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RESOLUTION NO. 9,606
A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO
ENTER INTO A TOWING FRANCHISE WITH ROUTH
WRECKER SERVICE; AND FOR OTHER PURPOSES.
WHEREAS, the City is to start operating an impound lot
within the next few days; and
WHEREAS, it is necessary to have a towing franchise for
vehicles to be'towed'from the street as a result of accidents,
court orders, or police holds, when the owner of the vehicle,
where permitted, does not request a certain towing company; and
WHEREAS, after a competitive bidding process it was
determined that Routh Wrecker Service offered the lowest
responsive and responsible bid.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
Section 1. The City Manager is authorized to enter into a
contract with Routh Wrecker Service for a franchise to tow
vehicles from City streets in substantially the form attached as
Exhibit A to this resolution, provided that any final agreement
be approved by the City Attorney, that it does not significantly
depart from the terms of the attached agreement, and that in any
event, towing to the City of Little Rock, Arkansas, impound lot
shall not begin until'12:01 a.m., on Sunday, January 14, 1996.
ADOPTED: January 16, 1996
ATTEST:
•
"PROVED AS TO •
THON70 M. CARP
CITY ATTORNEY
• • f NO
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WRECKER FRANCHISE CONTRACT
This agreement is made as of the day of , 19_, between
Franchiser, the City of Little Rock, Arkansas ("City ") a duly constituted political
subdivision of the State of Arkansas, and the Franchisee, Routh Wrecker Service , Inc.,
( "Routh ")
DEFINITIONS
As used herein, the following terms and their meanings are:
Agreement
The written contract of the parties evidenced by this
document. This Agreement is the formal franchise
agreement between the parties. All terms and
conditions of the Agreement not included in this
writing are invalid or otherwise unenforceable.
Agent
Person acting for vehicle owner, usually an
insurance company representative.
Authorized Personnel
Police authorities and designated city officials.
Board
Board of Directors of the City of Little Rock.
City City of Little Rock, the Franchiser.
Dolly A four (4) wheeled device used to support a
wrecked vehicle for a tow when the wrecked
vehicle's tires are flat or when the vehicle has been
so badly damaged that it cannot be towed by a
wrecker absent use of the dolly.
Gross Revenue Includes all towing charges recouped at time vehicle
is released.
LRPD Little Rock Police Department.
Response Time The time it takes wrecker company to arrive on the
scene after a call by 9 -1 -I Communications Center
to pick up a vehicle.
Routh Routh and its authorized agents, the Franchisee.
Vehicle Owner The owner of the vehicle at the time of the tow.
OEM M M M M M M M M M MM
42
Vehicle Buyer The person or business that buys the vehicle at sale
Vehicles classified Vehicles held by the LRPD for investigation or
as "official hold" evidentiary ourooses.
Vehicles not classified Vehicles towed at request of LRPD which are not
as `official hold" held for investigation or evidentiary purposes.
UNNO W
Section 1.01: Initial term of the agreement
The term of this Agreement shall be from until
199_. This Agreement may be renewed for an additional term of one
year at the City's option, subject to the terms and conditions set forth below. The City's
option to renew may be exercised or rejected for any or no reason and need not be
justified.
Section 1.02: Consideration
a) In consideration of being granted the City's exclusive wrecker franchise,
Franchisee agrees to pay the City five percent (5 %) of its Gross Revenues derived from:
(1) all City initiated towing charges.
b)
43
Section 1.03: Termination
a) The agreement shall automatically expire on
199_. The
term of the Agreement may be extended upon Resolution of the Board, for twelve (12)
months or until 199_ However, the decision to extend the
Agreement is at the sole discretion of the Board and its decision will not be subject to
review for any reason whatsoever.
b) Failure of Routh to fulfill any of the requirements under this Contract shall be
a basis for termination. The City's agent agrees that he shall provide Routh with written
notice of any deficiency under the terms of this Agreement. If Routh fails to correct the
deficiency to the satisfaction of the City's agent within ten (10) calendar days, a hearing
before the Board will be held to discuss such deficiency. If the Board determines at the
hearing that the deficiency exists and must be corrected, Routh will be given fifteen (15)
days from the date of such determination to correct said deficiency. If said deficiency is
not corrected within the time allowed, the Board may terminate this Agreement. In the
event of any such termination, Routh will owe the City only the proportional amount of
the 5% franchise fee due to the date of notice of the deficiency.
c) Any partial payment by Routh shall not serve as a waiver by the City of any
cause of action or liquidated damages payable by Routh to which it may be entitled.
ARTICLE III
SECTION 2.01: Services and equipment provided
Routh agrees to provide the following services and equipment:
(1) Hours of Service & Territory: Twenty -four (24) hours per day each day
during the term of the Agreement throughout all the City including annexed territory and
territory annexed subsequent to the effective date of this Agreement.
(2) Towing: Provide and maintain towing services for those vehicles which the
LRPD or other City officials, hereafter referred to as authorized personnel, order removed
from the streets and other public areas and ways of the City of Little Rock, Arkansas.
(3) Resl2onse Time: Response time begins when Routh receives the call from
the 9 -1 -1 Communications Center, Routh is required to answer the telephone promptly
twenty -four (24) hours per day. Routh shall respond to the call for towing services
(arrive at the scene) by an average response time of twenty minutes from the time Routh
receives the call from the 9 -1 -1 Communications Center. Such response time will be
based upon the prior 12 month average. If, in order to meet this response time, Routh has
to locate one or more trucks and drivers at different locations in the City during particular
times; this expense will be deemed a part of this Agreement. Consistent and repetitive
delays, in response time on a monthly basis, excluding acts of God. shall be grounds for
termination of this Agreement pursuant to Section 1.03.
(4) Removal of Vehicle, Debris and Litter: Routh is responsible for the prompt
and safe removal of a disabled vehicle and for the prompt and complete removal of all
litter and debris (including glass and all vehicle parts) resulting from the accident. The
LRPD officer at the scene shall remain at the scene while clean up is being done to
provide protection, traffic, and crowd control, and to inspect the area to see that Routh
has performed his services satisfactorily. Although there may be other authorized
personnel at the scene, such as Fire Department and MEMS personnel, Routh shall follow
the instructions of the LRPD officer in removal of said vehicle(s) and debris. If Routh
and MEMS personnel arrive at the scene prior to LRPD, Routh shall follow the
instruction of MEMS personnel until the LRPD officer arrives.
(5) Responsibility of Franchisee
To visually inspect outside condition and inside condition of vehicles in the presence of
City impound employee. To visually inventory contents of vehicles in the presence of
City impound employee, and sign off on said impound tickets.
Section 2.02: Equipment
Routh must at all times covered by this Agreement own or lease towing
equipment, in good repair, as follows:
a) Three (3) - 8 -ton rated wreckers with radio control.
b) Eight (8) - 4 -ton rated wreckers (or larger) with radio control.
c) A roll -off vehicle is acceptable to replace one of the above.
Owner must also have available a 40 ton winch rated wrecker, in good repair, that
is either owned, leased, or under contract. All trucks shall carry portable fire
extinguishers and road clean up equipment and supplies.
Section 2.03: Inspection
All equipment which Routh is required to have under this Agreement shall be in
compliance with all applicable state, federal and local laws. All radios and wrecker
equipment are subject to annual and spot inspections at any time by the City's
Department of General Services.
ARTICLE IV
45
Section 3.01 Charges
a) Towing:
1. All tows, including additional wrecker required, shall be $25.00 per Necker.
2. A Roll -off truck may be used in lieu of a wrecker. When the Roll -off truck is
sent and no dolly is required, the tow charge shall be $25.00. When the Roll -off truck is
sent and the vehicle requires the use of a dolly, the tow charge shall be $50.00 as a Roll-
off truck also performs a combination wrecker and dolly function.
3. Vehicles requiring the use of a 40 ton wrecker shall be $50.00 per wrecker.
4. Dolly charges shall be $50.00.
ARTICLE IV
Section 4.01: Vehicles Hauled But Not Officially Held
Vehicles towed pursuant to this Agreement at the request of LRPD or in those
instances when the owner of the vehicle does not indicate a wrecker preference, shall be
towed to the City impound lot. Routh agrees not to actively solicit the storage of vehicles
at his facility, but to refer undecided motorists to the City impound lot.
Section 4.02: Reporting Requirements
Routh shall submit monthly reports for all vehicles towed, all calls received from
OES, detail dispatch report showing time call received, arrival at scene, departure from
scene and arrival time at impound lot.
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ARTICLE V
Section 5.01: Liability for Damages
Routh shall be solely responsible for any damages resulting from acts of his own
negligence, or the negligence of his agents or employees, in the towing of any vehicles.
This shall include, but not be limited to, the condition of the vehicle, accessories, and the
contents.
Section 5.02: Indemnification of City
Routh agrees to hold and save the City harmless during the term of this
Agreement for all claims, loss, or damage of any kind or nature whatsoever, including
claims. loss, or damage for hazardous waste and environmental damages, which may be
sustained by reason of any act or omission on the part of Routh, its employees, agents,
assigns, or by anyone directly or indirectly employed by any of them. or by anyone for
whose acts or omissions any of them may be liable. Routh further covenants and agrees
to buy at Routh's sole cost and expense, the insurance outlined in Article VII. Further,
Routh shall indemnify the City for any and all claims or liability arising out of, or
resulting from, this Agreement.
ARTICLE VI
Section 6.01: Certificate of Liability Insurance
Routh shall file with the Director of General Services a Certificate of Liability
Insurance issued by a solvent incorporated insurance company licensed to do business in
the State of Arkansas. Said policy shall be a combined single limit for bodily injury and
property damage for each occurrence of one million dollars ($1,000,000).
47
Section 6.02: Worker's Compensation
� = M = �
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Routh shall provide Worker's Compensation coverage to its employees and shall
provide the Director of General Services with a copy of such certificate of coverage
evidencing same.
ARTICLE VII
Miscellaneous
Section 7.01: Liquidated Damages
The parties agree that any damages resulting from a breach of this agreement shall
be measured at one hundred dollars ($100) per day as actual damages for breach are
difficult to determine.
Section 7.02: Controlling Law
The Agreement shall be governed by the laws of the State of Arkansas.
Section 7.03: Agreement embodies all terms and conditions
This Agreement embodies the whole agreement between the parties, and there are
no inducements, promises, terms, conditions, or obligations made or entered into by any
party other than contained herein, and no further modification or amendment shall be
binding unless reduced to writing and signed by the parties or their duly authorized
representatives.
Section 7.04: Transfer of Franchise
This Agreement shall not be sold, assigned, transferred, leased, or mortgaged
without the consent of the City as evidenced by a resolution of the Board.
Section 7.05: Courteous Service
� r
It is the policy of the City that Routh and his employees and agents shall provide
the services authorized in this Agreement courteously. Their dealings with the public
should be carried out with the utmost respect for the citizens of this City with whom they
come in contact.
Section 7.06: Payments from vehicle repair businesses
Routh and its agents and employees shall not require or accept any payments from
automobile or truck repair businesses for delivery of damaged vehicles towed pursuant to
this franchise to said repair businesses for repair work.
Section 7.07: Equal Opportunity Employer
Routh hereby agrees that it will not discriminate against any employee or
applicant for employment because of race, color, religion, national origin, age, gender, or
disability.
Section 7.08: Failure to Enforce Provisions, Not a Waiver
Failure of the City, at any time, to enforce any of the provisions of this
Agreement, or to require at any time performance by Franchisee of any of the provisions
hereof, shall in no way be construed to be a waiver of such provisions nor in any way to
affect the validity of this Agreement or any part thereof, or the right of the City to
thereafter enforce each and every such provision.
Section 7.09: Severability
Should any part, term, or provision of this Agreement be determined by the courts
to be illegal or in conflict with any law of the state, the validity of the remaining portions
or provisions shall not be affected thereby.
Section 7.10: Terms of Price
This Agreement contains the price and all other items and arrangements,
representations, statements and promises made by the parties hereto, and neither party
shall in any way be held responsible for any statements, representations, promises or
agreements not included herein or specifically referred to herein, whether made by either
of the parties hereto or any of their agents, servants, officers, or representatives.
Section 7.12: Multiple Copies
This Agreement may be executed in any number of counterparts. each of which so
executed shall be deemed to be an original, and such counterparts together shall constitute
but one and the same Agreement, which shall be sufficiently evidenced by any such
original counterpart.
Section 7.13: Agents
The agent for the City is Mr. Wendell Jones, Director, Department of General
Services, City Hall, Little Rock, Arkansas, 72201. The agent for Routh is Mr. Ronald
Routh, owner of Routh Wrecker Service, 6403 Fourche Dam Pike, Little Rock, AR
72206.
Section 7.14: Access to Books
The City shall have the right to inspect Routh's financial records at all times upon
reasonable notice of not less than twenty -four (24) hours. Routh shall provide to the City
an annual statement of opinion prepared by a Certified Public Accountant concerning the
revenues reported to the City pursuant to this Agreement.
IN WITNESS WHEREOF, the Franchiser, City of Little Rock and Franchisee,
Routh Wrecker Service, Inc., have hereunto set their hands this day of
'1996.
CITY OF LITTLE ROCK, ARKANSAS
FRANCHISER
BY:
DIRECTOR OF GENERAL SERVICES
CITY MANAGER
107 4 QMI -=
Im
APPROVED AS TO FORM:
CITY ATTORNEY