...Title
Second Amendment with CFKAA Holdings, LLC. (as assigned to by AutoReturn US, LLC) for Services Relating to Tow and Disposal of Recreational Vehicles.
...Recommendations
(a) Extend the term of the Agreement for up to eight additional one-year terms, and is separately exercising a “Notice of Option to Extend Agreement” to extend the term from the Initial Term ending September 27, 2025, to the ending of Option Term 1 on September 27, 2026, in anticipation of full-execution of this Second Amendment.
(b) Amend the total compensation for this Agreement in U.S. dollars shall not exceed $2,107,585 during the Initial Term and Option Term 1 (“Maximum Compensation”). The terms, rates, and schedule of payment are set forth in the attached Second Revised Exhibit B and Second Revised Exhibit B-1. City will make payments when due in the form of a check, cashier’s check, or wire transfer drawn on a U.S. financial institution.
(c) Add the definition for “Recreational Vehicle” means a vehicle, including motor home, mobile home, cab-over campers, travel trailer, truck camper, camping trailer, homemade trailer, or other similar type of oversized vehicle, with or without motive power, designed or used for human habitation.
(d) For City-Generated Tows of a Recreational Vehicle, City shall reimburse Contractor $3,200 per Recreational Vehicle, subject to the maximum compensation authorized under the Agreement. Any unexpended amount during the Initial Term shall carryover to the Option Term 1 (“RV Carryover” as defined in Second Revised Exhibit B-1). This reimbursement of $3,200 per Recreational Vehicle shall only apply to Recreational Vehicles that are Qualified Vehicles.
(e) Contractor shall not refuse or deny any request for City-Generated Tows of Recreational Vehicles. Contractor agrees and acknowledges that the City will reimburse Contractor $3,200 per Recreational Vehicle towed, and in consideration of such reimbursement, Contractor agrees to accept any and all City-Generated Tow requests for Recreational Vehicles.
(f) In the event that Contractor refuses or fails to comply with any request for a City-Generated Tow of a Recreational Vehicle, City shall have the right to reduce any payment to Contractor in the amount of $2,500 per Recreational Vehicle that is not serviced by Contractor. City shall have the right to offset this fee against any payment due to Contractor or any invoice submitted by Contractor. The offset may be applied directly to the total amount due for services rendered, and the City shall deduct the withheld amounts from the total invoice sum. This is in lieu of the liquidated damages set forth in 3.25 of Exhibit A to this Agreement.
CEQA: Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment. (Police)