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HomeMy WebLinkAbout32-Police Department . dtv OF SAN BERNAR'-'O Eauay FOR COUNCIL Ac4IoN From: ttept: Daniel A. Robbins Chief of Police Police Subject: Sell ing Seized Vehicles and Firearms Date: 10-31-89 Synopsis of Previous Council action: None Recommended motion: . Adoptresolution. -, / ,,.' / ' , . , " .:" :.'.'........-- .....,-" ._-~J i ~, Signature Contact person: Captain Larry Richards ~ " '. Phone: 384-5604 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: None Source: Finance: .ouncil Notes: 75-0262 Agenda Item No.-3 a'J ~ . C.V OF SAN BERNARE:AO - REQU.T FOR COUNCIL Ac4toN . STAFF REPORT PROBLEM Presently when the San Bernardino Police Department Narcotics Unit seizes a vehicle under the asset forfeiture program, the vehicle is placed in storage until it is awarded to the department, then the vehicle is sold. A vehicle can be kept in storage for a period of months to years. Presently, the storage fees are costing the city approximately $1300 to $1500 a month from the asset forfeiture fund. RECOMMENDATIONS 1 recommend that the city contract with Roger Ernst and Associates, Modesto, California, to store and sell our asset seized vehicles and firearms. This will save approximately $16,800 a year in storage fees. The contract needs to be reviewed by the City Attorney after which the proposal will be placed on the City Council Agenda for approval. FINDINGS . The San Bernardino Pol ice Department received approval to have Nationwide Auction, City of Industry, to sell our seized vehlcles. Nationwide Auction charges 10 percent of the selling price plus $55 per vehicle for transporting it to the auction site and preparation of the vehicle for sale. Nationwide Auction doesn't store the vehicle pending the vehicle being awarded to the department. The vehicle is kept in locked storage and the storage fee is paid out of the asset forfeiture fund. . Vehicles can be kept stored for over a year pending the court action. The department is presently using a privately owned storage facil ity at a cost ranging from $1300 to $1500 per month depending on the number of vehicles being held. Roger Ernst and Associates, P. O. Box 3251, Modesto, California 95353, 209/527 -7399, is an auction company bei ng used by many law enforcement agencies to sell seized vehicles and firearms. They also charge ten percent of the selling price of a vehicle, however, there is no charge for transporting or preparing the vehicle for sale. They will also store the vehicle at no cost. Once a vehicle is seized and they are. notified, the vehicle will be picked and transported to their facil ity. If the vehicle has to be returned to the owner, they will transport the vehicle back within three days. The storing and transporting of the vehicle will be done at no co~toto the agency and they will assume all liability for safeguarding the vehitle. There are numerous law enforcement agencies presently using Roger Ernst and Associates. Contact was made with Corona and Irvine Police Departments and Riverside Sheriff's Department who are using Roger Ernst and Associates. They highly praised them as a professional organization. Roger Ernst and Associates will also modify their contract where it would be mutually acceptable to our city and them. .0 75-0264 . cttv OF SAN BERNARIAIO - REQl6T FOR. COUNCIL A~ON . STAFF REPORT I reconunend that we change from Nat i onwi de Auct i on to Roger Ernst and Associates to store and sell seized vehicles and firearms. This will save approximately $16,800 a year in storage fees. ATTACHMENTS 1. Roger Ernst and Associates sample contract. 2. Sample certificate of insurance. . r-:.---- ."- .:.:--.-?,- :-~r . - . . 75-0264 . . . . ROGER . ~ ERNST & ASSOCIATES · AUCTIONEERS ~SSET ~~E~~~~RE ~'ROPERT" ,. c. l;;URRENT AUENC( l. I':'B' L. 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F;'~--::d..I!... 1 :~H'-' 1 r,j (.:::~~-,,-= ': Ld'- Ht~INDL 1: r..lCi (.V.F) :::;':'::!nES Ct.] i~L!._ I rr:::'i"!-3 " .~:;j...;C;.,:lM:O ,::.J\;'" (,C)E'i'--!i~"'( ;:~ i::::~:L. ""!-H!. '_:; ~3D!~~L. I ~:;. !'.\IJ T ~CH-::t:;)E2) -..ir:'j:;';:' ~.iT:.L H~' t.IJ ;~:HA1-:;'GE F~OF: '::E~~"',/[C-f~"~~; . . . I"OI~.~..' PRCDUCEA . CERTlRCATE O.SURANCEe ISSUE DATE 1M"''' 12-08-r CLARK & CLARK INSURANCE P.O. BOX 905 . MOOETO. CA 95353 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND. EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW COMPANIES AFFORDING COVERAGE COOE COMPANY A LfTTER CHARTER OAK FIRE INSURANCE COMPANY SU..cooE IHSUIlED COMPANY B LETTER TRAVELERS.J~DEMNJTY COMPANY TRAVELERS INSURANCE COMPANY ROGER ERNST & ASSOC. P.O. BOX 3251 MODESTO, CA 95353 COMPANY C L.ETTER COMPANY 0 LETTER COMPANY E L.ETTER ..-,;;~',-""""._,- . _.....~...;.i~~~...~ .,.;,_..~..:.~c.i'-...,....,&..:,~~<~;2,_-;,';:'~~"i.....",.~..... '~iY~~ ~t~-:;;,~....... . THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POliCY 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, EXClUSI~.NS .A.N.D CONDITIONS OF SUCH.."Ol!CIES LIMITS SHOWN MAY HAVE BESN.!l.eDUC.~1l BY PAIt>. CLA!~Sc.... .....__. .._. . co TR TYN Of INSURANCE .-oLley NUMBER POLICY !FFECTIVE POLICY EX"'AA11OtI DATE (MM/DD/YY) DATE (MMIDDIYV) AU UIIITS IN THOUSANDS GENERAL LIABILITY A X COMMERCiAl GENERAL L1ABIL.ITY CLAIM' MADE X OCCUR. 660-903F292-7 -COF -88 08-21-88 GENERAl AGGREGATE _..' 500 . PRODUCT":CQMPIOP' AGGREGATE.' .500 08-21-89 .!~RSON.AL' AD~ERT~~ING INJURY_.! .500 EACH OCCURRENCE . . 500 ..!IRE DAMAGE (Anyone fire) . 50 .-_ ___ .__ MEDICAL ~ENSE (~"1 OM_ ~'~5 COMBINED I ~~~LE ... ~.?.oO . ---1 08-21-89 BODILY ! INJURY . _ (Per 1MI~1 BODILY INJURY I . (Pet:..ccident) , -...-----.- OWNER'S & CONTRACTOR'S PROTo AUTOM08ILE UA_LITY ANY AUTO X AU. OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NO~ED AUTOS GARAGE LIABILITY 660-903F2927-COF-88 08-21-88 PROPERTY I DAMAGE EXCESS UAalLfTY , i f EACH AGGREGATE OCCURRENCE . . OTHER THAN UMBRELlA FOAM C WOMER'S COMNNSA11ON AND EMPLOYERS'LlABlLITY STATUTORY UB-903F291-5-88 08-21-88 08-21-89 . 2000 . . 2000 . .2000 (EACH ACCIDENT) (DISEASE-POltcY L1Mrn (DISEASE-EACH EMPLOYE OTHER DESCRIP110H Of OPERA11ONSlLOCATIONSNEHICLES/MSnaCTIONSlSPEClAL rTElIS -,,:. ~I.ACATE HOLDER ~ .:, . ;~\~ -,ok. . . CAIiII"CI t A.11QN .:::.-~ . .::-- F SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCelLED BEFORE THE t EXPIRATION DATE THEREOF, THE ISSUING COMPANY Will JlM-.wJ~XJIIX MAil ~ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, ~~X1lQ(QI(~"l(llQal8tlUll.XlMl'.Ol"JelOX~OIX<B ~1WON(~l(ill(')l~lIKlW',IIl&ll~K4lIX CALIFORNIA LAW ENFORSEMENT AGENCIES ~08ES~8~ eA5195353 .........-..-...,.- "-oltO~~..:-....... ~.;_.~. AUTItONZID IllEPMIllfTATM . . . . . . . 1 RESOLUTION NO. 2 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. 3 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 5 OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The Mayor is hereby authorized and directed to 7 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 10 agreement is attached hereto, marked Exhibit "A", and 11 incorporated herein by reference as fully as though set forth at 12 length. 13 SECTION 2. The authorization to execute the above- 14 referenced agreement is rescinded if the parties to the 15 agreement fail to execute it within sixty (60) days of the 16 passage of this resolution. 17 I HEREBY CERTIFY that the foregoing resolution was duly 18 adopted by the Mayor and Common Council of the City of San 19 Bernardino at a meeting thereof, held on the 21 20 day of , 1989, by the following vote, to wit: 22 23 24 25 26 27 28 Council Members: AYES NAYS ABSTAIN ESTRADA REILLY FLORES MAUDSLEY MINOR POPE-LUDLAM MILLER ..~- City Clerk HE/dys December 8, 1989 1 . . . . 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . . . 1 RESOLUTION...AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH ROGER ERNST & ASSOCIATES, AUCTIONEERS TO STORE AND SELL SEIZED VEHICLES, PERSONAL AND REAL PROPERTY, AND FIREARMS. 2 3 4 5 The foregoing resolution is hereby approved this day of , 1989. 6 W. R. Holcomb, Mayor 7 Ci ty of San Bernardino 8 Approved as to form and legal content: JAMES F. PENMAN, City Attorney I': 1 () By: ~/v"'U> . , r ~ o HE/dys December 8, 1989 2 . . . . . AGREEMENT This AGREEMENT is made and entered into on , 1989, between the City of San Bernardino, a Municipal-Corporation of the State of California, hereinafter referred to as "City", and Roger Ernst & 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 on 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 demonstrat~d 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 HE/dys December 8, 1989 1 . . . . . representative in the interpretation and enforcement of all work 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 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. City agrees to transfer possession of said property to Auctioneer subject to the following conditions: a. Auctioneer shall"oe 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. . / / / / HE/dys December 8, 1989 2 . . . . . b. Auctioneer shall Auctioneer's storage facility. for said storage. provide secure storage at Auctioneer shall bear all costs 4. REPAIRS AND MAINTENANCE: Ci ty 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 magistrate. . 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 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 HE/dys December 8, 1989 3 . . . . . advertising, including but not limited to, newspaper advertising, direct mail, and flyer, and shall give a minimum of five 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 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 the minimum sales price, less commission, prior to the sale. 9. INSPECTION STATEMENT OF RELIANCE: Auctioneer shall require 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, within a reasonable time after the City requests 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 S100,000. 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 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 HE/dys December 8, 1989 4 . . . . . 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. 12. SERVICES PROVIDED IN CONNECTION WITH SALE OF REAL ESTATE OF 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 the 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 45 days prior to sale at auction and have a least one advertised open house where prospective bidders may HE/dys December 8, 1989 5 . . . . . 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. 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 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 cancelled 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 HE/dys December 8, 1989 6 . . . . . 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 not less than the following amount: General Liability Combined Single Limit per Occurrence General Aggregate Automobile Liability $1,000,000 $1,000,000 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 officers, 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 from 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. . / / / / HE/dys December 8, 1989 7 . . . . . 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. 19. NOTICES: Notices and written other shall be personally prepaid, to the fOllowing communications sent by one party to the delivered or sent by U.S. Mail, postage addresses: City: Auctioneer: City of San Bernardino Chief of Police 466 West 4th Street San Bernardino, CA 92401 Roger Ernst & Associates P.O. Box 2151 Modesto, CA. 95353 20. TERM OF AGREEMENT: . This Agreement shall remain in effect until December 31, 1991, 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 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 Ernst & 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, HE/dys December 8, 1989 8 . . . . . 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 Agreement the date and year first written above. Attest: CITY OF SAN BERNARDINO, a Municipal corporation of the State of California City Clerk By: W. R. Holcomb, Mayor ROGER ERNST & ASSOCIATES . Dated By: ROGER ERNST, President Approved as to form and legal content: JAMES F. PENMAN, City Attorney I) J By: */~ J .//~^""- {/ .~~'. . HE/dys December 8, 1989 9