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HomeMy WebLinkAboutJohn C. Vaughn dba Best Towing Services - 2012-08-06J 1. -OF -HUNTINGTON BEACH 2 00 MAIN STREET CALIFORNIA 92648 BOX 70 POLICE DEPARTMENT Tel (714) 960-8811 ROBERT HANDY Chief of Police October 1, 2014 Mr. John Vaughn Best Towing 7472 Warner Avenue Huntington Beach, CA 92647 Dear Mr. Vaughn: The Huntington Beach City Council approved the "Police -Directed Tow Service" contract on August 6, 2012. Pursuant to this contract, the rates, fees and charges that shall be imposed are attached to this correspondence in Exhibit A. The new fee schedule represents an adjustment in the 2013/2014 Los Angeles -Riverside -Orange County Consumer Price Index, All Items, 1982-84 = 100 for All Urban Consumers. Like last year, this year's increase of 1.8% was calculated by using June 2013 and June 2014 (Refer to: http://www.bls.gov/ro9/9230.pdf . Please post the new fee schedule upon receipt of this letter. This change shall be effective from December 1, 2014 through November 30, 2015: As always, should you have issue with these calculations or desire to discuss this further, please feel free to contact our Traffic and Air Support Bureau Commander, Lieutenant S. Bushhousen at 714-536-5661. Thank you in advance for your continued help and cooperation in serving the needs of the Huntington Beach Police Department. - Sincerely, RobertHandy Chief of Police Attachments: "Exhibit A" 2013/2014 CPI (http://www.bls.gov/ro9/9230.pdo C: City Attorney Jennifer McGrath City Clerk Joan Flynn Records Manager Marilu Canas 7C�d7 EXHIBIT A Basic Tow Service (Standard sling or wheel lift truck) $ 148.00 Medium Duty or Flatbed Request $ 169.00 Heavy Duty (3) Axle or larger $ 243.00 Two Ton $ 196.00 Dolly $ 64.00 Rollover minimum $ 64.00 Drop Linkage $ 53.00 Clean-up fee $ 61.00 . (Fee charged to the City shall remain $35.00 by contract) Hazmat fee, per 5 gallon bucket $ 123.00 Winching per hour $ 163.00 Vehicle Storage Vehicles Outside —per day $ 49.00 Vehicles Inside —per day $ 53.00 Motorcycles Outside —per day $ 29.00 Motorcycles Inside —per day $ 37.00 Truck or Motor homes (larger than 20') $ 53.00 Vehicles stored as evidence —outside $ 27.00 Vehicles stored as evidence=inside $ 35.00 Motorcycles stored as evidence —outside $ 21.00 Motorcycles stored as evidence —inside $ 23.00 After hours release 5:00 p.m. — midnight $ 68.00 Midnight — 8:00 a.m. $ 94.00 Minimum Service Call or Drop Fee $ 78.00 Effective December 1, 2014 through November 30, 2015 1-Dec-2014 adjusted increase 2013/2014 price 201412015 Basic Tow Service (Standard sling or wheel lift truck) $145.00 147.61 $148.00 Medium Duty or Flatbed Request $166.00 168.99 $169.00 Heavy Duty (3) Axle or larger $238.00 242.28 $243.00 Two Ton $192.00. 195.46 $196.00 Dolly $62.00 63.12 $64.00 Rollover minimum $62.00 63.12 $64.00 Drop Linkage $52.00 52.94 $53.00 Clean-up fee $59.00 60.06 $61.00 (Fee charged to the City shall remain $35.00 by contract) Hazmat fee, per 5 gallon bucket $120.00 122.16 $123.00 Winching per hour $160.00 162.88 $163.00 Vehicle Storage Vehicles Outside -per day $48.00 48.86 $49.00 Vehicles Inside -per day $52.00 . 52.94 $53.00 Motorcycles Outside -per day $28.00 28.50 $29.00 Motorcycles Inside -per day $36.00 36.65 $37.00 Truck or Motor homes (larger than 20') $52.00 52.94 $53.00 Vehicles stored as evidence-butside $26.00 26.47 $27.00' Vehicles. stored as evidence -inside. .$34.00 34.61 $35.00 Motorcycles stored as evidence --outside $20.00 20.36 $21.00 Motorcycles stored as evidence -inside $22.00 22.40 $23.00 After hours release 5:00 p.m. -midnight $66.00 67.19 $68.00 Midnight - 8:00 a.m. $92.00 93.66 $94.00 Minimum Service Call or Drop Fee $76.00 77.37 $78.00 . Western Information Office, 90 7th St., Suite 14-100, San Francisco, CA 94103 fntormation Staff (415) 625-2270 / Fax (415) 625-2351 LOS ANGELES-RIVERSIDE-ORANGE CO. CA YEAR 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 09/15114 Consumer Price Index, All Items, 1982-84=100 for All Urban Consumers (CPI-U) JAN FEB MARCH APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC 154.3 154.5 154.6 154.7 155.1 154.8 154.5 154.4 154.6 155.7 156.2 157.3 157.7 157.5 156.7 ` 158.3 159.1 159.2 159.8 159.9 159.5 159.4 1� 161.2 161.0 161.1 161.4 161.8 162.3 162.2 7 CJN li- 163.5 164.2 164.6 165.0 166.6 166.2 165.4 N N 167.3 167.9 169.3 170.7 170.6 171.1 171.0 173.5 174.2 175.4 176.2 176.6 177.5 178.9 /1 177.1 178.9 185.2 180.1 181.1 182.2 182.6 181.9 `�\ 183.7 186.5 188.2 187.6 186.4 186.3 187.0 188.5 190.1 191.5 191.9 193.3 193.7 195.2 195.4 197.4 199.2 201.1 201.5 200.7 203.9 206.0 207.5 208.5 210.5 212.4 211.1 `� �- �.. 210.6 212.584 214.760 216.800 217.845 218.596 217.273 ` ® ` 9.373 220,918 221.431 223.606 224.625 226.651 229.033 N ffl-� 0 ® `�-� 9.620 220.719 221.439 221.376 221.693 222.522 223.906 a . _ `�- a 3.643 224.610 228.652 224.620 229.729 225.483 228.916 226.438 225.877 ' 5.639 232.241 233.319 233.367 232.328 \ 1.567 233,441 234.537 236.941 236.866 237.032 236.025 S i.042 238.015 239.783 239.995 239.043 239.346 239,223 1.742 239.887 241.059 242.491 242.437 243.362 243.528 4 _ k ` Table of over -the -year percent increases. An entry for Feb. 2006 indicates th_ , �.,.cyC increase from Feb. 2005 to Feb. 2006_ 0.9 1.1 1.7 1.9 1.5 1.2 2.0 1.9 2.3 2.3 2.6 2.2 1.9 1.6 1.4 1.3 1.7 1.2 1.5 1.5 1.4 1.5 1.2 1.2 1.0 1.2 1.8 1.8 1.6 1.8 1.3 1.3 1.7 2.0 2.2 2.2 3.0 2.4 2.0 2.3 2.3 2.8 2.5 2.3 2.3 2.9 3.5 2.4 2.9. 3.4 3.6 3.5 3.6 3.9 3.8 3.8 3.6 3.2 3.5 3.7 4.6 3.8 3.6 3.2 2.6 2.7 2.7 2.7 2.8 3.2 2.9 1.7 2.2 2.6 2.6 3.0 3.3 3.5 3.6 3.9 3.0 2.1 2.4 2.3 2.1 2.6 2.2 1.7 1.8 1.9 1.8 2.3 3.7 4.0 3.8 3.3 3.3 4.5 5.2 3.7 3.8 4.0 4.8 4.2 3.6 4.1 5.2 5.8 5.4 4.4 5.4 8.1 4.7 4.7 5.4 5.2 5.0 4.3 3.4 . 2.2 2.7 3.2 3.5 3.8 3.5 2.9 2.9 2.9 2.6 2.3 3.5 4.2 3.9 3.1 3.3 3.1 3.7 5.4 5.7 5.1 4.5 3.4 1.0 -0.1 0.0 -1.0 -1.3 -1.8 -2.2 -2.6 -1.7 -1.0 -0.4 0.9 1.8 1.4 1.9 1.9 1.8 0.9 0.9 0.8 0.4 0.7 0.7 1.8 2.3 3.0 3.3 3.1 2.9 2.4 2.4 3.1 2.8 3.0 2.1 2.1 2.0 1.5 1.6 1.6 1.9 2.3 2.2 3.0 2.1 2.0 2.2 1.3 0.9 1.0 1.4 1.3 0.8 0.6 -0.1 0.4 0.8 0.5 1.0 1.4 1.7 1.8 2.0 1.8 SEMIANNUAL 1ST 2ND ANNUAL HALF HALF AVERAGE 154.7 154.6 154.6 156.9 158.1 157.5 159.5 160.5 160.0 161.6 162.9 . 162.3 165.3 166.8 186.1 170.1 173.0 171.6 176.5 178.2 177.3 181A 183.3 182.2 186.7 187.2 187.0 191.5 194.9 193.2 199.2 204.5 201.8 209.3 211.6 210.4 216.260 218.416 217.338 224.377 225.638 225.008 221.943 224.498 223.219 225.491 226.298 225,894 231.606 232.251 231.928 238.807 237.488 236.648 239.229 239.185 239.207 242.122 2.4 1.4 2.3 1.9 1.8 1.7 1.5 1.6 1.4 1.3 1.5 1.4 2.3 2.3 2.4 2.3 3.7 2.9 3.7 3.3 2.1 3.8 3.0 3.3 3.7 2.6 2.9 2.8 1.8 3.1 2.1 2.6 4.4 2.6 4.1 3.3 4.5 4.0 4.9 4.5 3.3 5.1 3.5 4.3 4.2 3.3 3.2 3.3 0.1 3.8 3.3 3.5 1.8 -1.1 -0.5 -0.8 1.3 1.6 0.8 1.2 2.2 2.7 2.6 2.7 1.9 1.8 2.3 2.0 1.1 1.5 0.7 1.1 1.2 Western Information Office, 90 7th St., Suite 14-100, San Francisco, CA 94103 Information Staff(415) 625-2270 / Fax (415) 625-2351 LOS ANGELES-RIVERSIDE-ORANGE CO. CA 09/15/14 Consumer Price Index, All Items, 1982-84=100 for Urban Wage Earners and Clerical Workers (CPI-W) SEMIANNUAL 1ST 2ND ANNUAL YEAR JAN FEB MARCH APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC HALF HALF AVERAGE 1995 149.0 149.2 149.3 149-5 149-8 149.7 149.3 149.2 149.3 149.9 149.2 149.4 149.4 149.4 149.4 1996 150.4 150.9 151.9 152.4 152.3 151.5 152.3 151.9 152.7 153.2 152.9 152.7 151.6 152.6 152.1 1997 153.6 153.6 154.2 154.3 154.0 153.8 153.8 154.0 154.7 155.4 154.9 155.3 153.9 154.7 154.3 1998 155.1 155.0 155.1 155.6 156.2 156.1. 155.9 156.1 156.1 156.8 157.0 157.2 155.5 156.5 156.0 1999 157.8 158.1 158.3 160.1 159.7 158.9 159.2 159.8 160.7 160.7 160.6 160.9 158.8 160.3 159.6 2000 101.3 162.4 163.9 164.0 164.4 164.3 . 165.0 165.3 166.3 166.9 166.6 166.7 163-4 166.1 164.8 2001 167.3 168.3 169.1 169.6 170.5 171.9 171.3 171.1 171.5 171.0 170.7 169-7 169.5 170.9 170.2 2002 171.5 172.8 173.8 174.8 175.4 174.7 175.0 175.6 176.3 176.5 177.0 176.7 173.8 176.2 175.0 2003 177.8 179.6 181.6 180.9 179.9 179.6 179.6 180.5 181.9 181.2 180.5 180.2 179.9 180.7 180.3 2004 181.7 183.4 184.9 185.2 186.8 187.4 186-8 186.5 187.8 189.8 190.3 188.5 184.9 188.3 186.6 2005 188.5 190-3 192.1 194.2 194.6 193.7 194.6 196.4 199.0 200.0 198.4 196.5 192.2 197.5 194.9 2006 198.3 199-9 200.8 202.9 205.0 204.2 204.5 ' 205.0 205.3 203.5 203.3 202.9 201.9 204.1 203.0 2007 204.498 206.632 208.929 210.195 211.145 209.614 209-444 209.240 209.849 211.259 212.844 212.282 208.602 210.820 209.661 2008 213.825 214.231 216.493 217.914 219.702 222.435 223.245 221.230 220.285 218.726 214.083 211.007 217.433. 218.096 217.765 2009 212.454 213.234 213.013 213.405 214.446 216.145 216.128 216.628 217.302 217.474 216.618 216.233 213.783 216.730 215-257 2010 217.290 217.090 218.157 218.475 218.787 218.222 218.367 218.752 218.427 219.339 218.694 219.619 218.004 218.866 21BA35 2011 221.540 222.814 225.770 227.051 226.842 225.461 224.277 224.665 226-096 226.116 225.786 224.444 224.913 225.231 225.072 2012 226.245 227.585 230,281 230.023 230.180 228-917 228.446 230.229 231.085 233.431 230-426 228.940 228.872 230.426 229.649 2013 230-651 232.983 233.200 232.030 232.387 232.378 232.190 232.245 232.817 232.735 231.598 231.594 232.271 232.197 232.234 2014 232.578 233.886 235.500 236.717 236.647 236.880 236-963 236.504 235.201 Table of over -the -year percent Increases. An entry for Feb. 2006 indicates the percentage increase from Feb. 2005 to Feb. 2006. 1996 0.9 1.1 1.7 1.9 1.7 1.2 2.0 1.8 2-3 2.2 2.5 2.2 1.5 2.1 1.8 1997 2.1. 1.8 1.5 1.2 1.1 1.5 1.0 1.4 1.3 1.4 1.3 1.7 1-5 1.4 1.4 1998 1.0 0.9 0.6 0.8 1.4 1.5 1.4 1.4 0.9 0.9 1.4 1.2 1.0 1.2 1.1 1999. 1.7 2.0 2.1 2.9 2.2 1.8 2.1 2.4 2.9 2.5 2.3 2.4 2.1 2.4 2.3 2000 2-2 2.7 3.5 2.4 2.9 3.4 3.6 3.4 3.5 3.9 3.7 3.6 2.9 3.6 3.3 2001 3.7 3-6• 3.2 3.4 3.7 4.6 3.8 3.5 3.1 2.5 2.5 1.8 3.7 2.9 3-3 2002 2.5 2.7 2.8 3.1 2.9 1.6 2.2 2.6 2-8 3.2 3.7 4.1 2.5 3.1 2.8 2003 3.7 3.9 4.5 3.5 2.6 2.8 2.6 2.8 3.2 2.7 2-0 2.0 3.5 2.6 3.0 2004 2.2 2.1 1.8 2.4 3.8 4.3 4.0 3.3 3.2 4.7 5.4 4.6 2.8 4.2 3.5 2005 3.7 3.8 3-9 4.9 4.2 3.4 4.2 5.3 6.0 5.4 4.3 4.2 3.9 4.9 4.4 2006 5.2 5.0 4.5 4.5 5.3 5.4 5.1 4.4 3.2 1.8 2.5 3.3 5.0 3.3 4.2 2007 3.1 3.4 4.0 3.6 3.0 2.7 2.4 2.1 2.2 3.8 4.7 4.6 3.3 3.3 3.3 2008 4.6 3.7 3.6 3.7 4.1 6.1 6.6 5.7 5-0 3.5 0.6 -0.6 4.3 3.5 3.9 2009 -0.6 -0.5 -1.6 -2.1 -2.4 -2.8 -3.2 -2.1 -1.4 -0.6 1.2 2.5 -1.7 -0.6 -1.2 2010 2.3 1:8 2.4 2.4 2.0 . 1.0 1.0 1.0 0.5 0.9 1.0 1.6 2.0 1.0 1.5 2011 2.0 2.6 3.5 3.9 3.7 3.3 2.7 2.7 3-5 3.1 3.2 2.2 3.2 2.9 3.0 2012 2.1 2.1 2.0 1.3 1.5 1.5 1.9 2.5 2.2 3.2 2.1 2.0 1.8 2.3 2.0 2013 1.9 2.4 1.3 0.9 1-0 1.5 1.6 0.9 0.7 -0.3 0.5 1.2 1.5 0.8 1.1 2014 0.8 0.4 1.0 1.6 1.8 1.9 2.1 1.8 1.3 Math calculations to better utilize CPI data Report prepared by Gerald Perrins, regional economist in the Mid -Atlantic Information Office, and Diane Nilsen, regional clearance officer in the National Office of Field Operations, Bureau of Labor Statistics. The Consumer Price Index (CPI) is published as an index number that shows the change in the price of a defined market basket of goods and services over time from a base period which is defined as 100.0. An increase of 7 percent from that base period, for example, is shown as 107.0. Alternately, that relationship can also be expressed as the price of a base period "market basket" of goods and services rising from $100 to $107. Currently, the reference base for most CPI indexes is 1982- 84=100 but some indexes have other references bases. The reference base years refer to the period in which the index is set to 100.0. In addition, expenditure weights are updated every two yearsto to keep the CPI current with changing consumer preferences. -Index numbers are not dollar. values, but measures of the change over time relative to their base period value of 100.0 (for example, 280.0 or 30.3). Index numbers also are commonly used to measure the size and direction of price movements between various time periods such as monthly, quarterly, semi- annual, and annual percent changes. Effective with the January 2007 CPI, the Bureau of Labor Statistics began to publish its consumer price indexes rounded to three decimal places rather than one. As. a result, all percent changes in this document have been calculated from three decimal place indexes regardless of date. However, the resulting percent changes will continue to be published to one decimal place. Note: using three decimal place values to compute percent changes eliminates nearly all rounding errors in the resulting percent change that occasionally occurred when using indexes rounded to one decimal place. . Additional information on this conversion can be found at www.bls.gov/cpi/cpithreedec.httn. What follows are mathematical concepts and formulae that are useful in a variety of index applications. Percent change Movements of an index from one month to another are usually expressed as percent changes rather than as changes in index points, because index point changes are affected by the.level of the index in relation to its base period, while percent changes are not. The following illustration shows a hypothetical CPI one -month change between November 2007 and December 2007 using the 1982-84=100 reference base. Reference Base 1982-84=100 December 2007 ............................... 210.036 November 2007 .............................. 210,177 Index point change..............................0.141 Divided by the earlier index.... -0.141/210.177 Equals.... ............................................. -0.00067 Multiplied by 100...............................0.067 Equals percent change ........................0.1 Over -the -year percent change To arrive at a percent change over an entire year, the beginning and ending periods of a CPI series must always be the same month, such as December 2006 and December 2007, Note: A calculation using January and December data would result in an- 11-month change, not a 12-month/over-the-year change. The calculation below shows the over -the - year change from December 2006 to December 2007 for both the 1982-84=100 and 1967=100 reference bases. The percent change is rounded: Reference Base 1982-84=100. 1967=100 December 2007 210.036 629,174 . December 2006 201.8 604.5 Index point change 8.236 24.674 Divided by the earlier index 8,236 /201.8 24.674/604.5 Equals 0.04081 0.04082 Multiplied by 100 4.081 4.082 Equals percent change 4.1 4.1 There are two critical points to remember: 1. Always use the same reference base period ,for all calculations. If the first point uses the 1982-84=100 base, the end point must also use that base. 2. Calculating an over -the -year percent change, such as December 2006 to December 2007, is not equal to the sum of the over -the - month changes between those two time periods. Annual averages Annual averages are the sum of the 12 monthly data points (i.e. indexes), divided by 12. They represent an average index for a given year, not a particular month. An annual average change should not be confused with the over the year percent change, such as the calculation of the December to December changes mentioned above. The percent change from December 2006 to December 2007 is unlikely to be the same as the change in the annual average from 2006 to 2007. Users should take care to examine the data with which the CPI is being compared to determine whether the annual average or 12- month change is more appropriate for their purposes. In addition, users should note that, for an All - items CPI that is published every other month, the annual average is based on 12 months of data. Many food and energy prices are collected for the "off' months, and the unpublished "off -cycle" indexes are interpolated and used in the annual average. Most All -item CPIs for metropolitan areas are published every other month. Purchasing power The CPI can be used to show how the purchasing power of a dollar changes over time. The purchasing power of a dollar in 2007 was about 97 percent of the purchasing power of a dollar in 2006. This can be calculated as follows: 201.6/207.342 X 100 = 97.2% with 201.6 being the CPI annual average index for 2006, and 207.342 being the 2007 annual average index. This means that the purchasing power of the dollar declined about 3 percent between 2006 and 2007 because of inflation. Or stated another way, a dollar in 2 2007 could only buy 97 percent of what it could buy, on average, in 2006. An automatic "CPI Inflation Calculator" is available online for annual comparisons of purchasing power at www.bls.gov/data/inflation calculator.htm. Similarly, one can calculate equivalent dollar amounts for any two months in different years using a ratio of those monthly indexes. For example, to determine how much money one would need in December 2007 to have the same spending power as $500 in December 2006, multiply the dollar amount by the ratio of the indexes for December 2007 and December 2006: Dec. 2007=210.036 x $500 Dec. 2006=201.8 or, 1.04081 x $500 = $520.41 This means that a basket of goods costing $500 in December 2006 would cost $520.41 in December 2007. Constant dollars For analysis involving long time periods, it is frequently necessary to convert current or nominal dollars into constant or real dollars. This is done by multiplying each dollar amount by a ratio of price indexes, as shown below. Suppose one's salary was $25,000 in 1995, $30,000 in 2000, and $35,000 in 2005. The All items CPI was 152.4 in 1995, 172.2 in 2000, and 195.3 in 2005.. The conversion to constant 1995 dollars would be as follows: 1995: (152.4/152.4) x $25,000 = $25,000 2000: (152.4/172.2) x $30,000 = $26,551 2005: (152.4/195.3) x $35,000 = $27,312 To convert the same data to constant 2005 dollars, use 2005 as the base: 1995: (1953/152.4) x $25,000 = $32,037 2000: (195.3/172.2) x $30,000 = $34,024 2005: (195.3/195.3) x $35,000 = $35,000 In this example, while one's nominal salary rose from $25, 000 to $35, 000 from 1995 to 2005, an increase of 40 percent, the growth in real salary, after adjusting for inflation, was more modest, slightly less than 10 percent. Conversion to other base periods It is sometimes necessary to use index values on a reference base that is no longer published. In these instances, the Bureau provides rebasing factors. A situation that requires such action could be a long-term contract requiring the use of 1957-59=100 as the base period where the parties cannot agree to a successor index. This often occurs when index points rather than percent change are the basis for escalation. In such, a case, contact the. BLS for the specific rebasing factor needed for the computation. Rebasing factors are unique to their index series and can not be substituted. Once calculated, the rebasing factor to move a specific index from a specific base year to another specific base year will not change. To convert the December 2006 (1982- 84=100) CPI-U All items index to the 1957- 59=100 base, use the rebasing factor of 0.2870447. Divide the current index by the rebasing factor to calculate the index on a 1957-59 basis. Example: All items, CPI-U, December 2006, .1982-84=100 201.8 Rebasing factor 0.2870447 Dec. 2006 / Rebasing factor ......... 703.0 All items, CPI-U, December 2006, Rebased 1957-59=100 . 703.0 When new base years are introduced, BLS recalculates each index back to the beginning of that series to provide a consistent stream of data. Using the official series will minimize rounding differences occasionally caused by the rebasing factors. To move from a discontinued index to a current index, the easiest method is to request a historical table from any BLS office. Constructing special CPI indexes and their percent change The Bureau calculates thousands of special indexes that are available online or from either the National CPI Information Office or the eight Regional Economic Analysis and Information (EA&I) Offices. Examples include All items less food and energy, All items less energy, and All items less food. Occasionally, a user needs to estimate a price change that is not published by BLS. For instance, suppose a user needs a CPI measure that includes everything except gasoline. This can be done by estimating a special index, in this case, All items less gasoline. Just remember, this estimate will not be an official CPI, though it can be used to estimate changes in prices for item categories not published by the Bureau. When creating a special index, the relative importance of published indexes is a key component. To reflect the differences in the average amount of the various items purchased, weights are assigned to each item. As the prices of the individual items change, the relative weight of each item is reported in values known asrelative importance. The relative importance for each published index component is available for December of each year. The first step in making a special index is to calculate an adjusted relative importance for the component being removed from All items, in this case Gasoline. Multiply the published December relative. importance of the component index by the index value for the month of interest. Then divide that amount by the component's index for the same month and year as the relative importance. For example, using the December 2007 relative importance data and the December 2007 and February 2008 CPI-U Gasoline component indexes for the U.S. city average (1982-84=100): Relative importance, Gasoline, December 2007....................................... 5.215 Index for Gasoline December 2007 ...................... 256.790 February 2008 ........................ 257.845 (Rel. imp.) 5.215 x (Feb. 2008) = 257.845 (Dec. 2007)_= 256,790 or, 5.215 x 1.004108 = 5.2364 Do the same calculation using the same periods for the other index, in this case All items. The All items adjusted relative importance result is 100.7889, where the original relative importance was 100 and the index rose from 210.036 (December 2007) to 211.693 (February 2008). Next, calculate the base relative importance of the All items less gasoline index. Do this by subtracting the original relative importance of gasoline fromthe original relative importance of the All items index. December 2007: Relative importance, All items, December 2007 ........................ 100.0 Less relative importance, Gasoline, December 2007 .......... - 5.2150 Relative importance, All items less gasoline, December 2007 .... 94.7850 Then do the same with the adjusted relative importances for the second month: February 2008: Relative importance, All items, February 2008 .......................... 100.7889 Less relative importance, Gasoline, February 2008 ............ - 5.2364 Relative importance, All items less gasoline, February 2008 ...... 95.5525 Finally, calculate the percent change between the results for the two months: (Rel. imp. Feb. 2008)( 95.5525) 100 - 100 = (Rel. imp. Dec. 2007)(94.7850) 1.00809 x 100 100 = 0.809 = 0.8% In short, one could estimate that prices for All items less gasoline rose 0.8 percent from December 2007 to February 2008. As before, this is an estimate and does not represent an official BLS index. In. short, the relative importance of a component is its expenditure or value weight, expressed as a percentage of All items within an area. These ratios represent an estimate of how consumers would distribute their expenditures over time. Relative importance ratios cannot, however, be used as estimates of current spending patterns or as indicators of changing consumer expenditures in the intervals between weight revisions, - because consumption patterns are influenced by factors other than price change. These factors include income,variations in climate, family size, and the availability of new and different kinds of goods and services. Discontinued indexes and publication changes There will be occasions where, especially. for longer -term contracts, a specified index may not be precisely available for the duration of the contract. An example of such an occurrence is the index for Washington, D.C.- Md.-Va., which is now part of the larger Washington -Baltimore, D.C.-Md.-Va.-W.Va., Metropolitan area. It is not possible to directly calculate a five-year change starting in 1995 and ending in 2000 since publication of Washington data only stopped in 1997. In its place, data for the Washington -Baltimore consolidated area has been published since 1998. In a case where both parties have agreed upon an index to replace -the discontinued (original) one, the calculation can be performed in two steps. First, for the series of interest, calculate the percent change from the beginning period month and year until an agreed upon month and year where data exist for both the discontinued and the successor (new) series. Adjust the dollar value in the. contract based upon this percent change. The dollar value should be the amount estimated to start on, or closest to, the month and year chosen for the beginning index. Second, choose the end -period month and year for the new successor series.. The month and year you defined as the previous step's end period will now become the first period month and year in this step. Calculate the percent change from this beginning period to the selected end period of the new series. Use the calculated percent change to adjust the contract dollar value from the first step. This is the contract's new dollar amount adjusted for the overlap between the discontinued and successor indexes. In the following example, Index A is now discontinued and the .parties have agreed to use Index B as the successor index. Value of contract in January 1995 ..........$9,000.00 Index A January 1995.................................... 158.7 January 1998.................................... 178.9 Percent change ................................... 12.7 9,000 x (1+ 0.127) ......................10,143.00 Value of contract in January 1998 after adjustment of 1995 amount .......$10,143.00 Index B January 1998.................................... 104.7 January 2000.................................... 110.9 Percent change ..................................... 5.9 10,143 x(1+0.059).....................10,741.44 Value of contract in January 2000 after adjustment of 1998 amount .......$10,741.44 Approximating missing data points Many indexes are published every other month. BLS publishes CPI information for All items and for major components (Food and beverages, Housing, Apparel, Transportation, Medical care, Recreation, Education and communication, and Other goods and services) for 11 metropolitan areas on a bimonthly basis. Some of these metropolitan .areas, as defined by the U.S. Census Bureau, include suburbs or counties that extend across state boundaries. These 11 bimonthly metropolitan areas are available on the following .schedule: Boston -Brockton - Nashua, Mass.-N.H.-Maine-Conn.,- Cleveland-Akron, Ohio; Dallas -Fort Worth, Texas; and Washington -Baltimore, D.C.-Md.- Va.-W.Va.; in odd months (January, March, etc.) and Atlanta; Ga.; Detroit -Ann Arbor - Flint, Mich.; Houston-Galveston-Brazoria, Texas; Miami -Fort Lauderdale, Fla.; Philadelphia -Wilmington -Atlantic City, Pa.- N.J.-Del.-Md.; San Francisco -Oakland -San Jose, Calif.; and Seattle -Tacoma -Bremerton, Wash.; in even months (February, April, etc.). In a few instances, this is a change from prior years and a contract might call for a specific month which is no longer available. If both parties agree, the missing data point can be approximated using the month immediately before and immediately after the missing month. For example, to approximate the June 2007 All items (CPI-U) index for the Washington - Baltimore, D.C.-Md.-Va.-W.Va. metropolitan area, multiply the May index by the July index and take the square root of the product: May 2007 .................. 132.982 July 2007................... 134.442 Product ................. 17,878.3 66 Square root ................ 133.710 Note: data calculated in this way cannot be interpreted as official CPI indexes, as the calculation is based on two data points and not on CPI's aggregation method. Furthermore, if bimonthly CPI data are volatile, then less confidence should be placed in estimates for the missing months. Percent changes based on approximated data should also be considered as unofficial estimates. Examples of volatile series would be apparel, household furnishings and operations, and fuels and utilities. Cost of living comparisons not appropriate Each CPI index represents the change in. inflation for a good or service in the market basket over time for various areas and the nation. However, CPI indexes for one metropolitan area can not be compared with those in other areas to determine where it is more or less expensive to live. It is still possible to calculate the percentage change, that is, how fast or slow prices are rising in a given metropolitan area, but that can not be equated to higher or lower actual costs, as the next example illustrates. Bread was priced in City A and City B. City A City B Price of bread in: September2005 $1.00 $0.50 September 2006 1.50 1.00 Indexvalues (Sep. 2005=100): September 2005 100.0 100.0 September 2006 150.0 200.0 Index point change 50.0 100.0 Divided by the earlier index 50.01100.0 100.0/100.0 Equals 0.50 1.0 Multiplied by 100 equals percent change 50.0 100.0 Note: the price in City B rose at a faster pace than in City A, but the actual dollar price of bread in City A was still 50 cents above City B. Which index should you use? The CPI program publishes data for the U.S., geographic regions, and many metropolitan areas. For each of these, data are available for "All items" as well as for a variety of the components that are aggregated together to become the "All items" index. Each of these many series are published for two population groups: All Urban Consumers (CPI-U) and Urban Wage Earners and Clerical Workers (CPI-Vi). When using the CPI for calculating price change, you must specify one population group or the other since the index values for the two groups will not be the�same. Contracting parties are free to determine what indexes they wish to use, but it is important to note that while the CPI is used for a variety of purposes, it measures only the change in the price of a representative market basket of consumer goods and services. At the All items and individual component levels, only items that would be purchased by consumers are eligible for pricing. Thus, an item Iike commercial rent would not be included in the "rent of primary residence" category. Although BLS cannot make a decision as to which index a user should reference, it has published a reference guide, "Using the Consumer Price Index for Escalation," available at www.bls.gov/cDi/oil998d.htm. This publication and other information such as frequently asked questions, historical data, and rebasing factors are available through the national office's and eight regional offices' Web sites. (See table A.) Table A. Regional Economic Analysis and Information Offices and the National Consumer Price Index Information Office in Washington, D.C. Information Office Web site — Phone Email Boston New York Philadelphia Atlanta Chicago Dallas Kansas City San Francisco Washington, D.C. I www.bls.gov/rol/ (617) 565-2327 (646) 264-3600 (215) 597-3282 (404) 893-4222 (312) 353-1880 (214) 767-6970 (816) 285-7000 (415) 625-2270 (202) 691-7000 jCPI BLSinfoBoston2a bls.g_ov BLSinfoNY�,DbIs.gov BLSinfbPhiladelj2hiaAbls.gov www.bls.goy/ro2/` www.bls.goy/ro3 www.bls.gov/ro4/ www.bls.gov/to5/ BL.SinfoAtlantanb. lsjov BLSinfoChica o a bls.uov BLSinfoDallas&bls.gov BLSinfoKansasCitv(a.bls.gov www.bls.gov/ro6/ www.bls. og v� /ro7/ www.bls,gov/ro9/ BLSinfoSFabls.gQv infoQbls.gov www.bls.gov/cnj/ Alt' fflk 2000 MAIN STREET P.O. BOX 70 CALIFORNIA 92648 POLICE DEPARTMENT Tel: (714] 960-881 1 KENNETH W. SMALL November 26, 2013 Chief of Police Mr. John Vaughn Best Towing a 7472 Warner Avenue = �. Huntington Beach, CA 92647 = a -4c N Dear Mr. Vaughn: - —+ The Huntington Beach City Council approved the "Police -Directed Tow Servi;6e'' contract on August 6, 2012. Pursuant to this contract, the rates, fees and charges that shall be imposed are attached to this correspondence in Exhibit A. The new-kee .r- schedule represents an adjustment in the Los Angeles -Riverside -Orange County Consumer Price Index for 2012/2013. This year's increase of 1.4% was calculated by using June 2012 and June 2013 (Refer to: http://www.bls.gov/ro9/9230.pdD. Please post the new fee schedule upon receipt of this letter. This change shall be effective from December 1, 2013 through November 30, 2014. As always, should you disagree with these calculations or desire to discuss this issue further, please feel free to contact our Traffic and Air Support Bureau Commander, Lieutenant S. Bushhousen at 714-536-5661. Thank you in advance for your continued help and cooperation in serving the needs of the Huntington Beach Police Department. Sincerely, Kenneth W. Small Chief of Police Attachment-. "Exhibit A" 2012/2013 CPI Information C: City Attorney Jennifer McGrath City Clerk Joan Flynn Records Manager Marilu Canas KWS/sb EXHIBIT A Basic Tow Service (Standard sling or wheel lift truck) $ 145.00 Medium Duty or Flatbed Request $ 166.00 Heavy Duty (3) Axle or larger $ 238.00 Two Ton $ 192.00 Dolly $ 62.00 Rollover minimum $ 62.00 Drop Linkage $ 52.00 Clean-up fee $ 59.00 (Fee charged to the City shall remain $35.00 by contract) Hazmat fee, per 5 gallon bucket $ 120.00 Winching per hour $ 160.00 Vehicle Storage Vehicles Outside —per day $ 48.00 Vehicles Inside —per day $ 52.00 Motorcycles Outside —per day $ 28.00 Motorcycles Inside —per day $ 36.00 Truck or Motor homes (larger than 20') $ 52.00 Vehicles stored as evidence —outside $ 26.00 Vehicles stored as evidence -inside $ 34.00 Motorcycles stored as evidence —outside $ 20.00 Motorcycles stored as evidence —inside $ 22.00 After hours release 5:00 p.m. — midnight $ 66.00 Midnight — 8:00 a.m. $ 92.00 Minimum Service Call or Drop Fee $ 76.00 Effective December 1, 2013 to November 30, 2014 U T F LAMP,B FL B R STATISTICS Western Irii,,.mation Office, 90 7th St., Suite 14-100, San Francisco, CA 94103 Information Staff (415) 625-2270 / Fax (415) 625-2351 YEAR 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013, 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LOS ANGELES-RIVERSIDE-ORANGE CO. CA 11/18/13 Consumer Price Index, All Items, 1982-84=100 for All Urban Consumers (CPI-U) JAN FEB MARCH APRIL MAY JUNE JULY AUG SEPT OCT NOV 152.2 152.2 152.5 152.0 151.4 151.3 151.7 152.0 152.7 153.4 152.9 154.3 154.5 154.6 154.7 155.1 154.8 154.5 154.4 154.6 155.2 154.4 155.7 156.2 157.3 157.7 157.5 156.7 157.6 157.3 158.2 158.8 158.4 159.1 159.2 159.8 159.9 159.5 159.4 159.5 159.7 160.5 161.1 160.7 161.0 161.1 161.4 161.8 162.3 162.2 162.1 162.6 162.6 163.2 163.4 164.2 164.6 165.0 166.6 166.2 165.4 165.8 166.3 167.2 167.2 167.1 167.9 169.3 170.7 170.6 171.1 171.0 171.7 172.2 173.3 173.8 173.5 174.2 175.4 176.2 176.6 177.5 178.9 178.3 178.4 178.8 178.3 178.1 178.9 180.1 181.1 182.2 182.6 181.9 182.2 183.0 183.4 183.7 184.0 185.2 186.5 188.2 187.6 186.4 186.3 186.3 186.9 188.2 187.8 187.1 188.5 190.1 191.5 191.9 193.3 193.7 193.4 193.1 194.5 196.3 196.9 195.4 197.4 199.2 201.1 201.5 200.7 201.4 203.1 205.8 206.9 205.6 206.0 207.5 208.5 210.5 212.4 211.1 211.4 211.9 212.9 211.4 211.1 212.584 214.760 216.500 217.845 218.596 217.273 217.454 217.330 217.697 218.696 219.943 220.918 221.431 223.606 224.625 226.651 229.033 229.886 228.484 227.449 226.159 222.229 220.719 221.439 221.376 221.693 222.522 223.906 224.010 224.507 225.226 225.264 224,317 224.610 224.620 225.483 225.916 226.438 225.877 225.991 226.373 226.048 226.794 225.941 228.652 229.729 232.241 233.319 233.367 232.328 231.303 231.833 233.022 233.049 232.731 233.441 234.537 236.941 236.866 237.032 236.025 235.776 237.222 238.104 240.111 237.675 238.015 239.753 239.995 239.043 239.346 239.223 238.920 239.219 239.611 239.940 Table of over -the -year percent increases. An entry for Feb. 2006 indicates the percentage increase from Feb. 2005 to Feb. 2006. 1.4 1.5 1.4 1.8 2.4 2.3 1.8 1.6 1.2 1.2 0.9 1.1 1.7 1.9 1.5 1.2 2.0 1.9 2.3 2.3 2.2 1.9 1.6 1.4 1.3 1.7 1.2 1.5 1.5 1.4 1.2 1.2 1.0 1.2 1.8 .1.8 1.6 1.8 1.3 1.3 2.0 2.2 2.2 3.0 2.4 2.0 2.3 2.3 2.8 2.5 2.3 2.9 3.5 2.4 2.9 3.4 3.6 3.5 3.6 3.9 3.8 3.6 3.2 3.5 3.7 4.6 3.8 3.6 3.2 2.6 2.7 2.7 2.8 3.2 2.9 1.7 2.2 2.6 2.6 3.0 3.5 3.6 3.9 3.0 2.1 2.4 2.3 2.1 2.6 2.2 1.8 1.9 1.8 2.3 3.7 4.0 3.8 3.3 3.3 4.5 3.7 3.8 4.0 4.8 4.2 3.6 4.1 5.2 5.8 5.4 5.4 5.1 4.7 4.7 5.4 5.2 5.0 4.3 3.4 2.2 3.2 3.5 3.8 3.5 2.9 2.9 2.9 2.6 2.3 3.5 3.9 3.1 3.3 3.1 3.7 5.4 5.7 5.1 4.5 3.4 -0.1 0.0 -1.0 -1.3 -1.8 -2.2 -2.6 -1.7 -1.0 -0.4 1.8 1.4 1.9 1.9 1.8 0.9 0.9 0.8 0.4 0.7 1.8 2.3 3.0 3.3 3.1 2.9 2.4 2.4 3.1 2.8 2.1 2.1 2.0 1.5 1.6 1.6 1.9 2.3 2.2 3.0 2.0 2.2 1.3 0.9 1.0 1.4 1.3 0.8 0.6 -0.1 SEMIANNUAL 1ST 2ND ANNUAL DEC HALF HALF AVERAGE 153.4 151.9 152.7 152.3 154.6 154.7 154.6 154.6 158.3 156.9 158.1 15T5 161.2 159.5 160.5 160.0 163.5 161.6 162.9 162.3 167.3 165.3 166.8 166.1 173.5 170.1 173.0 171.6 177.1 176.5 178.2 177.3 183.7 181.1 183.3 182.2 187.0 186.7 187.2 187.0 195.2 191.5 194.9 193.2 203.9 199.2 204.5 201.8 210.6 209.3 211.6 210.4 219.373 216.260 218.416 217.338 219.620 224,377 225.638 225.008 223.643 221.943 224.495 223.219 226,639 225.491 226.298 225.894 231.567 231.606 232.251 231.928 236.042 235.807 237.488 236.648 239.229 1.0 0.8 1.8 1.2 1.5 2.6 2.4 1.4 2.3 1.9 1.5 1.8 1.7 1.5 1.6 1.7 1.4 1.3 1.5 1.4 2.3 2.3 2.3 2.4 2.3 3.8 3.7 2.9 3.7 3.3 2.7 2.1 3.8 3.0 3.3 3.3 3.7 2.6 2.9 2.8 1.7 1.8 3.1 2.1 2.6 5.2 4.4 2.6 4.1 3.3 4.4 4.5 4:0 4.9 4.5 2.7 3.3 5.1 3.5 4.3 4.2 4.2 3.3 3.2 3.3 1.0 0.1 3.8 3.3 3.5 0.9 1.8 -1.1 -0.5 -0.8 0.7 1.3 1.6 0.8 1.2 3.0 2.2 2.7 2.6 2.7 2.1 1.9 1.8 2.3 2.0 1.5 .®J POLICE DEPARTMENT Huntington Beach P.O. BOX 70 City ®f HunCALIFORNIA 92648 Mr. John Vaughn Best Towing 7472 Warner Avenue Huntington Beach, CA 92647 Council/Agency Meeting Held: x ,6 Z Deferred/Continued to: A proved ❑ nditio ally rov �T�❑ Denied , 'ty I Si ure Council Meeting Date: August 6, 2012::1 Departme D Number: PD 12-012 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Kenneth W. Small, Chief of Police SUBJECT: Approve and authorize execution of contract agreements with Best Towing and Transportation Service, LLC, Mandic Motors, Inc. and Metro Pro Towing, Inc. for Police Directed Tow Services Statement of Issue: Chapter 5.66 of the Huntington Beach Municipal Code requires the City to select the persons or business(es) that provide police impound garage and towing services pursuant to an open bidding procedure. The contract agreements will be for a term of no more than five years, subject to an option for five additional years. Financial Impact: None Recommended Action: Motion to: A) Approve and authorize execution by the Mayor and City Clerk of the "Agreement Between the City of Huntington Beach and John C. Vaughn, dba Best Towing Services for Police Directed Towing and Storage Services;" and, B) Approve and authorize execution by the Mayor and City Clerk of the "Agreement Between the City of Huntington Beach and Manic Motors for Police Directed Towing and Storage Services;" and, pq C) Approve and authorize execution by the Mayor and City Clerk of the "Agreement Between the City of Huntington Beach and Metro Pro Towing, Inc. for Police Directed Towing and Storage Services. Alternative Action(s): Do not approve the contracts and direct staff accordingly. Item 20. - I xB -606- REQUEST FOR COUNCIL ACTION MEETING DATE: 8/6/2012 DEPARTMENT ID NUMBER: PD 12-012 Analysis: Police -directed towing is any tow authorized by a law enforcement official, such as an illegally parked vehicle or pursuant to an arrest of the driver. Consensual towing is a tow which is authorized by the owner of the vehicle with a tow company of their choice. A non-consensual tow, sometimes known as "private party impound," is any tow initiated by a person other than the owner of the vehicle or a law enforcement official. For example, a property owner can have a vehicle towed from an apartment complex where a non-resident has parked in a designated resident -only parking area. A non-consensual tow must be reported to the Police Department to ensure that the vehicle is not reported stolen by the owner. This also gives the owner of the towed vehicle a means to determine where their vehicle is located. The City regulates police -directed tow services. The City of Huntington Beach currently has contracts with Mandic Motors, Inc., Metro Pro Towing, Inc., and Best Towing and Transportation Service LLC for police directed towing services. The City Council approved the current Police -Directed Tow Services Contract on July 15, 2002. The agreement commenced on August 15, 2002. The term of agreement was a five (5) year period with an option for a five (5) year extension. On August 16, 2007, the three tow operators, as well as the City, agreed to extend the contract for a five (5) year period. The City Council also adopted Resolution 2007-44, authorizing a one-time 10% increase of rates, fees and charges. Every year following this change the fees have been adjusted according to an increase or decrease in the Consumer Price Index. The current contracts are due to expire on August 15, 2012. The rates, fees and charges that tow operators can impose will continue to follow the current schedule, which expires on November 30, 2012. Refer to the attached current fee schedule for information on the fees. Any future rate increases or decreases will be in accordance with the Police -Directed Tow Services Contract. It allows for an adjustment on December 1st of each year based on any change in the Metropolitan Consumer Price Index for the Los Angeles -Riverside -Orange County, CA area during the preceding year. On May 1, 2012, the City released a Request for Qualifications, soliciting proposals from qualified tow operators. The police department received a total of three proposals, which were from the same tow operators currently under contract with the City. The proposals from Mandic Motors, Inc., Metro Pro Towing, Inc., and Best Towing and Transportation Service LLC were reviewed and evaluated by a committee made up of four Police Department representatives. On July 3, 2012, Code Enforcement Officers inspected the storage yards of Mandic Motors, Inc., Metro Pro Towing, Inc., and Best Towing and Transportation Service LLC. Code Enforcement found all three facilities are being used appropriately and no zoning code violations were observed. All three companies met the towing and storage requirements and were selected by the review committee. All three companies satisfy the insurance requirements and have current permits/licenses as required by state and/or City, including zoning, fire and building. xB -607- Item 20. - 2 REQUEST FOR COUNCIL ACTION MEETING DATE: 8/6/2012 DEPARTMENT ID NUMBER: PD 12-012 Environmental Status: Not applicable Strategic Plan Goal: Maintain public safety Attachment(s): 1. !Agreement between the City of Huntington Beach and Best Towing and Transportation Service, Inc. t�� 2. Agreement between the City of Huntin 3. Agreement between the City of Huntir 4. Memo from Code Enforcement 5. Fee Schedule Beach and Mandic Motors, LLC. Beach and Metro Pro Towinq, Inc. Item 20. - 3 HB -608- 7e-,, ),,) 6 � -: k V / Lz S T ATTACHMEN #1 AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND JOHN C. VAUGHAN, dba BEST TOWING SERVICES FOR POLICE DIRECTED TOWING AND STORAGE SERVICES THIS POLICE DIRECTED TOWING AND STORAGE AGREEMENT ("Agreement") is made and entered into this day of July 16, 2012, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation (hereinafter "City"), and JOHN C. VAUGHAN, dba BEST TOWING SERVICE, a partnership (hereinafter "Tow Operator"), located at 7472 Warner Avenue, Huntington Beach, CA 92647. WHEREAS, the City requires, from time to time, towing and storage services in connection with vehicles which have been determined to be a public nuisance pursuant to the Huntington Beach Municipal Code, or which are in violation of statutes and ordinances relating to parking, traffic, and law enforcement; and Tow Operator represents that it has the managerial and operating personnel and the facilities and equipment necessary to provide the required vehicle towing and storage services to the City on the terms and conditions herein after set forth. NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions herein contained, the parties agree as follows: SCOPE OF SERVICES. A. City hereby designates Tow Operator's storage facilities located at the following address as an "Official Police Garage" and a "Designated Public Garage" for the purposes of California Vehicle Code Section 22658: B. City hereby engages Tow Operator, and Tow Operator accepts such engagement, to furnish towing and storage services for those vehicles which are generally described in the recitals in this Agreement and more particularly described in Tow Operator's proposal dated May 31, 2012. Such services shall be performed in a prompt, efficient, and orderly manner following notification by the City's representative, or by any other authorized officer or employee of the City. 2. DUTIES OF TOW OPERATOR A. Shall respond to the location requested by the City within twenty (20) minutes of receipt of a call from City. If Tow Operator is not able to . respond within the aforementioned response time, it shall notify the City immediately advising the City of the expected time of arrival (ETA). If 12-3258.001/81660 the ETA is unacceptable to the City, the City reserves the right to contact an alternate towing Tow Operator to provide the service. B. Provide deployment of trucks for special events such as DUI check points, street fair and/or parades as requested periodically. Tow Operator shall have the capability with pre -approved subcontractors (pursuant to Section 25 herein), to tow up to 100 vehicles in a five (5) hour period for said special events. Such events will be coordinated with the Tow Operator at least 24 hours in advance. The City reserves the right to assign all contract tow services to a "special event" if required by the size of the event and number of vehicles to be towed. C. Shall not perform any work or services upon any impounded vehicle without first obtaining the owner's written consent to such work or services. Parts or accessories shall not be removed from any vehicle without authorization except as necessary for security purposes. Under such circumstances, the parts or accessories removed shall be listed on the itemized statement and stored in the business office. This Section shall not be construed as prohibiting permittees from making emergency alterations necessary to permit the removal by towing of such vehicle. D. Shall not solicit or receive any contracts or purchase orders for repairs on an impounded vehicle from an owner until the vehicle has been released by the Police Chief, or his designee. E. Shall safeguard all vehicles and other property placed in its possession pursuant to the Agreement. The indemnification set forth in this Agreement shall be applicable to all claims or demands attributable to or arising out of Tow Operator's possession, control and handling of such vehicles and property. F. Shall not bill the City a fee in excess of the rate established by resolution of the City Council for any clean up request resulting from a traffic collision where there is no tow service required, unless otherwise approved. G. Shall maintain a "Designated Public Garage" with 24 hour access for acceptance of tows for storage pursuant to California Vehicle Code Section 22658. Tow Operator may charge a reasonable gate fee for vehicle drop-off between 5:00 p.m. and 8:00 a.m. Tow Operator shall pay non-consensual tow operator for tow service within two (2) business days of receipt of tow. 12-3258.001/81660 2 3. TOW OPERATOR LOT/STORAGE/OFFICE REQUIREMENTS. A. Except as discussed in Sections 4 and 5 of this Agreement, Tow Operator's lot must: 1. Be able to hold a minimum of 200 vehicles on its lot simultaneously. Lighting must be sufficient to afford easy visibility to all areas of the lot. The lot must be in a the proper zone and located within the City Limits. Except as provided in Sections 4 and 5 of this Agreement, the business must comply with all City or county and state standards throughout the time that this Agreement remains in effect, including all permits, licenses or land use approval requirements of the City or any other local, county, state or federal agency to operate its towing service business on the lot. 2. Be completely enclosed with a minimum of six-foot fence topped with wire or some other security device. Security shall be adequate to preclude theft, vandalism or damage by activity while in the carrier establishment. The view to all automobiles must be obstructed from the roadway. No vehicles shall be left parked or stored on the public streets at any time. The business must provide off-street parking for its equipment and be able to accommodate at least six (6) additional vehicles for customer parking. Storage vehicles should be secure away from customer parking and the office area. 3. Contain a storage facility with an enclosed garage capable of holding a minimum of three (3) vehicles, for vehicles that have been ordered impounded by the Police Department as a result of being involved in the commission of a crime or as evidence. Said enclosed garage shall be lockable and accessible to the Police Department on request. Vehicles stored in said garage shall not be removed from protective storage until released by the Police Chief, or his designee. 4. Shall not remove any vehicle from the storage facilities without written authorization from an authorized officer or employee of the City with the exception of private impounds. Be available to accept vehicles 24 hours a day, 7 days a week, 365 days a year, towed pursuant to California Vehicle Code Section 22658. 12-3258.001/81660 B. Tow Operator's Office must: Be posted with a sign listing the rates and charges of all towing and storage services offered. Such sign shall be conspicuously placed in the office or other places where customer financial transactions take place. 2. Be located within the City of Huntington Beach City limits, with a sign posted including the company name, address, phone number and hours of operation, to be clearly visible from the roadway. 3. Be located on the Tow Operator's lot. 4. Be open and staffed with personnel able to conduct business Monday through Friday during normal business hours. 4. COMMENCEMENT OF SERVICES/NON-COMPLIANCE WITH LOT REQUIREMENTS A. Should Tow Operator meet or exceed all lot requirements as set forth in Section 3, Tow Operator shall be permitted to commence services under this Agreement upon execution. B. Should Tow Operator maintain a storage lot within City limits which is legal non -conforming pursuant to the applicable zoning ordinances, yet does not meet the lot requirements set forth in Section 3, Tow Operator shall be permitted to commence services under this Agreement upon execution; however, Tow Operator will be required to comply with all milestone requirements of Section 5 and must meet all requirements of Section 3 within eighteen months of execution of this Agreement. C. Should Tow Operator establish evidence of an ownership or leasehold interest in a parcel which is capable of use as a lot in compliance with Section 3, Tow Operator may not commence services under this Agreement unless and until all milestone requirements of Section 5 have been satisfied, and all lot requirements of Section 3 have been met. COMPLIANCE WITH LOT REQUIREMENTS Tow Operator subject to Sections 4(b) and 4(c) of this Agreement shall submit evidence of the following milestones to the satisfaction of the Chief of Police. A. Submittal of a conditional use permit application or appropriate zoning application and appropriate fee to the City's Planning Department no later than November 16, 2012. 12-3258.001/81660 4 B. Submittal of all requisite permits and appropriate fees to the City's Building Department no later than November 15, 2012 . C. Issuance of a certificate of occupancy and completion of a final inspection no later than November 15, 2012 Failure to submit the requisite evidence as defined above will constitute a breach of contract subject to termination pursuant to Section 11 of this Agreement. The Police Chief may authorize a reasonable extension based on a demonstration of good faith by the Tow Operator. 6. RELEASE OF IMPOUNDED VEHICLES. A. Tow Operator shall release impounded vehicles only upon presentation of an official Police Department Release signed by an authorized officer or employee of the City's Police Department or upon verbal approval by an authorized officer or employee of the City's Police Department. B. Tow Operator shall ensure that vehicles are available for release from impound and storage 24 hours a day, 7 days a week, 365 days a year. Tow Operator must clearly mark its storage facility with a telephone number to call if release is requested after normal working hours. Normal working hours shall be from 0800 hours to 1700 hours, Monday through Friday, with the only exception being on Officially recognized holidays. C. Tow Operator shall advise the Records Bureau of the Police Department of all vehicles impounded by the Police Department and not released after thirty (30) days after the conclusion of the tow rotation. Tow Operator shall identify such vehicles by year, make, model, color, license and vehicle identification number, and shall comply with Section 10652 of the Vehicle Code by notifying the California Highway Patrol, Sacramento, California, by receipt mail. D. If Tow Operator fails to give the notice referred to in Section 10652 of the Vehicle Code, the indemnification provisions of this Agreement shall apply to all claims, demands or suits against the City attributable to or arising out of such failure. E. Tow Operator will, at the request of the City, release any vehicle from storage and/or impound at no cost to the registered owner, unless such liability or responsibility has been acknowledged by the Police Chief, or unless such liability or responsibility is imposed by law. 12-3258.001/81660 7. TOW OPERATOR'S EQUIPMENT. A. Tow Operator shall have available a minimum of six (6) tow trucks with drivers permanently stationed in the City during the Tow Operator's rotation, including 2 flatbed, 3 wheel lifts, and 1 tow vehicle with a GVWR of at least 14,000 lbs. B. Tow Operator shall have available for use special equipment which is required to handle unique vehicles, such as classic or luxury automobiles, and specialized types of vehicles such as motor homes, motorcycles and forklifts. C. Tow Operator shall either have, or have access to through a subcontractor, a tow vehicle capable of towing large trucks. D. Tow Operators shall not employ converted pick-up trucks or other vehicles not specifically designed by the manufacturer for towing other vehicles E. All vehicles used in the performance of the herein Agreement shall contain necessary communications equipment for radio transmissions and reception which comply with all FCC regulations and requirements. City frequencies shall not be used by Tow Operator and all of aforementioned equipment shall be purchased and maintained at Tow Operator's expense. F. All vehicles shall be well maintained and next to new in appearance, with the name, address and phone number of Tow Operator's Huntington Beach location permanently affixed to the vehicle. G. All towing vehicles shall have a cable winch of sufficient size and capacity to retrieve vehicles that may have gone over embankments, or off traveled portions of roadways into inaccessible locations. H. All required tow vehicles shall also have the capability to tow a boat or other trailered item. Tow Operator is expected to possess the standard tools of the trade such as slim jim, dolly, etc. All vehicles shall also conform to and be maintained according to the latest edition of the California Vehicle Code. K. Tow Operator's tow trucks shall be rated, at a minimum, one ton capacity, and each vehicle shall be equipped, operated and maintained in compliance with Sections 24605, 25253, 25300, 27700 and 27907 of the Vehicle Code. 12-3258.001/81660 6 L. Tow Operator shall submit at any reasonable time to a Police Department inspection of all drivers, vehicles, equipment and yards. Such an inspection is required prior to the renewal of any contract. 8. CONTRACTOR'S PERSONNEL A. All personnel must possess the proper State of California Driver's License required to operate all vehicles and equipment required to be used in the performance of the contract. B. Prior to engaging the services of any driver, Tow Operator shall provide such driver copies of all applicable provisions of the Vehicle Code relating to vehicle towing and storage services. In addition, all personnel shall be thoroughly trained in the proper and safe use of all equipment used in doing the necessary work. C. Tow Operator's business operations shall be conducted at all times in an orderly, ethical and courteous manner, and Tow Operator shall use its best efforts to secure and maintain the confidence of vehicle owners and operators. Any and all complaints filed with the Police Department, by a vehicle owner, operator or other patron, against Tow Operator's business operation or employee, shall be thoroughly investigated. At the conclusion of the investigation a recommendation of action shall be forwarded from the Police Chief to the City Manager's Office for approval by the City Council. D. All towing services performed under this contract shall be at the direction of the City representative at the scene. E. All personnel shall wear uniforms which bear the name of the individual and the towing company in a conspicuous place on the uniform. F. All current and future personnel performing services for the City under this contract, prior to commencing work for the City shall: (1) be fingerprinted and photographed by the Huntington Beach Police; and (2) submit the following information to the Huntington Beach Police Department: Name, date of birth, driver's license number, and residence address; 2. The business, occupation, or employment history for three (3) years immediately preceding the date of the application, including permit history; and 12-325 8.001 /81660 7 All criminal convictions or proceedings in which a plea of guilty or nolo contendere was entered, including Vehicle Code violations; G. All personnel shall be fluent in the English language. H. The Police Chief, reserves the right to refuse personnel from performing services under this Agreement if, in the reasonable belief of the Police Chief, the individual: is unfit to be trusted with the privileges granted by said Agreement or has a bad moral character, intemperate habits or a bad reputation for truth, honesty or integrity; or 2. is a person under the age of eighteen (18) years; or has made a material misrepresentation in his application; or 4. has committed or aided or abetted in the commission of any act, or act of omission, which if committed by a permittee would be grounds for suspension or revocation of a permit; or does not possess a valid California driver's license. 9. ROTATING SCHEDULE FOR SERVICE CALLS. A. If, pursuant to other agreements, the City utilizes vehicle towing and storage services in addition to those provided by Tow Operator, City shall use its best efforts to assign requests for towing services on the 15th and last day of the month on a rotating schedule. B. Tow Operator agrees to respond to the location specified in a call for service within twenty (20) minutes after notification by the Police Department. C. If Tow Operator fails to arrive at the location specified in the call for service within twenty (20) minutes, the Police Department will notify Tow Operator of cancellation on that call for service. The next Tow Operator on the rotating schedule will then be notified. D. The City reserves the right to use any towing and storage services, whether or not pursuant to prior agreement, in the event of any emergency or calamity or when contracted services are unavailable for any reason. 12-3258.001/81660 8 10. TERM OF AGREEMENT. The term of this Agreement shall commence on August 15, 2012, and shall continue for a period not to exceed five (5) years with an option for five (5) additional years upon the agreement of both the City and Tow Operator, or upon termination by either party, whichever occurs first. Performance under this Agreement shall not commence until the Tow Operator has obtained the City's approval of the insurance and surety bond required by this Agreement. 11. BREACH OF AGREEMENT; GROUNDS FOR ASSESSMENT OF PENALTIES AND AGREEMENT TERMINATION A. The City reserves the right to terminate any Agreement or assess damages or penalties against the Tow Operator in the event of a material breach of any of the Agreement terms, or any material term of any applicable federal, state or local statute or regulation, which breach is not cured following written notice and a reasonable opportunity to cure. Breaches which are grounds for termination include, but are not limited to: If the Tow Operator practices, or attempts to practice, any fraud or deceit upon the City. 2. If the Tow Operator becomes insolvent, unable or unwilling to pay its debts, or upon listing of an order for relief in favor of Tow Operator in a bankruptcy proceeding. 3. If the Tow Operator materially fails to meet thecustomer service standards established by City and this Agreement over a three (3) month period of time. 4. If the Tow Operator fails to provide or maintain in full force and effect, the liability and indemnification insurance letter of credit or bonds as required by this Agreement. 5. If the Tow Operator willfully fails to provide City with required information and/or reports in a timely manner and upon City request, as provided in this Agreement. 6. Any other willful act or omission by the Tow Operator which materially violates the terms, conditions or requirements of the Agreement or any order, directive, rule or regulation issued thereunder and which is not timely corrected or remedied pursuant to Section 12 of this Agreement. 12-3258.001/81660 9 12. PROCEDURE FOR ADJUDICATION OF BREACHES OF THE AGREEMENT: A. Prior to imposing any sanction or penalty, including termination of the Agreement upon the Tow Operator, the Police Chief shall give the Tow Operator notice of the breach and a reasonable period to correct it. B. The Police Chief shall establish a reasonable notice of cure period. The notice to cure period shall be a minimum of thirty (30) days in all cases (except in cases of emergency where a shorter time may be prescribed consistent with the nature of the emergency). If the breach is not timely cured, the Police Chief shall cause to be noticed a public hearing before the City Council (or refer the matter to a hearing officer, who shall make a recommendation to the City Council) on whether there has been a material breach of the Agreement, and the appropriate penalty. 13. HEARING PROCEDURE A. A full evidentiary public hearing shall be held to determine if the Tow Operator materially breached the Agreement, and what penalty shall be imposed. B. The evidentiary hearing shall be conducted upon a minimum of fourteen (14) days written notice duly given to Tow Operator and published notice provided to the public. Tow Operator may present relevant and appropriate evidence, orally and in documented form. Based on the evidence presented at the hearing, a written determination shall be made whether the Agreement should be revoked or the Tow Operator should be penalized. The hearing body may make any other determinations which are reasonably related to the Agreement. C. Should the hearing body find that there has been a material breach of the Agreement, but that revocation is inappropriate, then it may assess and levy monetary penalties against Tow Operator as set forth in this Agreement. D. Tow Operator shall receive written notice of any action taken following the hearing. E. Pursuant to Section 12 of this Agreement, the Police Chief shall cause the evidentiary hearing to be conducted by a hearing officer or the City Council. If a hearing officer conducts the hearing, then the City Council shall hold a subsequent public hearing to determine if the hearing officer's recommendation should be affirmed, reversed or modified. 12-3258.001/81660 10 F. Tow Operator shall be entitled to initiate an action in state court to challenge the determination of the City Council pursuant to California Code of Civil Procedure § 1094.5 within not more than ninety (90) days of receiving notice of the City Council's action. 14. FORCE MAJEURE; TOW OPERATOR'S INABILITY TO PERFORM. In the event Tow Operator's performance of any of the terms, conditions or obligations of this Agreement is prevented by any cause beyond Tow Operator's reasonable control, such inability to perform shall be deemed to be excused and no penalties or sanctions shall be imposed as a result thereof, provided Tow Operator has notified City in writing within thirty (30) days of its discovery of the occurrence of such an event. In such an instance, the Tow Operator shall have reasonable time, under the circumstances to perform its obligations or to procure a substitute for such obligation which is satisfactory to the City. For the purpose of this Section, causes or events not within the control of the Tow Operator shall include, but not be limited to acts of God, strikes, sabotage, riots or civil disturbances, epidemic, labor disputes, freight embargoes, explosion, natural disasters such as floods, earthquakes, landslides and fires, rationing, and power or communications failures, but shall not include financial inability of the Tow Operator to perform or failure of the Tow Operator to obtain any necessary permits or licenses from other governmental agencies or the right to use the facilities of any public utility where such failure is materially due to the acts or omissions of the Tow Operator. 15. REPRESENTATIVES OF THE PARTIES AND SERVICE OF NOTICES. The Police Chief, or his designee, shall be responsible for the administration of this Agreement. The Police Chief is authorized to issue to Tow Operator directives concerning policies and procedures to be implemented in connection with the towing and storage of vehicles. In the event of dispute between the parties as to the nature and extent of the services to be performed hereunder, or the level and manner of performance, the determination made by the City Manager, or his designee, shall be final and conclusive as between the parties. Formal notices, demands and communications to be given hereunder by either party shall be made in writing and may be effected by personal delivery or by mail. The representatives of the respective parties who are authorized to administer this Agreement, and to whom formal notices, demands and communications shall be given are as follows: To CITY: Police Chief City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 12-3258.001 /81660 11 To TOW OPERATOR: Best Towing Service John Vaughan 7472 Warner Ave Huntington Beach CA 92647 If the name of the representative designated to receive the notices, demands or communications, or the address of such person, is changed, written notice thereof shall be given within five (5) working days of said change. 16. TRANSFER OF OWNERSHIP. Tow Operator shall not sell or transfer any rights or obligations under this Agreement without the written authorization of the Police Chief, except the following transferees or successors shall be entitled to such transfer of permit: A. Duly qualified representatives of permittees regularly appointed by courts of competent jurisdiction, assignees for the benefit of creditors, and spouses or children of deceased permittees. B. The surviving partner or partners of a dissolved partnership. C. A new partnership consisting of the members of a predecessor partnership, plus their spouse or spouses of any such members. D. A new corporation, organized and controlled by an individual or unincorporated permittee for the purpose of acquiring, or which has acquired the assets of the business previously owned and operated by such permittee. E. Upon dissolution of a closely held corporation, the stockholders to whom the assets are distributed. 17. INDEPENDENT TOW OPERATOR STATUS. The parties agree that the performance of the Tow Operator's services hereunder shall be in the capacity of an independent tow Operator, and that no officers, agents, employees, or subtow operators of the Tow Operator have been, are or shall be employees of the City by virtue of this Agreement. The Tow Operator shall so inform each individual or entity which is hired, retained or engaged to perform any services under this Agreement. 18. RATES, FEES AND CHARGES. A. City shall have no responsibility or liability to Tow Operator for payment of any costs, charges or expenses incurred by Tow Operator for towing or storing any vehicles pursuant to the terms of this Agreement unless such liability or responsibility has been acknowledged in writing by the Police Chief or his designee, or unless such liability or responsibility is imposed by law. Tow Operator shall have the right to salvage vehicles removed from private property pursuant to this Agreement, subject to compliance with all applicable statutes and regulations. 12-3258.001/81660 12 B. The rates, fees and charges imposed by Tow Operator for towing or storing any vehicles pursuant to the terms of this Agreement shall not exceed those which, -are at any time approved by resolution of the City Council of the City of Huntington Beach. Commencing on December 1, 2001, the fee established by resolution shall be adjusted on December 1st of each year based upon the change in the Metropolitan Consumer Price Index for the Los Angeles -Riverside -Orange County, CA area during the preceding year. The Police Chief shall then adjust the fees set forth in the resolution by such percentage change. The adjusted fee amount shall be rounded to the next highest dollar, and this amount shall constitute the fee authorized by Huntington Beach Municipal Code Chapter 5.66. Should the Consumer Price Index be revised or discontinued, the Police Chief shall use the revised or a comparable index as approved by the City Council. C. Rates, fees and charges shall be posted in a conspicuous location at Tow Operator's place of business and may be collected by Tow Operator from a vehicle owner or property owner at the time he or she desires to effect the release of the vehicle from Tow Operator's storage facilities. D. Should there be any dispute between the Tow Operator and a vehicle owner or property owner over rates, fees and charges imposed for services rendered under this Agreement, such dispute shall be decided by the City Manager, or his duly authorized representative, and the Tow Operator shall make no demands upon the vehicle owner or property owner for a sum in excess of the amount determined to be reasonable by the City Manager, or his authorized representative. The City Manager or his representative may hold an administrative hearing if any party to the dispute so requests. E. Tow Operator shall furnish to the person authorizing the towing service, or his agent, an itemized statement of services performed, including labor and special equipment used in towing the vehicle and the charges made therefor upon the request of: 1. The registered owner; or 2. The legal owner; or 3. The insurance carrier of either (a) or (b); or 4. The duly authorized agent of any of the foregoing. The permittee shall furnish a copy of such statement to any person authorized to receive the same without demanding payment as a condition precedent. 12-3258.001/81660 13 19. LETTER OF CREDIT A. The Tow Operator shall establish a case deposit or letter of credit in favor of the City in the sum of $50,000.00 and in the form approved by the City Attorney. The letter of credit shall serve as security for the faithful performance by Tow Operator of all the provisions and obligations of the Agreement. B. If within thirty (30) days following receipt of written notice from the City of Two Operator's failure to pay City an amount owing under this Agreement, Tow Operator has not paid such amount as is due and owing to City, the letter of credit may be assessed by the City upon five (5) days prior written notice to the Tow Operator indicating the intention of the City to draw upon the letter of credit, the amount to be drawn and the reason therefor. The City may assess the letter of credit for purposes including, but not limited to: Reimbursement of costs borne by City to correct violations not corrected by Tow Operator, after due notice and opportunity to cure. 2. Monetary remedies or damages assessed against Tow Operator due to breach of the Agreement after due and opportunity to cure. C. Tow Operator shall deposit a sum of money sufficient to restore the letter of credit to the original amount within thirty (30) days after notice from City that an amount has been withdrawn from the letter of credit, specifying the date and amount of the withdrawal. 20. ALTERNATIVE REMEDIES. Remedies provided for in this Agreement are cumulative and in addition to other rights the City may have at law or equity or under this Agreement, which it may exercise at any time. In no event shall the amount of any bond or letter of credit be construed to limit Tow Operator's liability for damages. 21. REGULATION. Tow Operator shall comply with all state statutes and local ordinances, shall make all reports required by the Vehicle Code of the State of California, and shall follow all reasonable rules and regulations which the Police Chief of the City may from time to time prescribe governing the conduct of Tow Operator's operations under this Agreement. 12-3258.001/81660 14 22. RECORD KEEPING AND REPORTING. Tow Operator shall keep records on all vehicles handled by Tow Operator pursuant to this Agreement. Tow Operator shall record the following: 1. Time of receipt of call. 2. Location of call. 3. License number, make and model of vehicle. 4. Date of release. 5. Person or firm to whom released. 6. Charges imposed. 7. Police case number, if assigned. Said reports shall be submitted in writing in a form acceptable to the City. Tow Operator will provide access to City upon demand for auditing purposes. 23. CITIZEN COMPLAINTS. A. Tow Operator shall establish written procedures for receiving, acting upon and resolving citizen complaints without intervention by the City consistent with the Tow Operator's complaint handling procedures shall be designed to accomplish the following: Receipt and acknowledgment of any complaint made in person or by telephone within twenty four (24) hours, regardless of the time the complaint is made. 2. Acknowledgment of any complaint received by mail at Tow Operator's office within ten (10) business days of the date such compliant is made. B. In the event of a dispute between the citizen and Tow Operator regarding the bill, Tow Operator shall promptly investigate the dispute and report the results to the subscriber. In the event the dispute is not resolved to the citizen's satisfaction, Tow Operator shall inform the City of its complaint procedures. C. Tow Operator shall respond within two business days to complaints made or referred by City. 24. WORKER'S COMPENSATION INSURANCE. Pursuant to California Labor Code Section 1861, Tow Operator acknowledges awareness of Section 3700 et seq. of said Code, which requires every employer to be insured against liability for workers compensation; Tow Operator covenants that it will comply with such provisions prior to commencing performance of the work hereunder. 12-3258.001 /81660 15 Tow Operator shall maintain workers compensation insurance in an amount of not less than One Hundred Thousand Dollars ($100,000) bodily injury by accident, each occurrence, One Hundred Thousand Dollars ($100,000) bodily injury by disease, each employee, Two Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit. Tow Operator shall require all subcontractors to provide such workers compensation insurance for all of the subcontractors' employees. Tow Operator shall furnish to City a certificate of waiver of subrogation under the terms of the workers compensation insurance and Tow Operator shall similarly require all subcontractors to waive subrogation. 25. INSURANCE. In addition to the workers compensation insurance and Tow Operator's covenant to indemnify City, Tow Operator shall obtain and furnish to City: A. A policy of general public liability insurance, including motor vehicle coverage covering the services. Said policy shall indemnify Tow Operator, its officers, agents and employees, while acting within the scope of their duties, against any and all claims of arising out of or in connection with the services, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name City, its officers, and employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the services shall be deemed excess coverage and that Tow Operator's insurance shall be primary. B. Automobile liability insurance covering all vehicles used by Tow Operator to fulfill the herein Agreement, with minimum limits of liability of One Million Dollars ($1,000,000) combined single limit coverage against any injury, death, loss or damage due to wrongful or negligent acts or omissions by the Tow Operator and/or his employee and/or subtow operators. C. "On -Hook" liability insurance with minimum limits of Two Hundred Fifty Thousand Dollars ($250,000). D. Garage keeper's liability insurance with minimum limits of One Million Dollars ($1,000,000). 12-3258.001 /81660 16 All insurance required hereunder shall be issued by a company rated "A" or better in Best's Key Rating Guide and authorized to transact business in the State of California as an admitted surety insurer. 26. CERTIFICATE OF INSURANCE. Prior to commencing performance of the work hereunder, Tow Operator shall furnish to City certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall provide the name and policy number of each carrier and policy, and shall state that the policy is currently in force and shall promise to provide that such policies will not be canceled or modified without thirty (30) days prior written notice to City. Tow Operator shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by City. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of CITY by Tow Operator under this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. Tow Operator shall pay, in a prompt and timely manner, the premiums on all insurance herein above required. 27. FAILURE TO PROVIDE INSURANCE. The City may, without prior notice, immediately suspend or terminate this Agreement if, at any time, the Tow Operator fails to provide or maintain the insurance required hereunder. 28. INCREASE IN COVERAGE. Nothing contained in this Section shall be deemed to preclude the City, after consultation with other law enforcement agencies, from requiring Tow Operator to increase the amounts of insurance coverage specified herein, or to obtain and maintain other types of insurance coverage, in order to protect the interests of the City and its vehicle owners and operators. Tow Operator shall comply with such new or additional requirements within a reasonable time after receipt of City's written request. 29. INDEMNIFICATION. Tow Operator hereby agrees to protect, defend, indemnify and hold harmless City, its officers, elected or appointed officials, employees, agents, and volunteers from and against any and all, claims, damages, losses, expenses, judgments, demands for defense costs, and consequential damage or liability of any kind or nature, however caused, including those resulting from death or injury to Tow Operator's employees and damage to Tow Operator's property, arising directly or indirectly out of the obligations or operations herein undertaken by Tow Operator, caused in whole or in part by any negligent act or omission of the Tow Operator, any subtow Operators, anyone directly or 12-325 8.001 /81660 17 indirectly employed by any of them or anyone for whose acts any of them may be liable, including but not limited to current active or passive negligence, except where caused by the active negligence, sole negligence, or willful misconduct of the City. Tow Operator will conduct all defense at its sole cost and expense and City shall approve selection of Tow Operator's counsel. City shall be reimbursed for all costs and attorney's fees incurred by City in enforcing this obligation. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Tow Operator. 30. SUBCONTRACTING, DELEGATION AND ASSIGNMENT. A. Tow Operator shall not delegate, or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of the Chief of Police. Failure to receive prior approval shall be grounds for immediate cancellation of the herein Agreement at the option of the City Council. B. Tow Operator may use subcontractors only after receiving written approval from the City. C. Any authorized assignment, delegation or subcontract shall be made in the name of the Tow Operator and shall not bind or purport to bind the City and shall not release the Tow Operator from any obligation under this Agreement. 31. COMPLIANCE WITH STATE LAW. A. Tow Operator shall comply with Sections 22523, 22524, 22669, 22670, 22671, and 22850 through 22856 of the Vehicle Code which relate to the removal, storage and disposition of abandoned vehicles and liens of garage keepers. B. Tow Operator shall keep fully informed of and comply with all City, County, State and Federal laws, ordinances and/or regulations which are applicable to the Tow Operator and/or those engaged or employed by the Tow Operator in doing the services to be provided by Tow Operator pursuant to the herein agreement, including but not limited to the handling of vehicles, lien sales with outstanding parking penalties, owner notifications, removal, storage and disposition of abandoned vehicles, etc. C. Tow Operator shall obtain and maintain all permits and licenses, pay all charges and fees, and give all notices required by city ordinances or other laws relating to the performance of the herein Agreement. 12-3258.001/81660 18 32. NON-DISCRIMINATION. A. In the performance of this Agreement, Tow Operator shall not discriminate against any member of the public, employee, subtow Operator, or applicant for employment because of race, color, religion, ancestry, sex, national origin, handicap or age. Tow Operator will take affirmative action to ensure that members of the public are served, subtow operators and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin or age. B. The provisions of paragraph A above shall be included in all solicitations or advertisements placed by or on behalf of Tow Operator for personnel to perform any services under this Agreement. City shall have access to all documents, data and records of Tow Operator and its subtow operators for purposes of determining compliance with the fair employment and non- discrimination provisions of this Section. 33. PERMITS AND LICENSES. Tow Operator shall obtain and maintain during the term of this Agreement all necessary licenses, permits and certificates required by law for the conduct of Tow Operator's activities and for the provision of services hereunder, including a business license issued by the City. 34. ADVERTISING. Contractor shall not display or use any signs, advertising materials, logos, etc., which indicate that the Contractor is an official towing service for the City of Huntington Beach without written authorization of the City. A designation of "Official Police Tow" or similar language is not acceptable without prior written consent. 35. CONFLICT OF INTEREST. The parties agree that, to their knowledge, no member of the City Council, officer or employee of the City has any interest, whether contractual, non -contractual, financial or otherwise in this transaction, or in other business of the Tow Operator, and that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all such information will be made in writing to the other party, even if such interest would not be considered a conflict of interest under applicable laws. Tow Operator covenants that it has, at the time of execution of this Agreement, no interest, and that it shall not acquire any interest in the future, direct or indirect, which would conflict in any manner with the performance of services required hereunder. Tow Operator further covenants that, in the performance of the services hereunder, no person having any such interest shall be engaged or employed. 12-3258.001/81660 19 36. RESOLUTION OF DISPUTES. A. Disputes regarding the interpretation of application of any provisions of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between parties. B. Disputes regarding the precipitating cause for any removal, seizure or impound of a vehicle directed by the Police Department shall, to the extent feasible, be resolved by the Police Department Station Commander pursuant to Division 11, Chapter 10 of the Vehicle Code commencing with Section 22650 thereof; provided, however that this procedure shall not apply to removal of vehicles pursuant to Sections 22660 through 22668, inclusive, and Sections 22655, 22658, or 22710 of the Vehicle Code. The dispute shall be referred to the attention of the Police Department Station Commander by the aggrieved party within ten (10) days after the disputed removal, seizure or impound. A hearing shall be conducted by an authorized member of the City's Police Department within forty-eight (48) hours. Tow Operator shall abide by the decision rendered. 37. AGREEMENT NON-EXCLUSIVE. The City reserves the right to contract for towing and storage with more than one Tow Operator. 38. AMENDMENTS. This Agreement supersedes all prior proposals, agreements and understandings between the parties and may not be modified or terminated orally, and no modification, termination or attempted waiver of any of the provisions hereof shall be binding unless in writing and signed by the party against whom the same is sought to be enforced. REST OF PAGE NOT USED 12-3258.001/81660 20 39. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. JOHN C. VAUGHAN, dba CITY OF HUNTINGTON BEACH, a BEST TOWING SERVICES, a partnershi municipal corporation of the State of California C 11A print name F."101:�� print name air OVED AS TO^FORM: "1 ������ A orney INITIATED AND APPROVED: I Police Chio-€-/,27 J.2, 12-3258.001 /81660 21 ACORD. C=RTWICATE OF 'LIABILITY INSURA ^NCE 13 THIS CERTIFICATE IS ISSUED AS A NII OF INFORMATION za—Anc. Sar.7ica ONLY AND CONFERS NO RIGHTS GPCN THE CERMFICATE HOLDER. THIS CS-A-IFICATE DOES NOT ANVEIND, EXTEND DR Caiznczai Licu=za 0073s?59 ALTFR THE ^,0VEiRJAGr= AFFORDED BY T;< POLICIES EIELBit 907 B Ca rll2c Spr=qm ,Road Ca mril�c, MA INSURERS AFcOROM COVERAGE NAIC# SUST TCW== f, TRANSPORTATZLIN j.3Lj7_- A, Illso-4-lb.I.CZ cot�_marz Op -A-- HU17TIKGTON SBAC-_-, CA 9264? �.. �WRZKAL�C2 THE ­_�C ES CNSUPED ANCE LIGI5rlUW _ N HAVE B�SSI TC HE ED NAMED A __�VE FOR 7-iK-4- � PERT ANY R­,I�R ZMENT, 7E--m -_R C CNr_ TiGN 0- ANY CSN17RACT vR OTI-EP _lCCV.W_NlT VOTH ESPEC' WHIC4 T,415--. +-,IFICAT-'AAI1 ME TSSU57 =-p 4 MA'-: .0 INEjFZANCr Ai;=CRDED 5­ THE POLICES, -SrEN IS S.13JECT ALL ­E -5RIAS, iXCL�_Sl .0114S *4° -ONDITICNS CF Sd;-- "Ty 17 ON, t EXP.­ nE�NL AGQR�,.A -T- APFL -EP PRn, ccum.lEr �l I �l A'� IIOVr, 4--C�-UTGS S.RAGE W- d Un eAAr-Z 1 LMDAG-LA =Ll� occurR�'llcr � om__- ai `ON aAdY PAG P iCUUME.-OCS WV3 5006.45 01 04 l01/;012 e4/01/2u13 000, 000 C;-EA&E­UpLu-­1,000,000 31T=17 _4;uGD 3MLOW 7-3 A=3D AS =DITIONAL INSURED, A242' :NCL=X5 WAIVS2 OP ZUZROQATICN a.1A31ta$FlFl:mmAHfwl:w =� CITY CF 2PI-17TINGTON BjfCR AT"Tlll. RISK 51ApAGEm:-a7.' lacc MR= 871133T 7-ITAI-TNG-10IR BRAcil CA 92648 ;tam:"U 1 LATE --FRACP. �_ '39V1.'-G k-ZURER AML TO 6W CVya&T�-N OR U. O_UTY OF AW Y NZ 00N -IHM I$UREk M3 AGEN fS OR APPROVED AS TO FORM JENNIFER McGRATH, City Attorney ?-k 7131/ 2-10 f -z- By Paul D'Alessanc6o Assistant City Attorney IA/ Aq-ORP, CERTIFICATE OF LIABILITY lNSURANR`- Fuz- AS A MA-IFF CW WORGN r,u'-Ir Amr. cm4FmER-s NO PJGHrel URGH ""HE --iLm:FICATE HOLZ=-R -FIS CERTIFIICUS OCC3 -40T AMILT40, EXT=-Nv C-% A -cmmo �-C7357!sl ALrl5R THE COMRAGE -fFU'RDEZ B" 7HE F4�L4'E$ BELOW C=ur-llo' CA -MVREPS' AF= Mu M Z' BEST TAKTRG a TRANS pel BTA-17ow NA- ,;`ELR k x7cswl- -3 Y-RID L. BAR Tl ci� C 7471 WARNMR WMlr,-z TER mrw�. cA 92i4-f ,S,JF070 T-E A$LKE-L- --A;A'nAA*Vf FCR Riou!RPAE,�'? CR C'ICNVE- 7.'J' Cr A'V �:CNTRA- �R 07- E-51 MT}i Sr = - -S --cS C AT, E MAY S-u- cq -Z C-R '7 lZa It A.7 �t.1®26 R� E S �00 oqo X GZ LWNU- 4 L 0-1,1ip 5541=- S4 4 0" 11) PMR 'ME, -_'000� 000 S DZDV I.TIM �qr"Evsw--a Tez CMTY 0� MRMINOV'IN 327LC3 �-s HAM : All ILAZA:T=ONArlauRED 'EEBH A=I-CMM M.RALGEK2W1�33 =ZRxc- "MUM COS. OGC - L-OCAT X� 83 V Ay '- OR IIT2 '-OD::L- -V 1 —0- 000 ERI -RXD 7-.=- -M.- .1 e - r-TRY -- i ZTS ARSa 3'�F7:CSF zcno MAIN 3-TRY77 INUNT=i GTON BRACE, CA APPROVED AS TO FORM JENIFER McGRATH, CitvAttozvq f Lt '7/31/1,* Loll. By Paul D'AlessamJvo Assistant City Attornsy C 11 f G 0 THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CARE.-VUy. cc 20 10 i.0 -C;3 F-MUMItroliv?f cc ;::farlcu F= as iun--W v G 011,lwwc C -MMEFC;A� A T "'ItQ 2; D 1 c W 2-anoard `� a B95T 7PAMP,----- W n2.rS-r.d :3V r--I - SCHEDULE -c entryX-jz9ats M-,rmat_M wz;mpiem th�s enc:�r�vrn, om -. --e S"c',An a, �r, e 2f a WW) I S A I h S U Rd E S ac Li o r, _22 3 ..-__-cc..-__-cchc "FZ�:_,r ! OT _ k, �-O�vn 5n Sched'we. --u! cnsv -mfl esrzzt -a JabAliv w rg cuT_ ur crguing cp�.ati., nz ncraa"let: fi- t-3, m-urrd G—MACRX21-FAR: D'Zn!= PRIVART -1A3 -..I, 010, 000 - 745: - WAMBW FU=12: _A. 3817N'5v9ZD UCTORZ L! VVJ",T?,Y- S S 9 0 0 L::!A;I, T APPROVED AS TO FORM JENNIP R McGRATH, City Attornf p "t fA,,-� 3, By Paul D'Alwsmtjw 7/7 //,?-o Assistant City Attorney Best Tcwine ACP BA 780SS47226 5/24/2r;12 Aoraiticnal insured, including waiver of subrogation. The City of Huntington Seach 20CC Main Street Huntington Beac n, CA �-3i4S Attachment to certificate of insurance issued 5/29/25a2 The r ty, it's officers, elected or appointed fEp Is _ _ oyees, agents, and rolunteers are to be covered as addtional insured's cy separate attar ned eneorserrent(s) as respect, Nabiflty arising out of action performed by or on behalf &the contractor, products and Cupie_ed operations of i ie contractor, cruises otsr-, d, occ.---ped or used by the contractor, cr automobiles owed lease- r borrowed by the contractor The coverage s-ait contain no spe _i limltat,frm on the Scope of proteL on afforded to the City. S- SATE (,IF '--LFQRNfA GLSINEC, TRAV4SPORTATEON ANE HOUSING AGENn' DEPARTMENT OF MOTOR VEHICLES fV10—n.'R CARRTE-- SE-9VICES ---P—NC- TVIS GeL71 RO 'C'x K237-- Sac,arnentu. CA 94232-3700 BLs,rT W- ANDIRANTSPOR-ATION 1 0 IN6 7 1 1N AF, N.- ER E TTINGTON Bj� NCH. C A 92647 MOTOR CARRIER PERMIT Puehc Scme= Valid Valid DU RTC, Of MOTOR WHICLES From; Through: Mcnoz Carrier Sc:-v�--,-s Branch P BOX 113-2370 e --acramerto. CA, 9-1-31-33",-1) CA#' 10337002 The carrier mrmej tact thi,v tt-nlj' '­,j- 7�-,de W­Tj�7' -n� n � o)a.!M= ofmitlUr .1 DC.'Mit 41 110-=nt aS e-��Irr:Z7 ofnropertv as de'-Ire�f in - xtt �aoz --c'wn 34o— BESTTOV-ING AND TP-AINSPORATION met the requir=,jentsind pii,! Fh.: aonretpriwc,�--eS- i,-granwd --Triw un 7472 W--kRNER A"VT HU�qTINGTONBEACH. CA 9264' For Hire - Full Year Accown', 460162 i Tech 1U HB Limited Liability Company SeMlence Aoll Pair`: 11 'IMPORTANT REMINDERS"' :fyoud R a, 7, e---u-ation iwe, plc. e Abn--a an (ri,!inm atiplica-1.1on and cht�ck:he 'cur irlsun. nalst remainv',ifid -.I'be tcnm ofpur ri-rna -n a suspcnion aeiiun IFUt' occur. I Chmfwcls to 11cci are :10 r to bc reported -Tait renu',.�, cntits a ne'w C'%:!� and appnczaion. i-'.-.- another Carr;.-r Pe—nin f0 110 funacr op'rae- i motor (n1rrn:T oft'mecru fnu.-t submit i form. 6. J-oi -haiiacs 'm zill-� udJre,_, bu!sinc- narrt-e, offic'�rs' 0, amhorizdd rcpT-zent4-tive s namcasc torrirfl—w z1fic 'M)0;o of 'h i Re ittrrn. Chan in" -CMU rene'WIM ! i erndd rn&, be iubminted an your r-nne.,aj .1prilication., Y1 u may doomload ibtm. ilopi ffie 'nac, net at wwv'.dnl� or 'urth-.manon. �tv --ad:ma: f9 16) 6--s 1 Cal i forma It eta, e lephcne S cr," tce 1-or the deaf or thcarinn rtaired -�i cn, T 1-- L trorn Vorce phones 100 7 MC P � t - A. Public Sefvice Agerwy City ®f Huntington Beach 2000 Main Street ® Huntington Beach, CA 92648 (714) 536-5227 ® www.huntingtonbeachca.gov Office of the City Clerk Joan L. Flynn, City Clerk August 8, 2012 Best Towing Service Attn: John Vaughan 7472 Warner Ave. Huntington Beach, CA 92647 Dear Mr. Vaughan: Enclosed for your records is a copy of the "Agreement Between The City of Huntington Beach And Best Towing, Inc. for Police Directed Towing and Storage Services." Sincerely, JF:pe Enclosure G: followup:agrmtltr Sister Cities: Anjo, Japan 6 Waitakere, New Zealand ATTACHM-ENT #4 HB -687- Item 20. - 82 ®�� CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION Planning and Building Department TO: Sergeant John Haught, Traffic Bureau FROM: Michael Fuentes, Senior Code Enforcement Officer DATE: July 5, 2012 SUBJECT: Inspection of Police Directed Towing and Storage Service locations. The Huntington Beach Police Department requested that Code Enforcement provide an on -site inspection of the the three(3) tow companys that have submitted applications for the contract schedule to be effective August 15, 2012. Code Enforcement,s role was to determine if any zoning violations exist at at the three locations being utilized for the storage and impound of vehicles. Our findings are as follows: 1. On July 3, 2012 at 10:30AM an inspection of Best Towing Services (7472 Warner Ave.) was conducted. It was found that this location is being used appropriately as a vehicle storage yard. Code Enforcement did not observe any zoning code violations. 2. On July 3, 2012 at 12:OOPM an inspection of Mandic Motors (18881 Gothard St.) was conducted. It was found that this location is being used appropriately as a vehicle storage yard. Code Enforcement did not observe any zoning code violations. 3. On July 3, 2012 at 1:OOPM an inspection of Metro Pro Road Services (18931 Gothard St.) was conducted. It was found that this location was being used appropriately as a vehicle storage yard. Code Enforcement did not observe an zoning code violations If you should require further assistance regarding these locations, please contact me at (714) 536-5261. Cc: Jennifer McGrath, City Attorney Scott Hess, Director of Plannning/Building Michael Fuentes, Senior Code Enforcement Officer G:Code Enforcement/Fuentes/tow yards doc. 2012 Item 20. - 83 HB -688- ATTACHMENT #5 HB _689_ Item 20. - 84 EXHIBIT A Basic Tow Service (Standard sling or wheel lift truck) $139.00 Medium Duty or Flatbed Request $159.00 Heavy Duty (3) Axle or larger $228.00 Two Ton $184.00 Dolly $59.00 Rollover minimum $59.00 Drop Linkage $49.00 Clean-up fee $56.00 (Fee charged to the City shall remain $35.00 by contract) Hazmat fee, per 5 gallon bucket $115.00 Winching per hour $153.00 Vehicle Storage Vehicles Outside --per day $45.00 Vehicles Inside —per day $49.00 Motorcycles Outside —per day $26.00 Motorcycles Inside —per day $34.00 Truck or Motor homes (larger than 20') $49.00 Vehicles stored as evidence —outside $24.00 Vehicles stored as evidence -inside $32.00 Motorcycles stored as evidence --outside $18.00 Motorcycles stored as evidence —inside $20.00 After hours release 5:00 p.m. — midnight $63.00 Midnight — 8:00 a.m. $87.00 Minimum Service Call or Drop Fee $72.00 Effective December 1, 2011 to November 30, 2012 Item 20. - 85....._ ------ -- ._. -- - .... HB -690-