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Muskegon City Commission
Commission Meeting Date: October 27, 2020 Title: Ramos Towing Agreement
Submitted By: Jeffrey Lewis Department: Public Safety
Brief Summary: Extension of the current contract with Ramos Towing for (2) two years. The next
renewal date will be January 1st 2023. No changes to the current service and fee schedule is
expected during the 24 (twenty-four) month extension.
Detailed Summary:
Amount Requested: Per service rendered Amount Budgeted:
Fund(s) or Account(s): 101-40301 -5346 Fund(s) or Account(s):
Recommended Motion : Approve a 24 (twenty-four) month service agreement with Ramos Towing .
Check if the following Departments need to approve the item first:
Police Dept. IX!
Fire Dept. □
IT Dept. □
For City Clerk Use Only:
Commission Action:
I
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I. ~ TOwing ·
October 1, 2020
Chief Lewis
980 Jefferson St
Muskegon Ml 49440
Dear Chief Lewis and qty of Muskegon
.
Police Department;
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Ramos Towing is wllllng to extend our current contract for the next two years ending January Pl, 2023.
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Thank you or the opport\lnlty to serve the City of Muskegon with it's towing needs.
~ Sincerely, ~ ~ :'\ ,
~~~~~~~~
\ Mary Beth Ramos \
\
Ramos Towing
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ro w ing 733.·159'l
(fax) 733-,1,l,tJ
'Z4'14 S. C cl ty ~ l-
Muskt>gOl'l , Ml49444
Ramo!l/.\\1 tol.iully .<:om
TOWING AGREEMENT
This Towing Agreement is made on December 11, 2018 :
between the City of Muskegon, Michigan Municipal Corporation, with
offices at 933 Terrace Street, Muskegon, Michigan 49440 ("City"), and
RamosTo.Ning,with offices at 2444 S. Getty Street, Muskegon, Ml,
("Contractor").
Recitals
A. Contractor operates a vehicle towing service,
impound service and facility licensed by the State of Michigan;
and ,
B. City desires to retain Contractor to operate a vehicle
towing service, impoundment service and facility pursuant to the
terms and conditions of this Agreement.
Therefore, the parties mutually agree as follows:
1. Retention of Contractor. City retains Contractor as an
independent contractor to operate a towing and wrecker service and
impciundment facility for the storage of certain motor vehicles for the
City pursuant to the terms and conditions of this Agreement. City
agrees to exclusively utilize Contractor's towing and wrecker service
and impoundment facility, providing the owner/operator of said motor
vehicle does not expressly select some other alternative and
reasonable provider of said services. Notwithstanding the foregoing,
City may call another towing company if Contractor does not respond in
a timely manner or does not provide adequate equipment necessary to
provide the services as provided by this Agreement. The City reserves
the right to hire specialized equipment outside the scope of this
Agreement when needed , i.e., mobile cranes, or other heavy
equipment which might be needed for special situations. The parties
specifically agree that all fees, charges and expenses incurred by
Contractor in performance of this Agreement are not City's obligation ,
and all collection attempts will be directed to the owner/operator of the
subject motor vehicle.
2. Term. The term of this Agreement will commence on
January 14, 2019 and will continue until January 13, 2021, unless
earlier terminated by City pursuant to Section 10. City will have the
unilateral option to extend this Agreement for two additional one-year
terms under the same terms and conditions of this Agreement if, in
City's sole discretion, the extension is in the City's best interest. This
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extension will be exercised by the City providing written notice to
Contractor at least 60 days prior to the termination date.
3. Duties of Contractor. Contractor will operate a vehicle
towing service , impound service and facility seven days a week, 24
hours a day, in such a manner that Contractor can be reached by
telephone at all times by Muskegon Central Dispatch, the Muskegon
Police Department, and the Muskegon Department of Public Works.
Contractor will tow and/or store all motor vehicles, including tractors
and trailers, directed to be towed and/or stored by the City's agents
and employees.
a. Equipment. At all times during the term of this Agreement,
Contractor will own and keep in good operating condition the following
equipment:
i. FCC licensed radio dispatched wreckers;
ii. Set of dollies;
111. Equipment for changing tires, air tanks for inflating tires,
tools for lock-outs;
iv. Booster battery or cables for starting cars or trucks ;
v. Fire extinguishers, flares;
vi. Extra chains, pry bar, broom and shovel, bucket, oil dry;
vi i. Two standard wreckers fully equipped as specified herein
and one large heavy-duty wrecker capable of handling
trucks , trailers, semi-trailers, and other large vehicles , up to
a gross weight of 50 tons;
v111. Power winch on each unit set forth in (vii) above ; and ,
,x. Gross vehicle weight per wrecker unit rating of not less than
8,000 pounds, and the manufacturer's specifications for
rated capacity of at least one ton.
x. Wrecker for 50 ton vehicles (or sub contracted for this
equipment)
All equipment must be maintained in good working order to safely
perform the service required by this Agreement, and conform to the
standards, requirements and regulations mandated by federal, state, county
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and City agencies.
All towing vehicles will be equipped with communication devices
capable of covering all of the territory within the City limits and its immediate
bordering jurisdictions and will be subject to periodic inspections by the City
regarding their mechanical condition.
Contractor will keep the City informed of the number of tow trucks it
has available for use in the performance of this Agreement, including the
year, make, model, and capacity. This information must be supplied to the
Director of Public Safety.
Contractor will display the company name and phone number
prominently on each of its vehicles used in accordance with this Agreement.
b. Facility. At all times during the term of this Agreement,
Contractor's towing and impound service facility must:
i. be located within Muskegon County;
ii. contain a heated, secure building;
iii. have a fenced area able to accommodate up to 75 vehicles;
iv. comply with the laws of Michigan and the City of Muskegon;
v. have prominently posted a list oftowing and storage
charges, hours of operation as approved by the City,
as well as the Contractor's business telephone
number; and,
vi. be maintained in a clean and presentable condition.
c. Fees. At all times during the term of this Agreemen(
Contractor will abide by the table of fees attached to Contractor's bid
documents, which is incorporated herein and made a part hereof as
Appendix A. Any customer service, including accidents, impounds or
private tows, received through a request of the City, will be invoiced
according to this fee schedule. Notwithstanding the foregoing, if a vehicle is
impounded for evidence, contractor agrees that all storage fees will cease
and tow fees in certain exigent circumstances relating to victims may be
waived at the sole discretion of the Director of Public Safety.
During the term of this Agreement, Contractor may not increase its
fees except upon prior approval granted by the Muskegon City Commission,
following review and recommendation by the Muskegon Police Department
and/or Department of Public Works.
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Contractor will charge only for equipment actually needed and
requested by City at the scene.
City reserves the right to cancel a request for services of the
Contractor at any time, including up to the time of hook up, without either
the City or owner or operator incurring any charges. If the owner of the
vehicle arrives on scene before the vehicle is towed, and the vehicle can
be safely moved by the owner in the opinion of the police officer in charge
at the scene, no charges will be incurred and the vehicle will be released
to the owner.
Contractor will not charge storage fees for any day Contractor is closed
to the general public. Contractor will not charge storage fees for the first 24
hours of storage.
ct. Personnel Qualifications. Contractor will maintain adequate
staffing in order to insure proper and timely response to any and all police
requirements for impounding vehicles. Contractor will provide the City with a
list of the names and addresses of all current operators/drivers and will notify
the City of all changes in operators/drivers. Every operator/driver will:
1. be competent by reason of demonstrated experience or
training, in the sole judgment of the City, to safely operate the type of
tow truck used by the impound service;
ii. possess the ability to rig, move, pick up and transport
vehicles without increasing the original damage, insofar as possible;
iii. be free from the influence of alcoholic beverages,
narcotics, or dangerous drugs while on duty;
iv. be familiar with the ordinances, rules and regulations
pertaining to tow trucks; and,
v. be licensed as provided by applicable federal, state and
local Jaws and ordinances.
e. Expenses. Contractor will be solely responsible for all
expenses incurred by Contractor, its agents and employees, in connection
with the performance of this Agreement.
f. Auctions. Contractor will be responsible for the holding of public
auctions for abandoned vehicles, furnishing all documentation attendant to
any sale at said auction, paying for the auctioneer, and paying for the public
notice advertised in the local daily newspaper. Contractor agrees to hold said
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auctions under the supervision of the Muskegon Police Department. Auctions
will be conducted based on the number of vehicles held, but not less than
once per calendar quarter. If no bids are received at the auction, Contractor
will become the owner of the vehicle or group of vehicles and will be
responsible for disposal. Public auctions will comply with State law.
Contractor shall be responsible for $55 city fee for each impounded vehicle
sold at auction.
g. Storage of Vehicles. All vehicles impounded will be stored in a
storage lot or building which is fenced with all gates securely locked and a
responsible person in charge of the business 24 hours a day that may be
called to respond to the lot by someone from the City. Vehicles stored in the
building or storage yard will be parked so as to allow one foot of space
between vehicles. Storage charges will not be assessed for the first 24 hours
of storage.
h. Release of Vehicles. The owner of an impounded vehicle or
authorized representative of the owner will be required to have a signed
approval by the City's Police Department prior to the vehicle being released.
Whenever impounded vehicles are claimed by the owner, Contractor will provide
the owner with an itemized statement of all charges relating to impounding the
vehicle, including a written justification for fees over and above the standard towing
fee. Contractor will make every reasonable effort to verify that the individual
claiming a stored vehicle is the actual owner or authorized representative of the
owner before the vehicle is released.
i. Hours of Operation. Contractor will be available and capable of
providing towing services 24 hours a day on each and every day (365 days a year)
during the term of this Agreement. Contractor will be open to the general public from
8:00 am through 5:00 pm, Monday through Friday, on each and every week during the
term of this Agreement to release motor vehicles to their rightful owners. No storage
fees may be charged by Contractor for any day that the business is closed to the
general public.
j. Services. Contractor will have a tow truck at the scene in a timely
manner to tow vehicles as requested by the City. Furthermore, Contractor will
clean up accident debris from the street upon response to accident scenes. If
clean-up is requested and towing is not required there will be no clean-up charge to
the City. Clean-up will be deemed completed when inspected and approved by the
City official in charge at the scene. If Contractor does not arrive at the requested
location within 25 minutes, the police officer or City employee may have the vehicle
towed to Contractor's yard at Contractor's expense, and Contractor will accept the
vehicle for storage.
At the towing scene, or upon reasonable dispatch thereafter, Contractor
must provide the owner or operator of the motor vehicle with a written list
itemizing towing fees, storage rates and other expenses. Additionally, Contractor
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must advise in writing the owner/operator of the right to remove any and all
unattached personal property from the motor vehicle at the impoundment yard.
k. Driving of Vehicles. Neither Contractor nor any of its employees
and/or agents will at any time drive or remove from the premises any motor
vehicles placed with Contractor for storage purposes, except with the written
permission of the owner of the motor vehicle or by operation of law.
I. Recommendation of Repair or Collision Shop. Under no
· circumstances will Contractor recommend a repair or collision shop to the vehicle
owner/ operator.
4, Recordkeeping and Documentation. Contractor will maintain all
required records and complete all necessary forms for the state of Michigan,
Muskegon Police Department, and the Muskegon Department of Public Works.
Contractor will maintain all records relating to the disposition of impounded vehicles
for a period not less than four years, and the City will have the right to inspect, copy
and audit these records during any business hours.
a. Invoices. A written or computerized record or invoice will be
kept by Contractor and include the following information for each vehicle:
i. Vehicle identification number;
11. Gross vehicle weight rating;
m. Year, make, and model of vehicle;
1v. Name of owner of vehicle;
v. Details of all services rendered regarding vehicle;
vi. Location from which the vehicle was towed or impounded;
vu. Mileage of the vehicle; and,
v111. Any other information the City may require.
These records will be maintained and kept throughout the term of this
Agreement (plus one year following the termination of this Agreement) and
will be made available to the City for inspection upon request.
b. Monthly Audit. A monthly audit will be conducted by
Contractor of all vehicles impounded, including the reason the vehicle was
impounded. The audit will be submitted to the City's Police Department by
the fifteenth day of the following month. Any invoice for special equipment
or added services which exceed the standard towing fees will be
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specifically itemized and contain written justification for such additional
fees.
5. Independent Contractor. Contractor is an independent contractor
and not an employee of the City. Neither the Contractor, nor the Contractor's
employees or subcontractors, will be entitled to any or additional insurance,
health, retirement or similar benefits which are or may become available to City
employees, as a result of this Agreement. In addition, current or future City
employees or agents will not be construed or considered to be employees or
agents of Contractor.
6. Taxes. Contractor will be solely responsible for the payment and
withholding of any and all taxes, levies and assessments under any federal, state
or local law and will provide for the payment of taxes on or for income,
unemployment, old age, social security, workman's compensation, or any other
taxes with respect to the Contractor, the Contractor's employees or
subcontractors in connection with the work performed pursuant to this
Agreement.
7. Insurance.
a. Liability Insurance. During the term of this Agreement,
Contractor must maintain comprehensive general liability insurance and
vehicle liability insurance, including coverage of all operations as a towing
service and name the City as co-insured in at least the following amounts:
i. Comprehensive general liability insurance in an
amount not less than $1,000,000 for each occurrence;
ii. Vehicle liability insurance in an amount no less than
$1,000,000 for each occurrence;
iii. An umbrella policy for liability insurance covering any
and all of such risks in an amount not less than $1,000,000; and,
iii. A garage keeper's insurance policy in the amount of not
less than $250,000.
Contractor will provide City with copies of these insurance policies.
b. Worker's Compensation Insurance. During the term of this
Agreement Contractor must maintain in full force and effect, workers
compensation insurance with limits established under state law, and
provide City with a copy of the appropriate certificate evidencing same.
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8. Warranty. Contractor warrants and represents that it is familiar
with the towing and impoundment requirements of the City and is capable of
rendering all services as required in this Agreement. Contractor acknowledges
that it has made a thorough independent investigation as to its undertakings
under this Agreement and as to the actual conditions and requirements of the
work and the amount of work to be done.
Contractor acknowledges that the City has not made and does not make
any warranties or representations with respect to the City's obligations set forth
in this Agreement except as provided in this Agreement.
9. City Inspections. Contractor will allow members of the City of
Muskegon Police Department or other authorized City representatives to inspect
the Contractor's lot or building, stored vehicles, office or other buildings and
records relative to this Agreement whenever it is deemed necessary by the City.
City reserves the right to conduct an audit at least twice a year of all bills and
records relative to this Agreement. Contractor agrees to provide access to the
records for inspection by the City and its auditors.
10. Cancellation of Agreement. This Agreement may be canceled
by City upon two days written notice, delivered by hand or sent by ordinary mail
addressed to the Contractor at Contractor's address provided in this
Agreement. This Agreement may be cancelled, if, in the sole judgment of the
City's Director of Public Safety, the Contractor has not performed according to
the terms of this Contract.
This Agreement may be canceled by the Contractor upon 60 days written
notice to City's Director of Public Safety.
11. Indemnification. Except as otherwise provided in this Section, City
and its elected officials, appointed officials, employees and agents (collectively
hereinafter referred to as the "Indemnified Persons"), will not be liable to
Contractor for any reasons. Contractor will indemnify and hold City and the
Indemnified Persons harmless from any loss, expenses, or liability of any nature
(including attorneys' fees) due to any and all suits, demands, actions, legal or
administrative proceedings or claims arising or resulting from or in connection
with:
a. Any act or failure to act including negligence or
misrepresentation by the City or any Indemnified Person, whether
attributable to the City or Contractor in connection with or resulting from
this Agreement, the operations of Contractor, or any other activity;
provided however, that Contractor will not be obligated to indemnify the
City or any Indemnified Person under this Section including costs and
counsel fees if a court of competent jurisdiction finds that the liability in
question was caused by the intentional misconduct or gross negligence of
the City and any Indemnified Person unless the court determines that,
Page 8
despite the adjudication of liability but in view of all circumstances of the
case, the City or any Indemnified Person is fairly and reasonably entitled to
indemnification which the court considers proper; and/or
b. The negligent performance by Contractor or its agents,
employees, or officers of any work purportedly authorized to be
performed under this Agreement; and/or
c. Any loss or damage connected to or resulting from any work
performed or authorized to be performed under this Agreement; and/or
d. Any injury or damage to any person or property arising
out of this Agreement or the Contractor's performance of this
Agreement.
If any action or proceeding is brought against the City or any Indemnified
Person, connected to or resulting from any work performed or authorized to be
performed under this Agreement, that action or proceeding will be defended by
counsel to the City or the Contractor as City will determine. If the defense is by
counsel to the City, the City will pay the costs of that defense including its
counsel fees. If the City determines that the Contractor will defend the City or
an Indemnified Person, the Contractor will immediately assume the defense at
its sole costs.
The Contractor and the City agree to act cooperatively in the defense of
any action brought against the City and the Contractor to the greatest extent
possible. The City agrees that it will not settle any action or proceeding against
it without prior written consent of the Contractor, unless the City has provided
written notice to the Contractor of its decision to waive any right to
indemnification for the proposed settlement (including any costs, expenses or
counsel fee associated therewith).
Contractor will also indemnify City for all costs and expenses, including
reasonable counsel fees, incurred in enforcing any obligation of the
Contractor under this Agreement.
12. Non"Discrimination. Contractor covenants not to discriminate on
the basis of race, color, religion, or national origin against any employee or
applicant for employment to be employed in the performance of this Agreement
with respect to his/her hire, compensation, tenure, terms, conditions or privileges
of employment, and Contractor further covenants not to so discriminate against
any other person using or attempting to use the facility and services described in
this Agreement. Further, Contractor covenants to require similar covenants on
the part of any sub-contractor(s) or agent(s) employed in the performance of this
Agreement. Contractor will furnish his services on a fair, equal, and non-
Page 9
discriminatory basis to all users.
13. Prevention and Satisfaction of Liens. Contractor agrees not to
file, assert, prosecute, and will not allow construction, mechanic's or material
men's liens to be filed or continued against any City property for services
performed, or for materials, machine'\' or equipment furnished in connection
with the work to be performed by Contractor or by Contractor's sub-contractors.
If any such lien is nevertheless filed, Contractor agrees, at Contractor's
expense, to take any and all steps necessary and proper for the release,
satisfaction and discharge of said lien.
14. Permits and Licensing. Contractor agrees to comply with all
federal, state and local laws, ordinances, rules regulations and requirements that
are now, or may in the future become, applicable to Contractor's business or
equipment for the work to be performed pursuant to this Agreement. Contractor
will provide employees who possess a Commercial Driver's License with the
appropriate designation with providing service under this Agreement. It is
Contractor's responsibility to provide services in compliance with the Americans'
Disabilities Act. Contract will also meet the requirements of the Michigan
Commercial Driver's License Standards, Federal Drug Free Workplace Act, the
Elliott-Larson Act, the Michigan Civil Rights Act, and any other applicable
employee related legislation.
15. State of Michigan Abandoned Vehicle Fee. Contractor agrees
not to charge a customer the State of Michigan abandoned vehicle fee until the
customer's vehicle is entered into the LEIN system as an abandoned vehicle. If
Contractor fails to comply with this Section, then Contractor agrees to fully
reimburse the customer, and pay City two times the amount of the abandoned
vehicle fee (currently $40-so, Contractor would pay City $80 per occurrence).
Contractor shall abide by state law and pay the required abandon vehicle fees to
the Michigan Secretary of State.
16. Default. It is expressly agreed between the parties that if the
impoundment or storage facilities described in this Agreement are vacated,
abandoned or not maintained or operated in accordance with this Agreement, or
if Contractor attempts to sell, convey or assign this Agreement, or if Contractor
fails to provide notices in a timely and proper manner in accordance with Public
Act 1981, No. 104 as amended, or if Contractor defaults in any of the terms of
this Agreement, or if Contractor fails to comply with any statutes, ordinances,
rules, orders, regulations, or requirements of the federal, state and/or City
government or of any and all of their departments and bureaus applicable to the
premises and operations described in this Agreement, or if the Contractor files a
petition in bankruptcy or be adjudicated as bankrupt, or make an assignment for
the benefit of creditors, or take advantage of any insolvency act, City may elect
to terminate this Agreement immediately and, if City elects to terminate this
Page 10
Agreement because of the violation of this paragraph, upon such termination
Contractor will compensate City for the loss suffered by reason of the
termination and the default hereunder.
17. Right to Control. Contractor agrees to perform and supervise all
work under this Agreement efficiently and in accordance with the highest
standards of the industry. Contractor will be solely responsible for the means,
methods, techniques, sequences and procedures for completing the work.
18. Miscellaneous.
a. Sale or Assignment. This Agreement may not be
assigned or sub- contracted without the City's prior written consent.
Contractor's owner(s) agree not to sell or assign their interest, including
their stock, membership interest, or assets in Contractor without City's
prior written consent.
b. Validity. The invalidity of any portion of this Agreement will
not affect the remainder of the Agreement, unless the City so elects.
Unless the City elects otherwise, if any terms of this Agreement shall be
held invalid, illegal, or unenforceable in whole or in part, the validity of the
other terms of this Agreement shall not be affected and shall remain in
full force and effect.
c. Governing Law. This Agreement will be governed by the
laws of the State of Michigan.
d. Entire Agreement. This Agreement represents the entire
and integrated Agreement between the City and Contractor and
supersedes all prior negotiations, representations or agreements, either
written or oral.
e. Amendments. All amendments to this Agreement must
be made in writing and signed by City and by Contractor.
The parties have signed this Agreement the date first above set forth.
Page 11
City of Muskegon, a Michigan Municipal Corporation
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Contractor - Ramos Towing
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