HomeMy WebLinkAboutPW 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]
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[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
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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