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Res. No. 028-04-11807
RESOLUTION NO:28-04-11807 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AND ALL APPLICABLE DOCUMENTS WITH PROPERTY BUREAU,INC.FOR ON-LINE AUCTIONING OF SURPLUS ITEMS FROM THE POLICE DEPARTMENT'S PROPERTY AND EVIDENCE ROOM;PROVIDING AN EFFECTIVE DATE. WHEREAS,thePolice Department's PolicePropertyandEvidenceRoom isconsistentlyoverstockedwithitemsofvaluethatareeligibleforauctionand, WHEREAS,these items may deteriorate and/or decrease in value while awaiting a regular City auction and, WHEREAS,Property Bureau,Inc.isa national company that picks up auctionable items from police departments ona monthly basisand offers themfor auction onthe internet with50%of the proceeds paidtothePolice Department,andisthe only company currently offering this service; NOW,THEREFORE,BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA; Section 1:The City Manager be,and hereby is authorized to execute the contract andall applicable documents with Property Bureau,Inc.for on-line auctioning of surplus items fromthe Police Department's Property and Evidence Room. Section 2:That this Resolution be effective upon adoption hereof. PASSED AND ADOPTED THIS /I day of 9^^,2004. ATTEST:APPROVED: eftY CLERKT READ AND APPROVED AS TO FORM: /<£. CITY ATTORNEY COMMISSION VOTE:5-0 Mayor Russell:Yea Vice Mayor Palmer:yea Commissioner Wiscombe:Yea Commissioner Birts-Cooper:Yea Commissioner Sherar:Yea City of South Miami INTER-OFFICE MEMORANDUM TO:Honorable Mayor,Vice Mayor Date:February 17,2004 andCity Commission ^*-\ FROM:Maria Davis IIP?J^$U(Jl^**e:Agenda Item #*y*City Manager^^S^^Comm.Mtg 02/17/04 Contract with Property Bureau,Inc. RESOLUTION A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT AND ALL APPLICABLE DOCUMENTS WITH PROPERTY BUREAU,INC.FOR ON-LINE AUCTIONING OF SURPLUS ITEMS FROM THE POLICE DEPARTMENT'S PROPERTY AND EVIDENCE ROOM AND PROVIDE FOR AN EFFECTIVE DATE. BACKGROUND AND ANALYSIS The Police Department's Property and Evidence Roomis consistently overstocked with itemsthatareeligibleforauction.Therightfulownersarenoteasily identified andonce theitemsareno longer neededas evidence theymustbe disposed of properly.While awaitingtheyearlyCityAuction,some of theseitemsmay deteriorate (i.e.cellphone batteries,etc.)and/or decrease invalue. PropertyBureau,Inc.isanationalcompanythatpicksupauctionableitemsfromPolice Departmentsonamonthlybasisandoffersthemforsaleonlineontheinternet24hoursa day,sevendaysaweekformaximumexposurewith50%of theproceedspaidtothe PoliceDepartment.Atthistime,theyaretheonlycompanyofferingthisservice. RECOMMENDATION Yourapprovalisrecommended. PROPERTY DISPOSITION SERVICES AGREEMENT PropertyBureau.com,Inc.,an Arizona corporation ("PropertyBureau"),enters into this agreement (the "Agreement"), with the customer identified below (the "Owner")for the auction and disposition of personal property (the "Disposition Services"),in accordance with the Terms and Conditions and Addenda,if any,attached hereto and listed below. Beginning Agreement will terminate on herein. OWNER INFORMATION: [OwnerName] [Address] .,(the "Start Date")Owner engages the Disposition Services of PropertyBureau.This ,(the "Termination Date"),oratsuchother time as provided SCHEDULES,SUPPLEMENTS AND OTHER ATTACHMENTS:(Mark only if included) Terms and Conditions Addendum yes [Phone] THIS AGREEMENT INCLUDING ALLOF THE TERMS AND CONDITIONS SET FORTH ON THE ATTACHED TERMS AND CONDITIONS,AND ALL OTHER ATTACHMENTS INDICATED IN THE BOX ABOVE,IS THE PARTIES'ENTIRE AGREEMENT AND CANNOT BE MODIFIED EXCEPT IN WRITING BYTHE DULY AUTHORIZED REPRESENTATIVES OF BOTH PARTIES. [Legal Name of Owner] By: [Name and Title] Date: Rev 6/12/02 EXECUTED onthe date(s)indicatedbelow: T2.u>.».ArT ^•?**'£. Date:/<-//t/&S PropertyBureau.com,Inc. 3551 Camino Mira Costa,Suite C San Clemente California 92672 Phone:800-799-2440 Federal Tax ID 86-0962102 Pagel of4 TERMS AND CONDITIONS 1.Property tobeSold.From time to time,Owner will designate items of personal property (the "Property")that it desires to provide to PropertyBureau for Disposition Services.PropertyBureau retains the right toacceptor reject certain items in its sole discretion. 2.Title.Owner shall retain legal title tothe Property until itispurchasedby auction or otherwise disposedof in accordance with this Agreement at which time Owner will be deemed tohave transferred title tothe purchaser or other acquirer ofthe item of Property.Owner appoints PropertyBureau as its attorney-in-fact to sign anyand all documents necessary to assign to purchasers of Property all of Owner's right,title and interest in andto Property sold or disposed. All cash receipts,accounts receivable,contract rights,notes,general intangibles,andother rights to payment of every kind,arising outofthesalesand dispositions of Property (collectively the "Proceeds")belong to Owner,subject to PropertyBureau's right to PropertyBureau's Net Proceeds and funds attributable to Credit Card Costs and other transaction costs.Owner's Property shall,at all times before saleor disposition,besubjecttothe direction and control of Owner. 3.Method ofSelling Property.PropertyBureau will,on Owner's behalf,list Property for saleby auction tothe public on the WorldWide Web of the Internet on one ormoredomain names selected by PropertyBureau.To the extent that any Property is not sold by auction,PropertyBureau may,in any commercially reasonable manner selected by PropertyBureau,dispose of Property.PropertyBureau will determine all aspects,terms and conditions of auctions of Property and dispositions of Property not purchased at auction,subject tothe ultimate control of Owner.PropertyBureau will be responsible for all phasesof submitting the Property for auction,including,butnot limited to,determining when Property will be auctioned,setting the opening and reserve prices of Property,if any;determining the selling price, setting the length of time a Product will be auctioned;creating textand graphics to describe and depict Property submitted for auction;collecting all purchaser information (suchaspurchaser'sname,billing address,shipping address, and credit card information);approving purchasers'credit cardpurchasetransactions;and collecting auctionproceeds for completed sales from purchasers.PropertyBureau shall useitsbest efforts in auctioning and selling the Property on the Internet and disposing of Property thatdoesnotsellat auction.PropertyBureau shallsellanddisposeof all Property "as is"without any liability tothe Owner.PropertyBureau is solely responsible for identifying and resolving salesanduse tax collection issuesarising from Propertysales,including thenecessityofchargingand collecting suchtaxes. 4.Allocation of Sales Proceeds. a.Thetotalamountpaidbythepurchasershallbecalledthe"Sales Price".The Sales Priceshall include the winning bidamount(the "Winning Bid")and all costs,shipping and handling charges,taxes,andinsurancecosts associated with the transaction and paidby the purchaser. b.Foreachitemof Property,Owner will becredited with 50%ofthefirst$1,000ofthe Winning Bid and 75%ofthe portion,ifany,ofthe Winning Bid thatexceeds $1,000.From thisamount,theowner'sprorata shareoftransactionfees,ifany,assessed bythecreditcard processor ("Credit CardCosts")will be deducted. c.CreditCardCosts will bebornebyOwnerandPropertyBureauinproportiontothe percentage oftherevenue credited to the parties for each underlying transaction. d.Amounts received bytheOwner will becalled"Owner'sNet Proceeds". The following example illustrates howproceedsofasalearetobeallocated.AssumeanitemofPropertysellsat auction fora Winning Bid of$100;thebuyerpays shipping and handling of$10,insuranceof $2,and sales taxof$6. ThebuyerpaystheSalesPriceof $118.00 by credit card,andthe Credit CardCostsare2%oftheSalesPrice.The CreditCardCostistherefore$2.36 ($118 x.02).TheOwnerandPropertyBureau each share 50%ofthe underlying Winning Bid,therefore Credit CardCostsarealsoshared equally ($1.18 each).The Owner's NetProceedsare $48.82 ($50.00 less $1.18). 5.PaymentTerms.Not laterthanthe 15th ofeach month,PropertyBureau will payto Owner the amount of Owner's Net Proceeds payablefor completed sales duringtheprecedingmonth.Sales are deemed completedwhenallitems comprising alineitemonthe original manifestorotherlistofPropertyaresold.With each monthly payment, PropertyBureau will delivertoOwneradetailedreportofcompleted sales activity fortheprecedingmonth showing PropertyBureau'scalculationoftheamountofOwner'sNet Proceeds forthemonth.With each paymentofOwner'sNet Proceeds,PropertyBureau will delivertoOwnera written reportsettingforththe following information fortheimmediately preceding month:(i)thecompleted sales duringthe prior month,including thetotalamountofrelated proceeds collected, theOwner'sand PropertyBureau's share ofCreditCardCosts,theOwner'sNet Proceeds;(ii)otherdispositionsof Propertyduringthemonth;(Hi)theProperty,ifany,inventoriedbyPropertyBureauattheendofthemonth. Page2of4 6/12/02 6.PropertyBureau's Obligations Concerning Property inItsPossession.With respect to Property in PropertyBureau's possession:(i)PropertyBureau will exercise duecare in the handling and storage ofany Property;(ii) PropertyBureau shall keep the Property free of liens,security interests,and encumbrances,and shall pay when due all feesandcharges with respecttothe Property;(iii)PropertyBureau shall sign and deliver to Owner any UCC-1 financing statementsorotherdocumentsreasonablyrequestedby Owner;(iv)PropertyBureaushallobtainand maintain insurance in an amount (determined by PropertyBureau)notlessthanthe replacement valueof Property inits possession.The insurance will coverthePropertyagainst fire,theft,andextendedcoveragerisks ordinarily includedin similar policies. PropertyBureau shall give Owner an insurance certificate upon Owner's request;and (v)If PropertyBureau returns any Property to Owner,PropertyBureau shall pay all freight charges,insurance and related coststo return the Property to Owner's nearest warehouse.PropertyBureau,at PropertyBureau's expense,shall insure Property during shipping inan amount notlessthanthe replacement value ofany item of Property returned to Owner. 7.Owner'sObligations.Owner will useitsbest efforts to provide to PropertyBureau such Property asbecomes available forsaletothe public.Owner will complete paperwork reasonably necessarytoconvey custodial possessionof the item of property to PropertyBureau,including a written manifest or list thatdescribesthe item of Property in sufficient detail for identification. 8.Restrictions onBidding.PropertyBureau anditsemployeesandagentsmaynot directly or indirectly bidforor purchaseauctionedPropertyonthePropertyBureauwebsite. 9.Representationsand Warranties of Owner.Owner hereby represents,warrants and covenants as follows:(i) Property delivered to PropertyBureau is available for saletothe general public without any restrictions or conditions whatever;(ii)Owner will not knowingly deliver to PropertyBureau any Property ofa counterfeit or illegal nature;and (iii) Ownerhastakenallrequiredactionsunder applicable lawthatare conditions precedenttoOwner'srighttotransfer title tothePropertyto purchasers (the"ConditionsPrecedent"). 10.Books and Records.PropertyBureau will keepcompleteandaccuratebooksofaccount,records,andother documents with respecttothisAgreement(the "Books and Records")foratleastthreeyears following expiration or termination ofthis Agreement.Upon reasonable notice,the Books andRecords will beavailablefor inspection by Owner,atOwner'sexpense,atthe location wherethe Books andRecordsare regularly maintained,during normal business hours. 11.Term and Termination.Unless terminated earlier,the termofthis Agreement will begin on the Start Date and terminateontheTerminationDate.ThisAgreementmaybeterminatedifthereisa breach byeitherpartyofany obligation,representation or warranty contained inthis Agreement,upon thirty days prior written notice totheother party unlessthebreachiscured within the thirty dayperiod,provided,however,ifthebreachisnot capable ofbeingcured within thirty days,the breaching party will haveareasonable amount of time tocurethebreachifitbeginstocure during the thirty day period andproceeds diligently thereafter.The written notice will specify theprecisenatureofthe breach. The rights ofthepartiesto terminate this Agreement arenot exclusive ofanyother rights andremedies available at law or in equity,andsuch rights will be cumulative.Theexerciseofanysuch right orremedy will not preclude theexercise ofanyother rights and remedies.Notwithstanding any termination byeither party ofthis Agreement,PropertyBureau will continuetoremit amounts duetoOwnerunderthisAgreementinconnectionwithany sales made beforetheeffective dateofthetermination.At the timeoftermination,anyunsoldinventoryshall continue tobe auctioned byProperty Bureau or returned to Owner,at owner's election and cost. 12.Indemnification.Subjecttothe limitations specifiedinthisSection 12,eachparty will indemnify,holdharmlessand defendtheotherpartyandits agents andemployeesfromandagainstanyandall losses,claims,damages,liabilities, whetherjointorseveral,expenses (including reasonablelegalfeesandexpenses),judgments,finesandotheramounts paid in settlement,incurred or suffered byanysuchpersonor entity arising outoforin connection with (i)the inaccuracy ofany representation or warranty madebythe party hereunder,(ii)anybreachofthis Agreement bythe party,or (iii)any negligent actor omission bythe party orits employees oragentsin connection with the performance bythe party orits employeesoragentsof obligations hereunder,provided the negligent actoromissionwasnotdoneor omitted atthe direction of the other party. 13.Limitations onLiability.UNDER NO CIRCUMSTANCES WILL EITHER PARTY BE LIABLE TOTHEOTHER PARTY FOR INDIRECT,INCIDENTAL,CONSEQUENTIAL,SPECIAL OREXEMPLARYDAMAGES(EVENIFTHAT PARTYHASBEENADVISEDOFTHEPOSSIBILITYOFSUCHDAMAGES),ARISING FROM BREACHOFTHE AGREEMENT,THESALEOF PROPERTY,ORARISINGFROMANYOTHER PROVISION OFTHISAGREEMENT, SUCHAS,BUTNOT LIMITED TO,LOSSOF REVENUE OR ANTICIPATED PROFITSORLOSTBUSINESS (COLLECTIVELY,"DISCLAIMED DAMAGES");PROVIDED THAT EACH PARTY WILL REMAIN LIABLE TOTHE OTHER PARTY TO THE EXTENT ANY DISCLAIMED DAMAGES ARE CLAIMED BYA THIRD PARTY AND ARE SUBJECT TO INDEMNIFICATION PURSUANT TO SECTION 12.LIABILITY ARISING UNDER THIS AGREEMENT WILL BE LIMITED TODIRECT,OBJECTIVELYMEASURABLEDAMAGES.THE MAXIMUM LIABILITY OFONE Rev 6/12/02 Page 3of4 PARTYTOTHEOTHERPARTYFORANY CLAIMS ARISINGINCONNECTIONWITHTHISAGREEMENT WILL NOT EXCEEDTHEAGGREGATEAMOUNTOFPAYMENT OBLIGATIONS OWEDTOTHEOTHERPARTYHEREUNDER IN THEYEARINWHICH LIABILITY ACCRUES;PROVIDEDTHATEACHPARTY WILL REMAIN LIABLE FORTHE AGGREGATEAMOUNTOFANYPAYMENT OBLIGATIONS OWEDTOTHEOTHERPARTYPURSUANTTOTHE AGREEMENT.NOTWITHSTANDING ANYTHING HEREINTOTHECONTRARY,OWNER'S LIABILITY ISNOT LIMITED UNDERTHISAGREEMENTWITH RESPECT TO LIABILITY ARISINGFROM OWNER'S FAILURETO SATISFY TIMELY ALL CONDITIONS PRECEDENT. 14.Notices.Any notice underthis Agreement mustbein writing.Initially the addresses ofthe parties will beas follows:(i)If to PropertyBureau:PropertyBureau,Attn:Tom Lane,President,3551 Camino Mira Costa,SuiteC,San Ciemente California 92672;and (ii)IftoOwner:Atthe address statedbelowOwner'sSignatureblockonthefirstpage ofthis Agreement.Thepartiesmay,from timeto time andatany time,changetheirrespective addresses andeach will havethe right tospecifyasits address anyotheraddressbyatleastten days'written noticetotheotherparty. 15.Severability.Wheneverpossible,each provision ofthisAgreement will beinterpretedinsuchamannerastobe effective and valid underapplicable law,butifany provision ofthisAgreementisheldtobe prohibited byor invalid under applicable law,such provision will be ineffective only totheextentofsuch prohibition or invalidity,without invalidating the remainder of such provisionor the remaining provisionsofthis Agreement. 16.Complete Agreement:ThisAgreementandanyrelateddocumentsdelivered concurrently herewith,containthe complete agreementbetweentheparties relating tothesubjectofthisAgreementandsupersedeany prior understandings,agreementsorrepresentationsbyorbetweentheparties,written ororal,which mayberelatedtothe subject matter hereof inanyway. 17.Attorneys'FeesandLegal Expenses.If any proceeding oractionisbroughttorecoveranyamountunderthis Agreement,orfororonaccountofanybreachof,ortoenforceor interpret anyoftheterms,covenants,or conditions of this Agreement,the prevailing party will be entitled torecover from theotherparty,as partofthe prevailing party'scosts, reasonableattorneys'fees,theamountof which will be fixed bythecourt,and will bemadeapartofanyjudgment rendered. 18.Further Assurances.PropertyBureau andOwner wiil each sign such other documents and take such actions as theothermayreasonably request inordertoeffecttherelationships,services andactivitiescontemplatedbythis Agreement andto account forand document those activities. 19.Governing Law.Theinternallaw,andnotthelawof conflicts,ofthe state inwhichtheOwnerislocated will govern allquestions concerning the construction,validity and interpretation ofthisAgreementandtheperformanceofthe obligations imposed bythis Agreement.Thepropervenueforany proceeding atlaworinequity will bethestateand countyinwhichtheOwnerislocated,andthepartieswaiveanyrighttoobjecttothevenue. 20.Relationship of theParties.The relationship createdhereunderbetweenOwnerand PropertyBureau will besolely thatofindependentcontractorsenteringintoanagreement.Norepresentationsor assertions will bemadeoractions takenbyeither party that could imply orestablishanyagency,joint venture,partnership,employment ortrust relationship betweentheparties with respecttothesubjectmatterofthis Agreement.Exceptasexpressly provided inthis Agreement,neitherparty will haveany authority orpowerwhatsoevertoenterintoanyagreement,contractor commitmentonbehalfoftheother,orto create any liability orobligation whatsoever onbehalfoftheother,toanyperson or entity.Whenever PropertyBureau is given discretion inthis Agreement,PropertyBureau mayexercisethat discretion solelyinanymannerPropertyBureau deems appropriate. 21.Force Majeure.Neither party will be liable forany failure ofordelayinthe performance ofthis Agreement forthe period thatsuch failure ordelayisduetoactsof God,public enemy,war,strikesorlabordisputes,oranyothercause beyond the parties'reasonable control (eacha "Force Majeure"),it being understood thatlackof financial resources will nottobedeemeda cause beyondaparty's control.Eachparty will notify theotherparty promptly oftheoccurrenceof anyForce Majeure andcarryoutthisAgreementas promptly as practicable aftersuchForceMajeureisterminated.The existence ofanyForceMajeure will not extend thetermofthisAgreement. 22.Counterparts.This Agreement may be signed inany number of counterparts. Rev 6/12/02 Page 4of4 Addendum to Property Disposition Services Agreement ThisaddendumisattachedtoandmadepartoftheCityofSouthMiamiDispositionServices Agreementdated September 19,2002 The Agreement is modified asfollows: Under TERM AND TERMINATION Item 11.Thefollowingphrasewillbe added."Unlessthematerialbreachwascausedby PropertyBureau,then PropertyBureau shall be responsible forthe shipping costs associated with return of property to Owner. Under INDEMNIFICATION Item12.Doesnotapplytothisagreementandshallbeconsidereddeleted. Under LIMITATIONS ON LIABILITY Item13.Thefollowingsentenceshallbeadded."Innoeventtheisamounttoexceedtheamounts established in Section 768.79,FLA,STAT." Under ATTORNEY FEES and LEGAL EXPENSES Item17.Thefollowingsentenceshallbe added."Neitherpartymayrecoverprejudgment interest." For "Owner' 7 Date /A^^<£-/J^/seAj Date For Property Bureau Property Bureau Hpw It Works I Police Alliances I Key Personnel I Scholarship Fund I Contact Us I Go To Auctions lilHUllMUHliCH Page 1 of 2 Property JJREAU Return to Home Today'slaw enforcement agencies havepropertyrooms full of stolen or forfeited goods.Therightful owners are noteasily identified,andonce merchandise isno longer needed as evidence,it must be disposed of properly. Enter Property Bureau.Foundedand managed by former policeofficers, PropertyBureau harnesses thepowerofthe Internet toquicklymoveitemsout ofpolice property rooms,reducepersonnelcostsand generate revenue well beyondtraditionalpoliceauctionmethods.And there isno cost tothe participating police or sheriffs department. PropertyBureauhastaken full advantage ofthe Internet's potentialby creating PropertyRoom.com,an online auction site that gives property room items maximum exposure,24 hours a day,seven days a week.It's a dynamic marketplace that provides buyers withahuge array of products to choose from.As opposed tosellinginlots,eachitemis merchandised individuallywith aphotoand description,generating revenue much higher than traditional offline police auctions.Sitetrafficisdrivenbyofflineandonline advertising and public relations campaigns. Asa feature of its unique patent-pending inventory management system, Property Bureau uses proprietary bar coding methods to manage the tracking and merchandising of property room items and their placement on the Internet.All items are tracked by case or control number,with on-command reports available forauditing purposes.Property Bureauis responsible forall fulfillment and customer service functions,which relieves participating departments of burdensome management functions. As an additional feature of its unique approach to online auctions,Property Bureau has established StealitBack.com,the nation's only privately owned national registry of stolen goods.Private citizens are invited to register on StealitBack.com any items with serial numbers they have lost or reported stolen to their local police department.StealitBack.com will search its database,and if an item has been received from a participating department, will return the item to the police department where the theft or loss was originally reported so that itmaybe returned toits rightful owner free of charge. Bottom line,a partnership with Property Bureau will reduce personnel and space requirements dedicated to excess property and will yield dramatically increased auction revenues that law enforcement agencies and cities can use for such needs as additional personnel,new equipment and facilities. For further information,please email TomFeqan(5)PropertvBureau.com or feel free to call our corporate offices at (800)799-2440 ext25. http://www.propertybureau.com/how.html 11/11/2003 Property!roj B1 3551 Camino Mira Cosia I SuiteC I San Clemente,CA92672 PH 949-234-0204 I 800-799-2440 I FX949-234-0047 KEY MANAGEMENT AND ADVISORS Thomas P.Lane,oneofthe company's founders,has served asits Chairman and CEO since inception.A graduate ofSt.John's University,Mr.Lane has extensive management experience both domestically and internationally.He has held senior executive positions in such diverse industries as manufacturing,distribution,retailing and franchise development.Prior to forming PropertyBureau.com Mr.Lane was a managing principal and shareholder of Lane Brothers &Company,Inc,an investment advisory firm (1995-1999).Early in his career Mr.Lane served asa police officer and detective ofthe Long Beach,New York Police Department (1971-1978). Daryl F.Gates,a senior advisor to the company and a member of the Board of Advisors,is a nationally known law enforcement officer.In his 43 years of service with the Los Angeles Police Department,Mr.Gates served in every rank,retiring after fourteen years of service as Chief of Police.Mr.Gates is widely recognized for his innovative approach to law enforcement.In his tenure as Chief,he organized the nation'sfirst SWAT team.Hewasalsothefounderof DARE (Drug Abuse Resistance Education),an organization now active in all fifty states and several foreign countries.Mr.Gates'responsibilities with Property Bureau arebusiness development with police andsheriffdepartments nationally. Steven Lupinacci,President and COO,is an experienced entrepreneur with more than 25 years experience in operating and advising companies in a wide variety of sizesand industries.Following a successful careerasa Partner inthe international accounting and consulting firm PriceWaterhouseCoopers,Steve has been an investor in emerging businesses,often taking an active role during the critical growth phase. As CEO,he built a specialty food-service chain,which he took public within 4 years, andasan advisor/investor,heassisted in the strategic planning,growth,and initial public offering of a communications manufacturer.Prior to joining Property Bureau, Inc.,Steve served in a leadership role with a Southern California group of early- stage investors who are actively involved in the companies they fund.The combinationofhands-onexperienceinoperationsandstrategicinvestmentgivea particularly usefulvantagepointtoa rapidly growing company. Harry Brockman.is Vice President of Operations for the company.Early in his working career Mr.Brockman was a police officer with the City of Long Beach (New York)Police Department.Additionally,Mr.Brockman has 25 years of experience in distribution,transportationand logistics,having servedinseniorexecutive positions with the Target,Petco and Smart &Final chains.He has planned and successfully implemented seven new distribution centers and consolidated three distribution centers intoonewhilereducingoperatingandinventorycostsbyover30%. S£?fc5f€ol^BocSS •'•••••..'.:':• FORT I A UDERDALE piY POLICE DEPARTMENT '!'" i-:^jiDjm,3ZG Briefing Room Auction Notice On-line I On-site Notice of Sale of Various Surplus,Found or Seized Property The Fort Lauderdale Police Department ispleasedtoannouncethatwewillsell miscellaneous items(smallelectronics,computerequipment,householditems,cell phones,automobile accessories,andjewelry).The auction willbe conducted onthe Internet.Interested personsmayviewthe items andsubmittheirbidsbyloggingonto www.propeitvroom.com.Bidding will commence (05/18/03)and will continue until the date indicated.Allsalesaresubjecttothe bidder's responsibility forshippingand handling.All sales are final.For more information on how to participate in this auction, logontoone of thewebsitesindicatedabove. TheFort Lauderdale Police Department makes no guarantee or warranty,expressed or implied,ofany nature as to the condition ofthe goods offered forsale. AUCTION NOTICE FOR ADDITIONAL INFORMATION CalltheCity of FortLauderdaleAuctionHotline 954-828-5960 for Recorded Information m&'r/m^s^^FORT IAUDERHALE POLICE •HMMHi j93SSB3B DEPARTMENT •.-Briefing Room Bricfinp Room wsc~~".v.."•'•/.••-.v-Twaa Auction Notice On-line|On-site Notice of Sale of Various Surplus,Found or Seized Property The Fort Lauderdale Police Department is pleased to announce thatwewillsell miscellaneous items (small electronics,computer equipment,household items,cell phones,automobile accessories,and jewelry).The auction willbe conducted onthe Internet Interestedpersonsmayviewtheitemsandsubmittheirbidsbyloggingonto www.propertvroom.com.Bidding will commence (05/18/03)and will continue until the dateindicated.Allsalesaresubjecttothe bidder's responsibilityforshippingand handling.Allsalesarefinal.Formoreinformationonhowtoparticipateinthis auction, log onto one of the websites indicated above. The Fort Lauderdale Police Department makes no guarantee or warranty,expressed or implied,ofanynatureastothe condition ofthegoods offered for sale. AUCTION NOTICE FOR ADDITIONAL INFORMATION Call the City of Fort Lauderdale Auction Hotline 954-828-5960 for Recorded Information FWbWMY 3551 Camino MiraCosta I SuiteC I San Clemente,CA92672 PH 949-2340204 I 800-799-2440 I FX949 234 0047 To our Law Enforcement Colleagues: Property Bureau has developed a new and unique method of maximizing revenues from the sale of seized and unclaimed goods.Our Internet based solution for property disposition can help you reduce the manpower and space currently allocated to the operations of your property and evidence rooms. The management,senior advisors and board members of Property Bureau have over a century of law enforcement experience.Joined by a team of marketing,logistics and warehouse professionals,we provide a turnkey alternative to the current method of property disposition at nocost to your agency. At its auction site,PropertyRoom.com combines property from law enforcement agencies throughout the country and,through its network of affiliated auction sites, exposes the product offerings to worldwide audience of potential bidders.Auctions are conducted 24 hours a day,seven days a week,365 days a year.The company s proprietary inventory control and reporting system provides a complete tracking and audit trail of all items back to a department's original case number. Deploying the latest Internet and inventory management technology,Property Bureau personnel will barcode,digitally photograph and upload detailed descriptions of all items to our auction site.At the conclusion of the auction,funds are collected and Property Bureau personnel pack and ship items to the winning bidder. Please visit our Corporate Web site PropertyBureau.com for information on participating law enforcement agencies,Key Personnel and National Media Coverage.At our Auction Web site,PropertyRoom.com,you can see the evidence for yourself.In the meantime, Property Bureau personnel are available to answer any of your questions.CaU us for your free CD at (800)799-2440 and judge for yourself.We look forward to hearing from you. Verytrulyyours, Thomas P.Lane Chairman iFsfcSf€QlAjyBQCk M.G.L -Chapter 135,Section 7.PaSe l of l » GENERAL LAWS OF MASSACHUSETTS PARTI. ADMINISTRATIONOFTHE GOVERNMENT. TITLE XX. PUBLIC SAFETY ANDGOOD ORDER. CHAPTER 135.UNCLAIMED AND ABANDONED PROPERTY. Chapter 135:Section 7.Disposition of property taken by police officers from persons under arrest. Section 7.If property which has been stolen,lost,abandoned or taten from aff^^j^TLtowthepossessionofamemberofthepolicedepartmentofacitybyvirtueofhu"^**jjfj£thVsanJf to the officer or member of the department designated by die rulesitaeaf.«d,rfudlthereupon^relieved from further responsibiUty therefor.The officer o,L^^^SSKlworddeliveredshallgivenoticeasprovidedinsectiononeofchapteronehundredandthirtylour, ""city"as used in this and the four following sections shall include town. Return to: 11/6/2002 tap-Jl^v».asc«Jcaiii.«sAeeisAaws/mSiyi35"7-htm M.G.L -Chapter 135,Section 8.PaSe xof l GENERAL LAWS OF MASSACHUSETTS PARTI. ADMINISTRATION OF THE GOVERNMENT. TITLE XX. PUBLIC SAFETY AND GOOD ORDER. CHAPTER 135.UNCLAIMED AND ABANDONED PROPERTY. Chapter 135:Section 8.Sale of unclaimed property in possession of police department at public auction;notice. Section 8.If such property remains unclaimed in the possession of such police department or member thereof for one month and the owner thereof or his place of abode or business is unknown,or if the owner and his place of abode or business are known and the owner,after receipt by registered mail of a written notice from such department or member to take possession of said property,refuses or fails for a period of ten days following said receipt so to do,such department may sell the same,excepting.money unclaimed by public auction,notice of the time and place of sale,with adescription of the property toSSdtafKivenby^Wishing the same once in each of three successive weeks manewspaperpubUhedTnsuchcity.Any violation of the provisions of this section shall be punished by afine of notS^fifty^ra ton one hundred dollars and by forfeiture of any such property obtained as a result of such violation. Return to: »«H^LS^MM **Proving Section **rhnntfr T«Me of Contents **Tfgi^tiv*Horn*?W „„rou 11/6/2002http://www.state.ma.us/legis/laws/mgl/135-8.htm L.G.L -Chapter 135,Section 10.**&L0I x ENERAL LAWS OF MASSACHUSETTS PARTL ADMINISTRATION OF THE GOVERNMENT. TITLE XX. PUBLIC SAFETY AND GOOD ORDER. HAPTEK 135.UNCLAIMED AND ABANDONED PROPERTY, hapter 135:Section 10.Proceeds of sale. jction 10.The proceeds of such sale,or the balance of such unclaimed money,after deducting all asonable charges and expenses incurred on such property,shall be paid into the city treasury. stum to: ttSl^JMq »»Pr,.v»>u*Section »»Phi.PC-rTHhl?of CQHttPtf »»I fgWlTJVf HoiM ft»tttf** 11/6/2002://www.siuie.ma.us/legis/laws/mgl/135-10.hun up POLICE DEPARTMENT 237W.COMMONWEALTH AVE.•FULLERTON,CA 92832-1881 •(714)738-6800 •FAX(714)738-0961 PATRICK E.McKINLEY CHIEFOFPOUCE September 17,2002 To Whom ItMay Concern: This isa letter of recommendation for the Police Department's usageof "Property Bureau."The company is located at 3551 Camino Mira Costa,Suite C,San Clemente,CA 92672.The Fullerton Police Department began its relationship with the Property Bureau in January of 2001.We have been very pleased with the company and impressed with its service. The Property Bureau is an on-line auction company.They have been very convenient for the Fullerton Police Department because they pick up articles of property.Their edge over other auction houses is they make an effort to repackage or spruce up the items prior to auction.The Department has received approximately $5,000 in revenue from the Property Bureau.We have found them to be a very reputable company and have no unresolved issues or discrepancies with the company. The Fullerton Police Department highly recommends the use of the Property Bureau for disposal of excess property. With best regards, PATRICK E.McKINLEY Chief of Police PEM/rk SAN MAT£0 COUNTY SHERIFFS OFFICE Support Services Bureau Captain Donald M.O'Keefe MEMORANDUM DATE:June 12,2003 MEMO TO:CountyPurchasing Department FROM:Captain Donald M.O'Keefe Support Services Division SUBJECT:SOLE SOURCE FOR ON LINE AUCTION I am requesting to utilize PropenyBureau.com as a sole source provider to conduct an auction on line. They are unique in that they aucuon only police/government property and they will pick up all the items at one time from our facility.PropertyBurcau.com's appraisers appraise*certify,grade and value items obtained from law enforcement surplus,insuring that value items,otherwise often sold in lots are property valued and/or recognized.The.appraised value of an item will be listed on the website along with a digital photoand technical description. Items arc sold individually,and not in lots,generating increased sales revenue.No long-tarn contract is required and no up front f&Qi,or fixed costs to utilize this service.A reduction in manpower hours and costs would be seen by utilizing this service.PropertyBureau.com would also dispose of all non-sold items helping to eliminate storage problems for the San Mateo County Sheriffs Office. Comparing to the current system of auctioning,the Internet provider and its related efficiencies afters an increased body of customers.Instead ofa fixed date,limited time auction,the internet auction offers a wold wide audience,the opportunity to bid on products 24 hours a day,7 days a week. Up to this point,I have not found another vendor capable of doing the above.I would like to use them as a pilot program for at least one year to verify the cost savings to the agency.It ProperryBureau.com can provide the agency with the best results,then I would want to continue usingthis company. Your consideration in this matter is gready appreciated.If you require further,please give me acall at 363-4056. cc:Lee Lazaro,DeputyDirector \>&^y*tt*M*CLteX*»U**\*^wift0Vat)'cArT doc OPEKTY List of References Lt.Rich Meridith Sacramento County Sheriffs Dept (916)874-8064 Lt.Tom Buckley SanFranciscoPolice Department (415)553-1378 Lt.Tom Savage Gwinnett County Police-GA (770)513-5062 savaget@co.gwinnett.ga.us Capt.TracyTingey So.Salt Lake Police Department (801)483-6082 ungey@sslpd.state.ut.us Elaine Wesely City of Sunnyvale Purchasing Mgr, (408)730-7418 ewesely@ci.sunnyvale.ca.us Lt.Rick Hart Oakland Police Department (510)238-3380 Brent Brown Indianapolis Police Department (317)327-3459 b7074@indygov.org Sgt.ChuckMeadows San Bernardino Sheriffs Dept (909)387-2563 YolandaVazquez Broward County Sheriffs Dept. (954)765-4352 Yolanda velazquez@sheriff.org Asst.Sheriff Doug Storm Orange County Sheriff's Dept. (714)647-1803 Ms.KelleyDonnelly Mercer Island Police Dept. 206-236-3500x595 kelly.donnelly@ci.mercer-island.wa.us Ms.Joyce Billingsley Beaumont Police Dept-TX (409)880-3808 Sgt.SeanLynch Alameda Police Department (510)748-4508 Capt.Lou Griffith Framingham Police Dept-MA (508)872-1212 Property Bureau Page 1 of 7 • How itWorks I Police Alliances Media Coverage ICompany News I Key Personnel I Scholarship Fund I Contact Us •JiHUliLUU Utt Property jureau Return to Home Property Bureauis the leading Internet Auction Services Company serving law enforcement in the United States. In addition to our auction site at www.propertyroom.com,we maintain the only nationwide registry available to the general publicfor recovering lost or stolen goods.Werecord the serial number of each item that we receive and check these numbers against our national registry.If there isa match,wewill contact the owner and return the item.To register your lost or stolen items,visit www.stealitback.com. Property Bureau isa member of the International Association ofChiefofPolice, the National Sheriffs'Association,and the International Association for Property and Evidence. We currently provide Auction Services to the following agencies,with more states and cities joining each month: Arizona Chandler Gilbert CALIFORNIA Northern California Alameda County Sheriff's Department Alameda Housing Authority Alameda Police Department Antioch Areata Police Department Benicia Brentwood Police Department Burlinqame Police Department Butte County Sheriffs Department California State University Monterey Bay Campbell Contra Costa County Sheriff's Department Cotati Police Department Daly City Police Department Eureka Police Department Fairfield Fortuna Police Department Foster City Police Department http://www.propertybureau.com/list.html 11/11/2003 Property Bureau Page 2of7 Fremont Police Department Gilroy Police Department Half Moon Bay Police Department Hercules Police Department Hollister Police Department Humboldt County Sheriffs Department Lakeport Lodi Police Department Los Gatos Police Department Manteca Marin County Sheriffs Office Marysville Police Department Milpitas Police Department Modesto Police Department Monterey County Morgan Hill Mountain View Police Department Newark Police Department Novato Police Department Oakland Police Department Pacific Grove Paradise Piedmont Police Department Plumas County Redding Police Department Redwood City Ripon Roseville Police Department Sacramento County Sheriffs Department San Francisco Police Department San Francisco County Sheriff Department San Leandro San Luis Obispo Sheriffs Department San Mateo Santa Clara County Santa Cruz Police Department Santa Cruz County Sheriffs Department Sonoma Police Department Sunnyvale Police Department Susanville Sutter County Public Administrator Sutter County Sheriffs Department Tehama County Sheriffs Office Trinity County Sheriffs Office Tuolumne County U.N.E.T Ukiah Police Department Vacaville Police Department Valleio Police Department Watsonville Police Department Williams Woodland Police Department Yuba County Sheriffs Department Southern California http://www.propertybureau.com/list.html 11/11/2003 PropertyBureau Page3 of 7 Anaheim Police Department Atascadero Police Department Azusa Police Department Banning Beaumont Police Department Brea Police Department Burbank Police Department California State University Long Beach Police Department Carlsbad Police Department Cerritos College Campus Police Department Chino Police Department Corona Covina Orange Police Department Pasadena Pomona Rialto Claremont Police Department Santa Barbara County Sheriffs Department Culver City Ventura County Cypress Police Department Desert Hot Springs Police Department Dinuba Police Department Downey Police Department Fresno County Fountain Valley Police Department Fullerton Police Department Garden Grove Police Department Glendale Police Department Glendora Police Department Hawthorne Police Department Hermosa Beach Police Department Huntington Park Police Department Irwindale Police Department Kern County Sheriffs Department La Ha bra La Verne Police Department Los Angeles Police Department Los Anoeles County Sheriffs Department Mammoth Lakes Police Department Manhattan Beach Manhattan Beach Police Department Maywood Police Explorer's Montclair Morro Bay Police Department Newport Beach Police Department Oceanside Orange County Sheriffs Department Oxnard Police Department Palm Springs Police Department Paso Robles Police Department Placentia Police Department Riverside County Sheriffs Department San Bernardino County Sheriffs Department San Diego County http://www.propertybureau.com/list.html 11/11/2003 PropertyBureau Page4of7 San Fernando Police Department Santa Ana Police Department Santa Monica Police Department Santa Maria Police Department Signal Hill Police Department South Pasadena Police Department San Diego Police Department Tiburon Police Department Torrance Tustin Police Department University of California San Diego Police Department Upland Police Department Ventura County -GSA Procurement Vernon Police Department Visalia Colorado Dillon Police Department Fort Collins Grand County Montrose County Sheriffs Office Connecticut East Hartford Police Department Florida Bradenton Police Department Broward County Sheriffs Department Collier County Sheriffs Office Coral Springs Edgewater Fort Lauderdale Hillsborough County Sheriffs Office Hollywood Jacksonville Sheriffs Office North Miami Beach Martin County Pembroke Pines Police Department Port St.Lucie St.Lucie County Sheriffs Office St.Petersburg Police Department Tampa Police Department Melbourne Wauchula Georgia Chatham County Police Department Gwinnett County Police Hawaii http://www.propertybureau.com/list.html 11/11/2003 PropertyBureau Page5 of 7 Honolulu Idaho Chubbuck Indiana Bloomington Police Department Indianapolis Police Department Louisiana St.Charles Parrish Sheriffs Office Maryland Ocean Citv Massachusetts Acton Brookline Police Department Framingham Police Department Medford Swampscott Police Department Town of Ashland Police Department Willamstown WellesleyPolice Department Missouri Springfield St.Louis Sheriffs Department Nebraska Sarpy County Sheriffs Office Nevada Reno Police Department New York New York Police Department Oklahoma Bartlesville Broken Arrow Muskogee http://www.propertybureau.com/list.html 11/11/2003 Property Bureau Page6 of 7 Norman Tulsa Police Department Oregon Baker City Central Point Washington County OR Pennsylvania Philadelphia Texas Beaumont Texas Police Department Port Arthur Wichita Falls Utah Midvale Police Department South Jordan Police Department South Salt Lake Police Department Tooele Police Department West Valley City Police Department Washington Aberdeen Police Department Arlington Police Department Bainbridge Island Bellevue Police Department Black Diamond Brier Clallam County Clark County Clyde Hill Cowlitz County Pes Moines Police Department Seized Edmonds Police Department Federal Way Issaquah Police Department King County Sheriffs Department Kirkland Police Department Lacey WA Lake Forest Park Lake Stevens Police Department Longview Lynnwood Police Department Kelso Marysville Police Department Medina Mercer Island Police Department http://www.propertybureau.com/list.html 11/11/2003 Property Bureau Page7 of 7 Mill Creek Police Department Monroe Police Deparment Mountlake Terrace Newport Police Department Pacific Pierce County Sheriffs Office Port Anoeles Police Department Port Townsend Renton Police Department Seattle Sequim Police Department Skagit County Tukwila Police Department Wapato Wenatchee Woodland Yakima County Yelm How It Works |Police Alliances |Media Converage |Company News |Key Personnel |Scholarship Fund Contact Us|Go To Auctions ©Property Bureau,Inc.2001 http://www.propertybureau.com/list.html 11/11/2003 'flnWrtWVj "MUREMl • Introducing Property Bureau. A company that connects property rooms with the Internet. Today's law enforcement agencies have property rooms fullof stolen or forfeited goods.Often,the rightful ownersare not easily identified,and oncemerchandiseisno longer needed asevidence,it must bedisposed ofproperly. EnterPropertyBureau.Founded and «' managedbyformerpoliceofficers, wehave developed and deployed a waytoleveragethesegoodsintoaddi tionalfundingfor our partnered law enforcementagencies. Property Bureau harnesses the power of the Internet to quickly move items out of your property ..room,reduce,personnel costs andgeneraterevenuewellbeyond traditional police auction methods. And there isno cost to your department whatsoever. We'vetakenfull advantage ofthe Internet's potential by creating Steal It Back.com,an online auction sitethatgivespropertyroomitems maximum exposure,24 hours a day,7daysaweek. It'sadynamic marketplace that providesourcustomerswithahuge arrayof products tochoosefrom. As opposed to selling inlots,each item is merchandised individually with a photo and description,gen erating revenuemuchhigherthan traditional offlinepoliceauctions. Sitetrafficwillbedrivenby offline andonlineadvertisingandpublic relations campaigns. Bottomline,a partnership with Property Bureau and StealItBack.com willyield dramatically increased auction revenues that law enforce ment agencies can usefor such needsas additional personnel,new equipment and facilities. Millions of potential buyers. Steal It Back.com draws millions ofpotential buyers,including those from the FairMarket Network?an alliance ofthe most popular auctions at Excite, Lycos,Microsoft and dozens ofother Web sites. Property Bureau/Steal It Back Traditional Police Auctions 24/7 year-roundonlineauctionatSteal It Back.com; bidding runs7to10days Unlimited worldwide buyer potential—initially upto 50 million people per month;encourages high Bid price All formsofpayment accepted,including creditcard, EF and bank instruments Property Bureau digitally photographs \ and merchandisesitems individually Complete audittrailbackto case filenumber Property Bureauhandlespacking,shipping, customer service Revenues wiredtopartneragenciesonfrequentbasis; increasecashflowandinterestearnings Asitems become available,Property Bureau personnel place them in Steal It Back.com auction forquick disposal Limited selling datesand bidding timeof4to6hours Limited localbuyerparticipation Cash receipts must be handled Policepersonneltimedevotedtosortingitems into lots for auction No audit trail on auction items Buyers responsible for picking up items they win at auction Revenuesreceivedsporadicallyatauction Limited auctiondatesrequireitemstorage between auctions Police or Sheriff PropertyRoom Individual Items Are: •Certified •Graded •Appraised (as needed) •Merchandised Property Bureau usesa proprietary bar coding systemtomanagethe merchandising ofyourproperty roomitemsandtheir placement in our online auction.All items are ' tracked bycaseor control number, with on-command reports available for auditing purposes. Upon release,merchandise from your property room is exposed to millionsofpotential buyers—all bidding againsteach other todrive PropertyBureau1 I Front-Eiul Merchandising i StealltBack.com Online Auction Audit Trail of All Items: Barcode Digitalimage Description Price FAIRMARKET NETWORK™ Simultaneously Offered at: •Microsoft •Lycos •Excite Features/ Benefits: 7-10 day auctions 24hoursaday 7daysa week Unlimited buyers pricesashighasthemarketwillbear. Property Bureauis responsible for all fulfillment and customer service. Revenue generated fromthesaleof property roomgoodsissharedbythe policeagencyandPropertyBureau, witha portion ofProperty Bureau's earningsdonatedtoscholarshipsfor children ofpoliceofficerskilledin thelineofduty. We do the work PropertyBureau collects funds, handles v fulfillment / Payment Options Allow for Maximum Purchasing Power •Credit cards •Electronic funds Transfer •Debit cards »Checks Funds wired to Police or Sheriff Fulfillment: •Itemis packed •Itemisshipped URBAKJL 3551 Camino Mira Costa,Suite C SanClemente,California92672 PH 949.234.0204 FX 949.234.0047 I •St€Ql/7T7BQCk /*/.conr To find out more about Property Bureau, please call our toll free number: 1.800.799.2440 We appreciate yourtimeandwouldbemorethanhappytomeetwithyoutoprovideadditional information. ADDENDUM TO PROPERTYBUREAU,INC. PROPERTY DISPOSITION SERVICES AGREEMENT THIS ADDENDUM tothe property disposition servicesagreementis madeandenteredintothisdayof February,2004byandbetweentheCity of SouthMiamiPoliceDepartment,andthePropertyBureau,Inc.,(auctioneer). WHEREAS,thepartiesagreetoadheretothebasictermsand conditions setforthintheoriginalpropertydispositionservicesagreement(agreement),and WHEREAS,thepurpose of this addendum tothepropertydisposition servicesagreementistoamendandrevisetheterms of theoriginalagreement. NOW THEREFORE,inconsideration of thesum of $10.00,themutual promisesandcovenantscontainedinthis addendum,andforothergoodand valuableconsideration,thereceiptandlegalsufficiency of whichisacknowledged by both parties,the parties agree as follows: 1.WHEREAS CLAUSES 1.1 The above whereas clauses are incorporated and made a part of thisaddendumtothepropertydispositionservices agreement whichagreement is attached as exhibit 1. 2.TERM AND TERMINATION 2.1 Item 11 totheagreementshallbeamended,andthefollowing phrasewillbeadded:"UnlessthematerialbreachwascausedbytheCity of SouthMiamiPoliceDepartment,thenPropertyBureaushallberesponsibleforthe shipping costs associated withreturn of property to owner." 3.INDEMNIFICATION Item 12 totheagreementshallbedeletedinitsentiretyandanewitem 12 be added:"Thecityshallnotbeheldliableorresponsibleforanyclaimswhichmay result fromacts,errorsor omissions of auctioneer,subcontractors,suppliers or laborers.Inreviewing,approvingorrejectinganysubmissionsoracts of auctioneer, thecityinnowayassumesresponsibilityorliabilityfortheacts,errorsoromissions of auctioneer or subcontractors." Page 1 of4 Auctioneer shall not commence work under this agreement until shehas obtained allinsurancerequired by thecity.Auctioneer shall defend,indemnify and hold the city harmless from any andall claims,liability,losses,expenses and causes of action arising solely out of a negligent act,error,or omission or misconduct of auctioneer,or auctioneer's subcontractors,suppliers andlaborers incident tothe performance of auctioneer's services under this agreement. Auctioneer shall pay allclaims,losses,fines,penalties,costsand expenses of any nature whatsoever resulting fromits intentional misconduct or negligence. Auctioneer shallmaintainduringtheterm of this agreement the following insurance: A.Comprehensive general liabilityinsurance with broadform endorsement,completedoperationsandproductsliability, contractualliability,severability of interest with cross liability provision,andpersonal injury and property damage liability with atleasta combined single limit of $100,000.00 perperson and$200,000.00peroccurrencefor bodily injury andproperty damageliability.Thepolicyorpoliciesshallname city as additionalinsuredandshall reflect the hold harmless provision contained herein. B.Workers'Compensation Insurancein compliance with Chapter 440,FloridaStatutes,aspresently written orhereafteramended. C.The policies shallcontain waiver of subrogation againstthe city where applicableandshall expressly provide thatthe policy or policiesareprimaryoveranyotherinsurancethatthe city may have.The city reservestherightto request a copy of the requiredpoliciesforreview.All policies shallcontaina "severability of interest"or"cross liability"clause without obligationfor premium payment of thecity. D.All insurancepoliciesrequired must be written by a company or companies ratedatleast "A"asto management andatleast "ClassX"asto financial strengthinthelatestedition of the Best's InsuranceGuide,published by Alfred M.Best Co.,Inc., FultonStreet,New York,New York,and qualified todo business under the laws ofthe State of Florida. Page 2 of4 E.Thepolicyorpolicies of insurancerequiredshallbewrittenina mannersuchthatthepolicyorpoliciesmaynotbecanceledor materially changed without 60 days advance written notice to thecity.Writtennoticeshallbesentto Director of Finance,at the above address: City of South Miami To the Attention of the Finance Director 6130 Sunset Drive South Miami,Florida 33143-5093 H.Auctioneershallfurnishcertificates of insurancetothecity priortothecommencement of operations.Thecertificates shall clearly indicate that auctioneer has obtained insurance in thetype,amount,andclassificationasrequiredforstrict compliance withthisparagraph. Compliance withtheforegoingrequirementsshallnot relieve auctioneer of its liability and obligations under thisagreement. 4.LIMITATIONS ON LIABILITY 4.1 Item 13tothe agreement shallbe amended and the following sentenceshallbe added attheend of theparagraph:"In no event theisthe amount to exceed the amounts established in section 768.79,Fla.Stat." 5.ATTORNEY FEES AND LEGAL EXPENSES 5.1 Item 17 tothe agreement shallbe amended and the following sentenceshallbeaddedattheend of theparagraph:"Neither partymayrecover prejudgment interest." 6.COMPLIANCE WITH 705.103,FLA.STAT. 6.1Anewparagraph23shallbeaddedtothe agreement andshall state:"23.PropertyBureau shallcomplywithallnoticeprovisionsandgeneral requirements of lawasrelatedtoauctionsandcontainedinsection705.103,Fla. Stat." Page 3 of4 INWITNESS WHEREOF,the parties to this addendum,acting through their duly authorized officers,have executed this addendum to the property dispositionservicesagreementattachedasexhibit1as ofthedatefirstwrittenabove. CITY OF SOUTH MIAMI, a municipal corporation of the the State of Florida By: Maria Davis, City Manager ATTEST: By: Maria M.Menendez, City Clerk APPROVED AS TO FORM: By: EarlG.Gallop, City Attorney J:\My Documents\Addendum to property bureau,inc..doc Page 4 of4 PROPERTYBUREAU,INC. By: Thomas Fegan, Contracting Officer