HomeMy WebLinkAboutAUCTIONS PLUS INC. 1-2005INSURANCE NOT iJN PLE
WORK MAY NOT PROCEED
CLERK OF COUNCIL
DATE: 6 `7-`5
C : FrnS
(b O L-4vtr')
A- 2005 -091
AUCTIONEER AGREEMENT
THIS AGREEMENT, made and entered into this v�� a/ day of MAT, 2005 by
and between Auction Plus Inc. a California Corporation (hereinafter "Auctioneer "), and the City
of Santa Ana, a charter city and municipal corporation organized and existing under the
Constitution and laws of the State of California (hereinafter "City").
RECITALS
A. The City desires to retain an Auctioneer having special skill and knowledge in the field
of municipal auction services.
B. Santa Ana Municipal Code Chapter 2 -703.1 provides that the Executive Director of
Finance may employ professional auctioneers and clerks to conduct auctions who
shall receive compensation solely out of the proceeds.
C. Auctioneer represents that Auctioneer is able and willing to provide such services to the
City.
D. In undertaking the performance of this Agreement, Auctioneer represents that it is
knowledgeable in its field and that any services performed by Auctioneer under this
Agreement will be performed in compliance with such standards as may reasonably be
expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
Auctioneer shall perform those services as set forth in Exhibit A (Auction Plus hic. Proposal
Response) as well as Exhibit C (City of Santa Ana Request for Proposal and any Addendums
thereto) to this Agreement as well as the services listed in this section. In the event of a conflict
between the terms of this Agreement and any attachments and /or Exhibits hereto, the terms of
this Agreement shall prevail.
City hereby retains Auctioneer to conduct a public auctions of the City's surplus personal
property and Auctioneer hereby agrees to conduct such auctions as said personal property is
received by Auctioneer, and such auctions to be on the following terms and conditions:
1) The public auction will be held on the premises of Auctioneer as hereinafter provided. In
the event the City determines said auction should be held at a different location, City and
Auctioneer may agree in writing executed by the Executive Director of Finance and the City
Attorney to the new location.
2) All Sales Shall Be For Cash and the purchase price shall be paid forthwith upon the sale
being declared by the Auctioneer.
3) Auctioneer shall sell City surplus property to the highest bidder unless otherwise
previously agreed upon by the City and Auctioneer in writing executed by the Executive Director
of Finance and the City Attorney.
4) Auctioneer shall at its own expense provide for all advertising.
5) Auctioneer shall furnish and provide at its own expense such clerks and assistance
necessary for the proper conduct of the sales.
6) As soon as reasonably possible after the completion of the sale, Auctioneer will make full
settlement with the City less Auctioneer' commission in accordance with this Agreement.
7) City shall execute and deliver any and all bills of sale or other documents which may be
necessary to evidence transfer of ownership of any surplus item or items or otherwise to
effectuate the terms of this Agreement.
8) Auctioneer will announce at the sale that all surplus items are being sold as is and without
any warranty, expressed or implied, of merchantability or otherwise except as to title and the
accuracy of the description in the public auction.
9) Auctioneer agrees to receive any and all surplus items regardless of condition.
10) Auctioneer will to respond to a request for pick -up of surplus personal property within 24
hours to schedule a time and place for pickup of said property.
11) Auctioneer agrees to work with the City to set a minimum bid on any all property subject
to this agreement.
12) If minimum bid is not met after (2) auctions. Auctioneer agrees to contact the City to
determine whether to continue with said minimum bid or to reduce the minimum BID amount.
Any determination to reduce the minimum bid amounts shall be evidenced by a writing signed
by the City and Auctioneer.
13) Auctions Plus will not charge the City a fee or commission for auctioneer services.
2. COMPENSATION
a. City agrees to pay, and Auctioneer agrees to accept as total payment for its services, a sum
equal to ten percent (10 %) of the sale price of vehicles and equipment sold and fifteen percent
(15 %) of the sale price for miscellaneous surplus property. City shall at its discretion determine
whether any property subject to this agreement is considered vehicles and equipment or
miscellaneous property. Said determination will be made before the items are transferred to
Auctioneer. Said percentage shall be retained by Auctioneer from the proceeds of sale, with the
balance being remitted to the City within fifteen (15) calendar days after the sale. At a
minimum, Auctioneer shall submit with the sale proceeds a detailed statement documenting lot
numbers, vehicle identification numbers, and/or any City issued property tracking numbers, the
amounts paid for each item, purchasers' name(s) and addresses, and the amount of the
Auctioneer's commission. City may require other tracking information or purchaser information
at its sole discretion.
3. TERM
This Agreement shall commence on the date first written above and terminate on June 1,
2007, unless terminated earlier in accordance with Section 12, below. City may, at its option,
extend this agreement for 2 additional one -year periods subject the same terms and conditions
contained herein. The term of this Agreement may be extended upon a writing executed by the
Executive Director of Finance and Management and the City Attorney.
4. INDEPENDENT CONTRACTOR
Auctioneer shall, during the entire term of this Agreement, be construed to be an
independent contractor and not an employee of the City. This Agreement is not intended nor
shall it be construed to create an employer - employee relationship, a joint venture relationship, or
to allow the City to exercise discretion or control over the professional manner in which
Auctioneer performs the services which are the subject matter of this Agreement; however, the
services to be provided by Auctioneer shall be provided in a manner consistent with all
applicable standards and regulations governing such services. Auctioneer shall pay all salaries and
wages, employer's social security taxes, unemployment insurance and similar taxes relating to
employees and shall be responsible for all applicable withholding taxes.
5. INSURANCE
Prior to undertaking performance of work under this Agreement, Auctioneer shall
maintain and shall require its subcontractors, if any, to obtain and maintain insurance as
described below:
a. Commercial General Liability Insurance. Auctioneer shall maintain commercial
general liability insurance naming the City, its officers, employees, agents, volunteers and
representatives as additional insured(s) and shall include, but not be limited to protection against
claims arising from bodily and personal injury, including death resulting therefrom and damage
to property, resulting from any act or occurrence arising out of Auctioneer's operations in the
performance of this Agreement, including, without limitation, acts involving vehicles. The
amounts of insurance shall be not less than the following: single limit coverage applying to
bodily and personal injury, including death resulting therefrom, and property damage, in the total
amount of $1,000,000 per occurrence. Auctioneer shall supply City with a fully executed
additional insured endorsement in substantially the form attached hereto as Exhibit B upon
execution of this Agreement and shall be approved in form by the City Attorney.
b. Business automobile liability insurance, or equivalent form, with a combined single
limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for
owned, hired and non -owned automobiles.
c. Worker's Compensation Insurance. In accordance with the provisions of Section 3300
of the Labor Code, Auctioneer, if Auctioneer has any employees, is required to be insured
against liability for worker's compensation or to undertake self - insurance. Prior to commencing
the performance of the work under this Agreement, Auctioneer agrees to obtain and maintain any
employer's liability insurance with limits not less than $1,000,000 per accident.
d. If Auctioneer is or employs a licensed professional such as an architect or engineer:
Professional liability (errors and omissions) insurance, with a combined single limit of not less
than $1,000,000 per claim.
e. The following requirements apply to the insurance to be provided by Auctioneer
pursuant to this section:
(i) Auctioneer shall maintain all insurance required above in full force and
effect for the entire period covered by this Agreement.
(ii) Certificates of insurance shall be furnished to the City upon execution of
this Agreement and shall be approved in form by the City Attorney.
(iii) Certificates and policies shall state that the policies shall not be canceled
or reduced in coverage or changed in any other material aspect without
thirty (30) days prior written notice to the City.
f. If Auctioneer fails or refuses to produce or maintain the insurance required by this
section or fails or refuses to furnish the City with required proof that insurance has been procured
and is in force and paid for, the City shall have the right, at the City's election, to forthwith
terminate this Agreement. Such termination shall not effect Auctioneer's right to be paid for its
time and materials expended prior to notification of termination. Auctioneer waives the right to
receive compensation and agrees to indemnify the City for any work performed prior to approval
of insurance by the City.
6. INDEMNIFICATION
Auctioneer agrees to and shall indemnify and hold harmless the City, its officers, agents,
employees, Auctioneers, special counsel, and representatives from liability: (1) for personal
injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims
for personal injury, including health, and claims for property damage, which may arise from the
direct or indirect operations of the Auctioneer or its contractors, subcontractors, agents,
employees, or other persons acting on their behalf which relates to the services described in
section 1 of this Agreement; and (2) from any claim that personal injury, damages, just
compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects
arising from this Agreement. This indemnity and hold harmless agreement applies to all claims
for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to
have been suffered, by reason of the events referred to in this Section or by reason of the terms
of, or effects, arising from this Agreement. The Auctioneer further agrees to indemnify, hold
harmless, and pay all costs for the defense of the City, including fees and costs for special
counsel to be selected by the City, regarding any action by a third party challenging the validity
of this Agreement, or asserting that personal injury, damages, just compensation, restitution,
judicial or equitable relief due to personal or property rights arises by reason of the terms of, or
effects arising from this Agreement. City may make all reasonable decisions with respect to its
representation in any legal proceeding.
7. CONFIDENTIALITY
If Auctioneer receives from the City information which due to the nature of such
information is reasonably understood to be confidential and/or proprietary, Auctioneer agrees
that it shall not use or disclose such information except in the performance of this Agreement,
and further agrees to exercise the same degree of care it uses to protect its own information of
like importance, but in no event less than reasonable care. "Confidential Information" shall
include all nonpublic information. Confidential information includes not only written
information, but also information transferred orally, visually, electronically, or by other means.
Confidential information disclosed to either party by any subsidiary and/or agent of the other
party is covered by this Agreement. The foregoing obligations of non -use and nondisclosure
shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is,
through no fault of the Auctioneer disclosed in a publicly available source; (c) is in rightful
possession of the Auctioneer without an obligation of confidentiality; (d) is required to be
disclosed by operation of law; or (e) is independently developed by the Auctioneer without
reference to information disclosed by the City.
8. CONFLICT OF INTEREST CLAUSE
Auctioneer covenants that it presently has no interests and shall not have interests, direct
or indirect, which would conflict in any manner with performance of services specified under
this Agreement.
9. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this
Agreement shall be in writing and shall be deemed to be properly given if delivered in person or
mailed by first class or certified mail, postage prepaid, or sent by telefacsimile or other
telegraphic communication in the manner provided in this Section, to the following persons:
To City:
Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M -30)
P.O. Box 1988
Santa Ana, CA 92702 -1988
telefacsimile (714) 647 -6956
With courtesy copies to:
and,
Executive Director of Finance and Management
City of Santa Ana
20 Civic Center Plaza (M -11)
P.O. Box 1988
Santa Ana, California 92702
telefacsimile (714) 647 -5400
City Attorney
City of Santa Ana
20 Civic Center Plaza (M -29)
P.O. Box 1988
Santa Ana, California 92702
telefacsimile (714) 647 -6515
To Auctioneer:
Auction Plus
13631 -D Harbor Blvd.
Garden Grove, CA 92842
A party may change its address by giving notice in writing to the other party. Thereafter,
any notice, tender, demand, delivery, or other communication shall be addressed and transmitted
to the new address. If sent by mail, any notice, tender, demand, delivery, or other
communication shall be effective or deemed to have been given three (3) days after it has been
deposited in the United States mail, duly registered or certified, with postage prepaid, and
addressed as set forth above. If sent by telefacsimile, any notice, tender, demand, delivery, or
other communication shall be effective or deemed to have been given twenty -four (24) hours
after the time set forth on the transmission report issued by the transmitting facsimile machine,
addressed as set forth above. For purposes of calculating these time frames, weekends, federal,
state, County or City holidays shall be excluded.
10. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and
Auctioneer, and supersedes any and all other agreements, oral or written, between the parties. In
the event of a conflict between the terms of this Agreement and any attachments hereto, the
terms of this Agreement shall prevail. This Agreement may not be modified except by written
instrument signed by the City and by an authorized representative of Auctioneer. The parties
agree that any terms or conditions of any purchase order or other instrument that are inconsistent
with, or in addition to, the terms and conditions hereof, shall not bind or obligate Auctioneer nor
the City. Each party to this Agreement acknowledges that no representations, inducements,
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.
11. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Auctioneer,
Auctioneer may not assign, transfer, delegate, or subcontract any interest herein without the prior
written consent of the City and any such assignment, transfer, delegation or subcontract without
the City's prior written consent shall be considered null and void. Nothing in this Agreement
shall be construed to limit the City's ability to have any of the services which are the subject to
this Agreement performed by City personnel or by other Auctioneers retained by City.
12. TERMINATION
This Agreement may be terminated by the City upon thirty (30) days written notice of
termination. In such event, Auctioneer shall be entitled to receive and the City shall pay Auctioneer
compensation for all services performed by Auctioneer prior to receipt of such notice of
termination, subject to the following conditions:
a. As a condition of such payment, the Executive Director may require Auctioneer to
deliver to the City all work product completed as of such date, and in such case such work product
shall be the property of the City unless prohibited by law, and Auctioneer consents to the City's use
thereof for such purposes as the City deems appropriate.
b. Payment need not be made for work which fails to meet the standard of performance
specified in the Recitals of this Agreement.
13. DISCRIMINATION
Auctioneer shall not discriminate because of race, color, creed, religion, sex, marital
status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited
by applicable law, in the recruitment, selection, training, utilization, promotion, termination or
other employment related activities. Auctioneer affirms that it is an equal opportunity employer
and shall comply with all applicable federal, state and local laws and regulations.
14. JURISDICTION - VENUE
This Agreement and all questions relating to its validity, interpretation, performance, and
enforcement shall be government and construed in accordance with the laws of the State of
California. This Agreement has been executed and delivered in the State of California and the
validity, interpretation, performance, and enforcement of any of the clauses of this Agreement
shall be determined and governed by the laws of the State of California. Both parties further
agree that Orange County, California, shall be the venue for any action or proceeding that may
be brought or arise out of, in connection with or by reason of this Agreement.
15. PROFESSIONAL LICENSES
Auctioneer shall, throughout the term of this Agreement, maintain all necessary licenses,
permits, approvals, waivers, and exemptions necessary for the provision of the services
hereunder and required by the laws and regulations of the United States, the State of California,
the City of Santa Ana and all other governmental agencies. Auctioneer shall notify the City
immediately and in writing of her inability to obtain or maintain such permits, licenses,
approvals, waivers, and exemptions. Said inability shall be cause for termination of this
Agreement.
16. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature hereinbelow has the power,
authority and right to bind their respective parties to each of the terms of this Agreement, and shall
indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to
City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn.
b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set
forth in the body of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year
first above written.
ATTEST:
Patricia E. Healy
ClerY of the Council
APPROVED AS TO FOIj :
Joseph . FletchreV/
City Attorney
RECOMMENDED FOR APPROVAL:
Francisco Gutierrez
Finance & Management Services Agency
CITY OF SANTA ANA
a municipal corporation of the
State of California
avid N. Ream
City Manager
Employer ID #: °
EXHIBIT B
ADDITIONAL INSURED ENDORSEMENT
FOR COMMERCIAL GENERAL LIABILITY POLICY
Insurance Company
This endorsement modifies such insurance as is afforded by the provisions of Policy
# relating to the following:
1. The City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92701; its
officers, employees, agents, volunteers and representatives are named as additional insureds
( "additional insureds ") with regard to liability and defense of suits arising from the operations
and uses performed by or on behalf of the named insured.
2. With respect to claims arising out of the operations and uses performed by or on
behalf of the named insured, such insurance as is afforded by this policy is primary and is not
additional to or contributing with any other insurance carried by or for the benefit of the
additional insureds.
3. This insurance applies separately to each insured against whom claim is made or
suit is brought except with respect to the company's limits of liability. The inclusion of any
person or organization as an insured shall not affect any right which such person or organization
would have as a claimant if not so included.
4. With respect to the additional insureds, this insurance shall not be cancelled, or
materially reduced in coverage or limits except after thirty (30) days written notice has been
given to the City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92701.
(Completion of the following, including countersignature, is required to make this endorsement
effective.)
Effective
Policy #
Issued to
this endorsement form as a part of
Named Insured
Countersigned by
Authorized Representative
Request For Proposal
AUCTIONEER SERVICES
RFP # 05 -006
Ism ed
February 2, 2005
Closing Location
City of Santa Ana, Purchasing Division, Fourth Floor, Room 429
20 Civic Center Plaza, Santa Ana, California 92701
Closing
February 16, 2005 at 5:00 p.m.
RFP Contact
Ed Riquier (714) 647 -3354
MANDATORY PRE -BID MEETING: February 10, 2005 @ 10:00 am
Meeting will be held at City Stores, 215 S. Center Street, Building A, Santa Ana, CA 92703
Please park in spaces adjacent to warehouse.
AUCTIONEER SERVICES FOR THE SALE OF UNCLAIMED AND
SURPLUS CITY PROPERTY
GENERAL DESCRIPTION
The City of Santa Ana is seeking auctioneer services to conduct public sale of City surplus
vehicles and surplus property. The term of the agreement shall be two (2) years with a
provision for up to three one -year renewals.
STANDARD TERMS AND CONDITIONS
PROPOSAL SUBMISSION
Proposals must be submitted to Purchasing Office in a sealed envelope showing on the
outside, the name of the bidder, "RFP# 05- 006 ", and date and time due. A
representative authorized to legally bind the vendor must sign proposals.
2. PROPOSAL WITHDRAWAL
Proposals may be withdrawn by written request at least one hour before the time set for
the opening.
3. LATEPROPOSALS
It is the responsibility of the bidder that any proposal submitted has sufficient time to be
received by the Purchasing Office prior to proposal due date and time. Late proposals
will be returned unopened.
4. REOUIRED DOCUMENTS
Bidder must submit one (1) original and 5 complete photocopies of each Proposal.
5. RIGHTS RESERVED
City of Santa Ana reserves the right to reject any or all proposals, separate bidders,
select more than one vendor or to waive any informality or technical defect in a
proposal.
6. CONTRACT
Bidder's signed proposal and written acceptance by the City shall constitute a binding
agreement to provide services as detailed herein (Successful Bidder). Successful bidder
will also be required to enter into a formal Contract with the City where more detailed
terms and conditions will be described.
BIDDER AGREEMENT
Submission of a signed proposal without deviations will be interpreted to mean that
bidder agrees to all the terms and conditions set forth in all of the documents that make
up this Request For Proposal. The City may reject any deviations noted by the bidder.
Page I of 8
1.0 SCOPE OF WORK
1.1 General vendor requirements and responsibilities include, but are not limited to,
the following:
SURPL US PREPARATION & PROCESSING
• The vendor will assume all liabilities, responsibilities and ownership upon
receipt of property and transfer of title.
• The Auctioneer is responsible for processing all Department of Motor
Vehicles (DMV) paperwork including vehicle ownership transfer, at no cost to
the City.
• The Auctioneer will provide designated City representative a listing of all
vehicles and items to be auctioned no less than (5) business days prior to the
scheduled auction date.
• Prior to auction, the Auctioneer will conduct adequate safety inspections on all
City vehicles, at no cost to the City. Any auction items requiring correction
must be reported prior to auction.
• The Auctioneer will provide at no charge to the City, minor detailing of
vehicles including washing and vacuuming, and shall correct any minor
problems that may effect the selling price of a vehicle, such as a dead battery,
flat tire, or any other minor problems. Items that are not corrected must be
reported prior to auction.
VENDOR COMMUNICATION
Auctioneer agrees to inform designated City representative of any
misunderstandings or miscommunications that the auctioneer may have with
a bidder regarding City property within two business days after bidding in
question.
• The Auctioneer agrees to inform designated City representative of any other
mode of sale different than the standard auction (i.e., internet sale, sealed
bid).
• The Auctioneer agrees to conduct public sale of CITY property held by
AUCTIONEER. In conducting said sale, AUCTIONEER assumes the
responsibility to advertise and shall pay all advertising costs including but
Page 3 of 8
through designated City representative . The auctioneer shall not pick -up any
items from, nor have any contact with the Police Department or any other
departments, without the authorization or supervision of the designated City
representative. Failure to obtain the proper authorization and supervision
shall invalidate the City's agreement.
• Auctioneer is responsible for providing adequate 24 -hour security for all
surplus items at the auction site and storage location.
Auctioneer shall identify location and provide access to Auctioneer's storage
facility and shall bear all costs related to said storage. AUCTIONEER shall
provide temporary storage for auction items at no charge to the City.
Auctioneer must notify City of any storage location or alternative
arrangements.
• Auctioneer agrees to move any and all surplus under accepted safety
standards and rules established by federal, state and local agencies.
SURPLUS LIQUIDATION
• The auctioneer will accept and agree to sell at public auction surplus
property regardless of type or condition.
The Auctioneer agrees to work with designated City representative to set a
minimum bid value on auction items.
• In the event that the minimum bid for a vehicle has not been met after two
auctions, Auctioneer agrees to inform designated City representative and
discuss lowering the minimum bid.
• City is not obligated to provide a minimum value of general or specialty
surplus items for auction throughout duration of contract. City reserves the
right to keep, auction, gift or dispose of surplus items and property as seen
fit.
CONTRACT OBLIGATION
Upon notification of successful bid, the Contractor awarded said bid
will be required to enter into a formal Agreement with the City. The
terms of which are described in the attached APPENDIX A.
Page 5 of 8
and address, lot(s) numbers, Police item identification numbers, price paid, and
any buyer premiums amounts paid.
3.0 PROPOSAL REQUIREMENTS
One (1) original and 5 complete copies of the proposals are due in the office of the City of
Santa Ana Purchasing Division, 20 Civic Center Plaza, 4th Floor, Room 429, no later than
5:00 pm, February 16, 2005.
Proposals shall include the following:
3.1 Organization, Credentials, and Experience
3.1.1 Provide a synopsis of the firm's history, including years in business.
3.1.2 Have valid and current permits and licenses for auction sale, business,
location and personnel.
11.3 Identify the manager and key personnel to be assigned for Auction
Services. Describe their qualifications, education, and representative
experience.
3.1.4 Provide a brief description of past experience with a range of
government surplus items involving auctions for public agencies having
populations greater than 100,000.
3.1.5 Description/exhibition of firm's financial stability including, but not
limited to: total years in operation and total number of years under
current ownership.
3.1.6 Three public client references.
3.1.7 Define and describe process or methods of maximizing revenue
generated from sale of City surplus property.
3.1.8 Detailed description of firm's compensation on sale of items and how
compensation differs depending on item or number of sale attempts.
3.2 Commitment
3.2.1 The proposal shall be GUARANTEED BY THE GENERAL
MANAGER AND COMPANY OWNER with the power to bind the
company in its proposal.
Page 7 of 8
Appendix A
AUCTIONEER AGREEMENT
THIS AGREEMENT, made and entered into this day of 2005 by
and between . a California (hereinafter "Auctioneer'), and the City of Santa
Ana, a charter city and municipal corporation organized and existing under the Constitution and
laws of the State of California (hereinafter "City ").
RECITALS
A. The City desires to retain a Auctioneer having special skill and knowledge in the field of
municipal auction services.
B. Auctioneer represents that Auctioneer is able and willing to provide such services to the
City.
C. In undertaking the performance of this Agreement, Auctioneer represents that it is
knowledgeable in its field and that any services performed by Auctioneer under this
Agreement will be performed in compliance with such standards as may reasonably be
expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
City hereby retains Auctioneer to conduct a public auction and Auctioneer hereby agrees to
conduct such auction in the next available auction of the personal property as received by
Auctioneers, and such auction to be on the following terms and conditions:
The public auction will be held on the premises of
provided.
Auctioneers as hereinafter
City hereby represents that City has sole and exclusive title to the above described property, has
the right to sell same and that the property is free, clear and unencumbered.
Auctioneer shall sell the property described above at absolute auction to the highest bidder unless
otherwise stated. Auctioneer shall have the right to group items for sale in lots as Auctioneer
deems best.
Auctioneer shall obtain and pay for such advertising as Auctioneer deems necessary and shall
furnish and provide at its own expense such clerks and assistance as Auctioneer deems necessary
for the proper conduct of the sale.
As soon as reasonably possible after the completion of the sale, and clearinq of all checks
tendered, Auctioneer will make full settlement with the City less Auctioneer' commission,
charges, or compensation or expenses in accordance with this Agreement. Auctioneer shall not
be responsible for the failure of a high bidder to consummate the purchase or to comply with the
Appendix A
remitted to the City within fifteen (15) calendar days after the sale. Auctioneer shall submit with
the sale proceeds a detailed statement documenting lot numbers, police item numbers, the
amounts paid for each item, purchasers' name(s) and addresses, and the amount of the
Auctioneer's commission.
UNEWW11 l
This Agreement shall commence on the date first written above and terminate on
2004, unless terminated earlier in accordance with Section 12, below. The term
of this Agreement may be extended upon a writing executed by the Executive Director of
Finance and Management and the City Attorney.
4. INDEPENDENT CONTRACTOR
Auctioneer shall, during the entire term of this Agreement, be construed to be an
independent contractor and not an employee of the City. This Agreement is not intended nor
shall it be construed to create an employer - employee relationship, a joint venture relationship, or
to allow the City to exercise discretion or control over the professional manner in which
Auctioneer performs the services which are the subject matter of this Agreement; however, the
services to be provided by Auctioneer shall be provided in a manner consistent with all
applicable standards and regulations governing such services. Auctioneer shall pay all salaries and
wages, employer's social security taxes, unemployment insurance and similar taxes relating to
employees and shall be responsible for all applicable withholding taxes.
5. INSURANCE
Prior to undertaking performance of work under this Agreement, Auctioneer shall
maintain and shall require its subcontractors, if any, to obtain and maintain insurance as
described below:
a. Commercial General Liability Insurance. Auctioneer shall maintain commercial
general liability insurance naming the City, its officers, employees, agents, volunteers and
representatives as additional insured(s) and shall include, but not be limited to protection against
claims arising from bodily and personal injury, including death resulting therefrom and damage
to property, resulting from any act or occurrence arising out of Auctioneer's operations in the
performance of this Agreement, including, without limitation, acts involving vehicles. The
amounts of insurance shall be not less than the following: single limit coverage applying to
bodily and personal injury, including death resulting therefrom, and property damage, in the total
amount of $1,000,000 per occurrence. Auctioneer shall supply City with a fully executed
additional insured endorsement in substantially the form attached hereto as Exhibit B upon
execution of this Agreement and shall be approved in form by the City Attorney.
b. Business automobile liability insurance, or equivalent form, with a combined single
limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for
owned, hired and non -owned automobiles.
Appendix A
judicial or equitable relief due to personal or property rights arises by reason of the terms of, or
effects arising from this Agreement. City may make all reasonable decisions with respect to its
representation in any legal proceeding.
CONFIDENTIALITY
If Auctioneer receives from the City information which due to the nature of such
information is reasonably understood to be confidential and/or proprietary, Auctioneer agrees
that it shall not use or disclose such information except in the performance of this Agreement,
and further agrees to exercise the same degree of care it uses to protect its own information of
like importance, but in no event less than reasonable care. "Confidential Information" shall
include all nonpublic information. Confidential information includes not only written
information, but also information transferred orally, visually, electronically, or by other means.
Confidential information disclosed to either party by any subsidiary and/or agent of the other
party is covered by this Agreement. The foregoing obligations of non -use and nondisclosure
shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is,
through no fault of the Auctioneer disclosed in a publicly available source; (c) is in rightful
possession of the Auctioneer without an obligation of confidentiality; (d) is required to be
disclosed by operation of law; or (e) is independently developed by the Auctioneer without
reference to information disclosed by the City.
8. CONFLICT OF INTEREST CLAUSE
Auctioneer covenants that it presently has no interests and shall not have interests, direct
or indirect, which would conflict in any manner with performance of services specified under
this Agreement.
9. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this
Agreement shall be in writing and shall be deemed to be properly given if delivered in person or
mailed by first class or certified mail, postage prepaid, or sent by telefacsimile or other
telegraphic communication in the manner provided in this Section, to the following persons:
To City:
Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M -30)
P.O. Box 1988
Santa Ana, CA 92702 -1988
telefacsimile (714) 647 -6956
With courtesy copies to:
Executive Director of Finance and Management
Appendix A
the City. Each party to this Agreement acknowledges that no representations, inducements,
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.
11. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Auctioneer,
Auctioneer may not assign, transfer, delegate, or subcontract any interest herein without the prior
written consent of the City and any such assignment, transfer, delegation or subcontract without
the City's prior written consent shall be considered null and void. Nothing in this Agreement
shall be construed to limit the City's ability to have any of the services which are the subject to
this Agreement performed by City personnel or by other Auctioneers retained by City.
12. TERMINATION
This Agreement may be terminated by the City upon thirty (30) days written notice of
termination. In such event, Auctioneer shall be entitled to receive and the City shall pay Auctioneer
compensation for all services performed by Auctioneer prior to receipt of such notice of
termination, subject to the following conditions:
a. As a condition of such payment, the Executive Director may require Auctioneer to
deliver to the City all work product completed as of such date, and in such case such work product
shall be the property of the City unless prohibited by law, and Auctioneer consents to the City's use
thereof for such purposes as the City deems appropriate.
b. Payment need not be made for work which fails to meet the standard of performance
specified in the Recitals of this Agreement.
13. DISCRIMINATION
Auctioneer shall not discriminate because of race, color, creed, religion, sex, marital
status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited
by applicable law, in the recruitment, selection, training, utilization, promotion, termination or
other employment related activities. Auctioneer affirms that it is an equal opportunity employer
and shall comply with all applicable federal, state and local laws and regulations.
14. JURISDICTION -VENUE
This Agreement and all questions relating to its validity, interpretation, performance, and
enforcement shall be government and construed in accordance with the laws of the State of
California. This Agreement has been executed and delivered in the State of California and the
validity, interpretation, performance, and enforcement of any of the clauses of this Agreement
shall be determined and governed by the laws of the State of California. Both parties further
agree that Orange County, California, shall be the venue for any action or proceeding that may
be brought or arise out of, in connection with or by reason of this Agreement.
Appendix A
EXHIBIT B
ADDITIONAL INSURED ENDORSEMENT
FOR COMMERCIAL GENERAL LIABILITY POLICY
Insurance Company
This endorsement modifies such insurance as is afforded by the provisions of Policy
# relating to the following:
1. The City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92701; its
officers, employees, agents, volunteers and representatives are named as additional insureds
( "additional insureds ") with regard to liability and defense of suits arising from the operations
and uses performed by or on behalf of the named insured.
2. With respect to claims arising out of the operations and uses performed by or on
behalf of the named insured, such insurance as is afforded by this policy is primary and is not
additional to or contributing with any other insurance carried by or for the benefit of the
additional insureds.
3. This insurance applies separately to each insured against whom claim is made or
suit is brought except with respect to the company's limits of liability. The inclusion of any
person or organization as an insured shall not affect any right which such person or organization
would have as a claimant if not so included.
4. With respect to the additional insureds, this insurance shall not be cancelled, or
materially reduced in coverage or limits except after thirty (30) days written notice has been
given to the City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92701.
(Completion of the following, including countersignature, is required to make this endorsement
effective.)
Effective
Policy # _
Issued to
this endorsement form as a part of
Named Insured
Countersigned by
Authorized Representative
Auctions Plus Inc.
CITY OF SANTA ANA
REQUEST FOR PROPOSAL # 05 -006
AUCTIONEERING SERVICES
PROPOSAL RESPONSE
Tuesday, February 15`h 2005
Submitted by:
Auctions Plus Inc.
13631 -D Harbor Blvd.
Garden Grove, CA 92842
(714) 539 -1297 Office
(714) 539 -1315 Fax
www.auctionspluss.com
socalauc(a),pacbell.net
COPY
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Auctions Plus Inc.
13631 -D Harbor Blvd.
P.O. Box 2246
Garden Grove, CA 92842
(714) 539 -1297 • (714)539 -1315 Fax • www.auctionspluss.com • socalauc@pacbell.net
February 15, 2005
City of Santa Ana
Purchasing Division M -16
20 Civic Center Plaza, RM 429
Post Office Box 1988
Santa Ana, CA 92702
RE: Request for Proposal Number 05 -006
Auctioneering Services
Auctions Plus Management has completed an extensive and thorough study of the Request for Proposal Project
Number 05 -006 proposal of Auctioneering Services. Auctions Plus hereby acknowledges full and complete
understanding of all terms and conditions set forth in the R.F.P. Auctioneering Services, (Section 1.0 Scope of
Work and Appendix "A" Auction Agreement). Auctions Plus hereby offers to provide, under all terms and
conditions so stated in R.F.P. Number 05 -006 auctioneering services, for all properly offered by the City of
Santa Ana. Auctions Plus will provide and perform said services in a diligent and professional manner and in
compliance with all state and local laws governing auctioneering (California Civil Code Section 1812.600
through 1812.608) and Department of Motor Vehicles statutes covering sale of vehicles.
Auctions Plus hereby tenders the following response to your proposal and request for services.
Respectfully Submitted,
1 �5 ' Lee Height
General Manager
Auctions Plus
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Re�uc -�+ For��t l 0� Gam_ ��en�lum �nrr►6er1 ba��l �b�� loo, 2C�5 - �c�n�ul�'��e�
Auctions Plus Inc.
Request For Proposal # 05 -006
City of Santa Ana
Auctioneering Services
Table of Contents
1. Company Synopsis and History.
2. Required Licenses and Recent Insurance Certificate.
Refer to Attachments # 1 -4 in the Appendix.
3. Management and Key Personnel
Qualifications, Education and Experience.
4. Company Experience with Government Agencies and Types of Surplus Property Managed for
them.
5. Company Financial Position.
Refer to Attachment # 5 in the Appendix
6. Client References,
7. Method for Maximizing Revenue from sale of City Surplus Property.
8. Company Compensation Plan for Property.
9. Appendix of Attachments
Attachment # 1
Dealers License
Attachment # 2
Auction Bond
Attachment # 3
City License
Attachment # 4
Insurance Certificate
Attachment # 5
Statement/Report of Independent CPA.
11
Request for Proposal Number 05 -006
City of Santa Ana
Auctioneering Services and the Liquidation of Surplus Miscellaneous Equipment
Please note that Auctions Plus Inc., will also be referred to as `AP' throughout the responses in the
following Request for Proposal.
PROPOSAL RESPONSE
3.1 Organization, Credentials and Experience
3.1.1 Provide a synopsis of the firm's history, including years in business.
Auctions Plus has been serving the Southern California area for over 25 years, providing
Auctioneering services, business and estate liquidations, asset disposal, including surplus and
' excess property of all types, vehicles, equipment, machinery, personal and real property. Our
company is bonded and registered with the California Secretary of State as an Auction Company.
We are a participating member, in good standing, with the National Auctioneers Association,
California State Auctioneers Association, Southern California Auctioneers Association, and the
National Association of Public Auto Auctions. We are licensed and bonded as California State
Auto Dealers. Please refer to Attachments # 1 -4 in Appendix.
' We are capable of performing equally efficient and professional services at our facilities or our
client's. We are computer and electronically equipped to assure quality service under all
circumstances. Our online merchandising techniques, coupled with our Internet Auction and Live
Internet Auction capabilities, place us on the forefront of our industry. Our staff consists of (12)
full time employees with over 50 years expertise in the auction service industry. This also
' includes in -depth sales, marketing and advertising experience. Our programs assure our clients
top dollar value for their assets.
Our auction sales are consistent and are continually increasing from year to year. `AP' has a
' consistent base of repeat customers and continues to attract new buyers with its
advertising and marketing strategies.
' 3.1.2 Have valid and current permits and licenses for auction sale, business, location and
personnel.
Please refer to Listed Attachments.
Attachment # 1: Dealers License
Attachment # 2: Auction Bond
Attachment # 3: City License
Attachment # 4: Insurance Certificate
3.1.3 Identify the manager and key personnel to be assigned for Auction Services. Describe their
qualifications, education and representative experience.
Auctions Plus is centrally located in the City of Garden Grove, making it easily and conveniently
accessible to its clients and customers. `AP' conducts weekly sales offering all types of vehicles,
equipment, machinery, and tangible personal property on behalf of City, County, State, Federal
Agencies and private industry.
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All `AP' personnel are well trained to handle all auction situations and pay special attention to
' client satisfaction. `AP' personnel have vast knowledge in all aspects of planning, implementing
and executing auction sales. This includes customer service, marketing, accounting, sales, DMV
rules and regulations, IntemetfWeb Page maintenance, market research and inventory
' management. All of `AP' management and marketing personnel are College graduates and have
extensive backgrounds in auction marketing, sales and business management.
3.1.4 Provide a brief description of past experience with a range of government surplus items
involving auctions for public Agencies having populations greater than 100,000.
' `AP' client list of government agencies with a population in excess of 100,000 include some of
the following:
'
• County of Los Angeles
• County of Orange
Our customer service is of the highest quality. `AP', upon award of contract, will provide a
Project Manager who will be responsible for your entire client needs. The Project Manager
(Manny Pichardo) will provide you with a personal cellular phone number, pager number, 800
number and a fax number for your use. The Project Manager will be at your disposal Monday
through Friday from 7 AM to 6 PM and weekends for emergency purposes. His responsibility
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will be to handle all your needs under contract and to follow up on service performance. He will
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provide regular reports to our Management staff allowing us to oversee the project effectively and
efficiently. Mr Pichardo is a college graduate and has over 15 years of experience in the auction
industry.
removed from the agencies and delivered to the auction facilities where they are safely stored,
All `AP' personnel are well trained to handle all auction situations and pay special attention to
' client satisfaction. `AP' personnel have vast knowledge in all aspects of planning, implementing
and executing auction sales. This includes customer service, marketing, accounting, sales, DMV
rules and regulations, IntemetfWeb Page maintenance, market research and inventory
' management. All of `AP' management and marketing personnel are College graduates and have
extensive backgrounds in auction marketing, sales and business management.
3.1.4 Provide a brief description of past experience with a range of government surplus items
involving auctions for public Agencies having populations greater than 100,000.
' `AP' client list of government agencies with a population in excess of 100,000 include some of
the following:
'
• County of Los Angeles
• County of Orange
• County of Santa Barbara
• City of Santa Ana
• City of Westminster
• City of Santa Maria
' The following is a list of the various types of property sold by `AP' on behalf of various
government agencies.
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Passenger Vehicles
Commercial Vehicles
• Heavy Equipment
Various Types of Personal Property
Police Seized Property
• Aircraft/Marine Craft
Construction & Contractor's Equipment
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Real Estate
`AP' successfully coordinates pick up dates and times for said agencies, as needed. Assets are
removed from the agencies and delivered to the auction facilities where they are safely stored,
inventoried, assigned lot numbers and seller asset numbers and scheduled for sale. Sold assets
are accounted for and reported to the agencies and net proceeds are promptly paid within contract
requirements. Un -Sold Inventories for said agencies are held over for the next scheduled auction.
Upcoming auctions for said agencies are continually advertised (2) weeks prior to each auction
with brochure mailing, Internet marketing and traditional advertising in trade publications and
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newspapers.
3.1.5 Description /exhibition of firm's financial stability including, but not limited to, total years
in operation and total number of years under current ownership.
Auctions Plus is well qualified financially to perform the services required by this Contract. `AP'
faces no financial problems or high debt obligations that could harm the firm and its ability to
successfully complete this project now or in the foreseeable future. `AP' anticipates no financial
limitations for the foreseeable future to include bankruptcies, office closures, impending mergers
or legal actions. `AP' currently faces no action, suit, proceeding or investigation by any court,
public board or agency arising out of the performance of its services. `AP' has in excess of 25
years experience in the auction industry with the last 12 years at its present location and with its
original ownership, management and staff.
Please see Independent Public Accountants Report. Please refer to Attachment # 5 in Appendix.
3.1.6 Three public client references.
Auctions Plus references include the following:
Government Agency
City of Westminster
County of Los Angeles
City of Santa Maria
Private Industry
• Kilroy Realty
• Clothestime Inc. Industries
• Anchor Bolt Corporation
3.1.7 Define and describe process or methods of maximizing revenue generated from sale of City
surplus property.
`AP' will be responsible for and will provide advertising for City sales in accordance with
California Civil Code 2080.4, to include preparation, expense, printing, mailing, flyers, ads, trade
publications and regional and local newspapers.
`AP' will provide a comprehensive advertising and marketing campaign generating awareness
and creating demand for City assets. `AP' will promote these auction events locally, nationally
and internationally via online and conventional channels, including brochures, direct mail, email
online flyers, print listings in newspapers, key after market trade publications and via one or more
key Web sites in a proprietary network of Internet marketing sites such as Yahoo B2B
Marketplace, U&gQ d or Ouline Asset Exchange, which are integrated with our Auction
management system and our online Auction catalogs. This network generates more than 10
million user visits monthly. `AP' will use it expertise and skills to select the appropriate sites for
City property and integrate several conventional and online marketing tactics to maximize
liquidity of the Auction events.
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`AP' is prepared to maximize the City's recovery value on surplus and liquidated assets through a
combination of time honored marketing tactics and exciting new online merchandising techniques
' designed to attract interest from a broad base of buyers not bound by the limitation of time and
geography. That gives us the best chance to generate awareness, create demand and sell assets at
fair market value, while maximizing the City's return on assets.
Detailed description of firm's compensation on sale of items and how compensation differs
depending on item or number of sale attempts.
Auctions Plus hereby agrees to all terms and conditions of Request for Proposal Number 05 -006
as outlined in the scope of work and Auction Agreement. `AP' will provide all such services to
the City in a timely and professional manner. `AP' will not charge the City a fee or commission
for its services. "AP" will rely exclusively on an Auction Fee of 10% (Ten - Percent) for vehicles
and equipment and 15% (Fifteen- Percent) on personal property, to be collected from the buyers at
the time of the sale.
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`AP' will execute this project by effectively combining the traditional auction methods of
marketing with the latest advancements in auction management technology, which are designed
to minimize time to market and maximize auction sales prices. Using the latest in turnkey
software and hardware to automate the complete life cycle of conventional auctions, our system
will enable us to execute efficient onsite auctions while seamlessly broadcasting to a virtually
unlimited number of potential buyers on the Internet who can bid against our onsite buyers.
`AP' will use its in -depth experience in marketing and sales for liquidation and disposal of all
City surplus assets. We are a full service auction company. We will prepare the assets for sale
(including appraisal and inspection services as needed), catalog the inventory and lot the items in
a manner designed to bring the highest prices.
`AP' is prepared to maximize the City's recovery value on surplus and liquidated assets through a
combination of time honored marketing tactics and exciting new online merchandising techniques
' designed to attract interest from a broad base of buyers not bound by the limitation of time and
geography. That gives us the best chance to generate awareness, create demand and sell assets at
fair market value, while maximizing the City's return on assets.
Detailed description of firm's compensation on sale of items and how compensation differs
depending on item or number of sale attempts.
Auctions Plus hereby agrees to all terms and conditions of Request for Proposal Number 05 -006
as outlined in the scope of work and Auction Agreement. `AP' will provide all such services to
the City in a timely and professional manner. `AP' will not charge the City a fee or commission
for its services. "AP" will rely exclusively on an Auction Fee of 10% (Ten - Percent) for vehicles
and equipment and 15% (Fifteen- Percent) on personal property, to be collected from the buyers at
the time of the sale.
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I affirm that by my signature I am an authorized Agent/Representative of the bidding company submitting
this proposal. I also affirm that I have the power, authority and right to legally bind the bidding company
in response to the Scope of the Work and terms of this Agreement with the Scope of Work including my
ability to perform the entire Scope of Work and meet all proposal requirements. My signature
indemnifies the City fully, including reasonable costs and attorney's fees for any injuries or damages to
the City, in the event that such authority or power is not, in fact, held by the signatory or is withdrawn.
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Auctions Plus Inc.
Name of Bidder (Person, Firm or Co
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Lee HeightC
Authorized Representative (Print Full Name)
Authorized Represents ive
to Bind Bid (Signature)
i
General Manager
Date
TITLE (please print)
13631 -1) Harbor Blvd Garden Grove CA 92842
ADDRESS
P.O. Box 2246 Garden Grove, CA 92842
ADDRESS
'
714 -539 -1297
714 -539 -1315
TELEPHONE NUMBER
FAX
NUMBER
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Request For Proposal # 05 -006
City of Santa Ana
Auctioneering Services
Attachment # I
Attachment # 2
Attachment # 3
Attachment # 4
Attachment # 5
f
APPENDIX
Dealers License
Auction Bond
City License
Insurance Certificate
Statement/Report of Independent CPA.
A Pubi,, Sm., Agency lie. No
VEMCLE DEALER 25674
Dare Iseued Expiration Dale
JAN is 20CS DEC 31* 2005
This li;;arise is valid forthe period inc!icatad above. This tnense shall be signed and di$ played in the office
at the address shown 7clow, pursuant to the California Vehicle Code.
rl�U
- -, AUCTIONS PLUS A/C USED
v. >;c 13631D HARBOR 5L
GARDEN GROVE CA 92643
F, ni C i;ot 10. - --
P.. Stl PU =LCEN L" 1
HRH
1 ---- - - - - -- INVOICE ---- - - - - --
HILB, ROGAL AND HAMILTON COMPANY
OF ATLANTA, INC.
200 Galleria Parkway NW
Suite 1000
Atlanta, Georgia 30339 -5966
Phone (770) 984 -9345
Invoice Date 11/06/03
Auctions Plus Invoice No. 82135
P O Box 1378 Bill -To Code 14AIGNOR
' E1 Toro, CA 92630 Client Code HAIGNOR
Inv Order No. 1 * 8 3 6 21
Named Insured:
Amount Remitted: $ PAID
1 Please'eWm this Pal.n with your PaymeM.
Make checks payable to: HRH Insurance of Atlanta, Inc.
Effective Date
Policy Perio
Coverage Description
Transaction Amount
01/21/04
01/21/04
-'reat American Ins. Co. - Bonds
to
Policy No. 715462003
01/21/07
*Renewal - Auctioneer Bond
CA AUCTIONEER RENEWAL THIS WILL
SERVE AS YOUR CONTINUATION
PAID
Invoice Number: 82135
`Premiums Due and Payable on Effective Date
' LAD Page: 1 ORIGINAL INVOICE
CITY OF GARDEN GROVE
BUSINESS TAX CERTIFICATE
THE PERSON, OR BUSINESS ENTITY NAMED BELOW IS GRANTED THIS BUSINESS TAX CERTIFICATE PURSUANT TO THE PROVISIONS OF THE CRY BUSINESS TAX ORDINANCE TO
ENGAGE IN, CARRY ON, OR CONDUCT THE BUSINESS, TRADE, CALLING, PROFESSION, EXHIBITION, OR OCCUPATION DESCRIBED BELOW. ISSUANCE OF THIS CERTIFICATE IS NOT
AN ENDORSEMENT NOR CERTIFICATION OF COMPLIANCE WITH OTHER ORDINANCES OR LAWS INCLUDING LAND USE OR ZONING LAWS. THIS CERTIFICATE IS ISSUED WITHOUT
VERIFICATION THAT THE APPLICANT IS SUBJECT TO OR EXEMPT FROM LICENSING BY THE STATE OF CALIFORNIA.
TYPE OF
CERTIFICATE NO.
BUSINESS AUCTION
CUP - 191 -94 RETAIL AUTO SALES 157314
BUSINESS
ADDRESS 13631 HARBOR BLVD D GARDEN GROVE, CA 92643 VALIDATION DATE
02/03/05
BUSINESS AUCTIONS PLUS
NAME
MAILING PO BOX 2246
ADDRESS GARDEN GROVE, CA 92842
POST IN A CONSPICUOUS PLACE -- NOT TRANSFERABLE
EXPIRATION DATE
12/31/05
AUCTSER -01 MEHI
ACORD,. CERTIFICATE OF LIABILITY INSURANCE
°12/16/200 '
PRODUCER (530) 665 -2777
Armstrong & Associates Insurance Services
a Petersen Ins. Agcy. License # 0650501
George
P.O. Box 1270
Woodland, CA 95776
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.
INSURERS AFFORDING COVERAGE
INSURED Auctions Plus
PO Box 2967
Garden Grove, CA 92642
INSURER AI Colony Insurance Com an
INSURER B: USF Ina rant" Com an
INSURER C:
(NEARER 0'.
INSURER E:
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, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR TYPE OF INSURANCE
POLICY NUMBER
POUCYEFFECTIVE
POLICY EXPIRATI ON
LIMITS
GENERAL UASIUTY
EACH OCCURRENCE
S 1 000 000
FIRE DAMAGE Aw one met
S 50 00
A
MP3177258
11111/2004
11111/2005
MED EXP(All Paa Ia M)
r 100
CLAIMS MADE OOCCUR
PERSONAL 3 ADV INJURY
S 1 000 DO
TXCOMMERCIA1,13ENERALLIABILITY
GENERAL AGGREGATE
S 2000000
GEN'L AGGREGATE LIMIT APPLIES
PER
PRODUCTS- COMPIOPAGG
S INCLUDE
X POLICY PRO-
jECT
LOC
AUTOMOBILE
LIABILITY
ANY AUTO
COMBINED SINGLE LIMIT
Ira ac em)
S
BODILY INJURY
(Par person)
!
ALL OWNED AUTOS
SCHEDULED AUTOS
BODILY INJURY
(Par aaiOeN)
3
HIRED AUTOS
NON -OWNED AUTOS
PROPERTY DAMAGE
(Pat aWCert)
$
GARAGE LIABILITY
AUTO ONLY - EA ACCIDENT
S 160,000
OTHER THAN EA ACC
$ Inc
B
X ANY AUTO
LGBGK1094BR1
11111/2004
11111/2005
$ 150.00
AUTO ONLY AGG
EXCESS LIABILITY
EACH OCCURRENCE
$
AGGREGATE
,
S
OCCUR CLAIMS MADE
V3
S
DEDUCTIBLE
3
RETENTION S
WORKERS COMPENSATION AND
WC $LIM OTH-
E. L. EACH ACCIDENT
EMPLOYERS' LIABILITY
S
E.1- DISEASE 6A EMPLOYEE
E.L DISEASE - POLICY LIMIT
S
OTHER
A
Electronic Data Processing
IM114099
11111/2004
11111/2005
$40,000
DESCRIPTION OF OPERATIONSILOCATIONSNEHICLE &EXCLUSIONS ADDED BY ENDORSEMENT /SPECIAL PROVISIONS
The City of Santa Ana, its officer, employees, agents and representatives are named as additional Insured.
CERTIFICATE HOLDER I X I ADDITIONAL INSURED' INSURER LETTER: CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
City of Santa Ana
DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN
20 Civic Center Plaza
NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL
Santa Ana, CA 92702-
IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR
REPRESENTATIVES.
AUTHORIZED REPRESENTATIVE 1,e A _ar
ACORD 2" (7/97)
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Report of Independent Public Accountant
1 have audited the consolidated balance sheet of Auctions Plus, as of March 31, 2004, and
the related consolidated statements of earnings, shareowner equity and cash flows for the
' last three years in the period ended March 31, 2004. These financial statements are the
responsibility of the Company's Management. My responsibility is to express an opinion
on these financial statements based on my audits.
' I conducted my audits in accordance with generally accepted auditing standards. Those
standards require that plan and perform the audit to obtain reasonable assurance about
' whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the
' financial statements. An audit also includes assessing, as well as evaluating the overall
financial statement presentation. I believe that my audits provide a reasonable basis for
my opinion.
In my opinion, the financial statements referred to above, present fairly, in all material
aspects, the financial position of Auctions Plus and the results of their operations and
their cash flows for the last three fiscal years in the period ended March 31, 2004, in
conformity with generally accepted accounting principles. Auctions Plus financial
position can be considered strong.
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' Anelia Manzanilla, CPA
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