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HomeMy WebLinkAbout21-Police Department - 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. ~~4!J! Conuctperson: r.t- n""" !';n"ll Phone: 384-5655 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: Nnnp Source: Finance: - Council Notes: ^.............I... I.......... P\I^ ~I '~ gt . - 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. "I'o;_n~U:.4 , .' . , 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o 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 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / RJM:ms[ernst.res] 1 ~c.:,.".>:.;."",,_ L, . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o 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] 2 , o o 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 1 - , o o 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 2 . o o 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 3 . o o. 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. 4 . o o 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. 5 o o 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 o o 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. 7 . o o 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 o o 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~ (J 9 ] - 3'/-9- . . .::; ~",;;'" .' ,,.,..,.,.,..,..,.,..-"""""'-'" ;#&i:~:t~;:W{_t.%;~"4: .<<.~....,,~.m. 'T~~t.'>.~I~' tllI1I1r'!il PRODUCER tlfrMi#!f4if4:.'Mi15>'a~' ~ >W1ii'*~WWit@I'^f".&', <~"*!.'i; .'.," (@rnmml '4 1'"c<mrnt? ' '( I'!UU l!ll '., ~ ~~~tiifj\kl:~ , ~jit ~~~:~~",i;qtfil~~ "'. r" J?l"'~. M "/7.$ ",;.;~pl~7. "'~-:;'...:::'";-'::':=: -::~ . ':~? S~= ,.,;:'''~l':...}',~:&/:; v~::-_~~~:r::"'mx.::x.:::ft\~;:::'1K$;;_~* :x~.;.~~~~ ~9.q~,s"", >>x~.........":-:...:-:,,>,.,,, ...,,~ <,w....... 0':',.......'l<O;O;'hV.<<...d~~.". . .;-:.:.:-...,.,.,.,>>>;.:-., ...:<<>: ............... 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. ... '-'::;::~~':0:.;.;::::';;:;:;;m)m~y;:;:.:mm::;'::;',:-:':';';,':';':':-:';';':';':-: 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.) ..................... ..................... ..................... ..................... ..................... ..................... ..................... .................... ..................... .................... 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 ..................... ..................... ..................... ..................... ..................... ..................... .................... ..... .......... .................... ..................... .................... ..................... .......... ...... 8/21/91 AGGREGATE 5000 D WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY 1IP9148650903 8/21/91 8/21/92 ............................ ....................... ............................ ................................. ................................. (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. AUTHORIFe.Bf,B,gJIIl'A IVE I ./' :"':;'-::;:"~ BY,,"- . '.';',~ ,.. !"~-i ,/ .' .. - -" .'~ "'......~..::"~ I ~ ^,,{\.;:^: ~~: ., :.~~: .'./1, .D.L.MJ.LL!L.. .u !)]LL.J;M _~...........w.w.w..-'--w...v.............".W.,.':.:.:.:0':ol-;.:.:.;>>>>_~~>>.:::x:<::::::::>>w-~~.::!"&~ . ( l o 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. ., CG 20 10 11 85 Copyright, Insurance ~ervices Office, Inc., 1984 c o o 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 '''';,--,....-.-..,,-.., o o 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. 3 -~ o o 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.). 4 ,._<_w~<~~_ - o o 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. 5 ---. " o o (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. I'. o o 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, 7 .. o o 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. a - Lb. M o o 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. ') ~ J. , o o 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. 10