HomeMy WebLinkAboutCC AG PKT 2008-02-11 #K
AGENDA STAFF REPORT
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DATE:
February 11, 2008
TO: Honorable Mayor and City Council
THRU: David Carmany, City Manager
FROM: Robbeyn Bird, Director of Administrative Services
SUBJECT: A Resolution of the City Council of the City of Seal
Beach Authorizing the Auction Agreement between
the City of Seal Beach and General Auction Company
for the Disposal of Government Surplus Property
tt'!rough Public Auction
SUMMARY OF REQUEST:
Staff requests that the City Council approve the Agreement between the City and
General Auction Company for the disposal of surplus vehicles through public
auction.
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BACKGROUND:
During the City Council meeting of September 11, 2006 and June 25, 2007, staff
requested City Council approval to replace certain vehicles as part of the City's
Fleet Management Plan. As part of the Fleet Management Plan, ten vehicles
were authorized to be sold as surplus. The approval of the agreement with
General Auction Company would allow the City to place the vehicles on sale
through public auction.
FINANCIAL IMPACT:
5% commission applies to cars and trucks. Fees per vehicle include $45.00
document fee, $58.00 smog (if needed), $25.00 Title Search Fee, and $60.00
Safety Fee.
RECOMMENDATION: .
It is recommended that the City Council approve the agreement between the City
of Seal Beach and General Auction Company for the disposal of Government
Surplus Property through public Auction.
c.:..J
RO~d, Dir of Admin Services
NOTED AND APPROVED:
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David Carmany, Ity Manager
SUBMITTED BY:
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Attachments:
A. Resolution
B. Auction Agreement
Agenda Item /(
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AUCTION AGREEMENT
GENERAL AUCTION COMPANY
7015 Knott Avenue
Buena Park, CA 90620
(714) 670-8510
GENERAL AUCTION COMPANY (hereinafter "GAC") and undersigned (hereinafter
"SET .T .E~") agree as follows:
1. AGENCY. SRT I.FR hereby appoints GAC as its agent to conduct a public
auction of the personal property as described herein. GAC shall be an independent contractor.
SET I FR authorizes and confers upon GAC the power to take all actions on S"RI.T RR.'S behalf
necessary to complete the auction, including but not limited to publication and recordation of a
''Notice to Creditors .of Bulk Sale by Auction" in compliance with the Bulk Sales law, giving any
other notice or filing any documents that may be required by law, accepting cash or checks on
behalf of SELLER as registered and/or legal owner of any motor vehicle sold to effect a transfer,
and satisfying or comprising secured parties who hold or assert a lien in any property sold at
auction. S"RT.T .R~ hereby agrees to sell the property to the highest bidder, with no minimum,
reservation, buy-backs, or persons bidding for SRT.T .RR..
2. PROPERTY. The property is generally described as cards, trucks, vans, trailers,
motor homes, camper vehicles of any kind, make or model, equipment, machinery, tools, parts
and/or miscellaneous items used, manufactured or distributed by any industry, business, entity or
agency.
5 % Commission applies to the foUowJng: cars, trucks, vans, motor homes, boats
and/or camper vehicles
15% Commission applies to personal property, office equipment, furniture,
construction equipment, trailers and/or misc. items
FEES PER VEmCLE: Document: $45.00; Smog: $58.00 (if needed); KSR Fee:
$25.00; Safety: $60.00
At the option of GAC, vehicles may not be offered at auction unless the Certificate of Ownership
and all other documents necessary to effect a transfer of title of motor vehicles, trailers and
towable forklifts are submitted to GAC at least five (5) days prior to the sale. The SFI T FR
agrees to pay advertising and all other costs as provided below on any property withdrawn from
the sale as a result of the failure of the SFI.T R~ to submit the required title documents. GAC
reserves the right to add other personal property not owned by SELLER to the auction inventory.
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General Auction Company
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3. TIME AND PLA~ GAC shall use GENERAL AUCIION COMPANY'S yard
Jocau:d lit 7015 KNOTT AVEN'LlE. BUENA PARK. California, as thl: lIUCliOll sit!!. None of !hI:
property may be sold beflll'll the lw:tiDn without the wrillllll COIIlIeIIt of bath partiel, In whlch
CIB!IC the sale pracccds shall be tn:aLl:d. as pm of the gross proccc:ds of the auction. GENERAL
AUCTION COMPANY will accept items 011 a cOIItlnuing basil co be included in the nelll
fl.'<Iailable and rc:gul1rrly scheduled a\ll:tion l\lll.iect to GENERAL AUCTION COMPANY'S
e1iSCltltiOD to c:hllnF such date. In tile event of SELLER'S brellCh of this Agreement, SEU.ER
agrees to pay the commission provided below based IOn currcnt market value of ..i d property
plus all ofGAC's out of poc::kl:l costs.
4. mMMlSSIONS AND mcPENS'ES. GAC shall RCCivc as commissiOll (SEE
ITEM 1I2 ABOVE) of arals laic proceeds. OAe makes no 1Cprc:lllntlltions lOr warranties as to
the amount th81 UIe propeny (or a particular item thereot) will sell for, GAC shall be relmblll'Sed
by SELLER tile COlt of a titlc lICarc:h if one is deem~ necusary by OAe. III lbe cvent OAe
sltisfies or lakes an assignment of the intere51 or secured partiea, all amounts paid to the sec:un:d
panies in satisfacliO!' of the secured interest ll1' far an Il8Iignmcnt of the intcrc&l1D OAe shill] be
clee_d to b~ advances by OAC, which advallces, shllll bll clllductcd by CAC out of the sales
proceeds of SF-U ~ aftllr payment of c:ommillSions ll1ld expenses.
The rcrms and c:onditioos on the rcv~rlC side
of this aaree-menl mu&t be read carefully.
11t.ANSPORTATIONC): 5
11lAHSPORTAT10N (l: $
DRT AIl.ISG ( ): $
PAINTING ( ): 5
OTHER ( ): S
APPROVED BY: G /"V
DATE:...1d q l () i
(pElt. UNlT)
(PI!lI. LOAD)
(pER UNlT)
(PER 'UJllTI)
AGENCY: City of Seal BOlICh
CONrACTNAME: JeffWlbcn
ADDRESS: 221 8th Street
CITY: Seal Bl:lIch STATE: CA ZIP 90740
PHONE, 562-43/-2.527,'FAX
(; O..:OIN.'''.J
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SIGNA TUR.E
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S. REPRR.'IENTATlONS AND WARRANTn::J~ OF S"" rI"ll SEll.ER reprcscnts
and warrantl as follows:
A. The property, and each item thereof. has no defects,
B. Each ilem of property is free of liens, charges or encumbrlLt\QCS.
C. The propctty is coveted by inslll'lillce against normally insllTable rislca IInd
sllch insurance sllaU be maintained by 51'7 T ~ until delivery of the property to a
putChaset(~). GAC shill! bc named IlIIll1 additional insured under sucb pDlicies.
D. SELLER hu no business name or addnllS orher tban the name and address
specified in this Agreement.
S'2!I6-0001Itlll29USvl.oIa.
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6. INDEMNITY. SET.T .F.R hereby agrees to indemnify, defend and hold GAC
hannless from any and all lessees, liabilities, claims, demands, causes of action, lawsuits or
expenses (including GAC's actual attorney fees) which arise against or are incurred by GAC due
to any of the representations or warranties of SET .T .RR in this Agreement which are alleged to be
false or because of any breach by SET T RR of any of the terms of this Agreement. SEILER
agrees that this indemnity shall cover any and all losses of GAC arising out of or in connection
with death or injury to person or property damage caused in whole or in part by defects in the
condition of the property.
7. SECURITY INTEREST. SRT.T .F.R hereby gives GAC a security interest in the
property including any insurance proceeds and in the sale proceeds in order to secure any and all
advances which may be made to or on behalf of the SFI.T .ER by GAC, and to secure any and all
other obligations that SRI' .T .RR. owes GAC. GAC shall have all the rights of a secured creditor
under the Uniform Commercial Code and SRT T RR agrees to execute a financing statement
enabling GAC to perfect this security interest.
8. INSURANCE. GAC shall obtain, provide, and maintain during the term of this
Agreement the following types and amounts of insurance which shall be maintained with
insurers licensed and admitted to sell insurance in the State of California and having a B+ or
higher rating in the latest edition of A.M. Best's Insurance Guide, subject to approval of the
Seller's Risk Manager and City Attorney:
A. Commercial General Liability. A policy of comprehensive Commercial
General Liability Insurance covering bodily injury, personal injury, and commercial
property damage in the amount of a combined single limit of not less than I Million
Dollars ($1,000,000.00), per occurrence and in the aggregate.
B. Property Insurance. A policy of all risk coverage insuring all of Seller's
Property which is in the possession of GAC pursuant to this Agreement in an amount not
less than the actual cash value of such Property. Seller shall be named as a loss payee.
C. Worker's Compensation. A policy of Worker's Compensation Insurance
coverage in accordance with State worker's compensation laws and a policy of
Employers Liability Insurance coverage of not less than I Million Dollars
($1,000,000.00) per accident.
D. Commercial Automobile .Liability Insurance. A policy of Commercial
Automobile Liability Insurance covering bodily injury and property damage with a
combined single limit of not less than 1 Million Dollars ($1,000,000.00) and uninsured
motorist coverage at the statutory minimum. GAC shall insure all of Seller's vehicles in
GAC's possession against risk of physical damage in an amount equal to the replacement
cost of each vehicle. GAC shall indemnify Seller against any loss Seller may incur by
reason of physical damage to such vehicles.\
GAC shall maintain on file with the City Clerk current and valid certificates of insurance,
including appropriate endorsements, in the form attached acceptable to the City. Certificates
shall be filed and must be approved by Seller prior to execution of this Agreement.
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87296-ooo1\102944Syl.OOo
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Said policies of insurance shall be primary to and not contributing with any other insurance
maintained by Seller or GAC, and shall name the City of Seal Beach and its officers, agents and
employees as an additional insured. The policies shall not be canceled or reduced without thirty
(30) days written notice to Seller and shall specifically state that the insurance coverage
contained in the policies affords insurance pursuant to the terms and conditions as set forth in
this Agreement.
The insurance policies shall include provisions for waiver of subrogation. Any deductibles or
self-insured retentions must be declared and are subject to the approval of Seller.
9. INDEMNIFICATION. GAC agrees to indemnify, hold harmless, and defend
Seller, the City Council and each member thereof, and every officer, employee and agent of
Seller, from any liability or financial loss (including, without limitation, attorneys fees and costs)
arising from any act or omission of GAC or any person employed by GAC in the performance of
this Agreement. This indemnity provision shall survive the termination of the Agreement and is
in addition to any other rights or remedies which Seller may have under the law. Without
affecting the rights of Seller under any provision of this Agreement, GAC shall not be required
to indemnify and hold harmless Seller for liability attributable to the active negligence or willful
misconduct of Seller, provided such active negligence or willful misconduct is determined by
agreement between the parties or by the findings of a court of competent jurisdiction.
10. BOND. GAC shall obtain and provide a blanket fidelity bond or comparable
honesty bond or crime coverage, in a form satisfactory to the City Attorney, protecting Seller
against financial loss caused by any dishonest act of GAC or GAC's employees. The bond shall
have a minimum limit of $15,000.00 and the City of Seal Beach shall be named as a loss payee.
The bond shall be executed by a responsible corporate surety, which has been given a B+ or
higher rating by the most recent edition of Best's Insurance Guide and which is authorized to
issue bonds in the State of California through an authorized agent with an office in California.
11. GENERAL PROVISIONS.
A. Within fifteen (15) working days after the auction date and after the
receipt of a signed Confirmation of Consignment, GAC shall present a full accounting of the
sales proceeds and expenses to SEILER. With such accounting, GAC shall present SHY.T ~
with a check for all monies due from such auction less any funds delayed by legal proceedings or
inability of GAC, through no fault of its own, to notify DMV of Transfer of Ownership
(form 138), or to comply with the Uniform Commercial Code or other laws. GAC reserves the
right to eliminate from the settlement any property for which payment has not been made, and
SEILER agrees to accept responsibility for reclaiming same whenever located.
B. In the event any dispute arises out of this Agreement, the prevailing party
shall be entitled to reasonable attorney's fees from the other party.
C. GAC is authorized to satisfy or take assignment of the interest or liens of
secured, parties, but nothing herein shall obligate GAC to acquire the interest of a secured party,
unless GAC elects to do so in its sole and absolute discretion.
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S729~I\I029445yl.dao
Attachment A
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CITY OF SEAL BEACH
AUTOMOBILES SCHEDULED FOR AUCTION
FEBRUARY 11, 2008
. LG 5130-4
o 2004 Dodge Dakota
o Vin
1 D7HG 12K54S712619
o License 1157008
. PW #34
o 1996 Ford F-250
o Vin
1 FTEF25H1 TLB46764
o License E034859
. PDPat.4112
o 1998 Chevy Blazer
o Vin
1 GNDT13W6V2149272
o License E998612
. PW #35
o 1999 Ford F-250
o Vin
1 FTPF27M6XKB49917
o License 1045785
o 1999 Ford Crown Victoria
-CNG
o 2FAFP7195XX232008
o License 1045779
. PW #57
o 1985 GMC Patch Truck
o Vin
1 GDM7D1 B9GV508058
o License E478929
. Vol. 4106 (PD internal 4123)
.
. PD No Current Number (Old Pat.
4109)
o 1999 Ford Crown Victoria
-CNG
o 2FAFP7197XX232009
o License 1045780
. PW #23
o 1998Chevy4x4
o Vin
1GBJK34JXWF053124
o License #056679
. PW #28
o 1999 Ford F-250
o Vin
1 FTPF27MXXKB49919
o License 1045783
.
. PW #33
o 1996 Toyota Tacoma
o Vin
4TAVVN72N8TZ194656
o License E298230
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RESOLUTION NUMBER
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH, CALIFORNIA AUTHORIZING CITY MANAGER TO
EXECUTE THE AUCTION AGREEMENT BElWEEN THE CITY
OF SEAL BEACH AND GENERAL AUCTION COMPANY FOR
THE DISPOSAL OF GOVERNMENT SURPLUS PROPERTY
THROUGH PUBLIC AUCTION
WHEREAS, as part of the City's Fleet Management Plan, ten vehicles were
authorized to be sold as surplus; and
WHEREAS, an agreement with General Auction Company would place the
vehicles on sale through public auction.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH
DOES HEREBY RESOLVE:
Section: 1. The agreement between the City of Seal Beach and General Auction
Company for the disposal of Government Surplus Property through public
auctton is hereby approved and the City Manager Is authorized to execute said
agreement.
PASSED, APPROVED and ADOPTED by the City Council of the City of Seal
Beach at a regular meeting held on the 11 th day of Februarv , 2008 by the
following vote:
AYES: Councilmember
. NOES: Councllmember
ABSENT: Councilmember
ABSTAIN: Councilmember
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify
that the foregoing resolution Is the original copy of Resolution Number
on file in the office of the City Clerk, passed, approved, and adopted by the City
Council of the City of Seal Beach at a regular meeting held on the 11th day
of Februarv . 2008.
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City Clerk