VIEWS: 143 PAGES: 22

									                               CITY OF SAN DIEGO
                                   PURCHASING DIVISION
                                  1200 Third Avenue, Suite 200
                                   San Diego, CA 92101-4195
                                      Fax: (619) 236-5904

                                       ADDENDUM B

Proposal No. 7384-05-P-RFP                            Revised Bid Closing Date: April 22, 2005
                                                                                 @ 4:00 p.m.

           Bids for furnishing the City of San Diego with IMPOUND AUCTION AND

The following changes to the specifications are hereby made effective as though they were
originally shown and/or written:

       1. The proposal closing date has been changed from April 15, 2005 to
          April 22, 2005 @ 4:00 p.m.

       2. Delete the original Addendum A Proposal cover page and replace with the attached
          Addendum B Proposal cover page.

       3. Delete the original page 4 and replace with the attached Addendum B page 4.
          (NOTE: Paragraph A has been changed.)

       4. Delete the original page 9 and replace with the attached Addendum B page 9.
          (NOTE: Item c.4 has been added.)

       5. Delete the original page 14 and replace with the attached Addendum A page 14.
          (NOTE: Paragraph B has been changed.)

       6. Delete the original page 15 and replace with the attached Addendum A page 15.
          (NOTE: “Garage Keepers” insurance and “On-Hook/Cargo” insurance have been

       7. Delete the original page 17 and replace with the attached Addendum A page 17.
          (NOTE: Paragraph B has been changed.)

       8. Delete the original page 18 and replace with the attached Addendum A page 18.
          (NOTE: Paragraph C, item b has been deleted and Paragraph D has been changed.)

       9. Delete the original page 19 and replace with the attached Addendum A page 19.
          (NOTE: Paragraph G, items 2 and 5 have been changed.)
Page 2
Addendum B
Bid No. 7407-05-Y

         10. Delete the original page 20 and replace with the attached Addendum A page 20.
             (NOTE: Paragraph G, item 7 has been deleted and Paragraph H has been changed.)

         11. Delete the original page 21 and replace with the attached Addendum A page 21.
             (NOTE: Item 3.c.(1) has been changed.)

         12. Delete the original page 23 and replace with the attached Addendum A page 23.
             (NOTE: Item 1.a has been changed.)

         13. Delete the original page 25 and replace with the attached Addendum A page 25.
             (NOTE: Item 1.q has been changed and Paragraph K has been added.)

         14. Delete the original page 26 and replace with the attached Addendum A page 26.
             (NOTE: Items 4 and 5 have been added.)

         15. Add a seven (7) page “Questions and Answers”. (NOTE: The “Questions and
             Answers” is for informational purposes only and is not part of the contract.)


Patrick Kelleher
Principal Procurement Specialist
(619) 236-6214

April 7, 2005

                                                   CITY OF SAN DIEGO
                                                        PURCHASING DIVISION
                                                       1200 Third Avenue, Suite 200
                                                        San Diego, CA 92101-4195

Bid No. 7384-05-P-RFP                             REQUEST FOR PROPOSAL                                     Bid Closing Date: April 22, 2005
                                                                                                                              @ 4:00 p.m.
                                                            ADDENDUM B
Subject: Furnish the City of San Diego with IMPOUND AUCTION AND TOWING SERVICES, as may be required for a period
         of one (1) year from date of award, with options to renew for four (4) additional one (1) year periods, in accordance with the
         attached specifications.


Company _________________________________________                      Name __________________________________________________
                                                                                                        [PRINT OR TYPE]
Federal Tax I.D. No. ________________________________
                                                                       Signature* ______________________________________________
Street Address _____________________________________
                                                                       Title ___________________________________________________
                                                                       Date ___________________________________________________
State __________________Zip Code ___________________
                                                                       *Authorized Signature: The signer declares under penalty of perjury that
Tel. No.___________________ Fax No. ________________                   she/he is authorized to sign this document and bind the company or
E-Mail ___________________________________________                     organization to the terms of this agreement.
                                                                             ONLY PROPOSALS WITH AN ORIGINAL SIGNATURE
                                                                                         WILL BE ACCEPTED.

This cover page must be completed and submitted as part of your proposal.
If your firm is not located in California, are you authorized to collect California sales tax?            □ YES □ NO
If YES, under what Permit #___________________________

Cash discount terms ________% ________days.
[Terms of less than 20 days will be considered as Net 30 for bid evaluation purposes.]

State delivery time required: _____________________ days after receipt of order.

                               PATRICK KELLEHER/cp4, Principal Procurement Specialist
                                    Phone: (619) 236-6214                   Facsimile: (619) 236-5904
Proposal No. 7384-05-P-RFP



           The purpose of this contract is to provide auction and towing services required by the
           City of San Diego Police Department, San Diego Traffic Offenders Program Team
           (STOP) for the period of one (1) year from award of contract with options to renew
           for four (4) additional one (1) year periods. The Contractor shall provide towing,
           storage, maintenance, and disposal of forfeited vehicles in the City of San Diego,
           California. The performance area includes all incorporated areas of the City of
           San Diego, California. The City, on average, tows 215 to 250 vehicles per year of
           which 130–150 vehicles are sold by auction. In calendar year 2004, there were
           221 forfeiture tows of which 138 were sold at auction.


           1. “As is, Where is”: Vehicles will be sold with no warranty or guarantee
              whatsoever. Vehicles are to be purchased exactly as they appear at auctions.
              They will be sold based on their appearance only. “As is” is a disclaimer of
              warranties or representations. “Where is” denotes that the buyer takes the vehicle
              as found and must remove it from the point of sale.

           2. “Components”: The spare tire, jack, lug wrench, and other standard or other
              optional vehicle equipment, which are integral parts of the vehicle.

           3. “Gray Market Vehicles”: Vehicles that do not meet U.S. Department of
              Transportation (DOT) and Environmental Protection Agency Standards (EPA)
              and cannot be legally sold or registered in the United States, but are legal for
              export sale.

           4. “Personal Property”: Contents in a forfeited vehicle that are not standard
              accessories, such as clothing, personal items, CDs or tapes, furniture, appliances,
              supplies, cargo, etc.

           5. “Station Tows/Vehicle Location Transfers”: Tows from a specific fixed location
              such as the San Diego Police Department Traffic Division, a Police Authorized
              Tow Contractor, or other location as specified by STOP, etc.

           6. “Vehicles”:

               a. “Standard Vehicles”: Production-sized cars, trucks, vans, all-terrain vehicles
                  (ATVs), motorcycles, golf carts, dune buggies, or heavy equipment.

               b. “Large Vehicles”: Buses, limousines, construction/farm type vehicles,
                  recreational vehicles, motorhomes, semi-tractor trailers, and all other trucks.

                                            Page 4 of 30                               ADDENDUM B
                                                                                         April 7, 2005
Proposal No. 7384-05-P-RFP

               b. The Technical Proposal

                   The information specified herein must be addressed in the technical proposal.
                   The Contractor must expressly indicate that it satisfies and is fully capable of
                   providing each point of the RFP. Contractors shall provide responses to each
                   paragraph in the same order as the RFP citing the heading and then their
                   response. Simple “Yes”, “No”, or “Comply” responses to stated Specific
                   Provisions and Specifications are insufficient. Rather, the Contractor must
                   describe in detail how the proposed products and/or services meet or exceed
                   the stated Specific Provisions and Specifications and Contractor shall state
                   their understanding and compliance. Additionally, the Contractor must
                   explain any exception or deviation from the Specific Provisions and
                   Specifications. Proposers should also include any other information they feel
                   may be of benefit to the City.

                   Contractors are urged to read the Specific Provisions and Specifications very
                   carefully and to submit their questions, in writing, by the due date for
                   questions. Misinterpretation of Specific Provisions and Specifications by the
                   Contractor shall not relieve the Contractor of responsibility to perform the
                   contract, if awarded.

               c. Submittals Required with Technical Proposal

                   (1) Contractor’s References as specified in Section II, paragraph M, item 2.

                   (2) Proposer’s Statement of Subcontractors, use form on page 29.

                   (3) Certification Survey, use form on page 30.

                   (4) Copy of CHP form 234B for trucks assigned to this contract.

                   Failure to provide the required submittals with the proposal may be cause for
                   the proposal to be rejected as non-responsive and unacceptable.

           2. Volume II – Price Proposal

               This volume consists of and must contain the following items. Contractors shall
               not include any technical information or Specific Provisions and Specifications in
               the Price Proposal Volume. If such are included in the Price Proposal Volume,
               they may not be evaluated by the technical evaluation committee.

               a. Completion and Signing of the RFP Cover Page

                   Contractors must complete and sign the RFP cover page acknowledging any
                   addenda. Failure to submit this signed document may cause the Contractor’s
                   proposal to be rejected.

                                            Page 9 of 30                                ADDENDUM B
                                                                                          April 7, 2005
Proposal No. 7384-05-P-RFP



           The Procurement Specialist is the City’s authorized representative for all pre-contract
           matters related to this contract. Throughout the duration of the contract, the
           Purchasing Agent shall be the only individual with authority to modify any provisions
           of this contract including, without limitation, the statement of work and pricing. The
           City Contract Administrators or designees shall be the principal interface on behalf of
           the City for post-award technical matters, and shall have the authority to explain and
           provide further details regarding the City’s expectations concerning the work to be
           performed hereunder and/or the items to be provided herein. The Contract
           Administrators or designees shall have no authority to modify any provisions of this


           All required insurance shall be submitted to the City of San Diego within ten (10)
           days of provisional award. Failure to provide the insurance certificates within the
           time frame specified shall be cause for the bid to be rejected as non-responsive.
           Insurance shall be maintained by the Contractor in full force and effect during the
           entire period of performance under contract. Failure to do so shall be cause for
           termination of the contract.

           All policies must have a thirty (30) day non-cancellation clause giving the City
           thirty (30) days prior written notice in the event a policy is canceled.

           At the end of each contract year, the City reserves the right to review insurance
           requirements and to require more or less coverage depending upon assessment of the
           risk, the Contractor’s past experience, and the availability and affordability of
           increased liability insurance coverage.

           Insurance coverage must be from an insurance carrier licensed in the State of
           California and rated “A-VI” or better by the A.M. Best Key Rating Guide.

           The following coverage is required:

           •   Commercial General Liability for a minimum of one million dollars each
               occurrence ($1,000,000.00 EO). The City of San Diego must be named as an
               additional insured on the certificate

           •   Automobile Liability for a minimum of one million dollars combined single
               limit ($1,000,000.00 CSL) per person and two million dollars ($2,000,000.00) per
               accident. The City of San Diego must be named as an additional insured on the

                                           Page 14 of 30                              ADDENDUM B
                                                                                        April 7, 2005
Proposal No. 7384-05-P-RFP

           •   Garage Keepers minimum of one million dollars each occurrence
               ($1,000,000.00 EO) and two million dollars ($2,000,000.00) aggregate

           •   On Hook/Cargo in amounts not less than fifty thousand dollars ($50,000.00) /
               twenty thousand dollars ($20,000.00) / one hundred thousand dollars
               ($100,000.00), the maximum deductible shall be no more than two thousand five
               hundred dollars ($2,500.00).

           •   Workers’ Compensation coverage in accordance with the laws of the State of
               California. Policy must contain a Waiver of Subrogation of Rights against the
               City of San Diego.

           •   Performance Bond in a sum equal five hundred thousand dollars ($500,000.00)
               conditional for the performance of the Contract. The surety bond shall be
               executed by a surety company authorized to do business in the State of California,
               and approved by the City of San Diego. Proof of such performance bonding shall
               be submitted to the City of San Diego Purchasing Division prior to issuance of a
               purchase order.


           The City of San Diego may desire to renew the contract for four (4) additional one (1)
           year periods under the terms and conditions herein stated beginning on the
           anniversary of the commencement of service. The renewal is contingent on a mutual
           agreement between the City and the Contractor with such agreement to be confirmed
           within sixty (60) days prior to the expiration of the contract period. The City of San
           Diego or the Contractor may decline to confirm the renewal of the contract for any
           reason whatsoever, which shall render the renewal option null and void.

           The City’s initial letter offering the Contractor an opportunity to renew the contract
           does not constitute an award of the option period. Any option acceptance must be
           confirmed by the City of San Diego in writing, before it becomes valid.

           The City will not grant an option, for the towing charges, auction fees and
           administration fees, if the Contractor requests an increase which exceeds the average
           percentage variant for the previous twelve (12) months in the Consumer Price Index
           for Urban Wage Earners and Clerical Workers (CPI-W) for the San Diego area as
           published by the Bureau of Labor Statistics, or five percent (5%) whichever is less. If
           a price increase is requested, the Contractor must provide detailed supporting
           documentation to justify the requested increase. The requested increase will be
           evaluated by the City, and the City reserves the right to accept or reject.

           This section will not be considered in the evaluation for award.

                                           Page 15 of 30                                ADDENDUM B
                                                                                          April 7, 2005
Proposal No. 7384-05-P-RFP


       All requirements specified within this Contract are minimum requirements which the
       Contractor shall meet in providing auction services for STOP. This RFP encourages
       Contractors to demonstrate innovation and creativity with administrative, management,
       and other strategies to meet and exceed the objective of this RFP.


           The business office of the Contractor shall be located within the Contractor’s storage
           yard and be open to serve the public and the City from 8:00 a.m. to 7:00 p.m.,
           Monday through Friday, except for City observed holidays. City observed holidays

           New Years Day, Dr. Martin Luther King Jr.’s Birthday, Washington’s Birthday,
           Caesar Chavez Day, Memorial Day, Independence Day, Labor Day, Veteran’s Day,
           Thanksgiving Day, and Christmas Day.


           Contractor’s employees responding to STOP initiated requests shall be required to
           wear on their outermost garment and as near as possible to the left breast pocket of
           their shirt/blouse, a police issued tow driver identification card/permit. The ID
           card/permit will contain a 1" x 1" passport quality photograph of the employee,
           his/her name, their assigned identification number and the Contractor’s name.

           Drivers and other employees associated with the processing and removal of vehicles
           on behalf of STOP shall submit to and complete a background investigation.
           Following successful completion of the background investigations by the San Diego
           Police Department tow truck drivers shall report to the Licensing section of
           San Diego Police Department to obtain a Tow Driver Identification Card/Permit. The
           tow ID/permit shall be submitted to the STOP prior to responding to STOP initiated
           calls. Drivers will use their Police Department assigned identification number
           whenever driver identification is necessary.

           The Contractor will notify STOP within twenty-four (24) hours whenever an
           employee is terminated and will retrieve the driver’s identification card and return it
           to STOP.

           Contractor’s employees shall be qualified to perform all work undertaken by or
           assigned to them. In the event a driver or the equipment is inadequate and the
           Contractor is unable to service the request, a charge for service or labor will not be

                                           Page 17 of 30                                ADDENDUM B
                                                                                          April 7, 2005
Proposal No. 7384-05-P-RFP


           There shall be a minimum of one (1) vehicle impound storage yard, operated by the
           Contractor, within 60 miles of the tow district with adequate storage capabilities for
           all vehicles retrieved from that tow district. The Contractor shall identify in the
           proposal the exact location and size of any storage yards.
           The storage yard shall have space necessary to accommodate approximately
           thirty (30) vehicles, and comply with all applicable Building Codes and Zoning
           Regulations (including but not limited to: Fire, Sign, Zoning and Building Codes).
           There shall also be the following:
           a. Be completely enclosed by a 6' high fence with a gate.
           b. DELETED
           c. Alarms and intrusion sensors that provide immediate notification capabilities
              at all times or similar devices or security measures.
           d. Sufficient lighting to detect/deter unauthorized entrance at night.

           The Contractor is responsible for the reasonable care, custody, security, and control
           of any property of value remaining contained in towed or stored vehicles. These
           items shall be inventoried and reported to STOP the following business day.

       D. TRUCKS

           The Contractor for the service area/district shall provide equipment capable of
           providing the following services:
           1. Towing of large oversized vehicles;
           2. Towing from off road areas;
           3. Recovery services with an adjustable boom with at least five (5) tons of lifting
           4. Wheel lift towing; and
           5. Rollback towing.
           All tow trucks shall meet the California Highway Patrol Requirements Relating to
           Tow Trucks and the California Vehicle Code standards for design, equipment, and
           safety for the driver, operator, and public. Tow trucks that are not certified by the
           California Highway Patrol (CHP) using Form 234B must pass an inspection by
           the San Diego Police Department Commercial Vehicle Unit. Proof of
           certification shall be submitted with the proposal. Car carriers may be used to
           transport vehicles from STOP to the Contractor’s storage facility.
           All tow trucks used by the Contractor in performance of the contract shall be
           equipped with a system that enables the driver of the tow truck to immediately
           communicate with the Contractors dispatch center.

                                           Page 18 of 30                               ADDENDUM B
                                                                                         April 7, 2005
Proposal No. 7384-05-P-RFP

           A decal, approved by STOP, shall be displayed on the exterior of each door of
           Contractor’s tow trucks. The decal shall be obtained by the Contractor at
           Contractor’s expense. The decal shall not be displayed on any tow truck or displayed
           in any other manner or location without the approval of the Contract Administrator.


           All vehicle storage categories are specified in Section I, paragraph B, item 7.
           STOP has the discretion to determine the storage category of a vehicle and if
           maintenance will be ordered. STOP has the sole discretion in ordering any and all
           repairs on the vehicles.


           The Contractor, upon award of this contract, shall tow all vehicles identified by STOP
           from their current location to the proposed storage/auction facility within three (3)
           business days of notification by STOP.

       G. TOWING

           1. The Contractor shall not drive the forfeited vehicles except to move them within
              the storage facility. Use of vehicles for personal use is strictly prohibited.
           2. The Contractor will receive a description of the vehicle and its location
              information prior to transporting the vehicle to the Contractor’s storage facility, or
              alternate facility, as directed by STOP or an alternative Police facility. All
              vehicles will initially be transported to STOP for processing and removal of
              personal belongings by Police personnel.
           3. The Contractor will respond to STOP tow requests from officers in the field
              within thirty (30) minutes. In the event the Contractor is unable to respond within
              thirty (30) minutes STOP will authorise the vehicle to be towed by any available
           4. The Contractor will respond to STOP requests to pick up vehicles from Police
              facilities within two (2) hours.
           5. The Contractor shall provide a towing receipt for each vehicle. STOP will
              furnish receipt documents and the receipt shall, at the minimum, contain the
              following information:
               a.   Year, Make, and Model of the vehicle;
               b.   Vehicle’s Identification Number (VIN);
               c.   License Plate Number and State of Registration;
               d.   Odometer Reading of the vehicle to be transported;
               e.   STOP Forfeiture Case ID number;
               f.   Contract Driver’s Name;

                                           Page 19 of 30                                ADDENDUM B
                                                                                          April 7, 2005
Proposal No. 7384-05-P-RFP

               g. Address of the Point of Pick-Up and Delivery;

               h. Name of STOP Officer ordering the Pick-Up;

               i. Date and Time of Tow;

               j. Presence or Absence of All Vehicle Keys;

               k. Condition of the Vehicle and Damage if Applicable;

               l. Whether or Not the Vehicle is Operable;

               m. Signature of the Seizing Agent Releasing Vehicle to Contractor;

               n. NADA Loan Value of the Vehicle, if provided by STOP.

           6. The original towing receipt shall accompany the monthly billing. A second copy
              shall be retained in the vehicle’s case file, maintained by the Contractor.

           7. DELETED


           The Contractor shall provide and post the Hold Harmless Agreement, the Release
           Agreement, and STOP Vehicle Sales Terms and Conditions in a public area to be
           viewed by prospective buyers.


           1. The Contractor shall provide secure, outdoor storage facilities, maintenance, and
              viewing areas for forfeited vehicles to be auctioned. The Contractor shall provide
              indoor storage for a minimum of three (3) vehicles listed in category 1. An
              indoor storage facility is defined as a structure with substantial/permanent walls,
              roof, and floor which will allow for movement of vehicles while controlling
              surface/environmental problems such as standing water, mud, dirt, dust.

           2. The Contractor shall provide outdoor storage for at least thirty (30) vehicles. The
              outdoor storage facility shall also be controlled in such a manner as to eliminate
              standing water and mud. Acceptable surfaces are: caliches, cement, concrete, or

                                          Page 20 of 30                               ADDENDUM B
                                                                                        April 7, 2005
Proposal No. 7384-05-P-RFP

           3. The following applies to all vehicles regardless of the category:
               a. The Contractor shall inspect and inventory the forfeited vehicle. Its condition
                  shall be recorded on the vehicle’s towing receipt and signed by the Contractor
                  and by a STOP representative. Discrepancies shall be reported immediately
                  to STOP. The Contractor shall retain a copy of the report in the case file and
                  provide a copy to STOP.
               b. The Contractor assumes sole responsibility for the vehicle from pick-up until
               c. Once the vehicle arrives at the storage facility, the Contractor shall clean and
                  secure the vehicle as follows:
                   (1) All trash is to be removed. The Contractor shall notify STOP of any
                       personal property or items of value found in a vehicle while it is
                       cleaned. In addition, the Contractor shall not store or sell personal
                       property under this contract. Personal property in the vehicle is the
                       responsibility of STOP. In the event that valuable articles or any item
                       considered to be contraband are left in the vehicle due to oversight,
                       STOP shall be informed immediately.
                   (2) Close doors, windows, trunk, hood, etc., and lock the vehicle. If any
                       windows are inoperable or broken, cover then with heavy plastic sheeting
                       to protect the vehicle from the weather elements. If the Contractor is
                       unable to secure the vehicle’s window(s) or door(s), they shall contact
                       STOP immediately.
                   (3) Vehicle keys shall be stored in a secure depository. All vehicles valued at
                       over $500.00 NADA loan value that are received without ignition, door
                       and/or trunk keys shall be annotated on the tow ticket and
                       inspection/inventory sheet. The Contractor is responsible for having keys
                       made for those vehicles. Requests to STOP to have replacement keys
                       made shall reflect the case number and vehicle identification number
                       (VIN). Keys that are not recorded on the tow ticket as missing, at the time
                       of pick-up, will be the responsibility of the Contractor to replace at its own
           4. Vehicles stored under Categories 1 and 2 (see Section I, paragraph B, items 7.a
              and 7.b) shall receive the following monthly maintenance, at a minimum:
               a. Check tire pressure and add air, as necessary, prior to sale.
               b. Check fluid levels.
               c. Start the vehicle. The vehicle’s engine shall run for at least five (5) minutes.
                  The vehicle shall be moved forward and rearward at least 6' in each direction.
                  If a battery is not operable, and can no longer hold a charge, then the
                  Contractor shall seek STOP approval to purchase a new battery.
               d. Wash exterior, clean, and vacuum interior prior to auction.

                                            Page 21 of 30                                ADDENDUM B
                                                                                           April 7, 2005
Proposal No. 7384-05-P-RFP

           •   Identification/confirmation of documents authorizing release of property
               (documents issued by SDPD/STOP)

           •   Verify that the VIN or serial number matches the VIN or serial number on the

           •   Obtain signatures of individuals on the appropriate release document(s).

           STOP will provide a written order to auction in the form of a Declaration of
           Forfeiture which shall be delivered via fax, email or in person. Upon receipt of the
           Declaration of Forfeiture the Contractor shall stop charging STOP for storage of a

           The following is a list of the accepted disposal methods and the different types of
           disposal categories of vehicles:

           1. Disposal by Public Auction

               a. The Contractor shall advertise in at least one (1) local publication with an
                  average daily circulation of at least 300,000 prior to every auction.
                  Additionally, the Contractor shall advertise all vehicles for sale via a single or
                  shared Internet website for the advertising of all STOP auctions. Auctions are
                  expected to be held at least once a month.

               b. If a minimum bid is required, STOP will notify the Contractor, in writing (via
                  fax or email) or by phone.

               c. Adequate security shall be the responsibility of the Contractor on the viewing
                  days and auctions days.

               d. Prior to the pre-sale viewing, the Contractor shall prepare the property for sale
                  and notify STOP when the ordered services are completed.

                   NOTE:      Vehicles designated as scrap or salvage shall not receive auction

               e. The Contractor shall provide at least one (1) complete set of keys for all
                  vehicles valued over $500.00, unless deemed unnecessary by STOP; see
                  categories of vehicles in Section I, paragraph B, item 7.

               f. The Contractor shall handle license plates in accordance with California State
                  laws and regulations. In the absence of a state law to the contrary, the license
                  plates shall be destroyed. Certification shall be provided to STOP on the
                  disposition of each license plate.

               g. STOP reserves the right to remove any vehicle from a sale up to the time the
                  vehicle is sold. STOP will provide the Contractor with as much advance
                  notice as possible on vehicle removal from the auction process.
                                            Page 23 of 30                               ADDENDUM B
                                                                                          April 7, 2005
Proposal No. 7384-05-P-RFP

               o. The Contractor shall not charge STOP for any fees, commissions, etc., for a
                  vehicle that is not sold.

               p. Any request for information regarding forfeited vehicles shall be forwarded to

               q. Vehicles are sold “as-is”, “where-is” (see Section I, paragraph B, item 1).
                  Additionally, the Contractor shall conduct all sales in accordance with all
                  applicable Federal, State, and Local laws, regulations, and ordinances.

           2. Disposal by Other Methods

               a. STOP may determine other methods for disposal. The Contractor will receive
                  written instructions if other methods are to be used. STOP will give the
                  Contractor as much advance notice as possible on these occasions. Other
                  methods for disposal may include, but are not limited to the following:

                   (1) Release to Lien holder or claimant;

                   (2) Release to property owner;

                   (3) Release via court order.

                   (4) Release to licensed dismantler

                   (5) Release to eleemosynary institution

                   Releases as described in Items 4 and 5 above require removal of any license
                   plates on the vehicle. License plates shall be disposed of as prescribed by law.

               b. Applicable documents, which authorize the release of vehicles, will be issued
                  by STOP, in writing.


           Contractor shall invoice STOP for tow charges monthly and shall submit
           invoices for storage charges monthly or within fifteen (15) days of sale or release
           of vehicle.

                                           Page 25 of 30                               ADDENDUM B
                                                                                         April 7, 2005
Proposal No. 7384-05-P-RFP



           At a minimum the price proposal shall include the following:

           1. Towing Charges

               All vehicle-towing charges shall be computed on the actual loaded road miles or
               charged at a “flat-rate” a combination of loaded road miles and “flat-rate” is
               unacceptable. The Contractor may not charge for miles traveled en route to the
               forfeited vehicle pick-up point.

           2. Auction Fees

           3. Administration Fees

           4. Storage Fees

           5. Any and all other fees associated with the disposal of vehicles whether
              charged to the buyer or seller.


           All pricing shall include wages and fringe benefits specified in the Department of
           Labor Wage Determination numbers: 94-2051(R19), and any other applicable
           Federal Laws, etc.

                                          Page 26 of 30                               ADDENDUM B
                                                                                        April 7, 2005
                               QUESTIONS AND ANSWERS
                              PROPOSAL NO. 7384-05-P-RFP

The following questions and responses provided by the City of San Diego are for
informational purposes only.

Question 1:

The scope of work includes in part, the Contractor being compensated for offering vehicles
for sale. This activity may require the Contractor to be a licensed dealer with the
Department of Motor Vehicles. Does this RFP require Contractor(s) to be a licensed dealer
and is proof required to be included as part of the responding proposal?

Answer 2:

The Contractor will be required to comply with all applicable Federal, State, and Local laws and
regulations and the City reserves the right to verify compliance at any time.

Question 2:

Will vehicles sold under the resulting contract be exempt from smog compliance certificate
requirements, safety inspection, and Federal buyer notifications?

Answer 2:

See answer to Question 1.

Question 3:

What parties attended the pre-bid meeting?

Answer 3:

Nationwide Auction Systems
13005 Temple Avenue
City of Industry, CA 91746

Western Towing
6965 Catamaran Drive
Carlsbad, CA 92009

Rancho Del Oro Towing
P.O. Box 2150
Del Mar, CA 92014

American Towing
3519 Main Street
Chula Vista, CA 91911

Questions and Answers                      Page 1 of 7                               ADDENDUM B
                                                                                       April 7, 2005
                           QUESTIONS AND ANSWERS (cont.)
                            PROPOSAL NO. 7384-05-P-RFP

Question 4:

What questions and answers have been addressed in the pre-bid meeting or through other

Answer 4:

All questions are being answered in this addendum.

Question 5:

The insurance requirement pertaining to Garage Keepers ($2,000,000.00) is not in line with
industry standards or exposures resulting from this contract. It is unlikely insurance
carriers will issue coverage in this amount. Will the requirement be reduced to an
appropriate amount ($250,000.00)?

Answer 5:

See revised Section III, paragraph B of this addendum.

Question 6:

The deductible amount for On Hook/Cargo is set at $5,000.00 at the same time the financial
strength of the Contractor is expected to be evaluated and approved by the City. Will this
requirement be modified to be no more than $5,000.00 unless approved by the City?

Answer 6:

See revised Section III, paragraph B of this addendum.

Question 7:

The amount of the required Performance Bond ($500,000.00) is not in line with the
exposure of the resulting contract. This amount is probably twice the combined total of the
value of the vehicles to be sold in one (1) year. The cost associated for this bond may be
$100.00 per vehicle based on 150 vehicles sold in a year. Will an adjustment be made to
this requirement?

Answer 7:

This requirement has been amended as part of the attached addendum.

Question 8:

In regards to increased fees for option years; how will changes or increases in requirements
be factored in? The RFP addressed potential increase in insurance requirements and
additional operational changes can be anticipated as well. Will this be above and beyond
CPI calculations?
Questions and Answers                      Page 2 of 7                           ADDENDUM B
                                                                                   April 7, 2005
                            QUESTIONS AND ANSWERS (cont.)
                             PROPOSAL NO. 7384-05-P-RFP

Answer 8:

All increases in costs, including increase in insurance premiums, based upon the specifications
and scope of work must be incorporated into the CPI calculations. Any increases due to a
change in the scope of work will be negotiated and incorporated as an amendment to the

Question 9:

The Technical Evaluation states each item of the Specific Provisions and Specifications
must be addressed. This section also includes the heading “1. Meeting the Specific
Provisions and Technical Specifications”. The RFP contains only Section IV, “Specific
Provisions”. Is it correct that Specifications and Technical Specifications are not separate
sections requiring additional responses?

Answer 9:


Question 10:

The requirement to have business hours until 7:00 p.m. is not the standard in the industry.
In view of the small number of vehicles that are estimated to be in storage it may not be
cost effective to extend hours of office operations past 5:00 p.m. Will this requirement be
changed to 5:00 p.m.?

Answer 10:


Question 11:

Storage yard requirements include concertina wire which is prohibited by the City; will
this requirement be deleted?

Answer 11:

See revised Section IV, paragraph C of this addendum.

Question 12:

For vehicles removed under the transition period will the Contractor be required to pay
any outstanding charges prior to towing the vehicles?

Answer 12:

The Contractor will not be liable for any outstanding charges.

Questions and Answers                       Page 3 of 7                               ADDENDUM B
                                                                                        April 7, 2005
                              QUESTIONS AND ANSWERS (cont.)
                               PROPOSAL NO. 7384-05-P-RFP

Question 13:

When the Contractor is unable to respond within thirty (30) minutes and other available
means are used; will tow trucks or personnel without Police tow ID/permits be utilized?
Will the failure to respond have any negative consequences?

Answer 13:

Only tow trucks and personnel with Police ID and permits will be utilized. Failure to respond to
tow requests may result in termination of contract and may be a factor considered at time of
contract renewal to determine if contract should be renewed.

Question 14:

If subcontractors are used, will they be required to supply proof of insurance to the same
standards to the City? Will subcontractors’ trucks be required to meet the same
requirements and have a STOP sticker? Will subcontractor employees be required to pass
the same background check and obtain a Tow Driver Identification Card/Permit?

Answer 14:

The successful Contractor will be responsible for ensuring that any subcontractors used meet the
City’s insurance requirements and may be required to furnish proof of this. Any subcontractors
will be required to meet all the requirements of this contract including background checks and
have STOP stickers on their vehicles.

Question 15:

Where the RFP would require the Contractor to have keys made on vehicles received
without keys, will there be a fee allowed to compensate for this cost?

Answer 15:

If this is a cost that is included in the Pricing Proposal it will be allowed.

Question 16:

Although the RFP addresses storage fees; the Pricing Proposal does not request a rate for
storage fees. Is there a storage fee?

Answer 16:

Any storage fees must be included in the Pricing Proposal.

Questions and Answers                          Page 4 of 7                           ADDENDUM B
                                                                                       April 7, 2005
                            QUESTIONS AND ANSWERS (cont.)
                             PROPOSAL NO. 7384-05-P-RFP

Question 17:

The Pricing Proposal states, “at a minimum the price proposal shall include…” are
additional fees allowable? How will an apples to apples comparison be made if different
rate structures are proposed?

Answer 17:

Pricing Proposals must include all fees that are associated with this contract. If different rate
structures are offered the City will evaluate the pricing Proposals based on various scenarios to
determine which offers the best overall value to the City.

Question 18:

Based on the fee structure in the Pricing Proposal of the RFP and information indicating
there will be “Disposal by Other Methods” which include release back to lien holders,
vehicle owners and via court orders it is very unclear how the Contractor will be paid. The
RFP indicates STOP will not be charged any fees for any vehicle that is not sold. It
appears impossible to calculate a cost basis with the information provided. What fees will
the Contractor be allowed to charge on vehicles not sold? How many vehicles are expected
to be disposed of by other means? Are these vehicles included in the stated expected
volume of 130-150 vehicles? The Contractor should know in advance if a large number of
vehicles will be handled that are not sold, especially if the Contractor is not to receive
payment on these vehicles.

Answer 18:

See answer to 17 regarding costs. See revised Section I, paragraph A on number of vehicles
towed, sold, etc.

Question 19:

How is the Contractor going to receive the tow requests from the STOP officer?

Answer19: The Contractor will be notified by telephone.

Question 20:

The text reads, “All trucks shall meet the California Highway Patrol Requirements
Relating to Tow Trucks and the California Vehicle Code standards for design, equipment,
and safety for the driver, operator and public.” The question is that there is a large
difference between meeting (which can be subjective) and being certified via the CHP
Form 234B and the annual CHP inspection. Will you require proof of certification?

Answer 20:

See revised Section IV, paragraph D of this addendum.

Questions and Answers                       Page 5 of 7                                ADDENDUM B
                                                                                         April 7, 2005
                              QUESTIONS AND ANSWERS (cont.)
                               PROPOSAL NO. 7384-05-P-RFP

Question 21:

Page 21, Paragraph I, item 3.c: Does this mean that immediately upon arrival at the
Contractors yard, cleaning is to begin? Should cleaning be done after the vehicle
inventory, after STOP has taken possession of any personal items left in the car, after the
Contractor is furnished with the Declaration of Forfeiture? Please clarify this point. Also,
immediately below that in subsection (1) which states, “All trash is to be removed.” Who
will decide what is “trash” and what are personal belongings?

Answer 21:

See revised Section IV, paragraph G, item 2 and paragraph I, item 3.c.(1) of this addendum.

Question 22:

Page 23, Paragrph J reads, “Upon receipt of the Declaration of Forfeiture the Contractor
shall stop charging STOP for storage of a vehicle.” Question: In the event the vehicle does
not sell through no fault of the Contractor, how will storage and/or administrative costs
accrue and be invoiced? Page 23, Paragraph J, item 1.b, “Disposal By Public Auction”,
discusses a minimum bid set by STOP. The question is that if the minimum bid is not met
and the vehicle is carried over to the following month’s auction, how will storage and/or
administrative fees accrue?


This must be addressed as part of the Pricing Proposal.

Question 23:

Page 23, Paragraph J, item 1.a, “Disposal by Public Auction”, reads that the Contractor
shall advertise in at least one (1) local publication with a daily circulation of at least 350,000
prior to every auction. Question: There is currently no local San Diego publication that
meets that particular criteria all seven (7) days of the week. Can this be clarified?

Answer 23:

See revised Section IV, paragraph J, item 1.a of this addendum.

Question 24:

Page 25, Paragraph J, item 1.q refers to a “Buyer’s Guide”, could you please define this

Answer 24:

This item has been deleted.

Questions and Answers                       Page 6 of 7                               ADDENDUM B
                                                                                        April 7, 2005
                            QUESTIONS AND ANSWERS (cont.)
                             PROPOSAL NO. 7384-05-P-RFP

Question 25:

Page 27, “Proposer’s References” states, “The Proposer is required to provide a minimum
of five (5) references where work of a similar size and nature was performed within the
past three (3) years.” Question: Can we submit one (1) reference we have had an
“exclusive” contract with since January 1, 1995, performing work of a similar nature
where the volume of work is over fifteen (15) times the volume that this RFP is projecting
on an annual basis?

Answer 25:

The City will consider fewer references on a case by case basis but reserves the right to ask for
additional references if they deem that the ones submitted do not adequately address experience
of the nature and scope of work required by the RFP.

Question 26:

Page 17, Section IV, “Specific Provisions”, paragraph B, “Contractors Employees” states
that “Qualified employees shall not have a felony conviction on their record.” There are
existing Federal and State laws that prohibit such “blanket” exclusions. Please clarify this

Answer 26:

This section has been revised in the attached addendum

Question 27:

Page 10, Paragraph L, “Acceptability of Proposals”, the text reads, “…the Procurement
Specialist may reject in whole or in part any and all proposals if such is in the City’s
interest, and may reject proposals that are outside the competitive range relative to price,
without performing a technical evaluation.” And further down it states, “The Procurement
Specialist may limit competitive range to firms highly rated technically by the City for the
purpose of efficiency.” These sentences are conflicting and confusing, could you please

Answer 27:

This section has been revised in the attached addendum

Questions and Answers                       Page 7 of 7                                ADDENDUM B
                                                                                         April 7, 2005

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