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HomeMy WebLinkAbout1991-04-09; City Council; 11105; ANNUAL CONTRACT FOR AUCTION SERVICE OF ASSET FORFEITURE PROPERTYn g np 3 .. z 0 E 8 a G -! z 3 b ur bnn~amnu - HUEN- PILL u AB# 15 1~75 TITLE: ANNUAL CONTRACT FOR AUCTION SERVICE DEP MTG. +/9/& OF ASSET FORFEITURE PROPERTY CIT'I DEPT. PCH CITI RECOMMENDED ACTION: Staff recommends Council adopt Resolution No. %/&? , awarding an annu to Roger Ernst and Associates Auctioneers for the disposal of assets seized undei has the option to renew for two additional one (1) year periods. Forfeiture Law by the Carlsbad Police Department. The contract is for twelve mc ITEM EXPLANATION In January 1990, Council awarded an annual contract to Roger Ernst and , Auctioneers for the disposal of asset forfeiture property. During the period of th Ernst and Associates picked up thirty-seven vehicles from the City of Carlsbad, nil were sold, five vehicles were returned to the City for police use and twenty-thrc remain in storage. In August, 1990, new guidelines were put out by the U.5 General's Office regarding seized and forfeited property. It has taken several receive a clarification of the new changes. The original contract has been modific it into conformance with the new guidelines [Section I (i) and (j)]. All other sect contract remain the same. The staff of the Police Department is satisfied with Associates services and recommends renewal of their contract. FISCAL IMPACT There is no cost to the City for the auction service. The contractor receives 10% o sales, plus expenses that include transportation charges, storage and smog cer EXH I B ITS 1. 2. Resolution No. y/-/Dy . Agreement for Auction Services - Exhibit "A' 0 W 3, AGREEMENT TO PROVIDE AUCTION SERVICES THIS AGREEMENT, made and entered into this //&day of @ 1991, by and between the CITY OF CARLSBAD, a municipal corporation, hereinafter referred to as "CITY" and ROGER ERNST, dba Roger Ernst anc Assoc ia te s A u c t i o n e e rs , h e re i n a f te r des i g n at ed as 'I C 0 N T R AC TO R . " RECITALS CITY desires to obtain auctioneering services from an independe contractor for the disposal of property seized under the Asset Forfeit1 Law. CONTRACTOR has demonstrated its competence and qualification necessary for the satisfactory performance of the services required b$ the CITY; NOW, THEREFORE, in consideration of these recitals and mutual covenants contained herein, CITY and CONTRACTOR agree as follows: 1, CONTRACTOR'S OBLIGATIONS a) Work closely with the Police Chief in performing wo accordance with the Agreement in order to receive clarification as to result which the CITY expects to be accomplished by the CONTRACTOR Police Chief shall be the City's authorized representative in the 0 0 >. interpretation and enforcement of all work performed in connection wi. this Agreement. The Police Chief may delegate authority in connection with this Agreement to the Police Chief's designee. b) Pick up property from CITY'S storage facility at 2560 Orion Way, Carlsbad, California and deliver to CONTRACTOR'S storage facility with fifteen (15) working days of receipt of a written request from CITY. c) Provide the CITY a Consignment Check-In Form when property is picked up stating: Name and address of agency, address/ location of where property items were picked up, full description of property received, and identifiable markings (Le., license plate number vehicle ID number, etc.). d) Provide CITY a signed receipt for the 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 effort to sell the property at a public auction on a date mutually agreeable to both parties. CONTRACTOR sh; 0 0 Zr 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 S 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 CITY does not prevail in the courts in the asset forfeiture case, the seized property shall be returned by the CONTRACT to the CITY at no charge. i) Shall return to the CITY at no charge, those vehicle adjudicated through Federal Judicial Proceedings as "Sale Proceeds" vehicles, and/or those vehicles required by regulation or direction of 1 U.S. Attorney's Office to only be sold by the U.S. Marshal's Service. 4 I j) CONTRACTOR shall also return to the CITY u&hcmt m, those vehicles to be placed into service by the Department, as determined by the needs of the Department. 0 0 2. CONTRACTOR'S COMPENSATION a) CONTRACTOR shall maintain auditable records of all property which is sold pursuant to this Agreement. b) CONTRACTOR'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 CONTRACT01 in accordance with this Agreement, CONTRACTOR shall receive a commission in the amount of ten percent (IO%), 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 wor shall be undertaken by CONTRACTOR which results in additional cost to the CITY without the prior written approval of the CITY. Cost of repair on vehicles returned to rightful owners shall be paid for by the CITY. d) CONTRACTOR shall deliver to CITY all sales proceeds CONTRACTOR'S commission and approved costs, within fifteen (1 5) banking days of sale. w =< 3. INSURANCE CONTRACTOR shall, throughout the duration of this Agreemc maintain comprehensive general liability and property damage insuranc 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 automobile CONTRACTOR shall maintain the following minimum limits: General Liabilitv: Combined Single Limit Per Occurrence Gene ral Ag g reg ate $500,0( $500,0( Automobile Liabilitv: Combined Single Limit Per Occurrence $500,0( All insurance companies affording coverage the CONTRACTC shall be required to add CITY OF CARLSBAD as "Insured" under the insurance policies. The insurance companies affording coverage to the CONTRACTOR shall be companies authorized to transact business in thf 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 t (30) days written notice to the CITY should the policy be cancelled bel the expiration date. Proof of insurance is to be submitted with the sis Agreement. e w .L. 4. WORKERS' COMPENSATION CERTIFICATION The CONTRACTOR shall be aware of the requirements of Section 1861 of the Labor Code, and shall comply with these requireme to be insured against liability for Workers' Compensation, or to undertal self-insurance in accordance with the provision set forth in the Code. CONTRACTOR shall provide certification of such compliance as a part o 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 CI1 The CONTRACTOR shall hold the CITY, its officers, and employees harmless, and indemnify and defend the CITY, its officers, ai employees, against the payment of any and all costs and expenses, clai 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 an) way connected with any negligent or wrongful act or omission of the CONTRACTOR, its agents, and employees in performing or failing to perform any work, services or functions provided for or referred to or any way connected with this Agreement. 0 w $< The CONTRACTOR shall be aware of the requirements of the Immigration Reform and Control Act of 1986 and shall comply with thc requirements including-- b u t not I i m i ted to--ve rify i ng the eligibility 1 employment for all agents, employees and subcontractors that are included in this Agreement. 6. AGREEMENT MODIFICATION This Agreement may not be modified orally or in any mannf other than by an Amendment in writing signed by both parties. 7. TERMINATION OF AGREEMENT This Agreement is terminable at will by either party by written notice from one party to the other. terminated by either party, all property held at the time of the notice termination by the CONTRACTOR--which was obtained from CITY--sha returned to CITV's facility in Carlsbad, California at CONTRACTOR'S expense. If this Agreement is 8. TERM OF AGREEMENT The term of the Agreement shall be for one (1) year from t date of execution. The Agreement may be renewed for two (2) additioi e w 84 one (1) year periods by the submission by CONTRACTOR of a written request to extend the Agreement not later than sixty (60) days prior to date of expiration. The CITY reserves the right to accept or reject the CONTRACTOR'S offer of renewal thirty (30) days prior to the end of contract period. 9. NOTICES Any notice required by this Agreement shall be delivered a: follows: TO CITY: CITY OF CARLSBAD Attn: Police Chief 2560 Orion Way Carlsbad, CA 92008 / TO CONTRACTOR: -.LA\ -2472 m I “A 10. EFFECTIVE DATE This Agreement shall be effective on and from the day and 1 first noted above. In Witness whereof, we have hereunto se our hands and seals. CONTRACTOR: C-LF > 4 I?hFLLL z- --i?LL -.iL$A NAME AND TITLE RAWdY PARNELL Assistant Business Manager CLAUDE A. LEWIS, Mayor APPROVED AS TO FORM: ATTESTED : D GhA-d-. 64. u VINCENT F. BIONDO, JR. City Attorney City Clerk ALETHA L. RAUTENKRANZ 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 a 0 RESOLUTION NO. 91-107 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 Carlsba temporary custody of seized assets; and WHEREAS, the due process to obtain permanent custody of tl may take one to two years or more; and WHEREAS, this property must be properly inventoried and secu final disposition; NOW, THEREFORE, BE IT RESOLVED by the City Council of Carlsbad, as follows: 1. To enter into a contract with Roger Ernst and Associates A for the transportation, storage and disposal of assets seized by City personne Asset Forfeiture Law for a period of one (1) year beginning April 1, 1991 thro 31, 1992, with the option to renew for two (2) additional one (1) year periods .... .... .... .... .... .... .... .... v 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 a e PASSED, APPROVED AND ADOPTED at a Regular Meeting c , 1991, by thr Council of the City of Carlsbad on the 9th day of vote, to wit: April AYES: Council Members Lewis, Larson and Nygaard NOES: None ABSENT: Council Members Kulch ATTEST: dAA ALETHA L.L$ietyklerk (SEAL) I