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HomeMy WebLinkAboutBID - 7514 TOWING SERVICESBID 7514 Towing Services Page 1 of 16 INVITATION TO BID 7514 TOWING SERVICES BID OPENING: 3:00 P.M. (our clock), JUNE 12, 2013 The City of Fort Collins is requesting bids from firms for a single, qualified vendor to handle the City’s towing needs and for Police evidence tows in accordance with the scope of services provide within this proposal. Sealed bids will be received and publicly opened at the office of the Director of Purchasing and Risk Management, PO Box 580, 215 North Mason St., 2nd floor, Fort Collins, Colorado 80522, at the time and date noted on the bid proposal and/or contract documents. If delivered, they are to be sent to 215 North Mason Street, 2nd Floor, Fort Collins, Colorado 80524. If mailed, the address is P.O. Box 580, Fort Collins, 80522- 0580. Bids must be received at the Purchasing Office prior to 3:00 p.m. (our clock), June 12, 2013. The City encourages all disadvantaged business enterprises to submit bid in response to all invitations and will not be discriminated against on the grounds of race, color, national origin. Questions concerning the scope of the bid should be directed to Eric Tacoronte at (970) 221-6613 or etacoronte@fcgov.com. Questions regarding bid submittal or process should be directed to Doug Clapp, Senior Buyer at (970) 221-6776. A copy of the Bid may be obtained as follows: 1. Download the Bid from the Purchasing Webpage, Current Bids page, at: http://fcgov.com/eprocurement Special Instructions All bids must be properly signed by an authorized representative of the company with the legal capacity to bind the company to the agreement. Bids may be withdrawn up to the date and hour set for closing. Once bids have been accepted by the City and closing has occurred, failure to enter into contract or honor the purchase order will be cause for removal of supplier's name from the City of Fort Collins' bidders list for a period of twelve months from the date of the opening. The City may also pursue any remedies available at law or in equity. Bid prices must be held firm for a period of forty- five (45) days after bid openings. Financial Services Purchasing Division 215 N. Mason St. 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6775 970.221.6707 fcgov.com/purchasing BID 7514 Towing Services Page 2 of 16 Submission of a bid is deemed as acceptance of all terms, conditions and specifications contained in the City's specifications initially provided to the bidder. Any proposed modification must be accepted in writing by the City prior to award of the bid. Only bids properly received by the Purchasing Office will be accepted. All bids should be clearly identified by the bid number and bid name contained in the bid proposal. No proposal will be accepted from, or any purchase order awarded, to any person, firm or corporation in default on any obligation to the City. Bids must be furnished exclusive of any federal excise tax, wherever applicable. Bidders must be properly licensed and secure necessary permits wherever applicable. Bidders not responding to this bid will be removed from our automated vendor listing for the subject commodities. The City may elect where applicable, to award bids on an individual item/group basis or on a total bid basis, whichever is most beneficial to the City. The City reserves the right to accept or reject any and all bids, and to waive any irregularities or informalities. Sales prohibited/conflict of interest: no officer, employee, or member of City Council, shall have a financial interest in the sale to the City of any real or personal property, equipment, material, supplies or services where such officer or employee exercises directly or indirectly any decision-making authority concerning such sale or any supervisory authority over the services to be rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any gift, gratuity, favor, entertainment, kickback or any items of monetary value from any person who has or is seeking to do business with the City of Fort Collins is prohibited. Freight terms: unless otherwise noted, all freight is F.O.B. Destination, Freight Prepaid. All freight charges must be included in prices submitted on proposal. Discounts: any discounts allowed for prompt payment, etc., must be reflected in bid figures and not entered as separate pricing on the proposal form. Purchasing restrictions: your authorized signature of this bid assures your firm's compliance with the City's purchasing restrictions. A copy of the resolutions is available for review in the Purchasing Office or the City Clerk's Office. Request Resolution 91- 121 for cement restrictions. Collusive or sham bids: any bid deemed to be collusive or a sham bid will be rejected and reported to authorities as such. Your authorized signature of this bid assures that such bid is genuine and is not a collusive or sham bid. Bid results: for information regarding results for individual bids send a self-addressed, self-stamped envelope and a bid tally will be mailed to you. Bid results will be posted in our office 7 days after the bid opening. Gerry S. Paul Director of Purchasing and Risk Management BID 7514 Towing Services Page 3 of 16 BID PROPOSAL 7514 TOWING SERVICES BID OPENING: June 12, 2013, 3:00 p.m. (our clock) Background: The City of Fort Collins is seeking a single vendor to handle City towing needs and for Police evidence tows. The City has a wide variety of towing requirements, though the actual number of tows is not large -- generally fewer than 10 per month, many of which are for relocation purposes. Towing may be requested by any City department although most towing services will be provided to Engineering, Water Utilities, Traffic, and Streets during street rehab or street sweeping operations and during winter storms. In addition, Fleet Services will request towing of City-owned vehicles, Transfort will occasionally need to have buses towed, and Police Services will require that evidence tows be handled by the City's towing Service Provider. Specifications: The type of towing services required will vary by type of vehicle and type of tow. Automobiles and light to medium duty trucks may be towed using a tilt-bed wrecker or a standard wrecker with underbody or wheel dolly equipment. A tilt-bed wrecker may be specified by the City whenever the requesting personnel judge that to be the most appropriate method. Wreckers dispatched to tow single-axle, heavy duty trucks and mini-buses must have a GVWR of between 19,501 and 29,999 pounds. Those dispatched to tow tandem-axle trucks and full-size buses must have a GVWR of at least 30,000 pounds. Full-size buses may be flat-towed using a tow bar attached to the eyelets at the front of the bus. If that is not appropriate, the wrecker must be able to lift the front end of the bus and tow it safely without damaging the wheelchair lift in the front of the bus. Vehicles will occasionally need to be towed long distances to a repair facility. At the sole discretion of the City, Service Provider may be required to transport the vehicle on a trailer or using a tilt-bed wrecker with sufficient load capacity. Service Provider personnel may enter vehicle to be towed only when necessary to prepare the unit for towing. When relocating a vehicle, the vehicle must be safely parked in the new location, windows closed, and locked securely. If a vehicle is locked and the emergency brake is set it must be towed using a dolly. At the request of City personnel, vehicles parked in areas marked for street rehab or sweeping operations may be towed to Service Provider's lot and stored until reclaimed by the owner. Such vehicles must be safely parked in the storage lot, windows closed. Service Provider shall maintain true and accurate records according to the daily record requirements of CRS Section 42-5-105. After moving vehicles to accommodate street sweeping, street rehab or during winter storms, Service Provider must forward relocated vehicle make, color, and license number to the Department Representative who requested the towing. BID 7514 Towing Services Page 4 of 16 Towing shall be done so as to prevent damage to towed vehicles or to minimize further damage to vehicles which are already damaged. The Service Provider shall have a fenced, secure vehicle storage lot. Stored vehicles shall not be released until the rightful ownership of the vehicle is established. The City shall not be responsible for payment of towing or storage fees for vehicles towed to the Service Provider storage lot. If the Service Provider cannot be reached at the designated phone number three or more times in a 30-day period, or if the Service Provider fails to respond to a towing request within the time limits established in these Specifications more than three times in a 30-day period, the Service Provider agreement may be terminated. Service Provider shall: 1. Own or lease and operate a fleet of tow vehicles capable of providing all the towing services described in the bid proposal. Leased vehicles must be in regular use by the Service Provider and have been procured under multi-year operating lease agreements. 2. Provide towing services, on an as-needed basis, from the location of the disabled vehicle to the designated repair facility. Drivers must be familiar with the four main City shop locations although vehicles are sometimes towed to other locations. 3. Make all vehicle hook-ups according to manufacturer’s specifications contained in the vehicle “Owner’s Manual” or according to the most current edition of the “AAA Towing Manual”. 4. Have a valid Tow Permit issued by the Colorado Public Utilities Commission and comply with all applicable Federal, State, and local regulations 5. Provide the City with a single telephone number to be used for requesting towing services 24 hours a day, seven days a week. This phone number must be answered by a person who can dispatch a tow truck and give the requesting employee an accurate estimated time of arrival (ETA), or schedule towing when immediate service is not being requested. 6. Dispatch tow trucks using radio, cellular phone or other electronic means. 7. Be at the disabled vehicle location within 45 minutes of receiving a request for towing services, unless the City employee initiating the request authorizes additional time. 8. Immediately, upon receiving a request for tow, advise the City employee if a tow truck cannot be at the disabled vehicle location within 45 minutes so service can be requested elsewhere. 9. Provide towing using equipment appropriate to the type of vehicle being towed. 10. Provide the City employee who requested Relocation towing or had vehicles towed to the Service Provider's lot with a list of vehicles towed. BID 7514 Towing Services Page 5 of 16 11. Provide for storage of spare tires for use in replacing tires on Police vehicles for after-hours repairs. 12. Provide tire changes on Police vehicles for after-hours repairs. City employees will: 1. Call the listed Service Provider number to request appropriate towing services. 2. Provide dispatch personnel with the disabled vehicle type, location, vehicle damage, and any other information pertinent to the requested tow. 3. Ensure access to City repair facility if the vehicle is to be towed to one of those locations. 4. Provide directions and contact information when a vehicle is to be towed to any other location. 5. Provide lists of relocated vehicles to the Police Department. Other Requirements: 1. Service Providers must notify the City Representative when towing equipment is added or deleted from their inventory. 2. Service Provider must obtain a clearance from Fort Collins Police Services for drivers prior to assigning them to tow City vehicles. Police Services will check all sources of information they deem relevant and appropriate before issuing a clearance. The Service Provider shall provide the City Representative with the following information about each person seeking clearance: • Full name, date of birth, social security number, and valid driver’s license number. 3. No person may tow City vehicles if that person has: • An active criminal arrest warrant. • A conviction for any felony, on parole for such felony, or who has been released from custody for such felony within the previous ten years. • A misdemeanor conviction on drug related charges within the previous five years. • A non-drug-related misdemeanor or petty offense conviction within the past three years. Definitions: 1. Normal Towing – Flat towing, towing by lifting either end of a vehicle, towing using a dolly, or transporting the disabled vehicle using a tilt-bed wrecker. 2. Long Distance Tow – Towing to or from a repair facility outside the Fort Collins Towing Area. This type of towing will normally be done with a tilt-bed wrecker or by BID 7514 Towing Services Page 6 of 16 trailer. 3. Relocation Towing – Moving vehicles out of the path of street rehab or street sweeping operations and moving vehicles off Snow Emergency routes during winter storms. 4. Towing to Service Provider's Lot – When requested by City personnel, Service Provider will tow vehicles parked in areas marked for street rehab or sweeping operations to the Service Provider's secure storage area and stored until reclaimed by the owner. 5. Fort Collins Towing Area – Geographical area where hookup prices and local trip fees apply. Outside this area hookup fees are calculated on a per mile basis, as specified for Long Distance towing. This area is bounded by the foothills on the west, I-25 on the east, by CR 54 on the north, and on the south by CR30, plus any place within the City limits lying outside that area. Change Notifications: Notify the City Representative when adding or removing vehicles and equipment from your fleet equipment listing for these services. Provide the City Representative with the driver information specified above and do not assign any new drivers to City towing until a clearance has been received from Police Services. The City Representative will notify you when such clearance is received. The City Representative for this agreement is: Doug Clapp, Senior Buyer, 221-6776. BID 7514 Towing Services Page 7 of 16 Bid Proposal for Bid # 7514 Towing Services Type of Towing Towed Vehicle Type Towing Equipment Price per Hookup Price per Loaded Mile Normal Tow Car, Van, SUV, Truck to 11,000 GVWR Std Wrecker or Tilt-Bed 10,000 - 19,500 GVWR $ each N/A Normal Tow Truck, Single Axle, over 11,000 GVWR, or Mini Bus Wrecker or Tilt-Bed 19,501 - 29,999 GVWR $ each N/A Normal Tow Truck, Tandem Axle, or Full- size Bus Wrecker or Tilt-Bed Over 30,000 GVWR $ each N/A Long Distance Car, Van, SUV, Truck to 11,000 GVWR Std Wrecker, Tilt-Bed 10,000 - 19,500 GVWR $ / mile $ Long Distance Truck, Single Axle, over 11,000 GVWR, or Mini Bus Tilt-Bed or Trailer 19,501 - 29,999 GVWR $ / mile $ Long Distance Truck, Tandem Axle, or Full- size Bus Tilt-Bed or Trailer Over 30,000 GVWR $ / mile $ Relocation Car, Van, SUV, Light Truck Std Wrecker or Tilt-Bed 10,000 - 19,500 GVWR $ each N/A – tow less than one mile Tow to Service Provider's Lot Car, Van, SUV, Light Truck Std Wrecker or Tilt-Bed 10,000 - 19,500 GVWR $ each $ Misc. Charges Vehicle Type Cost Dolly Fee As required, enter cost in addition to hookup fee $ Hourly Labor Rate To be used in calculating all additional labor costs $ /hour Storage Fee Enter fee charged per day, week, and month $_______ day $_______ week $_______ month Jump Start Car, Van, SUV, & Light Truck, Enter Trip Fee plus 15 minutes labor $_______ trip $_______ labor Jump Start HD Trucks and Equipment, Trip Fee plus 30 minutes labor $_______ trip $_______ labor Tire Changes Car, Van, SUV, & Light Truck, Trip Fee plus 15 minutes labor per tire $_______ trip $_______ labor ** Reference Method of Award section ** Signature: Date: Print Name: Title: Company: Address: Phone: Email: BID 7514 Towing Services Page 8 of 16 Equipment and Driver Information Sheet for Bid # 7514 Towing Services Equipment List: List all vehicles which will be used for towing City vehicles. For leased vehicles, if any, provide details of the lease agreement on a separate sheet. Make Model Year GVW Type: Wrecker, HD Wrecker, Tilt-Bed Wrecker, Trailer Driver List: Provide information on all drivers who will be assigned to City towing. Drivers may not tow City vehicles until they have been cleared by Police Services. Full Name Date of Birth SSN Driver’s License # It is the Service Provider’s responsibility to notify the City Representative of changes or additions to Equipment and to obtain clearance for new drivers prior to assigning them to City towing. BID 7514 Towing Services Page 9 of 16 Method of Award: This bid will be awarded based on the following criteria: 1. The responsible bidder must have the equipment to handle all of the different types of towing and vehicle type. 2. The responsible bidder must provide the cost for each Type of Towing Service. 3. The Bidders will be evaluated on the total cost on the three different vehicle types for Normal Towing (see Bid Proposal sheet) and with consideration of the other available towing services and miscellaneous charges. Towing Services Agreement Awarded vendor must enter into a Services Agreement with the City (sample attached). Submittals: Bidders must submit: • Completed Bid Proposal • Completed Equipment and Driver Information Sheet • Insurance information as specified in Exhibit A For questions concerning this bid, contact Doug Clapp, Senior Buyer, 970-221-6776 or dclapp@fcgov.com. For relocation towing questions relating to: • Fleet towing of City-owned vehicles - Eric Tacoronte, 970-221-6613 • Streets rehab and winter storms - Steve Varnell, office – 970-221-6013 • Transfort buses - Mike Conley, office – 970-221-6625, cell# 970-218-8039. • Water Utilities - Dwight Dufloth, office – 970-416-2165, cell# 970-222-3050 • Engineering - Rick Richter, office - 970-221-6798, cell# 970-222-1132 • Traffic – Britney Sorensen, office - 970-221-6816, cell# 970-222-5533 Doug Clapp, Senior Buyer, 970-221-6776, is the City Representative for all general issues arising under this bid and agreement. BID 7514 Towing Services Page 10 of 16 SERVICES AGREEMENT (sample) Towing THIS AGREEMENT made and entered into the day and year set forth below by and between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the "City" and , hereinafter referred to as "Service Provider". WITNESSETH: In consideration of the mutual covenants and obligations herein expressed, it is agreed by and between the parties hereto as follows: 1. Scope of Services The Service Provider agrees to provide towing services in accordance with the Specifications contained in the current City of Fort Collins Towing Services bid. 2. Contract Period This Agreement shall commence June 30, 2013, and shall continue in full force and effect until July 1, 2014, unless sooner terminated as herein provided. This agreement may be renewed for additional one-year terms, not to exceed four (4) such one-year terms unless the agreement has been canceled as provided herein. Pricing changes shall be negotiated by and agreed to by both parties. Written notice of renewal shall be provided to the Service Provider and mailed no later than thirty (30) days prior to contract end. 3. Compensation The City shall pay the Service Provider for the performance of this Contract, subject to additions and deletions provided herein, according to the following rates: *Rate table from bid will be entered here. 4. Delay If either party is prevented in whole or in part from performing its obligations by unforeseeable causes beyond its reasonable control and without its fault or negligence, then the party so prevented shall be excused from whatever performance is prevented by such cause. To the extent that the performance is actually prevented, the Service Provider must provide written notice to the City of such condition within fifteen (15) days from the onset of such condition. BID 7514 Towing Services Page 11 of 16 5. Early Termination by City/Notice Notwithstanding the time periods contained herein, the City may terminate this Agreement at any time without cause by providing written notice of termination to the Service Provider. Such notice shall be delivered at least fifteen (15) days prior to the termination date contained in said notice unless otherwise agreed in writing by the parties. All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to the addresses listed at the end of this agreement. In the event of early termination by the City, the Service Provider shall be paid for services rendered to the date of termination, subject only to the satisfactory performance of the Service Provider's obligations under this Agreement. Such payment shall be the Service Provider's sole right and remedy for such termination. 6. City Representative The City will designate, prior to commencement of the work, its representative who shall make, within the scope of his or her authority, all necessary and proper decisions with reference to the services provided under this agreement. All requests concerning this agreement shall be directed to the City Representative. 7. Independent Service provider The services to be performed by Service Provider are those of an independent service provider and not of an employee of the City of Fort Collins. The City shall not be responsible for withholding any portion of Service Provider's compensation hereunder for the payment of FICA, Workmen's Compensation or other taxes or benefits or for any other purpose. 8. Personal Services It is understood that the City enters into the Agreement based on the special abilities of the Service Provider and that this Agreement shall be considered as an agreement for personal services. Accordingly, the Service Provider shall neither assign any responsibilities nor delegate any duties arising under the Agreement without the prior written consent of the City. 9. Acceptance Not Waiver The City's approval or acceptance of, or payment for any of the services shall not be construed to operate as a waiver of any rights or benefits provided to the City under this Agreement or cause of action arising out of performance of this Agreement. BID 7514 Towing Services Page 12 of 16 10. Warranty Service Provider warrants that all work performed hereunder shall be performed with the highest degree of competence and care in accordance with accepted standards for work of a similar nature. 11. Default Each and every term and condition hereof shall be deemed to be a material element of this Agreement. In the event either party should fail or refuse to perform according to the terms of this agreement, such party may be declared in default thereof. 12. Remedies In the event a party has been declared in default, such defaulting party shall be allowed a period of ten (10) days within which to cure said default. In the event the default remains uncorrected, the party declaring default may elect to: a. Terminate the Agreement and seek damages; b. Treat the Agreement as continuing and require specific performance; or c. Avail himself of any other remedy at law or equity. If the non-defaulting party commences legal or equitable actions against the defaulting party, the defaulting party shall be liable to the non-defaulting party for the non-defaulting party's reasonable attorney fees and costs incurred because of the default. 13. Binding Effect This writing, together with the exhibits hereto, constitutes the entire agreement between the parties and shall be binding upon said parties, their officers, employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal representatives, successors and assigns of said parties. 14. Indemnity/Insurance a. The Service Provider agrees to indemnify and save harmless the City, its officers, agents and employees against and from any and all actions, suits, claims, demands or liability of any character whatsoever brought or asserted for injuries to or death of any person or persons, or damages to property arising out of, result from or occurring in connection with the performance of any service hereunder. b. The Service Provider shall take all necessary precautions in performing the work hereunder to prevent injury to persons and property. BID 7514 Towing Services Page 13 of 16 c. Without limiting any of the Service Provider's obligations hereunder, the Service Provider shall provide and maintain insurance coverage naming the City as an additional insured under this Agreement of the type and with the limits specified within Exhibit “A”, consisting of one (1) page, attached hereto and incorporated herein by this reference. The Service Provider before commencing services hereunder, shall deliver to the City's Director of Purchasing and Risk Management, 215 N Mason, 2nd Floor, Fort Collins, Colorado 80524, one copy of a certificate evidencing the insurance coverage required from an insurance company acceptable to the City. 15. Entire Agreement This Agreement, along with all Exhibits and other documents incorporated herein, shall constitute the entire Agreement of the parties. Covenants or representations not contained in this Agreement shall not be binding on the parties. 16. Law/Severability The laws of the State of Colorado shall govern the construction interpretation, execution and enforcement of this Agreement. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Agreement. 17. Prohibition Against Employing Illegal Aliens This paragraph shall apply to all Contractors whose performance of work under this Agreement does not involve the delivery of a specific end product other than reports that are merely incidental to the performance of said work. Pursuant to Section 8-17.5-101, C.R.S., et. seq., Contractor represents and agrees that: a. As of the date of this Agreement: 1. Contractor does not knowingly employ or contract with an illegal alien; and 2. Contractor has participated or attempted to participate in the basic pilot employment verification program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, administered by the United States Department of Homeland Security (the “Basic Pilot Program”) in order to confirm the employment eligibility of all newly hired employees. BID 7514 Towing Services Page 14 of 16 b. Contractor shall not knowingly employ or contract with an illegal alien to perform work under this Agreement or knowingly enter into a contract with a subcontractor that knowingly employs or contracts with an illegal alien to perform work under this Agreement. c. Contractor shall continue to apply to participate in the Basic Pilot Program and shall in writing verify same every three (3) calendar months thereafter, until Contractor is accepted or the public contract for services has been completed, whichever is earlier. The requirements of this section shall not be required or effective if the Basic Pilot Program is discontinued. d. Contractor is prohibited from using Basic Pilot Program procedures to undertake pre-employment screening of job applicants while this Agreement is being performed. e. If Contractor obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien, Contractor shall: 1. Notify such subcontractor and the City within three days that Contractor has actual knowledge that the subcontractor is employing or contracting with an illegal alien; and 2. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the illegal alien; except that Contractor shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. f. Contractor shall comply with any reasonable request by the Colorado Department of Labor and Employment (the “Department”) made in the course of an investigation that the Department undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5-102 (5), C.R.S. g. If Contractor violates any provision of this Agreement pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If this Agreement is so terminated, Contractor shall be liable for BID 7514 Towing Services Page 15 of 16 actual and consequential damages to the City arising out of Contractor’s violation of Subsection 8-17.5-102, C.R.S. h. The City will notify the Office of the Secretary of State if Contractor violates this provision of this Agreement and the City terminates the Agreement for such breach. City: Service Provider: City of Fort Collins Purchasing PO Box 580 Fort Collins, CO 80521 By: _______________________________ Gerry S. Paul Director of Purchasing & Risk Management Date: _____________ Company Name:_____________________ Corp., DBA, Partnership, LLC or PC? Address: ___________________________ ___________________________________ By: _________________________________ Print Name: __________________________ Date: ______________ BID 7514 Towing Services Page 16 of 16 EXHIBIT A INSURANCE REQUIREMENTS 1. The Service Provider will provide, from insurance companies acceptable to the City, the insurance coverage designated hereinafter and pay all costs. Before commencing work under this bid, the Service Provider shall furnish the City with certificates of insurance showing the type, amount, class of operations covered, effective dates and date of expiration of policies, and containing substantially the following statement" * "The insurance evidenced by this Certificate will not be cancelled or materially altered, except after ten (10) days written notice has been received by the City of Fort Collins." In case of the breach of any provision of the Insurance Requirements, the City, at its option, may take out and maintain, at the expense of the Service Provider, such insurance as the City may deem proper and may deduct the cost of such insurance from any monies which may be due or become due the Service Provider under this Agreement. The City, its officers, agents and employees shall be named as additional insured on the Service Provider's general liability and automobile liability insurance policies for any claims arising out of work performed under this Agreement. 2. Insurance coverage shall be as follows: A. Workers' Compensation & Employer's Liability. The Service Provider shall maintain during the life of this Agreement for all of the Service Provider's employees engaged in work performed under this agreement: 1. Workers' Compensation insurance with statutory limits as required by Colorado law. 2. Employer's Liability insurance with limits of $100,000 per accident, $500,000 disease aggregate, and $100,000 disease each employee. 3. Cargo coverage with limits of $25,000 per occurrence. 4. Maintain a minimum of $150,000 garage keeper's liability and "on hook" insurance coverage. B. Commercial General & Vehicle Liability. The Service Provider shall maintain during the life of this Agreement such commercial general liability and automobile liability insurance as will provide coverage for damage claims of personal injury, including accidental death, as well as for claims for property damage, which may arise directly or indirectly from the performance of work under this Agreement. Coverage for property damage shall be on a "broad form" basis. The amount of insurance for each coverage, Commercial General and Vehicle, shall not be less than $750,000 combined single limits for bodily injury and property damage.