HomeMy WebLinkAbout1992-189
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RESOLUTION NO. 92-189
RESOLUTION OF THE CITY
EXECUTION OF AN AGREEMENT
AUCTIONEERS TO STORE AND SELL
PROPERTY, AND FIREARMS.
OF SAN BERNARDINO AUTHORIZING THE
WITH ROGER ERNST & ASSOCIATES,
SEIZED VEHICLES, PERSONAL AND REAL
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1.
The Mayor is hereby authorized and directed
to execute on behalf of said City an Agreement with Roger Ernst &
8 Associates, Auctioneers, to store and sell seized vehicles,
9 personal and real property, and firearms, a copy of said agreement
10 is attached hereto, marked Exhibit "A", and incorporated herein by
11 reference as fully as though set forth at length.
SECTION 2.
The authorization to execute the above-
referenced agreement is rescinded if the parties to the agreement
fail to execute it within sixty (60) days of the passage of this
resolution.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a regular meeting thereof, held on the 1st
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RJM:ms[ernst.res]
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, 1992, by the following vote, to wit:
AYES NAYS ABSTAIN ABSENT
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RESOLUTION OF THE CITY
EXECUTION OF AN AGREEMENT
AUCTIONEERS TO STORE AND SELL
PROPERTY, AND FIREARMS.
4 day of June
Council Members:
ESTRADA
REILLY
HERNANDEZ
MAUDSLEY
MINOR
POPE-LUDLAM
MILLER
OF SAN BERNARDINO AUTHORIZING THE
WITH ROGER ERNST & ASSOCIATES,
SEIZED VEHICLES, PERSONAL AND REAL
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(~"LA;/' '" ft-,.ftJ,'TU2A!
Cit 'Clerk' v
of
The foregoing resolution is hereby approved this 3rd
~
day
June
, 1992.
Approved as to
form and legal content:
JAMES F. PENMAN,
City Attorney
RJM:ms[ernst.res]
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lcomb, Mayo
San Bernardino
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City of S Bdno Res 92-189 adopted 6/1/92
AGREEMENT
This AGREEMENT is made and entered into on March 31 , 1992,
between the City of San Bernardino, a Municipal corporation of the
State of California, hereinafter referred to as "City", and Roger
Ernest & Associates, Auctioneers, hereinafter referred to as
llAuctioneer".
WITNESSETH
Recitals:
A. The Police Department of the City of San Bernardino is
responsible with the District Attorney for the County of San
Bernardino, for initiating and litigating the forfeiture of
property seized by local law enforcement under the provisions of
Heal th and Safety Code Section 11470, et seq.; effecting the
judgment or declaration of forfeiture; establishing a proper
mechanism for liquidation of forfeited assets in cooperation with
local law enforcement; and making proper distribution of the
proceeds.
B. City desires to:
(1) Maximize the return of the sale of forfeited assets;
(2) Control the cost of transporting, storing, insuring, and
maintaining property prior to liquidation;
(3) Utilize public auction as the proper mechanism for
liquidation of forfeited assets; and
(4) Simplify asset management, record keeping, and accounting
procedures by generally utilizing one independent
contractor to provide transportation, storage, insurance,
maintenance, and auctioneering services for all asset
seizures and forfeitures administered by the San
Bernardino Police Department.
C. Auctioneer has offered to City services to transport, store,
insure, maintain, administer and conduct public auction of seized
vehicles, personal property, firearms, and real estate for benefit
of the City.
D. Auctioneer has demonstrated its competence and qualifications
necessary for the satisfactory performance of the service
designated herein by virtue of its experience and expertise.
THEREFORE, in consideration of their mutual and perspective
promises, the parties hereto and hereby agree as follows:
1. ROLE OF CHIEF OF POLICE:
The Chief of Police shall be the City's authorized
representative in the interpretation and enforcement of all work
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performed in connection with this Agreement. The Chief of Police
may delegate authority in connection with this Agreement to his
designees.
2. INDEPENDENT CONTRACTOR:
Auctioneer's relationship to the City shall be that of an
independent contractor. Auctioneer shall be solely responsible for
the performance of any of its employees or agents under this
Agreement. Auctioneer shall report to the City any and all
associates performing work in connection with this Agreement.
Consultant is acting as an independent contractor, and not as
an employee of the City. In the performance of personal services
pursuant to the provisions of this agreement, Consultant shall not
be supervised, directed, or under the control or authority of any
Ci ty officer or employee, except and to the extent as may be
expressly or implicitly required by the terms and provisions of
this agreement. Any direction or control so required under this
agreement shall be limited to broad objectives or goals of the
project or program to be accomplished and not to the details and
procedures to accomplish such objectives or goals. Consultant shall
not be obligated to conform to the supervision or direction of City
officers or employees which are not authorized herein. Changes or
modifications of said objectives and goals may be made by written
recommendations of either party subject to the concurrence of the
other party in writing.
3. CARE, CUSTODY, AND CONTROL:
City agrees that it has and will in the future obtain
possession of vehicles, personal property, firearms, and/or real
property (all inclusively referred to hereinafter as "property")
pursuant to Health and Safety Code Section 11470 et seq., and other
State and local laws, and that such property is subject to the
care, custody, and control by City.
Auctioneer recognizes that care, custody, and control does not
convey legal title to City for such property. Ci ty agrees to
transfer possession of said property to Auctioneer subject to the
following conditions:
a. Auctioneer shall be available to respond to the scene of
a property seizure upon 90 minutes notice, prepared to inventory,
take possession, load and transport to secure storage said
property. Upon picking up property from the City, Auctioneer shall
sign a receipt for the property, after which time Auctioneer shall
bear all costs, expenses, and risks of loss in loading,
transporting, storing, securing, insuring, preparing for sale,
advertising, and selling the property.
b.
storage
storage.
Auctioneer shall provide secure storage at Auctioneer's
facility. Auctioneer shall bear all costs for said
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4. REPAIRS AND MAINTENANCE:
City agrees that Auctioneer may elect to perform any repairs
or maintenance on property in Auctioneer's possession provided that
before such repairs or maintenance are performed, Auctioneer
receives advance approval by City.
Auctioneer shall ensure that all motor vehicles are properly
maintained and are smog certified per state law prior to sale.
5. AUTHORIZATION OF SALE:
Auctioneer and City agree that Auctioneer shall not be
entitled to sell or offer to sell property transferred to
Auctioneer unless Auctioneer has obtained written certification
authorizing sale from City. Certification as provided herein shall
entail the receipt by Auctioneer from City of either of the
following:
a. Copy of an order releasing property to City signed by any
State or Federal Judge or magistrates.
b. Copy of authorization from California Department of Motor
Vehicles transferring title of vehicles to City.
6. RETURN OF VEHICLE OR PROPERTY:
Auctioneer agrees that City shall be entitled, prior to public
sale of property, to request the return of any property transferred
to Auctioneer for any reason, and that upon receipt of such
request, Auctioneer shall return said property to City without
assessing any cost or expense to City for such return. On return
of such property, Auctioneer shall be relieved of all obligations
or liability for such property under this Agreement. Request for
return may be made by telephone to Auctioneer.
Auctioneer agrees that in the event City notifies either in
writing or telephonically that property in Auctioneer's possession
must be returned to City, Auctioneer shall return property to
City's designated storage facility within forty-eight (48) hours of
such notification.
7. PUBLIC SALE BY AUCTION:
Auctioneer agrees to conduct public sale by auction of
property accepted for forfeiture by City held by Auctioneer in
conformance with the requirements of federal, state, and local
laws, including Chapter 2.70 of the San Bernardino Municipal Code.
Also in conducting said sale, Auctioneer shall pay for all
advertising, including but not limited to, newspaper advertising,
direct mail, and flyer, and shall give a minimum of five (5) days
public notice of auction in a newspaper of general circulation
published in the City of San Bernardino. Auctioneer shall also
bear all cost relating to transporting or moving such property to
auction site. Auctioneer shall conduct absolute auctions, with no
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minimum bid for property put up for sale unless the City has
expressed a concern in writing regarding a minimum sale price.
8. GUARANTEE OF RECEIVING APPRAISED VALUE:
Whenever the City expresses a concern in writing regarding the
minimum sales price on any particular property, Auctioneer agrees
to guarantee a minimum sales price, negotiated in advance based on
the appraised value of the item, and shall provide the guarantee in
the form of a certified check in the amount of minimum sales price,
less commission, prior to the sale.
9. INSPECTION STATEMENT OF RELIANCE:
Auctioneer shall required that each auction purchaser sign a
statement acknowledging inspection oithe real or personal property
being purchased and stating that the purchaser is relying solely on
that inspection in making the purchase.
10. COMPENSATION:
Auctioneer shall maintain auditable records of all property
which is sold pursuant to this Agreement. Auctioneer's records
shall be made available to the City for verification, within a
reasonable time after the City request inspection.
Auctioneer and City agree that upon Auctioneer's sale of
property accepted for forfeiture under the conditions provided
herein, Auctioneer shall deduct as compensation for the services
provided to the City ten percent (10%) of the actual sales price of
a vehicle and twenty-five percent (25%) of the actual sales price
of a firearm or other personal property, excluding real estate and
other property of exceptional value. Actual sales price shall mean
the total price paid to the Auctioneer by the purchaser for the
property.
"Property of exceptional value" shall include any vehicle
and/or property with an appraised value greater than $100.00. In
the sale of property of exceptional value the compensation for
Auctioneer's services shall be negotiated in writing between City
and Auctioneer prior to sale, and shall generally be less than ten
percent (10%) of the actual sales price.
Auctioneer agrees that wi thin fifteen (15) days of the sale of
property accepted for forfeiture, it shall pay to City that actual
sales price proceeds received from the sale of such property, minus
the compensation described above for Auctioneer's services and
deducting the cost of any approved repairs to property performed by
Auctioneer prior to sale of such property.
11. BUYER'S PREMIUM:
It is understood that Auctioneer charges the buyer of any
auctioned vehicle or property excluding real estate, a buyer's
premium equal to ten percent (10%) of the actual sales price.
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12. SERVICES PROVIDED IN CONNECTION WITH SALE OF REAL ESTATE OR
COMMERCIAL PROPERTY:
The particular services to be provided in connection with the
sale of a specific piece of real estate or commercial property will
be negotiated on a case by case basis, with the exception of
insurance coverage. Auctioneer shall immediately acquire insurance
coverage for fire, theft, and personal liability on real estate or
commercial property as soon as Auctioneer is notified by City that
it has obtained ownership or possession of the property by court
order. Insurance coverage shall be for the full appraised cash
value of the improvements. Auctioneer will also arrange for a
title search and title report on the property.
Auctioneer shall conduct an evaluation of the property and its
sales potential and submit a complete cost analysis of the services
that Auctioneer proposes to deliver in connection with its care,
custody, and control of that property. Services that may be
provided include, but are not necessarily limited to:
a. Securing the property, including installation of locks,
and/or other security devices.
b. Hiring a private security firm to make periodic checks of
the property.
c. Contracting for periodic maintenance of lawns and
landscaping.
d. Contracting for cleaning, maintenance, or repair of the
interior or exterior of the property to improve its sales
value.
e. Contract for a property inspection service to inspect the
property and identify any defects or liabilities that
should be disclosed to potential buyers.
No services or repairs shall be initiated unless approved in
advance by City and the costs identified in a cost analysis. The
fee charged for services or repairs shall be the actual cost or the
service or repair, with no surcharge added by Auctioneer.
Auctioneer shall advertise and promote the sale of the
property for at least forty-five (45) days prior to sale at auction
and have at least one (1) advertised open house where prospective
bidders may preview and inspect the property and obtain a title
report. Real estate sales may be conducted by video auction in
conjunction with other auctions conducted by Auctioneer.
Buyer shall be responsible for the cost of all fees incurred
after the auction, including but not limited to, costs of escrow
and recording.
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13. COMPENSATION AND FEES FOR AUCTION OF REAL ESTATE:
Unless otherwise negotiated in writing for a particular
property, Auctioneer shall receive as compensation a fee equal to
six percent (6%) of the actual sales price of the property. The
actual sales price shall mean the total sales price paid to the
Auctioneer by the purchaser for the property.
Auctioneer agrees that within thirty (30) days of the sale of
the real estate or commercial property, it shall pay to City that
actual sales price proceeds received from the sale of the property,
minus the compensation described above for Auctioneer's services;
deducting the actual, itemized cost of the specific services agreed
upon in connection with the particular property such as insurance,
security, lawn maintenance, or painting performed by Auctioneer or
its agents prior to sale of the property; and deducting the cost of
settling encumbrances on the property identified in the title
report. During this thirty (30) day escrow period, Auctioneer will
clear all encumbrances from the title so that the property is
transferred with clear title.
14. EXAMINATION OF FIREARMS:
With respect to any firearms which are handled by Auctioneer
for City, City shall provide a list of firearms which are to be
destroyed for City by Auctioneer. Auctioneer reserves the right to
examine all the firearms listed as being appropriate for sale at
auction, and if Auctioneer determines that any of said weapons are
not appropriate, because of defect or otherwise, for sale at
auction, shall notify City that that firearm will be removed from
the list of firearms to be sold at auction, and placed on the list
of firearms to be destroyed. The destruction of said firearms
shall be done as a courtesy to City at no cost or expense to City.
15. INSURANCE:
a. Auctioneer shall furnish City with a certificate of
insurance evidencing that it carries worker's compensation
insurance and that the policy shall not be canceled nor the
coverage reduced except upon thirty (30) days prior written notice
to the City.
b. Auctioneer shall obtain at its sole cost and file with
the City prior to exercising any right or performing any obligation
pursuant to this agreement, and maintain for the period covered by
this agreement, a policy of comprehensive general liability
insurance against liability for any and all claims, suits for
damages or injuries to person or property resulting from or rising
out of operations of Auctioneer, its officers, agents or employees,
performed in connection with this Agreement including but not
limited to premises and automobile, which also names the City of
San Bernardino, its officers, agents and employees as additional
insured. Auctioneer's insurance shall be primary. Said policy or
policies of insurance shall provide coverage for both bodily injury
and property damage in no less than the following amount:
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General Liability
Combined Single Limit per Occurrence
General Aggregate
$1,000,000
$1,000,000
Automobile Liability
Combined Single Limit per Occurrence
$1,000,000
Auctioneer shall provide evidence of compliance with the
insurance requirements listed above by providing a certificate of
insurance, in a form acceptable to the City Attorney, concurrently
wi th the submittal of this Agreement. Said policy or pOlicies
shall also contain a provision that termination, cancellation or
change of coverage of insured or additional insured shall not be
effective until thirty (30) days notice thereof has been given in
wri ting to City. Auctioneer shall give City prompt and timely
notice of claim made or suit instituted arising out of Auctioneer's
operations hereunder.
16. AUCTIONEER'S INDEMNIFICATION OF CITY:
Auctioneer shall defend, indemnify and hold harmless the City
and its officers, agents, and employees against all claims for
damages or injuries to persons or property arising out of
Auctioneer's execution of the work, or otherwise by the conduct of
the Auctioneer or its employees, agents, subcontractors, or others
(including the active and passive negligence of the City, its
officer, agents, or employees) in connection with the execution of
the work covered by this contract and any and all costs, expenses,
attorney's fees and liability incurred by the City, its officers,
agents, or employees in defending against such claims, whether the
same proceed to judgment or not, except only for those claims
arising form the sole negligence or willful conduct of the City,
its officers, agents, or employees.
Auctioneer shall reimburse the City for all costs and expenses
(including but not limited to fees and charges of attorneys, and
other professionals and court costs) incurred by City in enforcing
the provisions of this Agreement.
17. VALIDITY:
The validity in whole or in part of any provision of this
Agreement shall not void or affect the validity of any other
provision of this Agreement.
18. LAWS GOVERNING THIS AGREEMENT:
This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
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19. NOTICES:
Notices and written communications sent by one party to the
other shall be personally delivered or sent by U.S. Mail, postage
prepaid, to the following addresses:
City:
Auctioneer:
City of San Bernardino
Chief of Police
466 West 4th Street
San Bernardino, CA 92401
Roger Ernst & Associates
P.O. Box 3251
Modesto, CA 95353
20. TERM OF AGREEMENT:
This Agreement shall remain in effect until December 31, 1993,
unless earlier terminated as provided herein.
21. TERMINATION OF AGREEMENT:
This Agreement may be terminated by either party, for any
reason whatsoever, upon 120 days advance written notice to the
other party. If notice of termination is given, each party shall
work in good faith to effect the orderly sale and disposition of
property in possession of Auctioneer prior to notification,
including if necessary, a grace period of sixty (60) days to
dispose of such property continuing under the same terms and
conditions of this Agreement.
22. NON-EXCLUSIVITY OF AGREEMENT:
City reserves the right to contract with persons or
auctioneers other than Roger Ernest & Associates to dispose of any
forfeited vehicles, real or personal property, or firearms.
23. EXCLUSIVITY AND AMENDMENT OF AGREEMENT:
This Agreement supersedes any and all other Agreements either
oral or in writing between the parties hereto with respect to the
employment of Auctioneer by City and contains all the covenants and
Agreements between the parties with respect to such employment in
any manner whatsoever. Each party to this Agreement acknowledges
that no representations, inducements, promises, or Agreements,
orally or otherwise have been made by any party, or anyone acting
on behalf of any party, which are not embodied herein, and that no
other Agreement or amendment hereto shall be effective unless
executed in writing and signed by both City and Auctioneer.
24. SIGNATURES:
THIS AGREEMENT is deemed to be executed by the parties hereto
in San Bernardino even though the signing of the Agreement by ROGER
ERNST is done in Modesto, California.
IN WITNESS WHEREOF, the parties hereto have executed this
8
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Agreement the date and year first written above.
Attest:
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cit;li~~~~~ /K;""'L7"(f'
ROGER ERNST &
(] l.c'n L ~
~~ted
i? '/2.__,
By:
Approved as to form and
legal content:
JAMES F. PENMAN
City Attorney
By: ~ 1 f.~
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9
/
1-3'/-52
Giddings,Corby,Hynes,Inc.
P.O. Box 3231
Modesto, CA 95353
rHIS CERTIFICATE IS ISSUED AS A MA'TER OF INFORMATION ONLy AND
NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT
EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICiES BElOW.
PP-:::OUCER
CODE
SUB-CODE
COMPANIES AFFORDING COVERAGE
COMPANY A
LETTER MARYLAND CASUALTY
COMPANY B
LETTER MARYLAND CASUALTY
COMPANY C
LETTER MARYLAND CASUALTY
COMPANY D
LETTER FREMONT
COMPANY E
LETTER
INSURED
Roger Ernst & Associates Inc.
Attn: Gary Fitch
P.O. Box 3251
Modesto
CA
95353
THIS IS TO CERTIFY THA-I. THE POLICIES OF INSLlRANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED NOTWITHSTANDING ANY REQUIREMENT, TEhM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POliCIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION ALL LIMITS IN THOUSANDS
DATE (MMfDDfYY) DATE (MM/DD/YY)
GENERAL LIABILITY EPAI07925951 8/21/91 8/21/92 GENERAL AGGREGATE
COMMERCIAL GENERAL LIABIliTY R ATE
CLAIMS MAOEW OCCUR.
OWNER'S & CONTRACTOR'S PROT
ANY NE FIRE
ANY N E PE R N
EPA107925951 8/21/91 8/21/92 COMBINED
SINGLE 1000
LIMIT
ALL OWNED AUTOS BODilY
INJURY
(PR. PER.)
BODILY
INJURY
(PR. ACC.)
GARAGE LIABILITY
UB75272261 8/21/91 8/21/92 EACH
OCCURRENC
D WORKERS' COMPENSATION WP9148650903 8/21/91 8/21/92
(EACH ACCIDENT)
AND
EMPLOYERS' LIABILITY (DISEASE-POL. lIM.)
(DISEASE-EA. EMPL.)
OTHER
DESCRIPTION OF OPERATIONSILOCATIONSIVEHICLESISPECIAL ITEMS
RE: SERVICES OF AUCTIONEER
CITY OF SAN BERNARDINO
466 WEST 4TH STREET
SAN BERNARDINO, CA 92401
SHOULD ANY OF THE ABOVE DESCRIBED POliCIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO
MAIL 10DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE
LEFT, BUT FAILURE TO MAIbIl'.i/m!~W~~L'H~9i\1e.OBlIGATlON OR
LIABILITY OF ANY KIND UPON TH~OMPANY, ITS AGENT~R REPRESENTATIVES.
,I , .~ .,'.' .
AUTH~~I(~f!.BEg~.T~ IVE / ',_,..__/ ,,;.~V
(
c
;)Ol~;C\r ''''~U,\/~E3~R: EPA10792595J CCMI-lIERCIAL GL:.E~?AI_ Lit\8ILITY
ROGER ERNST & ASSOCiATES INC.
THIS ENDORSEMENT CHANGES THE POLlCY. PLEASE READ IT CAREFULLY.
(
ADDITIONAL INSURED - OWNERS, LESSEES OR
CONTf3,ACTORS (FORM B)
This endorsement modilies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART.
SCHEDULE
Name 01 Person or Organization: C!TY OF SAN BERNARD I NO
466 WEST 4TH STREET
SAN BERNARDINO, CA 92401
(If no entry appears above. inlormation required to complete this endorsement will be shown in :he Declarations
as applicable to this endorsement.)
WHO IS AN INSURED (Section II) is amended to include as an insured the person or organiza'on shown in the
Schedule, but only with respect to liability arising out 01 "your work" lor that insured by or for you.
f
--",--
CG20101185
Copyright. Insurance ~ervices Office, Inc.. 1984
o
ROGER
ERNST
& ASSOCIATES · AUCTIONEERS
CAL I EORN I A I P!\~ ENFORCEMENT AGENCY'S
TENTH ANM~L C[~FI9CATEn FIREARMS
~)IICT 1 ON AGF:EE~1ENT
It is hereby mu tua II',!' c:c.f]l-eerl b~'?t.ween EF:NST ~~. ASSn(: I ;~TES
AlICT I OI'lEERS, P.O. BOX 32~; 1, MODESTO, CA. 953~3 and
SAN BERNAr,;DINO POLICE DEPARTMENT, P.O. BOX l~c'9. SAN
BERNAf~DnjO. CA 92401., that thE 'following rn-op",.-ty bE sc.ld at
{.~ucttCl~-J te. FE~de'cal FirE'al-me. I ice'CiS/? hC11deTs onl'..! {SE?r~
attached inv€'~nt(tr'Y shr:c-f.?t). AJ 1 salE e>~perlSE'S'> &CE. t:c< hE.-
absorbed by ERNST t: ASSOCIATES (direct mail ad~'Rr.ti5ing. 5ale
s:,itF.: ren't:al~ sale site sPcur-it....,'~ E'.tc.>.. SalE? t.o hf-'? CDI-rdttct.f."d
in a.c:c:ord.[1f"tc{"~ with 5.8. 120;'~~) thru 12032. C3.1iforni~:~ Pel,Ell
Code. a.t the ModeYi,tc< C,':'(1t;\-f? Plc;;::.:a. t(lOU "I. II Si..(E'€,t'; in
MDdpsto'" Calif'orelia e.j-f Jt1ly 1'1 1992 eft 9:00 z~~m.
{,'illc+:ion Compecny _1 t::._ t'.:, c:r:riid\u.:.:t th€~ Eale 'fr.,\- &\lhic.h the
o!tJnei- 2qeees to p2t_y a sum t"'qt ({";.oJ to t"llp'nty-f i ve (2~) ["rpr-cf~rlt
of items:, so.old.. ThE' sBiM S"ll~m t;o bp l-ptainF.,d h',. r~l\r:t.ioll
Comp,"~n"l from nr'CrcPE'ds of S,:=:..]F~ \'Ji th balancf2 b,',-^,j nil ::=c'nt: t.D
ccns:l.gnor' vli.thin t"'JE'rlt'Y'uF:iql-"It; (p(:j) banki(j~ di.~\t's Bfter"" F.i?lc.
Destruction (l-f weapons ~-.ji 11 be defllF' ~~.t 'liD chargp te, thF'
agenc::.-' "
._._-_._.._.------~_.--""----- _.__._._-_.._-----_._-_._-----------~------_..-
DATE
SllN BEHNArm I NO POL I CE DEPAF:n'1EUT
-_._---_._._------.--------_._---_._-""-_._----""_._-~----------..-..
DATE
POGEI'< EPi'IST ~" I~SSOCIATES. HIC.
U\! IFORNIA I..,UCTIDNU'R CCit'1t1ISSION L If~ENSE #278
P.O. Box 3251
.
Modesto, CA 95353
.
(209) 527.7399
GENERAL INFORMATION
REGARDING:
Sale of Confiscated Firearms under the Pr~ovision
of S. S. 12\2128 and 12\2132 Penal Code
Gentlemen:
Our firm, ERNST & ASSOCIATES AUCTIONEERS, will be
conducting a synchronized auction of Firearms confiscated by
Shet'iff and Police Departments and County Municipalities in
the State of California.
Buyet's at this auction will be restt'icted to dealers,
manufacttn"'e'('5 fU:. imoot....ter's of fit..eat....ms who hold ~ cur....rent
Fedet'al Fit'eat'ms License; ALL Bureau of Alcohol, Tobacco and
Firearm Regulations will apply. The sale will be in
acco.r""dance to Sect i on 12028 and 12032 of the Penal Code and
conducted between ~ h 1""2 and July ~ 1""2. (1\21 Days)
All
dit'ect ly
Fund.
monies received
to Consigning
from Fir'ear"'ms
Agencies fot'
sale will be reyerted
deposit into General
Out' sale
auction to be
Califot'nia.
is the largest of its kind. We anticipate this
one of the lat'gest eyer held in the State of
~
CERTIFICATION OF AUCTION COMPANY
I, ROGER D. ERNST, ownet', do het'eby cert i fy that:
I personally have carefully analyzed data and Laws
pet'taining
to
the
Sale
of
Fil'...ear....ms
in
the
State of
Califol'"'nia., unde..."" the Pt"ovision of Sections 12028 and 12032
Penal Code.
All Fedet'al t'egulations from the Bureau of
Alcohol, Tobacco and Fit'eat'ms will be stt'ictlv adhet'ed to.
This program has been discussed in its entirety with the
Bureau of Alcohol, Tobacco and Firearms.
This
certification
con f Ol''''m s
to
the
standat'ds
of
Ce,'tified Auctioneet'S Institute <C.A. I.).
4
CALIFORNIA STATE LAWS AUTHORIZING FIREARM SALES
RE: Sale of Fi,-ea,-ms '_mde,' the P,'oyisions of S.S. 12028 and
S. S. 12032 Penal Code.
Unde,' the p,-oYisions of the Penal Code, any fi,-ea,-m that
is Cdt"')""ied, concealed 0'(' is used In the commission of a
misdemeanor"' 01"" felony, at" even an attempt to commit any
misdemeanor' Ot" felony, is deemed a nuisance, and fot"'feited by
the defendant. Section 12028 provides that these weapons may
be sold annually between the first and tenth days of July, at
Auction to current F.F.L. holders.
There are few exceptions to this provision for the sale
of these weapons. One of those exceptions is that if the
weapon is not of the type that can be sold to the publ ie,
genet"'ally, such as sawed-off shotg'_lns, etc. then it is to be
destr-oyed. If the weapon belongs to someone othe,' than the
defendant, then upon proof of ownership, the weapon should be
,-etut'ned to the lawful owne,'. Weapons in the possession of
the Depa,-tment of Fish and Game 0" used in the violation of
any section in the Fish and Game Code, are not subject to
sale under this Section.
Below is SS12028 PC in its entirety for your perusal:
Cal The unlawful concealed carrying upon the person or
within the vehicle of a car"riel''' of any explosive substance,
othet.... than fixed ammunition, dit"k, Ot"' dagger. as pt"ovided in
Section 12020, the unlawful concealed carrying upon the
pe,-son 0" within the vehicle or the carrie,' of any of the
weapons ment ioned in Sect ion 12025, and the unlawful
Pos3€ssion at"' cat"rying of any item in violat ion of Sect i,on
G53k is a nuisance.
(b) A fi..."ea..."m of any natl.U'''e used in the commission of
any misdemeanor as provided in this code or any felony or an
attempt to commit a misdemeanor' as p..."ovided in this code 0"'''
any felony, is, upon conviction of the defendant, Ot" upon a
jU'Ieni Ie COllt't finding that an offense which would be a
misdemeanor or felony if committed by an adult was committed
0'- attempted by the juyeni Ie with the 'He of a fi,'ea,'m, a
nUlsance. A finding that the defendant was guilty of the
offense but was insane at the time the offense was committed
is a conviction for the purposes of this section.
~
-'
(c) Any weapDn desc,'ibed in subdivision (a), D", upDn
cDnvictiDn Df defendant or a juvenile CD'-ll't finding that an
Dffense which wDuld be a misdemeano,' Dr felDny if cDmmitted
by an adult was cDmmitted Dr attempted by the juvenile with
the use Df a fi,'ea,'m, any weapon desc,'ibed in subdivisiDn
(b), shall be s'-"'t'endet'ed to the shet'iff of a cDunty D" the
chief of pDlice D" Dthet' head Df a municipal pDlice
depat'tment of any city Dr city and cDunty, Dr the
commissiDner Df the Department Df the CalifDrnia Highway
Patt'Dl. The office,'s tD whDm weapDns are surrendet'ed, except
upDn the cet'tificate Df a judge Df a CDUt't Df recDrd, Dr the
disb'ict attDt'ney Df the county, that the retent iDn thet'eDf
is necessat'y D" pt'Dpet' tD the ends of j'-tstice, may annually,
between the 1st and 10th days of J'-lly, in each yeat', Dffet'
the weapDns, which the Dfficers in charge Df them cDnsider tD
have value with respect tD spD,'ting, rect'eational, Dt'
cDllectiDn pUt'pDses, fDr sale at public auctiDn to pet'SDns
licensed put'suant tD section 12071 tD engage in businesses
invDlving any weapDn purchased. If any weapDn has been
stDlen and is thet'eafte" recDve,'ed ft'Dm the thief Dt' his Dt'
het.... tl'...ansfe)'....ee, Ot" is used in sl\ch a manner as to constitute
a nuisance put'suant to subdivisiDn (a) Ot' (b) wlthD'Jt the
prior knDwledge Df its lawful Dwner that it wDuld be SD used,
it shall nDt be SD Dffet'ed for sale but shall be restDt'ed tD
the lawful owner', as soon as its use as evidence has been
set'ved, upon hlS Dt' het' identificatiDn Df the weapDn and
prDDf Df Dwnership.
(d) If, unde-,' this sectiDn, a weapDn is nDt Df the type
chat can be sDld tD the publ ic, genet'ally, Dr is nDt sold
PUt's'.lant tD subdivisiDn (c) the weapDn shall, in the mDnth Df
J'_lly, next succeeding, Ot"' sooner', if necessat"y to conse'r....ve
local t'esDUt'Ces incl'.lding space and '.ltilizatiDn Df pet'sonnel
who maintain files and secut'ity Df thDse weapDns, be
destroyed so that it can no longer be used as such weapon
except upDn the certificate Df a judge of a cDurt Df recDrd,
Dr Df the district attDrney of the cDunty, that the retentiDn
Df it is necessary Dr prDper tD the ends of justice.
(e) This sectiDn dDes nDt apply to any fit'eat'm in the
possession of the Depa'f"'tment of Fish and Game O'r" which was
used in the viDlatiDn Df any provision of law in the Fish and
Game Code or any regulat ion adopted p'.lrsl.lant thet'etD, Ot'
which is fot'feited p,-,,'suant to Section 5008.& of the Public
Resour"'ces Code.
(f) No stolen weapon shall be
pUt'suant to sl.lbdivisions (c) Ot' (d) unless
is given to its lawful ownet"', if his at...
address can be reasonably ascet"tained.
sold or destroyed
reasonable notice
het' ident ity and
'"
Section 12032 PC covers the situation in which a firearm
has been intt'oduced into evidence as an exhibit in c,'iminal
case, and held by the cO".ll't afte,' the case has been
concluded. This section provides for the sale of or
destruction pursuant to S12028. Any weapon in the custody of
the CO'_ll't afte,- being admitted a an exhibit, would requi,'e a
CO'_ll't o,'der to release it to the sheriff fa" its sale 0'-
destruction. Sometimes exhibits are released back to the law
enfo,'cement agency fa" it retention. This usually occU"S in
cases which the court is not equipped to store these weapons.
If this occurs, it must be in possession af the law
enfo,'cement office,- fo,- at least 180 days, befo,-e it can be
sold or destroyed.
The following is Section 12032 in its entirety;
"SS12032--Destt-uct i on of fi rea,'ms othe,'wi se subj ect to
sale as abandoned, etc., p,-ope,'ty.
Notwithstanding any p,-ovision of law 0" of any local
ordinance to the contrary, when any firearm is in the
possession of any office,' of the state, 0'- of a county, city
and cO'_<nty 0'- city, and such fi,-ea,-m is an exhibit filed in
any ct-'iminal act ion Ot... pt-'oceeding which is no longe'(' needed
0'- is unclaimed 0'- abandoned prope,-ty, which has been in the
possession of the office,' fo,- at least 180 days, the fi,'ea,-m
shall be sold, 0" destt-oyed, as provided fo,- in Section
12028.
This
section shall not apply to any fi,-ea,-m in the
of the Depa,-tment of Fish and Game or which was
violation of any provision of law, or regulation
in the Fish and Game Code." (End of S12032 PC)
possession
used in the
thet"'eundet...,
7
~
CONSIGNOR QUALIFICATIONS
Sale is held str'ictly to City and County entities 0"
municipalities.
Prepare itemized list of firearms and serial numbers,
cQt'responding item numbers must be on each weapon.
Set appointment with E,'nst & Associates to pick up and
tr'anspo,'t p,'operty, fa,' eye,'y unit consigned must be checked
for proper presentation to Licensed Dealers.
8
MARKET ANALYSIS
It is much to 0'.'" pleasu,'e that 0'-'>' Company,
aft e'-
segmenting and analyzlng the market place for this particular
product that all results are positive.
The response from the
highly
specialized
conSl.lmel'''S
fo,- this
p,-oduct
has
been
ast~"'onomical.
With di,-ect
communication our company will
p,-oyide fo,- its consigno,-s the finest ma,-ketability concept
feas i bl e.
This concept will atb-act all possible consume'-s
fot" consignors product in one place to be sold by competitive
bidding
at
one
time.
End
t"'esult
MORE NET DOLLARS.
'3
..., ~
PROTECTION OF FIREARMS AT SITE OF DISPERSAL
Secu,'ity for Dispe,'sal (Auction) Site fo,' all weapons
wi 11 be provided by Ernst & Associates Auct ionee,'s, wo,'king
di,'ectly with and fulfilling all reqllests of Department of
Treasury-Alcohol, Tobacco and Firearms Diyision.
SALE SITE
Sale to be conducted at the Modesto Centre Plaza,
1iZ1iZ1iZ1 "L" St,'eet, Modesto, CA on Wednesday, J'~ly 1st, 1992,
9 :iZIiZI a. m.
INSURANCE
Each consigning agency will receive a Ce,'tificate of
Liability Insurance for $l,iZliZliZI,iZliZliZI.iZIiZI from Ernst & Associates
naming Agency addit ionally insu,'ed fo,' any auct ion related
business.
1iZ1