HomeMy WebLinkAboutContracts & Agreements_85-2013_CCv0001.pdf AGREEMENT TO PERFORM AUCTION SERVICES
This agreement for the provision of auction services("Agreement") is made and entered
in this 21st day of May,2013("Effective Date"),by and between the City of Redlands,a
municipal corporation("City)"and Ken Porter Auctions("Contractor"}. City and Contractor are
sometimes individually referred to herein as a"Party"and,together,as the"Parties."In
consideration of the mutual promises contained herein,City and Contractor agree as follows:
ARTICLE I — I'll"EMfM OF CONTRACTt1R
1.1 City hereby engages Contractor to provide auction services in connection with City's sale
of surplus equipment and personal property(the"Services").The Services shall be
performed by Contractor in a professional manner,and Contractor represents that it has
the skill and the professional expertise necessary to provide the Services to City at a level
of competency presently maintained by other practicing professional Contractors in the
industry providing like and similar types of Services.
ARTICLE 2 SE&YL4US OF CONTRACTOR
2.1 The Services that Contractor shall perform are more Particularly described in Exhibit
"A,"entitled"Scope of Auction Services,"which is attached hereto and incorporated
herein by reference.
2.2 Contractor shall comply with applicable federal,state and local laws and regulations in
the performance of this agreement including,but not limited to State prevailing wage
laws.
2.3 The initial term of this Agreement shall be for one(1)year,commencing on the Effective
Date of this Agreement("Initial Term"}. City shall have the option to renew this
Agreement for two consecutive one(1)year tenns(each a"Renewal TenWj,on the same
terms and conditions hereof,by providing contractor with at least thirty(30)days written
notice of City's election prior to the end of the Initial Term or a Renewal Term.
ARTICLE 3 RESPONSIBILITIES OF CITY
11 City shall make available to Contractor information in its possession that may assist
Contractor in performing the Services.
31 City designates Dana Abramovitz-Daniel,the City's Purchasing Services Manager,as
City's representative with respect to performance of the Services,and such person shall
have the authority to transmit instructions,receive information, interpret and define
City's policies and decisions with respect to performance of the Services.
ARTICLF,4 -i, liE13;111! 3i;11!' K`,[�',OF 5ERVICES
4.1 Contractor shall perform and complete the Services in a prompt and diligent manner in
accordance with Contractor's proposal which is attached hereto as Exhibit"B"and which
is incorporated herein by reference.
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ARTICLE 5—PAYMENTS TO CONTRACTOR
5-1 City shall pay Contractor compensation for performance of the services in accordance
with the fee schedule attached hereto as Exhibit"C."Contractor shall submit monthly
invoices to City describing the Services performed during the preceding month.
COntraCtOes invoices shall include a brief description of the Services performed and the
dates the Services were performed.City shall pay Contractor no later than thirty(30)
days after receipt and approval by City of Contractor's invoice,
5.2 All notices shall be given in writing by personal delivery or by mail.Notices sent by mail
should be addressed as follows:
C& CQUONIM
Dana Abnunovitz-Daniel, Jim Ido
Purchasing Services Manager Chief Financial Officer
Purchasing Department Ken Porter Auctions
City of Redlands 21140 S.Avalon Boulevard
35 Cajon Street Carson,CA 90745
P.O.Box 3005(mailing)
Redlands,CA 92373
When so addressed,such notices shall be deemed given upon deposit in the United States
Mail.Changes may be made in the names and addresses of the person to whom notices
and payments are to be given by giving notice pursuant to this section 5.2.
ARTICLE 6 INSURANCE AND INDEMNIFICATION
6.1 Insurance required by this Agreement shall be maintained by Contractor for the duration
of its performance of the Services.Contractor shall not perform any Services unless and
until the required insurance listed below is obtained by Contractor.Contractor shall
provide City with certificates of insurance and endorsements evidencing such insurance
prior to commencement of the Services.Insurance policies shall include a provision
prohibiting cancellation or modification of the policy except upon thirty(30)days prior
written notice to City.
6.2 Contractor shall secure and maintain Workers' Compensation and Employer's Liability
insurance throughout the duration of its performance of the Services in accordance with
the laws of the State of California,with an insurance carrier acceptable to City as
described in Exhibit"D,"entitled"Workers' Compensation Insurance Certification,"
which is attached hereto and incorporated herein by this reference.
63 Contractor shall secure and maintain comprehensive general liability insurance with
carriers acceptable to City. Minimum coverage of One Million Dollars($1,000,000)per
occurrence and Two Million Dollars($2,000,000)aggregate for public liability,property
damage and personal injury is required.City shall be named as an additional insured and
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such insurance shall be primary and non-contributing to any insurance or self-insurance
maintained by City.
6.4 Contractor shall secure and maintain auto liability coverage,with minimum limits Of One
Million Dollars(S 1,000,000)per occurrence,combined single limit bodily injury liability
and property damage liability.This coverage shall include all Contractor owned vehicles
used in connection with Contractor's provision of the Services,hired and non-owned
vehicles,and employee non-ownership vehicles.City shall be names as an additional
insured and such insurance shall be primary and non-contributing to any insurance or self
insurance maintained by City.
6.5 Contmtor shall defend,indemnify and hold harmless City and its elected officials,
employees and agents from and against any and all claims,losses or liability,including
attorneys' fees,arising from injury or death to persons or damage to property occasioned
by any negligent act,omission or failure to act by Contractor,its officers,employees and
agents,or their willful misconduct, in performing the Services.
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ARTICLE L 7 CONFLICTS OF MOMMST
7.1 Contractor covenants and represents that it does not have any investment or interest in
any real prop"that may be the subject of this Agreement or any other source of
income,interest in real property or investment that would be affected in any manner or
degree by the performance of Contractor's Services.Contractor finther covenants and
represents that in the performance of its duties hereunder,no person having any such
interest shall perform any Services under this Agreement.
7.2 Contractor agrees it is not a designated employee within the meaning of the Political
Reform Act because Contractor
A. Does not make or participate in:
(i) the making or any City governmental decisions regarding approval of a
rate,rule or regulation,or the adoption or enforcement of laws;
(H) the issuance,denial,suspension or revocation of City permits,licenses,
applications,certifications,approvals,orders or similar authorization or
entitlements;
(iii) authoring City to enter into,modify or renew a contract;
(iv) granting City approval to a contract that requires City approval and to
which City is a party,or to the specifications for such a contract;
(v) granting City approval to a plan,design,report,study or similar item;
(vi) adopting,or granting City approval of policies,standards or guidelines for
City or for any subdivision thereof.
B. Does not serve in a staff capacity with City and in that capacity,participate in making
a governmental decision or otherwise perform the same or substantially the same
duties for City that would otherwise be performed by an individual holding a position
specified in City's Conflict of interest Code under Government Code section 87302.
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7.3 In the event City officially determines that Contractor must disclose its financial interests,
Contractor shall complete and file a Fair Political Practices Commission Form 700,State
of Economic Interests with.the City Clerk's office pursuant to the written instructions
provided by the City Clerk.
MME GENERAL CONS112EBADQNS
8.1 In the event any action is commenced to enforce or interpret any of the terns or
conditions of this Agreement the prevailing Party shall,in addition to any costs and other
relief,be entitled to the recovery of its reasonable attorneys' fees,including fees for the
use of in-house counsel by a Party.
8.2 Contractor shall not assign any of the Services,except with the prior written approval of
City and in strict compliance with the terms,and conditions of this Agreement.
8.3 Documents,records,drawings,designs,cost estimates,electronic data files,databases
and any other documents developed by Contractor in connection with its performance of
the Servic m and any copyright interest in such documents,shall become the property of
City and shall be delivered to City upon completion of the Services,or upon the request
of City.Any reuse of such documents,and any use of incomplete documents,shall be at
City's sole risk.
8.4 Contractor is for all purposes under this Agreement an independent contractor and shall
perforin the Services as an independent contractor.Neither City not any of its agents
shall have control over the conduct of Contractor or Contractor's employers,except as
herein set fimb.Contractor shall supply necessary tools and instrumentalities required to
perform the Services.Assigned personnel employed by Contractor are for its account
only,and in no event shall Contractor or personnel retained by it be deemed to have been
employed by City or engaged by City for the account oC or on behalf of City.Contractor
shall have no authority,express or implied,to act on behalf ofCity in any capacity
whatsoever as an agent,nor shall Contractor have any authority,express or implied,to
bind City to any obligation.
8.5 Undess earlier terminated as provided for below,this Agreement shall terminate upon
completion and acceptance of the Services by City;provided,however, this Agreement
may be terminated by City,in its sole discretion,by providing ten(10)days prier written
notice to Contractor(delivered by certified mail,return receipt requested)of City's intent
to terminate.If this Agreement is terminated by City,an adjustment to Contractor's
compensation shall be made,but(1)no amount shall be allowed for anticipated profit or
unperftmW Services,and(2)any payment due Contractor at the time of termination
may be adjusted to the extent of any additional costa to City occasioned by any default by
Contractee.Upon receipt of a termination notice,Contractor shall immediately
discontinue its provision of the Services and,within five(5)days of the date of the
termination notice,deliver or otherwise make available to City,copies(in loth hard copy
and electronic form,where applicable)of specifications,reports,summaries and such
other information and materials as may have been accumulated by Contractor m
performing the Services.Contractor shall be compensated on a pro-rata basis for Services
completed up to the date of termination.
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8.6 Contractor shall maintain books,ledgers, invoices,accounts and other records and
documents evidencing costs and expenses related to the Services for a period of three(3)
years,or for any longer period required by law, from the date of final payment to
Contractor pursuant o this Agreement. Such books shall be available at reasonable times
for examination by City at the office of Contractor.
8.7 This Agreement, including the Exhibits incorporated herein by reference,represents the
entire agreement and understanding between the Parties as to the matters contained
herein,and any prior negotiations,written proposals or verbal agreements relating to such
matters are superseded by this Agreement. Except as otherwise provided far herein,an
amendment to this Agreement shall be in writing,approved by City and signed by City
and Contractor.
8.8 This Agreement shall be governed by and construed in accordance with the laws of the
State of California.
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IN WITNESS WHEREOF,duly authorizes representative of the City and Contractor have signed
in confirmation of this Agreement.
CITY OF REDLANDS KEN PORTER AUCTIONS
By:
Pete Agui ,Mayor o,
Attest:
��A
Sam Irwin, dy Ierk
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EXHIBIT"A"
SCOPE OF AUCTION SERVICES
SCOPE:The City of Redlands'Purchasing Division has solicited bids from qualified auctions firms to be
considered for the public auction sale of surplus City property.The City desires the full range of services
provided by an auctioning firm. items will be released for sale as they are declared sums an a random
schedule w ittmt a guarantee as to an annual volume.The City requires that all items be auctioned within
ten (10) weeks after they are released for sate. Surplus property may include: Vehicles, equipment,
furniture and miscellaneous surplus property.
NON-EXCLUSiYE AGREEMENT
It shall be understood that the City of Redlands does not grant an exclusive right to vendor to provide
auction services during the tern of this agreement. City reserves the right to contract for similar services
from oifher vendor.
LOCATION
Contractor should provide address of location surplus will be taken to and the locadons where the
auctions will be held. Contractor will list address of corporate office and any locations within the company
where offices exist.
FEE PAID
Contractor will be paid for the conducting of each auction based on a percentage of the grass salew
Contractor will be responsible for the payment of all Contractor costs associated with the auction,from
the Contractor's percentage received. Contractor is responsible for collecting and paying all appropriate
taxes. Proceeds from each auction(less Contractor's percentage and fees for authorized services listed
on price sheet)are to be paid to City within fourteen(14)calendar days after the sale. The payment is to
include an itemized listing of all items auctioned,the selling price and separate totals for vehIcles and all
other items. The contractor shall submit an itemized list of all items sold to the Purchasing Manager.
REQUIRED SERVICES
The purpose of this resulting agreement is to provide complete auctioning services by an
professional auctioneers. Contractor shall conduct effective and professional auctions that reflect aaggood
public image for the City of Redlands. All auctions worst be open to the general public.
ACCOUNTiNG
Contractor shall provide accurate accounting data of the auctions no later than fourteen(14)calendar
days following the auction. Data must identify City Auction ID Number and/or Vehicle identificatkm
Number to Contract's number,and sale price.
SECURITY
Contractor shad provide adequate security for auction Items. Cost for security shall be paid iron the
Contractor's percentage fee.
TRANSPORTATION OF GOODS
The Contractor shaft be responsible for transporting goods(Including vehicles and heavy equipmehI if
authorized)to the auction site as it becomes available from City. Contractor shall be responsible for any
damages and or costs to City's property and for any damages or costs that City property may have
caused to a third party while In the process of transporting the surplus property to Contractor's piece of
business. Contractor shall transport auction items within Ave(5)days of notification for pickup. With the
exception of high dollar valued items,requests for pick-ups will be made when a buck load of items is
available.
items not purchased at the auction will be evaluated by City for further action.City will have the final
approval as to the d` "tion of all items,and reserves the right to attempt to resell at the next auction.
Unsold Items are to be transported back to the City by the Contractor at no additional cost to City.
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PREPARATION OF VEHICLES FOR AUCTION
Vehicles that are to be sold at auction will be in various conditions. Contactor shall be paid from
COntractOes percentage fee for the standard washing and cleaning of the inside and outside of passenger
vehicles and trucks,smog test,safety check,De-Identification and Do-Logo.In some Instances a vehicle
may need maks prior to being sold. This could be anything from repairing or replacing a tire,to
replacing a dead battery to getting a new paint Job. Contractor shall create a quotation for the work to be
done. it shaft be sent to the Fleet Manager to be approved prior to the work being done. The lost of
these repairs shall then be deducted from City's proceeds from the sale of the vehicle upon approval from
the Purchasing Services Manager.
DEPARTMENT OF MOTOR VEHICLES(DMV)DOCUMENTATION
The Contractor shall property complete all necessary DMV paperwork to ensure that the City
vehicles/equipment tiffs are property transferred from seller to buyer.
WARRANTY
The City of Redlands does not guarantee the condition and quality of any item,and all items will be soli
In"as is'conditions.
BUSINESS LICENSES
The successful Bidder will be required to obtain a City of Redlands business license prior to
commencement of work.
RIGHT TO AUDIT RECORDS
The City shall be entitled to audit the books and records of Contracts to the extent that such books and
records relate to the performance of its Agreement or any sub{ontrecd to the Agreement. Such books
and reeds shall be maintained by the Bidder for a period of three (3) years from the date of final
payment under the Agreement and by the sub-contractor for a period of three(3)years from the date of
final payment under the sub-contract unless a shorter period is otherwise authorized in writing.
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Exhlbit"B"
Contractor's Proposal
Ken Porter
AUCT1O'NS
asr, 1a Ix
Executive Sumsa_w
KPA has provided auction sales services for the disposalof surplw private and Public
Agency vehicles,equipment,and miscellaneous items since 1%2. Over the last 50 yeah,
KPA has developed and fine-tuned many of the techniques used throughout the auction
industry today. KPA conducted the Jst governmental auction sale in 1%3 for Ventura
CO",selling vehicles,equipment,and miscellaaeow items.
Up until June 2001, the company name has been Ken Porter Auction Company, Inc. In
June 2001, KPA changed ownership, retaining all full time employees, auction location
and equipment. The new owner, C.H.F. Enterprises, Inc., a 35-year-old one-owner
corporation, provides a significantly higher caliber of financial support to the business,
including financing of vehicles sold,giving KPA the added benefit of increased solidity
and dependability of services.
KPA's operational team has over 75 years of direct auction in government agencies
experience and more than 100 combined years of marketing and management experience.
Our current list of over 30 employees provides the Consignor with exparience and
knowledge that will rapidly meet the City of Redland's needs with minimal delay.
KPA nuns independent of the other C. H. P. Enterprises, Inc. businesses and will provide
Financial Statements upon request by City of Redhands.Currently,there are no conditions
that might impede the ability to complete this project(RFB).
Commnv Profile
Ray Claridge (818)255-1366
President/Owner/Operator
Jim Ido (310)353-7140
CFO
Gene Govoreau (310)353-7140 Cell:(310)613-9501
General Manager
Craig Alford (310)353-7140 Cell:(8 18)339-1875
Marketing and Internet Director
Marcos Lazo (310)353-7140
Facilities Manager
Ken Porter
AUCTION !
car. low
Comuanv Profile(continued)
Amie Baldwin (310)353-7140
TitlelDmv Specialist
Jamie Ido (310)353-7140
Office Manager
KPA hereby states that as of this date, the KPA has no commitments or pot ti
commitments that may ati<to KPA's assets, lines of credit, guarantor letters or ability to
perform this Proposal. KPA has never filed bankruptcy, no pending litigation, no
planned office closures,and no impending mergers,
KPA has never used and/or has no intention of using any subcontractors to perform this
Proposal.
KPA auction facilities are located at 21140 S. Avalon Blvd., Carson, California, 90745.
This facility will handle up to 300 vehicles per sale, a 20,000 square foot warehouse for
Miscellaneous Items and over 150 parking spaces on-site with another 250 within 2
blocks.
Kon P91t r
11UCTION3
ear low
Bidder Ouallonntaire
Our History
Ken Porter Auctions has delivered "Full-Circle"auction services to Southern California
since 1%2. We are one of the oldest and moat trued PUBLIC auto auctions in North
America,specializing in"Government Agencies"vehicle and equipment disposal.
We are locally owned and deliver personalized services to many agencies in a fully
"customizable" format. Regardless of what your vehicle remarketing or misce1laneow
disposal needs are, we will deliver. We sell anything from golf cart,cars and trucks, to
compacers, furniture and office equipment,to Yachts,airplanes and helicoptem
e i
Ken Porter Auctions offer"One Call Does It All"services for our clients. Here is all you
need to do:
• Fax,e-mail,or click dee mouse and your Consignment Agreement goes directly to
KPA or you can enter your data from our website, it's your choice. Your
Consignment Agreement will immediately be entered into our system and given
to our In-House Transportation Department or you may choose to delivery your
vehicle(s)or item(s)directly to us.
• All current and historical daft will be available to you on our secured website, 24
hours a day,7 days a week,365 days of the year.
• Your vehicle will be sold at the next scheduled KPA auction.
A complete and detailed expense breakdown of each vehicle of item sold will
accompany your settlement check.
fn addition, KPA provides the following:
• Large Public and Dealer attendance at each twice-monthly auction.
• Dynamic website,receiving more than 1,500,000 visits per year.
• Live and Online Auction giving you local and national buyers
• Convenient access to updated Consignor records via our website.
• Raidio,TV,and Newspaper advertising.
• Reconditioning and repair service is available.
0 20,000 Plus COLOR brochures mailed out before each sale,Plus e-mail blasts.
Kern Porter
` AUCTION $
for. to
• Title documentation is completed by out to-House Title
"Special"DMV servicers are also available. Department.
• Vehicle storage at NO cost to our clients.
• Conveniently located in off Avalon exit and 405 Fwy in Carson,CA
PMoscrs Qualifyions
• Ken Porter Auctions is open Monday through Friday,8:00 am to 5:00 pm and
•
Open from 7:00 am to 5:00 pm on the Saturday the auctions)is/am held,• Ken Porter Auctions conducts auctions twice a month, the 1"and P Saturday's,
Ken Porter Auctions has full staff of over 30 employees at the auction location at
all times,
• Ken Porter Auctions holds all proper and valid Department of Motor Vehicles
licenses, Seller's Permit from the State Board of Equalization and none of these
licenses have ever been revoked,
• Ken Porter Auctions complies with Califomis Civil Code,Section 1812.600,
• Ken Porter auctions has over 300 auction spaces for vehicles.large and oversized
trucks as well as an additional inside storage for vehicles and equipment,
• Ken Porter Auctions is connected to the Department of Motor Vehicles database
and can provide a check of registration, Vehicle Identification Number(VIN),
and provide D M V title searches,
• Ken Porter Auctions provides a Smog Certificate of Compliance on each vehicle.
• Ken Porter Auctions does NOT use any subcontractors related to auction s,ices
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Ken Porter
A U C T 1 p p g
Established 1962
2114o S. Avalon . Mvon,
- J
�RAC1 CrONT ��
OWWM OR MANAGER
NAME Ray Clark�ge
President
OFF PHONE (818) 780.8272
FAX (818)258.1378
HOUR$AwAmAmuSam-spm Monday-FrfdaY
Wfx CT
RAWT
Ell
MAW Gem Govphau
General Manager
IC!PHONE (310)353.7140
CELL (310)813-9501
FAX (310)353-5740
AvftPA" Sim-spm Monday-Fridey
ILATE CONT let
NAME Craig Alford
TITLE Markedng Director
OFFICE PHONE (310)353-7140
CELL (818)339.1875
FAX (310)353.5740
HOURS AVSam-5pm Monday-Frklay
EMiEROENCY CONTACTt AFTQt!HDU I CONT—
NAMN Craig ANbM ander Gone C3ovareau
TITLE
OFFICE PHONE
CELL Above Numbers
FAX
HOUR$AVAI AaLe 24/7 7 days a vftek
l
EXHIBIT C
Fee Schedule
Auctioning service pricing shall include all costs for the services described. Pries shah remain in
effect for the term of the contract.
1. Vehicles
FEE TO PROVIDE AUCTIONING SERVICES IS:
2.5%OF GROSS PROCEEDS PAID BY THE CITY
10%OF GROSS PROCEEDS PAID BY THE BIDDER/BUYER
TOTAL*: 12.5%OF GROSS PROCEEDS PAID TO THE AUCTIONEER
Tom tya ownhickade rcheck,
wWTnnoutWan. sNety Inapeed*n,intertode:q W cleaninv.Deads #ftwm and 0&4AN q,
and
2. Fumiture
FEE TO PROVIDE AUCTIONING SERVICES IS:
10%OF GROSS PROCEEDS PAID BY THE CITY
10%OF GROSS PROCEEDS PAID BY THE BIDDERIBUYER
TOTAL*: 20%OF GROSS PROCEEDS PAID TO THE AUCTIONEER
*Tom fie must Include advwU*Iny and shippingltranspartagan.
I Equipment and M18c. Supplies
FEE TO PROVIDE AUCTIONING SERVICES IS:
2.5% OF GROSS PROCEEDS PAID BY THE CITY
10%OF GROSS PROCEEDS PAID BY THE BIDDER/BUYER
TOTAL*: 12.5%OF GROSS PROCEEDS PAID TO THE AUCTIONEER
.Total fee must Include adworiHin4 and ship onWtanep4rwan.
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EXHIBIT "D"
WORKERS'COMPENSATION INSURANCE CERTIFICATION
Every employer, except the State, shall secure the payment of compensation in one or more of
the following ways:
(a) By being insured against liability to pay compensation in one or more insurer duty
authorized to write compensation insurance in this State.
(b) By securing from the Director of Industrial Relations, a certificate of consent to
self-insure, either as an individual employer or as one employer in a group of
employers,which may be given.upon furnishing proof satisfactory to the Director
of Industrial Relations of ability to self-insure and to pay any compensation that
may become due to his or her employees.
I am aware of the provisions of Section 3700 of the Labor Code which requires every employer
to be insured against liability for Workers' Compensation or to undertake self-insurance in
accordance with the provisions of that Code, and I will comply with such provisions before
commencing the performance of the work of this Agreement.(Labor Code§1861).
KEN ONS
Date:
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