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PW Purchase and Hold Harmless AgrPURCHASE AND HOLD HARMLESS AGREEMENT THIS AGREEMENT is executed this i 5- - day of -- ' I t U`% , 209 , by the CITY OF SAN RAFAEL, a California municipal corporation whose address is 1400 Fifth Avenue, San Rafael, California, as SELLER, and the CITY OF JACKSON, a California municipal corporation, as BUYER. RECITALS WHEREAS, SELLER is the owner of certain police vehicles described as follows: 2012 Ford Expedition VIN: 1 FMJU 1 F50CEF21207 2011 Crown Victoria VIN: 2FABP7BV2BX122763 and all the terms of this Purchase and Hold Harmless Agreement refer to such vehicles. WHEREAS, BUYER operates a municipal law enforcement agency which has a need for and wishes to acquire the vehicles for its official business; NOW, THEREFORE, SELLER hereby sells the vehicles to BUYER, on the terms and with the representations set forth below: AGREEMENT 1. Purchase Price: The full purchase price for the vehicles shall be Seven Thousand Dollars ($7,000), payable upon delivery of the vehicles to BUYER. 2. BUYER agrees to take possession of the vehicles at 111 Morphew Street, San Rafael, California, within 30 days following execution of this Agreement. 3. BUYER acknowledges that SELLER makes no representations or warranties as to the condition of the vehicles or their fitness for BUYER'S intended purposes. By accepting delivery of the vehicles from SELLER, BUYER acknowledges that it has inspected the vehicles, accepts delivery of the vehicles in their "as -is" condition, and releases SELLER from any and all expenses attributable to the vehicles, or liability for loss, injury or damages to the vehicles. 4. Upon BUYER taking possession of the vehicles pursuant to this Agreement, BUYER shall release, indemnify, defend, and hold harmless SELLER from and against any and City Attorney Form Dote: 10/26/15 I -3 _LkO A all claims or suits for damages or liabilities relating in any way to the vehicles, including any liabilities for damages, injury or wrongful death caused by or arising from BUYER'S ownership or operation of the vehicles. WHEREFORE, the parties have executed this Purchase and Hold Harmless Agreement on the date first set forth above. SELLER, THE CITY OF SAN RAFAEL BUYER, THE CITY OF JACKSON By:Y',a-tom CY MANA R [Printed Nanze] l/,%,Pt [Title] r,+it 6-F-Ta&,510() ,c- -t� -1)P P+, 33-I F,-oCLUV-),-0/ J&ckson CA 950? - [Address and Telephone Number] (Zoq) 7-2-3-17'T k City Attorney Form Date: 10/26/15 CITY OF SAN RAFAEL, CALIFORNIA DEPARTMENT OF PUBLIC WORKS IfTI �t�77\►1�i�fl I DATE: 7/7/2017 TO: Jim Schutz, City Manager FROM: Talia Smith, Senior Management Analyst FILE, NO: 01.14.16 RE: Sale of Two Surplus Police Vehicles to City of Jackson Police Department C: Bill Guerin, Public Works Director On October 3, 2016, the Department of Public Works purchased six new Ford Explorer SUV's to replace existing Police Department Patrol cars as part of their annual FY 2016-17 Fleet Purchases. The purchase of the six cars completed the department's transition from Crown Victoria sedans to law enforcement SUV's. The new vehicles arrived and were outfitted in spring 2017. The new vehicles replaced and retired out Police vehicles that had reached the end of their useful life; per the City's Fleet Management Policies and Procedures document, Police patrol vehicles are anticipated to serve the department's emergency response needs for 5 years. In April 2017, the City of Jackson, CA Police Department contacted Lieutenant Jim Correa of the San Rafael Police Department inquiring about the surplus cars. The Jackson Police Department had received word through a mutual contact that the City of San Rafael was purchasing new police vehicles, and may be retiring out surplus police cars. The City of Jackson had procured retired police vehicles from other agencies in the past, and the department was in need of new vehicles, and interested in another opportunity to purchase surplus ones. Per section 2.55.050 of the Municipal Code, all sales of surplus City supplies and equipment are to be based on competitive bids when possible. 2.55.050 - Surplus supplies and equipment. All using departments shall submit to the purchasing agent, at such times and in such forms as he shall prescribe, reports showing all supplies, materials and equipment which are no longer used or which have become obsolete or worn out. The purchasing agent shall have authority to sell as surplus such supplies, materials and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for, or trade in the same on new supplies, materials, and equipment. All sales of said property shall be based, whenever possible, on competitive bids. Garage Shop & Equipment Supervisor Dave Hulbert has determined that the fair market value of the two cars is as follows: WAO1 Administration\01.14 Purchasing\01.14.16 Vehicles & Equipment\2017-07-07 Sell 2 PD vehicles\2017-07 Memo to CM -Sale of 2 Police Vehicles.docx 2012 Ford Expedition $3,500 2011 Crown Victoria $3.500 Total $7,000 Depending on the condition of a city vehicle, the standard procedure the City has followed in the past with surplus vehicles is to contract through an auction agency to have the vehicles sold. The City pays the auction agency a fee for pickup, de -outfitting (removing of light bars etc., on public safety vehicles) as well as a percentage of the final sale. However, the Municipal Code does not require sale at auction. Section 2.55.090 authorizes use of an informal "small purchase" bid procedure when the value of the property to be sold is less than $20,000. This process involves seeking at least three informal bids and selling to the lowest bidder. The City of Jackson has offered to purchase the cars as is, at fair market value. The City of Jackson will also pay for all pick-up and transportation costs associated with the vehicles, and since the vehicles will be repurposed at another Police agency, there will be no removal of the existing outfitting required. In compliance with the small purchase procedure, Public Works staff reached out to two other local cities to invite them to bid on the cars, but received no other bids. Dave Hulbert, who has coordinated vehicle auction sales in the past, has advised that the sale to the City of Jackson will result in revenues greater than the City has received in the recent past from the auction agency for the sale of surplus police patrol cars. Therefore, we are recommending proceeding with this sale of two surplus vehicles to the City of Jackson Police Department. In addition, the City of Jackson is in need of new Police Vehicles, and the sale would allow the City the opportunity to greatly benefit another municipal agency. Attachments: 1. Purchase and Hold Harmless Agreement 2. Contract Routing Form APPROVED: ( Date: 7 /lz-/(7 J Sch tz, City na er I I WAO1 Administration\01.14 Purchasing\01.14.16 Vehicles & Equipment\2017-07-07 Sell 2 PD vehicles\2017-07 Memo to CM -Sale of 2 Police Vehicles.docx CONTRACT ROUTING FORM INSTRUCTIONS: Use this cover sheet to circulate all contracts for review and approval in the order shown below. TO BE COMPLETED BY INITIATING DEPARTMENT PROJECT MANAGER: Contracting Department: Public Works Project Manager: Talia Smith Extension: 3354 Contractor Name: City of Jackson Contractor's Contact: Jose Arevalo Contact's Email: jarevalos@ci.jackson.ca.us ❑ FPPC: Check if Contractor/Consultant must file Form 700 Step RESPONSIBLE DESCRIPTION COMPLETED REVIEWER CONTINUE ROUTING PROCESS WITH HARD COPY DEPARTMENT DATE Check/Initial 1 Project Manager a. Email PINS Introductory Notice to Contractor n/a ❑ 6 City Attorney Review and approve hard copy of signed 7/7/2017 agreement b. Email contract (in Word) & attachments to City 7 City Attorney Review and approve insurance in PINS, and bonds -7 Atty c/o Laraine.Gittens@cityofsanrafael.org NTS 2 City Attorney a. Review, revise, and comment on draft agreement 7/11/2017 ® LAG 9 City Clerk and return to Project Manager n/a �. forwards copies to Project Manager b. Confirm insurance requirements, create Job on ❑ PINS, send PINS insurance notice to contractor 3 Project Manager Forward three (3) originals of final agreement to 7/11/2017 ®TS contractor for their signature 4 Project Manager When necessary, * contractor -signed agreement ® N/A agendized for Council approval *PSA > $20,000; or Purchase > $35,000; or Or ❑ Public Works Contract > $125,000 I-3'40.1 Date of Council approval Click here to enter a date. PRINT CONTINUE ROUTING PROCESS WITH HARD COPY 5 Project Manager Forward signed original agreements to City - —(7 Attorney with printed copy of this routing form 6 City Attorney Review and approve hard copy of signed agreement 7 City Attorney Review and approve insurance in PINS, and bonds -7 (for Public Works Contracts) 8 City Manager/ Mayor Agreement executed by Council authorized official 9 City Clerk Attest signatures, retains original agreement and �. forwards copies to Project Manager I-3'40.1