HomeMy WebLinkAbout1990-01-09; City Council; 10446; Auction Service of Asset Forfeiture Property' -'
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CIT.-QF CARLSBAD -AGEND1f31LL J 3/) 5 (f) r?, t(
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ANNUAL CONTRACT FOR AUCTION SERVICE
OF ASSET FORFEITURE PROPERTY
RECOMMENDED ACTION:
Adopt Resolution No. CJO-? , awarding a contract to Roger
Ernst & Associates Auctioneers for the disposal of assets seized
under the Asset Forfeiture Law by Carlsbad Police.
ITEM EXPLANATION:
Under the Asset Forfeiture Law, property is seized at the time
of arrest if there is reason to believe this property was
involved in the manufacturing or distribution of drugs, or was
purchased with money derived from the sale of drugs. Upon
completion of due process through the judicial system, the
property is turned over to the arresting jurisdiction or
returned to the owner depending upon the disposition of the
case. If the arresting jurisdiction prevails in its indictment,
then the property is available for sale or to be used in that
agency for drug enforcement activity.
Many times i~ takes one to two years or more to resolve the case
after the arrest. During this time the property must be stored.
The liability to the arresting agency is that the property will
depreciate very rapidly if not stored properly, or it will cost
substaneial amounts to restore it to its initial condition if
it is returned to the owner.
At the present time, the city stores the seized vehicles in an
open parking lot behind the Safety center. When the vehicles
become available for sale, the City makes arrangements to take
them to the County where they are sold. The fee charged
participants in the County auction is 9% of the purchase price.
Currently there are between 25-30 vehicles parked out of doors
at the Safety Center. Becausa of the problems with space,
security and transport involved with the seized property, a
request for proposal was developed and mailed to licensed
auctioneers. The proposal was to inventory, transport, properly
store and dispose of the seized vehicles. Roger Ernst &
Associates was the only respondent. Their fee for providing this
service is 10% of the gross sales.
EXHIBITS:
l.
2.
3.
Agreement for Auction Services -Exhibit A.
Client listing for Roger Ernst & Associates -Exhibit B.
Resolution No. '1D-'7
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AGREEMENT TO PROVIDE
AUCTION SERVICES
THIS AGREEMENT, made and entered into this /..T~ day of
/1 /f'?b ~ , ~, by and between the CITY OF CARLSBAD, a
~icipal corporation, hereinafter referred to as "CITY, 11 and ROGER
ERNST, dba Roger Ernst & Associates Auctioneers, hereinafter
designated as "CONTRACTOR."
R E C I T A L S
CITY desires to obtain auctioneering services from an
independent contractor for the disposal of property seized under
Chapter 8 of Division 10 of the Uniform Controlled Substances Act
(H & s Code Section 11470 et. seq.).
CONTRACTOR has demonstrated its competence and qualifications
necessary for the satisfactory performance of the services required
by the CITY;
NOW, THEREFORE, in consideration of these recitals and mutual
covenants contained herein, CITY and CONTRACTOR agree as follows:
1. CONTRAC~OR'S OBLIGATIONS
a. Work closely with the Police Chief in performing
work in accordance with the Agreement. The Police Chief shall be
the CITY"s authorized representative in the int9rpretation and
enforcement of all work performed in connection with this
Agreement. The Police Chief may delegate authority in ccnnection
~Tith this Agreentent to the Police Chief'u designee.
b. Pick up property from CITY' s storage facility at
2560 Orion Way, Carlsbad, California tnd deliver to CONTRACTOR's
storage facility within fifteen (15) working days of receipt of a
written request from CITY. CITY will be respon~ible for
verification of VIN# prior to vehicle pick up by CONTRACTOR. The
CONTRACTOR is responsible for any loss of vehicles--which are
pending courts determination--while in CONTRACTOR'S custody.
c. Provide the CITY a Consignment Check-In Form when
property is picked up stating: Name and address of Agency,
address/loca:~ion of where property items were picked up, full
description of property received, and identifiable markings (i.e.,
license plate number, vehicle ID number, etc.).
d. Provide CITY a signed receipt for th•;;! property after
property is picked up. CONTRACTOR shall bear all costs, expenses,
and risks of loss in transporting, storing, securing, insuring,
preparing for sale, advertising, and selling the property.
e. Shall use its best efforts to sell the property at
a public auction on a date mutually agreedble to both parties,
CONTRACTOR shall collect all monies due from sale of each item plus
any applicable sales tax. All sales tax collected shall be paid by
CONTRACTOR directly to State of California. CONTRACTOR shall not
sell the property at less than appraised value.
f. Shall advertise the sale of the property by means
of direct mail flyers and newspaper advertisements.
g. Shall ensure that property is smog certified per
state law prior to sale, or so state to buyer.
h. If the uourt does not order forfeiture of the asset
the CITY will so notify the CONTRACTOR and he shall promptly return
those assets to the CITY at no charge.
i. CONTRACTOR, his agents, or employees shall not bid
on the vehicles.
2. CONTRACTOR'S COMPENSATION
a. CONTRACTOR shall m.iintain auditable records of all
property which is sold pursuant t<> this Agre<2ment.
b. CONTRACTOR 1 s records shall be made available to the
CITY for verification within a reasonable time after CITY's request
for inspection.
c. In consideration of all work performed by CONTRACTOR
in accordance with this Agreement, CONTRACTOR shall receive a
commission in the amount of ten-percent (10%), excluding taxes, of
the gross sales receipts of all property sold in accordance with
this Agreement. In addition, CONTRACTOR shall receive its actual
costs incurred in ensuring smog certification pursuant to section
"g". No work shall be undertaken by CONTRACTOR which results in
additional cost to the CITY without the prior written approval of
the CITY. Cost of repairs on vehicles returned to rightful owners
shall be paid for by the CITY.
d. CONTRACTOR shall deliver to CITY all sales proceeds,
less CONTRACTORS' commission and approved costs, within fifteen
(15) banking days of sale.
3. INSURANCE
CONTRACTOR shall, throughout the duration of this
Agreement, maintain comprehensive general liability and property
damage insurance, or commercial general liability insurance,
covering CONTRACTOR, its agents, and employees for all operations
performed in connection with this Agreement, including, but not
limited to, premises and automobiles.
CONTRACTOR shall maintain the following minimum limits:
General Liability:
Combined Single Limit Per Occurrence
General Aggregate
Automobile Liability:
Combined Single Limit Per Occurrence
$500,000
$500,000
$500,000
All insurance companies affording coverage to the
CONTRACTOR shall be required to add CITY of Carlsbad as 11 insured11
under the insurance policies. The insurance companies affording
coverage to the CONTRACTOR shall be companies authorized to
transact business in the State of California and have a Bests'
rating of no less than "A" and a financial size of V. The companies
affording coverage shall provide thirty (30) days written notice
to the CITY should the policy be cancelled before the expiration
date. Proof of insurance is to be submitted with the signed
Agreement.
4. WORKERS' COMPENSATION CERTIFICATION
The CONTRACTOR shall be aware of the requirements of
Section 1861 of the Labor Code, and shall comply with these
requirements to be insured against liability for Workers'
Compensation, or to undertake self-insurance in accordance with the
provisions set forth in the Code. CONTRACTOR shall provide
certification of such compliance as a part of this Agreement.
5. STATUS OF CONTRACTOR
The CONTRACTOR shall perform the services provided for
herein as an independent CONTRACTOR and not as an employee of the
CITY.
The CONTRACTOR shall hold the CITY, its officers, and
employees harmless, and indemnify and defend the CITY, its
officers, and employees, against the payment of any and all costs
and expenses, claims, suits, and liabilities for bodily and
personal injury to or death of any person or loss of any property
resulting from or arising out of or in any way connected with any
negligent or wrongful act or omission of the CONTRACTOR, i.ts
agents, and employees in performing or failing to perform any work,
services or functions provided for or referred to or in any way
connected with this Agreement.
The CON~RACTOR shall be aware of the requirements of the
Immigration Reform and Control Act of 1986 and shall comply with
those req-.iirements including--but not limited to--verifying the
eligibility for employment for all agents, employees and
subcontractors that are included in this Agreement.
6. AGREEMENT MODIFICATIOij
This Agreement may not be modified orally or in any
manner other than by an Amendment in writing signed by both
parties.
7 . TERMINATION OF AGREEMENT
This Agreement is terminable at will by either party by
written notice from one party to the other. If this Agreement is
terminated by either party all property held at the time of the
notice of termination by the CONTRACTOR--which was obtained from
CITY--shall be returned to CITY's facility in Carlsbad, California
at CONTRACTOR'S expenoe.
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8 • TERM OF AGREEMENT
The term of the Agreement shall be for one year from the
date of execution. The Agreement may be renewed for two (2)
additional one (1) year periods by submission by CONTRACTOR of a
written request to extend the Agreement not later than sb~ty (60)
days prior to date of expiration. The CITY reserves the righ1; to
accept or reject the CONTRACTOR's offer of renewal thirty (30) days
prior to the end of contract period.
9. NOTICES
Any notice requi1~d by this AGREEMENT shall be delivered
as follows:
TO CI'l'Y:
TO CONTRACTOR:
10. EFFECTIVE DAT£
CITY of Carlsbad
Attn: Police Chief
2560 Orion Way
Carlsbad, CA 92008
Roger Ernst & Assoc.
824 Kjernan
Modesto, CA 95356
This Agreement shall be effective on and from the day and
year first noted above. In Witness whereof, we have
hereunto set our hands and seals.
CONTRACTOR
NAME AND TITLE
APPROVED AS TO FORM: ATTESTED:
~ I.-C<~
ALETHA L. RAUTENI<RANZ\
City Clerk
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EXHIBIT "B"
AANET -SANTA CLARA COUNTY
ACTNET -TUOLUMNE COUNTY
ANTIOCH POLICE DEPARTMENT
BUENA PARK POLICE DEPARTMENT
CCC-N£T
CITY OF ORANGE
CONTRA COSTA SHERIFF'S OFFICE
CRACNET -SAN JOAQUIN COUNTY
EASTNET
ECCNET
EL CERRITO POLICE DEPARTMENT
EL DORADO SHERIFF'S OFFICE
FRESNO POLICE DEPARTMENT
FRESNO COUNTY SHERIFF'S OFFICE
GILROY POLICE DEPARTMENT
GILROY POLICE DEPARTMENT
HEMET POLICE DEPARTMENT
KINGS COUNTY NA~COTICS TASK FORCE
LAGUNA BEACH POLICE DEPARTMENT
LODI POLICE DEPARTMENT
MADERA COUNTY SHERIFF'S OFFICE
MANTECA POLICE DEPARTMENT
MMMTF
OCEANSIDE POLICE DEPARlMENT
SACRAMENTO COUNTY SHERIFF'S OFFICE
SACRAMENTO NARCOTICS TASK FORCE
SACRAMENTO POLICE DEPARTMENT
SAN CLEMENTE POLICE DEPARTMENr
SAN JACINTO POLICE DEPARTMENT
SAN JOAQUIN COUNTY SHERIFF'S DEPARTMENT
SAN MATED POLICE DEPARTMENT
SAN PABLO POLICE DEPARTMENT
SANTA MARIA POLICE DEPARTMENT
SCDEU -CITY OF MODESTO
STANISLAUS COUNTY SHERIFF'S OFFICE
SLEDNET
STIC -STANISLAUS COUNTY
STOCKTON POLICE DEPARTMENT
TRACY POLICE DEPARTMENT
WATSONVILLE POLICE DEPARTMENT
WESTNET
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RESOLUTION NO. 90-7
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AWARDING A CONTRACT FOR
DISPOSAL OF ASSETS SEIZED UNDER
THE ASSET FORFEITURE LAW
WHEREAS, under the Asset Forfeiture Law the City of Carlsbad
receives temporary custody of seized assets; and
WEEREAS, the due process to obtain permanent custody of the
vehicle may take one to two years or more; and
WHEREAS, this property must be properly inventoried arid
secured before final disposition; and
WHEREAS, this property is now stored. in a parking lot--
subject to the elements--in a semi-secure condition;
NOW, THEREFORE, BE IT RESOLVED h::{ the Cit~• Council of the
City of Carlsbad, California, as follows:
1. To enter into a contract with Roger Ernst & Associates,
Auctioneers for the transportation, storage and disposal of assets
seized by city personnel under the Asset Forfeiture Law for a
period of one (l) year beginning January 1, 1990 through D~cember
31, 1990, with option to renew for two (2) additional one (l) year
periods.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the
City Col::ncil of the City of Carlsbad en the ~ day of
January , 1989, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
NOES: None
ABSENT: None
ATTEST:
a.i, ;rz_ I ~, J:v-ALETHA L. RAUTEN i, City cfitrk
(SEAL)
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