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CITY OF SAN BEAt\kRDINO - REQUES1()OR COUNCIL ACTION
From:DANIEL A. ROBBINS. CHIEF OF POLICE Subject:
Renewal of Agreement .w~th Roger
Ernst & Associates. to store and
sell seized vehicles. firearms.
personal and real property.
Dept: POLICE
Dau:APRIL 24. 1992
Synopsis of Previous Council ection:
Resolution #89-501. authorizing agreement with Roger Ernst & Associates.
Auctioneers. to store and sell seized vehicles.
firearms. personal and real property.
Recommended motion:
Adopt resolution.
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Conuctperson: r.t- n""" !';n"ll
Phone: 384-5655
Supporting data attached:
Yes
Ward:
FUNDING REQUIREMENTS:
Amount:
Nnnp
Source:
Finance:
-
Council Notes:
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CIT'f OF SAN BEIGARDINO - REQUES..oOR COUNCIL ACTION
STAFF REPORT
since December 1989, the Police Department has contracted with Roger Ernst &
Associates, auctioneers, of Modesto, California, to store and auction seized
vehicles, firearms, and personal and real property. The vehicles auctioned
are vehicles that have been forfeited to the state of California through the
Asset Seizure Program. Some personal property, mostly jewelry, is also
auctioned after having been forfeited to the State. The firearms that are
auctioned have been either forfeited to the state via Asset Seizure or have.
been either found or ordered disposed of by the court.
For the past two years, the Police Department has received excellent service
from Roger Ernst & Associates and they have successfully auctioned vehicles,
jewelry and firearms that were forfeited to the State of California. Because
the auctioneer stores vehicles on their property prior to sale, the police
Department saves considerable money in storage fees that would otherwise be
paid for the storage of these vehicles.
Numerous other law enforcement agencies, in both Northern and Southern
California, use this company for disposal of firearms and asset seized
property.
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RESOLUTION NO.
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 &
Associates, Auctioneers, to store and sell seized vehicles,
personal and real property, and firearms, a copy of said agreement
is attached hereto, marked Exhibit "A", and incorporated herein by
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
meeting thereof, held on the
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RJM:ms[ernst.res]
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RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH ROGER ERNST & ASSOCIATES,
AUCTIONEERS TO STORE AND SELL SEIZED VEHICLES, PERSONAL AND REAL
PROPERTY, AND FIREARMS.
day of , 1992, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
ESTRADA
REILLY
HERNANDEZ
MAUDSLEY
MINOR
POPE-LUDLAM
MILLER
City Clerk
The foregoing resolution is hereby approved this
day
of
, 1992.
W. R. Holcomb, Mayor
City of San Bernardino
Approved as to
form and legal content:
JAMES F. PENMAN,
City Attorney
RJM:ms[ernst.res]
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AGRE~
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
"Auctioneer".
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
Health 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 thi~ Agreement. The Chief of Po11ce
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
City 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
Ci ty' s designated storage facility wi thin 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 of the 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, wi thin 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 within 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 CONNEC~ION 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
with 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
writing 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
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Agreement the date and year firs~ written above.
Attest:
CITY OF SAN BERNARDINO, A
Municipal Corporation of the
State of California
By:
City Clerk
w. R. Holcomb, Mayor
ROGER ERNST & ASSOCIATE~
By: z-::.<
r Ernst, President
Dated
Approved as to form and
legal content:
JAMES F. PENMAN
City Attorney
By: ~ t. fp~
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THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONL'f AND CONFERS
NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND,
EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES JlELOW.
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H ISSUE- DATE (MM/DDIYY)
Giddings,Corby,Hynes,Inc.
P.O. Box 3231
Modesto, CA 95353
COMPANIES AFFORDING COVERAGE
CODE
SUB. CODE
COMPANY A
LETTER IlARYLAlID CASUALft
COMPANY B
LETTER IlARYLAlID CASUALft
COMPANY C
LETTER IlARYLAlID CASUALft
COMPANY D
LETTER !'RBIIOIft'
COMPANY E
LETTER
INSURED
Roger Brnst , Associates Inc.
Attnl Gary Pitch
P.O. Box 3251
Mod.sto CA 95353
~;.J!lIjllr.J~ftWijWigtj).t1.WgW~~~~~.~ Y;.. . tre~~%i:- .: J1WW&.i
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEH ISSUED TO THE INSURED NAMED A&OVE FOR THE ~OLlCY PERIOD
INDICATED NOTWITHSTANDING ANY REQUIREMENT, TERM 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.
UB75272261
8/21/92
COMBINED
SINGLE
LIMIT
BODILY
INJURY
(PR. PER.
BODILY
INJURY
(PR. ACe.)
.....................
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TYPE OF INSURANCE
POLICY NUMBER
POLICY EFFECTIVE OLlCY EXPIAATIO
DATE (MM/DD/YY) DATE (MM/DDfYV)
ALL LIMITS IN THOUSANDS
BPAl07925951
8/21/91
8/21/92
COMMERCIAL GENERAL LIABILITY
CLAIMS MADEW OCCUA.
OWNER'S' CONTRACTOR'S PROT
BPAl07925951
8/21/91
8/21/92
ANY AUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
HIRED AUTOS
NON.OWNED AUTOS
GARAGE LIABILITY
.....................
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.....................
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.....................
.....................
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....................
.....................
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.......... ......
8/21/91
AGGREGATE
5000
D WORKERS' COMPENSATION
AND
EMPLOYERS' LIABILITY
1IP9148650903
8/21/91
8/21/92
............................
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(EACH ACCIDENT)
(DISEASE.POL. L1M.)
(DISEASE.EA. EM PL.)
OTHER
DESCRIPTION OF OPERATIONS/LOCATIONSIVEHICLES/SPECIAL ITEMS
lIB I SBRVICBS OF AUC'l'IClIIIlBR
CIft OF SAIl BBRHlUIDIIIO
466 1IIlS'l' 4ft _
SAIl 1lIlRNARDIIIO. CA 92401
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF. THE ISSUING COMPANY WILL ENDEAVOR TO
M~IL 10 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE
LEFT, BUT FAILURE TO "A'bI!lil!~lI!1~T~I!\V:L~rme.DBLlGATION OR
LIABILITY OF ANY KINO UPON TH,yOMPANY, ITS ~GEN:...$..IOR REPRESENTATIVES.
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COMMERCIAL GENERAL LiABILITY
POLiCY NUMBER: EPAn25951
ROGF.R ERNST & ASSOC~S INC.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
(
ADDITIONAL INSURED - OWNERS, LESSEESOR
CONTf3.ACTORS (FORM B)
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART.
SCHEDULE
Name of Person or Organization: CITY OF SAN BERNARDINO
466 WEST 4TH STREET
SAN BERNARDINO, CA 92401
(If no entry appears above. information 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 organizaton shown in the
Schedule, but only with respect to liability arising out of "your work" for that insured by or for you.
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CG 20 10 11 85
Copyright, Insurance ~ervices Office, Inc., 1984
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ERNST
& ASSOCIATES · AUCTIONEERS
CALIFORNIA lAW "NFORCEMENT AGENCY'S
TENTH ANNIIAL CONFISCATED FIRH',RMS
AIICT I ON AGRF.:F:MENT
It is hereby mutually aqreeri between ERNST &- ASSnr.IATES
AUCTIONEERS, P.O. BOX 3251, MODESTO, CA. 953~3 and
SAN BERNARDINO POLICE DEPARTMENT, P.O. BOX 1~~9. SAN
BERNARDINO, CA 92401, that the following property bp sc.ld at
ALlctie..., tc. Federal Firearms I icense holders e,nl", (seo
attachetJ inventor..... sheet>' All sale expenses ....'-E t.o be
absorbed by ERNST f" ASSOCIATES (direct mail adve,-ti!!'.ing. 5alE,
si te rent:a:l, sa.le site Sf?c.ur j tY!I e~tr:.). Sale to be CClliductf?d
in accc,rdance with S.S. 120::>n thru 12032, Califo.-nii:' Penal
CClde~ at the MCfdeste. Cl:'ntrE? Plaza.. 1000 "lll '3treE.t in
Mr:.destc., Cal i fornia con Jtll y 1, 1992 at 9 :00 a. m.
1""C1:ie.r, Company is t,~ ce.ndllct the sale for ".hich the
Cl,,"~nel- agrees to pay a. sum ~qt tEi' 1 tel twenty-f i ve (2~) D~rr.erlt
elf items sold.. The. S'ai<1 s"m t;(.) be ,-f?1:ainF.'d h\i A~Ir.ti"lf
CCrmpa"ilV frcrm proceeds elf" sale \'Ii th hEt! ance br:-i nl) SC7.nt tel
ce<nsignor within twenty--",;qht (28) banki",!! day'" after "",Ie_
Destruction of weapons will be dDI~ at no charge to thp
agency.
DATE
SAN BERNARDINO POLICE DEPARTMENT
DATE
ROGER ERr. 1ST & ASSOC I A TES , I NC .
CAI IFORNIA AI.ICTIOl\tEFR Cot1MISSION Ur:ENSE +1278
P.O. Box 3251
.
Modesto, CA 95353
.
(209) 527.7399
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GENERAL INFORMATION
REGARDING: Sale of Confiscated Firearms under the Provision
of S.S. 12028 and 12032 Penal Code
Gentlemen:
Our firm, ERNST & ASSOCIATES AUCTIONEERS, will be
conducting a synchronized auction of Firearms confiscated by
Sheriff and Police Departments and County Municipalities in
the State of California.
Buyers at this auction will be restricted to dealers.
manl~facturers !!..l:. i.corters II firearms ~ hold a current
Federal Firearms License: 8bb Bureau of Alcohol, Tobacco and
Firearm Regulations will apply. The sale will be in
accordance to Section 12028 and 12032 of the Penal Code and
conducted between Julv lL 1~~2 and Julv ~ 1~~2. (10 Days)
All
directly
F'~nd.
monies received
to Consigning
from Firearms sale will be reverted
Agencies for deposit into General
Our sale is the largest of its kind. We anticipate this
aClct i on to be one of the largest ever held in the Stat e of
California.
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CERTIFICATION OF AUCTION COMPANY
I, ROGER D. ERNST, owner, do hereby certify that:
I personally have carefully analyzed
pertaining to the Sale of Firearlls in
Califo,-nia, under the Provision of Sections
data and Laws
the State of
12028 and 12032
Penal Code.
All Federal regulat ions froll the Bureau of
Alcohol, Tobacco and Firearms will be strictly adhered to.
This pro grail has been discussed in its entirety with the
Bureau of Alcohol, Tobacco and Firearlls.
This
certification
confo'-lIls
to
the
standards
of
Certified Auctioneers Institute (C.A.I.).
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CALIFORNIA STATE LAWS AUTHORIZING FIREARM SALES
RE: Sale of Firearms under the Pl'oyisions of S. S. 12028 and
S.S. 12032 Penal Code.
Under the provisions of the Penal Code, any Firearm that
is carried, concealed or is used in the commission of a
misdemeanor or Felony, or even an attempt to commit any
mi~demeanor or felony, is deemed a nuisance, and ForFeited 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 so ld to the publ ic,
generally, such as sawed-oFF shotguns, etc. then it is to be
destl'oyed. IF the weapon belongs to someone other than the
deFendant, then upon prooF of ownership, the weapon should be
retm'ned to the lawFul owner. Weapons in the possession of
the Depal'tment of Fish and Game or used in the violation of
any sect i on in the Fi sh and Galle Code, are not subject to
sale under this Section.
Below is SS12028 PC in its entirety For your perusal:
(a) The unlawFul concealed carrying upon the person or
within the vehicle of a carrier of any explosive substance,
othel' than Fixed ammllnition, dirk, or dagger. as provided in
Section 1202'21, the unlawFul concealed carrying upon the
pel'son or within the vehicle or the carrier of any of the
weapons ment ioned inSect ion 12025, and the un lawF,..l
pos~ession or carrying of any item in violation of Section
&53k is a nuisance.
(b) A Fireal'" of any natln'e used in the co.mission of
any misdemeanor as provided in this code or any Felony or an
attempt to commit a misdemeanor as provided in this code or
any Felony, is, upon conviction of the deFendant, Dr upon a
j '.''1 en i 1 e court Find i ng that an oFFense wh ich would be a
misdemeanor or Felony iF committed by an adult was committed
Ol' att empt ed by the j uyen i 1 e with the use of a Firearm, a
nui sance. A Fi nd i ng that the deFendant was gui 1 t Y of the
oFFense but was insane at the time the oFFense was committed
is a conviction For the purposes of this section.
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(c) Any weapon described in subdivision (a), or, upon
conviction of defendant or a juvenile court finding that an
offense which would be a misdemeanor or felony if committed
by an adult was committed or attempted by the juvenile with
the use of a firearm, any weapon described in subdivision
(b), shall be surrendered to the sheri ff of a cOIJnt y or the
chief of police or other head of a municipal police
department of any city or city and county, or the
commissioner of the Department of the California Highway
Patrol. The officers to whom weapons are surrendered, except
upon the certificate of a judge of a court of record, or the
distt'ict attorney of the county, that the retention thereof
is necessary or proper to the ends of justice, may annually,
between the 1st and 10th days of July, in each year, offer
the weapons, which the officers in charge of them consider to
have value with respect to sporting, recreational, or
collection purposes, for sale at public auction to persons
licensed pursuant to section 12071 to engage in belsinesses
involving any weapon purchased. If any weapon has been
st 0 1 en and is thereaft er recovered from the th i ef or his or
het' tt'ansferee, or is lJsed in such a manner as to const it ut e
a nuisance pursuant to selbdivision (a) or (b) wlthout the
prior knowledge of its lawful owner that it would be so used,
it shall not be so offered for sale but shall be restored to
the lawful owner, as soon as its use as ev idence has been
set'ved, upon his or her identification of the weapon and
proof of ownership.
(d) If, under this section, a weapon is not of the type
that can be sold to the publ ic, generall y, or is not so ld
put'suant to subdivision (c) the weapon shall, in the month of
Jelly, next succeeding, or sooner, if necessary to conserve
local resources including space and utilization of personnel
who maintain files and security of those weapons, be
destroyed so that it can no longer be used as such weapon
except upon the certificate of a judge of a court of record,
or of the district attorney of the county, that the retention
of it is necessary or proper to the ends of justice.
(e) This section does not apply to any firearm in the
possession of the Department of Fish and Game or which was
used in the violation of any provision of law in the Fish and
Game Code or any regulat i on adopt ed pursuant theret 0, or
which is forfeited pursuant to Section 5008. e, of the Pllblic
ResolJt'ces Code.
(f) No stolen weapon shall be sold or destroyed
purslJant to subdivisions (c) or (d) unless reasonable notice
is given to its lawful owner, if his or her identity and
address can be reasonably ascertained.
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Section 12032 PC covers the situation in which a firearm
has been introduced into evidence as an exhibit in criminal
case, and held by the court after the case has been
concluded. This section provides for the sale of or
destruction pursuant to S12028. Any weapon in the custody of
the court after being admitted a an exhibit, would require a
cou"t order to release it to the sheriff for its sale or
destruction~ Sometimes exhibits are released back to the law
enforcement agency for it retention. This usually occurs in
cases which the court is not equipped to store these weapons.
If this occurs, it must be in possession of the law
enforcement officer for at least 180 days, before it can be
sold or destroyed.
The following is Section 12032 in its entirety;
"SS12032--Destruction of firearms otherwise subject to
sale as abandoned, etc., property.
Notwithstanding any provision of law or of any local
o,'dinance to the cont,'ary, when any fir'ea"M is in the
possession of any officer of the state, or of a county, city
and county or city, and such firearm is an exhibit filed in
any criminal action or proceeding which is no longer needed
0" is unclaimed or abandoned property, which has been in the
possession of the officer for at least 180 days, the firearm
shall be so Id, or destroyed, as prov ided for inSect ion
12028.
This
section shall not apply to any firearm in the
of the Department of Fish and Game or which was
violation of any provision of law, or regulation
in the Fish and Game Code." lEnd of S12032 PC)
possession
'.\sed in the
there'~nder,
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CONSIGNOR QUALIFICATIONS
Sale is held strictly to City and County entities or
municipalities.
Prepare itemized list of firearms and serial numbers,
corresponding item numbers must be on each weapon.
Set appointment with E}'nst & Associates to pick up and
transpo}.t property, for every unit consigned must be checked
for proper presentation to Licensed Dealers.
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MARKET ANALYSIS
It is much to our pleasure that our Company, after
segmenting and analyzing the market place for this particular
product that all results are positive. The response from the
highly specialized consumers for this product has been
astronomical. With direct communication our company will
pt'ovide for its consignors the finest marketability concept
feasible.
This concept will attract all possible consumer's
for consignors product in one place to be sold by competitive
bidding at one time. End result MORE NET DOLLARS.
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PROTECTION OF FIREARMS AT SITE OF DISPERSAL
Security for Dispersal (Auction) Site for all weapons
will be provided by Ernst & Associates Auctioneers, working
directly with and fulfilling all requests of Department of
Treasury-Alcohol, Tobacco and Firearms Division.
SALE SITE
Sale to be conducted at the Modesto Centre Plaza,
1000 "L" Str-eet, Modesto, CA on Wednesday, July 1st, 1992,
9:00 a. m.
INSURANCE
Each consigning agency will receive a Certificate of
Liability Insurance for $1,000,000.00 from Ernst & Associates
nail i ng Agency addi t i onall y i nsu,-ed for any auct i on re lat ed
business.
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