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HomeMy WebLinkAbout1992-189 .' 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 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 The authorization to execute the above- referenced agreement is rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage of this resolution.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 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / RJM:ms[ernst.res] 1 ~ . 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 , 1992, by the following vote, to wit: AYES NAYS ABSTAIN ABSENT x x x x x x 1 2 3 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 x ~~ /') J n (~"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] / .J' // // ~7~/'-h'C /'7//// .,// /~../!.p/ / c:.':;/' /~__7- . lcomb, Mayo San Bernardino 2 ." .t 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 1 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 2 _.- 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 3 "\ "! 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. 4 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. 5 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: 6 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. 7 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 r . Agreement the date and year first written above. Attest: () . 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.~ tJ 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