Item 1.11 - Award of Contract to JJ Kane Assoc. Inc. DBA Ken Porter Auctions; RFP No. 20-008City of Poway
COUNCIL AGENDA REPORT
DATE: November 5, 2019
TO: Honorable Mayor and Members of the City Council 4.0,
FROM: Eric Heidemann, Interim Director of Public Works
CONTACT: Pat Ryan, Interim Assistant Director of Public Works for Maintenance
Operations
(858) 668-4705 or pryan@poway.org
SUBJECT:
Summary:
Award of Contract to J.J. Kane Associates, Inc., DBA Ken Porter
Auctions for Auction Services; RFP No. 20-008
A notice inviting bid proposals for auction services was duly advertised on September 5, 2019.
One responsive proposal was received and opened on October 3, 2019. J.J. Kane Associates,
Inc., DBA Ken Porter Auctions (Ken Porter Auctions) was determined to meet the evaluation
criteria and the needs of the Public Works Department. The first term of the contract is one year
and seven months beginning December 1, 2019, through June 30, 2021. The contract may be
extended through a total of three separate one-year extensions. The maximum length of the
contract would be up to five years.
Recommended Action:
It is recommended that the City Council award the Contract for Auction Services, RFP No.
20-008, to Ken Porter Auctions and authorize the City Manager to execute the necessary
documents.
Discussion:
On a regular basis the City reviews its inventory of property and periodically disposes surplus
items. The procedure for disposing City -owned property is detailed in City Policy and Procedure
No. 031, Disposal of City Property (Policy). This Policy establishes various conditions and
requirements in disposing surplus City -owned property, including whether an item is no
longer useful (obsolete), it is broken beyond repair, it cannot be safely or economically used
for any purpose, or any other documented reason determined by a City department director. The
Policy's objective is to streamline and expedite the disposal process to achieve additional
revenue and ensure an efficient use of staff resources. The City's Policy provides discretion to
the department director in determining which disposal method is utilized. Consquently, public
auction has been determined to be the best method to dispose of vehicles and equipment that
have been removed from service and no longer required for public use, as this method provides
the greatest return of funds for the City's investment.
The City's recent contract for auction services with TNT Auction expired June 30, 2019.
Consequently, a notice inviting bid proposals for auction services was duly advertised on
September 5, 2019. One responsive proposal was received and opened on October 3, 2019.
Ken Porter Auctions was determined to meet the evaluation criteria and the needs of the Public
1 of 24 November 5, 2019, Item # 1.11
Works Department. Ken Porter Auctions is a reputable auction company that has been providing
auction services to Southern California since 1962. They also provide auction services for a
number of San Diego County agencies, including the cities of Chula Vista, Escondido, La Mesa,
Oceanside and the County of San Diego.
For vehicles, Ken Porter Auctions does not charge any commission fees out of the final auction
purchase price. Ken Porter Auctions makes their profit by charging fees to buyers for attending
their auctions. For the disposal of equipment and miscellaneous items, Ken Porter Auctions
charges both a sales commission and buyer's premium.
The table below represents the various charges for vehicles and miscellaneous equipment.
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Cars, SUV's, & Pickup Trucks
0%
10% (Live)
14% (Online)
$60
Large Trucks & Other Vehicles
0%
10% (Live)
14% (Online)
$95 (1 ton +)
$190 (low bed trailer)
Office Furniture & Miscellaneous
Items
15%
10% (Live)
15% (Online)
$100
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$35Nehicle
Batte Re • lacement
$65Nehicle
Ken Porter Auctions has two facilities where it will conduct its surplus sales. Its 20,000 sq. ft.
facility in El Cajon will be utilized for the sale of all office and miscellaneous surplus equipment,
and its main auction facility in Jurupa Valley will be utilized for vehicle live/online auctions. Under
the proposed new contract, the initial term is one year and seven months beginning
December 1, 2019, through June 30, 2021. The contract may be extended through a total of
three separate one-year extensions. The maximum length of the contract would be up to five
years.
Environmental Review:
This action is not subject to review under the California Environmental Quality Act (CEQA).
Fiscal Impact:
The City will receive funds from the sale of the surplus vehicles and equipment. The funds
received will be deposited into the capital replacement fund (Acct No. 115010-78810). The exact
amount of the proceeds will not be known until the results from the auction are returned. All
proceeds will be used towards the purchase of replacement equipment.
Public Notification:
None.
2 of 24 November 5, 2019, Item # 1.11
Attachments:
A. Contract with J.J. Kane Associates, Inc., DBA Ken Porter Auctions
Reviewed/Approved By: Reviewed By:
Wendy I serman Alan Fenstermacher
Assistant City Manager City Attorney
Approved By:
Ch s
City Manager
3 of 24 November 5, 2019, Item # 1.11
City of Poway
STANDARD AGREEMENT FOR SERVICES
This Agreement, entered into this fifth day of November, 2019, by and between the
CITY OF POWAY (hereinafter referred to as "City") and J.J. Kane Associates, Inc., a New
Jersey corporation (hereinafter referred to as "Contractor").
RECITALS
WHEREAS, City desires to obtain the services of a private Contractor to perform Auction
Services for the disposal of surplus vehicles and miscellaneous equipment (Project); and
WHEREAS, Contractor is a(n) Auction company and has represented that Contractor
possesses the necessary qualifications to provide such services; and
WHEREAS, City has authorized the preparation of an agreement to retain the services of
Contractor as hereinafter set forth.
NOW, THEREFORE, IT IS MUTUALLY AGREED THAT CITY DOES HEREBY RETAIN
CONTRACTOR ON THE FOLLOWING TERMS AND CONDITIONS:
1. Scope of Services.
Contractor shall provide services as described in Exhibit "A" entitled "Special
Provisions" attached hereto and made a part hereof.
2. Compensation and Reimbursement.
City shall compensate and reimburse Contractor as provided in Exhibit "A" entitled
"Special Provisions" attached hereto and made a part hereof.
3. Term of Agreement.
The term of this Agreement shall be as described on Exhibit "A" entitled "Special
Provisions" attached hereto and made a part hereof.
4. Termination.
This Agreement may be terminated with or without cause by City. Termination
without cause shall be effective only upon 60 -day written notice to Contractor. During said 60 -
day period Contractor shall perform all contracting services in accordance with this Agreement.
This Agreement may be terminated by City for cause in the event of a material breach of this
Agreement, misrepresentation by Contractor in connection with the formation of this Agreement
or the performance of services, or the failure to perform services as directed by City. Termination
for cause shall be effected by delivery of written notice of termination to Contractor. Such
termination shall be effective upon delivery of said notice.
4 of 24 ATTACHMENT A November 5, 2019, Item # 1.11
5. Confidential Relationship.
City may from time to time communicate to Contractor certain information to enable
Contractor to effectively perform the services. Contractor shall treat all such information as
confidential, whether or not so identified, and shall not disclose any part thereof without the prior
written consent of the City. Contractor shall limit the use and circulation of such information, even
within its own organization, to the extent necessary to perform the services. The foregoing
obligation of this Paragraph 5, however, shall not apply to any part of the information that (i) has
been disclosed in publicly available sources of information; (ii) is, through no fault of Contractor,
hereafter disclosed in publicly available sources of information; (iii) is now in the possession of
Contractor without any obligation of confidentiality; or (iv) has been or is hereafter rightfully
disclosed to Contractor by a third party, but only to the extent that the use or disclosure thereof
has been or is rightfully authorized by that third party.
Contractor shall not disclose any reports, recommendations, conclusions or other
results of the services or the existence of the subject matter of this contract without the prior
written consent of the City. In its performance hereunder, Contractor shall comply with all legal
obligations it may now or hereafter have respecting the information or other property of any other
person, firm or corporation.
6. Office Space and Clerical Support.
Contractor shall provide its own office space and clerical support at its sole cost
and expense.
7. Covenant Against Contingent Fees.
Contractor declares that it has not employed or retained any company or person,
other than a bona fide employee working for Contractor, to solicit or secure this Agreement, that
it has not paid or agreed to pay any company or person, other than a bona fide employee, any
fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or
resulting from the award or making of the Agreement. For breach of violation of this warranty,
City shall have the right to annul this Agreement without liability, or, at its sole discretion, to deduct
from the Agreement price or consideration, or otherwise recover the full amount of such fee,
commission, percentage, brokerage fee, gift or contingent fee.
8. Ownership of Documents.
All memoranda, reports, plans, specifications, maps and other documents
prepared or obtained under the terms of this Agreement shall be the property of City and shall be
delivered to City by Contractor upon demand.
9. Conflict of Interest and Political Reform Act Obligations.
During the term of this Agreement Contractor shall not act as Contractor or perform
services of any kind for any person or entity whose interests conflict in any way with those of the
City of Poway. Contractor shall at all times comply with the terms of the Political Reform Act and
the local conflict of interest code. Contractor shall immediately disqualify itself and shall not use
its official position to influence in any way any matter coming before the City in which the
Contractor has a financial interest as defined in Government Code Section 87103. Contractor
represents that it has no knowledge of any financial interests which would require it to disqualify
itself from any matter on which it might perform services for the City.
5 of 24 November 5, 2019, Item # 1.11
"Contractor" means an individual who, pursuant to a contract with a state or local
agency:
(A) Makes a governmental decision whether to:
1. Approve a rate, rule or regulation;
2. Adopt or enforce a law;
3. Issue, deny, suspend, or revoke any permit, license, application,
certificate, approval, order, or similar authorization or entitlement;
4. Authorize the City to enter into, modify, or renew a contract provided
it is the type of contract that requires City approval;
5. Grant City approval to a contract that requires City approval and to
which the City is a party, or to the specifications for such a contract;
6. Grant City approval to a plan, design, report, study, or similar item;
7. Adopt, or grant City approval of, policies, standards, or guidelines
for the City, or for any subdivision thereof; or
(B) Serves in a staff capacity with the City and in that capacity participates in making
a governmental decision as defined in the Political Reform Act and/or
implementing regulations promulgated by the Fair Political Practices Commission,
or performs the same or substantially all the same duties for the City that would
otherwise be performed by an individual holding a position specified in the City's
Conflict of Interest Code.
DISCLOSURE DETERMINATION:
1. Contractor/Contractor will not be "making a government decision" or
"serving in a staff capacity" as defined in Sections A and B above.
No disclosure required.
❑ 2. Contractor/Contractor will be "making a government decision" or "serving
in a staff capacity" as defined in Sections A and B above. As a result,
Contractor/Contractor shall be required to file a Statement of Economic Interest
with the City Clerk of the City of Poway in a timely manner as required by law.
Department Director
10. No Assignments.
Neither any part nor all of this Agreement may be assigned or subcontracted,
except as otherwise specifically provided herein, or to which City, in its sole discretion, consents
to in advance thereof in writing. Any assignment or subcontracting in violation of this provision
shall be void.
11. Maintenance of Records.
Contractor shall maintain all books, documents, papers, employee time sheets,
accounting records, and other evidence pertaining to costs incurred and shall make such
materials available at its office at all reasonable times during the contract period and for three (3)
6 of 24 November 5, 2019, Item # 1.11
years from the date of final payment under this Agreement, for inspection by City and copies
thereof shall be furnished, if requested.
12. Independent Contractor.
At all times during the term of this Agreement, Contractor shall be an independent
contractor and shall not be an employee of the City of Poway. City shall have the right to control
Contractor only insofar as the results of Contractor's services rendered pursuant to this
Agreement; however, City shall not have the right to control the means by which Contractor
accomplishes such services.
13. Licenses, Permits, Etc.
Contractor represents and declares to City that it has all licenses, permits,
qualifications, and approvals of whatever nature that are legally required to practice its profession.
Contractor represents and warrants to City that Contractor shall, at its sole cost and expense,
keep in effect at all times during the term of this Agreement, any license, permit, or approval which
is legally required for Contractor to practice its profession.
14. Contractor's Insurance.
Contractor shall provide insurance as set forth in Exhibit "A" entitled "Special
Provisions" attached hereto and made a part hereof.
15. Indemnification.
(a) For Claims (as defined herein) other than those alleged to arise from Contractor's
negligent performance of professional services, City and its respective elected and appointed
boards, officials, officers, agents, employees and volunteers (individually and collectively,
"Indemnitees") shall have no liability to Contractor or any other person for, and Contractor shall
indemnify, protect and hold harmless lndemnitees from and against, any and all liabilities, claims,
actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and
expenses, including reasonable attorneys' fees and disbursements (collectively "Claims"), which
Indemnitees may suffer or incur or to which Indemnitees may become subject by reason of or
arising out of any injury to or death of any person(s), damage to property, loss of use of property,
economic loss or otherwise occurring as a result of Contractor's negligent performance under this
Agreement, or by the negligent or willful acts or omissions of Contractor, its agents, officers,
directors, sub -Contractors or employees.
(b) For Claims alleged to arise from Contractor's negligent performance of
professional services, lndemnitees shall have no liability to Contractor or any other person for,
and Contractor shall indemnify and hold harmless lndemnitees from and against, any and all
Claims that lndemnitees may suffer or incur or to which Indemnitees may become subject by
reason of or arising out of any injury to or death of any person(s), damage to property, loss of use
of property, economic loss or otherwise to the extent occurring as a result of Contractor's negligent
performance of any professional services under this Agreement, or by the negligent or willful acts
or omissions of Contractor, its agents, officers, directors, sub -Contractors or employees,
committed in performing any of professional services under this Agreement. For Claims alleged
to arise from Contractor's professional services, Contractor's defense obligation to Indemnitees
shall include only the reimbursement of reasonable defense costs and attorneys' fees to the
extent caused by Contractor's negligence.
7 of 24 November 5, 2019, Item # 1.11
(c) The foregoing obligations of Contractor shall not apply to the extent that the Claims
arise from the sole negligence or willful misconduct of City or its elected and appointed boards,
officials, officers, agents, employees and volunteers.
(d) In any and all Claims against City by any employees of the Contractor, anyone
directly or indirectly employed by it or anyone for whose acts it may be liable, the indemnification
obligation under this Section 15 shall not be limited in any way by any limitation on the amount or
type of damages, compensation or benefits payable by or for the Contractor under worker's
compensation acts, disability benefit acts or other employee benefit acts.
(e) Contractor shall, upon receipt of written notice of any Claim, promptly take all
action necessary to make a claim under any applicable insurance policy or policies Contractor is
carrying and maintaining; however, if Contractor fails to take such action as is necessary to make
a claim under any such insurance policy, Contractor shall reimburse City for any and all costs,
charges, expenses, damages and liabilities incurred by City in making any claim on behalf of
Contractor under any insurance policy or policies required pursuant to this Agreement.
(f) The obligations described in Section 15(a) through (e) above shall not be
construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which
would otherwise exist as to any party or person indemnified pursuant to this Section 15.
(g) The rights and obligations of the parties described in this Section 15 shall survive
the termination of this Agreement.
16. Assumption of Risk.
Except for injuries to persons caused by the willful misconduct of any Indemnitee and not
covered by insurance maintained, or required by this Agreement to be maintained, by Contractor:
(a) Contractor hereby assumes the risk of any and all injury and damage to the personnel
(including death) and property of Contractor that occurs in the course of, or in connection with,
the performance of Contractor's obligations under this Agreement, including but not limited to
Contractor's Scope of Services; and (b) it is hereby agreed that the Indemnitees are not to be
liable for injury or damage which may be sustained by the person, goods or property of Contractor
or its employees in connection with Contractor's performance its obligations under this
Agreement, including but not limited to Contractor's Scope of Services.
17. Contractor Not an Agent.
Except as City may specify in writing, Contractor shall have no authority,
expressed or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor
shall have no authority, expressed or implied, pursuant to this Agreement to bind City to any
obligation whatsoever.
18. Personnel.
Contractor shall assign qualified and certified personnel to perform requested
services. The City shall have the right to review and disapprove personnel for assignment to
Poway projects.
City shall have the unrestricted right to order the removal of any person(s)
assigned by Contractor by giving oral or written notice to Contractor to such effect.
8 of 24 November 5, 2019, Item # 1.11
Contractor's personnel shall at all times comply with City's drug and alcohol
policies then in effect.
19. Notices.
Notices shall be given as described on Exhibit "A" entitled "Special Provisions"
attached hereto and made a part hereof.
20. Governing Law, Forum Selection and Attorneys' Fees.
This Agreement shall be governed by, and construed in accordance with, the laws
of the State of California. Each party to this Agreement consents to personal jurisdiction in San
Diego County, California, and hereby authorizes and accepts service of process sufficient for
personal jurisdiction by first class mail, registered or certified, postage prepaid, to its address for
giving notice as set forth in Exhibit "A" hereto. Any action to enforce or interpret the terms or
conditions of this Agreement shall be brought in the Superior Court in San Diego County, Central
Division, unless the parties mutually agree to submit their dispute to arbitration. Contractor hereby
waives any right to remove any such action from San Diego County as is otherwise permitted by
California Code of Civil Procedure section 394. The prevailing party in any such action or
proceeding shall be entitled to recover all of its reasonable litigation expenses, including its expert
fees, attorneys' fees, courts costs, arbitration costs, and any other fees. Notwithstanding the
foregoing, in the event that the subject of such an action is compensation claimed by Contractor
in the event of termination, Contractor's damages shall be limited to compensation for the 60 -day
period for which Contractor would have been entitled to receive compensation if terminated
without cause, and neither party shall be entitled to recover their litigation expenses.
21. Gender.
Whether referred to in the masculine, feminine, or as "it," "Contractor" shall mean
the individual or corporate Contractor and any and all employees of Contractor providing services
hereunder.
22. Counterparts.
This Agreement (and any amendments) may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which, together, shall constitute one and the
same instrument. Documents delivered by telephonic facsimile transmission shall be valid and
binding.
23. Entire Agreement.
This Agreement shall constitute the entire understanding between Contractor and
City relating to the terms and conditions of the services to be performed by Contractor. No
agreements, representations or promises made by either party, whether oral or in writing, shall
be of any force or effect unless it is in writing and executed by the party to be bound thereby.
24. Certification and Indemnification Regarding Public Employees'
Retirement Law/Pension Reform Act of 2013.
Contractor hereby certifies that all persons providing services to City by Contractor
are not current members of the California Public Employees' Retirement System (CaIPERS) and
shall not become members of CaIPERS while providing services to City.
9 of 24 November 5, 2019, Item # 1.11
Contractor further provides that in the event Contractor assigns a retired annuitant
receiving a pension benefit from CaIPERS to perform services for City, the retired annuitant is in
full compliance with Government Code section 7522.56. A copy of Government Code section
7522.56 is attached hereto as Exhibit "B."
Further, Contractor hereby fully and unconditionally indemnifies City from all
penalties, fees, employer and employee contributions, or any other assessments imposed by
CaIPERS in the event CaIPERS determines the person assigned by Contractor to provide
services to City has been misclassified.
25. Severabilit
If any provision of this Agreement is determined by any court of competent jurisdiction or
arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall, if possible, be
construed as though more narrowly drawn, if a narrower construction would avoid such invalidity,
illegality, or unenforceability or, if that is not possible, such provision shall, to the extent of such
invalidity, illegality, or unenforceability, be severed, and the remaining provisions of this
Agreement shall remain in effect.
(Remainder of page intentionally left blank)
10 of 24 November 5, 2019, Item # 1.11
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the
date first above written.
CITY OF POWAY J.J. Kane Associates, Inc., dba Ken Porter
Auctions
By: By:
Chris Hazeltine, City Manager Gene Govoreau, Auctions Operations Manager
Date:
ATTEST:
Faviola Medina, City Clerk
APPROVED AS TO FORM:
By:
Alan Fenstermacher, City Attorney
Date:
11 of 24 November 5, 2019, Item # 1.11
"SPECIAL PROVISIONS"
EXHIBIT "A"
A. Scope of Services.
Contractor agrees to perform contracting services as required by City, which shall
consist of the auctioneer services further described in the Scope of Services submitted with the
proposals dated September 30, 2019, which is included in this document as Attachment 1, and
incorporated by reference, as if its contents were fully set forth herein. Contractor shall provide
the necessary qualified personnel to perform the services.
B. Compensation and Reimbursement.
City shall pay Contractor a fee in accordance with the Fee Proposals submitted
with the proposals dated September 30, 2019, which are included in this document as Attachment
2. Contractor's fee shall include and Contractor shall be responsible for the payment of all federal,
state, and local taxes of any kind which are attributable to the compensation received.
C. Term of Agreement.
This Agreement shall be effective from the period commencing December 1, 2019,
and ending June 30, 2021, unless sooner terminated by City as provided in the section of this
Agreement entitled "Termination." This Agreement may be extended for up to three additional
one-year periods upon approval in writing of the City Manager and Contractor. Upon expiration
or termination of this Agreement, Contractor shall return to City any and all equipment, documents
or materials and all copies made thereof which Contractor received from City or produced for City
for the purposes of this Agreement.
D. Contractor's Insurance.
1. Coverages:
Contractor shall obtain and maintain during the life of this Agreement all of
the following insurance coverages:
(a) Comprehensive General Liability, including premises -operations,
products/completed, broad form property damage, and blanket contractual liability with the
following coverages: General Liability $1,000,000 Bodily Injury and Property Damage combined
each occurrence and $2,000,000 aggregate.
(b) Automobile Liability, including owned, hired, and non -owned
vehicles: $1,000,000 combined single limit.
(c) Contractor shall obtain and maintain, during the life of the
Agreement, a policy of Professional Errors and Omissions Liability Insurance with policy limits of
not less than $1,000,000 combined single limits, per claim and annual aggregate.
(d) Workers' Compensation insurance in statutory amount. All of the
endorsements which are required above shall be obtained for the policy of Workers'
Compensation insurance.
12 of 24 November 5, 2019, Item # 1.11
2. Endorsements:
Endorsements shall be obtained so that each policy contains the following
three provisions:
(a) Additional Insured. (Not required for Professional Errors and
Omissions Liability Insurance or Workers' Compensation.)
"City of Poway and its elected and appointed boards, officers, agents, and
employees are additional insureds with respect to this subject project and contract with City."
(b) Notice.
"Said policy shall not terminate, nor shall it be canceled, until thirty (30)
days after written notice is given to City."
(c) Primary Coverage.
"The policy provides primary coverage to City and its elected and appointed
boards, officers, agents, and employees. It is not secondary or in any way subordinate to any
other insurance or coverage maintained by City."
3. Insurance Certificates:
Contractor shall provide City certificates of insurance showing the insurance
coverages described in the paragraphs above, in a form and content approved by City, prior to
beginning work under this Agreement.
E. Notices.
All notices, billings and payments hereunder shall be in writing and sent to the
following addresses:
To City:
To Contractor:
City of Poway
P.O. Box 789
Poway, CA 92074
J.J. Kane Associates, Inc., dba Ken Porter Auctions
4510 Muth Way
Jurupa Valley, CA 92509
13 of 24 November 5, 2019, Item # 1.11
EXHIBIT "B"
Cal Gov Code § 7522.56
Deering's California Codes are current through all 1016 chapters of the 2018 Regular
Session and the November 6, 2018 Ballot Measures.
Deering's California Codes Annotated> GOVERNMENT CODE > Title 1 General > Division 7
Miscellaneous> Chapter 21 Public Pension and Retirement Plans > Article 4 California Public
Employees' Pension Reform Act of 2013
§ 7522.56. Provisions applicable to person receiving pension benefit from public
retirement system; Section supersedes conflicting provisions
(a)This section shall apply to any person who is receiving a pension benefit from a public
retirement system and shall supersede any other provision in conflict with this section.
(b) A retired person shall not serve, be employed by, or be employed through a contract
directly by, a public employer in the same public retirement system from which the retiree
receives the benefit without reinstatement from retirement, except as permitted by this
section.
(c) A person who retires from a public employer may serve without reinstatement from
retirement or loss or interruption of benefits provided by the retirement system upon
appointment by the appointing power of a public employer either during an emergency to
prevent stoppage of public business or because the retired person has skills needed to
perform work of limited duration.
(d)Appointments of the person authorized under this section shall not exceed a total for all
employers in that public retirement system of 960 hours or other equivalent limit, in a
calendar or fiscal year, depending on the administrator of the system. The rate of pay for the
employment shall not be less than the minimum, nor exceed the maximum, paid by the
employer to other employees performing comparable duties, divided by 173.333 to equal an
hourly rate. A retired person whose employment without reinstatement is authorized by this
section shall acquire no service credit or retirement rights under this section with respect to
the employment unless he or she reinstates from retirement.
(e)
(1)Notwithstanding subdivision (c), any retired person shall not be eligible to serve
or be employed by a public employer if, during the 12 -month period prior to an
appointment described in this section, the retired person received any unemployment
insurance compensation arising out of prior employment subject to this section with
a public employer. A retiree shall certify in writing to the employer upon accepting
an offer of employment that he or she is in compliance with this requirement.
14 of 24 November 5, 2019, Item # 1.11
(2)A retired person who accepts an appointment after receiving unemployment
insurance compensation as described in this subdivision shall terminate that
employment on the last day of the current pay period and shall not be eligible for
reappointment subject to this section for a period of 12 months following the last day
of employment.
(f)A retired person shall not be eligible to be employed pursuant to this section for a period
of 180 days following the date of retirement unless he or she meets one of the following
conditions:
(1)The employer certifies the nature of the employment and that the appointment is
necessary to fill a critically needed position before 180 days have passed and the
appointment has been approved by the governing body of the employer in a public
meeting. The appointment may not be placed on a consent calendar.
(2)
(A)Except as otherwise provided in this paragraph, for state employees, the state
employer certifies the nature of the employment and that the appointment is
necessary to fill a critically needed state employment position before 180 days
have passed and the appointment has been approved by the Department of
Human Resources. The department may establish a process to delegate
appointing authority to individual state agencies, but shall audit the process to
determine if abuses of the system occur. If necessary, the department may assume
an agency's appointing authority for retired workers and may charge the
department an appropriate amount for administering that authority.
(B)For legislative employees, the Senate Committee on Rules or the Assembly
Rules Committee certifies the nature of the employment and that the
appointment is necessary to fill a critically needed position before 180 days have
passed and approves the appointment in a public meeting. The appointment may
not be placed on a consent calendar.
(C)For employees of the California State University, the Trustees of the California
State University certifies the nature of the employment and that the appointment is
necessary to fill a critically needed position before 180 days have passed and
approves the appointment in a public meeting. The appointment may not be placed
on a consent calendar.
(3)The retiree is eligible to participate in the Faculty Early Retirement Program
pursuant to a collective bargaining agreement with the California State University
that existed prior to January 1, 2013, or has been included in subsequent agreements.
(4)The retiree is a public safety officer or firefighter hired to perform a function or
functions regularly performed by a public safety officer or firefighter.
(g)A retired person who accepted a retirement incentive upon retirement shall not be eligible
to be employed pursuant to this section for a period of 180 days following the date of
retirement and subdivision (f) shall not apply.
15 of 24 November 5, 2019, Item # 1.11
(h)This section shall not apply to a person who is retired from the State Teachers'
Retirement System, and who is subject to Section 24214, 24214.5 or 26812 of the
Education Code.
(i)This section shall not apply to (1) a subordinate judicial officer whose position, upon
retirement, is converted to a judgeship pursuant to Section 69615, and he or she returns to
work in the converted position, and the employer is a trial court, or (2) a retiree of the
Judges' Retirement System or the Judges' Retirement System Il who is assigned to serve in a
court pursuant to Section 68543.5.
History
Added Stats 2012 ch 296 15 (AB 340), effective January 1, 2013. Amended Stats 2013 ch 528
11 (SB 13), effective October 4, 2013 (ch 528 prevails); ch 76 § 75 (AB 383), effective January
1, 2013; Stats 2014 ch 238 1 (AB 2476), effective January 1, 2015.
Annotations
Notes
Amendments:
Note—
Amendments:
2013 Amendment:
Substituted (1) "have passed" for "has passed" in the first sentence of subds (0(1) and (0(2); (2)
"or firefighter hired to perform a function or functions regularly performed by a public safety
officer or firefighter" for "of firefighter" in subd (0(4); and (3) "Judges' Retirement System" for
"Judges' Retirement System I" in subd (i).
16 of 24 November 5, 2019, Item # 1.11
e6RA7/1V
Ken Porter
AUCTIONS
EST. 116
50YEARS
Project Work Plan
JJ Kane Associates, Inc. dba Ken Porter Auctions, herein referred to as KPA, proposes to
provide the following Auctioneer Services for the City of Poway, herein referred to as
consignor, upon finalization and acceptance of this proposal/contract.
The main contact person / Project Manager
Gene Govoreau Office: (310) 353-7140
Auction Operations Manager Cell: (310) 613-9501
KPA will provide the following services for Consignor with the understanding that the costs to
Consignor will be those as dictated on the separate sheet, located in the "Commission and
Fee Schedule" section of the proposal/contract. Unless otherwise requested and approved
by Consignor during the course of our agreement. KPA's services are provided as follows:
PAYMENT TYPES AND PROCEDURES
Ken Porter Auctions accepts payments in the form of Cash, Cashier's Check, Traveler's
Check, Money Order, Bank Wire or Guaranteed Check. KPA also excepts Credit Cards
during our Timed Auctions we have a 3% surcharge applied to purchases. Payments are
accepted during the 3 business days after a sale any items not paid for Bidder is Considered
a bad Bidder items are then No Sale'd and rerun in the next auction. Insufficient funds are
the Responsibility of KPA. All title work or assets are held until checks are cleared. No items
are released until funds are made sufficient.
SERVICES:
TRANSPORT OF VEHICLES AND/OR SURPLUS ITEMS
KPA will provide transportation service for all sale vehicles and or Items from the designated
Consignor location to KPA's auction facility. KPA will use company owned vehicles and
company drivers. The maximum response time by KPA following a request from the
Consignor for such transportation shall be two (2) working days. KPA will assume liability of
each vehicle and equipment at the time of pick-up from the Consignor. As each vehicle is
received, KPA will verify the vehicle identification number, year, make, model and odometer
reading and other needed information on and Equipment Inspection Report. KPA will
decommission each vehicle prior to transport.
KPA will be responsible for maintaining each vehicle delivered to the auction site in the same
condition as when it was received. In the event that the vehicle is damaged, lost, stolen, or
an accident occurs, KPA will either repair the vehicle at no cost to the Consignor or pay the
Consignor the value of the vehicle at the time the incident occurred.
17 of 24
November 5, 2019, Item # 1.11
Ken Porter
AUCTIONS
EST. 1962
CELBRAT/N '
•
erns
KPA maintains and has in-house access to an affiliated vehicle transportation service that
has a fleet of transportation vehicles varying from 1 to 9 unit Toad capacity. This provides
KPA with the benefit of immediate attention capability and control of pick-up and delivery
times.
KPA's fleet consists of 27 vehicles. We have four (4) 8 to 9 car haulers, five (5) Targe
equipment transports, two (2) stake bed trucks and sixteen (16) 45 -foot trailers for
miscellaneous items.
Consignor shall provide to KPA its vehicles, trailers, equipment and any other items for
auction, in a timely manner to provide for the highest impact on solicitation and presentation
through KPA's planned advertising campaign.
Consignor will provide a list of property to be auctioned to KPA by fax, e-mail or regular mail
as soon as possible. Consignor may make, and can submit, minor changes to said list at any
time up to three (3) days prior to and in advance of the auction date. Notwithstanding the
aforementioned, Consignor may withdraw property from said list upon written notice to KPA
three (3) days prior to the auction date.
Consignor shall provide to KPA, free and clear title and ownership documentation, if
applicable, within a timely manner, to allow KPA to confirm and address any fees, penalties,
lien status or other information that may inhibit or negatively affect the anticipated value of
the item or vehicle. Consignor agrees to deliver required documentation within three (3) days
of the sale date and acknowledges KPA's right to remove an item or vehicle from the sale
should the lack of said documentation be viewed as critical to transfer or anticipated worth of
such.
Consignor will maintain any records regarded as important or relative, outside of those
delivered by KPA. Consignor will also provide such documents as requested by KPA to
assist with compliance of duties set forth in this agreement. KPA will also comply with and
provide documentation of such to protect the Consignor's rights under the consignment
provisions of the Uniform Commercial Code and other such sales related documentation not
included in the reports otherwise provided to the Consignor.
Consignor warrants that all titles to property, if applicable, are free and clear of any liens or
encumbrances. It is further stipulated that all property shall be sold "As Is, Where Is" without
any warranty by the Consignor of KPA as to the condition or workability at the time of the
sale and that the buyers have purchased such property based on their own inspection and
assessment.
MARKETING PLAN
Ken Porter Auctions (KPA) will conduct and deliver an advertising campaign based on over
50 years of experience to produce the best event exposure and marketing to provide the
highest attendance and participation possible.
• Production of an effective auction flyer/brochure which is mailed out prior to each
auction to current and/or previous customers.
18 of 24 November 5, 2019, Item # 1.11
Ken Porter
AUCTIONS
EST. 1382
l ���y�Arrnrc��
150 AFts
• Extensive internet marketing campaign that consists of various worldwide Eblasts
• Social media marketing on sites such as Facebook, lnstagram and Twitter.
• Advertising in local and regional publications and/or market specific internet sites
• kenporterauctions.com and our parent company website jjkane.com
• Additional Advertising into various media for buyer specific items such as aircraft,
heavy machinery or other type items will be done to maximize the exposure and buyer
base to bring the highest dollar amount to the county.
KPA will maintain and update a KPA web site to promote the sale of Consignor's property
and to help attract the widest possible audience. All vehicles listings will be updated daily to
generate maximum interest. The full listing is available at our auction yard and on our web
site the Thursday prior to each auction. In addition, all sales will be posted to the
www.kenporterauctions.com web site by Monday evening following each sale for Consignor's
immediate use.
KPA shall ensure and solicit that all property will be available for public inspection two (2)
working days immediately preceding the auction sale date. No other public access will be
allowed. During the inspection period, KPA's personnel and security officers will be present
to supervise and oversee the viewing process. KPA agrees to wash and clean all vehicles
prior to inspection days and immediately prior to auction. Upon request by Consignor, KPA
will also provide a vehicle detail service for selected property prior to the auction.
SALES PREPARATION AND FINALIZATION
AUCTION PREPARATION - To prepare Consignor's vehicles for auction, KPA will at the
minimum perform the following:
- Complete an Equipment Inspection Report on each vehicle;
- Wash and vacuum interior and exteriors of vehicles;
- Have Smog and Safety tests made as required;
- Remove all exempt license plates and return to Consignor or Cut/destroy and recycle
- Place AS IS notice and a Lot Number on each vehicle.
Miscellaneous items will be sorted into the most saleable lots utilizing KPA's marketing and
auction expertise and experience. Consignor's items will be kept in separate lots from
others' lots. Then Uploaded to our Website for online and/or Live/internet auction sales
KPA, upon request by Consignor, or by research of vehicle's DMV status through their in-
house State of California DMV research information, will obtain a smog certification test for
vehicles requiring such to transfer a title to a new buyer. The fees, if any, for arranging such
services will be charged by KPA to the buyer. In the event the car does not pass the
inspection, KPA will provide Consignor with the estimated cost to repair or modify the vehicle
to comply for certification. Upon receipt of said estimate, Consignor will either advise KPA to
repair or not repair the vehicle to comply. In the event, the repair is not authorized, and the
car remains in the auction, KPA will clearly label, announce and stipulate the vehicles current
19 of 24 November 5, 2019, Item # 1.11
Ken Porter
AUCTIONS
EST. 19,62
ORATIN '
50 YEARS I
inability to meet the safety or smog certification standards and such vehicles will be sold only
to Dealers, Dismantlers or out of state buyers.
KPA agrees to provide all needed equipment and devices to conduct and facilitate
the event. In addition, KPA will provide all needed personnel to setup/teardown auction
equipment, provide all auction related administrative services, marketing, security and
miscellaneous services to market and conduct event.
KPA agrees to comply, obtain and qualify for any and all local, county, state or federal rules
and regulations that may be required to conduct and solicit the event in the State of
California. Any applicable event mandates shall include and comply with all dictated
provisions that may apply from the Bulk Sales Laws and the like, including any required bond
or payment of fees that may be set forth for such.
VEHICLE TITLE WORK PROCESSING
KPA is a California licensed used car dealer and performs all the required function with its in
house staff. Currently, KPA is processing over 600 such transactions per month.
Consignor's DMV paperwork will be processed with the other like transactions.
Upon receipt of title work from Consignor for vehicles to be sold, KPA will review and
prepare the documentation to assure all items are available for a smooth transfer. All
associated fees and mandates, such as smog and weight certifications, will be addressed
and obtained for the sale. At the sale, KPA will process the DMV paperwork of title transfer to
the new buyer's name and then coordinate the filing of the transfer paperwork with the DMV.
Ken Porter Auctions is in full compliance with new DMV Digital transmission of report of sales
and temp plate distribution.
THE AUCTION
KPA fully understands and always strives, through all of their events, to obtain and secure
the highest final bid amount from an individual for all items placed on the auction block. All
auction houses will acknowledge that their longevity and success is based on bringing the
most potential bidders together at an event to create the utmost competitive bidding scenario
on each item to provide the highest sale prices for Consignor. We, KPA, are fully confident
that our event process, developed from years of experience, will provide Consignor with this
comfortable state of mind.
KPA conducts live and online vehicle, equipment, as well as miscellaneous timed auctions
each month. KPA conducts periodic auctions at either on-site or at a site requested by a
consignor. KPA will provide all equipment, materials, accessories and labor required to
conduct the sales. This will include obtaining and maintaining all mandated licenses and
permits to conduct the events in accordance with all applicable laws. Event site will
accommodate all participants' needs in seating, restrooms, and food concessions. The
events will be conducted in a secured area with armed security present at all times.
Entrance to all events by potential buyers will be conducted at no charge to the individual.
Attendance at KPA's monthly auction events has ranged from 300 to 500 attendees per
20 of 24 November 5, 2019, Item # 1.11
CELERRATIN
Ken Porter
AUCTIONS
EST. 9362
so EAR=(
auction giving KPA an exceptional vehicle to bidder ratio. With the addition of our live online
auction our bidder attendance has reached a national to at times worldwide level bringing our
consignors assets to a national buyer base.
KPA will register potential bidders by completing a form documenting their identity and
contact information. In addition, they must acknowledge by signature their understanding of
the rules, procedures, the auction process, and payment terms. Then, and only then, will a
bidder receive their assigned Bidder Card to participate at the event. KPA may also require a
Bidder Deposit to ensure potential buyer's ability to fulfill a successful bid.
Sales of stipulated property, as set forth in our agreement, shall be made to the highest
registered bidder, unless the item has been assigned a minimum selling price, at Consignor's
sole discretion. As a licensed California car dealer, KPA will process any and all DMV
documentation required to transfer the ownership or title into the successful buyer's name.
Successful bidders will be charged a cash 10% Buyers Premium for each lot. Tax, License,
Document and Smog fees (if applicable) will also be added to the sale price.
After a bidder is awarded the high bid, they sign an agreement and place a deposit of not
less than 25% of the sale price. They then have until 5:OOp.m the following business day to
complete their payment in full in cash; cashier's check or personal checks when
accompanied by a correctly prepared bank "Letter of Guarantee". KPA also has the
capability to accommodate major credit cards for bidder convenience. Upon payment for
items, the buyer must remove all items by the end of the following business day, unless
otherwise approved by KPA.
KPA videotapes and/or audio tapes each auction event, recording from a position that will
provide a reasonable visual and audio quality for review. In the event any individual or
authority should request a viewing of such after the event, KPA shall provide a copy of the
videotape to Consignor, immediately upon request.
In the event any items are not purchased at a sale, all such items, unless otherwise directed
by Consignor, will be retained and re-entered into the next auction event conducted by KPA
on behalf of Consignor. This re-entry will be conducted at no cost to Consignor with the same
conditions of sale as if entered for the first time. Unless directed by Consignor, the items will
continue to rerun if unsold, until sold or termination of this agreement.
Money is Collected throughout Auction Day from Cashiers with amounts entered into our
Auction System with each transaction. Money is totaled at end of day and matched to a
Computer generated Balance sheet as well as to individual Cashiers Logs
PAYMENT
Upon finalization of all transactions of each event, KPA will provide Consignor a detailed
summary statement designated as "Final Auction Results". This statement will be
accompanied by a payment of gross proceeds, less applicable sales tax, DMV fees, or
any other fees and authorized expenses in compliance with this statement. This detailed
21 of 24 November 5, 2019, Item # 1.11
EI GRATIN( `
Ken Porter
AUCTIONS
ESV. 1962
report will also include item purchased, item sale price, and buyer name and address and a
copy of the Buyer's invoice. This report will be provided to Consignor no later than Ten (10)
workdays after the auction date.
KPA states and confirms that it is a licensed auctioneer in possession of a license issued by
the California Auctioneer Commission as well as possessing all other licenses as required by
State and Local Codes.
ONLINE SERVICES
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 the 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 data 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.
DEALER/CONSIGNOR 1 MEN PORTER AUCTION SERVICES
YOUR UPLOAD LIST:
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• A complete and detailed expense breakdown of each vehicle of item sold will accompany your
settlement check.
Online Auctions: Multiple ways to bid!
• 1st Live At Ken Porter Auctions Facility
• 2nd thru our Partnership with Proxibid expanding
Bidders to over 400,000 Potential Buyers. With
both Live Webcast and Timed Auctions
• Every Ken Porter Auction has the availability for
Live Online Auctions, Timed Auctions and
Prebidding to Live Events
1992 CATERPILLAR 558F WHEEL LOADER
LEA 50) 5e a Ur., 1:'04 of 1:9i
Mab. GMper
Udall 9.88000!84
019: 88000689
Veer: 1992
Hon 7.098
Steck is 205858
Onsite Owen Premum 15% Flue Internal Premium or 1% •
18%Buyer Premium Wee • Dont. AMIFM. AUTO. Power
Steering, 4WD. DIESEL. MAY 8E SUBJECT TO ARB
REGULATIONS. . more
2002 CASE 570 111%5
10111501 ,50(30.-. 105,10.10
Mab. Use
Seer ik JJOrm ar9,
VIN: 0160300Pa?
Wer. 2002
00009 2204
Moat 1:205818
Onake Buyers Premium 15% Mus Ramat Premium r 1% •
18% Buyer Premium Notes • 1009el, Power Steerin9, 20910.
DIESEL. MAY BE SUBJECT TO AR8 REGULAT10N8. TITLE
ONLY, E..,000
Nth OK 8 25,000,00
Y.1611f:UTIILE Alin
• War mm,umee
• 04100!Malta 1
MO 810:8 8,250.00
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22 of 24 November 5, 2019, Item # 1.11
APPENDIX B — COMPENSATION
PROPERTY DISPSOAL VEHICLES
CONTRACTOR WILL RETAIN THE FOLLOWING COMMISSION RATE FROM TOTAL
GROSS SALES
Section A — Commissions: As a percentage of sold gross
proceeds for surplus consigned. Buyer's premiums are
notpreferred.
Commission Rate
1.
Operating vehicles including cars, trucks, materials
handling or specially equipped vehicles, and trailers.
0%
2.
Non-operating vehicles including cars, trucks, and other
materials handling or specially equipped vehicles, and
trailers.
0%
3.
Miscellaneous materials, supplies, and equipment —
working or not.
4°10
4.
Buyer's Premium Percentage Live Auctions
10%
Buyer's Premium Percentage Online Auction
14%
_5.
Section B — Transportation Charges, to transport to the
auctioneer's facility
6.
Carrier Transport, multiple operating vehicles
$60
7.
Towing standard, single, operating & non-operating
vehicles
$60
8.
Loads on a Trailer, low bed
$190
9.
Large Trucks (over one ton) and Equipment
$95
Section C — Related Preparation Charges, for vehicle
related Services
10.
Safety and Smog Check, per vehicle
$ 0 /vehicle
11.
Removal of decals, bumper stickers, any identifiers of
City of Poway, per vehicle
$ 35 /vehicle
12.
Removal of Tight bar
$ 0 /vehicle
13.
Replace battery (including parts and labor)
$ 65 /vehicle
14.
Minor vehicle repairs
$Upon Approval/hour
15.
Parts Mark-Up Percentage (associated with mechanical
repairs)
0
Section D — Other (Please identify Additional Fees)
16.
17.
18.
23 of 24
November 5, 2019, Item # 1.11
APPENDIX B — COMPENSATION
PERSONAL PROPERTY
CONTRACTOR WILL RETAIN THE FOLLOWING COMMISSION RATE FROM TOTAL
GROSS SALES
Section A — Commissions: As a percentage of sold
gross proceeds for surplus consigned. Buyer's premium
is not preferred.
Commission Rate
1.
Auction Sales Commission
15%
2.
Buyer's Premium Percentage Live Auctions
10%
3.
Buyer's Premium Percentage Online Auction
15%
Section B — Incidental Services
4.
Transportation of Misc. Items from City of Poway
$100
5.
Appraiser Fee
$0
6.
Admin/handling fee for items released before sale
$0
Section C — Other (Please Identify Additional Fees)
7.
8.
9.
24 of 24
November 5, 2019, Item # 1.11