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Home My WebLink About09/12/1991 B A K E R S F I E L D Kevin McDermott, Chair Patricia J. DeMond Ken Peterson .Staff: John W. Stinson AGENDA BUDGET AND FINANCE COMMITTEE MEETING Thursday, September 12 1991 12:00 Noon City Manager's Conference Room 1. Redevelopment real estate holdings (Dale Hawley) 2. Bakersfield Landfill gas electrical generation facility (Paul Dow) 3. Funds for demolition of dangerous buildings (Dale Hawley) 4. Review of cost impact on future budgets of Fire Department defib'rilation program (Steve Johnson) 5. Request for proposal for auction services (Gil Rojas) 6. Set next meeting date DEVELOPMENT COMMITTEE REPORT NO. 91-5 AUGUST 19, 1991 TO: CENTRAL DISTRICT DEVELOPMENT AGENCY' ' ' .......... SUBJECT: FORMER AMERICAN NATIONAL BANK BUrLDING On August ?, 1991 the Development Committee met to discuss a proposal from M.D. A,k~n~on.Company to purchase the Agency-owned property at 1325 19th Street, previously American National B~Bk!s corporate offices. Atkinson proposed to level the build~,~g and provide surface par~d~g .for the. nearby Kress Building, which Atkinson owns. In exchange, the Agency would receive ~h .and title to a nearby surface par~,,g lot owned by the company. Atkinson has indicated to st~r~ that the offer made was *.he companyts best offer. Despite b~_~g$b,~w best offer, the propo., sed purchase price is less than the value indicated in a letter appr~.~l dated June 7, 1991 from DA1]~ Higdon and Asso~stes *.he City recently co~m~.~sioned. On July 15, the Agency directed staff to market Agency-owned property for ninety days. Upon further review, the Development Committee is concerned that such action may a~ually impede the Agency's goals of revitalizing downtown. In the ~tn~ce of the American Nal~onal Bn~( building, the Development COmmitTee recognizes the need for additional parking for the Kress Building. However, should a private parry purchase the site, there is no g~m~antee that parking would be the ult~mmte use of the property, thus further inhibiting the long-term viability of the Kress Building, or any other ne9~'by property, to provide parking and attract additional tenants and customers to the area. The committee reviewed all options which would promote addition"l parking in the area, while not crealing any additional monetary obligations to the Agency. The option which the committee considered most effective was to approach the City of Bakersfield to purcb-~e.~theproperty.for..the appr-i=ed .price,.which...~ exceeds the Atl~ns°n proposal. The City could use the Off-Street Parking Lot Fund to pur~b~e the property,, level the b,,ildi,,g, and 'provide surd-me parianE. Spaces could be leased to the Kress Building and any other interested user. Besides 'provimng paring, the Agency would -~o re-_ ~i~.e an infusion of · revenue should the City purchase the property. Should a future project require a large section of ~-Bd, the City would ret,i~ control of th~ site .for possible use. Because of these many factors, the Development Committee recommends that the _agency: Reject the offer made by M.D. Atk~nson Company; 2. Withdraw the action it took July 15, 1991 to m-~ket the properties held.by ~ Agency; 3. .Offer to sell A~ency-owned properties to 'the City of Bakersfield for their off-street parl~g pro~m. Respectfully submi~ed, 'W'illism Payn%er, Ch~ Herman Ruddell · lVlel Rubin CENTRAL DISTRICT DEVELOPMENT .AGENCY Unsolicited Letter Offer Appraisal 8/1/91. 6/7/91 ~ $10.00 Sq. Ft. ~ $11.50 Sq. Ft. Valuation - Land only $ 228,690 $ 261,000 SEC - 19th/"K" (C-2) Building Demolition Estimate* ( 110,000)* ( 125,000) Net Land Value $ 118,690 $ 136,000 Property Exchange SEC-20th/"K" @ $7.50 SQ. FT.(C-0,C-1) ( 57,173)** N/A Net Cash To Agency $ 61,51'7 $ 136,000 *This building, formerly the American National Bank Corporate Office, is on the UnreinfOrced Masonry Building List and has been assigned no value for this comparative analysis. **Acquired January 1990 for $53,000 Buyer to acquire and approve an environmental study and if CDDA is unwilling or unable to remove any disapproved condition or City disapproves Buyer's parking lot plans, purchase may be canceled by buyer CDDA to reimburse Buyer for the environmental study. Letter Appraisal provided by Dallis Higdon & Associates. krc GJK.2 8/14/91 MEMORANDUM CITY OF BAKERSFIELD DEPARTMENT OF WATER & SANITATION Sanitation Division August 19, 1991 To: J. Dale HaWley, City Manager Prom:~ Paul Dow, Water & Sanitation Manager By: ~.~,Mike Sides, Sanitation Superintendent Subject: Bakersfield Landfill Gas Electrical Generation Facility Update This memorandum is an update of the previous memorandum (copy attached) dated June 18, 1991 regarding the Bakersfield Sanitary Landfill. Pacific Energy is in the process of dismantling the gas recovery engine at the subject landfill, and the landfill gas flare is now operating on a continuous basis. Our attempts to secure another contractor/firm to "handle" the landfill gas situation have not been successful. The only alternative available at the present time is being provided by Pacific Energy;' a · smaller landfill gas engine is available from another project for installation at the City landfill. Costs for acquisition, installation, and "running" the facility have been estimated by Pacific Energy to be $600,000. Please find attached two alternatives; only one has a project ~ncome statement. The income from an 'engine installation would appear to offset a majority of the cost. Initial financing is an issue, and this matter is provided for your review. Because time is of the essence in this matter, a meeting with representatives from Finance, Public- Works, Water & Sanitation., and the Managers Office is necessary with referral to the budget and finance committee at the earliest possible date recommended. MEMORANDUM June 18, 1991 TO: J. Dale Hawley, City Manager FROM: Paul Dow, Water and Sanitation Manager ~ BY: Mike Sides, Sanitation Superintendent SUBJECT: BAKERSFIELD LANDFILL GAS ELECTRICAL GENERATION FACILITY The Bakersfield Landfill remains a problem in terms of legal closure and the generation of methane gas. The contractor, Pacific Energy, has indicated for several months the likelihood of closing the gas recovery facility at the Bakersfield Landfill. In a letter dated June 7, 1991, Pacific Energy formally notified the City of their intention to cease operations of the Bakersfield Landfill Gas Electrical Generation Facility;· current plans for closure and dismantling of the gas plant are scheduled for early July, 1991 (see attached copy of Pacific Energy letter). While the City is actively searching for another contractor, gas control procedures must be maintained. As a result, the City is faced with the immediate "flaring" of the gas, as was done prior to the installation of the gas facility. A problem results in that the existing flare is permitted by Kern County Air Polution Control for "intermittent" use onlY; the City must now arrange for the purchase and installation of another engine or an approved flare to maintain full time gas control. This issue was discussed during the budget workshop on June 4, 1991, but at this time, no funds are being requested because we are not sure as to the method or the cost to remedy the situation. The cos~ could be from "no cost" (if we can procure a contractor willing to take over the present opera~ion), to $500,000 if we are required topurchase and install another engine. This memo is to advise you and the councilmembers we may need to ask the council for an additional appropriation in the future to cover these costs. There is $250,000 budgeted for the initial closure phase of the Bakersfield Landfill and some of those funds could be used for this purpose. We will keep you informed as this situation develops. PD/MS:sr cc: Honorable Mayor and Councilmembers Ed Schulz, Public Works Director Larry Jamison~e~era~Se~ices~S,upe~i~e~n~~?~.~:. Attachment MEMORANDUM TO: Dale Hawley, City Manager FROM: Calvin Bidwell, Building Director DATE: August 16, 1991 SUBJECT: Code Enforcement/Funding Constraints As you know the budget for the current fiscal year was finalized after careful prioritizing of expected and desired service levels from all departments. One service level reduction in the Building Department occurred in the area of code enforcement. This service encompasses demolition of substandard and .dangerous buildings, property'maintenance, litter and abandoned vehicle removal, among' other activities. The approved funding will significantly curtail our activity in this service area. Similarly, limited Fire Department funding will not allow them to provide the level of service necessary to eliminate all of the hazardous growth of weeds and grass at various locations in the City. The City attorney has added a staff person to assist the Building and Fire Departments in code enforcement matters. With this assistance we intended to-improve.if not expand our efforts in code enforcement. (The City Council probably.expected this to occur). However, our current limited funding will not permit this to be realized. If you concur, I suggest this matter be'referred to the appropriate Council Committee for consideration. £ast (£i3] 725-Ii3~ Washington Bou~evars. Commerce Calfiorn~a PACIFIC Facs;m~Je ENTErPrISES (2J3] 725.8772 June 7, 1991 Mr. Mike Sides Sanitation Superintendent city of Bakersfield 4101 Truxtun Avenue Bakersfield, California 93301 Dear Mike: SUBJECT: Pacific Energy's Operation of the Bakersfield Landfill Gas Electrical Generation Facility This letter will serve to confirm Pacific Energy's intention of ceasing operations of the Bakersfield Landfill Gas Electrical Generation Facility. As we informed you at our May 2, 1991 meeting, the current plans for the Facility anticipate closure and dismantling in early July of this year. It will therefore be necessary to make preparations to operate the existing flare until the City decides what course of action it wishes to take. Furthermore, at the May 2 meeting we discussed the possibility of the City purchasing an engine generator of its own, thereby deriving revenue and defraying the cost of installing and maintaining a full time ~lare. We are still collecting information which will be relevant in the city's decision process and will submit a more detailed proposal as. soon as it is complete. Please feel free to contact Frank Wong or myself if there are any questions you would like answered. Sincerely, George E. Donlou Manager of Biogas Business Administration BAKERSFIELD SIX-CYLINDER ENGINE ANALYSIS PRO2ECTED INCOME STATEMENT DESCRIPTIDN 1992 1993 1994 1995 1996 TOTAL REVENUES $322.000 338.000 359,000 380,000 402.'000 1.801.OOC OPERATING EXPENSES: Price Der MMBTU 0.50 0.60 0.75 0.85 1.00 Cost of Sales 25.200 29.460 35.925 39.895 45.500 17S,780 ODeratlng & Maintenance 175,000 185.500 196~525 208.101 220,256 985.383 Transmission Fees 4.000 4,000 4,000 4.000' 4,000 20,000 Insurance ? ~ ? ~ ~ 0 General & Aomin 10,000 11.000 11.000 12.000 12.000 56.000 OPERATING INCOME 107,800 108.040 111,550 116.204 120.2~ 583.837 Ca~izal Exmenditures 26.000 27.000 28,000 30.000 31.000 142.000 Cash Flow Before lax $81.800 8!.040 83.550 86.204 89,2~ 42i.837 ========== ========= ========= =~======= ========= ========== cAPITAL EXPENDITURES: PEn Emuimment $$0.000 New EaulDment 50.000 Relocation & Installation Contingent>, .......... 100,000 $562,000 Non-Discounted Cash Flow Over a 5 Year Pemod ($140.153) NOTES: !) Analysis soes nc~ consioer A82588 costs. 2) Permi~ Costs' no~ea above Oo not inciuoe cost of obtaining air offsets BAKERSFIELD FLARE ANALYSIS DESCRIPTION 1992 1993 1994 1995 !996 TOTAL ESITMATED OPERATING COSTS FLARE OPERATING COSTS: Operation & Maintenance $17,000 17,850 18,743 19,680 20,664 93,936 Annual Inspection 2,000 2,100 2,205 2,315 2,431 11,051 Record Keeping/Reoorts 3,0OD 3,150 3,308 3,473 3,647 16,577 Eoucation/Training 2,000 0 0 0 0 2,000 Miscellaneous 5,000 5,250 5,513 5,788 6,078 27,62B Insurance ~ ? ? ~ ~ 0 General & AOministration 2,000 2,100 2,205 2,315 2,431 1!,051 Start UD 5,000 0 0 0 0 5,000' 36,000 30,450 3!,973 33,571 35,250 167.243 FIELD OPERATING COSTS: SO,ODO 52,500 55,125 57,881 60,775 229',500 TOTAL OPERATING COST $86,000 82,950 87,098 91.452 96,025 396,74~ ========== ========= ========= ========= ========= CAPITAL EXPENDITURES: Estimated Range of Cos~ $!50.000 - $250.000 Average Co~t $200,000 Non-Discounted Cash Flow Over a 5 Year Period ($596,743) NOTES: ...... . 1) Analysis Ooes not consioer AB2588 costs. 2) CCs: to permit flare and oD~ain air offsets not incluOed in aDove anaiys~s. 'MEMORANDUM SEPTEMBER 9, 1991 TO: JOHN STINSON, ASSISTANT TO THE CITY MANAGER FROM: GIL ROJAS, ASSISTANT FINANCE DIRECTOR~ SUBJECT: REQUEST FOR PROPOSALS FOR AUCTION SERVICES & As directed by the City Council, I have prepared a Request for Proposal for Auction Services for Police Seized Asset Forfeiture property. The bidders list will be established by the following procedure: 1. Contact other Cities that use auctioneers for Asset Forfeiture Property. 2. Advertise in the Bakersfield Californian (3 days). 3. Send proposals to current auctioneer (Roger Ernst & Associates) and previous auctioneer (Ed Rodger Enterprises). 4. Survey Los Angeles Times for advertisement of similar auctions. Please review this proposal and if it is acceptable have the Budget and Finance Committee review the material. krc MGR.27 LIST OF POTENTIAL BIDDERS Mr. Ken Porter 813 Garden Street Santa Barbara, CA 93101 (805) 966-0017 Nationwide PO Box 2447 City of Industry, CA 91746 ATTN: Armando Camarena (818) 968-3110 Roger Ernst & Assoc. PO Box 3251 MOdesto, CA 95353 (209) 527-7399 Ed Rodgers Enterprises 1201 24th Street Bakersfield, CA 93301 United Auctions 2066 W. Foothill Blvd. Upland, CA 91786 (714) 946-3386 GR. 4 BAKERSFIELD Dear Potential Bidder: Enclosed is a Request for Proposal to provide auction services for Police Seized Asset Forfeiture Property (personal property only). The proposal request two (2) separate bids: 1. An Exclusive Agreement to provide Police Seized Asset auction services, or; 2. An Non-exclusive Agreement to share auction services with one or more auctioneers. Under either agreement the Bakersfield Police Department reserves the right to keep certain seized property for law enforcement use. The proposal includes the following sections: 1. General information regarding the proposal. 2. Bid format (Appendix A) 3. 1990 Assets Seized (Appendix B) 4. Proposed Auction Service Contract (Appendix C) All bids must be returned to the City of Bakersfield by 5:00 p.m. on Monday, September 30, 1991. Any questions regarding the proposal should be directed to Gilbert Rojas, Assistant Finance Director, (805) 326-3740. City of Bakersfield · Finance Department · 1501 Truxtun Avenue Bakersfield · California · 93301 DRAFT CITY OF BAKERSFIELD REQUEST FOR PROPOSALS AUCTION SERVICES (POLICE SEIZED ASSET FORFEITURE PROPERTY) I. Introduction A. General Information The City of Bakersfield requires the services of an Auctioneer to conduct the sale of vehicles or other personal property which are the product of an asset seizure by the Bakersfield Police Department. To be considered a valid proposal, eight (8) copies of the proposal must be received by Darlene Wisham, Purchasing Division at 1501 Truxtun Avenue, Bakersfield, CA 93301 by 5:00 p.m. on Monday, September 30, 1991. Summary of proposal must follow format provided in Appendix A. The City of Bakersfield reserves the right to reject any i' or all proposals submitted. Proposals submitted will be evaluated by i City staff with recommendation to the City Council. I During the evaluation process, the City of Bakersfield reserves the ' right, when it may serve the City of Bakersfield's best interest to , request additional information or clarification from proposers. .Submission of a proposal indicates acceptance by the firm of the conditions contained in this Request for Proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Bakersfield and the firm selected. . B. Term of Engagement A two (2) year commitment is contemplated, subject to the annual review and recommendation of City staff. If the City staff does not recommend renewing the contract on the anniversary date of the contract, the City may give a thirty (30) day cancellation notice. II. Nature of Services Required A. General The City of Bakersfield is soliciting the service of a qualified licensed and bonded Auctioneer for the purpose of storing and conducting public auction of police seized asset forfeiture property which includes storing such assets until it is released for auCtion by the Bakersfield Police Department. The City is requesting separate quotes on a Exclusive AuctiOn Agreement and (Alternate A) a Non- Exclusive Auction Agreement. Both quotes are for police seized asset forfeiture vehicles and other personal property only. B. Scope of Work To Be Performed The City of Bakersfield desires the Auctioneer to: 1. Conduct the auction and provide all necessary personnel and equipment needed to conduct auction. 2. Provide the City a complete itemized record of all property sold, the amount of each sale, and the Transfer of Certificate of OwnershiP. 3. Transport, store, and properly care for and maintain all seized property that is turned over to Auctioneer by the Bakersfield Police Department. Auctioneer will store all seized property. including property not yet released for auction. 4. Collect all monies due from sale of each item or lot plus any applicable sales tax. 5. Pay the City the total sum less commission within fifteen (15) days of the auction. All sales tax collected shall be paid by Auctioneer directly to the State of California. 6. Obtain Buyer's signature on a "Notice of Transfer Owner's Interest in and Possession of Motor Vehicle" (Reg. 138), and any other signature required by law for vehicle transfers. Also complete and submit all necessary transfer or recording documents to transfer firearms. The originals of said notices and documents shall be submitted to the City. 7. In the event seized vehicles are ordered returned to the registered or legal owner by a Court of Jurisdiction or the ........... ~P~o. lice~ D~epartment ete.cts not to pursue forfeiture, Auctioneer agrees to collect all storage fees from the registered or legal owner. -2- 8. Auctioneer shall, at his expense, give notice of auction and the property being sold by display advertising. Advertising shall include a condition of this auction that neither City nor Auctioneer makes any guarantee or warranty of any kind or nature express or implied as to the condition of materials, articles, vehicle or other items offered for sale. C. Insurance During the term of this Agreement, Auctioneer shall maintain a single limit broad form commercial general liability insurance policy in an amount of not less than $1,000,000 per occurrence with combined liability for personal injury, property damage and automobile liability with reliable insurance carrier authorized to do business in the State of California and statutory workmen's compensation coverage. Said policy or policies of insurance shall expressly name the City and its agents, officers, and employees as additional insureds. Said insurance shall not be subject to cancellation, non-renewal, or coverage reduction without thirty (30) days written notice to City. Auctioneer shall, provide to the City proof of insurance endorsements and certificates of insurance prior to execution of this Agreement. D. Indemnity Auctioneer shall indemnify, defend, and hold harmless City, its officers, agents and employees against any and all liability, claims, actions, causes of auction demands whatsoever against them or any of them, for injury to or death of persons or damage to property arising out of, connected with, or caused by Auctioneer, Auctioneer's employees, agents, or independent contractors or companies in the performance of, or in any way arising from, the terms and provisions.. E. Contract A proposed sample contract is provided in Appendix C. F. Submittal 'of Bid All bids should include a summary listing of bid (example given in Appendix A) as well as any other pertinent material. Three references for which you provided auctioneer services (seized property auction preferred) .in 1990 or 1991 should be included in your bid. -3- III. Description of the Government The City of Bakersfield serves an area of ninety (90) square miles with a population of 180,000. The Bakersfield Police Department is made up of 333 employees of which 242 are sworn officers. ' Asset forfeiture property is not usually available for auCtion within a short period of time. All property must be assigned to the law enforcement agency by the court and this is usually accomplished after the case has been adjudicated. Property may be returned to the individual from which property is seized or to the Bakersfield Police Department for use by the law enforcement agency. It is estimated that approximately $10,000 worth of property will be auCtioned in a years time. An estimate of seized property accumulated in calendar year 1990 is listed in Appendix B. Highlighted items have actually been sold at auction. krc PROP. 1 -4- Auctioneer license number Alternate A Exclusive Non-Exclusive Commission: Vehicles % % Fire Arms % % Jewelry % % Other (specify) % % % % % % Fees: TransPortation: Storage: Auctioned vehicle Unauctioned vehicle returned to City (If applicable include tow fees) Unauctioned Vehicle returned to owner (If applicable include tow fees) Security: Maintenance: Insurance: Other (please list): NOTE: Please attach references. APPENDIX B SEIZED VEHICLES 1990 -' (Highlighted denotes sold at auction) 1991 PLYMOUTH LASER 1990 CHEVROLET PICKUP 1990 FORD RANGER PICKUP 1990 NISSAN 240 SX 1989 HONDA MOTORCYCLE 1989 PONTIAC LE MANS 1988 CHEVROLET CORVETTE 1987 FORT T-BIRD 1987 JEEP CHEROKEE 1'987MAZDA PICKUP 1987 NISSAN 1987 NISSAN PICKUP 1987 TOYOTA PICKUP 1987 TOYOTA SUPRA - 1986 FORD 1986 KAWASAKI MOTORCYCLE 1985 CHEVROLET PICKUP 1985 GMC VAN 1984 CADILLAC EL DORADO 1983 CHEVROLET CAMARO 1983 CHEVROLET EL CAMINO 1982 FORD MUSTANG 1982 FORD MUSTANG 1982 PONTIAC FIREBIRD 1981 DATSUN 280Z 1981 FORD FAIRMONT 1981 HONDA MOTORCYCLE 1980 BUICK RIVIERA 1980 CADILLAC 1980 HONDA PRELUDE 1980 JEEP WAGONEER 1979 CHEVROLET CAMARO 1979 CHEVROLET EL CAMINO 1979 CHEVROLET SILVERADO 1979 DATSUN 280Z 1979 EL CAMINO 1978 CADILLAC 1978 CADILLAC 1978 CADILLAC COUP DE VILLE ..... 1978 CADILLAC SEDAN DE'VILLE 1978 DATSUN 280Z 1978 FORD BRONCO 1978 FORD TRACTOR 1978 JEEP CHEROKEE 1978 MERCEDES-BENZ DRAFT APPENDIX B SEIZED VEHICLES (CONTINUED) 1978 OLDSMOBILE CUTLASS 1977 CADILLAC SEVILLE 1977 CHEVY PICKUP 1977 GMC PICKUP ... 1977 JEEP CHEROKEE WAGON 1977 VW CONVERTIBLE 1974 AMC JEEP CJ5 1974 DODGE CHARGER 1973 CADILLAC COUP DE VILLE 1973 CADILLAC EL DORADO 1971 CHEVROLET CORVE'CI'E 1969 CADILLAC SEDAN 1969 CHEVROLET CAMARO 1966 PONTIAC GTO 1963 CHEVROLET NOVA SS SEIZED PROPERTY 1990 CAMERA CELLULAR PHONE, GUN CELLULAR PHONE CELLULAR PHONE CELLULAR PHONE DIAMONDS, JEWELRY, GOLD WATCHES GOLD JEWELRY, SEIKO WATCH GUNS. CAMERAS, VCRs GUNS, STEREO EQ., FURNISHINGS HOUSEHOLD ITEMS, MISC. JEWELRY JEWELRY, MISC. PERSONAL COMPUTERS (2) RIFLE RIFLE RINGS. NECKLACES STEREO, VIDEO EQ, CAMERAS, TOOLS STEREO EQ., i-V, VCR STEREO EQ., TV, VCR STEREO SYSTEM: SANYO TOOLS. JEWELRY TV, VCR. STEREO. MICROWAVE TV, VIDEO EQ.. CELLULAR PHONE VCR. VEHICLE WASHER/DRYER. REFRIGERATOR, TV APPEN.B DRAFT APPENDIX C AGREEMENT NO. PUBLIC AUCTION'AGREEMENT THIS AGREEMENT is entered into on , 1991, by and between the CITY OF BAKERSFIELD, a municipal corporation, (CITY herein), and , a sole proprietorship, (AUCTIONEER herein).. RECITALS WHEREAS, the Bakersfield Police Department from time to time has in its possession vehicles or other personal property which are the product of an asset seizure, hereinafter referred to as "PROPERTY"; and WHEREAS, the'Bakersfield Police Department desires to dispose of such PROPERTY; and WHEREAS, a public auction is the best method of carrying out said disposal; and' WHEREAS,. the. Bakersfield Police Department desires to engage , who is a licensed and bonded auctioneer and represents that he has the proper permits and expertise, to conduct such public auc%iOn. NOW, THEREFORE, AUCTIONEER AND CITY AGREE AS FOLLOWS: 1. AUCTION: AUCTIONEER shall from time to time · conduct a public auction a~ AUCTIONEER's'premises in 2. SERVICES: AUCTIONEER services shall include, but are not limited to: a. COnduct the auctions and provide all necessary personnel and equipment needed to conduct said auctions. b. Provide the Bakersfield Police Department a record of the PROPERTY sold, the amount of each sale and the transfer of certificates of ownership. c. Pick up in Bakersfield, California all personal PROPERTY released by the Bakersfield Police Department for auction.and transport, store, properly care for and maintain all of such PROPERTY at AUCTIONEER'S facility in California, at no cost to Bakersfield Police Department. AUCTIONEER shall return to Bakersfield Police Department in Bakersfield, California, any vehicle or other PROPERTY which was obtained from the Bakersfield Police Department, if and when the Bakersfield Police Department is required to return said PROPERTY to the owner. This shall be done at no expense to the Bakersfield Police Department. d. Collect all monies due from the sale of each item or lot, plus any applicable sales tax. e. Pay the Bakersfield Police Department the total sum less commission, within fifteen (15) days of the auction. All sales tax collected shall be paid by AUCTIONEER directly to the State of California. f. Obtain buyer's signature on a "Notice of Transfer Owner's Interest In and Possession of Motor Vehicle," (Reg. 138), and any other signatures required by law for vehicle transfers. The originals of said notices and documents shall be submitted to CITY. g. In the event seized vehicles are ordered returned to the registered or legal owner by a court of' jurisdiction or the POLICE DEPARTMENT elects not to pursue forfeiture, AUCTIONEER agrees to collect all fees of per day from the registered or legal owner of said vehicles and to accept such fees as payment in full for the storage. 2 DRAFT h. At all times during the term of this Agreement, AUCTIONEER shall be solely responsible and liable for all vehicles from the time AUCTIONEER .has custody thereof. AUCTIONEER shall be fully and solely responsible for any theft, destruction, or damage of any vehicle from any cause whatsoever after AUCTIONEER has custody thereof. AUCTIONEER shall pay to POLICE DEPARTMENT any amounts necessary to restore to the Department the full, fair market value of any vehicle as of the time AUCTIONEER first had custody thereof. All such amounts owed to the POLICE DEPARTMENT shall be due within forty-five (45) days from the occurrence of any such theft, destruction, or damage. 3. COST TRANSPORTATION: AUCTIONEER shall pay all cost of transportation, maintenance, storage and advertising. 4. COMPENSATION: The'Bakersfield Police Department shall pay to AUCTIONEER a commission of of the gross sales for all Asset Forfeiture Property sold, as compensation for services rendered. Said commission is to be paid out of the sale proceeds. 5. NOTICE: The Bakersfield Police Department shall notify AUCTIONEER when PROPERTY which is in the possession of AUCTIONEER has been cleared and is free and clear 'of any encumbrances to enable it to be auctioned. AUCTIONEER shall not auction any item without first'having obtained said clearance from the Bakersfield Police Departmens. AUCTIONEER will sell property to the highest bidder. The Bakersfield Police Department may at its discretion set a minimum bid price for all items. 6. iNSURANCE: During the ~erm of this Agreement, AUCTIONEER shall maintain a single limit broad form commercial general liability insurance policy in an amount of no% less thau DRAFT $1,000,000 per occurrence with combined liability for personal· injury, property damage and automobile liability with a reliable insurance carrier authorized to do business in the State of California and statutory workmen's compensation coverage. Said policy or policies of insurance shall expressly name the CITY and its agents, officers, and employees as additional insureds. Said insurance shall not be subject to cancellation, non-renewal, or coverage reduction without thirty (30) days written notice to CITY. AUCTIONEER shall provide to the City proof of insurance endorsements and certificates of insurance prior to execution of this Agreement. Said proof of endorsements and certificates of insurance shall be attached to this Agreement as Exhibit "A". 7. INDEMNITY: AUCTIONEER shall indemnify, defend, and hold harmless CITY, its officers, agents and employees against any and all liability, claims, actions, causes of action or demands whatsoever against them, or any of them, for injury to or death of persons or damage to property arising out of, connected with, or caused by AUCTIONEER, AUCTIONEER's employees, agents or independent contractors or companies'in the performance of, or in any way arising from, the terms and provisions of this Agreement. $. TERMINATION: This Agreement will terminate as of 9. WAIVER OF DEFAULT. The failure of any party to enforce agains% another a provision of this Agreement shall not constitute a waiver of tha% par%y's right to enforce such a DRAFT provision at a later time, and shall not serve to vary the terms of this Agreement. 10. FORUM. Any lawsuit pertaining to any matter arising under, or growing out of, this contract shall"be instituted in Kern County, California. 11. TIME. Time is of the essence in this Agreement. 12. NOTICES. Ail notices relative to this Agreement shall be given in writing and shall be sent by certified or registered mail and be effective upon depositing in the United. States mail. The parties shall be addressed as follows, or at any other address designated by notice: CITY OF BAKERSFIELD City Hall 1501 Truxtun Avenue Bakersfield, California 93301 13. ASSIGNMENT. This Contract shall not be assigned by any party, or any party substituted, without prior'written consent of all the parties. 14. BINDING EFFECT. The rights and obligations of this Agreement shall inure to the benefit of, and be binding upon, the parties to the contract an~ ~heir heirs, administrators, executors, personal representatives, successors and assigns. 15. MERGER AND MODIFICATION. This Contract sets forth the entire Agreement between the parties an~ supersedes all other oral or written representations. This Contracu may be mouified 5 only in a writing approved by the City Council and signed by all the parties. 16. NON-EXCLUSIVE. This contract does not give AUCTIONEER exclusive rights to all seized property auctioned by CITY. 17. CORPORATE AUTHORITY. Each individual executing this Agreement represents and warrants that they are duly. authorized to execute and deliver this Agreement on behalf of the corporation or organization, if any, named herein and that this Agreement is binding upon said corporation or organization in accordance with its terms. 18. COMPLIANCE WITH ALL LAWS. AUCTIONEER shall, at AUCTIONEER's sole cost, comply with all other requirements of Municipal, State and Federal authorities now in force, or which may hereafter be in force, pertaining to this Agreement, and shall faithfully observe all activities relating to Or growing out of this Agreement and all Municipal ordinances and State and Federal statutes, rules or regulations now in force Or which may hereafter be in force. 19. INDEPENDENT CONTRACTOR. This Agreement calls for the performance of the services of AUCTIONEER as an independent contractor, and AUCTIONEER will not be considered an employee of the CITY for any purpose and is not entitled to any of~the. benefits provided by CITY to its employees. This Agreement shall not be construed as forming a partnership or any other association with AUCTIONEER other than that of an independent contractor. 20. EXECUTION. This Agreement is effective upon execution. It is the product of negotiation and therefore shall not be construed against any party. 21. ACCOUNTING RECORDS. AUCTIONEER shall maintain accurate accounting records and other written documentation pertaining to the costs incurred in performance of this Agreement. Such records and documentation shall be kept at AUCTIONEER's office during the period of this Agreement, and after the term of this Agreement for a period of three years from the date of the final payment under this Agreement, and shall be made available to CITY representatives upon request at.any time during regular business hours. 22. EXHIBITS. In the event of a conflict between the terms, conditions or operations set forth herein and those in exhibits attached hereto, the terms, conditions, or specifications set forth herein shall prevail. 23. TAXNUMBERS. Auctioneer's Federal Tax ID # Auctioneer is a corporation? Yes No (Please check one) DRAFT IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, the day and year first-above written. CITY OF BAKERSFIELD By CLARENCE E. MEDDERS Mayor APPROVED AS TO FORM: LARRY M. LUNARDINI BAKERSFIELD POLICE DEPARTMENT City Attorney By' By ROBERT A. PATTERSON Chief of Police COUNTERSIGNED: By GREGORY KLIMKO Finance Director "PROVIDER" AUCTIONEERS ADD/krc 8/30/91 AUCTION1.K 8