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