HomeMy WebLinkAbout16 - Amendment to Official Police Tow Truck Service AgreementsGPI
NEWPORT BEACH POLICE DEPARTMENT
OFFICE OF THE CHIEF OF POLICE
PORT
INTEROFFICE MEMORANDUM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Miner, Chief of Police
DATE: April 25, 2025
SUBJECT: Agenda Item 16 -Amendment No. 2 to Official Police Tow Truck
Service Agreements with G&W Towing and Southside Towing
The staff report for Agenda Item 16 has been amended for accuracy and clarity:
The paragraph titled Reduced Operator Revenue has been amended to include details on the
specific court cases and operating conditions that have affected revenue from storage fees.
Attachment: Amended Staff Report
Amendment No. 2 to Official Police Tow Truck Service Agreements
1with G&W Towing and Southside Towing
April 29, 2025
Page 2
Increased Operating Costs
Since extension of the agreements in 2021, both Operators have reported substantial
increases in operating costs, most significantly in insurance premiums, especially for
Excess Liability coverage. For example, Southside paid $4,250 for its Excess Liability
coverage upon initiation of the towing agreement in 2016, but its renewal for 2024 cost
$87,597, an increase of 1,961%. G&W reported a 209% increase in Excess Liability
premiums over the same time frame. Neither Operator had claims against their policies
that would have increased premiums. Towing rates, the most significant source of
revenue for the Operators, only increased 27.1 % over the same timeframe. The table
below shows the increases in insurance premiums compared to the increases in towing
rates:
Excess Liability Costs
% Increase
2016
2024
Excess Liability
Towing Rates
G&W Towing
$ 22,552
$ 69,745
209.3%
27.1 %
Southside Towing
$ 4,250
$ 87,597
1,961.1 %
27.1 %
Reduced Operator
■. �.
iill
■. ■_ .. •
BY.1 in0
- ffie---
Both Operators have seen reduced revenues due to changes in case law and Police
Department practices. There have been two court cases during the life of the agreements
that have had a significant impact on towing operator revenues. In 2017, the 9th Circuit
reversed a lower court decision in Brewster v. Beck, finding that 30-day vehicle impounds
for driving on a suspended license were unconstitutional. In a more recent decision from
2023, the California Appeals Court in Coalition on Homelessness v. City and County of
San Francisco, held vehicles could not be towed for unpaid parking citations without a
warrant, except under limited circumstances where the vehicle was a hazard to traffic.
Both decisions resulted in fewer vehicle impounds by Police Department employees and
a reduction in corresponding vehicle storage fees.
Towing Rates
The original agreements included towing rates the Operators can charge to owners of
impounded vehicles, which have been updated annually, also in accordance with
NBMC §5.15.080. A recent study of regional police agencies' towing rates showed that
the Newport Beach towing rates were $417, which is 2.6% below the regional average of
$428; therefore, the Police Department is requesting to increase towing rates by
2.6% ($11). This increase would place Newport Beach's towing rates in line with the
average regional towing rates described in Attachment C.
Q �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
April 29, 2025
Agenda Item No. 16
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Miner, Chief of Police - 949-644-3701, dminer@nbpd.org
PREPARED BY: Jonathan Stafford, Deputy Director - 949-644-3650,
jtafford@nbpd.org
TITLE: Amendment No. 2 to Official Police Tow Truck Service Agreements
with G&W Towing and Southside Towing
ABSTRACT -
The Police Department requests City Council approval to amend the service agreements
with the City of Newport Beach's two official police towing operators (Operators),
G&W Towing and Southside Towing. If approved, the amendment would increase towing
rates consistent with a regional average of towing rates and amend insurance
requirements to require more General Liability coverage and eliminate the requirement
for Excess Liability coverage. The amendment would also allow each Operator $75,000
in insurance cost offset for the remainder of the towing agreements. The insurance cost
offsets would be handled as expenditures and funded with existing towing revenue.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Approve Amendment No. 2 to the Official Police Tow Truck Service Agreements with
G&W Towing of Costa Mesa and PD Transport, Inc., DBA Southside Towing, of
Costa Mesa increasing towing rates, amending insurance requirements, and allowing
insurance cost offsets in an amount not -to -exceed $75,000 per towing operator and
authorize the Mayor and City Clerk to execute the amendments.
DISCUSSION:
Background
G&W Towing and Southside Towing have been the two official police towing operators
for the City since April 2016. The original towing service agreements ran through
December 2021 and were extended five additional years in accordance with
NBMC §5.15.080, terminating on December 31, 2026.
16-1
Amendment No. 2 to Official Police Tow Truck Service Agreements
1with G&W Towing and Southside Towing
April 29, 2025
Page 2
Increased Operating Costs
Since extension of the agreements in 2021, both Operators have reported substantial
increases in operating costs, most significantly in insurance premiums, especially for
Excess Liability coverage. For example, Southside paid $4,250 for its Excess Liability
coverage upon initiation of the towing agreement in 2016, but its renewal for 2024 cost
$87,597, an increase of 1,961 %. G&W reported a 209% increase in Excess Liability
premiums over the same time frame. Neither Operator had claims against their policies
that would have increased premiums. Towing rates, the most significant source of
revenue for the Operators, only increased 27.1 % over the same timeframe. The table
below shows the increases in insurance premiums compared to the increases in towing
rates:
Excess Liability Costs
% Increase
2016
2024
Excess Liability
Towing Rates
G&W Towing
$ 22,552
$ 69,745
209.3%
27.1 %
Southside Towing
$ 4,250
$ 87,597
1,961.1 %
27.1 %
Reduced Operator Revenues
Both Operators have seen reduced revenues due to changes in case law and
Police Department practices. The two cases with the most impact are a 9th Circuit
decision that 30-day vehicle impounds for driving on a suspended license were
unconstitutional and a more recent decision from the Los Angeles Federal District Court
that found vehicles could not be towed for unpaid parking citations without a warrant,
except under limited circumstances. Both decisions resulted in fewer vehicle impounds
by Police Department employees and a reduction in corresponding vehicle storage fees.
Towing Rates
The original agreements included towing rates the Operators can charge to owners of
impounded vehicles, which have been updated annually, also in accordance with
NBMC §5.15.080. A recent study of regional police agencies' towing rates showed that
the Newport Beach towing rates were $417, which is 2.6% below the regional average of
$428; therefore, the Police Department is requesting to increase towing rates by
2.6% ($11). This increase would place Newport Beach's towing rates in line with the
average regional towing rates described in Attachment C.
Insurance Coverage Changes
Requested changes to the required insurance coverage are based on thorough analyses
by the City's Risk Manager and Finance Director. The existing insurance requirements
mandate an Excess Liability policy with $4 million in coverage, which is not required by
any of the other agencies that contract for towing services with either Operator. The
coverage changes would eliminate the requirement for a $4 million Excess Liability policy,
but would increase General Liability coverage from $1 million per occurrence/$2 million
general aggregate to $2 million per occurrence/$4 million general aggregate.
The net effect of the insurance requirement changes is that the Operators can reduce
their Excess Liability policy coverage from $4 million to $3 million, which should reduce
costs as Excess policies are written on a per -million basis.
16-2
Amendment No. 2 to Official Police Tow Truck Service Agreements
1with G&W Towing and Southside Towing
April 29, 2025
Page 3
Insurance Cost Offsets
The Police Department is also requesting to allow the Operators to bill the City for some
of the costs of the required insurance coverage. In order to receive the insurance cost
offset, the Operators will be required to show that the costs for the insurance coverage
required by the City exceed the offset amounts allowed in the amendment. This
requirement is described in detail in the amendments and the costs are described in the
Fiscal Impact section below.
The Police Department is requesting City
increases and reductions in revenues by
reducing insurance coverage requirements,
described in this report.
FISCAL IMPACT:
Council approval to address these cost
increasing towing rates by 2.6%, slightly
and providing insurance cost offsets as
The insurance cost offsets would be effective beginning July 1, 2025 to coincide with the
beginning of Fiscal Year 2025-26, ending with the termination of the towing agreements
on December 31, 2026. The offset amount allowed would be $50,000 per Operator in
FY 2025-26, for a total of $100,000, which would be funded through existing Vehicle
Release Fee revenue. Vehicle Release Fee revenue is projected to bring in $155,000 in
FY 2025-26.
In FY 2026-27, the insurance cost offset would be $25,000 per Operator because the
towing agreements terminate halfway through the fiscal year. Vehicle Release Fee
revenues are received in Account No. 01035352-521180 and costs will be expensed
within the Traffic Division of the Police Department.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
16-3
Amendment No. 2 to Official Police Tow Truck Service Agreements
1with G&W Towing and Southside Towing
April 29, 2025
Page 4
ATTACHMENTS:
Attachment A — Amendment No. 2 to Service Agreement with G&W Towing
Attachment B — Amendment No. 2 to Service Agreement with PD Transport, Inc. DBA
Southside Towing
Attachment C — Regional Towing Fees Comparison
16-4
Attachment A
Amendment No. 2 to the Official Police Tow Truck Service Agreement
with G&W Towing
16-5
AMENDMENT NO. TWO TO
OFFICIAL POLICE TOW TRUCK SERVICE AGREEMENT
WITH G&W TOWING, INC.
THIS AMENDMENT NO. TWO to OFFICIAL POLICE TOW TRUCK SERVICE
AGREEMENT ("Amendment No. Two") is made and entered into as of this 29th day of
April, 2025 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and charter city ("City"), and G&W TOWING, INC., a
California corporation ("Operator"), whose address is 965 W. 18th St., Costa Mesa, CA
92627, and is made with reference to the following:
RECITALS
A. On January 26, 2016, City and Operator entered into an Official Police Tow Truck
Service Agreement (Contract No. C-3203) ("Agreement") for Operator to provide
police towing services within the City of Newport Beach ("Project").
B. On December 1, 2021, City and Operator entered into Amendment No. One to the
Agreement ("Amendment No. One") to extend the term of the Agreement to
December 31, 2026, and to update the Insurance Requirements to the Agreement
(Exhibit C).
C. The parties desire to enter into this Amendment No. Two to update the Rate
Schedule which has not been updated since the Agreement was entered into in
2016, to update the insurance requirements of the Agreement (Exhibit C), and to
provide an insurance offset not to exceed Fifty Thousand Dollars ($50,000.00) per
year based on Operator's actual insurance costs.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. COMPENSATION TO OPERATOR
As of the Effective Date of this Amendment No. Two, Exhibit B to the Agreement
shall be amended in its entirety and replaced with the Rate Schedule attached hereto as
Exhibit B and incorporated herein by reference.
Section 19 is hereby added to the Agreement as follows:
"19. INSURANCE OFFSET
19.1 To offset Operator's actual insurance premiums, City shall pay Operator a
monthly insurance offset subject to the provisions of this Section ("Offset"). The Offset
shall not exceed, in the aggregate, an amount of Fifty Thousand Dollars ($50,000.00)
during fiscal year period beginning July 1, 2025 through June 30, 2026, and Twenty Five
Thousand Dollars ($25,000) during fiscal year period beginning July 1, 2026 through the
remainder of the Agreement term, December 31, 2026. The total not to exceed amount
of the Offset for the entire duration of this Agreement shall not exceed Seventy Five
16-6
Thousand Dollars ($75,000.00). In no event shall the Offset exceed Operator's actual
insurance premiums incurred during the applicable fiscal year. Operator shall submit
monthly invoices to City which shall include the monthly amount to be paid, a brief
description showing how the amount was calculated, the period to which the invoice
applies, and copies of invoices, statements, or other documentation issued by Operator's
insurance provider(s) reflecting Operator's actual insurance premiums. City shall pay
Operator no later than thirty (30) calendar days after approval of the monthly invoice by
City staff. City shall not be obligated to reimburse Operator for any other costs or
expenses unless specifically approved in writing in advance by City."
2. INSURANCE REQUIREMENTS
Exhibit C to the Agreement is amended in its entirety and replaced with the
attached Exhibit C and incorporated herein by reference.
3. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
G&W Towing, Inc. Page 2
16-7
IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: 2
By: �
Xaa�r�on4. W
y Attorney p
ATTEST:
Date:
By:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Joe Stapleton
Mayor
CONSULTANT: G&W Towing, Inc., a
California corporation
Date:
By:
Gordon Miller
Chief Executive Officer & Secretary
[END OF SIGNATURES]
Attachments: Exhibit B — Rate Schedule
Exhibit C — Insurance Requirements
G&W Towing, Inc. Page 3
16-8
EXHIBIT B
RATE SCHEDULE
G&W Towing, Inc. Page B-1 16-9
City of Newport Beach
Official Police Tow Rate Schedule
Effective April 30, 2025
SERVICE CHARGE
Towing
Basic Towing (Light Duty)
$240.00
Flatbed
$262.00
Medium Duty
$262.00
Heavy Duty
$456.00
Motorcycle
$262.00
Car Outside
$63.00
Car Inside
$75.00
Truck Outside
$74.00
Truck Inside
$88.00
Motorcycle
$35.00
Labor
Driveline
$43.00
Dollies/Go-Jacks
$84.00
Hazardous Material
$66.00
Winching
$109.00
Linkage
$40.00
Rollover
$109.00
On -Scene Release
$118.00
After Hours Release — Light Duty
$82.00
After Hours Release — Medium Duty
$91.00
After Hours Release — Heavy Duty
$104.00
Service call — Minimum
$164.00
Labor - Per Hour
$240/hr.
Newport Beach Vehicle Release Fee $185.00
(Includes customer tow fee) As of July 13, 2024, per Fee
Study (SRFF).
16-10
EXHIBIT C
INSURANCE REQUIREMENTS
1. Provision of Insurance. Without limiting Operator's indemnification of City, and
prior to commencement of Work, Operator shall obtain, provide and maintain
at its own expense during the term of this Agreement, policies of insurance of
the type and amounts described below and in a form satisfactory to City.
Operator agrees to provide insurance in accordance with requirements set
forth here. If Operator uses existing coverage to comply and that coverage
does not meet these requirements, Operator agrees to amend, supplement or
endorse the existing coverage.
2. Acceptable Insurers. All insurance policies shall be issued by an insurance
company currently authorized by the Insurance Commissioner to transact
business of insurance in the State of California, with an assigned policyholders'
Rating of A- (or higher) and Financial Size Category Class VII (or larger) in
accordance with the latest edition of Best's Key Rating Guide, unless otherwise
approved by the City's Risk Manager.
3. Coverage Requirements.
A. Workers' Compensation Insurance. Operator shall maintain Workers'
Compensation Insurance, statutory limits, and Employer's Liability
Insurance with limits of at least one million dollars ($1,000,000) each
accident for bodily injury by accident and each employee for bodily injury
by disease in accordance with the laws of the State of California.
Operator shall submit to City, along with the certificate of insurance, a
Waiver of Subrogation endorsement in favor of City of Newport Beach,
its City Council, boards and commissions, officers, agents, volunteers
and employees.
B. General Liability Insurance. Operator shall maintain commercial
general liability insurance, and if necessary excess/umbrella liability
insurance, with coverage at least as broad as provided by Insurance
Services Office form CG 00 01, in an amount not less than two million
dollars ($2,000,000) per occurrence, four million dollars ($4,000,000)
general aggregate. The policy shall cover liability arising from bodily
injury, property damage, products -completed operations, personal and
advertising injury, and liability assumed under an insured contract
(including the tort liability of another assumed in a business contract).
G&W Towing, Inc. Page C-1 16-11
Operator shall submit to City, along with a certificate of insurance,
additional coverage as stated in Section 4. Other Insurance
Requirements.
C. Automobile Liability Insurance. Operator shall maintain automobile
insurance at least as broad as Insurance Services Office form CA 00 01
covering bodily injury and property damage for all activities of Operator
arising out of or in connection with Work to be performed under this
Agreement, including coverage for any owned, hired, non -owned or
rented vehicles, in an amount not less than one million dollars
($1,000,000) combined single limit each accident. Operator shall also
maintain On -Hook coverage in an amount not less than five hundred
thousand dollars ($500,000).
Operator shall submit to City, along with a certificate of insurance,
additional coverage as stated in Section 4. Other Insurance
Requirements.
D. _Gara ekee ers Legal Liabilit Insurance. Operator shall maintain
garagekeepers insurance with limits not less than one million dollars
($1,000,000).
E. Excess/Umbrella Liability Insurance. If any Excess or Umbrella Liability
policies are used to meet the limits of liability required by this contract,
then said policies shall be "following form" of the underlying policy
coverage, terms, conditions, and provisions and shall meet all of the
insurance requirements stated in this contract, including, but not limited
to, the additional insured and primary & non-contributory insurance
requirements stated herein. No insurance policies maintained by the
City, whether primary or excess, and which also apply to a loss covered
hereunder, shall be called upon to contribute to a loss until the
Contractor's primary and excess/umbrella liability policies are
exhausted.
Operator shall submit to City, along with a certificate of insurance,
additional coverage as stated in Section 4. Other Insurance
Requirements.
4. Other Insurance Requirements. The policies are to contain, or be endorsed to
contain, the following provisions:
A. Waiver of Subrogation. All insurance coverage maintained or procured
pursuant to this Agreement shall be endorsed to waive subrogation
against City of Newport Beach, its City Council, boards and
commissions, officers, agents, volunteers, employees or shall
specifically allow Operator or others providing insurance evidence in
compliance with these requirements to waive their right of recovery prior
G&W Towing, Inc. Page C-2 16-12
to a loss. Operator hereby waives its own right of recovery against City,
and shall require similar written express waivers from each of its
subcontractors.
B. Additional Insured Status. All liability policies including general liability,
excess/umbrella liability, and automobile liability if required, shall provide
or be endorsed to provide that City of Newport Beach, its City Council,
boards and commissions, officers, agents, volunteers, employees shall
be included as insureds under such policies.
C. Primary and Non Contributory. All liability coverage shall apply on a
primary basis and shall not require contribution from any insurance or
self-insurance maintained by City.
D. Notice of Cancellation. All policies shall provide City with thirty (30)
calendar days' notice of cancellation (except for nonpayment for which
ten (10) calendar days' notice is required) or nonrenewal of coverage
for each required coverage.
E. Subcontractors. Contractor shall require and verify that all
subcontractors maintain insurance meeting all the requirements stated
herein, and Contractor shall ensure that City is an additional insured on
insurance required from subcontractors. For CGL coverage
subcontractors shall provide coverage with a format at least as broad
as CG 20 38 04 13.
5. Additional Agreements Between the Parties. The parties hereby agree to
the following:
A. Evidence of Insurance. Operator shall provide certificates of insurance
to City as evidence of the insurance coverage required herein, along
with a waiver of subrogation endorsement for workers' compensation
and other endorsements as specified herein for each coverage.
Insurance certificates and endorsement must be approved by City's
Risk Manager prior to commencement of performance. Current
certification of insurance shall be kept on file with City at all times during
the term of this Agreement. The certificates and endorsements for each
insurance policy shall be signed by a person authorized by that insurer
to bind coverage on its behalf. At least fifteen (15) days prior to the
expiration of any such policy, evidence of insurance showing that such
insurance coverage has been renewed or extended shall be filed with
the City. If such coverage is cancelled or reduced, Operator shall, within
ten (10) days after receipt of written notice of such cancellation or
reduction of coverage, file with the City evidence of insurance showing
G&W Towing, Inc. Page C-3 16-13
that the required insurance has been reinstated or has been provided
through another insurance company or companies. City reserves the
right to require complete, certified copies of all required insurance
policies, at any time.
B. City's Right to Revise Requirements. City reserves the right at any time
during the term of the Agreement to change the amounts and types of
insurance required by giving Operator sixty (60) calendar days' advance
written notice of such change. If such change results in substantial
additional cost to Operator, City and Operator may renegotiate
Operator's compensation.
C. Right to Review Subcontracts. Operator agrees that upon request, all
agreements with subcontractors or others with whom Operator enters
into contracts with on behalf of City will be submitted to City for review.
Failure of City to request copies of such agreements will not impose any
liability on City, or its employees. Operator shall require and verify that
all subcontractors maintain insurance meeting all the requirements
stated herein, and Operator shall ensure that City is an additional
insured on insurance required from subcontractors. For CGL coverage,
subcontractors shall provide coverage with a format at least as broad
as CG 20 38 04 13.
D. Enforcement of Agreement Provisions. Operator acknowledges and
agrees that any actual or alleged failure on the part of City to inform
Operator of non-compliance with any requirement imposes no additional
obligations on City nor does it waive any rights hereunder.
E. Requirements not Limiting. Requirements of specific coverage features
or limits contained in this Section are not intended as a limitation on
coverage, limits or other requirements, or a waiver of any coverage
normally provided by any insurance. Specific reference to a given
coverage feature is for purposes of clarification only as it pertains to a
given issue and is not intended by any party or insured to be all
inclusive, or to the exclusion of other coverage, or a waiver of any type.
If the Operator maintains higher limits than the minimums shown above,
the City requires and shall be entitled to coverage for higher limits
maintained by the Operator. Any available insurance proceeds in
excess of the specified minimum limits of insurance and coverage shall
be available to the City.
F. Self -insured Retentions. Any self -insured retentions must be declared
to and approved by City. City reserves the right to require that self -
insured retentions be eliminated, lowered, or replaced by a deductible.
Self- insurance will not be considered to comply with these requirements
G&W Towing, Inc. Page C-4 16-14
unless approved by City.
G. City Remedies for Non -Compliance. If Operator or any subcontractor
fails to provide and maintain insurance as required herein, then City
shall have the right but not the obligation, to purchase such insurance, to
terminate this Agreement, or to suspend Operator's right to proceed until
proper evidence of insurance is provided. Any amounts paid by City
shall, at City's sole option, be deducted from amounts payable to
Operator or reimbursed by Operator upon demand.
H. Timely Notice of Claims. Operator shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from
Operator's performance under this Agreement, and that involve or may
involve coverage under any of the required liability policies. City
assumes no obligation or liability by such notice, but has the right (but
not the duty) to monitor the handling of any such claim or claims if they
are likely to involve City.
Operator's Insurance. Operator shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its
own judgment may be necessary for its proper protection and
prosecution of the Work.
G&W Towing, Inc. Page C-5 16-15
Attachment B
Amendment No. 2 to the Official Police Tow Truck Service Agreement
with PD Transport, Inc. DBA Southside Towing
16-16
AMENDMENT NO. TWO TO
OFFICIAL POLICE TOW TRUCK SERVICE AGREEMENT
WITH PD TRANSPORT, INC. DBA SOUTHSIDE TOWING
THIS AMENDMENT NO. TWO to OFFICIAL POLICE TOW TRUCK SERVICE
AGREEMENT ("Amendment No. Two") is made and entered into as of this 29th day of
April, 2025 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and charter city ("City"), and PD TRANSPORT, INC., a
California corporation doing business as ("DBA") SOUTHSIDE TOWING ("Operator"),
whose address is 1643 Placentia Ave., Costa Mesa, California 92627, and is made with
reference to the following:
RECITALS
A. On April 11, 2016, City and Operator entered into an Official Police Tow Truck
Service Agreement (Contract No. C-7008-1) ("Agreement") for Operator to provide
police towing services within the City of Newport Beach ("Project").
B.. On December 1, 2021, City and Operator entered into Amendment No. One to the
Agreement ("Amendment No. One") to extend the term of the Agreement to
December 31, 2026, and to update the Insurance Requirements to the Agreement
(Exhibit C).
C. The parties desire to enter into this Amendment No. Two to update the Rate
Schedule which has not been updated since the Agreement was entered into in
2016, to update the insurance requirements of the Agreement (Exhibit C), and to
provide an insurance offset not to exceed Fifty Thousand Dollars ($50,000.00) per
year based on Operator's actual insurance costs.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. COMPENSATION TO OPERATOR
As of the Effective Date of this Amendment No. Two, Exhibit B to the Agreement
shall be amended in its entirety and replaced with the Rate Schedule attached hereto as
Exhibit B and incorporated herein by reference.
Section 19 is hereby added to the Agreement as follows:
"19. INSURANCE OFFSET
19.1 To offset Operator's actual insurance premiums, City shall pay Operator a
monthly insurance offset subject to the provisions of this Section ("Offset"). The Offset
shall not exceed, in the aggregate, an amount of Fifty Thousand Dollars ($50,000.00)
during fiscal year period beginning July 1, 2025 through June 30, 2026, and Twenty Five
Thousand Dollars ($25,000) during fiscal year period beginning July 1, 2026 through the
remainder of the Agreement term, December 31, 2026. The total not to exceed amount
16-17
of the Offset for the entire duration of this Agreement shall not exceed Seventy Five
Thousand Dollars ($75,000.00). In no event shall the Offset exceed Operator's actual
insurance premiums incurred during the applicable fiscal year. Operator shall submit
monthly invoices to City which shall include the monthly amount to be paid, a brief
description showing how the amount was calculated, the period to which the invoice
applies, and copies of invoices, statements, or other documentation issued by Operator's
insurance provider(s) reflecting Operator's actual insurance premiums. City shall pay
Operator no later than thirty (30) calendar days after approval of the monthly invoice by
City staff. City shall not be obligated to reimburse Operator for any other costs or
expenses unless specifically approved in writing in advance by City."
2. INSURANCE REQUIREMENTS
Exhibit C to the Agreement is amended in its entirety and replaced with the
attached Exhibit C and incorporated herein by reference.
3. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
PD Transport-, Inc. DBA Southside Towing Page 2
16-18
IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
By:
a n C. Harp r
y Attorney
ATTEST:
Date:
M
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Joe Stapleton
Mayor
CONSULTANT: PD TRANSPORT, Inc., a
California corporation doing business as
("DBA") SOUTHSIDE TOWING
Date:
Bv:
David Padua
Chief Executive Officer
Date:
By:
Donna Padua
Secretary
[END OF SIGNATURES]
Attachments: Exhibit B — Rate Schedule
Exhibit C -- Insurance Requirements
PD Transport, Inc. DBA Southside Towing
Page 3
16-19
EXHIBIT B
RATE SCHEDULE
PD Transport, Inc. DBA Southside Towing Page B-1 16-20
City of Newport Beach
Official Police Tow Rate Schedule
Effective April 30, 2025
SERVICE CHARGE
Towing
Basic Towing (Light Duty)
$240.00
Flatbed .
$262.00
Medium Duty
$262.00
Heavy Duty
$456.00
Motorcycle
$262.00
Storage
Car Outside
$63.00
Car Inside
$75.00
Truck Outside
$74.00
Truck Inside
$88.00
Motorcycle
$35.00
Labor
Driveline
$43.00
Dollies/Go-Jacks
$84.00
Hazardous Material
$66.00
Winching
$109.00
Linkage
$40.00
Rollover
$109.00
On -Scene Release
$118.00
After Hours Release — Light Duty
$82.00
After Hours Release — Medium Duty
$91.00
After Hours Release — Heavy Duty
$104.00
Service call — Minimum
$164.00
Labor - Per Hour
$240/hr.
Newport Beach Vehicle Release Fee $185.00
(Includes customer tow fee) As of July 13, 2024, per Fee
Study (SRFF).
16-21
EXHIBIT C
INSURANCE REQUIREMENTS
Provision of Insurance. Without limiting Operator's indemnification of City, and
prior to commencement of Work, Operator shall obtain, provide and maintain
at its own expense during the term of this Agreement, policies of insurance of
the type and amounts described below and in a form satisfactory to City.
Operator agrees to provide insurance in accordance with requirements set
forth here. If Operator uses existing coverage to comply and that coverage
does not meet these requirements, Operator agrees to amend, supplement or
endorse the existing coverage.
2. Acceptable Insurers. All insurance policies shall be issued by an insurance
company currently authorized by the Insurance Commissioner to transact
business of insurance in the State of California, with an assigned policyholders'
Rating of A- (or higher) and Financial Size Category Class VII (or larger) in
accordance with the latest edition of Best's Key Rating Guide, unless otherwise
approved by the City's Risk Manager.
3. Coverage Requirements.
A. Workers' Compensation Insurance. Operator shall maintain Workers'
Compensation Insurance, statutory limits, and Employer's Liability
Insurance with limits of at least one million dollars ($1,000,000) each
accident for bodily injury by accident and each employee for bodily injury
by disease in accordance with the laws of the State of.California.
Operator shall submit to City, along with the certificate of insurance, a
Waiver of Subrogation endorsement in favor of City of Newport Beach,
its City Council, boards and commissions, officers, agents, volunteers
and employees.
B. General Liability Insurance. Operator shall maintain commercial
general liability insurance, and if necessary excess/umbrella liability
insurance, with ,coverage at least as broad as provided by Insurance
Services Office form CG 00 01, in an amount not less than two million
dollars ($2,000,000) per occurrence, four million dollars ($4,000,000)
general aggregate. The policy shall cover liability arising from bodily
injury, property damage, products -completed operations, personal and
advertising injury, and liability assumed under an insured contract
(including the tort liability of another assumed in a business contract).
PD Transport, Inc. DBA Southside Towing Page C-1 16-22
Operator shall submit to City, along with a certificate of insurance,
additional coverage as stated in Section 4. Other Insurance
Requirements.
C. Automobile Liability Insurance. Operator shall maintain automobile
insurance at least as broad as Insurance Services Office form CA 00 01
covering bodily injury and property damage for all activities of Operator
arising out of or in connection with Work to be performed under this
Agreement, including coverage for any owned, hired, non -owned or
rented vehicles, in an amount not less than one million dollars
($1,000,000) combined single limit each accident. Operator shall also
maintain On -Hook coverage in an amount not less than five hundred
thousand dollars ($500,000).
Operator shall submit to City, along with a certificate of insurance,
additional coverage as stated in Section 4. Other Insurance
Requirements.
D. Garagekeepers Legal Liability Insurance. Operator shall maintain
garagekeepers insurance with limits not less than one million dollars
($1,000,000).
E. Excess/Umbrella Liability Insurance. If any Excess or Umbrella Liability
policies are used to meet the limits of liability required by this contract,
then said policies shall be "following form" of the underlying policy
coverage, terms, conditions, and provisions and shall meet all of the
insurance requirements stated in this contract, including, but not limited
to, the additional insured and primary & non-contributory insurance
requirements stated herein. No insurance policies maintained by the
City, whether primary or excess, and which also apply to a loss covered
hereunder, shall be called upon to contribute to a loss until the
Contractor's- primary and excess/umbrella liability policies are
exhausted.
Operator shall submit to City, along with a certificate of insurance,
additional coverage as stated in Section 4. Other Insurance
Requirements.
4. Other Insurance Requirements. The policies are to contain, or be endorsed to
contain, the following provisions:
A. Waiver of Subrogation. All insurance coverage maintained or procured
pursuant to this Agreement shall be endorsed to waive subrogation
against City of Newport Beach, its City Council, boards and
commissions, officers, agents, volunteers, employees or shall
specifically allow Operator or others providing insurance evidence in
compliance with these requirements to waive their right of recovery prior
PD Transport, Inc. DBA Southside Towing Page C-2 16-23
to a loss. Operator hereby waives its own right of recovery against City,
and shall require similar written express waivers from each of its
subcontractors.
B. Additional Insured Status. All liability policies including general liability,
excess/umbrella liability, and automobile liability if required, shall provide
or be endorsed to provide that City of Newport Beach, its City Council,
boards and commissions, officers, agents, volunteers, employees shall
be included as insureds under such policies.
C. Primary and Non Contributory. All liability coverage shall apply on a
primary basis and shall not require contribution from any insurance or
self-insurance maintained by City.
D. Notice of Cancellation. All policies shall provide City with thirty (30)
calendar days' notice of cancellation (except for nonpayment for which
ten (10) calendar days' notice is required) or nonrenewal of coverage
for each required coverage.
E. - Subcontractors. Contractor shall require and verify that all
subcontractors maintain insurance meeting all the requirements stated
herein, and Contractor shall ensure that City is an additional insured on
insurance required from subcontractors. For CGL coverage
subcontractors shall provide coverage with a format at least as broad
as CG 20 38 04 13.
5. Additional Agreements Between the Parties. The parties hereby agree to
the following:
A. Evidence of Insurance. Operator shall provide certificates of insurance
to City as evidence of the insurance coverage required herein, along
with a waiver of subrogation endorsement for workers' compensation
and other endorsements as specified herein for each coverage.
Insurance certificates and endorsement must be approved by City's
Risk Manager prior to commencement of performance. Current
certification of insurance shall be kept on file with City at all times during
the term of this Agreement. The certificates and endorsements for each
insurance policy shall be signed by a person authorized by that insurer
to bind coverage on its behalf. At least fifteen (15) days prior to the
expiration of any such policy, evidence of insurance showing that such
insurance coverage has been renewed or extended shall be filed with
the City. If such coverage is cancelled or reduced, Operator shall, within
ten (10) days after receipt of written notice of such cancellation or
reduction of coverage, file with the City evidence of insurance showing
PD Transport, Inc. DBA Southside Towing Page C-3 16-24
that the required insurance has been reinstated or has been provided
through another insurance company or companies. City reserves the
right to, require complete, certified copies of all required insurance
policies, at any time.
B. City's Right to Revise Requirements. City reserves the right at any time
during the term of the Agreement to change the amounts and types of
insurance required by giving Operator sixty (60) calendar days' advance
written notice of such change. If such change results in substantial
additional cost to Operator, City and Operator may renegotiate
Operator's compensation.
C. Right to Review Subcontracts. Operator agrees that upon request, all
agreements with subcontractors or others with whom Operator enters
into contracts with on behalf of City will be submitted to City for review.
Failure of City to request copies of such agreements will not impose any
liability on City, or its employees. Operator shall require and verify that
all subcontractors maintain insurance meeting all the requirements
stated herein, and Operator shall ensure that City is an additional
insured on insurance required from subcontractors. For CGL coverage,
subcontractors shall provide coverage with a format at least as broad
as CG 20 38 04 13.
D. Enforcement of Agreement Provisions. Operator acknowledges and
agrees that any actual or alleged failure on the part of City to inform
Operator of non-compliance with any requirement imposes no additional
obligations on City nor does it waive any rights hereunder.
E. Requirements not Limiting. Requirements of specific coverage features
or limits contained in this Section are not intended as a limitation on
coverage, limits or other requirements, or a waiver of any coverage
normally provided by any insurance. Specific reference to a given
.coverage feature is for purposes of clarification only as it pertains to a
given issue and is not intended by any party or insured to be all
inclusive, or to the exclusion of other coverage, or a waiver of any type.
If the Operator maintains higher limits than the minimums shown above,
the City requires and shall be entitled to coverage for higher limits
maintained by the Operator. Any available insurance proceeds in
excess of the specified minimum limits of insurance and coverage shall
be available to the City.
F. Self -insured Retentions. Any self -insured retentions must be declared
to and approved by City. City reserves the right to require that self -
insured retentions be eliminated, lowered, or replaced by a deductible.
'Self- insurance will not be considered to comply with these requirements
PD Transport, Inc. DBA Southside Towing Page C-4 16-25
unless approved by City.
G. City Remedies for Non -Compliance. If Operator or any subcontractor
fails to provide and maintain insurance as required herein, then City
shall have the right but not the obligation, to purchase such insurance, to
terminate this Agreement, orto suspend Operator's right to proceed until
proper evidence of insurance is provided. Any amounts paid by City
shall, at City's sole option, be deducted from amounts payable to
Operator or reimbursed by Operator upon demand.
H. Timely Notice of Claims. Operator shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from
Operator's performance under this Agreement, and that involve or may
involve coverage under any of the required liability policies. City
assumes no obligation or liability by such notice, but has the right (but
not the duty) to monitor the handling of any such claim or claims if they
are likely to involve City.
Operator's Insurance. Operator shall also procure and maintain, at its
own cost and expense, any additional kinds of insurance, which in its
own judgment may be necessary for its proper protection and
prosecution of the Work.
PD Transport, Inc. DBA Southside Towing Page C-5 16-26
Attachment C
Regional Towing Fees Comparison
16-27
Regional Towing Fees Comparison
March 21, 2025
CITY/AGENCY
OPERATOR(S)
TOWING FEES*
FEE CALCULATION
Newport Beach
G&W/Southside
$ 417.00
$234 + 3($61)
Huntington Beach
Best Towing/Mandic Motors
$ 407.00
$200 + 3($69)
Long Beach
City of Long Beach
$ 473.00
$239 + 3($79)
Seal Beach
Country City Towing
$ 365.00
$200 + 3($55)
Seal Beach
Mr. C's Towing
$ 381.00
$195 + 3($62)
Fountain Valley
Best Towing
$ 430.00
$223 + 3($69)
Fountain Valley
G&W
$ 407.00
$200 + 3($69)
Santa Ana
B&D Towing/Greater Southern
California Towing
$ 443.00
$230 + 3($71)
Santa Ana
To n' Mo Towing
$ 443.00
$230 + 3($71)
Santa Ana
MetroPro Towing
$ 443.00
$230 + 3($71)
Irvine
G&W/MetroPro Towing
$ 398.00
$221 + 3($59)
Laguna Beach
To n Mo Towing/South County
Towing
$ 465.00
$255 + 3($70)
Anaheim
County City Towing/Pacific
Towing/To n Mo Towing
$ 395.00
$200 + 3($65)
CHP - Capistrano
Southside Towing
$ 590.00
$320 + 3($90)
Tustin
John's Towing/G.S.
Towin /Archie's Towing
$ 295.00
$175 + 3($40)
Orange
Southside Towing/Archie's
Towing
$ 395.00
$215 + 3($60)
OCSD
Multiple Operators
$ 554.00
$305 + 3($83)
Costa Mesa
MetroPro Towing/G&W
$ 381.00
$219 + 3($54)
Garden Grove
B&D Towing/Finish Line Towing
$ 450.00
$225 + 3($75)
Average
$ 428.00
Difference Compared to Current City of NB Feesl
2.6%
* Because fee schedules vary among agencies, a scenario based fee calculation was used:
Standard vehicle towing + 3 days outside storage
16-28