The URL can be used to link to this page

Home My WebLink About1992-05-05; City Council; 11667; AWARDING OF CONTRACT FOR DISPOSAL OF ASSETS SEIZED UNDER ASSET FORFEITURE LAWAB # u TITLE: DEPT. AWARDING OF CONTRACT FOR DISPOSAL OF ASSETS SEIZED UNDER ASSET MTG. 5 -5-05 POL FORFEITURE LAW DE CI' CI' Y 0 w 6 g ' ' F 0 a 5 z 3 0 0 IV CIT~F CARLSBAD - AGEN~) BILL 4s RECOMMENDED ACTION: Adopt Resolution No. qir8- 121 awarding a contract to Roger Ernst and Associate Auctioneers for the disposal of assets seized under the Asset Forfeiture Law by the Carlsbad Police Department. ITEM EXPLANATION: For the past two years Roger Ernst and Associates, Auctioneers has removed seize1 vehicles from the Police Department to their storage facility, prepared the vehicles fc sale and sold them at auction. The Police Department has been satisfied with the performance of this contractor. Roger Ernst and Associates, Auctioneers was originally awarded a renewable contr in Resolution 90-7. During a review of the contract in preparation for renewal sever changes were recommended. There are three significant changes in the contract: 1. For vehicles returned to the City for its use the Contractor may charge $300 for transportation ($1 50 for each direction) and $3 per day storage fee after 90 days. For vehicles stored over one year the Contractor may charge the City $3 per day storage after one year. This cost would be deducted from the saies receipts. The Contractor's general liability and automobile liability limits were increased from $500,000 to $1,000,000. 2. 3. FISCAL IMPAm None. Asset Forfeiture Fund or paid from receipts of other vehicles sold by the Contractor. EXHIBITS: Charges against vehicles returned to the City will be paid from the 19 Resolution No, %kIa/ @ 2. Agreement for Auction Services. 3. Certificate of Insurance. STORAGE AND/OR AUCTION OF FORFEITED PERSONAL PROPERTY/FORFEITED VEHICLES/REAL ESTATE COMPILED FOR LAW ENFORCEMENT AGENCIES BY ROGER ERNST AND ASSOCIATES AUCTIONEERS P.O. Box 3251 Modesto, CA 95353 (209) 52' 0 0 I 1 * 0 AGREEMENT TO PROVIDE AUCTION SERVICES THIS AGREEMENT, made and entered into this f/ rh day of rndy 1992, by and between the CITY OF CARLSBAD, a municipal Gorporation, hereinafter referred to as ‘‘CITY” and ROGER ERNST, dba Rc Ernst and Associates Auctioneers, hereinafter designated as “CONTRACTOR.” RECITALS CITY desires to obtain auctioneering services from an independen contractor for the disposal of property seized under the Asset Forfeitu Law. CONTRACTOR has demonstrated its competence and qualification5 necessary for the satisfactory performance of the services required by the CITY; NOW, THEREFORE, in consideratiori sf these recitals and iiiiltiial covenants contained herein, CITY and CONTRACTOR agree as follows: 1. CONTRACTOR’S OBLIGATIONS a) Work closely with the Police Chief in performing worl accordance with the Agreement in order to receive clarification as to t ‘result which the CIT a xpects to accomplish by the C % TRACTOR. The Police Chief shall be the CITY’s authorized representative in the interpretation and enforcement of all work performed in connection wi. this agreement. with this Agreement to the Police Chief’s designee. b) The Police Chief may delegate authority in connection Pick up property from CITY’s storage facility at 2560 Orion Way, Carlsbad, California and deliver to CONTRACTOR’S storage facility within fifteen (15) working days of receipt of a written reque! 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. e) Shall advertise the sale of the property by means of direct mail flyers and newspaper advertisements. f) Shall ensure that property is smog certified per State law prior to sale, or so state to buyer. g) Conduct the auctions and provide all necessary person and equipment needed to conduct said auction. 2 h) Pr !m de the CITY a record of the p q perty sold and the amount of each sale. i) Collect all monies due from the sale of each item or k plus any applicable sales tax. j ) Pay the CITY the total sum less commission, within 1E banking days of the auction. CONTRACTOR shall, at a minimum, comply with the notice requirements of Government Code 25363. All sales tax collected shall be paid by CONTRACTOR directly to the State of Califorr k) Process all necessary documents with the California Department of Motor Vehicles needed by the buyer of the vehicle in ordc to show title with the state. I) CONTRACTOR shall pay all costs of advertising associated with the sale of said property at CONTRACTOR’S auction. m) CONTRACTOR shall not release any vehicle which is nc being auctioned, to any individual, The CITY, or any law enforcement agency without prior written authorization from the CITY. n) CONTRACTOR shall not sell the property at less than appraised value. 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 3 8 0 ‘CITY for verificatio inspection. ithin a reasonable time after CITY’S request for 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 certificate pursuant to Section “1 f)”. No w( shall be undertaken by CONTRACTOR which results in additional cost to the CITY without prior written approval of the CITY. d) If the forfeiture action is terminated for any reason ai the vehicle or property is released to the legal owner or such other per! legally entitled to possession of the vehicle or property (other than CIT CONTRACTOR shall be entitled, to the extent the law allows, to charge person to whom the vehicle or property is released a reasonable amoun for towing, hauling and storage. e) If the forfeiture is terminated for my reason and the vehicle or property is released to the CITY or the forfeiture is completl and the vehicle or property is retained by the CITY, CONTRACTOR shall be entitled to such compensation from the CITY as set forth in this paragraph (e). 4 0 (1 ? One hundred and fifty dollars ($150.00) for towir of any vehicle to the CONTRACTOR’S place of storage; (2) Three dollars ($3.00) per day for storage of any vehicle with said storage fee charges to commence on the 91st day aft( the CONTRACTOR has taken possession of any vehicle; (3) Routine repair costs the CONTRACTOR has incurr in preparing vehicle for sale after CITY has authorized sale. Repair cos shall not include any incurred as the result of damaged occurring while possession of the CONTRACTOR. f) If CONTRACTOR is required to return any vehicle after CONTRACTOR has taken possession thereof and CONTRACTOR is require( return any vehicle to the place of seizure or any other place, CONTRACT in addition to the fees described in paragraph e above, shall be entitled one hundred and fifty dollars ($150.00) as and for towing service in returning any vehicle. g) For any vehicle sold at auction by CONTRACTOR and w said vehicle has been in CONTRACTOR possessicn a minimum of 365 dal CONTRACTOR shall be entitled to a storage fee of three dollars ($3.00) day with said storage fee charge to commence on the 366th day after CONTRACTOR has taken possession of any vehicle. 1 ) The CONTRACTOR shall not be entitled to storas fees after the time any vehicle has been released for sale. 5 2). Storage fees shall not excee d one half (50%) of 1 sale price of any vehicle. h) Once every calendar month, CONTRACTOR shall submit CITY a written invoice as assessed pursuant to this agreement. CITY shall, at its option, pay each invoice either by direct payment to CONTRACTOR within 30 days from the date of the invoice or elect to ha all or any part of said fees deducted from the sales proceeds of other vehicles or property in CONTRACTORS possession arid sold at auction bl CONTRACTOR. In the event the entire amount owing or reflected in any particular invoice is not paid in full either by direct payment and/or by deduction from other sales within 90 days of the date each said invoicc the remaining balance shall be due and payable. 3. INSURANCE CONTRACTOR shall, throughout the duration of this Agreemf maintain comprehensive general liability and property damage insuranc or commercial general liability insurance, covering CONTRACTOR, its agents, and employees for all operations performed in ccnnection with this Agreement, including, but not limited to, premises an automobiles. CONTRACTOR shall maintain the following minimum limits: General Liability : Combined Single Limit Per Occurrence General Aggregate $1,000,000 $1,000,000 6 @ Liability Automo Combined Single Limit Per Occurrence $1,000,000 All insurance companies affording coverage the CONTRACT01 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 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 th (30) days written notice to the City should the policy be cancelled befc the expiration date. Proof of insurance is to be submitted with the sigi 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 requiremc to be insured against liability for Workers’ Compensation, or to underti self-insurance in accordance with the provisions set forth in the Code. CONTRACTOR shall provide certification of such compliance as a part c 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 CI- 7 The CO a ACTOR shall hold the CITY, 7 I s officers, and employees harmless, and indemnify and defend the CITY, its officers, ar employees, against the payment of any and all costs and expenses, clair 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, its agents, and employees in performing or failing to perform any work, services or functions provided for or referred to or I any way connected with this Agreement. The CONTRACTOR shall be aware of the requirements of the Immigration Reform and Control Act of 1986 and shall comply with tho requirements including--but not limited to--verifying the eligibility fi 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 manne other than by an Amendment in writing signed by both parties. 7. This Agreement is terminable at will by either party by written noticed from one party to the other. terminated by either party, all property held at the time of the notice i termination by the CONTRACTOR--which was obtained from CITY--shall If this Agreement is 8 e 0 perform any work, services or functions provided for or referred to or i any way connected with this Agreement. The CONTRACTOR shall be aware of the requirements of the Immigration Reform and Control Act of 1986 and shall comply with tho requirements including--but not limited to--verifying the eligibility fc 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 manne other than by an Amendment in writing signed by both parties. 7. This Agreement is terminable at will by either party by written noticed 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--shall returned to CITY’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 th date of execution. The Agreement may be renewed for two (2) addition one (1) year periods by the submission by CONTRACTOR of a written 9 0 a 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 requirsd by this Agreement shall be delivered as follows: TO CITY: CITY OF CARLSBAD Attn: Police Chief Carlsbad Police Department 2560 Orion Way Carlsbad, CA 92008 TO CONTRACTOR: ERNST AND ASSOCIATES ?&Io* &x -3257 r\ia8$&5BU, cA YS3S-3 10 r e .* 0 10. EFFECTIVE DATE This Agreement shall be effective on and’from the day and p first noted above. It Witness whereof, we have hereunto set our hands i seals. D,.2e, c ar- - NAME AND TITLE EmDAIZMae ATTESTED: w*gR&,a- RON BALL s* /I+- - ALETHA L. RAUTENKRANZ Acting City Attorney City Clerk 11 P 0 L ! c Y N u EA Y t R: RO6ER ERNST & ASSO. @I07925951 0 COMME2CiAi GC THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CARE ADDITIONAL INSURED - OWhERS, LES.SEE: i: CONTRACTORS (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE CITY OF CARLSBAD POLICE DEPARTMENT 2560 ORION WAY CARLSBAD, CA 92008 Name of Person or Organ-nation: RE: SERVICES OF AUCTIONEER (If no entry appears above. information required to complete this en.zorsernent will be shown ir as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organiza Schedule, but only with respec: to liability arising out of "your work" for that insured by or fc (- I I - .. -. c CG 20 10 11 85 Copyrighi. Insurance - Services Office. Inc.. 1984 C{J r\l' lF",L.\LIAL A i. .J' (jt TH.[S ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAR1 (Iy-\~u'yzsysl v PCL!CY NUWlYtt!: ROGER ERNST ti ASSO. c .:. ADDITIONAL iNSURED - OWNERS, LESSEE: CONTRACTORS (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE CITY OF CARLSBAD POLICE DEPARTMENT 2560 ORION WAY CARLSBAD, CA 92008 Name of Person or Organitation: RE: SERVICES OF AUCTIONEER (If no entry appears above.information required io conplete this en3orsernent will be shown ii WHO IS AN INSURED (Sehn 11) is amended to include 2s an insured the person or organizs Schedule, but only with respect to liability arising out of "your work" for that insured by or fc as applicable to this endorsement.) (- i - -- c CG 20 10 11 85 Copyright, Insurance - Services Off ice, Inc., 1984 Giddings,Corby,HynesrInc. P.O. Box 3231 Hodesto, CA 95353 Roger Brnst 6 Associates InC. Attn: Gary Fitch P.O. Box 3251 CA 95353 TOR OTHER DOCUM ER'S 8 CONTRACTOR'S PROT SCHEDULED AUTOS HIRED AUTOS NON-OWNED AUTOS GARAGE LIABILITY PENS AT ION RE: SERVICES OF AUCTIONEER CfTY OF CARLSBAD EXPIRATION DATE THEREOF. THE ISSUING COMPANY WILL EN POLICE DEPARTMENT MAIL lODAYs WRITTEN NOTICE TO THE CERTIFICATE HOLDI 2560 ORION WAY LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NE CARLSBAD, CA 92008 Giddings,Corby,Hynes,Inc. Hodesto, CA 95353 Roger Ernst h Associates InC. Attn: Gary Fitch P.O. Box 3251 CA 95353 CLAIMS MADE^ OCCUR. ER'S 8 CONTRACTOR'S PROT ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON-OWNED AUTOS GARAGE LIABILITY RE: SERVICES OF AUCTIONEER CITY OF CARLSBAD EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL EN POLICE DEPARTMENT MAIL lODAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDE 2560 ORION WAY LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO CARISBAD, CA 92008 ;/ - * .* 1 2 3 4 5 6 7 8 9 10 11 12 l3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 / \ 0 e RESOLUTION NO. 9 2 - 1 2 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AWARDING CONTRACT TO ROGER ERNST AND ASSOCIATES, AUCTIONFFRS WHEREAS, under the Asset Forfeiture Law the City of Carlsbad, California receives temporary custody of seized assets: and WHEREAS, the due process to obtain permanent custody of the vehicle may take one to two years; and WHEREAS, this property must be properly inventoried and secured before final disposition; and WHEREAS, this property has been satisfa’ctorily inventoried, secured and sold by Roger Ernst and AssoEites, Auctioneers, and WHEREAS, it is reasonable to compensate Roger Ernst and Associatl Auctioneers for vehicles returned and stored an extended period: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City Carlsbad as follows: 1. That the above recitations are true and correct. 2. Enter into a contract with Roger Ernst and Associates, Auctioneers for the transportation, storage and disposal of assets seized by the City personnel under the Asset Forfeiture Law for a period of one year beginning : April 1, 1992, through March 31, 1993, with option to renew for two addition: one-year periods. 3. That the Mayor of the City of Carlsbad is hereby authorized and directed to execute said contract for and on behalf of the City of Carlsbad. 11 I ,' t 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I / a v PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 5 th day of MAY 1 1992, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Larson, Stanton, Nygaai NOES: None ABSENT: None ALETHA L. RAUTENKRANZ, City Clerk (SEAL) -< f -