideration: COVER PAGE U.S. Tow, Inc. Moshe Ben Dayan, President/CEO U.S. Tow, Inc. 2119 East 251h Street Los Angeles, CA 90058 Attention: Moshe Ben Dayan, President/CEO Phone: (213) 749-7100 Facsimile: (213) 749-0272 City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Anthony Miranda Chief of Police Telephone: (323) 587-5171 ext. 115 Facsimile: (323) 826-1483 No earlier than thirty-one (31) days after final approval by City Council of City of Vernon of ordinance granting franchise to U.S. Tow, Inc. Three (3) years from Commencement Date, inclusive Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Records Retention Period Three (3) years, pursuant to Section 15.3 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT This Agreement is made and entered into by and between the City of Vernon ("City"), a California charter City and California municipal corporation, and U.S. Tow, Inc. ("Franchisee"), a California corporation with its principal place of business at 2119 East 251h Street, Los Angeles, CA 90058 (collectively, the "Parties") to provide towing services to the City. The Parties agree as follows: RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vernon as set forth in the Request for Proposal issued on or about November 1, 2018, Exhibit A, and Franchisee's proposal to the City ("Proposal') dated November 19, 2018, Exhibit B, both of which are attached to and incorporated into this Agreement, by reference. WHEREAS, pursuant to Chapter 4B of the Vernon Municipal Code, Franchisee has applied for a Police Towing Franchise ("Franchise"); and WHEREAS, the City Council has held a public hearing for the purpose of hearing persons in favor of or in opposition to the granting of such Franchise; and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with Chapter 48 of the Vernon Municipal Code and has agreed to comply with all provisions of that Chapter; and WHEREAS, it is required that City and Franchisee enter into a Franchise Towing Services Agreement ("Agreement") for Police Towing services in the City of Vernon; and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW, THEREFORE, the Parties do hereby agree as follows: Section 1. GRANT OF FRANCHISE. City grants to Franchisee a Police Towing Franchise authorizing Franchisee to engage in the business of Police Towing as set forth in chapter 4B of the Vernon Municipal Code in the City of Vernon and to use the public streets and rights of way for such purpose. This grant is pursuant to the City's Request for Proposal and to Franchisee's proposal for the Franchise. Franchisee is subject to the terms and conditions specified in Section 8.9 of the Charter of the City of Vernon, the provisions of Chapter 4B of the Vernon Municipal Code, the terms and conditions specified in all related resolutions, the terms and conditions of this Agreement, the representations and assurances in Franchisee's application for the Franchise. Section 2. TERM OF FRANCHISE. The term of this Franchise granted to Franchisee shall be for three (3) years, effective from thirty-one (31) days after the date upon which the City Council of the City of Vernon finally approves the ordinance granting the Franchise (the "Effective Date") to the date that is three (3) years from the Effective Date, Inclusive. Section 3. FRANCHISE FEES. 3.1 During the term of the Franchise, Franchisee shall pay a franchise fee to City in an amount equal to 5% of Franchisee's gross annual receipts arising from the use, operation or possession of the Franchise, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 46.8 of the Vernon Municipal Code and any Resolution adopted by the City Council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the City Council at any time during the term of the Agreement. 3.2 The Franchisee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the Franchisee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The Franchisee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by Franchisee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this Franchise and of all rights of Franchisee hereunder pursuant to the procedures set forth in Sections 11 and 12 herein. However, Franchisee has the ability to cure. Further, the City is responsible for insuring that Franchisee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this Franchise. 3.3 Franchisee shall timely pay all required franchise fees to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Each payment shall be accompanied by a written statement, verified by the Franchisee or a duly authorized representative of the Franchise, showing in such form and detail as the Finance Director of the City of Vernon may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Finance Director may require as material to a determination of the amount due. 3.4 The first payment of the franchise fee will be due on and payments shall be due monthly thereafter on the 15th day of each month. 3.5 When Franchisee remits franchise fees to the City, such franchise fees shall be deemed timely paid only if delivered or postmarked on or before the due date. If fees are not timely paid, Franchisee shall be subject to suspension or termination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be established and assessed by the City, including, but without limitation, late fees assessed at the rate of five percent (5%). Section 4. TOWING SERVICES. 4.1 Franchisee shall provide Police Towing services, as set forth in Exhibit A, which is the City's Request for Proposals for Official Police Tow Services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules, standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for Proposals. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 4B of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisition towing services from other service providers as set forth in Section 4B.12 of the Vernon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in the reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. Section 5. RATES, CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the City Council. The prevailing rates prescribed by the Southern Division of the California Highway Patrol, the Los Angeles Police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shall be $160.00 and the storage charge shall be $50.00 per day, until otherwise modified by the City Council. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by MasterCard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after -hour release fee. As part of the award of franchise the City Council will be requested to establish an after-hours release fee not to exceed '/z of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payment of its monthly franchise fees. The report shall be submitted to: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 The report shall include the information required by Section 4B.10(H) of the Vernon Municipal Code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee: Section 7. FRANCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms with generally accepted accounting principles. Franchisee's books, accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents of the City. Such records shall be kept at franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform Police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchise. Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchisee and its subcontractors. Section 8. TOW VEHICLE AND DRIVER, REPORTING, COMPLIANCE, AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to City, that every such vehicle conforms with regional and State vehicle emission standards ("emission standards"), and shall provide documentation of compliance on written request of the City. Franchisee understands and agrees that failure to conform with emission standards may result in suspension, termination or non -renewal of a Franchise. 8.2 Every vehicle operated by Franchisee and for Police Towing services in the City shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, together with Franchisee's telephone number painted upon both sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-1/4" in height and not less than 5/6" stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all identification required of any tow unit driver working for Franchisee, whether as an employee or as a contractor, which information shall be filed not later than ten (10) business days following the effective date of employment or engagement. Franchisee shall also notify the Vernon Police Department within ten (10) business days of the following occurrences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any tow unit driver with Franchisee. Section 9. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, fines, charges or penalties whatsoever, including reasonable attorney's fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner related to the services provided or business conducted under Chapter 4B of the Vernon Municipal Code or otherwise pursuant to this Agreement. 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns, and any successor or successors to the City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses (including, but not limited to, attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the City or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 United States Code Section 9607, and California Health and Safety Code Section 25364, and any successor provisions, to insure, protect, hold harmless, and indemnify the City from liability. Section 10. INSURANCE. Franchisee shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Agreement, including any extensions thereto. The policies shall state that they afford primary coverage. Automobile Liability with minimum limits of at least $1,000,000 combined single limit, including owned, hired, and non -owned liability coverage. (1) MCS 90 Endorsement must be attached to the auto liability policy. Garage Keeper Legal Liability insurance with coverage limits of no less than $1,000,000 for damage to a vehicle towed, impounded or otherwise stored by Franchisee. iii. On -Hook Liability insurance with coverage limits of no less than $1,000,000 for damage to any vehicle towed by Franchisee or otherwise connected to any of Franchisee's tow trucks. iv. Franchisee agrees to subrogate automobile liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. V. General Liability with minimum limits of at least $1,000,000 per occurrence and $2,000,000 aggregate written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Franchisee's performance of this Agreement. (1) If Franchisee employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Franchisee may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. (2) Franchisee agrees to subrogate General Liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. vi. Franchisee shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. In addition, Franchisee shall require each subcontractor to similarly maintain workers' compensation insurance in accordance with the laws for California for all of the subcontractor's employees. Compliance is accomplished in one of the following manners: (1) Provide copy of permissive self-insurance certificate approved by the State of California; or (2) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Agreement; or (3) Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Agreement. vii. Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. viii. Insurance shall be placed with insurers with a Best's rating of no less than A-VIII. ix. Prior to commencement of performance, Franchisee shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. X. Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Franchisee shall immediately notify City and cease all performance under this Agreement until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Franchisee by way of set-off or recoupment from sums due to Franchisee, at City's option; (b) immediately terminate this Agreement and seek damages from the Agreement resulting from said breach; or (c) self -insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Franchisee, by way of set-off or recoupment from any sums due to Franchisee. Section 11. TERMINATION AND SUSPENSION. The City may terminate this Agreement, without cause, by giving the Franchisee thirty (30) days written notice of such termination and the effective date thereof. The City may terminate this Agreement, with cause, by giving the Franchisee (10) days written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the City and shall be, but is not limited to, failure to supply the materials, equipment or service specified within the time allowed or within the terms, conditions or provisions of this agreement. The Franchisee may not cancel this Agreement without prior written consent from the Vernon Chief of Police. Section 12. TEMPORARY SUSPENSION. In addition to termination or suspension as set forth in Section 11, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the continued operation by the Franchisee would constitute a danger to public health, safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different. Notwithstanding other notice provisions of this Agreement, the temporary suspension is effective upon the earlier of either receipt or the expiration of 3 days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for termination hearing and all other information required by the Vernon Municipal Code. The temporary suspension shall remain effective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of Police. Section 13. ACCEPTANCE, WAIVER. Franchisee agrees to be bound by and comply with all the requirements of Chapter 4B and this Agreement. By entering into this Agreement, Franchisee waives, to the maximum extent permitted by law, Franchisee's right to challenge the terms of this Agreement and of Chapter 4B under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14. GENERAL TERMS AND CONDITIONS. 14.1 INDEPENDENT STATUS. It is understood that in the performance under this Agreement, Franchisee shall be, and is, an independent operator, and is not an agent, contractor, or employee of City and shall furnish services in its own manner and method. Further, Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Franchisee in its business operations. Franchisee shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 14.2 FRANCHISE NOT AGENT. Franchisee and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 14.3 WAIVER. The City's waiver of any term, condition, breach or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 14.4 NO ASSIGNMENT. The Franchisee shall not assign or transfer any interest in this Agreement without the express prior written consent and approval of City Council. 14.5 COMPLIANCE WITH LAWS. Franchisee shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 14.6 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 14.7 INTERPRETATION. 14.7.1 Applicable Law. This Agreement, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed and construed according to the laws of the State of California. 14.7.2 Entire Agreement. This Agreement, including any Exhibits attached hereto and any documents explicitly referenced herein, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 14.7.3 Written Amendment. This Agreement may only be changed by written amendment signed by Franchisee and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Agreement shall be of no force or effect. 14.7.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. 14.7.5 Choice of Forum. The parties hereby agree that this Agreement is to be enforced in accordance with the laws of the State of California, is entered into and is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 Order of Precedence. In case of conflict between the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the order of precedence is as follows: Charter the City of Vernon, the Vernon Municipal Code, the ordinance granting this Franchise, resolutions of the City of Vernon this Agreement, the City's Request for Proposals for Official Police Towing Services, and Franchisee's Response to the City's Request for Proposals for Official Police Towing Services. 14.7.7 Duplicate Originals. There shall be two (2) fully signed copies of this Agreement, each of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement, and its execution of this Agreement has been duly authorized. Section 15. ADDITIONAL ASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Franchisee certifies and represents that, during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "C". 15.2 BUSINESS LICENSES. Franchisee shall obtain, and pay any and all costs associated therewith, any Vernon Business License, which may be required by the Vernon Municipal Code and all permits, and licenses applicable to Franchisee's operations under this Franchise, which are required of Franchisee by any governmental agency. 15.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Franchisee's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Agreement and/or is paying only the amounts to which Franchisee is properly entitled under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the City of Vernon. If not, the Franchisee shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personal, salaries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchisee hereby represents warrants and certifies that no member, officer or employee of the Franchisee is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES. Except as otherwise provided in this Agreement, all notices required by this Agreement or by Chapter 4B of the Vernon Municipal Code shall be given by personal service or by deposit in the United States mail, postage pre -paid and return receipt requested, addressed to the parties as follows: To City: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 Copies to: Director of Finance City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: U.S. Tow, Inc. Attention: Moshe Ben Dayan, President/CEO 2119 East 251h Street Los Angeles, CA 90058 Notice shall be deemed effective on the date personally served or, if mailed, three days after the date deposited in the mail. [Signatures Begin on Next Page]. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a California charter City and California municipal corporation DATE M ATTEST: Ma�WrAerk APPROVED AS TO FORM: Brian Byun, Senior Deputy City At rney U.S. Tow, Inc., a California corporation DATED: 19 By: Name: Title: 4::ZE -0 By: �_ Name:iP. C o L Title: EXHIBIT A REQUEST FOR PROPOSALS City of Vernon Request for Proposals (RFP) Franchise Tow Fee Program City of Vernon Police Department 4305 Santa Fe Avenue, Vernon, CA 90058 Phone: (323) 587-5171 City of Vernon Franchise Tow Fee Program Request for Proposals INTRODUCTION AND PROJECT The City of Vernon seeks proposals from qualified bidders to enter into a franchise agreement to perform rotational police towing and storage services. Services to be performed by the selected tow service company include vehicle towing and impound services as directed by the Vernon Police Department. Based on the quality of the proposals received, the City may consider awarding a single tow franchise contract, or multiple tow franchise contracts using a call -for -service rotation. The City does not expect to award more than two (2) franchise agreements under the rotational system, although City Council reserves the right to award contracts at its sole discretion, based on the proposals submitted. The City will select no more than two (2) tow service companies, based on demonstrated competence and a cost effective approach to design, conduct, and assist in the removal of vehicles which are apparently abandoned, or driven by unlicensed drivers, or drivers driving on suspended licenses, or involved in traffic collisions, or vehicles creating a traffic hazard due to mechanical failures. To be eligible for consideration, the tow service company's place of business and vehicle storage facility must be located within a seven (7) mile radius of the Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon CA 90058. 2. BACKGROUND The City of Vernon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles California. Over its long history, Vernon has been developed as an industrial community. At the turn of the 20`� century the lands that make up Vernon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial" city. By the 1920's Vernon was attracting large stockyards and meatpacking facilities. In the 1930's Vernon became the location of choice for many heavy industrial plants. As economic conditions changed over the decades, these large scale industrial operations have relocated out of Southern California and Vernon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Government: The City Council consists of five members, elected at -large, who serve five-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tern from its own membership to serve one-year terms. Labor Force: Vernon has approximately 280 employees, and its departments include a Fire Department, Police Department, Finance Department. Public Works Department, Public Utilities Department, and Health and Environmental Control Department. Present bargaining units recognized include the Vernon Police Officers Benefit Association, Vernon Police Management Association, Vernon Firemen's Association, the Vernon Fire Management Association, International Brotherhood of Electrical Workers Local 47, and Teamsters Local 911. -2- City of Vernon Franchise Tow Fee Program Request for Proposals 3. Key Dates a) Issue Date: November 1, 2018 b) Bidders Deadline for Requests for Information: November 7, 2018 c) City's Response to Requests for Information Deadline: November 14, 2018 d) Deadline to submit Proposal: November 19, 2018 4. REQUESTS FOR INFORMATION A) All questions must be submitted in writing to the City of Vernon Police Department no later than 5:00 pm, November 7, 2018. Responses to verbal questions will not be given. B) Requests for clarifications, questions and comments must be clearly labeled, "Written Questions Re: City of Vernon Franchise Tow Fee Program." The City is not responsible for failure to respond to a request that has not been labeled as such. C) Any of the following methods of delivering written questions are acceptable as long as the questions are received no later than the date and time specified above: • U.S. Mail or Personal Courier: Attention: Robert Sousa. Captain Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 • E-mail: rsousa C covpd.orq D) Responses from the City of Vernon to requests for information will be delivered to all interested parties no later than November 14, 2018. E) Please note that any questions asked and any response provided by Vernon will be sent to every person who will be submitting a proposal, to the extent the City is aware of them. 5. ISSUES OR PROBLEMS TO BE ADDRESSED The selected tow service company shall be able to provide swift, professional service in the removal of any vehicle, as directed by the Vernon Police Department, from any City street. 6. SCOPE OF SERVICES REQUIRED The City of Vernon is seeking the services of a highly qualified tow service company to assist in: Under the terms specified herein as well as in Chapter 4B of the Vernon Municipal Code, Franchisee shall furnish impound, towing, and storage services to the Vernon Police 3- City of Vernon Franchise Tow Fee Program Request for Proposals Department and the City as directed by the Vernon Police Department. To be eligible for a franchise, applicants must meet the City's minimum requirements as specified herein. Franchisee will be required to provide the necessary trained personnel. tow trucks and storage facilities to recover, if necessary, and remove vehicles and tractor/trailers involved in collisions. Franchisee(s) must be able to tow and store vehicles impounded by the police, many times in excess of 30 days; and must be able to clean up and dispose of debris at the scene of an accident at which any vehicle to be towed hereunder was involved. The average response time for any thirty (30) day period pursuant to requests for tow service by the Police Department, must not exceed twenty (20) minutes. The maximum response time for any single request for tow service by the Police Department shall not exceed thirty (30) minutes. In the event the Franchisee cannot respond within twenty (20) minutes, the Franchisee shall immediately notify the Police Department dispatcher and provide an estimated time of arrival. Franchisee must provide a dispatcher available onsite at the tow facility place of business at all times for the immediate dispatching of towing equipment. Franchisee's place of business must be open from 0700 to 1800 hours Monday through Friday. Alternate hours, as directed by the City, must also be available in order to accommodate special City events. Failure or refusal to promptly relay the Police Dispatcher's requests for towing services shall constitute failure to comply with the requirements, terms and conditions of the agreement and may result in termination of the agreement. All tow trucks shall be equipped as provided in the California Vehicle Code. Franchisee's trucks shall be painted, free of major dents, and kept clean and in good working order. Official police tow services shall, at all times, have at least three (3) fully equipped and operational tow trucks in service. All of the tow trucks in service must have a minimum capacity of one (1) ton. At least one (1) of the tow trucks in service must be a flatbed tow truck. At least one (1) of the three (3) tow trucks in service must have a five (5) ton lifting capacity. Every official police tow service shall be equipped for and have personnel proficient in unlocking locked vehicles when requested to do so by Police Department employees. Upon selection the Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all other information required of any tow unit driver employed by the permit holder subsequent to the date of the tow operator permit application, which information shall be filed not later than ten (10) business days following the effective date of hiring. The Franchisee will be required to notify the Vernon Police Department of the name of any tow truck driver no longer employed by such permit holder. This notification shall be given to the Vernon Police Department no later than ten (10) business days following the last date of the driver's employment by the permit holder. -4- City of Vernon Franchise Tow Fee Program Request for Proposals The Franchisee will be required to notify the Vernon Police Department of the identity of any tow truck driver whose license is suspended. The operator shall not be authorized to operate in Vernon unless the operator has provided proof from the Department of Motor Vehicles of the ability to operate a vehicle during work hours. The Franchisee will be required to enroll and participating in a program with California Department of Motor Vehicles (DMV Pull Program) that notifies the Franchisee when their drivers have any change to their driving status or record. This DMV program will alert the Franchisee to any potential problem drivers. Franchisee will be required to comply with the California Vehicle Code and other applicable laws with regards to lien sales, including supplying a list of vehicles each month that the Franchisee intends to lien sale prior to selling same for approval by the department. Franchisee is responsible for maintaining all documents relating to lien sales. 7. QUALIFICATIONS & CRITERIA A. Qualifications: The City of Vernon will select no more than two (2) tow service companies for all of the outlined Scope of Service on the basis of qualifications, experience, and cost. The following are the minimum qualifications to be used to evaluate responses to this Request for Proposal: 1. The applicants can satisfy the insurance, business license, and tow operator permits requirements set forth in Vernon Municipal Code Chapter 4B. 2. The applicants are qualified on the basis of prior experience in the towing operation business and financial responsibility. 3. All tow vehicles and equipment must comply with all state and applicable federal requirements. 4. The applicants can reasonably conduct an official police towing service which complies with all of the requirements of Vernon Municipal Code Chapter 4B. 5. The applicants will accept all tow requested by the City, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment. B. Selection Criteria: The City will conduct a comprehensive, fair, and impartial evaluation of proposals received in response to this RFP. All proposals received will be reviewed and evaluated by a committee of qualified personnel. The name, information, or experience of the individual members will not be made available to any proposer. The Evaluation Committee will first review and screen all proposals submitted, except for the cost proposals, according to the minimum qualifications set forth above. The following criteria will be used in reviewing and comparing the proposals and in determining the highest scoring bid: 40% Qualifications, background and prior experience of the tow service company in the Service Area(s) being proposed, experience of key staff assigned to oversee services provided to Vernon, evaluation of size and scope of similar work performed and success on that work. -5- City of Vernon Franchise Tow Fee Program Request for Proposals 2. 30% Cost and fees to the City for handling matters. Cost is not the sole determining factor but will be taken into consideration. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. If rates differ for different types or levels of service, or for different Service Areas, the Proposer should so state. 3. 10%' Responsiveness to the RFP, and quality and responsiveness of the proposal. 4. 20% References including past performance of proposer. 8. FORMAT AND DELIVERY OF RESPONSE Respondents are asked to submit one (1) unbound original, seven (7) hard copies and one (1) electronic copy (via email to rsousa(a-lcovpd.org) of their proposals in sufficient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum. the following information in sectionalized format addressing all phases of the work in the RFP. A. Format: Limit your proposal to 20 typed 8.5" X 11" pages. or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments. You may attach a company brochure if you wish, but it must be as a separate attachment and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1" margin on all boarders. 2. Organize your submittal in the order described above. 3. Prominently label the package: "Franchise Tow Fee Program" and include the name of the primary contact for the respondent. Deliver the response to: City of Vernon Attention: Robert Sousa. Captain 4305 Santa Fe Avenue Vernon, CA 90058 4. Responses are due on or before 5:00 p.m. on November 19, 2018. Late response will not be accepted. 13. Cover Letter: All proposals shall include a cover letter which states that the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal. If the proposal contemplates the use of sub -contractors, the sub- contractors shall be identified in the cover letter. If the proposal is submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually bind the business entity. With respect to the business entity, the cover letter shall also include: the identification of the business entity, including the name, address and telephone number of the business entity; and the name, title, IM City of Vernon Franchise Tow Fee Program Request for Proposals address and telephone number of a contact person during the proposal evaluation period. C. Introduction: Present an introduction of the proposal and your understanding of the assignment and significant steps, methods and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. D. General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions it for each Service Area proposed. E. Work Plan: Present concepts for conducting the work plan and interrelationship of all projects. Define the scope of each task including the depth and scope of analysis or research proposed. F. Fees and costs: Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer; therefore, the proposal submitted should contain the proposer's most favorable terms and conditions, since selection and award may be made without discussion with any tow service company. All prices should reflect "not to exceed" amounts per item. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. G. Ability of the Proposer to Perform: Provide a detailed description of the proposer and his/her/its qualifications, including names, titles, detailed professional resumes and past experience in similar work efforts/products of key personnel who will be working on the assignment. Provide a list of specific related work projects that have been completed by the proposer which are directly related to the assignment described in this RFP. Note the specific individuals who completed such project(s). Identify role and responsibility of each member of the project team. Include the amount of time key personnel will be involved in the respective portions of the assignment. Respondents are encouraged to supply relevant examples of their professional product. Provide a list of references. The selected tow service companies shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. H. Affidavit of Non -Collusion. Proposer must submit a completed and signed, "Affidavit of Non -Collusion." (Copy attached as Exhibit A). 9. ADDENDA CHANGES AND AMENDMENTS TO THIS SOLICITATION At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda, changes, and amendments, if made, will be posted on the City's website (www.cityofvernon.org), which is deemed adequate notice. A proposer may make a request to the City's project coordinator to be placed on a list of persons to receive notice of any such addenda, changes, or -7 City of Vernon Franchise Tow Fee Program Request for Proposals amendments. The preferred manner of communications is via e-mail due to its timeliness. 10. CONDITIONS FOR RESPONSES TO RFP The following conditions apply to this RFP process: A. Nothing contained in this RFP shall create any contractual relationship between the respondent and the City. B. This RFP does not obligate the City to establish a list of service providers qualified as prime contractors, or award a contract to any respondent. The City reserves the right to amend or cancel this RFP without prior notice, at any time, at its sole discretion. C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFP. D. No conversations or agreements with any officer, agent, or employee of the City shall affect or modify any terms of this RFP. Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. E. The City reserves the right, in its sole discretion, to accept or reject any or all Proposals without prior notice and to waive any minor irregularities or defects in a Proposal. The City reserves the right to seek clarification on a Proposal with any source. F. The dates, times, and sequence of events related to this RFP shall ultimately be determined by the City. The schedule shown above is subject to change, at the sole discretion of the City, although the City will attempt to follow it and, if it must be altered, will attempt to provide reasonable notice of the changes. G. Respondents shall not issue any news release pertaining to this RFP, or the City without prior written approval of the City. H. All submitted proposals and information included therein or attached thereto shall become public record upon delivery to the City Administrator's Office. 11. RIGHT BY THE CITY TO WITHDRAW THIS REQUEST The City may, at its sole discretion and for any reason whatsoever, withdraw this solicitation at any time. IMI City of Vernon Franchise Tow Fee Program Request for Proposals 12. LIVING WAGE ORDINANCE The selected tow service companies shall pay qualifying employees a wage of not less than $10.30 per hour with health benefits, or 511.55 per hour without health benefits. The tow service companies shall also provide qualifying employees at least twelve days off per year for sick leave, vacation or personnel necessity, and an additional ten days a year of uncompensated time for sick leave. There shall be a prohibition on employer retaliation against an employee's complaining to the City with regard to the employer's compliance with the living wage ordinance. The tow services companies, and any sub- contractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D" of the standard form franchise towing services agreement, attached hereto as Exhibit B. Upon the City's request, certified payroll records shall promptly be provided to the City. 13. STANDARD TERMS AND CONDITIONS Prior to the award of any work hereunder, City and proposer shall enter into the written contract for services attached hereto as Exhibit B. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract. The term of the Contract shall not exceed three (3) years. City of Vernon Franchise Tow Fee Program Request for Proposals EXHIBIT A AFFIDAVIT OF NON -COLLUSION City of Vernon Franchise Tow Fee Program Request for Proposals STANDARD FORM CONTRACT - 11 - CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. Franchisee: Responsible Principal of Franchisee: Notice Information - Franchisee: Notice Information - City: Commencement Date: Termination Date: Consideration: COVER PAGE [insert name of franchisee] [insert name, title] [insert name of franchisee] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Anthony Miranda Chief of Police Telephone: (323) 587-5171 ext. 115 Facsimile: (323) 826-1483 [insert commencement date] [insert termination date, three years after commencement date] Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Records Retention Period Three (3) years, pursuant to Section 15.3 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. This Agreement is made and entered into by and between the City of Vernon ('City"), a California charter City and California municipal corporation, and ("Franchisee"), a Police Towing Company with its principal place of business at (collectively, the "Parties") to provide towing services to the City. The Parties agree as follows: RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vernon as set forth in the Request for Proposal issued on or about Exhibit A, and Franchisee's proposal to the City ("Proposal') dated Exhibit B, both of which are attached to and incorporated into this Agreement. by reference. WHEREAS, pursuant to Chapter 4B of the Vernon Municipal Code, Franchisee has applied for a Police Towing Franchise ("Franchise"); and WHEREAS. the City Council has held a public hearing for the purpose of hearing persons in favor of or in opposition to the granting of such Franchise: and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with Chapter 4B of the Vernon Municipal Code and has agreed to comply with all provisions of that Chapter; and WHEREAS. it is required that City and Franchisee enter into a Franchise Towing Services Agreement ("Agreement") for Police Towing services in the City of Vernon: and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW, THEREFORE, the Parties do hereby agree as follows: Section 1. GRANT OF FRANCHISE. City grants to Franchisee a Police Towing Franchise authorizing Franchisee to engage in the business of Police Towing as set forth in chapter 4B of the Vernon Municipal Code in the City of Vernon and to use the public streets and rights of way for such purpose. This grant is pursuant to the City's Request for Proposal and to Franchisee's proposal for the Franchise. Franchisee is subject to the terms and conditions specified in Section 8.9 of the Charter of the City of Vernon. the provisions of Chapter 4B of the Vernon Municipal Code, the terms and conditions specified in all related resolutions, the terms and conditions of this Agreement, the representations and assurances in Franchisee's application for the Franchise. Section 2. TERM OF FRANCHISE. The term of this Franchise granted to Franchisee shall be for three (3) years, from to inclusive. Section 3. FRANCHISE FEES. 3.1 During the term of the Franchise, Franchisee shall pay a franchise fee to City in an amount equal to 5% of Franchisee's gross annual receipts arising from the use, operation or possession of the Franchise, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 413.8 of the Vernon Municipal Code and any Resolution adopted by the City Council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the City Council at any time during the term of the Agreement. 3.2 The Franchisee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the Franchisee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The Franchisee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by Franchisee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this Franchise and of all rights of Franchisee hereunder pursuant to the procedures set forth in Sections 11 and 12 herein. However, Franchisee has the ability to cure. Further, the City is responsible for insuring that Franchisee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this Franchise. 3.3 Franchisee shall timely pay all required franchise fees to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Each payment shall be accompanied by a written statement, verified by the Franchisee or a duly authorized representative of the Franchise, showing in such form and detail as the Finance Director of the City of Vernon may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Finance Director may require as material to a determination of the amount due. 3.4 The first payment of the franchise fee will be due on , and payments shall be due monthly thereafter on the 15t' day of each month. 3.5 When Franchisee remits franchise fees to the City, such franchise fees shall be deemed timely paid only if delivered or postmarked on or before the due date. If fees are not timely paid, Franchisee shall be subject to suspension or termination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be established and assessed by the City, including, but without limitation, late fees assessed at the rate of five percent (5%). Section 4. TOWING SERVICES. 4.1 Franchisee shall provide Police Towing services, as set forth in Exhibit A, which is the City's Request for Proposals for Official Police Tow Services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules. standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for Proposals. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 4B of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisition towing services from other service providers as set forth in Section 4B.12 of the Vernon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in the reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. Section 5. RATES, CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the City Council. The prevailing rates prescribed by the Southern Division of the California Highway Patrol, the Los Angeles Police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shall be $ and the storage charge shall be $ per day, until otherwise modified by the City Council. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by MasterCard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after -hour release fee. As part of the award of franchise the City Council will be requested to establish an after-hours release fee not to exceed !A2 of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payment of its monthly franchise fees. The report shall be submitted to: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon. CA 90058 The report shall include the information required by Section 4B.10(H) of the Vernon Municipal Code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee: Section 7. FRANCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms with generally accepted accounting principles. Franchisee's books, accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents of the City. Such records shall be kept at franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform Police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchise. Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchisee and its subcontractors. Section 8. TOW VEHICLE AND DRIVER, REPORTING, COMPLIANCE, AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to City, that every such vehicle conforms with regional and State vehicle emission standards ("emission standards"), and shall provide documentation of compliance on written request of the City. Franchisee understands and agrees that failure to conform with emission standards may result in suspension, termination or non -renewal of a Franchise. 8.2 Every vehicle operated by Franchisee and for Police Towing services in the City shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, together with Franchisee's telephone number painted upon both sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-1/4" in height and not less than 5/6" stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all identification required of any tow unit driver working for Franchisee.. whether as an employee or as a contractor, which information shall be filed not later than ten (10) business days following the effective date of employment or engagement. Franchisee shall also notify the Vernon Police Department within ten (10) business days of the following occurrences: the license suspension of any tow unit driver, and the end of employment, or engagement. of any tow unit driver with Franchisee. Section 9. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, fines, charges or penalties whatsoever, including reasonable attorney's fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner related to the services provided or business conducted under Chapter 4B of the Vernon Municipal Code or otherwise pursuant to this Agreement. 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns, and any successor or successors to the City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses. demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses (including, but not limited to, attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the City or its officers, employees. agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 United States Code Section 9607, and California Health and Safety Code Section 25364, and any successor provisions, to insure, protect, hold harmless, and indemnify the City from liability. Section 10. INSURANCE. Franchisee shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Agreement, including any extensions thereto. The policies shall state that they afford primary coverage. Automobile Liability with minimum limits of at least S1,000,000 combined single limit, including owned, hired, and non -owned liability coverage. (1) MCS 90 Endorsement must be attached to the auto liability policy. Garage Keeper Legal Liability insurance with coverage limits of no less than $1,000,000 for damage to a vehicle towed, impounded or otherwise stored by Franchisee. iii. On -Hook Liability insurance with coverage limits of no less than 51,000,000 for damage to any vehicle towed by Franchisee or otherwise connected to any of Franchisee's tow trucks. iv. Franchisee agrees to subrogate automobile liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. V. General Liability with minimum limits of at least $1,000,000 per occurrence and $2,000,000 aggregate written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Franchisee's performance of this Agreement. (1) If Franchisee employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Franchisee may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. (2) Franchisee agrees to subrogate General Liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. vi. Franchisee shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. In addition, Franchisee shall require each subcontractor to similarly maintain workers' compensation insurance in accordance with the laws for California for all of the subcontractor's employees. Compliance is accomplished in one of the following manners: (1) Provide copy of permissive self-insurance certificate approved by the State of California; or (2) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Agreement; or (3) Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Agreement. vii. Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. viii. Insurance shall be placed with insurers with a Best's rating of no less than A-VHI. ix. Prior to commencement of performance, Franchisee shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. x. Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Franchisee shall immediately notify City and cease all performance under this Agreement until further directed by the City. In the absence of satisfactory insurance coverage. City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Franchisee by way of set-off or recoupment from sums due to Franchisee, at City's option; (b) immediately terminate this Agreement and seek damages from the Agreement resulting from said breach; or (c) self -insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Franchisee, by way of set-off or recoupment from any sums due to Franchisee. Section 11. TERMINATION AND SUSPENSION. The City may terminate this Agreement, without cause. by giving the Franchisee thirty (30) days written notice of such termination and the effective date thereof. The City may terminate this Agreement, with cause, by giving the Franchisee (10) days written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the City and shall be, but is not limited to, failure to supply the materials, equipment or service specified within the time allowed or within the terms, conditions or provisions of this agreement. The Franchisee may not cancel this Agreement without prior written consent from the Vernon Chief of Police. Section 12. TEMPORARY SUSPENSION. In addition to termination or suspension as set forth in Section 11, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the continued operation by the Franchisee would constitute a danger to public health, safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different. Notwithstanding other notice provisions of this Agreement, the temporary suspension is effective upon the earlier of either receipt or the expiration of 3 days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for termination hearing and all other information required by the Vernon Municipal Code. The temporary suspension shall remain effective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of Police. Section 13. ACCEPTANCE, WAIVER. Franchisee agrees to be bound by and comply with all the requirements of Chapter 4B and this Agreement. By entering into this Agreement, Franchisee waives, to the maximum extent permitted by law, Franchisee's right to challenge the terms of this Agreement and of Chapter 413 under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14. GENERAL TERMS AND CONDITIONS. 14.1 INDEPENDENT STATUS. It is understood that in the performance under this Agreement, Franchisee shall be, and is, an independent operator, and is not an agent, contractor, or employee of City and shall furnish services in its own manner and method. Further, Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Franchisee in its business operations. Franchisee shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 14.2 FRANCHISE NOT AGENT. Franchisee and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 14.3 WAIVER. The City's waiver of any term, condition, breach or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 14.4 NO ASSIGNMENT. The Franchisee shall not assign or transfer any interest in this Agreement without the express prior written consent and approval of City Council. 14.5 COMPLIANCE WITH LAWS. Franchisee shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 14.6 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 14.7 INTERPRETATION. 14.7.1 Applicable Law. This Agreement, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed and construed according to the laws of the State of California. 14.7.2 Entire Aqreement. This Agreement, including any Exhibits attached hereto and any documents explicitly referenced herein, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 14.7.3 Written Amendment. This Agreement may only be changed by written amendment signed by Franchisee and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Agreement shall be of no force or effect. 14.7.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement. and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. 14.7.5 Choice of Forum. The parties hereby agree that this Agreement is to be enforced in accordance with the laws of the State of California, is entered into and is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 Order of Precedence. In case of conflict between the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the order of precedence is as follows: Charter the City of Vernon, the Vernon Municipal Code, the ordinance granting this Franchise, resolutions of the City of Vernon this Agreement, the City's Request for Proposals for Official Police Towing Services, and Franchisee's Response to the City's Request for Proposals for Official Police Towing Services. 14.7.7 Duplicate Originals. There shall be two (2) fully signed copies of this Agreement, each of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement, and its execution of this Agreement has been duly authorized. Section 15. ADDITIONAL ASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Franchisee certifies and represents that, during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "C". 15.2 BUSINESS LICENSES. Franchisee shall obtain, and pay any and all costs associated therewith, any Vernon Business License, which may be required by the Vernon Municipal Code and all permits, and licenses applicable to Franchisee's operations under this Franchise, which are required of Franchisee by any governmental agency. 15.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Franchisee's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Agreement and/or is paying only the amounts to which Franchisee is properly entitled under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the City of Vernon. If not, the Franchisee shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personal, salaries, private auditors, travel, lodging. meals and overhead. 15.4 CONFLICT. Franchisee hereby represents warrants and certifies that no member, officer or employee of the Franchisee is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES. Except as otherwise provided in this Agreement, all notices required by this Agreement or by Chapter 4B of the Vernon Municipal Code shall be given by personal service or by deposit in the United States mail, postage pre -paid and return receipt requested, addressed to the parties as follows: To City: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 Copies to: Director of Finance City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: Notice shall be deemed effective on the date personally served or, if mailed, three days the date deposited in the mail. [Signatures Begin on Next Page]. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a California charter City and California municipal corporation DATED: [FRANCHISEE'S NAME. a [State incorporated in] corporation DATED: By: By: Carlos Fandino, City Administrator Name: Title: ATTEST: By: Name: Maria E. Ayala, City Clerk Title: APPROVED AS TO FORM: Hema Patel, City Attorney EXHIBIT A REQUEST FOR PROPOSALS i MB OV FRANCHISEE'S PROPOSAL EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Franchisee certifies and represents that, during the performance of this Agreement, the Franchisee and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Franchisee further certifies that it will not maintain any segregated facilities. B. Franchisee agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Franchisee, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Franchisee agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Franchisee agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. I::I:IIowa LIVING WAGE PROVISIONS Minimum Livina Waaes: A requirement that Employers pay qualifying employees a wage of no less than S10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the agreement of violating employers. AFFIDAVIT OF NON -COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) and says that he/she is being first duly sworn deposes (Insert "Sole Ow net "Partner". Tresiclent. "Set-retary". or other proper title t of (Insert nacre of bidder) who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not, directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of bids/proposals, said bidder: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain from bidding or withdraw his/her bid/proposal; C. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or fix any overhead, profit or cost element of his/her bid/proposal price, or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, or to any individual or group of individuals, except the City of Vernon, or to any person or persons who have a partnership or other financial interest with said bidder in his/her business. I certify under penalty of perjury that the above information is correct By: Title: ___ FRANCHISEE'S PROPOSAL FRANCHISE TOW FEE PROGRAM PROPOSAL Made To The City of Vernon Police Department Attention: Robert Sousa, Captain 4305 Santa Fe Avenue Vernon, CA 90058 Made By U.S. Tow, Inc. 2119 East 25th Street Los Angeles, CA 90058 COPY Aj --OOFFI V.S. TOW, INC. 119 E. 2 5 t h Street - Las Angel", ('A 90058 November 19, 2018 City of Vernon Police Department Attention: Robert Sousa, Captain 4305 Santa Fe Avenue Vernon, CA 90058 RE: FRANCHISE TOW FEE PROGRAM Dear Captain Sousa: (213)749-77100 Fav {213) 7-40-()�"', U.S. Tow, Inc. is pleased to submit this proposal for the continuation of Franchise Tow Fee Program services for the City of Vernon Police Department, Competitive Position U.S. Tow, Inc. originated in 1983. The firm has served the Los Angeles Police Department as its Official Police Garage for the Newton Division since 2004. It additionally has served the City of Vernon Police Department as its only Franchise Tow Fee Program provider since 2015. U.S. Tow, Inc. also serves a number of other governmental entities including the City of Los Angeles Department of Transportation, the California Highway Patrol, the Los Angeles County Sheriff's Department and the City of Los Angeles School Police Department, Experience/Management U. S. Tow, Inc. was acquired by Moshe Ben Dayan in 2013. Mr. Ben Dayan assumed the ownership of U. S. Tow with a wealth of previous towing experience. He founded and has operated Classic Tow, Inc. dba Tip Top Tow Service at the same location in Santa Monica for more than 28 years. Tip Top Tow Service is an Official Police Contractor for the Cities of Santa Monica and Beverly Hills. It additionally has long-standing contracts with a number of other governmental entities. -t- City of Vernon Police Department November 19, 2018 Page Two of Four Management Staff The major management staff of U.S. Tow has an average of 18 years of experience in the towing industry. This staff operates the Newton Division OPG, the Franchise Tow Fee Program of the City of Vernon Police Department and the other elements of the firm's business with professionalism and integrity and if again selected to be the contractor stands ready to continue to provide excellent service to the City of Vernon Police Department. Additionally, the hiring and training procedures utilized by U.S. Tow are stringent, and we consider it our utmost responsibility to continue to enforce these procedures in the future. Site U.S. Tow continues to have the distinct advantage of an existing site located at 2119 East 25t' Street, Los Angeles which meets all current zoning regulations. This site is located directly across 25'h Street from the northern boundary of the City of Vernon, thereby providing us with immediate access to Vernon. U.S. Tow also continues to have a facility which provides a modern, clean, safe and professional environment. The U.S. Tow site consists of approximately 4.0 acres of screened, secured, lighted, signed and cemented area for the impounding and storage of vehicles and approximately 12,600 square feet of enclosed building area for evidence hold, ancillary storage, administration and lien sale auction of vehicles. Tow Vehicles In an effort to serve all of our clients in a timely and effective manner, we are continuously mindful with respect to maintaining a strong, contemporary fleet of tow vehicles. U.S. Tow currently has a fleet of eight units including six flatbeds and two wheel-lift/standard duty trucks. We additionally have three heavy duty trucks and one heavy duty trailer. This fleet, which we continuously service and upgrade, will allow us to continue to maintain call times well under the 20-minute requirement of the City of Vernon Police Department if we are again selected to be the Department's contractor. City of Vernon Police Department November 19, 2018 Page Three of Four Employees U.S. Tow, Inc. has a total of 20 employees including thirteen tow drivers and seven office personnel. Throughout the years we have developed a staff of highly trained and motivated employees, many of whom have been with the firm for years. Our office employees have considerable experience in all facets of towing and storage including dispatch, computer programming and operation, accounting, monthly report preparation, evidence hold operation, lien sales and customer interaction. Our drivers are particularly highly trained with the ability to complete all tow tasks in a damage free and expeditious manner. Customer Service The employees of U.S. Tow are trained to develop awareness of customer problems, to establish empathy for customers, to understand and adapt to the diverse ethnicities and cultures of customers and to treat customers with respect and their vehicles and personal belongings with professionalism. Each office staff person and driver at U.S. Tow understands that difficult situations arise and our "team" philosophy of operation allows us to proactively handle these situations before they become problematic. Management Moshe Ben Dayan, the President/CFO of U.S. Tow, has been actively involved in the tow industry since 1989 at which time he established Classic Tow, Inc. dba Tip Top Tow Service which he has operated continuously in Santa Monica since that time. It is significant that Mr. Ben Dayan made the operation of Tip Top Tow Service his one and only business commitment until his purchase of U.S. Tow in 2013. Currently, Mr. Ben Dayan devotes his time almost exclusively to U.S. Tow and its clients including the City of Vernon Police Department. City of Vernon Police Department November 19, 2018 Page Four of Four Authorized Contact The person authorized to represent U.S. Tow, Inc. in negotiations with the City of Vernon Police Department is Moshe Ben Dayan, President/CEO, U.S. Tow, Inc. Mr. Ben Dayan additionally is authorized to execute the agreement with the City of Vernon on behalf of U.S. Tow and is the contact point for any questions or concerns relative to this Proposal. This Proposal will remain valid for a period of not less than ninety (90) days from the submittal date of November 19, 2018. Legal Business Status U.S. Tow, Inc. is an "S" corporation, Federal Tax ID#90-1014831. The corporation was founded in 1983. Moshe Ben Dayan is President/CEO of the corporation and Stephanie McColgan is Vice President and Secretary/Treasurer of the corporation. The address of U.S. Tow, Inc. is 2119 East 25'h Street, Los Angeles, CA 90058; the telephone number is (323) 870-7100; the FAX number is (213) 749-0272; and the e-mail address is moshe &,ustow.com_ U.S. Tow currently meets all Federal, State and City requirements and there are no changes necessary nor requirements unmet for us to continue to operate the Franchise Tow Fee Program for the City of Vernon Police Department. Our site is operative, our office functional, our required insurances in place and our economic viability and professional commitment unwavering. We would very much like to again be selected to work with you and we strongly believe that we are more than capable of performing all services as your single provider. Thank you for your consideration of U.S. Tow for this contract. h Very truly iburs, C Zosen n Stephanie McColgan President/CEO Vice President and Secretary/Treasurer -iv- INTRODUCTION U.S. Tow, Inc. has served as the Official Police Garage for the Newton Division of the Los Angeles Police Department for the past 13 years. In this capacity, we have been responsible for towing and storage services for the LAPD, the Department of Transportation and other City of Los Angeles departments. We have additionally served the California Highway Patrol and the Los Angeles County Sheriff's Department. During those years, we have developed strong and impeccable guidelines for the conduct of our business. We also have developed strong ties to the community which surrounds our facility and of which we consider ourselves a part. U.S. Tow, Inc. also has served as the Franchise Tow Fee Program contractor for the City of Vernon Police Department for the past three years. As such, we view ourselves as having a specific contractual obligation to Vernon and it is twofold: (1) every single day of the year and every single hour of each day we must provide an organized, timely response to the officers of the Vernon Police Department to pick up and tow vehicles and there can be no lapse in this performance; and (2) at the time that a vehicle is released to its owner, we must provide careful, courteous and empathetic service throughout the release. It is important to note that, in the three years that we have served the Vernon Police Department, we have never had a motorist complaint. We must additionally create accurate and complete paperwork as part of the entire process. It is thus significant to note that, in the three years that we have served the Vernon Police Department, the City has consistently received monthly reports/franchise fees in a timely manner. For those vehicles that are not released and must instead flow through the lien process, a completely different set of rules governs. This process also requires stringent controls and strict compliance with the law. We are dedicated to providing service to the City of Vernon while, at the same time, maintaining strong standards of quality and safety for our customers. And, we strongly believe that we can continue to serve the Vernon Police Department as a single provider. U. S. Tow has through the years of its operation developed strong training processes for every one of our staff persons. We consider these to be the core of our association with the LAPD, City of Vernon Police Department, DOT and other City agencies as well as our private clients. We continuously leave no detail of our employee training to chance, making every effort to provide our staff with training that is comprehensive and meaningful. As a result, we are able to keep customer complaints to a minimum. U.S. Tow has always supported involvement in the community in which we work. However, since his acquisition of the business in 2013, Moshe Ben Dayan has made a particular effort to increase the community involvement of the firm. Mr. Ben Dayan understands that investment in the community in which he works represents an investment in U.S. Tow itself. As you evaluate the possibility of again selecting U.S. Tow as the City of Vernon's Franchise Tow contractor, we want you to understand that we at U.S. Tow will continue to work very hard every day to provide the very best service to the City of Vernon, the members of Vernon's Police Force and the customers associated w7th those towing and storage operations . We bring to this submission our extensive past OPG experience, our three years of service as the City of Vernon Police Department's Franchise Tow contractor, Mr. Ben Dayan's expertise and the professional qualifications and dedication of our staff. As you know, we do not require a site; we have one. We do not require a functioning office with all of the latest computer and security equipment; we have it. We do not require tow equipment; we have the best. We understand that the Request For Proposal for the letting of the Franchise Tow Fee Program contract is competitive, but we ask that you consider our past experience with the LAPD and the City of Vernon, our long-term operation and staying power, our relationship with the community and our commitment to strong performance at all times and in all circumstances. GENERAL SCOPE OF WORK/ WORK PLAN FACILITY Physical Location The facility of U.S. Tow, Inc. is located at 2119 East 25'h Street, directly across 25`h Street from the northern boundary of the City of Vernon. This proximity provides us with a distinct advantage relative to the provision of towing and storage services to the City of Vernon Police Department, to customers who must redeem vehicles and for evidence hold purposes. U.S. Tow's facility is a point of great pride for its owner and management. Our facility consists of state-of-the-art construction and contains clean, well organized, modern evidence hold, ancillary storage, dispatch and office space. It is situated on a fully concreted lot which is meticulously maintained. We pride ourselves on the image that is conveyed to the governmental agencies with which we are involved including the City of Vernon, the public that we serve and the surrounding community and this image is carefully monitored. Our location complies with all City of Los Angeles zoning requirements for a towing operation and auto park, with a zoning designation of M3-1, and no Conditional Use Permit is required. We believe that U. S. Tow sets the bar for the way in which a towing operation facility should appear. Our property contains 174,240 square feet (4.0 acres) with aluminum and steel fencing which is eight feet in height and is topped with concertina wire. The yard has concrete flooring and contains capacity for 750 vehicles. Because of this large capacity, we are able to store impounded vehicles for as long as is deemed necessary by the Police agency involved including the City of Vernon Police Department. The yard is very well lighted and there are 50 cameras providing 24-hour video surveillance (archived for a minimum of 180 days). Our storage yard is immediately adjacent to our business office and is attended at all times by our staff members. U.S. Tow has personnel on -site 24 hours per day 365 days per year and we are open to the public between 7:00 a.m, and 7:00 p.m. seven days per week 365 days per year. We are also always available to accommodate special City events. Our property has been leased to U.S. Tow on a long-term basis. Our property lease was renegotiated shortly after Moshe Ben Dayan acquired the company in 2013. The initial lease term of five years ran from September, 2013 to September, 2018. We now have begun the first of two options of five years each, with the lease ultimately terminating in 2028. In addition to our primary facility, U.S. Tow has a secondary lot located at 1615 East Adams Boulevard, a distance of .8 miles. This site contains two acres of land and a small supply office and has a capacity of approximately 200 vehicles of ancillary storage. The site is well secured with lighting, 12-foot high solid aluminum fencing, security cameras and security beams with sirens. Administrative Facility Our facility contains approximately 12,600 total square feet of building area and houses four separate personnel offices, dispatch, accounting, a filing room for auction records and other files, a lien sale area, an IT area, a classroom/break room for company and community use, an Evidence Hold Area and ancillary storage space. Evidence Hold Area This 2,600-square-foot secure area has 24-hour surveillance and limited access with specific rules for entering and exiting. It is equipped with two roll -up doors for unobstructed access and has a capacity of 10 vehicles. There is an additional secondary Evidence Hold Area which is protected by one metal roll -up door and a bullet proof ballistic glass pedestrian door as well as an Evidence Property Room. Our Evidence Hold Area has a specifically designated inspection area which is accessible only to designated U.S. Tow personnel and Police officials. Indoor Workshop Our facility has an indoor workshop for the storage of equipment such as air compressors and tire changing machines. TOW EQUIPMENT The staff and management of U.S. Tow, Inc. have many combined years of experience with various types of tow equipment. This experience has resulted in the knowledge that deploying the correct equipment is critical to the efficiency and success of Official Police Tow operation. All of our tow equipment is equipped as provided in the California Vehicle Code. Another very important element for our operation is that our tow drivers have the best and most appropriate equipment to complete tasks in a damage free and expeditious manner. As the members of the Vernon Police Department well know, the area in which we are located has a diverse impound environment. Vehicles often are stripped of major components such as wheels, engines and body panels and sometimes are burned and/or wrecked. At the other end of the spectrum, we handle custom and high value vehicles. Our equipment, including flatbeds and wheel-lift/standard duty trucks as well as heavy duty equipment including trucks and a trailer, is engineered to accommodate these diverse situations in a timely and efficient manner. 4 Our wheel-lifUstandard duty trucks have been engineered and manufactured to be efficient and fast, thereby providing for the immediate removal of vehicles from major thoroughfares. With these trucks, peak hour tow away zones can be cleared expeditiously to relieve traffic congestion and provide the public with clear paths to their destinations during heavy traffic periods while allowing City personnel to respond to other duties without unnecessary delays. With the utilization of experienced and trained personnel, an impounded vehicle can be removed in just minutes by a wheel-lift/standard duty truck. Wheel -lifts additionally provide damage free towing by lifting vehicles by only their tires. Body panels, front ends, bumpers and under carriages are not touched by the towing unit, thereby ensuring damage free handling of towed vehicles. Wheel- lift/standard duty trucks also allow efficient towing from parking garages and towing from off -road areas. Our flatbed carriers have been selected to provide efficient and damage free vehicle removal and transport. Vehicles with extensive damage, missing wheels or which are heavily burned are suited for removal by flatbed. Flatbeds also are well suited to hybrid, electric, exotic and custom vehicles. In addition, bulk items such as cargo from damaged vehicles, large or heavy vehicle components from "chop shops," motorcycles or stolen vehicles can be safely loaded onto flatbeds to provide damage free transport with minimal loading time. Flatbed carriers also provide the capability to transport two vehicles at the same time, thus allowing us to respond quickly and efficiently when requests for service are made in proximate geographic locations or when requests are made in a narrow time frame. Our choice of Kenworth and Peterbilt chasses is based upon their capability to handle two vehicles at once and/or to transport heavy and/or oddly shaped cargo safely. Our heavy duty trucks, with their adjustable booms and five - ton lifting capacity, and our heavy duty trailer are available for the heaviest requirements including the towing of large and oversized vehicles, and again attest to our well- rounded, complete towing capability. Our drivers are highly trained to operate all of our tow units. In particular, flatbed units require highly skilled drivers with a thorough knowledge of the machinery involved. They also are trained to unlock Iocked vehicles, a frequent request from our Police clients. Our drivers are trained to operate units with the priority of safety to themselves and to the public they serve. Continuing education enhances their knowledge base and ability to perform the tasks involved. If selected to again be the Franchise Tow Fee Program contractor for the City of Vernon Police Department, we will continue our process of filing with the Department the name, address, date of birth, driver's license number and all other information required relative to each of our drivers. We will also notify the Department of any driver no longer employed by us as well as the identity of any driver whose license is suspended. Our training procedures are in writing and are available for perusal by the Vernon Police Department at any time. U.S. Tow, Inc. also is a member in good standing of the California Department of Motor Vehicles Pull Program. Within our facility, the use of forklifts with special attachments provide efficient and damage free vehicle movement and/or vehicle release. Our forklifts are powered by liquid propane, providing low emission levels and reduced carbon monoxide release. U.S. Tow constantly monitors trends in tow equipment, vehicle impounds and safety practices. It is through this due diligence that we are able to provide our clients and the motoring public with the highest level of safety and service. U.S. Tow has a total of eight tow units, including two wheel -lifts and six flatbeds. We additionally have three heavy duty trucks and one heavy duty trailer. In addition, U.S. Tow has access to the 23 trucks of Tip Top Tow Service in case of a large emergency operation or a disaster operation. A listing of the tow units of U. S. Tow is provided on the following page. TWO-WAY RADIO COMMUNICATION EQUIPMENT U.S. Tow, Inc. uses Kenwood hardware for its two-way radio system. The system employs mountain -top repeaters to maximize coverage area and provide reliable, quality communication, thus enabling instant access to our fleet and personnel. Our two-way radio communication equipment also sends and receives Police tow requests between dispatch and our tow units on a first priority basis. Through its use, all of our clients benefit from faster service, increased efficiency, quick schedule or task changing and higher productivity. The City of Vernon Police Department has for the past three years been the recipient of the quality communication deriving from this system. DISPATCH COMPONENTS U.S. Tow, Inc. utilizes an efficient dispatch system which features three components — proper tools, adequate staffing and management oversight. Our use of GPS vehicle tracking and computerized dispatch is integrated to maintain the highest level of service. Our system includes time stamping of all requests received as well as notation of the exact time the request is assigned to a tow unit, the time the tow unit arrives at the scene of the request and the time that the tow unit returns to the U. S. Tow facility. Our system also assigns a number to each tow request for tracking purposes. Our dispatch terminals are dedicated to the function of dispatch only. Our radio communications equipment sends and receives Police tow requests between dispatch and the tow units on a "first priority" basis. The dispatchers of U.S. Tow are trained in the effective use of radio equipment in order to maximize efficiency. The dispatch office is equipped with a telephone system capable of receiving tow requests on a "first priority" basis and dedicated telephone lines ensure "first priority" to "Police" calls. Dispatch is a dedicated function on a 24-hour per day, seven-day per week, 365-day per year basis. Dispatchers are available to release vehicles seven days per week between 7 a.m. and 7 p.m, and for a minimum period of four hours after any special event. Every member of our office staff is cross -trained in order to provide an excellent service standard in the execution of dispatch duties. 0 TOW UNITS U.S. Tow, Inc. owns 13 tow units and one trailer, as follows: Unit 19 T i Flatbed Year 2005 Make Kenworth T-300 Weight lbs I VIN 26,000 2NKN4HZ6XO5MO98216 I I 20 Flatbed 2015 Peterbilt 26,000 2NPNHM6XOFM298418 22 Wheel -lift 2005 Ford F-550 ' 19,000 i 1FDAF56P55EB89089 27 Flatbed 2006 Kenworth T-300 26,000 2NKMHZ6X56M154250 28 Flatbed 2016 Peterbilt T337 26,000 2NP2HM6XXGM347211 30 Wheel -lift 2017 Dodge 5500 19,700 3C7WRMBL1HG572607 33 Flatbed 2017 Kenworth T-270 26,000 2NK1R-IM6X9HM133554 34 Flatbed ' 2017 Kenworth T-270 26,000 2N J4HM6X4HM133560 35 Flatbed 2018 Kenworth T-270 26,000 2NKHHM6XXJM181201 25 Wrecker 2014 Peterbilt 54,000 INPWL49XOED187127 16 Wrecker 2015 Kenworth 35,000 12NKHHMZXXFM439593 80 Tractor 2007 Freightliner 80,000 f 1 FUJA6CK47LX 17262 81 Trailer 2015 Landoll 97,000 ILH440VHIF1021834 82 Tractor 2015 Peterbilt 377 52,000 1XPCDP9X4FD290009 INFORMATION TECHNOLOGY KNOWLEDGE The computer system utilized by U.S. Tow is the Towing Operations Systems (TOPS) system. It is used for both dispatch and accounting. The program utilizes functions which provide dispatch, vehicle inventory search, property removal with receipt, inspection of a vehicle with receipt, evidentiary hold area search and auditing, lien processing including the removal of liened vehicles, VIN verification of make and model, cash on delivery options and private property impound tracking. Not all employees are granted access to sensitive information contained in the tow Program. Only management and ownership can access all records pertaining to any particular vehicle. Any changes made in the computer record concerning a vehicle are tracked through an exception report. The exception report is checked every morning by management to ensure that no unauthorized changes have been made to any computer record. The program also has a fleet function by which U.S. Tow can maintain fleet data as well as an accounting function for maintenance of accounts payable and accounts receivable. TOPS also has reporting functions that allow us to keep daily, weekly and monthly internal reports. Our accounting department additionally uses QuickBooks to maintain a checks and balances system for all accounts. QuickBooks provides U.S. Tow with a controlled method by which to track accounts, print statements and maintain a ledger for monies that flow in and out of the company. QuickBooks Pro is used to pay bills, record payroll, reconcile cash and keep track of vendor and employee ledgers and advances. A daily back-up of our computer system is completed and stored at a remote location. An outside firm monitors this back-up on a daily basis. We additionally have software support readily available for our tow program. All files are backed up several times per day and we have a working generator in case of a significant power failure. Our computer system, software and tow program are set up to generate franchise fees (which are placed in a separate account) and impound information and the safeguards are in place to monitor these functions at all times. Our dispatch, tow Iot management, impound and franchise fee software has a long history of use within U.S. Tow. Our hardware has been carefully selected to provide both reliability and ease of use. Computer work stations, servers, telecommunications and video surveillance have been chosen and implemented to provide the highest levels of security, accuracy, accountability and service. VEHICLE IMPOUND INFORMATION CENTER VHC Reports The VIIC system provides our law enforcement customers including the City of Vernon Police Department with real-time reconciliation and auditing of remitted fees through a computer system that cannot be altered. This system provides very readable PDF reports or reports that can be downloaded into a CSV file for the Police Department's use in daily oversight. VIIC system features include: • Detailed monthly activity reports which show all impound and storage activity; • Vehicle reports which show vehicle date in and date out; • Vehicles by "hold" status; • Gross revenue remittance reports; and • Vehicle release fee remittance reports. Law Enforcement Access And Information The VIIC system allows authorized personnel to quickly and accurately track vehicles, thus ensuring the proper collection of fees for towed and impounded vehicles. Through secured Internet access (http://www.opglaviic.com) or by stand-alone computers located within authorized law enforcement facilities such as the Vernon Police Department, users can obtain immediate access to information pertaining to impounded vehicles 24 hours per day 7 days per week. This information consists of several components including vehicle inventories by vehicle make, license plate VIN and original location of the impound. Public Access And Information Although the information available to law enforcement agencies such as the Vernon Police Department is more comprehensive than that available to the general public, the VIIC system also provides the public with valuable real-time information which facilitates the location of impounded vehicles. With the VIIC system, the public can determine the location of vehicles through Internet access. Required search information includes the license plate number and VIN. Once the vehicle is located, the VIIC system provides the U.S. Tow name and address, directions to our facility, release hours, fees incurred and a simple matrix by which fees can be calculated. MONTHLY REPORTS If again selected to be the Franchise Tow Fee Program contractor for the City of Vernon Police Department, U.S. Tow will continue to submit a monthly report to the Captain of Police which, as per the City of Vernon requirement, includes the following: *Total Police impounds. *Number of times dispatched by the Vernon Police Department. *Number of calls resulting in impounds. *Number of vehicles sold on lien sale under authority of Section 3072 Civil Code and reporting said lien sales as per authority of Section 22705 CVC. *Names and addresses of buyers and description of vehicles when sold. *Number of calls answered in which time beyond one hour was required. EVIDENCE HOLD VEHICLES U.S. Tow, Inc. has 13 years of experience as an OPG for the City of Los Angeles Police Department and thus of dealing with vehicles and vehicle -related components that are on "hold" for evidence or require processing by a crime lab unit. Moshe Ben Dayan, the owner of U.S. Tow, has 28 years of experience in the handling of evidentiary holds and maintaining the integrity of the "chain of custody" in conjunction with his other public agency towing operations through his firm Classic Tow, Inc. dba Tip Top Tow Service. Over the past three years U.S. Tow also has also provided evidence hold services to the Vernon Police Department. All of our personnel are acutely aware of the importance of handling vehicles with evidence holds. A set of specific steps are consistently employed in order to ensure that vehicles are not mishandled and that the "chain of custody" is maintained at all times. All of our personnel receive training on how to deal with vehicles from the moment a call is generated until the final disposition of the vehicle occurs. • Dispatchers advise drivers of a request for service for a vehicle that requires special handling due to evidence or criminal lab processing. • Drivers request from the impounding officer or the officer in charge at the scene of the impound whether any special handling is required so as not to touch surfaces of a vehicle, not to enter a vehicle, not to disturb possible material under or on a vehicle or any other special requests dealing with the handling of the vehicle. • Once evidence hold vehicles arrive at the storage yard, drivers sign the Evidence Log Book noting the time, date, year, make, model, color, VIN, license and names of any persons who will enter the Evidence Hold Area in conjunction with the vehicle. 1.0 • Following placement of a vehicle or components of a vehicle within the Evidence Hold Area and the securing of the Hold Area, drivers return to the office to notate the date and time of completion of the vehicle and/or vehicle components placement. • Drivers receive instruction on the handling of vehicles utilizing our equipment so that the vehicle can be transported without disturbing fingerprints and/or other physical evidence contained on or inside it. As vehicles arrive at our location, they are entered into our vehicle inventory database and the Evidence Log Book. 1n order to verify the time of entry, U. S. Tow utilizes a time stamp along with the manual entry in the Evidence Log Book. Within the vehicle database, a special "hold" is placed and this creates a flag which must be specifically acknowledged prior to any change including an authorized release by the agency placing the original hold on the vehicle such as the Vernon Police Department. Often vehicles get released from "hold" status prior to the release of the vehicle to the owner or interested party. Vehicles that are released from a "hold" status prior to removal by the owner or interested party have specific notes entered in the vehicle database as well as the agency, name, ID, date and time that the vehicle's "hold" status was removed. Associated paperwork is additionally attached to the vehicle record (CHP180). Once the vehicle has had the "hold" released, it is removed from the Evidence Hold Area and placed in the general vehicle inventory. U.S. Tow has a segregated, completely enclosed evidence warehouse with a storage capacity of a minimum of 10 evidentiary/criminalistic hold vehicles. U.S. Tow also maintains an area that can be converted to a temporary secure hold area in the event of a Iarge scale crime involving many vehicles or bulk items. A minimum of six additional vehicles can be secured in this area. Evidence Hold Area entry is limited to OPG employees and concerned law enforcement officials such as members of the Vernon Police Department and video surveillance is used to enhance the security of vehicles within the Evidence Hold Area. An electronic record of the person, time, date and duration of access is maintained. This is accomplished through entry system technology which features a magnetic lock system with unique entry key fob assigned only to management. The supplier of our entry control and electronic entry and exit recordkeeping is Axis. The Axis system features electronic recording and physical hardware that is secure and that provides access Iimited to management in order to ensure that the "chain of custody" is not compromised. All entries are also noted in the Evidence Log Book. The elements of recording and recordkeeping of entry to our Evidence Hold Area allow management and law enforcement to validate all access. The area has large, clear posting prohibiting entry. The Evidence Hold Area features ample lighting to aid detectives and/or evidence technicians in the processing of vehicles. U.S. Tow also has a vehicle lift available on -site to aid investigators. Through all of these mechanisms, we ensure that only vehicles or vehicle parts that are held for evidence or criminalistic hold are stored within the Evidence Hold Area. al With respect to the City of Vernon Police Department, if U.S. Tow is again selected to be the Franchise Tow Fee Program contractor, notification will be provided to the Police Captain or his/her designee of vehicles with a "hold" that are stored in excess of 72 hours. Asper the City of Vernon Police Department requirement, "holds" will expire 10 calendar days after the date of a tow unless otherwise extended by a Police Department employee. LIEN SALE EXPERIENCE U.S. Tow, Inc. files for vehicle liens following California Civil Code Sections 3068.1, 3071, 3072 and 3074. Ultimately, not all liens started end in disposal through public auction. Many vehicles are redeemed by registered owners, legal owners or authorized interested parties, thus accomplishing the intended purpose of notification followed by redemption. In the event that a vehicle is not redeemed, a sale is conducted to satisfy the outstanding lien and avoid the stockpiling of vehicles. Vehicle disposal through public auction has been performed for more than 13 years by U.S. Tow and more than 23 years by Moshe Ben Dayan via other towing operations that he owns and operates. U.S. Tow sells vehicles in a fair and impartial manner to the highest bidder. Our sale list is posted in public view at our facility a minimum of 10 days prior to the sale date, and vehicles are available for inspection one -and one-half hours prior to the sale time on the sale date. We continually strive to improve levels of customer service to members of the public who attend our weekly auto auctions. U.S. Tow is bound by California Civil Codes relating to the disposal of impounded vehicles. U. S. Tow also stringently follows the fee structure outlined in the California Civil Codes that pertain to the processing of vehicle liens. If again selected to be the Franchise Tow Fee Program contractor to the Vernon Police Department, we will continue to always be available to review any other elements of our lien sale operation requested by the Police Department. CUSTOMER SERVICE U.S. Tow takes extreme pride in its exceptional customer service. The impound process is by its very nature a stress producing experience and we attempt in every possible way to expedite the process and make it as comfortable as possible. Registered owners redeeming vehicles can expect to deal with employees who are well trained, courteous and professional and with a facility which is clean, modern and secure and which provides them with comfort in the event that they need to wait for appropriate paperwork, acceptable form of payment or a towing service for a disabled vehicle in order to complete the release process. U.S. Tow completely understands the responsibility for the proper release of vehicles to parties who have a legal right to take possession and we take all necessary precautions through established procedures throughout the release process. Our personnel are trained to verify that a proper release has been issued by us or by the relevant governmental impounding agency including the Vernon Police Department prior to the release of vehicles that have either a statutory or evidence hold. A dedicated 12 computer system is available to check the "scofflaw" status of vehicles prior to their release. Personal property is released to identified, authorized persons and is inventoried and notated on the vehicle record. Our staff also is trained to answer general questions regarding the disposition of vehicles and lien sale auction information. Computer equipment with access to our vehicle inventory software is available to handle high - volume release situations. COMMUNITY SUPPORT AND INVOLVEMENT U.S. Tow has since its inception and continues to understand the importance of support of and involvement in the local community. Even though we are physically located in an industrialized portion of the City of Los Angeles as the Vernon Police Department well understands, we are very aware that there is a significant community of residents surrounding our site. As such, it has been our continuing philosophy of operation to identify and support portions of the community and community projects in need of financial sponsorship and the donation of other assets. We additionally have a well appointed classroom/break room at our facility which we offer for community use. 13 U.S. TOW, INC. TOW RATES/FEES i Light Duty TowingStorage $160.00 $50.00 under 10,000 GVWR Motorcycle $160.00 $25.00 Medium Duty $271.00 $60.00 Heavy Duty $350.00 $75.00 Low Boy $350.00 $75.00 Super Heavy Duty/ $550.00 $75.00 Wrecker + Forklift $ 125.00 (per hour Service Call $80.00 Bulk Item $15.00 �:_ (per pallet/per da • Towing/recovery work/transport is assessed portal to portal. There is no fee variation for night tows. • Storage/impoundment rates are the same for day and night. Our release hours are 7:00 a.m. — 7:00 p.m. After hours fees apply and are half the tow. • Towing rates are subject to 30-minute increase increments after the first hour. • Storage for less than 24 hours is charged as one day. After 24 hours, storage is charged per calendar day. • Service calls are based on a one-half hourly tow rate. Vehicles not redeemed within 72 hours are subject to lien sale/notice fees of $70.00 - $100,00, • All City vehicles under I ton and towed within 10 miles are free. • All City vehicles under 1 ton tire changes are free within 10 miles. 14 ABILITY OF U.S. TOW, INC. TO PERFORM THE NECESSARY SERVICES U.S. Tow, Inc. was originally founded as a California "S" corporation in 1983. The company was purchased by Moshe Ben Dayan in 2013. Mr. Ben Dayan is the sole Owner/President/CEO and owns 100% of the corporation. U.S. Tow, Inc. has a primary Iocation at 2119 East 25a' Street, Los Angeles, and a secondary storage location at 1615 East Adams Boulevard, Los Angeles. These facilities have been discussed previously in this Proposal under General Scope of Work/Work Plan. The firm has a total of 25 employees. STATE AND CITY LICENSES U.S. Tow, Inc. is licensed to operate in the State of California, the City of Los Angeles and the City of Vernon. Our licenses include City of Los Angeles Parking Occupancy Tax M; City of Los Angeles Professions/Occupations; City of Los Angeles Police Commission Permit for Towing Operation; City of Los Angeles Police Commission Permit for Master Auto Park; City of Los Angeles Police Commission Permit for Auto Park; State of California Department of Motor Vehicles Motor Carrier Permit; and City of Vernon Business License. EXPERIENCE OPERATING A COMPLEX BUSINESS As stated above, Moshe Ben Dayan purchased U.S. Tow, Inc. in 2013. Mr. Ben Dayan came to the purchase with a strong understanding of the highly regulated and complex operations of an Official Police Garage/Police Tow. Since his purchase of U.S. Tow, Mr. Ben Dayan has been working to improve the already strong operations and level of service of U.S. Tow's overall operations. Based upon commendations that he has received from members of the Los Angeles Police Department and other U.S. Tow clients, he appears to be succeeding. Since 2015 U.S. Tow has been the Franchise Tow Fee Program provider for the City of Vernon Police Department. In that regard, we have performed as the sole provider of towing and storage services to the Vernon Police Department. During the course of the contract, we have met the requirements of the Vernon Police Department including more than sufficient and qualified office, dispatch and driver personnel; well equipped and diverse tow trucks with both light duty and heavy duty capability, an excellent primary facility which is located very proximate to the City of Vernon boundary; and careful, diligent management providing constant oversight. In addition to U.S. Tow, Mr. Ben Dayan owns and operates Classic Tow, Inc, dba Tip Top Tow Service. He founded and has owned and operated this company since 1989 and it has been his full-time and only business involvement until his purchase of U.S. Tow. 15 Tip Top Tow Service is the Official Police Tow for both the Cities of Santa Monica and Beverly Hills. The firm has worked in this capacity for Santa Monica since 1993 and for Beverly Hills since 2012. Service to these entities is highly regulated and involves impounding of vehicles including owner requests, statutory holds and evidence holds as well as the roadside servicing of City -owned vehicles and traffic accident assistance. Mr. Ben Dayan has additionally participated in the California Highway Patrol's (CUP) rotation Tow Service Agreement (TSA) since 1992, providing general towing and impound and storage services. Additionally, Mr. Ben Dayan is a Freeway Service Patrol provider for the Los Angeles County Metropolitan Transportation Authority (LACMTA), providing freeway roadside services to stranded motorists since 2005. The contracts let by this Agency are highly regulated with scheduled and random inspections of tow truck units and facilities conducted by LACMTA itself as well as by the State of California Department of Transportation (Caltrans) and a special unit of the CHP known as "David Units." The level of regulation imposed by the CUP's David Units is unequaled in the towing industry, with strict enforcement of rules and regulations as well as of drivers and trucks in the field through monitoring by GPS, Caltrans and the CEP itself. The contracts of LACMTA mandate that detail be paid and rules adhered to relative to a multitude of policies and procedures and that standards be strictly enforced. Moshe Ben Dayan and Tip Top Tow Service have never had a contract fail to renew due to substandard service or violation of any rules and/or regulations. The successful operation of a tow business is complex, with many areas of responsibility. We are responsible 24 hours per day 365 days per year for dealing with the vehicles and personal possessions of many people, some of whom are angry about having been towed in the first place, distraught over damage to their vehicle or who are dealing with the consequences of having a family member or friend injured in an automobile accident. We are responsible 24 hours per day 365 days per year for dealing with law enforcement and the complexities of evidentiary holds, constantly being attentive to the issues involved in the potential contamination of important evidence. We are responsible for conducting lien sales with careful attention to the legalities of this procedure such that we do not err either on our own part or for the interests of the customer. We are responsible to our employees for the creation of a work environment that is comfortable, clean and conducive to minimizing the stress of a business which requires proficiency in taking calls, dispatching drivers accurately and quickly and performing tow services in an efficient, orderly and courteous manner. We are responsible to the many vendors with whom we do business including insurance providers and equipment and parts providers and we must be vigilant at all times regarding the licenses and permits that we hold. And, we are responsible to the community to maintain a top-notch facility which is environmentally conscious with minimal noise and pollution and to participate in community events and sponsorships. 0R CAPABILITY AND EXPERIENCE OF KEY PERSONNEL MANAGEMENT Moshe Ben Dayan, Owner/President/CEO. Moshe Ben Dayan, Owner/President/CEO of U.S. Tow, Inc., as over the past three years of our service to the City of Vernon Police Department, will continue to manage all aspects of our contract for the Franchise Tow Fee Program. A detailed description of Mr. Ben Dayan's responsibilities is presented in Exhibit B attached to this Proposal. The resume of Mr. Ben Dayan also is included in Exhibit B. Mohammed Jaweed, CFO. Mohammed Jaweed, as over the past three years of our service to the City of Vernon Police Department, will continue to be responsible for the management of all financial and accounting functions as well as all bookkeeping functions for our contract for the Franchise Tow Fee Program. A detailed description of Mr. Jaweed's responsibilities is presented in Exhibit B attached to this Proposal. The resume of W. Jaweed also is included in Exhibit B. Richard L. Kettering IT, General Manager. Richard Kettering, as over the past three years of our service to the City of Vernon Police Department, will continue to oversee the daily operations associated with our contract for the Franchise Tow Fee Program. A detailed description of Mr. Kettering's responsibilities is presented in Exhibit B attached to this Proposal. The resume of Mr. Kettering also is included in Exhibit B. Stephanie McColgan, Assistant Manager. Stephanie McColgan, as over the past three years of our service to the City of Vernon Police Department, will continue to assist the General Manager with overflow business matters associated with the company, banking and other financial matters and customer relations matters. A detailed description of Ms. McColgan's responsibilities is presented in Exhibit B attached to this Proposal. The resume of Ms. McColgan also is included in Exhibit B. ADMINISTRATIVE STAFF The administrative staff of U.S. Tow, Inc. is carefully trained and is knowledgable in the following areas related to company operations: computer software; dispatch; impound reporting; vehicle release procedures; vehicle property removal procedures; statutory hold vehicle release procedures; evidence/criminalistic hold vehicle procedures; lien sale procedures and fees; two-way radio use; telephone system and customer service techniques and procedures; criminal activity reporting; and the prioritization of calls for service. The administrative staff of U.S. Tow also receive continuous training in such aspects of company operations as dealing with hostile people and developing solutions to hostile situations; making effective decisions and implementing those decisions; understanding and adapting to the diverse ethnicities and cultures of customers; and establishing empathy for customers. 17 TOW DRIVER STAFF The tow driver staff of U.S. Tow, Inc. is carefully trained and is knowledgable in the following areas related to its work: highway safety; towing techniques; rollover and recovery techniques; laws pertaining to operation of tow trucks; customer service; automotive lockouts; and tow truck maintenance. Our tow truck drivers also receive continuous training in the following areas: computer software; impound report reading and understanding; vehicle codes; care and custody of vehicles; forklift operation; vehicle release procedures; vehicle property removal procedures; vehicle inspection procedures; verification of proper release of evidence hold vehicles; verification of proper release of statutory hold vehicles; proper handling of evidence/criminalistic hold vehicles; proper placement and spacing of vehicles; criminal activity reporting; vehicle identification (license plate and VIN); prevention of heat stress, dehydration, exhaustion, stroke and related problems; battery safety; prevention of blood borne pathogens; fire extinguisher use; back injury prevention; and eye protection. All drivers must hold and maintain Level I Certification from the California Tow Truck Association. A Staff Flow Chart for U.S. Tow, Inc. is provided on the following page. U.S. Tow, Inc. Staff Flow Chart Moshe Ben Dayan President/CEO Mohammed Jaweed CFO Richard Kettering General Manager Stephanie McColgan Luis Cruz Francisco Verdugo Office Manager Driver Manager Yard Manager/Driver Francisco Cardenas Head Dispatcher Alyssa Round Dispatcher Ernie Gonzalez Dispatcher Vicky Reyes Dispatcher Lavette Hatchett Dispatcher Fifterto Hernandez Driver Armando Vaienzuela Driver Jonathan Zetina Driver Raul Marroquin Driver Carlos Reyes Driver Brian Chacon Driver Julian Hernandez Driver Richard Quintero Driver David Riley Driver Terrell Taylor Driver � 9 Justin White Yardman Walter Ruckwardt Yardman/Driver Rosendo Favela Mechanic/Driver Armando Cisneros Mechanic/Driver AFFIDAVIT OF NON -COLLUSION BY CONTRACTOR STATE OF CALIFORNIA f ss COUNTY OF LOS ANGELES } and says that he/she is Ilrom tarry of hidden Moshe Ben Dayan Owner/president/CEO being first duly sworn deposes Omen 'Solt Oss nK . 'Partner". 'President. 'Secrrtary-. or other proper sit k r U.S. Tow, Inc who submits herewith to the City of Vernon a bid/proposal: That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation; That such bid/proposal is genuine and not collusive or sham: That said bidder has not, directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract: and further That prior to the public opening and reading of bids/proposals, said bidder: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham hid/proposal. or that anyone should refrain from bidding or withdraw his/her bid/proposal: C. Did not, in any manner, dirwly or indirectly seek by agreement, communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else. or to raise or fix any overhead, profit or cost element of his/her hid/proposal price, or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation. partnership, company, association, organization. hid depository, or to any member or agent thereof, or to any individual or groiPof individuals, except the City of Vemon, or to any person or persons who have a partnersha or other I inancial interest with said bidder in his/her business. 1 certify under pe of perjury*at the lbove information is correct By: _ Title: Owner/President/CEO Date: Nove 9, 2 20 EXHIBIT A REFERENCES OF U.S. TOW, INC. CONTACT INFORMATION FOR REFERENCES U.S. TOW, INC. Contact Person 1. John Takahashi Senior Highway Operations Program Manager Congestion Reduction Metro Freeway Service Patrol 2 Charlos H. Joseph, Jr. Supervisor Vehicle Maintenance 3. Robert N. Arcos Assistant Chief 4. Jorge R. Rodriguez Commander Assistant to the Director Name and Address Los Angeles County Metropolitan Transportation Authority One Gateway Plaza Los Angeles, CA 90212 United States Postal Service 2306 Corinth Ave Los Angeles, CA 90064 Los Angeles Police Department Office of Operations 100 W. First St. I Room 1031 I Los Angeles, CA 90012 Los Angeles Police Department Office of Operations 100 W. First St. Room 1032 Los Angeles, CA 90012 Telephone/ Fax/ E-Mail T: (213) 418-3271 F: (213) 922-2955 E-Mail: takahashij@ metro.net T: (323) 272-0030 F: (310) 575-3167 E-Mail: charlesh,joseph@ usps.gcv T: (213) 486-0100 F: (213) 486-C115 E-Mai I: Robert.Arcos@ lapd,online T: (213) 486--0110 (213) 305-4678 F: (213) 486-0115 E-Mail: 25668@lapd.online Services Provided Los Angeles County Metropolitan Transportation Authority Freeway Service Patrol: Beat #12 and Heat #70 General towing and roadside assistance services Official Police Garage for LAPD Newton Division Official Police Garage for LAPD Newton Division CONTACT INFORMATION FOR REFERENCES U.S. TOW,INC. (Continued) 5. Gregg Mader Sergeant 6. Hratch Basjmakian Investigator Beverly Hills Police Department 464 N. Rexford Dr, Beverly Hills, CA 90210. Los Angeles County Sheriffs Department 11515 S. Colima Rd, Bldg. C, Room 111 Whittier. CA 90604 T: (310) 285-2140 F: (310) 271-9349 E-Mail: gmader@ bever►yhilis.org T: (562) 946-7846 F: None E-Mail: hbashma@lasd.org Official Police Tow Towing, impound, storage, cargo recovery EXHIBIT B AREAS OF RESPONSIBILITY STATEMENT AND RESUMES OF KEY EMPLOYEES OF U.S. TOW, INC. AREAS OF RESPONSIBILITY STATEMENT FOR EACH KEY EMPLOYEE The areas of responsibility for each U.S. Tow, Inc. key employee have been carefully allocated based upon that employee's education, experience, skill and ability. MANAGEMENT Moshe Ben Dayan, President/CEO, Mr. Ben Dayan purchased U.S. Tow, Inc. in September, 2013 after a long and experienced history as Founder and President/CEO of Classic Tow, Inc. dba Tip Top Tow Service in Santa Monica. As President/CEO of U.S. Tow, he is responsible for fulfilling the firm's contracts with all governmental and private clients. Specific responsibilities include overall management of all operations including financial operations; company policy including contract procurement and compliance; project staffing; customer relations; community relations; and equipment/facility procurement and operations. Please see the resume of Mr. Ben Dayan. INTERNAL STAFF Mohammed Jaweed, CFO. Mr. Jaweed is responsible for the management of all financial and accounting functions and all bookkeeping functions for U.S. Tow, Mr. Jaweed is responsible for the daily, monthly and annual reporting of the firm including VIIC reporting, reports and timely payments for vehicle release fees, gross receipts fees, collections, forfeitures, monthly reports and business license fees. Mr. Jaweed is additionally responsible for working with auditors and insurance companies to maintain the company's liability and Worker's Compensation insurance and manages all internal and external payroll reporting. Please see the resume of Mr. Jaweed. Richard L. Kettering H, General Manager. Mr. Kettering's responsibilities are significant and multidimensional. Mr. Kettering oversees all daily operations of U.S. Tow. He is responsible for contract compliance; the generation of internal daily reports; VIIC system internal transparency and compliance; complaint/problem resolution for customers and Police agencies; employee relations including hiring and dismissal; tow driver safety compliance; lien sales auctions and paperwork; and security camera content review. Please see the resume of Mr. Kettering. Stephanie McColgan, Assistant Manager. Ms. McColgan prepares lien sale auction paperwork and vehicle release paperwork. She is responsible for the banking activities of the firm as well as human resources/employee applications and other associated paperwork. Ms. McColgan also assists the General Manager with other overflow business matters associated with the company. RESUME OF QUALIFICATIONS MOSHE BEN DAYAN President/CEO EXPERIENCE Owner and President/CEO of U.S. Tow, Inc. 1989 To Present Mr. Ben Dayan purchased U.S. Tow in September, 2013. As President/CEO, he is responsible for fulfilling the firm's contract with the City of Los Angeles as the OPG provider for the Newton Division. Additional specific responsibilities include overall management of all operations including financial operations; company policy including contract procurement and compliance; project staffing; customer relations; community relations; and equipment/facility procurement and operations. Founder, Owner and President/CEO of Classic Tow, Inc. dba Tip Top Tow Service. Operation of this business was started by Mr. Ben Dayan in 1989. Tip Top Tow Service has contracts with the City of Santa Monica, the City of Beverly Hills, the Los Angeles County Metropolitan Transportation Authority, the Los Angeles County Sheriff s Department and the California Highway Patrol and serves numerous other governmental and private clients. Mr. Ben Dayan's responsibilities at Tip Top Tow Service are the same as at U.S. Tow, with the exception that U.S. Tow is an OPG provider while Tip Top Tow is an Official Police Tow provider. EDUCATION High School Diploma received in Israel. Business College attended in Israel. Served as First Sergeant/Parachute Division/Israel Defense Forces for three years. COMMUNITY Mr. Ben Dayan is involved in numerous community activities through both U.S. Tow and Tip Top Tow Service. PERSONAL Date of Birth: 1964 Place of Birth: Israel Marital Status/Children: Married; three children References are noted as an attachment to this Proposal and are also available upon request. RESUME OF QUALIFICATIONS MOHAMMAD JAWEED CFO EXPERIENCE CFO of U.S. Tow, Inc. Mr. Jaweed is responsible for September, 2013 To the management of all financial and accounting functions Present and all bookkeeping functions for U.S. Tow. Mr. Jaweed is responsible for the daily, monthly and annual reporting of the firm including VIIC reporting as well as management of other reports; timely payments for vehicle release fees; gross receipts fees; collections; forfeitures; and business license fees. Mr. Jaweed is additionally responsible for working with auditors and insurance companies to maintain the firm's liability and Worker's Compensation insurance and manages all internal and external payroll reporting. July, 1999 To Controller of Tamkin Development Corp., Brentwood, CA. September, 2013 Mr. Jaweed was responsible for all accounting functions; preparation of financial packages for purposes of construction estimates; property management projections; annual budgets; CAM reconciliations; and lease administration functions including property management, lease negotiation and capitalized expense contract negotiation. Mr. Jaweed additionally was responsible for payroll preparation; Federal and State tax reporting; employee benefits programs; and employee health care benefits. April, 1994 To Controller/Accounting Manager of CIM Group, LLC/ April, 1999 Dekel Construction, Inc., Santa Monica, CA. Mr. Jaweed was responsible for all accounting functions including monthly and year-end financial statements, construction draws, budget reports and Federal and State tax reporting. Mr. Jaweed was additionally responsible for tenant rent collections; the billing of CAM charges; property tax analysis; and maintenance of a sophisticated computerized accounting system. EDUCATION Bachelor's Degree with Accounting Major, India, 1986. Computer skills in Windows, Linux, Microsoft Office, Accpac, Yardi, QuickBooks Pro, Dataline and CTI Online. PERSONAL Date of Birth: 1967 Place of Birth: Hyderabad, Andhra Pradesh, India Marital Status: Married, three children RESUME OF QUALIFICATIONS RICHARD L. KETTERING H General Manager EXPERIENCE General Manager of U.S. Tow, Inc. Mr, Kettering's 2009 To Present responsibilities are significant and multidimensional, Mr. Kettering oversees all daily operations of U.S. Tow. He is responsible for contract compliance; the generation of daily and monthly reports; VIIC system internal transparency and compliance; client interface; complaint/problem resolution for customers and Police agencies; employee relations including hiring and dismissal; tow driver safety compliance; lien auctions and paperwork; and security camera content review. 2004 To 2009 Longshoreman of Pacific Maritime Association, Ports of Los Angeles and Long Beach. Mr. Kettering was responsible for compiling container manifests; driving tractors for the loading of containers onto ships; locating missing cargo; and signaling traffic for the purpose of loading cargo. 2002 To 2004 Manager, Big 5 Sporting Goods, Whittier, CA. Mr. Kettering was responsible for all duties in connection with the operation of this Big 5 Sporting Goods location, EDUCATION Golden West College, Huntington Beach, CA. Associate of Arts Degree in Social Sciences, 2009. Graduated with Honors. Member Alpha Gamma Sigma Honor Society. OTHER Transportation Workers Identification Credential Certified Tow Unit Driver, California Tow Truck Association, Level 1 PERSONAL Date of Birth: 1979 Place of Birth: Bellflower, CA Marital Status: Married, two children RESUME OF QUALIFICATIONS STEPHANIE McCOLGAN Assistant Manager EXPERIENCE Assistant Manager of U.S. Tow, Inc. September, 2013 To Ms. McColgan's responsibilities include preparation Present of lien sale auction paperwork; vehicle release paperwork; banking activities; human resources/employee applications; and other associated paperwork. Ms. McColgan also assists the General Manager with other overflow business matters associated with the company. 1989 To Office Manager of Classic Tow, Inc. dba September, 2013 Tip Top Tow Service. Ms. McColgan worked with Moshe Ben Dayan to start Tip Top Tow Service in 1989. She continued to work for that entity until September, 2013 at which time she moved to U.S. Tow. Her responsibilities at Tip Top Tow Service included the management of banking/financial aspects of day-to-day business; payroll computation; daily receipts computation; serving as a back-up dispatcher; resolution of difficult customer issues; public relations work with municipal/public agencies as well as with the local community; and resolution of internal staff and vendor issues. Ms. McColgan additionally owned and operated two retail toy stores between 2002 and 2006. EDUCATION Peterborough County School For Girls, Peterborough, England (graduated 1981). PERSONAL Date of Birth: 1963 Place of Birth: Norwich, England Marital Status/Children: Married; three children EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Franchisee certifies and represents that, during the performance of this Agreement, the Franchisee and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Franchisee further certifies that it will not maintain any segregated facilities. B. Franchisee agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Franchisee, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Franchisee agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Franchisee agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the agreement of violating employers. INSURANCE INFORMATION �.....,, USTOW-1 ,4c'ORv CERTIFICATE OF LIABILITY INSURANCE LDATE IMM/DDIYYYY) 03I20/2019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsements . 707-745-3321 CONTACT Robert A. Storelee PRODUCER NAME:. ----- R.A. Storelee Insurance Agency PHONE 707-745-3321 FAX 707-745-3709 Rob Storelee (A1Qq No, Ext) Ik )Alc, No) 321 First Street Suite 201 ADt)BS.St. —1 Benicia, CA94510 IN$URERJMAPFORDINGCOVERAGE _ '._ NAK:a Robert A. Storelee INSURER A' American Guarantee & Liability _--�—... ---------- '-- INSURED U.S. TOW Inc. ,.INSURER B . Insurance Company Of the West 27847 2115 E. 25th St. Los Angeles, CA 90058 INsur:eac 0C%1 r%1j h111MRFR• COVERAGES CERTIFI THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE T NUMBERO LISTED BELOW HAVE BEEN ISSUED TO CONDITION OF ANY CONTRACT THE INSURED OR OTHER DOCUMENT NAMED ABOVE FOR THE WITH RESPECT POLICY PERIOD TO WHICH THIS INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, CONDITIONS OF SUCH POLICIES. THE INSURANCE AFFORDED LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. EXCLUSIONS AND ----- INSR� ADDL SUBRj POLICY EFF POLICY NUMBER POLICY EXP' LIMITS TYPE OF INSURANCE 1,000,000 A x COMMERCIAL GENERAL LIABILITY IK2GP902287 04120/2019 EACH OCCURRENCE --------- DAMAGE TO RENTED TT 100,000 CLAIMS -MADE '..X� OCCUR X 04/20/2018 REMISES"iEass�.urtarxJtl_-_ _---- 5,000 __rs- ME _' _D EXP_{Any one-parson)— PERSONAL 8 AQV INJURY S _ ____ _ .. 1,000,000 ��� I ; -- GENERAL AGGREGATE 2,000,000 _— --------- PER: GEN'L AGGREGATE LIMIT APPLIES _ PR LOC POLICY PRODUCTS_CO MPIOP ADG 2,000,000 THER: COMBINED SINGLE LIMIT 1,000,000 A AUTOMOBILE LIABILITY �IKMP902287 r ANY AUTO X 04/20/2018 04/20/2019 BOOILYINJURY_LP!1LWson1. INJURY OWNED X SCHEDULED AUTOS ONLY __ AUTOS f I ( BODILY _rexldenl)l_;. PROPERTY DAMAGE accident 1 yy Ep X . AUTOS ONLY �X AUTOS ONLY I { tPer -- — - - ---- __ _ I UMBRELLA LIAB OCCUR I EA HOCCURRENCE___-- — 1 EXCESS LIAR CLAIMS MADE __ ---- I AGGREGATE__- DED RETENTION $ pER OTH- f3-- B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN VWE 5021556 06 1 07/0112018 107101/2019 _? 1_$jBTILT — E.L. EACH ACCIDENT -- — .- i $ __ ANY PROPRIETORIPARTNER/EXECUTIVE (— 1 E%CLUDED? NIA I — 1'000,000 000,000 OFFICER/MEMBER L—f (Mandatory In NH) E.LJDISEASE-_ EA EMPLOYEES _____ lye describe under D RIPTION F OPERATIONS below K2GP902287 1 04/2012015 I j 04/20/2019 E L. DISEASE - P LI Y LIMIT $1 Mil 1,000,000 500/2500Ded A Garagekeepers 04/2012018 0412012019 $1 Mil 1,000 A On Hook Cargo K2GP902287 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES )ACORD 101, Additional Remarks Schedule, may be attached It more space is required) Location #1: 2115 E 25th St. Los Angeles, CA 90058 iNSURANCE �y?P 0 Location #2: 1618 E. Adams St. Los Angeles, CA 90015 CITY OF V RNON RI AN E N > Certificate Holder Named Additional Insured. DAT WILLIAM City of Vernon Dept of Building & Safety 4305 Santa Fe Vernon„ CA 90058 VERNOCI SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE TI/1e1 All � wL.M �wn.,...s.i ACORD 25 (2016/03) lW IV00'GV Iu MVVf\Y vv... v...�....... .... ..�..� The ACORD name and logo are registered marks of ACORD it POLICY NUMBER: K2GP902287 U.S. Tow Service. Inc. COMMERCIAL GENF,RAL 1_,IABIL VIN THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED ENDORSEMENT - OWNERS, LESSEES OR CONTRACTORS - (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name of Person or Organization: The City of Vernon, its elected and appointed officials, officers, employees agents, representatives, attorneys and volunteers Project: ALL OPERATIONS THE INSURANCE AS PROVIDED BY THIS POLICY IS PRIMARY AND NON-CONTRIBUTING OVER ANY OTHER VALID AND COLLECTABLE INSURANCE. (If no entry appears above, information required to complete this endorsement will be shown in the Declaration as applicable to this endorsement.) WHO IS AN INSURED (Section 11) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of "your work" for that insured by you. All other Terms and Conditions of this Policy remain unchanged. CG 20 10 10 93 Copyright, Insurance Services Office Inc. 1992 INSURANCE PP` CITY OF V RNON MN DAT WILLI ";RECTOR F I AN BLANKET WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT — CALIFORNIA This endorsement changes the policy to which it is attached effective on the inception date of the policy unless a different date is indicated below. (The following "attaching clause' need be completed only when this endorsement is issued subsequent to the preparation of the policy). This endorsement effective 7/1/18 at 12:01 AM forms a part of Policy No. WVE 5021556 06 Issued to US Tow Inc. By Insurance Company of the West We have a right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against any person or organization with whom you have a written contract that requires you to obtain this agreement from us, as regards any work you perform for such person or organization. The additional premium for this endorsement shall be % of the total estimated workers compensation premium for this policy. CERTIFICATE HOLDER: City of Vernon, Vernon Police Department ADDITIONAL ENTITIES INCLUDED: City of Vernon, Vernon Police Department DESCRIPTION: All operations of named insured. "Waiver of Subrogation Endorsement' naming certificate holder as an Additional Insured is included per form WC 04 03 61 (11-90 edition) attached to the policy. WC 04 03 61 Countersigned b (Ed. 11/90) Authorized Representative INSURANCE APPR "E / Coy OF ERNON SK N G M T 3U &4 DA E (� WIL DIRECT 100 F NCE POLICY NUMBER: K2GP902287 COMMERCIAL AUTO CA 20 48 0299 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DESIGNATED INSURED This endorsement modifies insurance provided under the following: Business Auto Coverage Form With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by this endorsement. This endorsement identifies person(s) or organization(s) who are insureds under the Who Is An Insured Provision of the Coverage Form. This endorsement does not alter coverage provided in the Coverage Form. This endorsement changes the policy effective on the inception date of the policy unless another date is indicated below. Endorsement Effective: 04/20/2018 untersi ned B ---------------- Named Insured: US Tow Inc. ` SCHEDULE Name of Person(s) or Organization(s): City of Vernon, Vernon Police Department (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to the endorsement.) Each person or organization shown in the Schedule is an insured for Liability Coverage, but only to the extent that person or organization qualifies as an insured under the Who Is An Insured Provision contained in Section II of the Coverage Form. INSURANCE APPR uo CITY F V NON RI MAN A F T I-V DAT WILLIAM FO DIRECTOR OF FINA r CA 20 48 0299Copryright, Insurance Services Officer, Inc., 1998 Page 1 of 1 SUPPORTING DOCUMENTATION CITY OF VERNON CITY COUNCIL MEETING February 5, 2019 ORDINANCE NO. 1259 SUMMARY (Granting to U.S. Tow, Inc., a Franchise Towing Services Agreement) A CERTIFIED COPY OF THE FULL TEXT OF PROPOSED ORDINANCE NO. 1259 IS AVAILABLE IN THE OFFICE OF THE CITY CLERK LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA. Ordinance No. 1259 was duly introduced at a regular meeting of the City Council of the City of Vernon held on February 5, 2019. Ordinance No. 1259 is scheduled to be considered for adoption by said Council at a regular meeting to be held on February 19, 2019. The proposed Ordinance No. 1259 would grant to U.S. Tow, Inc., a Franchise Towing Services Agreement. Maria E. Ayala, City Clerk of the City of Vernon, does hereby certify that Ordinance No. 1259 was duly introduced to the City Council of the City of Vernon at a regular meeting held on February 5, 2019, and said Ordinance is scheduled to be considered for adoption at a regular meeting of the City Council to be held on February 19, 2019. Dated: 02/05/2019 Mari4 E. Ayala, ty Clerk CALIFORNIA NEWSPAPER SERVICE BUREAU DAILY JOURNAL CORPORATION Mailing Address: 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839 Visit us @ www.LegalAdstore.com MARIA AYALA CITY OF VERNON CITY CLERK 4305 SANTA FE AVE VERNON, CA 90058 PRE# 3220198 CRY OF VERNON CITY COUNCIL MEETING FEBRUARY 5, 2019 ORDINANCE NO. 1259 SUMMARY (Granting to U.S. Tow, Inc., a Franchise Towing COPY OF NOTICE ervicesAgrcopy o) A certified copy of the full teat of proposed ordinance no. 1259 is AVAILABLE in the office of the city dark LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA. Ordinance No. 1259 was duly introduced at a Notice Type: GPN GOUT PUBLIC NOTICE YP regular meeting of the City Council of the City of Vernon held on February 5, 2019. Ordinance No. 1259 is scheduled to be considered for adoption Ad Description Ordinance No. 1259 - First Summary by said Council at a regular meeting to be held on February 19, 2019. The olgosed Ordinance No. 1259 would aranl to U S ow Inc a ranchise Towing ernces To the right is a copy of the notice you sent to us for publication in the Acreement. HUNTINGTON PARK BULLETIN. Please read this notice carefully and call us Maria E. Ayala, City Clerk of the City of Vernon, with an corrections. The Proof of Publication will be filed with the Count y Y was does hereby certify that Ordinance No. a City duly introduced to the City Council of the Cily of Clerk, if required, and mailed to you after the last date below. Publication Vernon at a regular meeting held on February 5, date(s) for this notice Is (are): 2019, and said Ordinance is scheduled to be considered for adoption at a regular meeting of the City Council to be held on February 19, 2019. 02/14/2019 Dated: 02/05/2019 a Maria E. Ayala, City Clerk 2/14/19 PRE-3220198# HUNTINGTON PARK BULLETIN An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice. InIIInAIIIIIIIIIIIINIIIVVI�IIIIIIIIIIIIVYIII�IV�IflI CITY OF VERNON CITY COUNCIL MEETING FEBRUARY 19, 2019 ORDINANCE NO. 1259 SUMMARY (Granting to U.S. Tow, Inc., a Franchise Towing Services Agreement) A CERTIFIED COPY OF THE FULL TEXT OF ADOPTED ORDINANCE NO. 1259 IS AVAILABLE IN THE OFFICE OF THE CITY CLERK LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA. On February 19, 2019, the City Council of the City of Vernon approved and adopted Ordinance No. 1259 granting to U.S. Tow, Inc., a franchise towing services agreement. I, Maria E. Ayala, City Clerk of the City of Vernon, do hereby certify that Ordinance No. 1259 was duly approved and adopted by the City Council of the City of Vernon at a regular meeting held on February 19, 2019, and passed by said Council by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Dated: 02/20/2019 Woodruff -Perez, Davis, Martinez, Lopez, Ybarra None None is E. Ayala ity Clerk HUNTINGTON PARK BULLETIN 3731 WILSHIRE BLVD STE 840, LOS ANGELES, CA 90010 Telephone (323) (323) 556- / Fax (213) (213) 835- MARIA AYALA CITY OF VERNON CITY CLERK 4305 SANTA FE AVE VERNON, CA - 90058 PROOF OF PUBLICATION (2015.5 C.C.P.) State of California ) County of LOS ANGELES ) ss Notice Type: GPN - GOVT PUBLIC NOTICE Ad Description: Ordinance No. 1259 - Second Summary I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the HUNTINGTON PARK BULLETIN, a newspaper published in the English language in the city of HUNTINGTON PARK, county of LOS ANGELES, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of LOS ANGELES, State of California, under date 06/14/1943, Case No. 485073. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -wit: 02/28/2019 Executed on: 02/28/2019 At Los Angeles, California I certify (or declare) under penalty of perjury that the foregoing is true and correct. Siature 111V1I 11 111I11111111 11II 11111111111gn11111 III 1111 This space for filing stamp only PRE #: 3225218 CITY OF VERNON CITY COUNCIL MEETING FEBRUARY 19, 2019 ORDINANCE NO. 1259 SUMMARY (Granting to U.S. Tow, Inc., a Franchise Towing Services Agreement) A CERTIFIED COPY OF THE FULL TEXT OF ADOPTED ORDINANCE NO. 1259 IS AVAILABLE IN THE OFFICE OF THE CITY CLERK LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA. On February 19, 2019, the City Council of the City of Vernon approved and adopted Ordinance No. 1259 granting to U.S. Tow, Inc., a franchise towing services agreement. I, Maria E. Ayala, City Clerk of the City of Vernon, do hereby certify that Ordinance No. 1259 was duly approved and adopted by the City Council of the City of Vernon at a regular meeting held on February 19. 2019, and passed by said Council by the following vote: AYES: COUNCILMEMBERS: Woodruff -Perez, Davis, Martinez, Lopez, Ybaua NOES: COUNCILMEMBERS: None ABSTAIN: COUNCILMEMBERS: None Dated: 02/20/2019 a Maria E. Ayala, City Clerk 2/28/19 PRE-3225218# HUNTINGTON PARK BULLETIN Email City Council Agenda Item Report Agenda Item No. COV-76-2019 Submitted by: Robert Sousa Submitting Department: Police Department Meeting Date: February 19, 2019 SUBJECT Ordinances Granting U.S. Tow, Inc. and Mr. C's Towing of South Gate Inc., a Franchise Towing Services Agreement Recommendation: A. Find that approval of franchise towing service agreements with U.S. Tow, Inc. and Mr. C's Towing of South Gate, Inc. is not subject to review under the California Environmental Quality Act (CEQA), because such action is a governmental administrative activity that will not result in direct or indirect physical changes in the environment and is therefore not a `project" as that term is defined by CEQA Guidelines section 15378; and B. Approve the second reading, and adopt Ordinance No. 1259 granting U.S. Tow, Inc. a franchise towing services agreement; and C. Approve the second reading, and adopt Ordinance No. 1260 granting Mr. C's Towing of South Gate, Inc. a franchise towing services agreement; and D. Authorize the City Administrator to execute franchise agreements, in substantially the same form as submitted herewith, with U.S. Tow, Inc. and Mr. C's Towing of South Gate, Inc. on behalf of the City. Background: NOTE: This item was presented to the City Council for a first reading on February 5, 2019. Additional information has been added to the later portion of this staff report to address concerns raised during the first reading. On October 2, 2012, the City Council adopted Ordinance No. 1198, establishing a selection process and franchise agreement system for official police towing services. In addition, the ordinance set forth minimum requirements and performance standards for equipment, facilities, personnel, and services for each tow company providing as needed vehicle towing and storage services requested by the Vernon Police Department ("VPD'). The ordinance also established procedures for suspending or revoking tow companies that fail to meet the minimum standards, violate federal, state, or local laws, or for any cause which the VPD determines is in the public interest, necessary or general welfare for the contract to continue. On September 15, 2015, the City Council of the City of Vernon adopted Ordinances Nos. 1231 and 1233 granting U.S. Tow, Inc. and H.P. Automotive & Tow, Inc. a franchise towing services agreement for a term of three years, which has now expired. On November 1, 2018, the City Administrator authorized staff to issue a Request for Proposals ("RFP') seeking qualified licensed Tow Providers to enter into a franchise agreement to perform rotational police towing and storage services. The RFP specifically sought operators to fimiish the VPD with licensed tow operations as may be required for a three (3) year period from the date of execution. The RFP was emailed to seven (7) local tow companies operating in the general area and was posted on the City's website. In addition, an RFP notice was published in the Los Angeles WAVE news publication. The VPD received five (5) responses to the RFP. The five proposals were reviewed and assessed by an evaluation panel comprised of representatives from the VPD Administrative staff Before conducting an assessment of each of proposal, members of the evaluation panel conducted on -site inspections of each of the five tow companies. Each proposal was evaluated using the criteria set forth in the RFP. The following criteria was used in evaluating each proposal: - Qualifications / Experience 40% - References 20% - Responsiveness to the RFP and Quality 10% - Cost and Fees 30% After evaluating and rating the five proposals, the towing companies were ranked according to the scores of the evaluators. Based on the physical inspections, reference checks, and evaluation of the proposals, the evaluation panel is reconnlending the following two tow companies: U.S. Tow, Inc. and Mr. C's Towing of South Gate, Inc.. The two companies named for award are the top ranking companies out of the five that responded to the RFP. 1. U.S. Tow Inc. 2. Mr. C's Towing of South Gate Inc. 3. Citywide Towing Inc. 4. H.P. Automotive & Tow Inc., dba HUB City Tow 5. Hank's Wilshire Tow Inc. The City Attorney's Office has prepared a standard agreement for official police tow services. This agreement establishes the City's requirements and minimum performance standards, payment of fees, reporting requirements, and other terms and conditions related to vehicle towing and impound services for the VPD. The agreement is for a term of three (3) years. This agenda item was presented to City Council for First Reading at the February 5, 2019 City Council Meeting. At the aforementioned meeting, the City Council approved the first reading of the franchise towing services agreement with a request that language be added to have the Police Department (PD) track the tow companies' response times moving forward. In addition, the City Council requested that the PD provide them with information regarding the average response times for each of the tow companies currently under consideration. The Police Department now has procedures in place to track response times for tow services moving forward. In addition, the two ordinances being proposed were revised to include language regarding data collection and reporting requirements. PD will collect and maintain records of response times and will submit a written report summarizing such data to the City Council at a regularly scheduled Council Meeting during the month of April throughout the term of the franchise. Following the first reading, the PD requested and received response time data from both U.S. Tow, Inc. and Mr. C's Towing of South Gate for the last three years (2016-2018). Being that Mr. C's Towing of South Gate has never had an agreement with the City for tow services, they provided response time data for the law enforcement agencies they currently have agreements with U.S. Tow, Inc. who has had an agreement with the City for the last 3 years provided response time data specific to calls for service from Vernon PD. 2 The information provided by U.S. Tow, Inc. indicates the company had a three-year average response time (in minutes) to requests from the PD of 1126, and Mr. C's Towing of South Gate had a three-year average response time of 8:38. The request for proposals (RFP) issued for this purpose specified the average response time for any thirty (30) day period pursuant to requests for tow service by the PD must not exceed twenty (20) minutes. The average response times noted above demonstrate both tow companies have a track record of responding well within the twenty (20) minute threshold outlined in the RFP, and that both companies will be able to adequately handle the PD's service requests. Fiscal cal Impact: There is no cost associated with execution of a franchise tow services agreement. The towing services franchise does not increase the costs paid by vehicle owners, as these rates are fixed. Vehicle Code § 12110(b) allows a public agency to collect administrative or franchise fee to recover its actual and reasonable costs incurred in connection with its towing program. ATTACHMENTS • 1. NPH - 2 Ordinances Granting Franchise Towing Services 011719 • 2. Franchise Tow Fee Program - RFP • 3. US Tow City of Vernon Proposal • 4. Mr C's Towing of South Gate Response to Vernon Towing RFP • 5. Ordinance Franchise Tow Agreement U.S. Tow • 6. Redline Ordinance Franchise Tow Agreement U.S. Tow (No Exhibits) • 7. Ordinance Franchise Tow Agreement Mr. C's Towing • 8. Redline Ordinance Franchise Tow Agreement Mr. C's Towing (No Exhibits) 3 City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 (323)583-8811 NOTICE OF PUBLIC HEARING REGARDING TWO ORDINANCES GRANTING A FRANCHISE TOWING SERVICES AGREEMENT TO U.S. TOW, INC, AND MR. C'S TOWING OF SOUTH GATE, INC. The City of Vernon will conduct a Public Hearing, which you may attend. PLACE: Vernon City Hall City Council Chamber 4305 Santa Fe Avenue Vernon, CA 90058 DATE & TIME: Tuesday, February 5, 2019 at 9:00 a.m. (or as soon thereafter as the matter can be heard) PURPOSE/SUBJECT: Consider the adoption of two ordinances granting a franchise towing services agreement to U.S. Tow, Inc. and Mr. C's Towing of South Gate Inc. DOCUMENTS FOR REVIEW: Notice is hereby given that a hard copy of the proposed ordinances will be available for public review during normal business hours in the City Clerk Department, located at 4305 Santa Fe Avenue, Vernon, California, between the hours of 7:00 a.m. and 5:30 p.m. Monday through Thursday. Please send your comments or questions to: Robert Sousa, Captain City of Vernon Police Department 4305 Santa Fe Avenue, Vernon, CA 90058 (323) 587-5171 Ext. 115 Email: rsousa@covpd.org PROPOSED CEQA FINDING: Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is a fiscal and administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. If you challenge the adoption of the ordinances granting a franchise towing services agreement to U.S. Tow, Inc. and Mr. C's Towing of South Gate, Inc. or any provision thereof in court, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. Americans with Disabilities Act (ADA): In compliance with ADA, if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811 ext. 546. The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated: 01/10/2019 /s/ Maria E. Ayala, City Clerk 4 CALIFORNIA NEWSPAPER SERVICE BUREAU DAILYJOURNAL CORPORATION Mailing Address: 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839 Visit us @ www.LegalAdstore.com MARIA AYALA CITY OF VERNON CITY CLERK 4305 SANTA FE AVE VERNON, CA 90058 COPY OF NOTICE Notice Type: GPN GOVT PUBLIC NOTICE Ad Description NPH - Granting Franchise Towing Svcs To the right is a copy of the notice you sent to us for publication in the HUNTINGTON PARK BULLETIN. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are): 01 /17/2019 An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice. 111i 1i 1ui 1ui 1ui 1ui 1ui 11111 1iu 11111 iiui 11 11i PRE# 3211404 NOTICE OF PUBLIC HEARING REGARDING TWO ORDINANCES GRANTING A FRANCHISE TOWING SERVICES AGREEMENT TO U.S. TOW, INC, AND MR. C'S TOWING OF SOUTH GATE, INC. The City of Vernon will conduct a Public Hearing, which you may attend. PLACE: Vernon City Hall City Council Chamber 4305 Santa Fe Avenue Vernon, CA 90058 DATE & TIME: Tuesday, February 5, 2019 at 9:00 a.m. (or as soon thereafter as the matter can be heard) PURPOSE/SUBJECT: Consider the adoption of two ordinances granting a franchise towing services agreement to U.S. Tow, Inc. and Mr. C's Towing of South Gate Inc. DOCUMENTS FOR REVIEW: Notice is hereby given that a hard copy of the proposed ordinances will be available for public review during normal business hours in the City Clerk Department, located at 4305 Santa Fe Avenue, Vernon, California, between the hours of 7:00 a.m. and 5:30 p.m. Monday through Thursday. Please send your comments or questions to: Robert Sousa, Captain City of Vernon Police Department 4305 Santa Fe Avenue, Vernon, CA 90058 (323) 587-5171 Ext. 115 Email: rsousa@covpd.org PROPOSED CEQA FINDING: Find that approval of the proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is a fiscal and administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. If you challenge the adoption of the ordinances granting a franchise towing services agreement to U.S. Tow, Inc. and Mr. C's Towing of South Gate, Inc. or any provision thereof in court, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. Americans with Disabilities Act (ADA): In compliance with ADA, if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583- 8811 ext. 546. The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated: 01/10/2019 /s/ Maria E. Ayala, City Clerk 1 /17/19 PRE-3211404# HUNTINGTON PARK BULLETIN City of Vernon Request for Proposals (RFP) Franchise Tow Fee Program 6-f City of Vernon Police Department 4305 Santa Fe Avenue, Vernon, CA 90058 Phone: (323) 587-5171 City of Vernon Franchise Tow Fee Program Request for Proposals INTRODUCTION AND PROJECT The City of Vernon seeks proposals from qualified bidders to enter into a franchise agreement to perform rotational police towing and storage services. Services to be performed by the selected tow service company include vehicle towing and impound services as directed by the Vernon Police Department. Based on the quality of the proposals received, the City may consider awarding a single tow franchise contract, or multiple tow franchise contracts using a call -for -service rotation. The City does not expect to award more than two (2) franchise agreements under the rotational system, although City Council reserves the right to award contracts at its sole discretion, based on the proposals submitted. The City will select no more than two (2) tow service companies, based on demonstrated competence and a cost effective approach to design, conduct, and assist in the removal of vehicles which are apparently abandoned, or driven by unlicensed drivers, or drivers driving on suspended licenses, or involved in traffic collisions, or vehicles creating a traffic hazard due to mechanical failures. To be eligible for consideration, the tow service company's place of business and vehicle storage facility must be located within a seven (7) mile radius of the Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon CA 90058. 2. BACKGROUND The City of Vernon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles California. Over its long history, Vernon has been developed as an industrial community. At the turn of the 201h century the lands that make up Vernon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial" city. By the 1920's Vernon was attracting large stockyards and meatpacking facilities. In the 1930's Vernon became the location of choice for many heavy industrial plants. As economic conditions changed over the decades, these large scale industrial operations have relocated out of Southern California and Vernon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Government: The City Council consists of five members, elected at -large, who serve five-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tem from its own membership to serve one-year terms. Labor Force: Vernon has approximately 280 employees, and its departments include a Fire Department, Police Department, Finance Department, Public Works Department, Public Utilities Department, and Health and Environmental Control Department. Present bargaining units recognized include the Vernon Police Officers Benefit Association, Vernon Police Management Association, Vernon Firemen's Association, the Vernon Fire Management Association, International Brotherhood of Electrical Workers Local 47, and Teamsters Local 911. 7 -2- City of Vernon Franchise Tow Fee Program Request for Proposals 3. Key Dates a) Issue Date: November 1, 2018 b) Bidders Deadline for Requests for Information: November 7, 2018 c) City's Response to Requests for Information Deadline: November 14, 2018 d) Deadline to submit Proposal: November 19, 2018 4. REQUESTS FOR INFORMATION A) All questions must be submitted in writing to the City of Vernon Police Department no later than 5:00 pm, November 7, 2018. Responses to verbal questions will not be given. B) Requests for clarifications, questions and comments must be clearly labeled, "Written Questions Re: City of Vernon Franchise Tow Fee Program." The City is not responsible for failure to respond to a request that has not been labeled as such. C) Any of the following methods of delivering written questions are acceptable as long as the questions are received no later than the date and time specified above: • U.S. Mail or Personal Courier: Attention: Robert Sousa, Captain Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 • E-mail: rsousa@covpd.org D) Responses from the City of Vernon to requests for information will be delivered to all interested parties no later than November 14, 2018. E) Please note that any questions asked and any response provided by Vernon will be sent to every person who will be submitting a proposal, to the extent the City is aware of them. 5. ISSUES OR PROBLEMS TO BE ADDRESSED The selected tow service company shall be able to provide swift, professional service in the removal of any vehicle, as directed by the Vernon Police Department, from any City street. 6. SCOPE OF SERVICES REQUIRED The City of Vernon is seeking the services of a highly qualified tow service company to assist in: Under the terms specified herein as well as in Chapter 4B of the Vernon Municipal Code, Franchisee shall furnish impound, towing, and storage services to the Vernon Police IMM City of Vernon Franchise Tow Fee Program Request for Proposals Department and the City as directed by the Vernon Police Department. To be eligible for a franchise, applicants must meet the City's minimum requirements as specified herein. Franchisee will be required to provide the necessary trained personnel, tow trucks and storage facilities to recover, if necessary, and remove vehicles and tractor/trailer's involved in collisions. Franchisee(s) must be able to tow and store vehicles impounded by the police, many times in excess of 30 days; and must be able to clean up and dispose of debris at the scene of an accident at which any vehicle to be towed hereunder was involved. The average response time for any thirty (30) day period pursuant to requests for tow service by the Police Department, must not exceed twenty (20) minutes. The maximum response time for any single request for tow service by the Police Department shall not exceed thirty (30) minutes. In the event the Franchisee cannot respond within twenty (20) minutes, the Franchisee shall immediately notify the Police Department dispatcher and provide an estimated time of arrival. Franchisee must provide a dispatcher available onsite at the tow facility place of business at all times for the immediate dispatching of towing equipment. Franchisee's place of business must be open from 0700 to 1800 hours Monday through Friday. Alternate hours, as directed by the City, must also be available in order to accommodate special City events. Failure or refusal to promptly relay the Police Dispatcher's requests for towing services shall constitute failure to comply with the requirements, terms and conditions of the agreement and may result in termination of the agreement. All tow trucks shall be equipped as provided in the California Vehicle Code. Franchisee's trucks shall be painted, free of major dents, and kept clean and in good working order. Official police tow services shall, at all times, have at least three (3) fully equipped and operational tow trucks in service. All of the tow trucks in service must have a minimum capacity of one (1) ton. At least one (1) of the tow trucks in service must be a flatbed tow truck. At least one (1) of the three (3) tow trucks in service must have a five (5) ton lifting capacity. Every official police tow service shall be equipped for and have personnel proficient in unlocking locked vehicles when requested to do so by Police Department employees. Upon selection the Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all other information required of any tow unit driver employed by the permit holder subsequent to the date of the tow operator permit application, which information shall be filed not later than ten (10) business days following the effective date of hiring. The Franchisee will be required to notify the Vernon Police Department of the name of any tow truck driver no longer employed by such permit holder. This notification shall be given to the Vernon Police Department no later than ten (10) business days following the last date of the driver's employment by the permit holder. 9 - 4 - City of Vernon Franchise Tow Fee Program Request for Proposals The Franchisee will be required to notify the Vernon Police Department of the identity of any tow truck driver whose license is suspended. The operator shall not be authorized to operate in Vernon unless the operator has provided proof from the Department of Motor Vehicles of the ability to operate a vehicle during work hours. The Franchisee will be required to enroll and participating in a program with California Department of Motor Vehicles (DMV Pull Program) that notifies the Franchisee when their drivers have any change to their driving status or record. This DMV program will alert the Franchisee to any potential problem drivers. Franchisee will be required to comply with the California Vehicle Code and other applicable laws with regards to lien sales, including supplying a list of vehicles each month that the Franchisee intends to lien sale prior to selling same for approval by the department. Franchisee is responsible for maintaining all documents relating to lien sales. 7. QUALIFICATIONS & CRITERIA A. Qualifications: The City of Vernon will select no more than two (2) tow service companies for all of the outlined Scope of Service on the basis of qualifications, experience, and cost. The following are the minimum qualifications to be used to evaluate responses to this Request for Proposal: 1. The applicants can satisfy the insurance, business license, and tow operator permits requirements set forth in Vernon Municipal Code Chapter 4B. 2. The applicants are qualified on the basis of prior experience in the towing operation business and financial responsibility. 3. All tow vehicles and equipment must comply with all state and applicable federal requirements. 4. The applicants can reasonably conduct an official police towing service which complies with all of the requirements of Vernon Municipal Code Chapter 4B. 5. The applicants will accept all tow requested by the City, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment. B. Selection Criteria: The City will conduct a comprehensive, fair, and impartial evaluation of proposals received in response to this RFP. All proposals received will be reviewed and evaluated by a committee of qualified personnel. The name, information, or experience of the individual members will not be made available to any proposer. The Evaluation Committee will first review and screen all proposals submitted, except for the cost proposals, according to the minimum qualifications set forth above. The following criteria will be used in reviewing and comparing the proposals and in determining the highest scoring bid: 1. 40% Qualifications, background and prior experience of the tow service company in the Service Area(s) being proposed, experience of key staff assigned to oversee services provided to Vernon, evaluation of size and scope of similar work performed and success on that work. 10 -5- City of Vernon Franchise Tow Fee Program Request for Proposal 2. 30% Cost and fees to the City for handling matters. Cost is not the sole determining factor but will be taken into consideration. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. If rates differ for different types or levels of service, or for different Service Areas, the Proposer should so state. 3. 10% Responsiveness to the RFP, and quality and responsiveness of the proposal. 4. 20% References including past performance of proposer. B. FORMAT AND DELIVERY OF RESPONSE Respondents are asked to submit one (1) unbound original, seven (7) hard copies and one (1) electronic copy (via email to rsousa@covpd.org) of their proposals in sufficient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum, the following information in sectionalized format addressing all phases of the work in the RFP. A. Format: Limit your proposal to 20 typed 8.5 X 11" pages, or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments. You may attach a company brochure if you wish, but it must be as a separate attachment and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1" margin on all boarders. 2. Organize your submittal in the order described above. 3. Prominently label the package: "Franchise Tow Fee Program" and include the name of the primary contact for the respondent. Deliver the response to: City of Vernon Attention: Robert Sousa, Captain 4305 Santa Fe Avenue Vernon, CA 90058 4. Responses are due on or before 5:00 p.m. on November 19, 2018. Late response will not be accepted. 13. Cover Letter: All proposals shall include a cover letter which states that the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal. If the proposal contemplates the use of sub -contractors, the sub- contractors shall be identified in the cover letter. If the proposal is submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually bind the business entity. With respect to the business entity, the cover letter shall also include: the identification of the business entity, including the name, address and telephone number of the business entity; and the name, title, 11 SO City of Vernon Franchise Tow Fee Program Request for Proposals address and telephone number of a contact person during the proposal evaluation period. C. Introduction: Present an introduction of the proposal and your understanding of the assignment and significant steps, methods and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. D. General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions it for each Service Area proposed. E. Work Plan: Present concepts for conducting the work plan and interrelationship of all projects. Define the scope of each task including the depth and scope of analysis or research proposed. F. Fees and costs: Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer; therefore, the proposal submitted should contain the proposer's most favorable terms and conditions, since selection and award may be made without discussion with any tow service company. All prices should reflect "not to exceed" amounts per item. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. G. Ability of the Proposer to Perform: Provide a detailed description of the proposer and his/her/its qualifications, including names, titles, detailed professional resumes and past experience in similar work efforts/products of key personnel who will be working on the assignment. Provide a list of specific related work projects that have been completed by the proposer which are directly related to the assignment described in this RFP. Note the specific individuals who completed such project(s). Identify role and responsibility of each member of the project team. Include the amount of time key personnel will be involved in the respective portions of the assignment. Respondents are encouraged to supply relevant examples of their professional product. Provide a list of references. The selected tow service companies shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. H. Affidavit of Non -Collusion. Proposer must submit a completed and signed, "Affidavit of Non -Collusion." (Copy attached as Exhibit A). 9. ADDENDA CHANGES AND AMENDMENTS TO THIS SOLICITATION At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda, changes, and amendments, if made, will be posted on the City's website (www.cityofvernon.org), which is deemed adequate notice. A proposer may make a request to the City's project coordinator to be placed on a list of persons to receive notice of any such addenda, changes, or 12 sM City of Vernon Franchise Tow Fee Program Request for Proposals amendments. The preferred manner of communications is via e-mail due to its timeliness. 10. CONDITIONS FOR RESPONSES TO RFP The following conditions apply to this RFP process: A. Nothing contained in this RFP shall create any contractual relationship between the respondent and the City. B. This RFP does not obligate the City to establish a list of service providers qualified as prime contractors, or award a contract to any respondent. The City reserves the right to amend or cancel this RFP without prior notice, at any time, at its sole discretion. C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFP. D. No conversations or agreements with any officer, agent, or employee of the City shall affect or modify any terms of this RFP. Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. E. The City reserves the right, in its sole discretion, to accept or reject any or all Proposals without prior notice and to waive any minor irregularities or defects in a Proposal. The City reserves the right to seek clarification on a Proposal with any source. F. The dates, times, and sequence of events related to this RFP shall ultimately be determined by the City. The schedule shown above is subject to change, at the sole discretion of the City, although the City will attempt to follow it and, if it must be altered, will attempt to provide reasonable notice of the changes. G. Respondents shall not issue any news release pertaining to this RFP, or the City without prior written approval of the City. H. All submitted proposals and information included therein or attached thereto shall become public record upon delivery to the City Administrator's Office. 11. RIGHT BY THE CITY TO WITHDRAW THIS REQUEST The City may, at its sole discretion and for any reason whatsoever, withdraw this solicitation at any time. 13 IMI City of Vernon Franchise Tow Fee Program Request for Proposals 12. LIVING WAGE ORDINANCE The selected tow service companies shall pay qualifying employees a wage of not less than $10.30 per hour with health benefits, or 511.55 per hour without health benefits. The tow service companies shall also provide qualifying employees at least twelve days off per year for sick leave, vacation or personnel necessity, and an additional ten days a year of uncompensated time for sick leave. There shall be a prohibition on employer retaliation against an employee's complaining to the City with regard to the employer's compliance with the living wage ordinance. The tow services companies, and any sub- contractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D" of the standard form franchise towing services agreement, attached hereto as Exhibit B. Upon the City's request, certified payroll records shall promptly be provided to the City. 13. STANDARD TERMS AND CONDITIONS Prior to the award of any work hereunder, City and proposer shall enter into the written contract for services attached hereto as Exhibit B. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract. The term of the Contract shall not exceed three (3) years. 14 City of Vernon Franchise Tow Fee Program Request for Proposals EXHIBIT A AFFIDAVIT OF NON -COLLUSION 15 City of Vernon Franchise Tow Fee Program Request for Proposals STANDARD FORM CONTRACT 16 -11- CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. Franchisee: Responsible Principal of Franchisee: Notice Information - Franchisee: Notice Information - City: Commencement Date: Termination Date: Consideration: Records Retention Period COVER PAGE [insert name of franchisee] [insert name, title] [insert name of franchisee] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] City of Vernon 4305 Santa Fe Avenue Vernon. CA 90058 Attention: Anthony Miranda Chief of Police Telephone: (323) 587-5171 ext. 115 Facsimile: (323) 826-1483 [insert commencement date] [insert termination date, three years after commencement date] Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Three (3) years, pursuant to Section 15.3 17 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. This Agreement is made and entered into by and between the City of Vernon ("City"), a California charter City and California municipal corporation, and ("Franchisee"), a Police Towing Company with its principal place of business at (collectively, the "Parties") to provide towing services to the City. The Parties agree as follows: RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vernon as set forth in the Request for Proposal issued on or about Exhibit A, and Franchisee's proposal to the City ("Proposal') dated Exhibit B, both of which are attached to and incorporated into this Agreement, by reference. WHEREAS, pursuant to Chapter 4B of the Vernon Municipal Code, Franchisee has applied for a Police Towing Franchise ("Franchise"); and WHEREAS, the City Council has held a public hearing for the purpose of hearing persons in favor of or in opposition to the granting of such Franchise; and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with Chapter 4B of the Vernon Municipal Code and has agreed to comply with all provisions of that Chapter; and WHEREAS, it is required that City and Franchisee enter into a Franchise Towing Services Agreement ("Agreement") for Police Towing services in the City of Vernon; and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW, THEREFORE, the Parties do hereby agree as follows: Section 1. GRANT OF FRANCHISE. City grants to Franchisee a Police Towing Franchise authorizing Franchisee to engage in the business of Police Towing as set forth in chapter 4B of the Vernon Municipal Code in the City of Vernon and to use the public streets and rights of way for such purpose. This grant is pursuant to the City's Request for Proposal and to Franchisee's proposal for the Franchise. Franchisee is subject to the terms and conditions specified in Section 8.9 of the Charter of the City of Vernon, the provisions of Chapter 4B of the Vernon Municipal Code, the terms and conditions specified in all related resolutions, the terms and conditions of this Agreement, the representations and assurances in Franchisee's application for the Franchise. IiF:3 Section 2. TERM OF FRANCHISE. The term of this Franchise granted to Franchisee shall be for three (3) years, from to inclusive. Section 3. FRANCHISE FEES. 3.1 During the term of the Franchise, Franchisee shall pay a franchise fee to City in an amount equal to 5% of Franchisee's gross annual receipts arising from the use, operation or possession of the Franchise, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 4B.8 of the Vernon Municipal Code and any Resolution adopted by the City Council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the City Council at any time during the term of the Agreement. 3.2 The Franchisee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the Franchisee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The Franchisee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States; the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by Franchisee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this Franchise and of all rights of Franchisee hereunder pursuant to the procedures set forth in Sections 11 and 12 herein. However, Franchisee has the ability to cure. Further, the City is responsible for insuring that Franchisee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this Franchise. 3.3 Franchisee shall timely pay all required franchise fees to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Each payment shall be accompanied by a written statement, verified by the Franchisee or a duly authorized representative of the Franchise, showing in such form and detail as the Finance Director of the City of Vernon may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Finance Director may require as material to a determination of the amount due. 3.4 The first payment of the franchise fee will be due on _ and payments shall be due monthly thereafter on the 1511 day of each month. 3.5 When Franchisee remits franchise fees to the City, such franchise fees shall be deemed timely paid only if delivered or postmarked on or before the due date. If fees We: are not timely paid, Franchisee shall be subject to suspension or termination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be established and assessed by the City, including, but without limitation, late fees assessed at the rate of five percent (5%). Section 4. TOWING SERVICES, 4.1 Franchisee shall provide Police Towing services, as set forth in Exhibit A, which is the City's Request for Proposals for Official Police Tow Services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules, standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for Proposals. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 4B of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisition towing services from other service providers as set forth in Section 4B.12 of the Vernon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in the reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. Section 5. RATES. CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the City Council. The prevailing rates prescribed by the Southern Division of the California Highway Patrol, the Los Angeles Police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shall be $ and the storage charge shall be S per day, until otherwise modified by the City Council. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by MasterCard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after -hour release fee. As part of the award of franchise the City Council will be requested to establish an after-hours release fee not to exceed 112 of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payment of its monthly franchise fees. The report shall be submitted to: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 20 The report shall include the information required by Section 4B.10(H) of the Vernon Municipal Code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee: Section 7. FRANCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms with generally accepted accounting principles. Franchisee's books, accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents of the City. Such records shall be kept at franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform Police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchise. Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchisee and its subcontractors. Section 8. TOW VEHICLE AND DRIVER_, REPORTING. COMPLIANCE AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to City, that every such vehicle conforms with regional and State vehicle emission standards ("emission standards"), and shall provide documentation of compliance on written request of the City. Franchisee understands and agrees that failure to conform with emission standards may result in suspension, termination or non -renewal of a Franchise. 8.2 Every vehicle operated by Franchisee and for Police Towing services in the City shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, together with Franchisee's telephone number painted upon both sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-1/4" in height and not less than 5/6" stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all identification required of any tow unit driver working for Franchisee, whether as an employee or as a contractor, which information shall be filed not later than ten (10) business days following the effective date of employment or engagement. Franchisee shall also notify the Vernon Police Department within ten (10) business days of the following occurrences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any tow unit driver with Franchisee. Section 9. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, fines, charges or 21 penalties whatsoever, including reasonable attorney's fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner related to the services provided or business conducted under Chapter 4B of the Vernon Municipal Code or otherwise pursuant to this Agreement. 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns, and any successor or successors to the City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses (including, but not limited to, attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the City or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 United States Code Section 9607, and California Health and Safety Code Section 25364, and any successor provisions, to insure, protect, hold harmless, and indemnify the City from liability. Section 10. INSURANCE. Franchisee shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Agreement, including any extensions thereto. The policies shall state that they afford primary coverage. Automobile Liability with minimum limits of at least $1,000,000 combined single limit, including owned, hired, and non -owned liability coverage. (1) MCS 90 Endorsement must be attached to the auto liability policy. Garage Keeper Legal Liability insurance with coverage limits of no less than 51,000,000 for damage to a vehicle towed, impounded or otherwise stored by Franchisee. iii. On -Hook Liability insurance with coverage limits of no less than 51,000,000 for damage to any vehicle towed by Franchisee or otherwise connected to any of Franchisee's tow trucks. iv. Franchisee agrees to subrogate automobile liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under 22 the performance of the services. V. General Liability with minimum limits of at least S1,000,000 per occurrence and S2,000,000 aggregate written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Franchisee's performance of this Agreement. (1) If Franchisee employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Franchisee may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. (2) Franchisee agrees to subrogate General Liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. vi. Franchisee shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. In addition, Franchisee shall require each subcontractor to similarly maintain workers' compensation insurance in accordance with the laws for California for all of the subcontractor's employees. Compliance is accomplished in one of the following manners: (1) Provide copy of permissive self-insurance certificate approved by the State of California; or (2) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Agreement; or (3) Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Agreement. vii. Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. viii. Insurance shall be placed with insurers with a Best's rating of no less than A-Vlll. 23 ix. Prior to commencement of performance, Franchisee shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. X. Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Franchisee shall immediately notify City and cease all performance under this Agreement until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Franchisee by way of set-off or recoupment from sums due to Franchisee, at City's option; (b) immediately terminate this Agreement and seek damages from the Agreement resulting from said breach; or (c) self -insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Franchisee, by way of set-off or recoupment from any sums due to Franchisee. Section 11. TERMINATION AND SUSPENSION. The City may terminate this Agreement, without cause, by giving the Franchisee thirty (30) days written notice of such termination and the effective date thereof. The City may terminate this Agreement, with cause, by giving the Franchisee (10) days written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the City and shall be, but is not limited to, failure to supply the materials, equipment or service specified within the time allowed or within the terms, conditions or provisions of this agreement. The Franchisee may not cancel this Agreement without prior written consent from the Vernon Chief of Police. Section 12. TEMPORARY SUSPENSION. In addition to termination or suspension as set forth in Section 11, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the continued operation by the Franchisee would constitute a danger to public health, safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different. Notwithstanding other notice provisions of this Agreement, the temporary suspension is effective upon the earlier of either receipt or the expiration of 3 days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for termination hearing and all other information required by the Vernon Municipal Code. The temporary suspension shall remain effective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of Police. 24 Section 13. ACCEPTANCE. WAIVER. Franchisee agrees to be bound by and comply with all the requirements of Chapter 4B and this Agreement. By entering into this Agreement, Franchisee waives, to the maximum extent permitted by law, Franchisee's right to challenge the terms of this Agreement and of Chapter 4B under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14, GENERAL TERMS AND CONDITIONS. 14.1 INDEPENDENT STATUS. It is understood that in the performance under this Agreement, Franchisee shall be, and is, an independent operator, and is not an agent, contractor, or employee of City and shall furnish services in its own manner and method. Further, Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Franchisee in its business operations. Franchisee shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 14.2 FRANCHISE NOT AGENT. Franchisee and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 14.3 WAIVER. The City's waiver of any term, condition, breach or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 14.4 NO ASSIGNMENT. The Franchisee shall not assign or transfer any interest in this Agreement without the express prior written consent and approval of City Council. 14.5 COMPLIANCE WITH LAWS. Franchisee shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 14.6 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 14.7 INTERPRETATION. 14.7.1 AApplicable Law. This Agreement, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed and construed according to the laws of the State of California. 14.7.2 Entire Agreement, This Agreement, including any Exhibits attached hereto and any documents explicitly referenced herein, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes 25 all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 14.7.3 Written Amendment. This Agreement may only be changed by written amendment signed by Franchisee and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Agreement shall be of no force or effect. 14.7.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. 14.7.5 Choice of Forum. The parties hereby agree that this Agreement is to be enforced in accordance with the laws of the State of California, is entered into and is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 Order of Precedence. In case of conflict between the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the order of precedence is as follows: Charter the City of Vernon, the Vernon Municipal Code, the ordinance granting this Franchise, resolutions of the City of Vernon this Agreement, the City's Request for Proposals for Official Police Towing Services, and Franchisee's Response to the City's Request for Proposals for Official Police Towing Services. 14.7.7 Duplicate Originals. There shall be two (2) fully signed copies of this Agreement, each of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement, and its execution of this Agreement has been duly authorized. Section 15. ADDITIONAL ASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Franchisee certifies and represents that, during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "C". 15.2 BUSINESS LICENSES. Franchisee shall obtain, and pay any and all costs associated therewith, any Vernon Business License, which may be required by the Vernon Municipal Code and all permits, and licenses applicable to Franchisee's operations under this Franchise, which are required of Franchisee by any governmental agency. U16 15.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Franchisee's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Agreement and/or is paying only the amounts to which Franchisee is properly entitled under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the City of Vernon. If not, the Franchisee shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personal, salaries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchisee hereby represents warrants and certifies that no member, officer or employee of the Franchisee is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES. Except as otherwise provided in this Agreement, all notices required by this Agreement or by Chapter 4B of the Vernon Municipal Code shall be given by personal service or by deposit in the United States mail, postage pre -paid and return receipt requested, addressed to the parties as follows: To City: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 Copies to: Director of Finance City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: 27 Notice shall be deemed effective on the date personally served or, if mailed, three days the date deposited in the mail. [Signatures Begin on Next Page]. KQ IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a California charter City and California municipal corporation DATED: [FRANCHISEE'S NAME, a [State incorporated in] corporation DATED: By: By: Carlos Fandino, City Administrator Name: Title: ATTEST: By: Name: Maria E. Ayala, City Cleric Title: APPROVED AS TO FORM: Hema Patel, City Attorney 29 EXHIBIT A REQUEST FOR PROPOSALS 30 A N:ff".-x ? FRANCHISEE'S PROPOSAL 31 EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Franchisee certifies and represents that, during the performance of this Agreement, the Franchisee and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Franchisee further certifies that it will not maintain any segregated facilities. B. Franchisee agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Franchisee, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Franchisee agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Franchisee agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. 32 EXHIBIT D LIVING WAGE PROVISIONS Minimum Livina Waaes: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or S1 1.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the agreement of violating employers. 33 AFFIDAVIT OF NON -COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) )SS COUNTY OF LOS ANGELES ) being first duly sworn deposes and says that he/she is (Insert "Sole Owner". 'Partner"_ "President. "Secretary". or other proper title) ([risen name of bidder) who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not, directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of bids/proposals, said bidder: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain from bidding or withdraw his/her bid/proposal; C. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or fix any overhead, profit or cost element of his/her bid/proposal price, or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, or to any individual or group of individuals, except the City of Vernon, or to any person or persons who have a partnership or other financial interest with said bidder in his/her business. 1 certify under penalty of perjury that the above information is correct By: Title: Date: 34 L0 M FRANCHISE TOW FEE PROGRAM PROPOSAL Made To The City of Vernon Police Department Attention: Robert Sousa, Captain 4305 Santa. Fe Avenue Vernon, CA 90058 Made By U.S. Tow, Inc. 2119 East 25th Street Los Angeles, CA 90058 ORIGINAL M FRANCHISE TOW FEE PROGRAM PROPOSAL Matte To The City of Vernon Police Department Attention: Robert Sousa, Captain 4305 Santa Fe Avenue Vernon, CA 90058 Made By U.S. Tow, Inc. 2119 East 25 h Street Los Angeles, CA 90058 COPY I- (Y) voPEs� U.S. TOW, INC. FFICIALPOUCE 2119 E. 251h Street Los An7 Angeles, CA90058 Bus.: (213) 749-; 100 Fax: 213 49-0272 - GARAGE �' 93 November 19, 2018 City of Vernon Police Department Attention: Robert Sousa, Captain 4305 Santa Fe Avenue Vernon, CA 90058 RE: FRANCHISE TOW FEE PROGRAM Dear Captain Sousa: U.S. Tow, Inc. is pleased to submit this proposal for the continuation of Franchise Tow Fee Program services for the City of Vernon Police Department, Competitive Position U.S. Tow, Inc. originated in 1983. The firm has served the Los Angeles Police Department as its Official Police Garage for the Newton Division since 2004. It additionally has served the City of Vernon Police Department as its only Franchise Tow Fee Program provider since 2015. U. S. Tow, Inc. also serves a number of other governmental entities including the City of Los Angeles Department of Transportation, the California Highway Patrol, the Los Angeles County Sheriffs Department and the City of Los Angeles School Police Department. Experience/Management U. S. Tow, Inc. was acquired by Moshe Ben Dayan in 2013. Mr. Ben Dayan assumed the ownership of U. S. Tow with a wealth of previous towing experience. He founded and has operated Classic Tow, Inc. dba Tip Top Tow Service at the same location in Santa Monica for more than 28 years. Tip Top Tow Service is an Official Police Contractor for the Cities of Santa Monica and Beverly Hills. It additionally has long-standing contracts with a number of other governmental entities. -t- City of Vernon Police Department November 19, 2018 Page Two of Four Management Staff The major management staff of U.S. Tow has an average of 18 years of experience in the towing industry. This staff operates the Newton Division OPG, the Franchise Tow Fee Program of the City of Vernon Police Department and the other elements of the firm's business with professionalism and integrity and if again selected to be the contractor stands ready to continue to provide excellent service to the City of Vernon Police Department. Additionally, the hiring and training procedures utilized by U.S. Tow are stringent, and we consider it our utmost responsibility to continue to enforce these procedures in the future. Site U.S. Tow continues to have the distinct advantage of an existing site located at 2119 East 25t' Street, Los Angeles which meets all current zoning regulations. This site is located directly across 25th Street from the northern boundary of the City of Vernon, thereby providing us with immediate access to Vernon. U.S. Tow also continues to have a facility which provides a modern, clean, safe and professional environment. The U.S. Tow site consists of approximately 4.0 acres of screened, secured, lighted, signed and cemented area for the impounding and storage of vehicles and approximately 12,600 square feet of enclosed building area for evidence hold, ancillary storage, administration and lien sale auction of vehicles. Tow Vehicles In an effort to serve all of our clients in a timely and effective manner, we are continuously mindful with respect to maintaining a strong, contemporary fleet of tow vehicles. U.S. Tow currently has a fleet of eight units including six flatbeds and two wheel-liNstandard duty trucks. We additionally have three heavy duty trucks and one heavy duty trailer. This fleet, which we continuously service and upgrade, will allow us to continue to maintain call times well under the 20-minute requirement of the City of Vernon Police Department if we are again selected to be the Department's contractor. -H- rn M City of Vernon Police Department November 19, 2018 Page Three of Four Employees U.S. Tow, Inc. has a total of 20 employees including thirteen tow drivers and seven office personnel. Throughout the years we have developed a staff of highly trained and motivated employees, many of whom have been with the firm for years. Our office employees have considerable experience in all facets of towing and storage including dispatch, computer programming and operation, accounting, monthly report preparation, evidence hold operation, lien sales and customer interaction. Our drivers are particularly highly trained with the ability to complete all tow tasks in a damage free and expeditious manner. Customer Service The employees of U.S. Tow are trained to develop awareness of customer problems, to establish empathy for customers, to understand and adapt to the diverse ethnicities and cultures of customers and to treat customers with respect and their vehicles and personal belongings with professionalism. Each office staff person and driver at U.S. Tow understands that difficult situations arise and our "team" philosophy of operation allows us to proactively handle these situations before they become problematic. Management Moshe Ben Dayan, the President/CEO of U.S. Tow, has been actively involved in the tow industry since 1989 at which time he established Classic Tow, Inc. dba Tip Top Tow Service which he has operated continuously in Santa Monica since that time. It is significant that Mr. Ben Dayan made the operation of Tip Top Tow Service his one and only business commitment until his purchase of U. S. Tow in 2013. Currently, Mr. Ben Dayan devotes his time almost exclusively to U.S. Tow and its clients including the City of Vernon Police Department. City of Vernon Police Department November 19, 2018 Page Four of Four Authorized Contact The person authorized to represent U.S. Tow, Inc. in negotiations with the City of Vernon Police Department is Moshe Ben Dayan, President/CEO, U.S. Tow, Inc. Mr. Ben Dayan additionally is authorized to execute the agreement with the City of Vernon on behalf of U.S. Tow and is the contact point for any questions or concerns relative to this Proposal. This Proposal will remain valid for a period of not less than ninety (90) days from the submittal date of November 19, 2018. Legal Business Status U.S. Tow, Inc. is an "S" corporation, Federal Tax ID#90-1014831. The corporation was founded in 1983. Moshe Ben Dayan is President/CEO of the corporation and Stephanie McColgan is Vice President and Secretary/Treasurer of the corporation. The address of U.S. Tow, Inc. is 2119 East 25'h Street, Los Angeles, CA 90058; the telephone number is (323) 870-7100; the FAX number is (213) 749-0272; and the e-mail address is moshe _,ustow.com. U.S. Tow currently meets all Federal, State and City requirements and there are no changes necessary nor requirements unmet for us to continue to operate the Franchise Tow Fee Program for the City of Vernon Police Department. Our site is operative, our office functional, our required insurances in place and our economic viability and professional commitment unwavering. We would very much like to again be selected to work with you and we strongly believe that we are more than capable of performing all services as your single provider. Thank you for your consideration of U.S. Tow for this contract. h Very truly fours, C ZOSAen Stephanie McColgan President/CEO Vice President and Secretary/Treasurer -iv- INTRODUCTION U.S. Tow, Inc. has served as the Official Police Garage for the Newton Division of the Los Angeles Police Department for the past 13 years. In this capacity, we have been responsible for towing and storage services for the LAPD, the Department of Transportation and other City of Los Angeles departments. We have additionally served the California Highway Patrol and the Los Angeles County Sheriff s Department. During those years, we have developed strong and impeccable guidelines for the conduct of our business. We also have developed strong ties to the community which surrounds our facility and of which we consider ourselves a part. U.S. Tow, Inc. also has served as the Franchise Tow Fee Program contractor for the City of Vernon Police Department for the past three years. As such, we view ourselves as having a specific contractual obligation to Vernon and it is twofold: (1) every single day of the year and every single hour of each day we must provide an organized, timely response to the officers of the Vernon Police Department to pick up and tow vehicles and there can be no lapse in this performance; and (2) at the time that a vehicle is released to its owner, we must provide careful, courteous and empathetic service throughout the release. It is important to note that, in the three years that we have served the Vernon Police Department, we have never had a motorist complaint. We must additionally create accurate and complete paperwork as part of the entire process. It is thus significant to note that, in the three years that we have served the Vernon Police Department, the City has consistently received monthly reports/franchise fees in a timely manner. For those vehicles that are not released and must instead flow through the lien process, a completely different set of rules governs. This process also requires stringent controls and strict compliance with the law. We are dedicated to providing service to the City of Vernon while, at the same time, maintaining strong standards of quality and safety for our customers. And, we strongly believe that we can continue to serve the Vernon Police Department as a single provider. U. S. Tow has through the years of its operation developed strong training processes for every one of our staff persons. We consider these to be the core of our association with the LAPD, City of Vernon Police Department, DOT and other City agencies as well as our private clients. We continuously leave no detail of our employee training to chance, making every effort to provide our staff with training that is comprehensive and meaningful. As a result, we are able to keep customer complaints to a minimum. U. S. Tow has always supported involvement in the community in which we work. However, since his acquisition of the business in 2013, Moshe Ben Dayan has made a particular effort to increase the community involvement of the firm. Mr. Ben Dayan understands that investment in the community in which he works represents an investment in U.S. Tow itself. N As you evaluate the possibility of again selecting U.S. Tow as the City of Vernon's Franchise Tow contractor, we want you to understand that we at U.S. Tow will continue to work very hard every day to provide the very best service to the City of Vernon, the members of Vernon's Police Force and the customers associated with those towing and storage operations. We bring to this submission our extensive past OPG experience, our three years of service as the City of Vernon Police Department's Franchise Tow contractor, Mr. Ben Dayan's expertise and the professional qualifications and dedication of our staff. As you know, we do not require a site; we have one. We do not require a functioning office with all of the latest computer and security equipment; we have it. We do not require tow equipment; we have the best. We understand that the Request For Proposal for the letting of the Franchise Tow Fee Program contract is competitive, but we ask that you consider our past experience with the LAPD and the City of Vernon, our long-term operation and staying power, our relationship with the community and our commitment to strong performance at all times and in all circumstances. c10 GENERAL SCOPE OF WORK/ WORK PLAN FACILITY Physical Location The facility of U.S. Tow, Inc. is located at 2119 East 25t', Street, directly across 25t' Street from the northern boundary of the City of Vernon. This proximity provides us with a distinct advantage relative to the provision of towing and storage services to the City of Vernon Police Department, to customers who must redeem vehicles and for evidence hold purposes. U.S. Tow's facility is a point of great pride for its owner and management. Our facility consists of state-of-the-art construction and contains clean, well organized, modem evidence hold, ancillary storage, dispatch and office space. It is situated on a fully concreted lot which is meticulously maintained. We pride ourselves on the image that is conveyed to the governmental agencies with which we are involved including the City of Vernon, the public that we serve and the surrounding community and this image is carefully monitored. Our location complies with all City of Los Angeles zoning requirements for a towing operation and auto park, with a zoning designation of M3-1, and no Conditional Use Permit is required. We believe that U.S. Tow sets the bar for the way in which a towing operation facility should appear. Our property contains 174,240 square feet (4.0 acres) with aluminum and steel fencing which is eight feet in height and is topped with concertina wire. The yard has concrete flooring and contains capacity for 750 vehicles. Because of this large capacity, we are able to store impounded vehicles for as long as is deemed necessary by the Police agency involved including the City of Vernon Police Department. The yard is very well lighted and there are 50 cameras providing 24-hour video surveillance (archived for a minimum of 180 days). Our storage yard is immediately adjacent to our business office and is attended at all times by our staff members. U. S. Tow has personnel on -site 24 hours per day 365 days per year and we are open to the public between 7:00 a.m. and 7:00 p.m. seven days per week 365 days per year. We are also always available to accommodate special City events. Our property has been leased to U.S. Tow on a long-term basis. Our property lease was renegotiated shortly after Moshe Ben Dayan acquired the company in 2013. The initial lease term of five years ran from September, 2013 to September, 2018. We now have begun the first of two options of five years each, with the lease ultimately terminating in 2028. 3 Ell In addition to our primary facility, U.S. Tow has a secondary lot located at 1615 East Adams Boulevard, a distance of .8 miles. This site contains two acres of land and a small supply office and has a capacity of approximately 200 vehicles of ancillary storage. The site is well secured with lighting, 12-foot high solid aluminum fencing, security cameras and security beams with sirens. Administrative Facility Our facility contains approximately 12,600 total square feet of building area and houses four separate personnel offices, dispatch, accounting, a filing room for auction records and other files, a lien sale area, an IT area, a classroom/break room for company and community use, an Evidence Hold Area and ancillary storage space. Evidence Hold Area This 2,600-square-foot secure area has 24-hour surveillance and limited access with specific rules for entering and exiting. It is equipped with two roll -up doors for unobstructed access and has a capacity of 10 vehicles. There is an additional secondary Evidence Hold Area which is protected by one metal roll -up door and a bullet proof ballistic glass pedestrian door as well as an Evidence Property Room. Our Evidence Hold Area has a specifically designated inspection area which is accessible only to designated U.S. Tow personnel and Police officials. Indoor Workshop Our facility has an indoor workshop for the storage of equipment such as air compressors and tine changing machines. TOW EQUIPMENT The staff and management of U.S. Tow, Inc. have many combined years of experience with various types of tow equipment. This experience has resulted in the knowledge that deploying the correct equipment is critical to the efficiency and success of Official Police Tow operation. All of our tow equipment is equipped as provided in the California Vehicle Code. Another very important element for our operation is that our tow drivers have the best and most appropriate equipment to complete tasks in a damage free and expeditious manner. As the members of the Vernon Police Department well know, the area in which we are located has a diverse impound environment. Vehicles often are stripped of major components such as wheels, engines and body panels and sometimes are burned and/or wrecked. At the other end of the spectrum, we handle custom and high value vehicles. Our equipment, including flatbeds and wheel-lift/standard duty trucks as well as heavy duty equipment including trucks and a trailer, is engineered to accommodate these diverse situations in a timely and efficient manner. 4 Our wheel-lift/standard duty trucks have been engineered and manufactured to be efficient and fast, thereby providing for the immediate removal of vehicles from major thoroughfares. With these trucks, peak hour tow away zones can be cleared expeditiously to relieve traffic congestion and provide the public with clear paths to their destinations during heavy traffic periods while allowing City personnel to respond to other duties without unnecessary delays. With the utilization of experienced and trained personnel, an impounded vehicle can be removed in just minutes by a wheel-lift/standard duty truck. Wheel -lifts additionally provide damage free towing by lifting vehicles by only their tires. Body panels, front ends, bumpers and under carriages are not touched by the towing unit, thereby ensuring damage free handling of towed vehicles. Wheel- lift/standard duty trucks also allow efficient towing from parking garages and towing from off -road areas. Our flatbed carriers have been selected to provide efficient and damage free vehicle removal and transport. Vehicles with extensive damage, missing wheels or which are heavily burned are suited for removal by flatbed. Flatbeds also are well suited to hybrid, electric, exotic and custom vehicles. In addition., bulk items such as cargo from damaged vehicles, large or heavy vehicle components from "chop shops," motorcycles or stolen vehicles can be safely loaded onto flatbeds to provide damage free transport with minimal loading time. Flatbed carriers also provide the capability to transport two vehicles at the same time, thus allowing us to respond quickly and efficiently when requests for service are made in proximate geographic locations or when requests are made in a narrow time frame. Our choice of Kenworth and Peterbilt chasses is based upon their capability to handle two vehicles at once and/or to transport heavy and/or oddly shaped cargo safely. Our heavy duty trucks, with their adjustable booms and five - ton lifting capacity, and our heavy duty trailer are available for the heaviest requirements including the towing of large and oversized vehicles, and again attest to our well- rounded, complete towing capability. Our drivers are highly trained to operate all of our tow units. In particular, flatbed units require highly skilled drivers with a thorough knowledge of the machinery involved. They also are trained to unlock locked vehicles, a frequent request from our Police clients. Our drivers are trained to operate units with the priority of safety to themselves and to the public they serve. Continuing education enhances their knowledge base and ability to perform the tasks involved. If selected to again be the Franchise Tow Fee Program contractor for the City of Vernon Police Department, we will continue our process of filing with the Department the name, address, date of birth, driver's license number and all other information required relative to each of our drivers. We will also notify the Department of any driver no longer employed by us as well as the identity of any driver whose license is suspended. Our training procedures are in writing and are available for perusal by the Vernon Police Department at any time. U. S. Tow, Inc. also is a member in good standing of the California Department of Motor Vehicles Pull Program. Within our facility, the use of forklifts with special attachments provide efficient and damage free vehicle movement and/or vehicle release. Our forklifts are powered by liquid propane, providing low emission levels and reduced carbon monoxide release. U. S. Tow constantly monitors trends in tow equipment, vehicle impounds and safety practices. It is through this due diligence that we are able to provide our clients and the motoring public with the highest level of safety and service. U.S. Tow has a total of eight tow units, including two wheel -lifts and six flatbeds. We additionally have three heavy duty trucks and one heavy duty trailer. In addition, U.S. Tow has access to the 23 trucks of Tip Top Tow Service in case of a large emergency operation or a disaster operation. A listing of the tow units of U.S. Tow is provided on the following page. TWO -RAY RADIO COMMUNICATION EQUIPMENT U.S. Tow, Inc. uses Kenwood hardware for its two-way radio system. The system employs mountain -top repeaters to maximize coverage area and provide reliable, quality communication, thus enabling instant access to our fleet and personnel. Our two-way radio communication equipment also sends and receives Police tow requests between dispatch and our tow units on a first priority basis. Through its use, all of our clients benefit from faster service, increased efficiency, quick schedule or task changing and higher productivity. The City of Vernon Police Department has for the past three years been the recipient of the quality communication deriving from this system. DISPATCH COMPONENTS U.S. Tow, Inc. utilizes an efficient dispatch system which features three components — proper tools, adequate staffing and management oversight. Our use of GPS vehicle tracking and computerized dispatch is integrated to maintain the highest level of service. Our system includes time stamping of all requests received as well as notation of the exact time the request is assigned to a tow unit, the time the tow unit arrives at the scene of the request and the time that the tow unit returns to the U.S. Tow facility. Our system also assigns a number to each tow request for tracking purposes. Our dispatch terminals are dedicated to the function of dispatch only. Our radio communications equipment sends and receives Police tow requests between dispatch and the tow units on a "first priority" basis. The dispatchers of U.S. Tow are trained in the effective use of radio equipment in order to maximize efficiency. The dispatch office is equipped with a telephone system capable of receiving tow requests on a "first priority" basis and dedicated telephone lines ensure "first priority" to "Police" calls. Dispatch is a dedicated function on a 24-hour per day, seven-day per week, 365-day per year basis. Dispatchers are available to release vehicles seven days per week between 7 a.m. and 7 p.m. and for a minimum period of four hours after any special event. Every member of our office staff is cross -trained in order to provide an excellent service standard in the execution of dispatch duties. 1.1 TOW UNITS U.S. Tow, Inc. owns 13 tow units and one trailer, as follows: I Weight Unit T Year Make VIN 19 i Flatbed 2005 KT-300 h V26,000 2NKMHZ6X05M098216 I i 20 Flatbed 2015 Peterbilt 26,000 2NPNIB16X0FM298418 22 Wheel -lift 2005 Ford F-550 19,000 1FDAF56P55EB89089 27 Flatbed 2006 i Kenworth 26,000 2NKM1Z6X56M154250 T-300 28 Flatbed 2016 -t-- i Peterbilt 26,000 2NP2HM6XXGM347211 T337 30 Wheel -lift 017 t Dodge 19,700 3C7WRMBL1HG572607 5500 33 Flatbed 2017 Kenworth 26,000 2NKHHM6X9HM133554 T-270 34 Flatbed ' 2017 Kenworth 26,000 2NKUHM6X4HM133560 T-270 35 Flatbed 2018 Kenworth 26,000 2NKH)=IlVI6XXJM181201 T-270 25 Wrecker 2014 Peterbilt 54,000 1NPWL49XOEDI87127 16 Wrecker 2015 Kenworth 35,000 2NKHI-1MZXXFM439593 P81 Tractor 2007 Freightliner 80,000 1FUJA6CK47LX17262 Trailer 2015 Landoll 97,000 ILH440VHIF1021834 82 Tractor 2015 Peterbilt 52,000 IXPCDP9X4FD290009 377 INFORMATION TECHNOLOGY KNOWLEDGE The computer system utilized by U.S. Tow is the Towing Operations Systems (TOPS) system. It is used for both dispatch and accounting. The program utilizes functions which provide dispatch, vehicle inventory search, property removal with receipt, inspection of a vehicle with receipt, evidentiary hold area search and auditing, lien processing including the removal of liened vehicles, VIN verification of make and model, cash on delivery options and private property impound tracking. Not all employees are granted access to sensitive information contained in the tow Program. Only management and ownership can access all records pertaining to any particular vehicle. Any changes made in the computer record concerning a vehicle are tracked through an exception report. The exception report is checked every morning by management to ensure that no unauthorized changes have been made to any computer record. The program also has a fleet function by which U.S. Tow can maintain fleet data as well as an accounting function for maintenance of accounts payable and accounts receivable. TOPS also has reporting functions that allow us to keep daily, weekly and monthly internal reports. Our accounting department additionally uses QuickBooks to maintain a checks and balances system for all accounts. QuickBooks provides U. S. Tow with a controlled method by which to track accounts, print statements and maintain a ledger for monies that flow in and out of the company. QuickBooks Pro is used to pay bills, record payroll, reconcile cash and keep track of vendor and employee ledgers and advances. A daily back-up of our computer system is completed and stored at a remote location. An outside firm monitors this back-up on a daily basis. We additionally have software support readily available for our tow program. All files are backed up several times per day and we have a working generator in case of a significant power failure. Our computer system, software and tow program are set up to generate franchise fees (which are placed in a separate account) and impound information and the safeguards are in place to monitor these functions at all times. Our dispatch, tow lot management, impound and franchise fee software has a long history of use within U.S. Tow. Our hardware has been carefully selected to provide both reliability and ease of use. Computer work stations, servers, telecommunications and video surveillance have been chosen and implemented to provide the highest levels of security, accuracy, accountability and service. ELI VEHICLE IMPOUND INFORMATION CENTER VIIC Reports The V11C system provides our law enforcement customers including the City of Vernon Police Department with real-time reconciliation and auditing of remitted fees through a computer system that cannot be altered. This system provides very readable PDF reports or reports that can be downloaded into a CSV file for the Police Department's use in daily oversight. VIIC system features include: • Detailed monthly activity reports which show all impound and storage activity; • Vehicle reports which show vehicle date in and date out; • Vehicles by "hold" status; • Gross revenue remittance reports; and • Vehicle release fee remittance reports. Law Enforcement Access And Information The VIIC system allows authorized personnel to quickly and accurately track vehicles, thus ensuring the proper collection of fees for towed and impounded vehicles. Through secured Internet access (btW-//www.opgJaviic._com) or by stand-alone computers located within authorized law enforcement facilities such as the Vernon Police Department, users can obtain immediate access to information pertaining to impounded vehicles 24 hours per day 7 days per week. This information consists of several components including vehicle inventories by vehicle make, license plate VIN and original location of the impound. Public Access And Information Although the information available to law enforcement agencies such as the Vernon Police Department is more comprehensive than that available to the general public, the VIIC system also provides the public with valuable real-time information which facilitates the location of impounded vehicles. With the VIIC system, the public can determine the location of vehicles through Internet access. Required search information includes the license plate number and V1N. Once the vehicle is located, the VIIC system provides the U. S. Tow name and address, directions to our facility, release hours, fees incurred and a simple matrix by which fees can be calculated. 0 MONTHLY REPORTS If again selected to be the Franchise Tow Fee Program contractor for the City of Vernon Police Department, U.S. Tow will continue to submit a monthly report to the Captain of Police which, as per the City of Vernon requirement, includes the following: *Total Police impounds. *Number of times dispatched by the Vernon Police Department. *Number of calls resulting in impounds. *Number of vehicles sold on lien sale under authority of Section 3072 Civil Code and reporting said lien sales as per authority of Section 22705 CVC. *Names and addresses of buyers and description of vehicles when sold. *Number of calls answered in which time beyond one hour was required. EVIDENCE HOLD VEHICLES U.S. Tow, Inc. has 13 years of experience as an OPG for the City of Los Angeles Police Department and thus of dealing with vehicles and vehicle -related components that are on "hold" for evidence or require processing by a crime lab unit. Moshe Ben Dayan, the owner of U. S. Tow, has 28 years of experience in the handling of evidentiary holds and maintaining the integrity of the "chain of custody" in conjunction with his other public agency towing operations through his firm Classic Tow, Inc. dba Tip Top Tow Service. Over the past three years U.S. Tow also has also provided evidence hold services to the Vernon Police Department. All of our personnel are acutely aware of the importance of handling vehicles with evidence holds. A set of specific steps are consistently employed in order to ensure that vehicles are not mishandled and that the "chain of custody" is maintained at all times. All of our personnel receive training on how to deal with vehicles from the moment a call is generated until the final disposition of the vehicle occurs. • Dispatchers advise drivers of a request for service for a vehicle that requires special handling due to evidence or criminal lab processing. • Drivers request from the impounding officer or the officer in charge at the scene of the impound whether any special handling is required so as not to touch surfaces of a vehicle, not to enter a vehicle, not to disturb possible material under or on a vehicle or any other special requests dealing with the handling of the vehicle. • Once evidence hold vehicles arrive at the storage yard, drivers sign the Evidence Log Book noting the time, date, year, make, model, color, VIN, license and names of any persons who will enter the Evidence Hold Area in conjunction with the vehicle. 1.0 Following placement of a vehicle or components of a vehicle within the Evidence Hold Area and the securing of the Hold Area, drivers return to the office to notate the date and time of completion of the vehicle and/or vehicle components placement. • Drivers receive instruction on the handling of vehicles utilizing our equipment so that the vehicle can be transported without disturbing fingerprints and/or other physical evidence contained on or inside it. As vehicles arrive at our location, they are entered into our vehicle inventory database and the Evidence Log Book. In order to verify the time of entry, U.S. Tow utilizes a time stamp along with the manual entry in the Evidence Log Book. Within the vehicle database, a special "hold" is placed and this creates a flag which must be specifically acknowledged prior to any change including an authorized release by the agency placing the original hold on the vehicle such as the Vernon Police Department. Often vehicles get released from "hold" status prior to the release of the vehicle to the owner or interested party. Vehicles that are released from a "hold" status prior to removal by the owner or interested party have specific notes entered in the vehicle database as well as the agency, name, ID, date and time that the vehicle's "hold" status was removed. Associated paperwork is additionally attached to the vehicle record (CHP180). Once the vehicle has had the "hold" released, it is removed from the Evidence Hold Area and placed in the general vehicle inventory. U.S. Tow has a segregated, completely enclosed evidence warehouse with a storage capacity of a minimum of 10 evidentiary/criminalistic hold vehicles. U.S. Tow also maintains an area that can be converted to a temporary secure hold area in the event of a large scale crime involving many vehicles or bulk items. A minimum of six additional vehicles can be secured in this area. Evidence Hold Area entry is limited to OPG employees and concerned law enforcement officials such as members of the Vernon Police Department and video surveillance is used to enhance the security of vehicles within the Evidence Hold Area. An electronic record of the person, time, date and duration of access is maintained. This is accomplished through entry system technology which features a magnetic lock system with unique entry key fob assigned only to management. The supplier of our entry control and electronic entry and exit recordkeeping is Axis. The Axis system features electronic recording and physical hardware that is secure and that provides access Iimited to management in order to ensure that the "chain of custody" is not compromised. All entries are also noted in the Evidence Log Book. The elements of recording and recordkeeping of entry to our Evidence Hold Area allow management and law enforcement to validate all access. The area has large, clear posting prohibiting entry. The Evidence Hold Area features ample lighting to aid detectives and/or evidence technicians in the processing of vehicles. U.S. Tow also has a vehicle lift available on -site to aid investigators. Through all of these mechanisms, we ensure that only vehicles or vehicle parts that are held for evidence or criminalistic hold are stored within the Evidence Hold Area. ill N L0 With respect to the City of Vernon Police Department, if U.S. Tow is again selected to be the Franchise Tow Fee Program contractor, notification will be provided to the Police Captain or his/her designee of vehicles with a "hold" that are stored in excess of 72 hours. Asper the City of Vernon Police Department requirement, "holds" will expire 10 calendar days after the date of a tow unless otherwise extended by a Police Department employee. LIEN SALE EXPERIENCE U.S. Tow, Inc. files for vehicle liens following California Civil Code Sections 3068.1, 3071, 3072 and 3074. Ultimately, not all liens started end in disposal through public auction. Many vehicles are redeemed by registered owners, legal owners or authorized interested parties, thus accomplishing the intended purpose of notification followed by redemption. In the event that a vehicle is not redeemed, a sale is conducted to satisfy the outstanding lien and avoid the stockpiling of vehicles. Vehicle disposal through public auction has been performed for more than 13 years by U.S. Tow and more than 23 years by Moshe Ben Dayan via other towing operations that he owns and operates. U.S. Tow sells vehicles in a fair and impartial manner to the highest bidder. Our sale list is posted in public view at our facility a minimum of 10 days prior to the sale date, and vehicles are available for inspection one -and one-half hours prior to the sale time on the sale date. We continually strive to improve levels of customer service to members of the public who attend our weekly auto auctions. U.S. Tow is bound by California Civil Codes relating to the disposal of impounded vehicles. U. S. Tow also stringently follows the fee structure outlined in the California Civil Codes that pertain to the processing of vehicle liens. If again selected to be the Franchise Tow Fee Program contractor to the Vernon Police Department, we will continue to always be available to review any other elements of our lien sale operation requested by the Police Department. CUSTOMER SERVICE U.S. Tow takes extreme pride in its exceptional customer service. The impound process is by its very nature a stress producing experience and we attempt in every possible way to expedite the process and make it as comfortable as possible. Registered owners redeeming vehicles can expect to deal with employees who are well trained, courteous and professional and with a facility which is clean, modern and secure and which provides them with comfort in the event that they need to wait for appropriate paperwork, acceptable form of payment or a towing service for a disabled vehicle in order to complete the release process. U.S. Tow completely understands the responsibility for the proper release of vehicles to parties who have a legal right to take possession and we take all necessary precautions through established procedures throughout the release process. Our personnel are trained to verify that a proper release has been issued by us or by the relevant governmental impounding agency including the Vernon Police Department prior to the release of vehicles that have either a statutory or evidence hold. A dedicated 12 (y) L0 computer system is available to check the "scofflaw" status of vehicles prior to their release. Personal property is released to identified, authorized persons and is inventoried and notated on the vehicle record. Our staff also is trained to answer general questions regarding the disposition of vehicles and lien sale auction information. Computer equipment with access to our vehicle inventory software is available to handle high - volume release situations. COMMUNITY SUPPORT AND INVOLVEMENT U.S. Tow has since its inception and continues to understand the importance of support of and involvement in the local community. Even though we are physically located in an industrialized portion of the City of Los Angeles as the Vernon Police Department well understands, we are very aware that there is a significant community of residents surrounding our site. As such, it has been our continuing philosophy of operation to identify and support portions of the community and community projects in need of financial sponsorship and the donation of other assets. We additionally have a well appointed classroom/break room at our facility which we offer for community use. 13 L0 U.S. TOW, INC. TOW RATESIFEES Towing Stora Light Duty $160.00 $50.00 under 10,000 GVWR Motorcycle $160.00 $25.00 Medium Duty $271.00 $60.00 Heavy Duty $350.00 $75.00 Low Boy $350.00 $75.00 Super Heavy Duty/ $550.00 $75.00 Wrecker I Forklift $ 125.00 Service Call $80.00 Bulk Item $15.00 • Towing/recovery work/transport is assessed portal to portal. There is no fee variation for night tows. • Storage/impoundment rates are the same for day and night. Our release hours are 7:00 a.m. — 7:00 p.m. After hours fees apply and are half the tow. • Towing rates are subject to 30-minute increase increments after the first hour. • Storage for less than 24 hours is charged as one day. After 24 hours, storage is charged per calendar day. • Service calls are based on a one-half hourly tow rate. • Vehicles not redeemed within 72 hours are subject to lien sale/notice fees of $70.00 - $100.00. • All City vehicles under I ton and towed within 10 miles are free. • All City vehicles under 1 ton tire changes are free within 10 miles. 14 L0 L0 ABILITY OF U.S. TOW, INC. TO PERFORM THE NECESSARY SERVICES U.S. Tow, Inc. was originally founded as a California "S" corporation in 1983. The company was purchased by Moshe Ben Dayan in 2013. Mr. Ben Dayan is the sole Owner/President/CEO and owns 100% of the corporation. U.S. Tow, Inc. has a primary location at 2119 East 25'l Street, Los Angeles, and a secondary storage location at 1615 East Adams Boulevard, Los Angeles. These facilities have been discussed previously in this Proposal under General Scope of Work/Work Plan. The firm has a total of 25 employees. STATE AND CITY LICENSES U.S. Tow, Inc. is licensed to operate in the State of California, the City of Los Angeles and the City of Vernon. Our licenses include City of Los Angeles Parking Occupancy Tax M, City of Los Angeles Professions/Occupations; City of Los Angeles Police Commission Permit for Towing Operation; City of Los Angeles Police Commission Permit for Master Auto Park; City of;.,os Angeles Police Commission Permit for Auto Park; State of California Department of Motor Vehicles Motor Carrier Permit; and City of Vernon Business License. EXPERIENCE OPERATING A COMPLEX BUSINESS As stated above, Moshe Ben Dayan purchased U.S. Tow, Inc. in 2013. Mr. Ben Dayan came to the purchase with a strong understanding of the highly regulated and complex operations of an Official Police Garage/Police Tow. Since his purchase of U.S. Tow, Mr, Ben Dayan has been working to improve the already strong operations and level of service of U.S. Tow's overall operations. Based upon commendations that he has received from members of the Los Angeles Police Department and other U.S. Tow clients, he appears to be succeeding. Since 2015 U.S. Tow has been the Franchise Tow Fee Program provider for the City of Vernon Police Department. In that regard, we have performed as the sole provider of towing and storage services to the Vernon Police Department. During the course of the contract, we have met the requirements of the Vernon Police Department including more than sufficient and qualified office, dispatch and driver personnel; well equipped and diverse tow trucks with both light duty and heavy duty capability, an excellent primary facility which is located very proximate to the City of Vernon boundary; and careful, diligent management providing constant oversight. In addition to U.S. Tow, Mr. Ben Dayan owns and operates Classic Tow, Inc. dba Tip Top Tow Service. He founded and has owned and operated this company since 1989 and it has been his full-time and only business involvement until his purchase of U.S. Tow. 15 L0 Tip Top Tow Service is the Official Police Tow for both the Cities of Santa Monica and Beverly Hills. The firm has worked in this capacity for Santa Monica since 1993 and for Beverly Hills since 2012. Service to these entities is highly regulated and involves impounding of vehicles including owner requests, statutory holds and evidence holds as well as the roadside servicing of City -owned vehicles and traffic accident assistance. Mr. Ben Dayan has additionally participated in the California Highway Patrol's (CHP) rotation Tow Service Agreement (TSA) since 1992, providing general towing and impound and storage services. Additionally, Mr. Ben Dayan is a Freeway Service Patrol provider for the Los Angeles County Metropolitan Transportation Authority (LACMTA), providing freeway roadside services to stranded motorists since 2005. The contracts let by this Agency are highly regulated with scheduled and random inspections of tow truck units and facilities conducted by LACMTA itself as well as by the State of California Department of Transportation (Caltrans) and a special unit of the CHP known as "David Units." The level of regulation imposed by the CEP's David Units is unequaled in the towing industry, with strict enforcement of rules and regulations as well as of drivers and trucks in the field through monitoring by GPS, Caltrans and the CEP itself. The contracts of LACMTA mandate that detail be paid and rules adhered to relative to a multitude of policies and procedures and that standards be strictly enforced. Moshe Ben Dayan and Tip Top Tow Service have never had a contract fail to renew due to substandard service or violation of any rules and/or regulations. The successful operation of a tow business is complex, with many areas of responsibility. We are responsible 24 hours per day 365 days per year for dealing with the vehicles and personal possessions of many people, some of whom are angry about having been towed in the first place, distraught over damage to their vehicle or who are dealing with the consequences of having a family member or friend injured in an automobile accident. We are responsible 24 hours per day 365 days per year for dealing with law enforcement and the complexities of evidentiary holds, constantly being attentive to the issues involved in the potential contamination of important evidence. We are responsible for conducting lien sales with careful attention to the legalities of this procedure such that we do not err either on our own part or for the interests of the customer. We are responsible to our employees for the creation of a work environment that is comfortable, clean and conducive to minimizing the stress of a business which requires proficiency in taking calls, dispatching drivers accurately and quickly and performing tow services in an efficient, orderly and courteous manner. We are responsible to the many vendors with whom we do business including insurance providers and equipment and parts providers and we must be vigilant at all times regarding the licenses and permits that we hold. And, we are responsible to the community to maintain a top-notch facility which is environmentally conscious with minimal noise and pollution and to participate in community events and sponsorships. 16 ti L0 CAPABILITY AND EXPERIENCE OF KEY PERSONNEL MANAGEMENT Moshe Ben Dayan, Owner/President/CEO. Moshe Ben Dayan, Owner/President/CEO of U. S. Tow, Inc., as over the past three years of our service to the City of Vernon Police Department, will continue to manage all aspects of our contract for the Franchise Tow Fee Program. A detailed description of Mr. Ben Dayan's responsibilities is presented in Exhibit B attached to this Proposal. The resume of Mr. Ben Dayan also is included in Exhibit B. Mohammed Jaweed, CFO. Mohammed Jaweed, as over the past three years of our service to the City of Vernon Police Department, will continue to be responsible for the management of all financial and accounting functions as well as all bookkeeping functions for our contract for the Franchise Tow Fee Program. A detailed description of Mr. Jaweed's responsibilities is presented in Exhibit B attached to this Proposal. The resume of Mr. Jaweed also is included in Exhibit B. Richard L. Kettering H, General Manager. Richard Kettering, as over the past three years of our service to the City of Vernon Police Department, will continue to oversee the daily operations associated with our contract for the Franchise Tow Fee Program. A detailed description of Mr. Kettering's responsibilities is presented in Exhibit B attached to this Proposal. The resume of Mr. Kettering also is included in Exhibit B. Stephanie McColgan, Assistant Manager. Stephanie McColgan, as over the past three years of our service to the City of Vernon Police Department, will continue to assist the General Manager with overflow business matters associated with the company, banking and other financial matters and customer relations matters. A detailed description of Ms. McColgan's responsibilities is presented in Exhibit B attached to this Proposal. The resume of Ms. McColgan also is included in Exhibit B. ADMINISTRATIVE STAFF The administrative staff of U.S. Tow, Inc. is carefully trained and is knowledgable in the following areas related to company operations: computer software; dispatch; impound reporting; vehicle release procedures; vehicle property removal procedures; statutory hold vehicle release procedures; evidence%riminalistic hold vehicle procedures; lien sale procedures and fees; two-way radio use; telephone system and customer service techniques and procedures; criminal activity reporting; and the prioritization of calls for service. The administrative staff of U.S. Tow also receive continuous training in such aspects of company operations as dealing with hostile people and developing solutions to hostile situations; making effective decisions and implementing those decisions; understanding and adapting to the diverse ethnicities and cultures of customers; and establishing empathy for customers. �7 Tow DRIVER STAFF The tow driver staff of U.S. Tow, Inc. is carefully trained and is knowledgable in the following areas related to its work: highway safety; towing techniques; rollover and recovery techniques; laws pertaining to operation of tow trucks; customer service; automotive lockouts; and tow truck maintenance. Our tow truck drivers also receive continuous training in the following areas: computer software; impound report reading and understanding; vehicle codes; care and custody of vehicles; forklift operation; vehicle release procedures; vehicle property removal procedures; vehicle inspection procedures; verification of proper release of evidence hold vehicles; verification of proper release of statutory hold vehicles; proper handling of evidencelcriminalistic hold vehicles; proper placement and spacing of vehicles; criminal activity reporting; vehicle identification (license plate and VIN); prevention of heat stress, dehydration, exhaustion, stroke and related problems; battery safety; prevention of blood borne pathogens; fire extinguisher use; back injury prevention; and eye protection. All drivers must hold and maintain Level 1 Certification from the California Tow Truck Association. A Staff Flow Chart for U.S. Tow, Inc. is provided on the following page. lu rn U.S. Tow, Inc. Staff Flow Chart Moshe Ben Dayan President/CEO Mohammed! Jaweed CFO Richard Kettering General Manager Stephanie McColgan Luis Cruz Francisco Verdugo Office Manager Driver Manager Yard Manager/Driver Francisco Cardenas Head Dispatcher Alyssa Round Dispatcher Ernie Gonzalez Dispatcher Vicky Reyes Dispatcher Lavette Hatchett Dispatcher Filiberto Hernandez Driver Armando Valenzueia Driver Jonathan Zetina Driver Raul Marroquin Driver Carlos Reyes Driver Brian Chacon Driver Julian Hernandez Driver Richard Quintero Driver David Riley Driver Terrell Taylor Driver ,g a Justin White Yardman Walter Ruckwardt Yardman/Driver Rosendo Favela Mechanic/Driver Armando Cisneros Mechanic/Driver AFFIDAVIT OF NON -COLLUSION BY CONTRACTOR STATE OF CALIFORNIA t ss COUNTY OF LOS ANGELES } and says that he/she is Moser name of bidder] Moshe Ben Dayan Owner/President/CEO ring first duly sworn deposes i Insert 'Sole oss rt r". 'Parner`. ' Presidcni. :Secrewry". or crier proper fink i U.S. Tow, Inc. who submits herewith to the City of Vernon a bid/proposal: That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation; That such bid/proposal is genuine and not collusive or sham: That said bidder has not. directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of bids/proposals, said bidder: a. Did not directly or indirectly. induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal. or that anyone should refrain from bidding or withdraw his/her bid/proposal; C. Did not, in any manner, directly or indirectly seek by agreement. communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else. or to raise or fix any overhead, profit or cost element of his/her hid/proposal price, or of that of anyone else; d. Did not, directiv or indirectly, submit his/her bid/proposal price or any breakdown thereof', or the contents thereof, or divulge information or data relative thereto, it) any corporation. partnership, company, association, organization, bid depository, or to any member or agent thereof, or to any individual or grot of individuals. except the City of Vernon, or to any person or persons who have a aartnersh'- or other I mancial interest with said bidder in his/her business. certify under penAhy of perjurykat the By: Date: Nove�fbmn9, information is correct Title. Owner/Presi dent/CEQ 20 EXHIBIT A REFERENCES OF U.S. TOW, INC. N CO CONTACT INFORMATION FOR REFERENCES U.S. TOW, INC. Contact Person 1. John Takahashi Senior highway Operations Program Manager Congestion Reduction Metro Freeway Service Patrol 2. Chadies H. Joseph, Jr. Supervisor Vehicle Maintenance 3. Robert N. Arcos Assistant Chief 4. Jorge R. Rodriguez Commander Assistant to the Director Name and Address Los Angeles County Metropolitan Transportation Authority One Gateway Plaza Los Angeles, CA 90212 United States Postal Service 2306 Corinth Ave Los Angeles, CA 90064 Los Angeles Police Department Office of Operations 100 W. First St. Room 1031 Los Angeles, CA 90012 Los Angeles Police Department Office of Operations 100 W. First St. Room 1032 Los Angeles, CA 90012 Telephone/ Fax/ E-Mail T: (213) 418-3271 F: (213) 922-2955 E-Mail: takahashij@ metro. net T: (323) 272-0030 F: (310) 575-3167 £-Mail: charlesh.joseph@ usps.gov T: (213) 486-0100 F: (213) 486-0115 E-Mai I: Robert.Arcos@ lapd.online T: (213) 486-0110 (213) 305-4678 F: (213) 486-0115 E-Mail: 25668@lapd.online Provided Los Angeles County Metropolitan Transportation Authority Freeway Service Patrol: Beat #12 and Beat #70 General towing and roadside assistance services Official Police Garage for LAPD Newton Division Official Police Garage for LAPD Newton Division M C9 CONTACT INFORMATION FOR REFERENCES U.S. TOW,INC. (Continued) 5. Gregg Mader Sergeant 6. Hratch Basjmakian Investigator Beverly Hills Police Department 464 N. Rexford Dr. j Beverly Hills, CA 90210. Los Angeles County Sheriff's Department 11515 S. Colima Rd, Bldg. C, Room 111 Whittier, CA 90604 T: (310) 285-2140 F: (310) 271-9349 F-Mail: gmader@ beverlyhills.org T: (562) 946-7846 F: None E-Mail: hbashma@lasd.org Official Police Tow Towing, impound, storage, cargo recovery EXHIBIT B AREAS OF RESPONSIBILITY STATEMENT AND RESUMES OF KEY EMPLOYEES OF U.S. TOW, INC. AREAS OF RESPONSIBILITY STATEMENT FOR EACH KEY EMPLOYEE The areas of responsibility for each U.S. Tow, Inc. key employee have been carefully allocated based upon that employee's education, experience, skill and ability. MANAGEMENT Moshe Ben Dayan, President/CEO, Mr. Ben Dayan purchased U.S. Tow, Inc. in September, 2013 after a long and experienced history as Founder and President/CEO of Classic Tow, Inc. dba Tip Top Tow Service in Santa Monica. As President/CEO of U.S. Tow, he is responsible for fulfilling the firm's contracts with all governmental and private clients. Specific responsibilities include overall management of all operations including financial operations; company policy including contract procurement and compliance; project staffing; customer relations; community relations; and equipment/facility procurement and operations. Please see the resume of Mr. Ben Dayan. INTERNAL STAFF Mohammed Jaweed, CFO. Mr. Jaweed is responsible for the management of all financial and accounting functions and all bookkeeping functions for U.S. Tow. Mr. Jaweed is responsible for the daily, monthly and annual reporting of the firm including VIIC reporting, reports and timely payments for vehicle release fees, gross receipts fees, collections, forfeitures, monthly reports and business license fees. Mr. Jaweed is additionally responsible for working with auditors and insurance companies to maintain the company's liability and Worker's Compensation insurance and manages all internal and external payroll reporting. Please see the resume of Mr. Jaweed. Richard L. Kettering H, General Manager. Mr. Kettering's responsibilities are significant and multidimensional. Mr. Kettering oversees all daily operations of U.S. Tow. He is responsible for contract compliance; the generation of internal daily reports; VIIC system internal transparency and compliance; complaint/problem resolution for customers and Police agencies; employee relations including hiring and dismissal; tow driver safety compliance; lien sales auctions and paperwork; and security camera content review. Please see the resume of Mr. Kettering. Stephanie McColgan, Assistant Manager. Ms. McColgan prepares lien sale auction paperwork and vehicle release paperwork. She is responsible for the banking activities of the firm as well as human resources/employee applications and other associated paperwork. Ms. McColgan also assists the General Manager with other overflow business matters associated with the company. RESUME OF QUALIFICATIONS MOSHE BEN DAYAN President/CEO EXPERIENCE Owner and President/CEO of U.S. Tow, Inc. 1989 To Present Mr. Ben Dayan purchased U.S. Tow in September, 2013. As President/CEO, he is responsible for fulfilling the f2rm's contract with the City of Los Angeles as the OPG provider for the Newton Division. Additional specific responsibilities include overall management of all operations including financial operations; company policy including contract procurement and compliance; project staffing; customer relations; community relations; and equipment/facility procurement and operations. Founder, Owner and President/CEO of Classic Tow, Inc. dba Tip Top Tow Service. Operation of this business was started by Mr. Ben Dayan in 1989. Tip Top Tow Service has contracts with the City of Santa Monica, the City of Beverly Hills, the Los Angeles County Metropolitan Transportation Authority, the Los Angeles County Sheriff s Department and the California Highway Patrol and serves numerous other governmental and private clients. Mr. Ben Dayan's responsibilities at Tip Top Tow Service are the same as at U.S. Tow, with the exception that U.S. Tow is an OPG provider while Tip Top Tow is an Official Police Tow provider. EDUCATION High School Diploma received in Israel. Business College attended in Israel. Served as First Sergeant/Parachute Division/Israel Defense Forces for three years. COMMUNITY Mr. Ben Dayan is involved in numerous community activities through both U. S. Tow and Tip Top Tow Service. ti PERSONAL Date of Birth: 1964 Place of Birth: Israel Marital Status/Children: Married; three children References are noted as an attachment to this Proposal and are also available upon request. RESUME OF QUALIFICATIONS MOHAMMAD JAWEED CFO EXPERIENCE CFO of U.S. Tow, Inc. Mr. Jaweed is responsible for September, 2013 To the management of all financial and accounting functions Present and all bookkeeping functions for U.S. Tow. Mr. Jaweed is responsible for the daily, monthly and annual reporting of the firm including VUC reporting as well as management of other reports; timely payments for vehicle release fees; gross receipts fees; collections; forfeitures; and business license fees. Mr. Jaweed is additionally responsible for working with auditors and insurance companies to maintain the firm's liability and Worker's Compensation insurance and manages all internal and external payroll reporting. July, 1999 To Controller of Tamkin Development Corp., Brentwood, CA. September, 2013 Mr. Jaweed was responsible for all accounting functions; preparation of financial packages for purposes of construction estimates; property management projections; annual budgets; CAM reconciliations; and lease administration functions including property management, lease negotiation and capitalized expense contract negotiation. Mr. Jaweed additionally was responsible for payroll preparation; Federal and State tax reporting; employee benefits programs; and employee health care benefits. April, 1994 To Controller/Accounting Manager of CIM Group, LLC/ April, 1999 Dekel Construction, Inc., Santa Monica, CA. Mr. Jaweed was responsible for all accounting functions including monthly and year-end financial statements, construction draws, budget reports and Federal and State tax reporting. Mr. Jaweed was additionally responsible for tenant rent collections; the billing of CAM charges; property tax analysis; and maintenance of a sophisticated computerized accounting system. EDUCATION Bachelor's Degree with Accounting Major, India, 1986. Computer skills in Windows, Linux, Microsoft Office, Accpac, Yardi, QuickBooks Pro, Dataline and CTI Online. PERSONAL Date of Birth: 1967 Place of Birth: Hyderabad, Andhra Pradesh, India Marital Status: Married, three children 0 ti RESUME OF QUALIFICATIONS RICHARD L. KETTERING H General Manager EXPERIENCE General Manager of U. S. Tow, Inc. Mr. Kettering's 2009 To Present responsibilities are significant and multidimensional. Mr. Kettering oversees all daily operations of U. S. Tow. He is responsible for contract compliance; the generation of daily and monthly reports; VIIC system internal transparency and compliance; client interface; complaint/problem resolution for customers and Police agencies; employee relations including hiring and dismissal; tow driver safety compliance; lien auctions and paperwork; and security camera content review. 2004 To 2009 Longshoreman of Pacific Maritime Association, Ports of Los Angeles and Long Beach. Mr. Kettering was responsible for compiling container manifests; driving tractors for the loading of containers onto ships; locating missing cargo; and signaling traffic for the purpose of loading cargo. 2002 To 2004 Manager, Big 5 Sporting Goods, Whittier, CA. Mr. Kettering was responsible for all duties in connection with the operation of this Big 5 Sporting Goods location. EDUCATION Golden West College, Huntington Beach, CA. Associate of Arts Degree in Social Sciences, 2009. Graduated with Honors. Member Alpha Gamma Sigma Honor Society. OTHER Transportation Workers Identification Credential Certified Tow Unit Driver, California Tow Truck Association, Level 1 ti PERSONAL Date of Birth: 1979 Place of Birth: Bellflower, CA Marital Status: Married, two children N ti RESUME OF QUALIFICATIONS STEPHANIE MCCOLGAN Assistant Manager EXPERIENCE Assistant Manager of U.S. Tow, Inc. September, 2013 To Ms. McColgan's responsibilities include preparation Present of lien sale auction paperwork; vehicle release paperwork; banking activities; human resources/employee applications; and other associated paperwork. Ms. McColgan also assists the General Manager with other overflow business matters associated with the company. 1989 To Office Manager of Classic Tow, Inc. dba September, 2013 Tip Top Tow Service. Ms. McColgan worked with Moshe Ben Dayan to start Tip Top Tow Service in 1989. She continued to work for that entity until September, 2013 at which time she moved to U. S. Tow. Her responsibilities at Tip Top Tow Service included the management of banking/financial aspects of day-to-day business; payroll computation; daily receipts computation; serving as a back-up dispatcher, resolution of difficult customer issues; public relations work with municipal/public agencies as well as with the local community; and resolution of internal staff and vendor issues. Ms. McColgan additionally owned and operated two retail toy stores between 2002 and 2006. EDUCATION Peterborough County School For Girls, Peterborough, England (graduated 1981). PERSONAL Date of Birth: 1963 Place of Birth: Norwich, England Marital Status/Children: Married; three children OE�jP City of Vernon — Request For Proposals (RFP) FRANCHISE TOW FEE PROGRAM Submitted by: Mr. Cs Towing of South Gate, Inc. 6105 Maywood Ave. Huntington Park, CA 90255 4421 Mason St. South Gate, CA 90280 Tel: (323) 249-0575 73 One (1) unbound original Seven (7) hard copies One (1) electronic copy (via email to rsousa(u),coypcl.or�--) Cover Letter Response To RFP and Qualifications ■ Introduction ■ General Scope of Work in Wnrk Dian Facilities 2 Staffing 3 Conduct 4 Trucks and Equipment 4 ff Fees and Costs 9 Ability_ of_the _Proposer to Perform (Qualifications) 6 Permits/Licenses 6 Insurance 6 References 7 Affidavit of Non -Collusion 7 Closing Statement 8 ATTACHMENT I — FACILITIES PHOTOS ATTACHMENT 2 —TRUCK/EQUIPMENT PHOTOS ATTACHMENT 3 — INSURANCE CERTIFICATES ATTACHMENT 4 — AFFIDAVIT OF NON -COLLUSION 74 Mr. C's T-owing of South Cjate, qnc. 6105 Maywood Ave. Huntington Park, CA 90255 (323) 249-0575 November 19, 2018 City of Vernon Attention: Robert Sousa, Captain 4305 Santa Fe Avenue Vernon, CA 90058 To The Evaluation Committee for the City of Vernon: Mr. C's Towing of South Gate, Inc. (hereinafter "Mr. C's") is pleased to submit the following Proposal and relevant attachments in response to the City of Vernon (hereinafter "the City") Request For Proposals for the Franchise Tow Fee Program (RFP) which shall remain valid for a period of not less than ninety (90) days from the date of submittal. This cover letter is intended to provide a general overview of all relevant issues identified in the RFP, with details and elaboration in the Proposal and attachments which follow. Mr. C's Towing, Inc., located in Los Alamitos, initially incorporated in California in 1986, under the direction of Kurtis McElroy. In 2002 Mr. C's Towing of South Gate, located in South Gate, was incorporated in California, also under the direction of Kurtis McElroy, and for more than 15 years, has operated from 4421 Mason St., South Gate, CA. For the past 2'/2 years, Mr. C's has operated from an additional location in Huntington Park, which will serve as the `Primary Lot' for the City towing services, with the South Gate facility a `Secondary Lot'. Mr. C's services, by contract, a number of Southeast Cities. Kurtis McElroy is President of the corporation, and has been in the towing industry for decades, and Jerry Brown, retired after more than 30 years in law enforcement, serves as the General Manager of Mr. C's Towing of South Gate. Jerry Brown is the designated contact person during the proposal evaluation process, at the above office number or his cell phone (323) 807-3515. Mr. C's meets the City's minimum requirements as specified in the RFP. It is fully capable of conducting an official police towing service which complies with all of the requirements of Vernon Municipal Code Chapter 4B, including swift, professional service in the removal of any vehicles as directed by the Vernon Police Dept., from any City street, and by submission of this Proposal, agrees to accept all tow requests by the City, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment as well as accident or roadway clean up. 75 -I- Mr. C's has and/or will have, all required business licenses, permits, and insurance for the type of services performed, and as specified in Vernon Municipal Code Chapter 4B. The Primary Lot is less than '/ mile (as the crow flies) from the Vernon City Hall and consists of approximately 1 acre with an inside warehouse, within which is an enclosed locked evidence cage for vehicles retained as evidence and those impounded for CVC §22655.5. The Primary Lot is fully fenced and secured, accessible by a solid metal electric gate for security. It is equipped with LED exterior lighting as well as digital video monitoring/recording equipment for additional security. The `Secondary Lot' in South Gate, is less than 7 miles (as the crow flies) from the Vernon City Hall, and is also fully fenced, lit and monitored by digital video monitoring/recording equipment and equipped with inside storage and secured evidence area. Mr. C's has a 9,000-pound capacity forklift on site to assist in moving vehicles around the warehouse and storage yard without requiring the use of a tow vehicle. The forklift is equipped with a bear claw attachment that allows it to be used as a tow vehicle, contacting only the tires of the vehicle being moved. There is also a stationary vehicle lift in the warehouse to assist with inspections and investigations. Mr. C's has more than 20 vehicles available, of which fifteen are newer tow trucks (2015 and newer), with varying features, all with a rating of one ton or greater and includes a Class D Heavy Duty Truck. All of Mr. C's vehicles are equipped, operated and maintained in accordance with the provisions of California Vehicle Code §§24605, 25253, 25300, 27700 and 27907 and are inspected, each year, along with our facility, by CHP and contracted cities. Lien sales, including related paperwork and filings, are handled by Clear Choice, a licensed lien sale company. The business office, with dispatcher, is open 7 days per week. Our dispatcher is on duty 24 hours a day and vehicles are available for release from storage, day or night. A large sign, posted in a clearly visible location at the Huntington Park and South Gate offices, lists all fees associated with our business. Our proposed not to exceed rates are as follows: Towing fee $175.00 (passenger vehicles and trucks) Storage fee $55.00 per day Service fee '/a of the above towing fee Service fees, referenced above, include, but are not limited to, the following: dollying, winching, clean up, after hour release fee, lock service and/or fuel service. 76 -2- As we have done for other public entities with whom we have been awarded contracts, we will submit timely report and payment of franchise fees, based upon the towing and related services performed at the request of the City, at the rate and time as directed by the City, together with supporting reports/paperwork. Our drivers, the majority of whom are bilingual, are carefully screened to ensure the quality of personnel necessary to interact with clients and members of the public. They are highly qualified in towing and recovery and, once hired, obtain either WreckMaster, CTTA or AAA train inglcertification, if they do not already have one or the other. A monthly update of company policies is conducted to ensure safety and consistency in the field. Drivers are required to submit to random drug testing, their driving record is checked on a regular basis, and have a criminal history check performed. Mr. C's is enrolled in the DMV Pull Notice Program. The drivers' compensation complies with the Living Wage Ordinance. We consider our Company a highly qualified tow service company, with nearly three decades of collective experience, capable of furnishing impound, towing and storage services, with the necessary trained personnel, and equipment, within the required specifications and response times the City is now seeking by this RFP for the Franchise Tow Fee Program. In addition to providing the scope of work contemplated by the Franchise Tow Fee Program, and equally important, Mr. C's has been involved in community service charitable functions and events, such as Community Volunteer Programs, Police Explorer Programs, Police Widows and Orphans Fund and Community Improvement efforts to strengthen its community involvement with other local governments, and would anticipate similar involvement with the City of Vernon if awarded the contract. Mr. C's has been operating for more than a decade with a record of outstanding, problem free service to other local cities and police departments in the Los Angeles County and looks forward to being able to do so for the City of Vernon. We sincerely appreciate your review of our Proposal and thank you in advance for your consideration. qqr. C's Towtng OfSouth Gabe, Im. in Kurtis McElroy, President 77 -3- RESPONSE TO RFP AND QUALIFICATIONS Introduction Mr. C's Towing of South Gate, Inc. (hereinafter "Mr. C's") is a California corporation, incorporated in 2002. Kurtis McElroy is President and the principal place of business is located at 4421 Mason St., South Gate, CA 90280; telephone (323) 249-0575. The `Primary Lot' for purposes of this RFP for towing/storage services is located at 6105 Maywood Ave., Huntington Park, CA 90255, less than '/ mile (as the crow flies) from the City, where Mr. C's has conducted towing services for more than 2 Y years. Mr. C's understands the City seeks a qualified bidder to enter into a franchise agreement to perform police towing and storage services, as directed by the Vernon Police Dept. By this Proposal, Mr. C's represents it is a well -qualified bidder to perform the work requested by the City, having the facilities, personnel and equipment, together with its significant history of successful municipality contract towing experience over decades necessary for the specified work. General Scope of Work The scope of work Mr. C's agrees to perform, as a highly qualified tow service company, includes furnishing impound, towing and storage services to the Vernon Police Dept. and the City as directed by the Vernon Police Dept. The scope of work, as described in the RFP and in Chapter 4B of the Vernon Municipal Code, will be executed through the Work Plan described below, by ensuring a facility with sufficient storage for vehicles, with trained and experienced personnel, both in the field and in the office, appropriate/necessary equipment, fully equipped and operational, available, all within the time perimeters called for by the RFP. Work Plan Mr. C's intends to provide swift, professional service in the removal of any vehicle, as directed by the City, from any City street. It has sufficient equipment and personnel to do so. It will provide impound, towing and storage services to the City as directed by the City. Mr. C's is committed to give priority to City calls when requested and to maintain sufficient personnel and equipment to perform such services, with a response time averaging 10-15 minutes or less. This is consistent with Mr. C's commitment to other cities with whom it has a contract as part of its 'business custom and practice'. If Mr. C's is unable to meet the average response called for in the RFP (for a 30 day period) of 20 minutes, Mr. C's understands a maximum not to exceed single request for tow service would be no more than 30 minutes, (as provided in the RFP and in Sec. 4B.11 of Chapter 4B of the Vernon Municipal Code). Should a tow unit be unable to respond immediately, the City will be promptly notified and provided with an estimated time of arrival. 1 Mr. C's is fully capable and qualified to meet all such requirements and scope of services, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment, as well as responding to the scene of a traffic accident at the request of the City, to remove all glass, liquids and other debris deposited on the roadway. The service not only includes a response to calls in the field but participating in DUI check points or other special events as requested by the City. Mr. C's shall provide, at no cost to the City, routine roadside service including, but not limited to, towing service, changing flat tires, and battery jump starts to all vehicles owned by the City up to and including one (1) ton rated vehicles, made at the request of the City/City designee, whenever such vehicles require such service within the City or within five (5) road miles of the corporate limits of the City. Facilities The Primary Lot is approximately 1 acre, capable of holding at least 240 vehicles, including in excess of 30 days. An enclosed locked evidence cage, capable of holding approximately 10-13 vehicles, is located within an enclosed warehouse on the premises. An additional holding space, if needed, is available within the warehouse and will hold at least 20 cars/trucks. The Primary Lot is fully fenced and secured, accessible by a solid metal electric gate for security. The property is equipped with LED exterior lighting, as well as digital video monitoring/recording equipment, with a recording capacity up to 30-45 days, for additional security. Further, the facility is physically `manned' 24/7/365 so that any unauthorized entry or attempt to enter the premises can be immediately detected. Vehicles towed by Mr. C's remain in the same condition as received. Vehicles towed and placed in the evidence cage remain in the same condition as received, deferring to police personnel to catalogue or otherwise secure personal property in the vehicle, for validation and chain of custody issues, unless otherwise instructed and supervised by law enforcement. The office, located on the premises, is open during business hours (0700 to 1800 hours, Monday — Friday) and vehicles are available for release from impound and storage 24 hours a day, 7 days a week. Alternate hours, as directed by the City, will also be available by Mr. C's, to accommodate special City events. A designated office area within the on -premise office is provided exclusively for use by law enforcement personnel, with access to a phone, facsimile/copier/computer and all necessary office supplies. See photos as Attachment 1 (that include the building and lot of the Secondary Lot). 79 2 Staffing Mr. C's has no 'blemish' of criminal or other illegal conduct or business practices, including no convictions of same, nor unethical or predatory business practices. Mr. C's has not been terminated from a towing service contract similar to the one which is the subject of this RFP. The character and integrity of Mr. C's is of paramount importance to Mr. C's. It is a member of the Better Business Bureau and holds an A+ rating. Mr. C's certifies that it takes all steps to satisfy or otherwise meet equal employment opportunity requirements and does not and has never engaged in the discrimination against any employee or applicant for employment because of race, color, ancestry, national origin, religion, sex, handicap or age. General Manager, Jerry Brown, a retired law enforcement officer, retiring in 2002 in the rank of Lieutenant after more than 30 years of service, strives to maintain good relationships with all contracting agencies and good customer service. He has an intimate understanding of the needs and operations of a police department relative to services required from a tow service, as well as knowledge of relevant provisions of the California Vehicle Code. He is very community minded and is a member of the South Gate Rotary Club, has held various leadership roles in Rotary District 5280, and is a Board member of the local Chamber of Commerce. He leads the Company in involvement in many City and Police Department activities for many of the cities in the surrounding Southeast area. The good relationships and customer service are further carried out by the Dispatcher and Office Manager, both of whom are regularly involved with release of vehicles and contact with members of the public, as well as the drivers and their supervisors, who are respectful of law enforcement and try to maintain good customer service. The Driver Manager started his towing career almost 40 years ago as a driver. He is familiar with all aspects of the towing industry and is a Certified WreckMaster trainer. He has been with Mr. C's since incorporation in 2002. The Driver Supervisor has been in the towing industry for more than 15 years as a driver. He is familiar with all aspects of the towing industry and applicable laws and procedures. He has a WreckMaster's Certificate and has been employed by Mr. C's about 9 years. A dispatch operator is on duty 24 hours a day, 365 days a year, providing the ability to maintain a telephonic point of contact for receiving City requests for services and to receive calls from the public 24 hours per day. The dispatching system is geared for prompt dispatching of calls, with corresponding prompt response, estimated at 10-15 minutes, based on the proximity of Mr. C's and the City, and analysis of other surrounding Cities of similar distance with whom Mr. C's has a towing contract. All tow trucks and base station are equipped with two-way radios, which provide the ability to maintain 24 hour per day communication contact with tow vehicles. All calls are recorded on carbon -copied call back book, by date and number, for a permanent record. The record includes the type of call, date, time, and location, and year, make and model of the vehicle. All such records are maintained in accordance with the business retention practice of at least three years. 80 3 Drivers employed by Mr. C's, all of whom are bilingual (English/Spanish) are carefully screened to ensure the quality of personnel necessary to interact with clients and members of the public. Mr. C's currently employs a total of 15 drivers and schedules drivers to meet the requirements of the RFP. They are highly qualified in towing and recovery and, once hired, obtain either WreckMaster, CTTA or AAA training/certification, if they do not already have one or the other at time of hiring. Drivers have their driving record checked on a regular basis. Mr. C's participates in a DMV Pull Notice Program, enabling Mr. C's to be informed of any change to driver's driving status or record. The drivers are required to submit to random drug testing and, upon hiring, a criminal history check is performed. Each driver wears a Mr. C's uniform, complete with nametag that is clearly visible. They are required to be neat and clean, with hair, mustaches and beards neatly trimmed/groomed. Each driver carries a change of uniform to ensure proper appearance and cleanliness. Training involves a monthly update of company policies to ensure safety and consistency in the field. Statutes and changes in the law pertaining to towing are included in the monthly training, or more often, as circumstances dictate. Upon selection of the towing contract, Mr. C's shall file with the Vernon Police Department, for the exclusive use of the City, not available for public disclosure for privacy reasons, the identifying information (name, address, date of birth, driver's license number), and any other information required, of any tow unit driver, and any subsequent driver, not later than ten (10) business days following the effective date of hiring. Mr. C's will further notify the Vernon Police Department of any tow truck driver fulfilling services to the City no longer in its employ, no later than ten (10) business days following the last date of employment. Conduct Consistent with its A+ Better Business Bureau rating, professionalism, ethical, lawful and competent actions are part of Mr. C's business practices by all persons employed by the Company. Consistent with its standard policies and procedures, all complaints made are investigated promptly with action, if, and as, appropriate, taken. Trucks and Eguipment All tow vehicles and equipment of Mr. C's comply with all State and Federal requirements, where applicable, including marking of tow vehicles per the California Vehicle Code. Vehicles available to perform tow services to the City meet or exceed the minimum requirements of Sec. 4B.9C of Chapter 4B of the Vernon Municipal Code and are capable of providing the following services: recovery truck(s) with an adjustable boom with a minimum lifting capacity of at least 4 tons, wheel lift towing, roll back/flatbed towing, towing in parking garages, towing of large and oversized vehicles NE In in and towing of motorcycles without causing additional damage. The tow vehicles and equipment (see photos as Attachment 2) include the following: Flatbed Carrier Class A Tow 2018 Hino 258 (Class A) 2017 Ford F450 2017 Hino 258ALP (Class B) 2017 Ford F450 2017 Hino (Class A) 2017 Ford F450 2016 Hino 258 (Class B) 2016 Ford F450 2016 Hino 268 (Class B) 2016 Ford F450 2016 Hino 268 (Class B) 2015 Ford F450 2014 Hino 258 (Class B) 2014 Ford F450 2014 Hino 258 (Class A) 2014 Ford F550 2014 Hino 258ALP (Class B) 2014 Ford F450 2014 Hino 258 (Class A) 2012 Ford F450 2009 Dodge 5500 Mr. C's also has a vehicle lift (9000 Ibs) and a forklift. Class B Tow Class C Tow 2017 Hino 258ALP 2016 Kenworth Class D Tow — Heavy Duty 1999 Kenworth All vehicles are on a preventative maintenance schedule, strictly followed, to ensure reliability and performance. All tow vehicles are inspected annually by the CHIP. Additionally, all tow vehicles are inspected daily by the driver, who is assigned to his or her own vehicle. All of the vehicles are equipped with cleaning supplies and each driver takes pride in keeping his or her truck spotless. Fees and Costs Our proposed rates are comparable to the rate Mr. C's offers to other governmental entities for similar work and not to exceed as follows: Towing fee $175.00 (passenger vehicle and truck) Storage fee $55.00 per day Service fee Y2 of the above towing fee Service fees, referenced above, include, but are not limited to, the following: dollying, winching, clean up, after hour release fee, lock service and/or fuel service. A large sign, posted in a clearly visible location at the office, lists all fees associated with our business. Mr. C's accepts cash, credit and debit cards for payment of fees for the release of vehicles upon presentation of proper identification. For those vehicles towed/impounded and brought to Mr. C's yard, a licensed lien sale company, Clear Choice, complies with all California statutory requirements and sends written notice to the registered and legal owner(s) of the vehicle's location and location phone number, with release and other relevant information, within three (3) days of the vehicle being impounded. All lien related paperwork and filings are handled by Clear every y. „stances Permit, the vehicle's Dice. Lien sales are held eve Wednesday. !f circumstances location and phone number of where the vehicle will be taken for impound is provided at the time of impound by the Impounding Officer. 5 Mr. C's will submit timely payment of franchise fees, calculated based upon the towing and related services performed at the request of the City, at the rate and time directed by the City, together with supporting report in a spreadsheet format as specified in the proposed Contract included in the RFP. The report is prepared from the invoices and logbook information prepared concurrent with the call for service and maintained by Mr. C's in accordance with its retention practice for a minimum of three years. Books and records are made available by Mr. C's for inspection by the City. Franchise fees will be timely paid by, on or before the date designated by the City. Ability of the Proposer to Perform (Qualifications) In addition to the facility, personnel, truck and equipment, described above as the means and methods by which Mr. C's will execute a work plan for the scope of work contemplated by the RFP, all of which support Mr. C's ability to meet and/or exceed in its performance of the requirements of the RFP, Mr. C's submits the following additional information. Permits/Licenses Mr. C's maintains the following permits/licenses, all of which are current and in good standing: State of CA Motor Carrier (0494530) City of Bell Business License City of Compton Business License City of Downey Business License City of Hawthorne Business License City of Los Angeles Business License City of South Gate Business License City of Carson Business License City of Cudahy Business License City of Gardena Business License City of Lynwood Business License City of Pico Rivera Business License A business license for the City of Vernon will be obtained if awarded the tow contract. Insurance Mr. C's maintains the following insurance policies (see Attachment 3) with the following limits: ➢ Commercial General Liability ➢ On -Hook Liability ➢ Business Automobile Liability ➢ Garagekeepers Liability ➢ Workers' Compensation $1 million/$2 million aggregate $100, 000 $1 million $500,000 ICW Statutory Limits If awarded the contract for services, the City will be identified as an Additional Named Insured with respect to General Liability as described in Section 10 of the Contract. n References Mr. C's has been operating since 1986, with a record of outstanding, problem free service to other local cities and police departments in Los Angeles and Orange counties. Services provided include response to calls in the field and participating in DUI check points. Mr. C's list of clients has grown over the years because of the attention to detail and to the needs and requirements of law enforcement agencies and includes the following for all locations: AGENCY LOCATION SERVING SINCE City of Bell Police Dept Bell 2014 - Present Chief Carlos Isla 323 585-1245 California Highway Patrol Westminster 1987 — Present Officer Howard 714 892-4426 California Highway Patrol Westminster 1995 — Present (Evidence Contract) (714) 892-4426 Officer Howard California Highway Patrol East Los Angeles 2003 — Present Doris Peniche (323) 980-4600 City of Huntington Park Huntington Park Lt. Alfred Martinez 323 584-1254 La Palma Police Dept. La Palma 1991 — Present Capt. Enright 714 690-3370 Los Alamitos Police Dept. Los Alamitos 1987 — Present Capt. Karr 562 594-7232 Los Angeles Sheriff's Dept. East Los Angeles 2018 - Present Officer Bash Los Angeles Sheriffs Dept. Hawaiian Gardens 1997 — Present Officer Bash 562 623-3500 City of Lynwood Lynwood 2017- Present JD Whitaker 310 735-6062 Orange Co. Auto Theft Task Where needed 1994 — Present Force 714 634-1385 Seal Beach Police Dept. Seal Beach 1992 — Present Sgt. Ezro 562 799-4100 Signal Hill Police Dept. Signal Hill 1994 — Present Capt. Nunle 562 989-7200 South Gate Police Dept. South Gate Dec 2002- Present Chief Randall Davis (323)563-5400 Affidavit of Non -Collusion See Affidavit Attachment 4. 7 Closing Statement Mr. C's has made every effort to address all pertinent factors set forth in the RFP and in the order proposed, for consideration by the City, with sufficient detail demonstrating that Mr. C's meets or, in many instances, exceeds, the requirements set forth in the RFP, avoiding generalities or ambiguities/vagueness. Should there be any issues not fully discussed, or questions that develop, Mr. C's will promptly address any such issues of concern in person, by phone and/or in writing. Respectfully submitted, MW C's Of south Cafic, qnc. KURTIS MCELROY President ATTACHMENT 1- FACILITIES PHOTOS W. F.*h OWN I ri 91 ;ti `"'�� . ::� r ;;:� lll,;.::itj ,,,;,;.: i11 il. 'i'' ,'4i ll'e1� ,!'I, � — i 1 _ r.4r� M vl n e...� 4 r. ...�}.. _+YAIX��e r � ' _ ,. .. _ , ..,,.1 : �l� 4ft 94 T Z-1 ATTACHMENT 2 -TRUCK/EQUIPMENT PHOTOS 201 S Hind 25S glass A 97 4 hlt iy�, l.:T� ; 5b�h'i, �y 4• 2(]1 7 Hind 25SALP Class B 201 B H in o 258 Class B I fj _�_.:''" 4441M womm 5 SPOW, 2Ql U Hino 2(343 Class B 101 2Q7 6 Hino L>88 C lass B 102 2�'1 AHino 2S$ Class B 103 :2014 Hino 258 (-- lass A 104 } 2p14 Hino 258ALP Glass B 24 105 2014 Hino 252 Ciass A 106 6105 -MM-A-y 'W, US Dt)T,2907BRI LA 'T" 2017 Ford 1'450 Class A 2017 Ford P450 Class A 109 201 6� Fvrd F550 Glass A 110 kmw HOUR «-----�-�-- 800.273-3699 S ' US00T 2107"1 �Q.4• CA4132C 2015 Ford F450 Class A 112 c 1 � . 1rY `• , i ' `fir r< 2 4 Forc1 F55Cj Class A 114 2012 Ford F450 Class A 116 . -.Mowpwmr-lk 2009 QncJgeb 5500 117 2017 H irk c> 258A L P 118 I .�I.-- 800.273.3699 UNT N.: ^w•' 10879 i;lOMilel� ih A1M111n. 70YjM1 _ 1 999 K4--nvvorth Class ID 120 q r'' a ti rA 14 Lt C + •n' 124 DATE (MWODNYYY) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: if the CertlfiGate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provis€ons or 6e endorsed. [f SUBROGATION M WAIVED, subject to the terms and conditions of the pal€cy, certain pal€c€es may require an endorsement A Statement on this certlf€cats does not confer ri hts to the cartlf€cat, holder In lieu of such endorsement(sj. PRDOUCER INSURED Strong Tie Insurance Services Inc 8135 Florence Ave Ste 201 Downey, CA 90240 License #: OD87939 MR. C'S TOWING OF SOUTH GATE INC 4421 MASON ST. SOUTHGATE, CA 90280 CERTIFICATE NUMBER: 00000000-116032 i THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE IIVSUREb N REVISION ABOVE FOR ERE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. 'SR TYPE OF INSURANCE ADDL SUBR POLICY POLIGDY EXP A COMMERCIAL GENERAL LIABILITY POLICY NUMBER I LIMITS ❑ GP8259791 0411sr2o18 , o411s12o19 EACH OCCURRENCE S 1 00( CLAIMS-thADE OCCUR e e e �N'L AGGREGATE LIMIT APPLIES PER: MX POLICY ECOTLOC OTHER: B AUTOMOBILE LIABILITY ANY AUTO OVMED�' X SCHEDULED AUTOS ONLY HIRED X AUTOS ONLY K # AUTOS NON AUTOS ONLY �UMISRELLA LIAO �I OCCUR AB I I „.,..,... EMPLOYERS'LIAMLITY YIN 'ROPRIETORIPARTNERIEX ECUTIV E 'EWMEMBER EXCLUDED? N 1 A 12t0ry in NHl C JGARAGEKEEPERS D ON HOOK CTS023 2389 10411112018 10411112019 aiSES E pc urran S EXP (Any one person) S �S COA791NED SINGLE LIMIT I S Es a[ 'dent BODILY INJURY (Per person) S BODILY INJURY (Par accident) S Pa�aao,tlentDAMAGE $ UMBI S GP8269791 04/1131211181 0411812019 $500,000 HSI0001813 04/11/2018 0411112019 $100,000 DESCRIPTION OF OPERATIONS I LOCATIONS! VEHICLES (ACORD 101, Additional Remarks Schedufa, may be attached it morn apace is required) 6105 MAYWOOD AVE HUNTINGTON PARTS, CA. 90265 4421 MASON ST. SOUTH GATE, CA 90280 DED $2,500 DED $5,000 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. 125 RD ACORD 25 (2016/03) The ACORD name and 1090 are registered m rks of ACORD CORPORATION. All rights eAaTOR CARRIER (CA)IA A Public Service Agency CERTIFICATE F INSURANCE 0494530 Motor Carriers of Property INSURER (INSURANCECOMPANY) NAME AND ADDRESS NAIL, Insurance Company of the West: Status; 27847 ® Licensed to write insurance in the State of California SURPLUS LINE BROKER � (Admitted Insurer) 15025 Innovation. Drive, San ❑ Nonadmitted Insurer subject to Section 1763 of the California Insurance Code. Diego, �r� ` 92128 OTHER n SURPLUS LINE BROKER NRSs1E ❑ Charitable Risk Pool INSURED (MOTOR CARRIER) NAME AND AppRESS ❑ Risk Retention Group NZ Cs Towing of south Cate Inc Piled with the: California Department of Motor Vehicles Motor Carrier Services Branch 10821 Bloomfield St Ste C, Los Alamitos, CP. O. Box 932370 MS G875 R, 90720 Sacramento, CA 94232-3700 (916) 657-8153 TYPE OF INSURANCE POLICY NUM13ER PoLJCY $FFECTIVZ DATE P1hVDDlYY L1117ETu PRIMARY LIAeiLITY COMBINED SINGLE LIMIT g 13 Coverage below statutory minimum limits. BODILY INJURY OR DEATH ff {ONE PERSON} BODILY INJURY OR DEATH S © Coverage equal to exceedlrsg statutory minimum Ilmits. (MORE THAN ONE PERSON) PROPERTY DAMAGE $ EXCESSove LIABILITY COMBINED SINGLE LIMIT S.^,,,, In excess o€ $ © Coverage ba€minin primary coverage BODILY INJURY and statutory minimum limi(s. (ONE PERSON) 5 � in excess of 5 0 Coverage provided at or above statutory BODILY INJURY OR minimum limits. DEATH (WORE THAN g -in excess of 3 ONE PERSON) PROPERTY DAMAGE S -In excess of S_W____ wOi$f4ER5'COMAENSATION 4#s7E 5021005 04/41/18 GdwCStalutoryLlmiis Insurer certifies to each of the foilowhig: • The motor carrier of property (insured) identified herein is covered by an insurance policy providing bodily injury or death liability, property damage liability insurance, or workers' compensation insurance within the coverage limits identified above as required by California Vehicle Code (CVC) Sections 34630, 34631.5, and 34640, and by Part 387 of Title 49 of the Code of Federal Regulations. • This insurance policy covers all vehicles used in conducting the service performed by the insured for which a motor carrier permit is required whether or not said vehicle is listed in the insurance policy. • A fully executed endorsement, on a form authorized by the Department of Motor Vehicles (DMV), is attached to the referenced policy to conform to the requirements of the Motor Carriers of Property Permit Act, CVC Section 34600 and following, and the rules and regulations of the DMV. (This provision does not apply to Workers' Compensation Insurance.) • For the purposes of Charitable Risk Pool coverage, this policy meets the requirements of the CVC Section 34631 (d). • For the purposes of Risk Retention Group coverage, this policy meets the requirements of the Risk Retention Act of 1991, California insurance Code Section 125 and following, and Is authorized to do business in California. Insurer agrees to each of the following. ® This Certificate of Insurance shall not be canceled on less than thirty (30) days notice from the Insurer to the DMV and written on a Notice of Cancellation form authorized by the DMV, and that the thirty (30) day period commences to run from the date the Notice of Cancellation form was actually received at the office of the California Department of Motor Vehicles, Motor Carrier Services Branch, in Sacramento, California. b A duplicate original of the referenced policy, a DMV authorized endorsement, and all other related endorsements and documentation, shall be furnished to DMV upon request. ! certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct. PRINTED NAME OF INSURER'S AUTHORIZED REPRESENTATIVE TELEPHONE UMBER Paul Zamora ENWLADDRESS ( 8583502400 psamoraoicwgroun.com SIGNATURE -Paul ZamorER'SAIITHORIZED REPRESEMTATIVE ExpcLrrEDAT(CITY .STATE) DATE Paul Zamora San Diego CA 04/11/2018 126 MC G5 M (REV. iiaoio) UH ATTACHMENT 4 - AFFIDAVIT OF NON -COLLUSION 127 AFFIDAVIT OF NON -COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ] )SS COUNTY OF LOS ANGELES ] Kurtis McElroy, being first duly sworn deposes and says that he is the President of Mr. C's Towing of South Gate, Inc., who submits herewith to the City of Vernon a bid/proposal: That all statements of fact in such bid/proposal are true; That such bid/proposal is genuine and not collusive or sham; That said bidder has not, directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of bids/proposals, said bidder: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain from bidding or withdraw his/her bid/proposal; C. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or fix any overhead, profit or cost element of his/her bid/proposal price, or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof or to any individual or group of individuals, except the City of Vernon, or to any person or persons who have a partnership or other financial interest with said bidder in his/her business. I certify under penalty of perjury that the above information is correct. 0 KURTIS McELRQY Date: Title: President 128 ORDINANCE NO. 1259 AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON GRANTING TO U.S. TOW, INC., A FRANCHISE TOWING SERVICES AGREEMENT WHEREAS, the City of Vernon (the "City") is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California; and WHEREAS, on October 2, 2012, the City Council of the City of Vernon adopted Ordinance No. 1198 adding Chapter 4B of the Vernon Municipal Code to establish a non-consensual franchise towing fee; and WHEREAS, on September 15, 2015, the City Council of the City of Vernon adopted Ordinance Nos. 1231 and 1233 granting U.S. Tow, Inc. and H.P. Automotive & Tow, Inc. a franchise towing services agreement for a term of three years; and WHEREAS, on or about November 1, 2018, the Police Chief issued a Request for Proposals for the City's Franchise Tow Fee Program; and WHEREAS, the City Council of the City of Vernon desires to grant a Franchise Towing Services Agreement to U.S. Tow, Inc.; and WHEREAS, the City Council of the City of Vernon is authorized by City Charter Section 8.9 to grant a franchise in the City of Vernon to any person, firm, corporation, or other entity and to set terms, conditions, restrictions and limitations by ordinance. THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. 129 SECTION 2: GRANT OF FRANCHISE. A non-exclusive franchise shall be, and the same is hereby granted by the City Council of the City of Vernon to U.S. Tow, Inc., its lawful successors or assigns to provide official non-consensual police towing services to the Vernon Police Department. Said franchise is further described and depicted in the Franchise Towing Services Agreement, in substantially the same form as attached hereto as Exhibit A and incorporated herein by reference. SECTION 3: FRANCHISE TERM. The franchise shall endure in full force and effect for three (3) years, subject to the terms and conditions of the Franchise Towing Services Agreement. g7rTTnT\T 4 - FRANTr" TTg7 777 The grantee of the franchise, during the life thereof, will pay to the City five percent (50) of the gross annual receipts of the grantee arising from the use, operation or possession of the franchise. SECTION 5: VERIFIED STATEMENT OF GROSS RECEIPTS. The grantee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the grantee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The grantee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the 130 - 2 - aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by grantee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this franchise and of all rights of grantee hereunder. However, grantee has the ability to cure under Section 12. Further, the City is responsible for insuring that grantee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this franchise. SECTION 6: DATA COLLECTION AND REPORTING. The Vernon Police Department shall maintain a record of grantee's response times during the term of the franchise and shall submit a written report summarizing such data to the City Council of the City of Vernon at a regularly scheduled City Council meeting in the month of April each year during the term of the franchise. SECTION 7: WRITTEN ACCEPTANCE REQUIRED. The franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk. SECTION 8: ABANDONMENT OF PRIOR FRANCHISES. The franchise granted by this Ordinance is in lieu of all other franchises, rights or privileges owned by the grantee, or by any successor of the grantee to any rights under the franchise, for providing official police towing services throughout the limits of the City of Vernon as such limits exist at the time of the granting of the 131 - 3 - franchise or as they may thereafter, except any franchise derived under Section 19 of Article IX of the Constitution as that section existed prior to the amendment thereof adopted October 10, 1911. The acceptance of the franchise granted by this Ordinance shall operate as an abandonment of all such franchises, rights, and privileges within the limits of City as such limits at any time exist, in lieu of which the franchise is granted by this Ordinance. SECTION 9: EMINENT DOMAIN. The granting of the franchise shall not in any way impair or affect the right of the City to acquire the property of the grantee by purchase or condemnation, and nothing contained in this franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's right of eminent domain. SECTION 10: VALUE OF FRANCHISE. By acceptance of the franchise, the grantee, for itself, its successors and assigns, agrees that in any proceeding of any character before any court, commission, administrative body, board of arbitration or other public authority, no greater value shall be placed upon the franchise in excess of the cost to the grantee of the necessary publication and any other sum paid by grantee to the City therefor at the time of acquisition. .qT?C"TTnT\T 1 1 - T\TnT\TrnmPT,TAT\TC F. _ If the grantee of the franchise granted by this Ordinance fails, neglects, or refuses to comply with any of the provisions or conditions prescribed in this ordinance or the Franchise Act of 1937, and does not within ten (10) days after written demand for compliance begin the work of compliance, and after such beginning does not prosecute the work with due diligence to completion, the City, by its 132 - 4 - City Council, may declare the franchise forfeited. The City may sue in its own name for the forfeiture of the franchise granted pursuant to this Ordinance, in the event of noncompliance with any of the conditions thereof by the grantee, its successors, or assigns. SECTION 12: CONFORMITY TO RULES AND STATUTORY REQUIREMENTS. The grantee of the franchise granted by this Ordinance shall comply with all of the ordinances and rules adopted by the City Council of the City of Vernon in the exercise of its police powers and not in conflict with the paramount authority of the State. All work undertaken or performed pursuant to the provisions of the franchise shall be of the standard required by law, and by any other body or governmental authority having jurisdiction in the premises. Where not in conflict with State law, or other governmental authority having jurisdiction in the premises, tow services shall be performed in accordance with the rules and regulations and ordinances of the City. SECTION 13: INDEMNIFICATION. The grantee shall indemnify and hold harmless the City, its officers, agents and employees, from all liability for damages proximately resulting from any operations under this franchise. SECTION 14: ASSIGNMENT. Grantee shall not assign or transfer any interest in the franchise without the express prior written consent and approval of City Council. Any unauthorized assignment or transfer of Franchisee's rights or obligations under this Agreement shall be null and void and shall constitute a material breach by Franchisee of this Agreement. SECTION 15: PERFORMANCE BOND. (a) At the option of the City, grantee shall either (a) reduce or eliminate any deductibles or self -insured retentions with 133 - 5 - respect to the City, its elected officials, officers, employees, agents, representatives, attorneys, and volunteers; or (b) file with the City Clerk a corporate surety bond running to City and guaranteeing payment of losses and related investigations, claim administration and defense expenses. The bond shall be conditioned that grantee shall well and truly observe, fulfill and perform each term and condition of the franchise, and that in case of any breach of condition of the bond the amount of the penal sum therein shall be recoverable. If City elects option (b) above, Grantee shall file such bond within five (5) days after the adoption of this ordinance. (b) Grantee shall maintain the bond in full force and effect throughout the term of this franchise, at grantee's sole expense. The bond shall be issued by an admitted surety insurer and comply with the requirements of the Bond and Undertaking Law, codified in Code of Civil Procedure Sections 995.010 et seq. This franchise shall be considered a "license or permit" within the meaning of the Bond and Undertaking Law, solely for purposes of application of such law to the bonding requirements of this section. SECTION 16: LIABILITY. The grantee of the franchise under this Ordinance shall be liable to the City for all damages proximately resulting from the failure of the grantee to well and faithfully observe and perform any provision of the franchise or any provision of the Franchise Act of 1937. SECTION 17: REPEAL. Any ordinance or parts of an ordinance in conflict with this Ordinance are hereby repealed. SECTION 18: SEVERABILITY. If any chapter, article, section, subsection, subdivision, paragraph, sentence, clause, phrase, or word 134 - 6 - in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more chapters, articles, sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared unconstitutional, or invalid, or ineffective. SECTION 19: BOOK OF ORDINANCES. The City Clerk shall attest and certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk's certification to be entered in the Book of Ordinances of the Council of this City. The City Clerk shall cause this ordinance to be published or posted as required by law. 135 - 7 - SECTION 20: EFFECTIVE DATE. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty- first (31st) day after its passage. APPROVED AND ADOPTED this 19th day of February, 2019. ATTEST: Maria E. Ayala, City Clerk APPROVED AS TO FORM: Brian W. Byun, Senior Deputy City Attorney Name: Title: Mayor / Mayor Pro-Tem 136 - 8 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Maria E. Ayala, City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1259 was duly and regularly introduced at a regular meeting of the City Council of the City of Vernon, held in the City of Vernon on Tuesday, February 5, 2019, and thereafter adopted at a meeting of said City Council held on Tuesday, February 19, 2019, by the following vote: AYES: Councilmembers: NOES: ABSENT: Councilmembers: Councilmembers: And thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of February, 2019, at Vernon, California. (SEAL) Maria E. Ayala, City Clerk 137 - 9 - EXHIBIT A 138 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. Franchisee: Responsible Principal of Franchisee: Notice Information - Franchisee: Notice Information - City: Commencement Date: Termination Date: Consideration: Records Retention Period COVER PAGE U.S. Tow, Inc. Moshe Ben Dayan, President/CEO U.S. Tow, Inc. 2119 East 25th Street Los Angeles, CA 90058 Attention: Moshe Ben Dayan, President/CEO Phone: (213) 749-7100 Facsimile: (213) 749-0272 City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Anthony Miranda Chief of Police Telephone: (323) 587-5171 ext. 115 Facsimile: (323) 826-1483 No earlier than thirty-one (31) days after final approval by City Council of City of Vernon of ordinance granting franchise to U.S. Tow, Inc. Three (3) years from Commencement Date, inclusive Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Three (3) years, pursuant to Section 15.3 139 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. This Agreement is made and entered into by and between the City of Vernon ("City"), a California charter City and California municipal corporation, and U.S. Tow, Inc. ("Franchisee"), a California corporation with its principal place of business at 2119 East 251" Street, Los Angeles, CA 90058 (collectively, the "Parties") to provide towing services to the City. The Parties agree as follows: RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vernon as set forth in the Request for Proposal issued on or about November 1, 2018, Exhibit A, and Franchisee's proposal to the City ("Proposal') dated November 19, 2018, Exhibit B, both of which are attached to and incorporated into this Agreement, by reference. WHEREAS, pursuant to Chapter 4B of the Vernon Municipal Code, Franchisee has applied for a Police Towing Franchise ("Franchise"); and WHEREAS, the City Council has held a public hearing for the purpose of hearing persons in favor of or in opposition to the granting of such Franchise; and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with Chapter 4B of the Vernon Municipal Code and has agreed to comply with all provisions of that Chapter; and WHEREAS, it is required that City and Franchisee enter into a Franchise Towing Services Agreement ("Agreement") for Police Towing services in the City of Vernon; and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW, THEREFORE, the Parties do hereby agree as follows: Section 1. GRANT OF FRANCHISE. City grants to Franchisee a Police Towing Franchise authorizing Franchisee to engage in the business of Police Towing as set forth in chapter 4B of the Vernon Municipal Code in the City of Vernon and to use the public streets and rights of way for such purpose. This grant is pursuant to the City's Request for Proposal and to Franchisee's proposal for the Franchise. Franchisee is subject to the terms and conditions specified in Section 8.9 of the Charter of the City of Vernon, the provisions of Chapter 4B of the Vernon Municipal Code, the terms and conditions specified in all related resolutions, the terms and conditions of this Agreement, the representations and assurances in Franchisee's application for the Franchise. Section 2. TERM OF FRANCHISE. 140 The term of this Franchise granted to Franchisee shall be for three (3) years, effective from thirty-one (31) days after the date upon which the City Council of the City of Vernon finally approves the ordinance granting the Franchise (the "Effective Date") to the date that is three (3) years from the Effective Date, Inclusive. Section 3. FRANCHISE FEES. 3.1 During the term of the Franchise, Franchisee shall pay a franchise fee to City in an amount equal to 5% of Franchisee's gross annual receipts arising from the use, operation or possession of the Franchise, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 413.8 of the Vernon Municipal Code and any Resolution adopted by the City Council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the City Council at any time during the term of the Agreement. 3.2 The Franchisee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the Franchisee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The Franchisee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by Franchisee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this Franchise and of all rights of Franchisee hereunder pursuant to the procedures set forth in Sections 11 and 12 herein. However, Franchisee has the ability to cure. Further, the City is responsible for insuring that Franchisee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this Franchise. 3.3 Franchisee shall timely pay all required franchise fees to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Each payment shall be accompanied by a written statement, verified by the Franchisee or a duly authorized representative of the Franchise, showing in such form and detail as the Finance Director of the City of Vernon may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Finance Director may require as material to a determination of the amount due. 3.4 The first payment of the franchise fee will be due on _ and payments shall be due monthly thereafter on the 1511 day of each month. 3.5 When Franchisee remits franchise fees to the City, such franchise fees shall be deemed timely paid only if delivered or postmarked on or before the due date. If fees 141 are not timely paid, Franchisee shall be subject to suspension or termination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be established and assessed by the City, including, but without limitation, late fees assessed at the rate of five percent (5%). Section 4. TOWING SERVICES. 4.1 Franchisee shall provide Police Towing services, as set forth in Exhibit A, which is the City's Request for Proposals for Official Police Tow Services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules, standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for Proposals. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 4B of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisition towing services from other service providers as set forth in Section 4B.12 of the Vernon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in the reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. Section 5. RATES, CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the City Council. The prevailing rates prescribed by the Southern Division of the California Highway Patrol, the Los Angeles Police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shall be $160.00 and the storage charge shall be $50.00 per day, until otherwise modified by the City Council. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by MasterCard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after -hour release fee. As part of the award of franchise the City Council will be requested to establish an after-hours release fee not to exceed '/2 of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payment of its monthly franchise fees. The report shall be submitted to: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 The report shall include the information required by Section 4B.10(H) of the Vernon Municipal Code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee: 142 Section 7. FRANCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms with generally accepted accounting principles. Franchisee's books, accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents of the City. Such records shall be kept at franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform Police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchise. Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchisee and its subcontractors. Section 8. TOW VEHICLE AND DRIVER, REPORTING, COMPLIANCE, AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to City, that every such vehicle conforms with regional and State vehicle emission standards ("emission standards"), and shall provide documentation of compliance on written request of the City. Franchisee understands and agrees that failure to conform with emission standards may result in suspension, termination or non -renewal of a Franchise. 8.2 Every vehicle operated by Franchisee and for Police Towing services in the City shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, together with Franchisee's telephone number painted upon both sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-1/4" in height and not less than 5/6" stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all identification required of any tow unit driver working for Franchisee, whether as an employee or as a contractor, which information shall be filed not later than ten (10) business days following the effective date of employment or engagement. Franchisee shall also notify the Vernon Police Department within ten (10) business days of the following occurrences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any tow unit driver with Franchisee. Section 9. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, fines, charges or penalties whatsoever, including reasonable attorney's fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner related to the services provided or business conducted under Chapter 4B of the Vernon Municipal Code or otherwise pursuant to this Agreement. 143 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns, and any successor or successors to the City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses (including, but not limited to, attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the City or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 United States Code Section 9607, and California Health and Safety Code Section 25364, and any successor provisions, to insure, protect, hold harmless, and indemnify the City from liability. Section 10. INSURANCE. Franchisee shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Agreement, including any extensions thereto. The policies shall state that they afford primary coverage. Automobile Liability with minimum limits of at least $1,000,000 combined single limit, including owned, hired, and non -owned liability coverage. (1) MCS 90 Endorsement must be attached to the auto liability policy. Garage Keeper Legal Liability insurance with coverage limits of no less than $1,000,000 for damage to a vehicle towed, impounded or otherwise stored by Franchisee. iii. On -Hook Liability insurance with coverage limits of no less than $1,000,000 for damage to any vehicle towed by Franchisee or otherwise connected to any of Franchisee's tow trucks. iv. Franchisee agrees to subrogate automobile liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. V. General Liability with minimum limits of at least $1,000,000 per occurrence and $2,000,000 aggregate written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" form or its equivalent for coverage on an occurrence basis. Premises/Operations 144 and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Franchisee's performance of this Agreement. (1) If Franchisee employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Franchisee may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. (2) Franchisee agrees to subrogate General Liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. vi. Franchisee shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. In addition, Franchisee shall require each subcontractor to similarly maintain workers' compensation insurance in accordance with the laws for California for all of the subcontractor's employees. Compliance is accomplished in one of the following manners: (1) Provide copy of permissive self-insurance certificate approved by the State of California; or (2) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Agreement; or (3) Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Agreement. vii. Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. viii. Insurance shall be placed with insurers with a Best's rating of no less than A-VIII. ix. Prior to commencement of performance, Franchisee shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may 145 require complete, certified copies of any or all policies at any time. X. Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Franchisee shall immediately notify City and cease all performance under this Agreement until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Franchisee by way of set-off or recoupment from sums due to Franchisee, at City's option; (b) immediately terminate this Agreement and seek damages from the Agreement resulting from said breach; or (c) self -insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Franchisee, by way of set-off or recoupment from any sums due to Franchisee. Section 11. TERMINATION AND SUSPENSION. The City may terminate this Agreement, without cause, by giving the Franchisee thirty (30) days written notice of such termination and the effective date thereof. The City may terminate this Agreement, with cause, by giving the Franchisee (10) days written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the City and shall be, but is not limited to, failure to supply the materials, equipment or service specified within the time allowed or within the terms, conditions or provisions of this agreement. The Franchisee may not cancel this Agreement without prior written consent from the Vernon Chief of Police. Section 12. TEMPORARY SUSPENSION. In addition to termination or suspension as set forth in Section 11, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the continued operation by the Franchisee would constitute a danger to public health, safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different. Notwithstanding other notice provisions of this Agreement, the temporary suspension is effective upon the earlier of either receipt or the expiration of 3 days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for termination hearing and all other information required by the Vernon Municipal Code. The temporary suspension shall remain effective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of Police. Section 13. ACCEPTANCE, WAIVER. Franchisee agrees to be bound by and comply with all the requirements of Chapter 4B and this Agreement. By entering into this Agreement, Franchisee waives, to the maximum 146 extent permitted by law, Franchisee's right to challenge the terms of this Agreement and of Chapter 4B under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14. GENERAL TERMS AND CONDITIONS. 14.1 INDEPENDENT STATUS. It is understood that in the performance under this Agreement, Franchisee shall be, and is, an independent operator, and is not an agent, contractor, or employee of City and shall furnish services in its own manner and method. Further, Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Franchisee in its business operations. Franchisee shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 14.2 FRANCHISE NOT AGENT. Franchisee and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 14.3 WAIVER. The City's waiver of any term, condition, breach or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 14.4 NO ASSIGNMENT. The Franchisee shall not assign or transfer any interest in this Agreement without the express prior written consent and approval of City Council. 14.5 COMPLIANCE WITH LAWS. Franchisee shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 14.6 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 14.7 INTERPRETATION. 14.7.1 Applicable Law. This Agreement, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed and construed according to the laws of the State of California. 14.7.2 Entire Agreement. This Agreement, including any Exhibits attached hereto and any documents explicitly referenced herein, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 14.7.3 Written Amendment. This Agreement may only be changed by written amendment signed by Franchisee and the City Administrator or other authorized 147 representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Agreement shall be of no force or effect. 14.7.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. 14.7.5 Choice of Forum. The parties hereby agree that this Agreement is to be enforced in accordance with the laws of the State of California, is entered into and is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 Order of Precedence. In case of conflict between the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the order of precedence is as follows: Charter the City of Vernon, the Vernon Municipal Code, the ordinance granting this Franchise, resolutions of the City of Vernon this Agreement, the City's Request for Proposals for Official Police Towing Services, and Franchisee's Response to the City's Request for Proposals for Official Police Towing Services. 14.7.7 Duplicate Originals. There shall be two (2) fully signed copies of this Agreement, each of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement, and its execution of this Agreement has been duly authorized. Section 15. ADDITIONAL ASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Franchisee certifies and represents that, during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "C". 15.2 BUSINESS LICENSES. Franchisee shall obtain, and pay any and all costs associated therewith, any Vernon Business License, which may be required by the Vernon Municipal Code and all permits, and licenses applicable to Franchisee's operations under this Franchise, which are required of Franchisee by any governmental agency. 15.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Franchisee's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Agreement and/or is 148 paying only the amounts to which Franchisee is properly entitled under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the City of Vernon. If not, the Franchisee shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personal, salaries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchisee hereby represents warrants and certifies that no member, officer or employee of the Franchisee is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES. Except as otherwise provided in this Agreement, all notices required by this Agreement or by Chapter 4B of the Vernon Municipal Code shall be given by personal service or by deposit in the United States mail, postage pre -paid and return receipt requested, addressed to the parties as follows: To City: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 Copies to: Director of Finance City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: U.S. Tow, Inc. Attention: Moshe Ben Dayan, President/CEO 2119 East 25th Street Los Angeles, CA 90058 Notice shall be deemed effective on the date personally served or, if mailed, three days after the date deposited in the mail. 149 [Signatures Begin on Next Page]. 150 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a California charter City and California municipal corporation DATED: 20 Carlos Fandino, City Administrator U.S. Tow, Inc., a California corporation DATED: By: Name: Title: ATTEST: By: Name: Maria E. Ayala, City Clerk Title: APPROVED AS TO FORM: Brian Byun, Senior Deputy City Attorney 151 EXHIBIT A REQUEST FOR PROPOSALS 152 EXHIBIT B FRANCHISEE'S PROPOSAL 153 EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Franchisee certifies and represents that, during the performance of this Agreement, the Franchisee and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Franchisee further certifies that it will not maintain any segregated facilities. B. Franchisee agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Franchisee, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Franchisee agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Franchisee agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. 154 EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the agreement of violating employers. 155 ORDINANCE NO. 1259 AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON GRANTING TO U.S. TOW, INC., A FRANCHISE TOWING SERVICES AGREEMENT WHEREAS, the City of Vernon (the "City") is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California; and WHEREAS, on October 2, 2012, the City Council of the City of Vernon adopted Ordinance No. 1198 adding Chapter 4B of the Vernon Municipal Code to establish a non-consensual franchise towing fee; and WHEREAS, on September 15, 2015, the City Council of the City of Vernon adopted Ordinance Nos. 1231 and 1233 granting U.S. Tow, Inc. and H.P. Automotive & Tow, Inc. a franchise towing services agreement for a term of three years; and WHEREAS, on or about November 1, 2018, the Police Chief issued a Request for Proposals for the City's Franchise Tow Fee Program; and WHEREAS, the City Council of the City of Vernon desires to grant a Franchise Towing Services Agreement to U.S. Tow, Inc.; and WHEREAS, the City Council of the City of Vernon is authorized by City Charter Section 8.9 to grant a franchise in the City of Vernon to any person, firm, corporation, or other entity and to set terms, conditions, restrictions and limitations by ordinance. THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. 156 SECTION 2: GRANT OF FRANCHISE. A non-exclusive franchise shall be, and the same is hereby granted by the City Council of the City of Vernon to U.S. Tow, Inc., its lawful successors or assigns to provide official non-consensual police towing services to the Vernon Police Department. Said franchise is further described and depicted in the Franchise Towing Services Agreement, in substantially the same form as attached hereto as Exhibit A and incorporated herein by reference. SECTION 3: FRANCHISE TERM. The franchise shall endure in full force and effect for three (3) years, subject to the terms and conditions of the Franchise Towing Services Agreement. g7rTTnT\T 4 - FRANTr" TTg7 777 The grantee of the franchise, during the life thereof, will pay to the City five percent (50) of the gross annual receipts of the grantee arising from the use, operation or possession of the franchise. SECTION 5: VERIFIED STATEMENT OF GROSS RECEIPTS. The grantee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the grantee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The grantee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the 157 - 2 - aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by grantee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this franchise and of all rights of grantee hereunder. However, grantee has the ability to cure under Section 12. Further, the City is responsible for insuring that grantee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this franchise. SECTION 6: DATA COLLECTION AND REPORTING. The Vernon Police Department shall maintain a record of grantee's response times during the term of the franchise and shall submit a written report summarizing such data to the City Council of the City of Vernon at a regularly scheduled City Council meeting in the month of April each year during the term of the franchise. SECTION 7-&: WRITTEN ACCEPTANCE REQUIRED. The franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk. SECTION 8�: ABANDONMENT OF PRIOR FRANCHISES. The franchise granted by this Ordinance is in lieu of all other franchises, rights or privileges owned by the grantee, or by any successor of the grantee to any rights under the franchise, for providing official police towing services throughout the limits of the City of Vernon as such limits exist at the time of the granting of the 158 - 3 - franchise or as they may thereafter, except any franchise derived under Section 19 of Article IX of the Constitution as that section existed prior to the amendment thereof adopted October 10, 1911. The acceptance of the franchise granted by this Ordinance shall operate as an abandonment of all such franchises, rights, and privileges within the limits of City as such limits at any time exist, in lieu of which the franchise is granted by this Ordinance. SECTION 9-9: EMINENT DOMAIN. The granting of the franchise shall not in any way impair or affect the right of the City to acquire the property of the grantee by purchase or condemnation, and nothing contained in this franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's right of eminent domain. SFCTTON 1n4: VATiJF OF FRANCHTSF_ By acceptance of the franchise, the grantee, for itself, its successors and assigns, agrees that in any proceeding of any character before any court, commission, administrative body, board of arbitration or other public authority, no greater value shall be placed upon the franchise in excess of the cost to the grantee of the necessary publication and any other sum paid by grantee to the City therefor at the time of acquisition. .qFC"TTnT\T 1 1-1- T\TnT\TrnmPT,TAT\TC F. _ If the grantee of the franchise granted by this Ordinance fails, neglects, or refuses to comply with any of the provisions or conditions prescribed in this ordinance or the Franchise Act of 1937, and does not within ten (10) days after written demand for compliance begin the work of compliance, and after such beginning does not prosecute the work with due diligence to completion, the City, by its 159 - 4 - City Council, may declare the franchise forfeited. The City may sue in its own name for the forfeiture of the franchise granted pursuant to this Ordinance, in the event of noncompliance with any of the conditions thereof by the grantee, its successors, or assigns. SFCTTON 1 24-: CONFORMTTY TO RiJT FS AND STATUTORY RFOiJTRFMFNTS _ The grantee of the franchise granted by this Ordinance shall comply with all of the ordinances and rules adopted by the City Council of the City of Vernon in the exercise of its police powers and not in conflict with the paramount authority of the State. All work undertaken or performed pursuant to the provisions of the franchise shall be of the standard required by law, and by any other body or governmental authority having jurisdiction in the premises. Where not in conflict with State law, or other governmental authority having jurisdiction in the premises, tow services shall be performed in accordance with the rules and regulations and ordinances of the City. SECTION 13�:INDEMNIFICATION. The grantee shall indemnify and hold harmless the City, its officers, agents and employees, from all liability for damages proximately resulting from any operations under this franchise. SECTION 14-3:ASSIGNMENT. Grantee shall not assign or transfer any interest in the franchise without the express prior written consent and approval of City Council. Any unauthorized assignment or transfer of Franchisee's rights or obligations under this Agreement shall be null and void and shall constitute a material breach by Franchisee of this Agreement. SECTION 154: PERFORMANCE BOND. (a) At the option of the City, grantee shall either (a) reduce or eliminate any deductibles or self -insured retentions with 160 - 5 - respect to the City, its elected officials, officers, employees, agents, representatives, attorneys, and volunteers; or (b) file with the City Clerk a corporate surety bond running to City and guaranteeing payment of losses and related investigations, claim administration and defense expenses. The bond shall be conditioned that grantee shall well and truly observe, fulfill and perform each term and condition of the franchise, and that in case of any breach of condition of the bond the amount of the penal sum therein shall be recoverable. If City elects option (b) above, Grantee shall file such bond within five (5) days after the adoption of this ordinance. (b) Grantee shall maintain the bond in full force and effect throughout the term of this franchise, at grantee's sole expense. The bond shall be issued by an admitted surety insurer and comply with the requirements of the Bond and Undertaking Law, codified in Code of Civil Procedure Sections 995.010 et seq. This franchise shall be considered a "license or permit" within the meaning of the Bond and Undertaking Law, solely for purposes of application of such law to the bonding requirements of this section. SECTION 16§:LIABILITY. The grantee of the franchise under this Ordinance shall be liable to the City for all damages proximately resulting from the failure of the grantee to well and faithfully observe and perform any provision of the franchise or any provision of the Franchise Act of 1937. SECTION 1�&7: REPEAL. Any ordinance or parts of an ordinance in conflict with this Ordinance are hereby repealed. SECTION 148:SEVERABILITY. If any chapter, article, section, subsection, subdivision, paragraph, sentence, clause, phrase, or word 161 - 6 - in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more chapters, articles, sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared unconstitutional, or invalid, or ineffective. SECTION 149:BOOK OF ORDINANCES. The City Clerk shall attest and certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk's certification to be entered in the Book of Ordinances of the Council of this City. The City Clerk shall cause this ordinance to be published or posted as required by law. SECTION 3-420: EFFECTIVE DATE. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty- first (31st) day after its passage. APPROVED AND ADOPTED this day of , 2019. ATTEST: Maria E. Ayala, City Clerk APPROVED AS TO FORM: Name: Title: Mayor / Mayor Pro-Tem 162 - 7 - Brian W. Byun, Senior Deputy City Attorney 163 - 8 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Maria E. Ayala, City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1259 was duly and regularly introduced at a regular meeting of the City Council of the City of Vernon, held in the City of Vernon on Tuesday, February 5 2019, and thereafter adopted at a meeting of said City Council held on Tuesday, AYES: NOES: ABSENT: , by the following vote: Councilmembers: Councilmembers: Councilmembers: And thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of February, 2019, at Vernon, California. (SEAL) Maria E. Ayala, City Clerk 164 - 9 - ORDINANCE NO. 1260 AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON GRANTING TO MR. C'S TOWING OF SOUTH GATE, INC., A FRANCHISE TOWING SERVICES AGREEMENT WHEREAS, the City of Vernon (the "City") is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California; and WHEREAS, on October 2, 2012, the City Council of the City of Vernon adopted Ordinance No. 1198 adding Chapter 4B of the Vernon Municipal Code to establish a non-consensual franchise towing fee; and WHEREAS, on September 15, 2015, the City Council of the City of Vernon adopted Ordinance Nos. 1231 and 1233 granting U.S. Tow, Inc. and H.P. Automotive & Tow, Inc. a franchise towing services agreement for a term of three years; and WHEREAS, on or about November 1, 2018, the Police Chief issued a Request for Proposals for the City's Franchise Tow Fee Program; and WHEREAS, the City Council of the City of Vernon desires to grant a Franchise Towing Services Agreement to Mr. C's Towing of South Gate, Inc.; and WHEREAS, the City Council of the City of Vernon is authorized by City Charter Section 8.9 to grant a franchise in the City of Vernon to any person, firm, corporation, or other entity and to set terms, conditions, restrictions and limitations by ordinance. THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS: SECTION 1: The City Council of the City of Vernon hereby 165 finds and determines that the above recitals are true and correct. SECTION 2: GRANT OF FRANCHISE. A non-exclusive franchise shall be, and the same is hereby granted by the City Council of the City of Vernon to Mr. C's Towing of South Gate, Inc., its lawful successors or assigns to provide official non-consensual police towing services to the Vernon Police Department. Said franchise is further described and depicted in the Franchise Towing Services Agreement, in substantially the same form as attached hereto as Exhibit A and incorporated herein by reference. SECTION 3: FRANCHISE TERM. The franchise shall endure in full force and effect for three (3) years, subject to the terms and conditions of the Franchise Towing Services Agreement. g7rTTnT\T 4 • 712AT\TrgTg7 777 The grantee of the franchise, during the life thereof, will pay to the City five percent (50) of the gross annual receipts of the grantee arising from the use, operation or possession of the franchise. SECTION 5: VERIFIED STATEMENT OF GROSS RECEIPTS. The grantee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the grantee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The grantee shall pay to the City within fifteen (15) days after the time 166 - 2 - for filing said statement, in lawful money of the United States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by grantee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this franchise and of all rights of grantee hereunder. However, grantee has the ability to cure under Section 12. Further, the City is responsible for insuring that grantee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this franchise. SECTION 6: DATA COLLECTION AND REPORTING. The Vernon Police Department shall maintain a record of grantee's response times during the term of the franchise and shall submit a written report summarizing such data to the City Council of the City of Vernon at a regularly scheduled City Council meeting in the month of April each year during the term of the franchise. SECTION 7: WRITTEN ACCEPTANCE REQUIRED. The franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk. SECTION 8: ABANDONMENT OF PRIOR FRANCHISES. The franchise granted by this Ordinance is in lieu of all other franchises, rights or privileges owned by the grantee, or by any successor of the grantee to any rights under the franchise, for providing official police towing services throughout the limits of the 167 - 3 - City of Vernon as such limits exist at the time of the granting of the franchise or as they may thereafter, except any franchise derived under Section 19 of Article IX of the Constitution as that section existed prior to the amendment thereof adopted October 10, 1911. The acceptance of the franchise granted by this Ordinance shall operate as an abandonment of all such franchises, rights, and privileges within the limits of City as such limits at any time exist, in lieu of which the franchise is granted by this Ordinance. SECTION 9: EMINENT DOMAIN. The granting of the franchise shall not in any way impair or affect the right of the City to acquire the property of the grantee by purchase or condemnation, and nothing contained in this franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's right of eminent domain. SECTION 10: VALUE OF FRANCHISE. By acceptance of the franchise, the grantee, for itself, its successors and assigns, agrees that in any proceeding of any character before any court, commission, administrative body, board of arbitration or other public authority, no greater value shall be placed upon the franchise in excess of the cost to the grantee of the necessary publication and any other sum paid by grantee to the City therefor at the time of acquisition. SECTION 11: NONCOMPLIANCE. If the grantee of the franchise granted by this Ordinance fails, neglects, or refuses to comply with any of the provisions or conditions prescribed in this ordinance or the Franchise Act of 1937, and does not within ten (10) days after written demand for compliance begin the work of compliance, and after such beginning does not - 4 - prosecute the work with due diligence to completion, the City, by its City Council, may declare the franchise forfeited. The City may sue in its own name for the forfeiture of the franchise granted pursuant to this Ordinance, in the event of noncompliance with any of the conditions thereof by the grantee, its successors, or assigns. SECTION 12: CONFORMITY TO RULES AND STATUTORY REQUIREMENTS. The grantee of the franchise granted by this Ordinance shall comply with all of the ordinances and rules adopted by the City Council of the City of Vernon in the exercise of its police powers and not in conflict with the paramount authority of the State. All work undertaken or performed pursuant to the provisions of the franchise shall be of the standard required by law, and by any other body or governmental authority having jurisdiction in the premises. Where not in conflict with State law, or other governmental authority having jurisdiction in the premises, tow services shall be performed in accordance with the rules and regulations and ordinances of the City. fiFrTTnm 1'�- TNnFMNTFT(ATTON_ The grantee shall indemnify and hold harmless the City, its officers, agents and employees, from all liability for damages proximately resulting from any operations under this franchise. SECTION 14: ASSIGNMENT. Grantee shall not assign or transfer any interest in the franchise without the express prior written consent and approval of City Council. Any unauthorized assignment or transfer of Franchisee's rights or obligations under this Agreement shall be null and void and shall constitute a material breach by Franchisee of this Agreement. SECTION 15: PERFORMANCE BOND. (a) At the option of the City, grantee shall either 169 - 5 - (a) reduce or eliminate any deductibles or self -insured retentions with respect to the City, its elected officials, officers, employees, agents, representatives, attorneys, and volunteers; or (b) file with the City Clerk a corporate surety bond running to City and guaranteeing payment of losses and related investigations, claim administration and defense expenses. The bond shall be conditioned that grantee shall well and truly observe, fulfill and perform each term and condition of the franchise, and that in case of any breach of condition of the bond the amount of the penal sum therein shall be recoverable. If City elects option (b) above, Grantee shall file such bond within five (5) days after the adoption of this ordinance. (b) Grantee shall maintain the bond in full force and effect throughout the term of this franchise, at grantee's sole expense. The bond shall be issued by an admitted surety insurer and comply with the requirements of the Bond and Undertaking Law, codified in Code of Civil Procedure Sections 995.010 et seq. This franchise shall be considered a "license or permit" within the meaning of the Bond and Undertaking Law, solely for purposes of application of such law to the bonding requirements of this section. SECTION 16: LIABILITY. The grantee of the franchise under this Ordinance shall be liable to the City for all damages proximately resulting from the failure of the grantee to well and faithfully observe and perform any provision of the franchise or any provision of the Franchise Act of 1937. SECTION 17: REPEAL. Any ordinance or parts of an ordinance in conflict with this Ordinance are hereby repealed. SECTION 18: SEVERABILITY. If any chapter, article, section, 170 - 6 - subsection, subdivision, paragraph, sentence, clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more chapters, articles, sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared unconstitutional, or invalid, or ineffective. SECTION 19: BOOK OF ORDINANCES. The City Clerk shall attest and certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk's certification to be entered in the Book of Ordinances of the Council of this City. The City Clerk shall cause this ordinance to be published or posted as required by law. 171 - 7 - SECTION 20: EFFECTIVE DATE. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty- first (31st) day after its passage. APPROVED AND ADOPTED this 19th day of February, 2019. ATTEST: Maria E. Ayala, City Clerk APPROVED AS TO FORM: Brian W. Byun, Senior Deputy City Attorney Name: Title: Mayor / Mayor Pro-Tem 172 - 8 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Maria E. Ayala, City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1260 was duly and regularly introduced at a regular meeting of the City Council of the City of Vernon, held in the City of Vernon on Tuesday, February 5, 2019, and thereafter adopted at a meeting of said City Council held on Tuesday, February 19, 2019, by the following vote: AYES: Councilmembers: NOES: ABSENT: Councilmembers: Councilmembers: And thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of February, 2019, at Vernon, California. (SEAL) Maria E. Ayala, City Clerk 173 - 9 - EXHIBIT A 174 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. Franchisee: Responsible Principal of Franchisee: Notice Information - Franchisee: Notice Information - City: Commencement Date: Termination Date: Consideration: Records Retention Period COVER PAGE Mr. C's Towing of South Gate, Inc. Jerry Brown, General Manager Mr. C's Towing of South Gate, Inc. 4421 Mason Street. South Gate, CA 90280 Attention: Jerry Brown, General Manager Phone: (323) 249-0575 Facsimile: (323) 249-4998 City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Anthony Miranda Chief of Police Telephone: (323) 587-5171 ext. 115 Facsimile: (323) 826-1483 No earlier than thirty-one (31) days after final approval by City Council of City of Vernon of ordinance granting franchise to U.S. Tow, Inc. Three (3) years from Commencement Date, inclusive Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Three (3) years, pursuant to Section 15.3 175 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. This Agreement is made and entered into by and between the City of Vernon ("City"), a California charter City and California municipal corporation, and Mr. C's Towing of South Gate, Inc. ("Franchisee"), a California corporation with its principal place of business at 4421 Mason Street, South Gate, CA 90280 (collectively, the "Parties") to provide towing services to the City. The Parties agree as follows: RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vernon as set forth in the Request for Proposal issued on or about November 1, 2018, Exhibit A, and Franchisee's proposal to the City ("Proposal') dated November 19, 2018, Exhibit B, both of which are attached to and incorporated into this Agreement, by reference. WHEREAS, pursuant to Chapter 4B of the Vernon Municipal Code, Franchisee has applied for a Police Towing Franchise ("Franchise"); and WHEREAS, the City Council has held a public hearing for the purpose of hearing persons in favor of or in opposition to the granting of such Franchise; and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with Chapter 4B of the Vernon Municipal Code and has agreed to comply with all provisions of that Chapter; and WHEREAS, it is required that City and Franchisee enter into a Franchise Towing Services Agreement ("Agreement") for Police Towing services in the City of Vernon; and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW, THEREFORE, the Parties do hereby agree as follows: Section 1. GRANT OF FRANCHISE. City grants to Franchisee a Police Towing Franchise authorizing Franchisee to engage in the business of Police Towing as set forth in chapter 4B of the Vernon Municipal Code in the City of Vernon and to use the public streets and rights of way for such purpose. This grant is pursuant to the City's Request for Proposal and to Franchisee's proposal for the Franchise. Franchisee is subject to the terms and conditions specified in Section 8.9 of the Charter of the City of Vernon, the provisions of Chapter 4B of the Vernon Municipal Code, the terms and conditions specified in all related resolutions, the terms and conditions of this Agreement, the representations and assurances in Franchisee's application for the Franchise. Section 2. TERM OF FRANCHISE. 176 The term of this Franchise granted to Franchisee shall be for three (3) years, effective from thirty-one (31) days after the date upon which the City Council of the City of Vernon finally approves the ordinance granting the Franchise (the "Effective Date") to the date that is three (3) years from the Effective Date, Inclusive. Section 3. FRANCHISE FEES. 3.1 During the term of the Franchise, Franchisee shall pay a franchise fee to City in an amount equal to 5% of Franchisee's gross annual receipts arising from the use, operation or possession of the Franchise, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 413.8 of the Vernon Municipal Code and any Resolution adopted by the City Council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the City Council at any time during the term of the Agreement. 3.2 The Franchisee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the Franchisee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The Franchisee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by Franchisee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this Franchise and of all rights of Franchisee hereunder pursuant to the procedures set forth in Sections 11 and 12 herein. However, Franchisee has the ability to cure. Further, the City is responsible for insuring that Franchisee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this Franchise. 3.3 Franchisee shall timely pay all required franchise fees to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Each payment shall be accompanied by a written statement, verified by the Franchisee or a duly authorized representative of the Franchise, showing in such form and detail as the Finance Director of the City of Vernon may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Finance Director may require as material to a determination of the amount due. 3.4 The first payment of the franchise fee will be due on _ and payments shall be due monthly thereafter on the 1511 day of each month. 3.5 When Franchisee remits franchise fees to the City, such franchise fees shall be deemed timely paid only if delivered or postmarked on or before the due date. If fees 177 are not timely paid, Franchisee shall be subject to suspension or termination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be established and assessed by the City, including, but without limitation, late fees assessed at the rate of five percent (5%). Section 4. TOWING SERVICES. 4.1 Franchisee shall provide Police Towing services, as set forth in Exhibit A, which is the City's Request for Proposals for Official Police Tow Services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules, standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for Proposals. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 4B of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisition towing services from other service providers as set forth in Section 4B.12 of the Vernon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in the reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. Section 5. RATES, CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the City Council. The prevailing rates prescribed by the Southern Division of the California Highway Patrol, the Los Angeles Police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shall be $160.00 and the storage charge shall be $50.00 per day, until otherwise modified by the City Council. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by MasterCard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after -hour release fee. As part of the award of franchise the City Council will be requested to establish an after-hours release fee not to exceed '/2 of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payment of its monthly franchise fees. The report shall be submitted to: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 The report shall include the information required by Section 4B.10(H) of the Vernon Municipal Code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee: 178 Section 7. FRANCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms with generally accepted accounting principles. Franchisee's books, accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents of the City. Such records shall be kept at franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform Police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchise. Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchisee and its subcontractors. Section 8. TOW VEHICLE AND DRIVER, REPORTING, COMPLIANCE, AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to City, that every such vehicle conforms with regional and State vehicle emission standards ("emission standards"), and shall provide documentation of compliance on written request of the City. Franchisee understands and agrees that failure to conform with emission standards may result in suspension, termination or non -renewal of a Franchise. 8.2 Every vehicle operated by Franchisee and for Police Towing services in the City shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, together with Franchisee's telephone number painted upon both sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-1/4" in height and not less than 5/6" stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all identification required of any tow unit driver working for Franchisee, whether as an employee or as a contractor, which information shall be filed not later than ten (10) business days following the effective date of employment or engagement. Franchisee shall also notify the Vernon Police Department within ten (10) business days of the following occurrences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any tow unit driver with Franchisee. Section 9. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, fines, charges or penalties whatsoever, including reasonable attorney's fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner related to the services provided or business conducted under Chapter 4B of the Vernon Municipal Code or otherwise pursuant to this Agreement. 179 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns, and any successor or successors to the City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses (including, but not limited to, attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the City or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 United States Code Section 9607, and California Health and Safety Code Section 25364, and any successor provisions, to insure, protect, hold harmless, and indemnify the City from liability. Section 10. INSURANCE. Franchisee shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Agreement, including any extensions thereto. The policies shall state that they afford primary coverage. Automobile Liability with minimum limits of at least $1,000,000 combined single limit, including owned, hired, and non -owned liability coverage. (1) MCS 90 Endorsement must be attached to the auto liability policy. Garage Keeper Legal Liability insurance with coverage limits of no less than $1,000,000 for damage to a vehicle towed, impounded or otherwise stored by Franchisee. iii. On -Hook Liability insurance with coverage limits of no less than $1,000,000 for damage to any vehicle towed by Franchisee or otherwise connected to any of Franchisee's tow trucks. iv. Franchisee agrees to subrogate automobile liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. V. General Liability with minimum limits of at least $1,000,000 per occurrence and $2,000,000 aggregate written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Franchisee's performance of this Agreement. (1) If Franchisee employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Franchisee may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. (2) Franchisee agrees to subrogate General Liability resulting from performance under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney's fees ("Claims"), which are attributable to any act or omission by the City under the performance of the services. vi. Franchisee shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. In addition, Franchisee shall require each subcontractor to similarly maintain workers' compensation insurance in accordance with the laws for California for all of the subcontractor's employees. Compliance is accomplished in one of the following manners: (1) Provide copy of permissive self-insurance certificate approved by the State of California; or (2) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Agreement; or (3) Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Agreement. vii. Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. viii. Insurance shall be placed with insurers with a Best's rating of no less than A-VIII. ix. Prior to commencement of performance, Franchisee shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may 181 require complete, certified copies of any or all policies at any time. X. Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Franchisee shall immediately notify City and cease all performance under this Agreement until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Franchisee by way of set-off or recoupment from sums due to Franchisee, at City's option; (b) immediately terminate this Agreement and seek damages from the Agreement resulting from said breach; or (c) self -insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Franchisee, by way of set-off or recoupment from any sums due to Franchisee. Section 11. TERMINATION AND SUSPENSION. The City may terminate this Agreement, without cause, by giving the Franchisee thirty (30) days written notice of such termination and the effective date thereof. The City may terminate this Agreement, with cause, by giving the Franchisee (10) days written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the City and shall be, but is not limited to, failure to supply the materials, equipment or service specified within the time allowed or within the terms, conditions or provisions of this agreement. The Franchisee may not cancel this Agreement without prior written consent from the Vernon Chief of Police. Section 12. TEMPORARY SUSPENSION. In addition to termination or suspension as set forth in Section 11, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the continued operation by the Franchisee would constitute a danger to public health, safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different. Notwithstanding other notice provisions of this Agreement, the temporary suspension is effective upon the earlier of either receipt or the expiration of 3 days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for termination hearing and all other information required by the Vernon Municipal Code. The temporary suspension shall remain effective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of Police. Section 13. ACCEPTANCE, WAIVER. Franchisee agrees to be bound by and comply with all the requirements of Chapter 4B and this Agreement. By entering into this Agreement, Franchisee waives, to the maximum 182 extent permitted by law, Franchisee's right to challenge the terms of this Agreement and of Chapter 4B under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14. GENERAL TERMS AND CONDITIONS. 14.1 INDEPENDENT STATUS. It is understood that in the performance under this Agreement, Franchisee shall be, and is, an independent operator, and is not an agent, contractor, or employee of City and shall furnish services in its own manner and method. Further, Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Franchisee in its business operations. Franchisee shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 14.2 FRANCHISE NOT AGENT. Franchisee and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 14.3 WAIVER. The City's waiver of any term, condition, breach or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 14.4 NO ASSIGNMENT. The Franchisee shall not assign or transfer any interest in this Agreement without the express prior written consent and approval of City Council. 14.5 COMPLIANCE WITH LAWS. Franchisee shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 14.6 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 14.7 INTERPRETATION. 14.7.1 Applicable Law. This Agreement, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed and construed according to the laws of the State of California. 14.7.2 Entire Agreement. This Agreement, including any Exhibits attached hereto and any documents explicitly referenced herein, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 14.7.3 Written Amendment. This Agreement may only be changed by written amendment signed by Franchisee and the City Administrator or other authorized 183 representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Agreement shall be of no force or effect. 14.7.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. 14.7.5 Choice of Forum. The parties hereby agree that this Agreement is to be enforced in accordance with the laws of the State of California, is entered into and is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 Order of Precedence. In case of conflict between the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the order of precedence is as follows: Charter the City of Vernon, the Vernon Municipal Code, the ordinance granting this Franchise, resolutions of the City of Vernon this Agreement, the City's Request for Proposals for Official Police Towing Services, and Franchisee's Response to the City's Request for Proposals for Official Police Towing Services. 14.7.7 Duplicate Originals. There shall be two (2) fully signed copies of this Agreement, each of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement, and its execution of this Agreement has been duly authorized. Section 15. ADDITIONAL ASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Franchisee certifies and represents that, during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "C". 15.2 BUSINESS LICENSES. Franchisee shall obtain, and pay any and all costs associated therewith, any Vernon Business License, which may be required by the Vernon Municipal Code and all permits, and licenses applicable to Franchisee's operations under this Franchise, which are required of Franchisee by any governmental agency. 15.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Franchisee's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Agreement and/or is 184 paying only the amounts to which Franchisee is properly entitled under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the City of Vernon. If not, the Franchisee shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personal, salaries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchisee hereby represents warrants and certifies that no member, officer or employee of the Franchisee is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES. Except as otherwise provided in this Agreement, all notices required by this Agreement or by Chapter 4B of the Vernon Municipal Code shall be given by personal service or by deposit in the United States mail, postage pre -paid and return receipt requested, addressed to the parties as follows: To City: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 Copies to: Director of Finance City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: Mr. C's Towing of South Gate, Inc. Attention: Jerry Brown, General Manager 4421 Mason Street South Gate, CA 90280 Notice shall be deemed effective on the date personally served or, if mailed, three days after the date deposited in the mail. 185 [Signatures Begin on Next Page]. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a California charter City and California municipal corporation DATED: Mr. C's Towing of South Gate, Inc., a California corporation DATED: By: By: Carlos Fandino, City Administrator Name: Title: ATTEST: By: Name: Maria E. Ayala, City Clerk Title: APPROVED AS TO FORM: Brian Byun, Senior Deputy City Attorney 187 EXHIBIT A REQUEST FOR PROPOSALS EXHIBIT B FRANCHISEE'S PROPOSAL EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Franchisee certifies and represents that, during the performance of this Agreement, the Franchisee and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Franchisee further certifies that it will not maintain any segregated facilities. B. Franchisee agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Franchisee, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Franchisee agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Franchisee agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. 190 EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the agreement of violating employers. 191 ORDINANCE NO. 1260 AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON GRANTING TO MR. C'S TOWING OF SOUTH GATE, INC., A FRANCHISE TOWING SERVICES AGREEMENT WHEREAS, the City of Vernon (the "City") is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California; and WHEREAS, on October 2, 2012, the City Council of the City of Vernon adopted Ordinance No. 1198 adding Chapter 4B of the Vernon Municipal Code to establish a non-consensual franchise towing fee; and WHEREAS, on September 15, 2015, the City Council of the City of Vernon adopted Ordinance Nos. 1231 and 1233 granting U.S. Tow, Inc. and H.P. Automotive & Tow, Inc. a franchise towing services agreement for a term of three years; and WHEREAS, on or about November 1, 2018, the Police Chief issued a Request for Proposals for the City's Franchise Tow Fee Program; and WHEREAS, the City Council of the City of Vernon desires to grant a Franchise Towing Services Agreement to Mr. C's Towing of South Gate, Inc.; and WHEREAS, the City Council of the City of Vernon is authorized by City Charter Section 8.9 to grant a franchise in the City of Vernon to any person, firm, corporation, or other entity and to set terms, conditions, restrictions and limitations by ordinance. THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS: 192 SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. gRrTTnN 9- CRANT nF FRANrHTfiF_ A non-exclusive franchise shall be, and the same is hereby granted by the City Council of the City of Vernon to Mr. C's Towing of South Gate, Inc., its lawful successors or assigns to provide official non-consensual police towing services to the Vernon Police Department. Said franchise is further described and depicted in the Franchise Towing Services Agreement, in substantially the same form as attached hereto as Exhibit A and incorporated herein by reference. SECTION 3: FRANCHISE TERM. The franchise shall endure in full force and effect for three (3) years, subject to the terms and conditions of the Franchise Towing Services Agreement. SECTION 4: FRANCHISE FEE. The grantee of the franchise, during the life thereof, will pay to the City five percent (50) of the gross annual receipts of the grantee arising from the use, operation or possession of the franchise. SECTION 5: VERIFIED STATEMENT OF GROSS RECEIPTS. The grantee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the grantee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The 193 - 2 - grantee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by grantee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this franchise and of all rights of grantee hereunder. However, grantee has the ability to cure under Section 12. Further, the City is responsible for insuring that grantee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this franchise. SECTION 6: DATA COLLECTION AND REPORTING. The Vernon Police Department shall maintain a record of grantee's response times during the term of the franchise and shall submit a written report summarizing such data to the City Council of the City of Vernon at a regularly scheduled City Council meeting in the month of April each year during the term of the franchise. SECTION 7�&: WRITTEN ACCEPTANCE REQUIRED. The franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk. gWrTTnT\T Rom• ARAMnnMM7MT n-P' PRTn-P -P' AMrPTCFC The franchise granted by this Ordinance is in lieu of all other franchises, rights or privileges owned by the grantee, or by any successor of the grantee to any rights under the franchise, for 194 - 3 - providing official police towing services throughout the limits of the City of Vernon as such limits exist at the time of the granting of the franchise or as they may thereafter, except any franchise derived under Section 19 of Article IX of the Constitution as that section existed prior to the amendment thereof adopted October 10, 1911. The acceptance of the franchise granted by this Ordinance shall operate as an abandonment of all such franchises, rights, and privileges within the limits of City as such limits at any time exist, in lieu of which the franchise is granted by this Ordinance. SECTION 94: EMINENT DOMAIN. The granting of the franchise shall not in any way impair or affect the right of the City to acquire the property of the grantee by purchase or condemnation, and nothing contained in this franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's right of eminent domain. SECTION 104:VALUE OF FRANCHISE. By acceptance of the franchise, the grantee, for itself, its successors and assigns, agrees that in any proceeding of any character before any court, commission, administrative body, board of arbitration or other public authority, no greater value shall be placed upon the franchise in excess of the cost to the grantee of the necessary publication and any other sum paid by grantee to the City therefor at the time of acquisition. SFCTTON 11{4-- N0N('0MPT,TANCF_ If the grantee of the franchise granted by this Ordinance fails, neglects, or refuses to comply with any of the provisions or conditions prescribed in this ordinance or the Franchise Act of 1937, and does not within ten (10) days after written demand for compliance 195 - 4 - begin the work of compliance, and after such beginning does not prosecute the work with due diligence to completion, the City, by its City Council, may declare the franchise forfeited. The City may sue in its own name for the forfeiture of the franchise granted pursuant to this Ordinance, in the event of noncompliance with any of the conditions thereof by the grantee, its successors, or assigns. SECTION 1247:CONFORMITY TO RULES AND STATUTORY REQUIREMENTS. The grantee of the franchise granted by this Ordinance shall comply with all of the ordinances and rules adopted by the City Council of the City of Vernon in the exercise of its police powers and not in conflict with the paramount authority of the State. All work undertaken or performed pursuant to the provisions of the franchise shall be of the standard required by law, and by any other body or governmental authority having jurisdiction in the premises. Where not in conflict with State law, or other governmental authority having jurisdiction in the premises, tow services shall be performed in accordance with the rules and regulations and ordinances of the City. SF.rTTnT\T 1 '�a- TT\TTIF.MT\TTFTr7\TTnT\T The grantee shall indemnify and hold harmless the City, its officers, agents and employees, from all liability for damages proximately resulting from any operations under this franchise. SECTION 144:ASSIGNMENT. Grantee shall not assign or transfer any interest in the franchise without the express prior written consent and approval of City Council. Any unauthorized assignment or transfer of Franchisee's rights or obligations under this Agreement shall be null and void and shall constitute a material breach by Franchisee of this Agreement. SECTION 154: PERFORMANCE BOND. 196 - 5 - (a) At the option of the City, grantee shall either (a) reduce or eliminate any deductibles or self -insured retentions with respect to the City, its elected officials, officers, employees, agents, representatives, attorneys, and volunteers; or (b) file with the City Clerk a corporate surety bond running to City and guaranteeing payment of losses and related investigations, claim administration and defense expenses. The bond shall be conditioned that grantee shall well and truly observe, fulfill and perform each term and condition of the franchise, and that in case of any breach of condition of the bond the amount of the penal sum therein shall be recoverable. If City elects option (b) above, Grantee shall file such bond within five (5) days after the adoption of this ordinance. (b) Grantee shall maintain the bond in full force and effect throughout the term of this franchise, at grantee's sole expense. The bond shall be issued by an admitted surety insurer and comply with the requirements of the Bond and Undertaking Law, codified in Code of Civil Procedure Sections 995.010 et seq. This franchise shall be considered a "license or permit" within the meaning of the Bond and Undertaking Law, solely for purposes of application of such law to the bonding requirements of this section. SECTION 16-5:LIABILITY. The grantee of the franchise under this Ordinance shall be liable to the City for all damages proximately resulting from the failure of the grantee to well and faithfully observe and perform any provision of the franchise or any provision of the Franchise Act of 1937. SECTION 1�&7: REPEAL. Any ordinance or parts of an ordinance in conflict with this Ordinance are hereby repealed. 197 - 6 - SECTION 148:SEVERABILITY. If any chapter, article, section, subsection, subdivision, paragraph, sentence, clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more chapters, articles, sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared unconstitutional, or invalid, or ineffective. SECTION 149:BOOK OF ORDINANCES. The City Clerk shall attest and certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk's certification to be entered in the Book of Ordinances of the Council of this City. The City Clerk shall cause this ordinance to be published or posted as required by law. SECTION 3-420: EFFECTIVE DATE. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty- first (31st) day after its passage. APPROVED AND ADOPTED this day of ATTEST: Maria E. Ayala, City Clerk Name: 2019. Title: Mayor / Mayor Pro-Tem - 7 - APPROVED AS TO FORM: Brian W. Byun, Senior Deputy City Attorney 199 - 8 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Maria E. Ayala, City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1260 was duly and regularly introduced at a regular meeting of the City Council of the City of Vernon, held in the City of Vernon on Tuesday, February 5 2019, and thereafter adopted at a meeting of said City Council held on Tuesday, AYES: NOES: ABSENT: , by the following vote: Councilmembers: Councilmembers: Councilmembers: And thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of February, 2019, at Vernon, California. (SEAL) Maria E. Ayala, City Clerk 200 - 9 -