HomeMy WebLinkAboutCC 12 ERNST & ASSO'S 05-06-91CONSENT CALENDAR NO. 12
5-6-91
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APRIL 29, 1991 Cl r - �. t� li1 •' n
)ATE: ,
WILLIAM A. HUSTON, CITY MANAGER
TO:
FROM: W. DOUGLAS FRANKS, CHIEF OF POLICE
SUBJECT: AGREEMENT - ROGER ERNST & ASSOCIATES, AUCTIONEERS
Recommendation
City Council authorize the City Manager to execute an auction agreement
with Roger Ernst & Associates, Auctioneers, for the Police Department
Annual Auction of surplus City property and bicycles.
Background
The Police Department has handled the public auction of surplus City
property and Police Department found/seized property for many years.
- The auction responsibilities have grown, and this event has become a
time-consuming and costly endeavor. It takes not only normal work day
time but large amounts of overtime for the employees involved. Due to
the increasing burden caused by the auction, alternatives were explored.
The most cost-effective and legal method of disposing of City property
was found to be through auction by allowing a private auction company
to provide the service. The following chart demonstrates the cost
comparisons:
Overtime Expended
Advertising
Auctioneer Cost
Miscellaneous
Storage
Transportation
Total Cost
_ Total Auction
NET REVENUE
1990 AUCTION
CITY AUCTION
ERNST AUCTION
$1,635
$ 0
700
0
684
1,711
350
0
(Ongoing)
(Prescribed by Law)
(Yes)
(No)
3,369
1,711
6,845
6,845
$3,476
$5,134
Mr. Huston
April 29, 1991
Page 2
Additionally, Ernst performs monthly auctions, which will alleviate many
of our storage problems by giving property that has been declared
surplus directly to Ernst rather than storing it for our annual auction. The
company provides full pick-up and transportation items and a full
accounting of items auctioned or remaining.
This service complies with City codes pertaining to disposal of surplus
property and also fulfills the requirements of law regarding disposal of
property which comes into the possession of the Police Department.
W. DOUGLAS FRANKS
-- Chief of Police
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AUCTION AGREEMENT
IT IS HEREBY mutualIy agreed between ERNST & ASSOCIATES
(P.O.Box 3251, Modesto, Ca. 953 53) and TUSTIN POLICE
DEPARTMENT (300 Centennial Way, Tustin, Ca. 92680> that the
following property be sold at Public Auction at a date to be
determined by both parties. Owner alleges that all property
is free of mortgage or encumbered as follows: ALL FREE AND
CLEAR. Description of said property: See inventory sheet to
be filled out at time of release of property to Ernst &
Associates. Erns & Associates to conduct the sale for which
the owner agrees to pay a sum equal to 10% (ten percent> on
all vehicles and rolling stock and 25% (twenty-five percent>
on all tangible items offered for sale, to be deducted from
the sale proceeds. Ernst & Associates to absorb all costs of
sale to include transporting of items for sale to sale site,
advertising —newspaper and direct mail flyers. Total
proceeds to be delivered within 30 days of saIe.
Ernst & Associates to provide Tustin Police Department
with a Certificate of Liabilitv Insurance for $1.000.000.00
for any auction related business.
2
TUSTIN POLICE DATE ROG1:69 ERNST DATE
DEPARTMENT
Auctioneer License #278
California Auctioneer Commission
P.O. Box 511
Sacramento, Ca. 95803
P.O. Box 3251 0 Modesto, CA 95353 0 527~7399