HomeMy WebLinkAbout1993-05-18; City Council; 12225; AWARDING OF CONTRACT FOR DISPOSAL OF VEHICLES SEIZED UNDER ASSET FORFEITURE LAW*
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CIT+>F CARLSBAD - AGEN~BILL T~I b
AB # 1 & 2a5 TITLE: AWARDING OF CONTRACT FOR DISPOSAL
OF VEHICLES SEIZED UNDER ASSET
DEPT.
RECOMMENDED ACTION:
Adopt Resolution No. 43- IY c1 , awarding a contract to Roger Ernst and Associate! Auctioneers for the disposal of vehicles seized under Asset Forfeiture Law by the
Carlsbad Police Department.
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MTG. 5- I % -9 3 POL FORFEITURE LAW
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ITEM EXPLANATION:
For the past three years Roger Ernst and Associates, Auctioneers has removed seizi
vehicles from the Police Department to their storage facility, prepared the vehicles fo
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. If Council adopts this resolution the new agreement will be for o
(1) year and may be renewed for two (2) additional one year periods. This agreeme
includes some minor changes in the cost of services which have been identified sin
the initial agreement.
FISC& IMPACT
This agreement will have no impact on the General Fund. Any costs whicl may arise from this contract will be paid from the Asset Forfeiture Fund 0. paid from receipts of other vehicles sold by the contractor.
EXHIBITS:
1. Resolution No. 43- lL14 D
2. Agreement for Auction Services.
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RESOLUTION NO. 93-149
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, AWARDING
CONTRACT TO ROGER ERNST AND ASSOCIATES
AUCTIONEERS
WHEREAS, under the Asset Forfeiture Law the City of Carlsbad
receives seized vehicles; and
WHEREAS, these vehicles must be properly secured, documented anc
and
WHEREAS, these vehicles have been satisfactorily secured, document
sold by Roger Ernst and Associates, Auctioneers; and
WHEREAS, it is reasonable to compensate Roger Ernst and Associatc
Auctioneers for their services;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
Carlsbad, California, as follows:
1. To enter into a contract with Roger Ernst and Associates, Auctione
the transportation, storage and disposal of vehicles seized by City personne
the Asset Forfeiture Law for a period of one (1) year beginning June 1, 199:
through May 31, 1994, with option to renew for two (2) additional one (1) ye
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PASSED, APPROVED AND ADOPTED at a regular meeting of the
Carlsbad City Council held on the 18th day of MAY,
1993, by the following vote to wit:
AYES:
NOES: None
ABSENT: None
Council Members Lewis, Stanton, Kulchin, Nygaard, Finni
aL=&Az&cb-r^
ALETHA L. RAUTENKRANZ, City CI
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AGREEMENT TO PROVIDE
AUCTION SERVICES
THIS AGREEMENT, made and entered into this 2Y’* day of %
1993, by and between the CITY OF CARLSBAD, a municipal corporat on,
hereinafter referred to as “CITY” and ROGER ERNST, dba Roger Ernst and
Associates Auctioneers, hereinafter designated a “PROVIDER.”
RECITALS
CITY desires to obtain auctioneering services from an independent
provider for the disposal of vehicles.
PROVIDER has demonstrated the competence and qualifications necessi
for the satisfactory performance of the services required by the CITY;
NOW, THEREFORE, BE IT AGREED THAT:
1.
said vehicle to PROVIDER’S facility in Modesto, California when so
requested by the CITY.
2. PROVIDER agrees to store and maintain vehicles at its facility in
Modesto, California. PROVIDER agrees that vehicles will be stored in a
secure facility and protected from the elements. PROVIDER agrees to
properly care for and maintain vehicles.
PROVIDER agrees to take possession of any vehicle and to transpc
3. PROVIDER shall from time to time conduct a public auction at
PROVIDER’S premises in Modesto, California. The CITY shall notify
PROVIDER when vehicles which are in the possession of PROVIDER are
and clear of any encumbrances and eligible for auction. PROVIDER sha
sell said vehicles to the highest bidder. PROVIDER shall not auction ar
vehicles without having first obtained clearance from the CITY.
4. PROVIDER agrees to:
a)
equipment needed to conduct said auctions.
b)
number and amount of each sale.
c)
any applicable sales tax.
d)
banking days of the auction. PROVIDER shall, at a minimum, compll
with the notice requirements Government Code 25363. All sales t:
collected shall be paid by the PROVIDER directly to the State of
California.
e) Process all necessary documents with the California
Department of Motor Vehicles needed by the buyer of the vehicle in
order to show title with the state.
PROVIDER shall pay all costs of advertising associated with the Si
Conduct the auctions and provide all necessary personnel and
Provide the CITY a record of the vehicles sold with the case
Collect all monies due from the sale of each vehicle, plus
Pay the CITY the total sum, less commission, within 15
5.
of vehicles at PROVIDER’S auction.
6. PROVIDER shall not release any vehicle which is not being auctionc
to an individual, the CITY, or any law enforcement agency without prior
written authorization form the CITY.
7. If the forfeiture action is terminated for any reason and the vehic
is released to the legal owner or such other person legally entitled to
possession of the vehicle (other than CITY), PROVIDER shall be entitled,
the extent the law allows, to charge the person to whom the vehicle is
released a reasonable amount for towing, hauling and storage.
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8. If the forfeiture action is terminated for any reason and the vehicl
is released to the CITY or the forfeiture is completed and the vehicle is
retained by the CITY, PROVIDER shall be entitled to such compensation
from the CITY as set forth in this paragraph eight (8).
CITY shall pay the PROVIDER the following:
a)
vehicle to place of storage;
b) Three ($3.00) dollars per day for storage of any vehicle witF
said storage fee charge to commence on the 46th day after PROVIC
has taken possession of any vehicle, and
c) smog certification.
PROVIDER which results in additional cost to the CITY without pr
written approval of the CITY.
9. If PROVIDER is required to return any vehicle after PROVIDER has
taken possession thereof to the place of seizure, PROVIDER, in additior
the fees described in Paragraph 8 above, shall be entitled to one hundre
to return any vehicle to a place other than the place of seizure after th
PROVIDER has taken possession thereof, PROVIDER, in addition to the fe
described in Paragraph 8 above, shall be entitled to cost incurred for
towing of said vehicle.
10. For any vehicle sold at auction by PROVIDER and which vehicle ha
been in PROVIDER’S possession a minimum of 180 days, PROVIDER shall
entitled to a storage fee of three ($3.00) dollars per day with said stor
fee charge to commence on the 181st day after the PROVIDER has taker
possession of any vehicle. Except, PROVIDER shall not be entitled to
storage fees after the time any vehicle has been cleared by CITY for si
and said storage fees shall not exceed fifty percent (50%) of the sale
price of any vehicle.
11. Once every calendar month, PROVIDER shall submit to CITY a wr
invoice accurately reflecting any fees owing by CITY to PROVIDER as
assessed pursuant to this agreement. CITY shall, at its option, pay ea(
One hundred and seventy ($170.00) dollars for towing of any
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PROVIDER shall receive its actual cost incurred in ensuring
No additional work shall be undertaken by
and seventy ($170.00) dollars for towing service. If PROVIDER is requir
invoice by direct payment to PROVIDER within 30 days from the date of
the invoice or elect to have all or part of said fees deducted for the sales
proceeds of other vehicles in PROVIDER’S possession and sold at auction
by PROVIDER. 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 form other sales within 90 days of the date of each said
invoice, the remaining balance shall be due and payable.
12.
con tractor.
13. This Agreement may only be modified or amended by written
agreement between PROVIDER and CITY. No waiver or modification of the
Agreement or of any covenant, condition or limitation herein contained
shall be valid unless in writing and duly executed by the parties hereto.
14. In consideration of all work performed by PROVIDER in accordance
with this Agreement, PROVIDER shall receive a commission in the amour
of ten percent (IO%), excluding taxes, of the gross sales receipts of all
asset forfeiture vehicles sold.
items which will be considered vehicles and charged at ten (10%).
For the purpose of this Agreement, PROVIDER is an independent
Heavy equipment and other motorized
a) CITY also understands PROVIDER may charge to the buyer of
auction items a “Buyers Premium’’ of ten percent (10%) on all items sold
Said Buyers Premium are the sole property of the Auctioneer.
15. At all times during the terms of this Agreement, PROVIDER shall 4
solely responsible and liable for all vehicles from the time PROVIDER h:
possession thereof. PROVIDER shall be fully responsible for any theft,
destruction, or damage of any vehicle from and cause whatsoever after
PROVIDER has custody thereof. In the event of any such theft, destructi
to the CITY the full, and fair market value of any vehicle as of the time
PROVIDER first had custody thereof. All such amounts owed to the CITY
shall be due within forty-five (45) days from the occurrence of any sucl
theft, destruction, or damage.
16.
Agreement without prior written consent of the CITY.
or damage, PROVIDER shall pay the CITY any amounts necessary to restc
PROVIDER shall not assign or transfer any interest in this
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omissions by the CITY within the terms of this Agreement.
18.
and defend (upon request) the CITY, its officers, agents and employees
form any and all losses, costs, claims, damages, liability, actions, or
expenses (including reasonable attorney fees) of any kind or nature
whatsoever which may arise out of or occur in connection with or are
alleged to have arisen out of or occurred in connection with any act or
omission of PROVIDER, its officers, agents employees, contractors,
independent contractors, or representatives of any type during the
perfo r mance of this Ag ree men t .
19. Workers’ Compensation Certification
The CITY agrees to hold PROVIDER harmless for any acts or
PROVIDER hereby agrees and undertakes to indemnify, hold harmle
a)
certifies that the PROVIDER is aware of the provisions of Section
3700 of the Labor Code which requires every employer to be insur
against liability for Workers’ Compensation or to undertake self-
insurance in accordance with the provisions of that code, and the
PROVIDER will comply with such provisions and provide
certification of such compliance.
b)
is relevant to this project is as follows:
“Every employer except the State shall secure the payment of
Pursuant to Labor Code Section 1861, the PROVIDER hereby
The portion of Section 3700 of the California Labor Code wI
compensation in one or more of the following ways:
1. By being insured against liability to pay compensation witt
one or more insurers duly authorized to write compensatioi
insurance in this State.
8y securing from the Director of Industrial Relations a
certificate of consent to self-insure, which may be given u
furnishing proof satisfactory to the Director of Industrial
Relations of ability to self-insure an to pay any compensa
that may become due to its employee”.
2.
20. Liability Insurance
a.
maintain comprehensive general liability and property damage
insurance, covering all operations of PROVIDER, its agents and
employees performed in connection with this Agreement, including
but not limited to premises and automobiles.
b. PROVIDER shall maintain the following minimum limits:
General Liability
combined single limit per occurrence
Auto m o b i I e Li a b i I ity
Combined Single Limit per occurrence
PROVIDER shall, throughout the duration of this Agreement,
$1,000,000.06
General Aggregate $1,000,000.00
$1,000,000.00
c: All insurance companies affording coverage to the PROVIDER
shall be required to add the CITY as “insured” under the insurance
policy.
d. All insurance companies affording coverage to the PROVIDER
shall be insurance organizations authorized by the Insurance
Commissioner of the State Department of Insurance to transact thl
business of insurance in the State of California.
’ e. All insurance companies affording coverage to the PROVIDER
shall maintain a rating of “A V”in Best’s Key Rating Guide.
f. All insurance companies affording coverage shall provide
thirty (30) day written notice to the CITY should the policy be
canceled.
g. insurance requirements to the CITY.
21. The original term of this Agreement shall be one year from the da
first above written. This agreement shall be automatically renewed foi
two (2) additional one (1) year periods unless not later than ninety (98)
days form the expiration of any such one year period, written notice is
the agreement as provided for in this paragraph 21.
PROVIDER shall provide evidence of compliance with the
delivered by a party notifying the other party of its intent not to renew
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notice from one party to the other.
This Agreement is terminated at will by either party by written
a) If this Agreement is terminated by PROVIDER, all property hc
at the time of the notice of termination by PROVIDER, which was
obtained from CITY, shall be returned to the CITY’s facility in
Carlsbad California at PROVIDER’S expense.
b)
the time of the notice of termination by PROVIDER, which was
obtained from CITY, shall be returned to the CITY’s facility in
Carlsbad, California by PROVIDER at CITY’s expense. PROVIDER st
use the charges described in paragraph eight (8) and paragraph nin
(9) when determining the costs of returning property.
23. This Agreement represents the entire understanding of the CITY a
PROVIDER. No prior oral or written understanding shall be of any force
effect.
In witness whereof, the parties hereto have caused this Agreement to t
executed the day and year first above written.
If this Agreement is terminated by CITY, all property held ai
CITY OF CARLS
Date: 5$AiiY B
ROGER ERNST & ASSOCIATES INC.
a California Corporation
Date: $A