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02-17-04 Item 4City of South Miami INTER - OFFICE MEMORANDUM TO: Honorable Mayor, Vice Mayor Date: February 17, 2004 and City Commission p FROM: Maria Davis Re: Agenda Item 4-4 City Manager 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 Room is consistently overstocked with items that are eligible for auction. The rightful owners are not easily identified and once the items are no longer needed as evidence they must be disposed of properly. While awaiting the yearly City Auction, some of these items may deteriorate (i.e. cell phone batteries, etc.) and /or decrease in value. Property Bureau, Inc. is a national company that picks up auctionable items from Police Departments on a monthly basis and offers them for sale online on the internet 24 hours a day, seven days a week for maximum exposure with 50% of the proceeds paid to the Police Department. At this time, they are the only company offering this service. RECOMMENDATION Your approval is recommended. 1 RESOLUTION NO: 2 3 4 A RESOLUTION AUTHORIZING THE CITY MANAGER TO 5 EXECUTE AND ALL APPLICABLE DOCUMENTS WITH PROPERTY 6 BUREAU, INC. FOR ON -LINE AUCTIONING OF SURPLUS ITEMS 7 FROM THE POLICE DEPARTMENT'S PROPERTY AND EVIDENCE 8 ROOM; PROVIDING AN EFFECTIVE DATE. 9 10 1 I WHEREAS, the Police Department's Police Property and Evidence Room 12 is consistently overstocked with items of value that are eligible for auction and, 13 14 WHEREAS, these items may deteriorate and /or decrease in value while 15 awaiting a regular City auction and, 16 17 WHEREAS, Property Bureau, Inc. is a national company that picks up 18 auctionable items from police departments on a monthly basis and offers them for auction 19 on the internet with 50% of the proceeds paid to the Police Department, and is the only 20 company currently offering this service; 21 22 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY 23 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA; 24 25 Section l: The City Manager be, and hereby is authorized to execute the 26 contract and all applicable documents with Property Bureau, Inc. for on -line auctioning 27 of surplus items from the Police Department's Property and Evidence Room. 28 29 Section 2: That this Resolution be effective upon adoption hereof. 30 31 32 PASSED AND ADOPTED THIS day of 92004. 33 34 ATTEST: APPROVED: 35 36 37 38 CITY CLERK MAYOR 39 40 READ AND APPROVED AS TO FORM: COMMISSION VOTE: 41 Mayor Russell: 42 Vice Mayor Palmer: 43 Commissioner Wiscombe: 44 Commissioner Birts- Cooper: 45 CITY ATTORNEY Commissioner Sherar: 46 47 48 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 (the "Start Date ") Owner engages the Disposition Services of PropertyBureau. This Agreement will terminate on v_ (the "Termination Date "), or at such other time as provided herein. OWNER INFORMATION: SCHEDULES, SUPPLEMENTS AND OTHER ATTACHMENTS: (Mark only if included) [Owner Name] [Address] Terms and Conditions yes Addendum [Phone] THIS AGREEMENT INCLUDING ALL OF THE TERMS AND CONDITIONS SET FORTH ON THE ATT TERMS AND CONDITIONS, AND ALL OTHER ATTACHMENTS INDICATED IN THE BOX ABOVE, IS THE PARTIES' ENTIRE AGREEMENT AND CANNOT BE MODIFIED EXCEPT IN WRITING BY THE DULY AUTHORIZED REPRESENTATIVES OF BOTH PARTIES. [Legal Name of Owner] By: (Name and Title) Date: EXECUTED on the date(s) indicated below: Property eau, Inc. By: - "-7— Date: PropertyBureau.com, Inc. 3551 Camino Mira Costa, Suite C San Clemente California 92672 Phone: 800 - 799 -2440 Federal Tax ID 86- 0962102 Rev 6/12/02 Page 1 of 4 TERMS AND CONDITIONS 1. Property to be Sold. 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 to accept or reject certain items in its sole discretion. 2. Title. Owner shall retain legal title to the Property until it is purchased by auction or otherwise disposed of in accordance with this Agreement at which time Owner will be deemed to have transferred title to the purchaser or other acquirer of the item of Property. Owner appoints PropertyBureau as its attorney -in -fact to sign any and all documents necessary to assign to purchasers of Property all of Owner's right, title and interest in and to Property sold or disposed. All cash receipts, accounts receivable, contract rights, notes, general intangibles, and other rights to payment of every kind, arising out of the sales and 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 sale or disposition, be subject to the direction and control of Owner. 3. Method of Selling Property. PropertyBureau will, on Owner's behalf, list Property for sale by auction to the public on the World Wide Web of the Internet on one or more domain 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 to the ultimate control of Owner. PropertyBureau will be responsible for all phases of submitting the Property for auction, including, but not 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 text and graphics to describe and depict Property submitted for auction; collecting all purchaser information (such as purchaser's name, billing address, shipping address, and credit card information); approving purchasers' credit card purchase transactions; and collecting auction proceeds for completed sales from purchasers. PropertyBureau shall use its best efforts in auctioning and selling the Property on the Internet and disposing of Property that does not sell at auction. PropertyBureau shall sell and dispose of all Property "as is" without any liability to the Owner. PropertyBureau is solely responsible for identifying and resolving sales and use tax collection issues arising from Property sales, including the necessity of charging and collecting such taxes. 4. Allocation of Sales Proceeds. a. The total amount paid by the purchaser shall be called the "Sales Price ". The Sales Price shall include the winning bid amount (the "Winning Bid ") and all costs, shipping and handling charges, taxes, and insurance costs associated with the transaction and paid by the purchaser. b. For each item of Property, Owner will be credited with 50% of the first $1,000 of the Winning Bid and 75 %0 of the portion, if any, of the Winning Bid that exceeds $1,000. From this amount, the owner's pro rata share of transaction fees, if any, assessed by the credit card processor ( "Credit Card Costs ") will be deducted. c. Credit Card Costs will be borne by Owner and PropertyBureau in proportion to the percentage of the revenue credited to the parties for each underlying transaction. d. Amounts received by the Owner will be called "Owner's Net Proceeds ". The following example illustrates how proceeds of a sale are to be allocated. Assume an item of Property sells at auction for a Winning Bid of $100; the buyer pays shipping and handling of $10, insurance of $2, and sales tax of $6. The buyer pays the Sales Price of $118.00 by credit card, and the Credit Card Costs are 2% of the Sales Price. The Credit Card Cost is therefore $2.36 ($118 x .02). The Owner and PropertyBureau each share 50% of the underlying Winning Bid, therefore Credit Card Costs are also shared equally ($1.18 each). The Owner's Net Proceeds are $48.82 ($50.00 less $1.18). 5. Payment Terms. Not later than the 15`h of each month, PropertyBureau will pay to Owner the amount of Owner's Net Proceeds payable for completed sales during the preceding month. Sales are deemed completed when all items comprising a line item on the original manifest or other list of Property are sold. With each monthly payment, PropertyBureau will deliver to Owner a detailed report of completed sales activity for the preceding month showing PropertyBureau's calculation of the amount of Owner's Net Proceeds for the month. With each payment of Owner's Net Proceeds, PropertyBureau will deliver to Owner a written report setting forth the following information for the immediately preceding month: (i) the completed sales during the prior month, including the total amount of related proceeds collected, the Owner's and PropertyBureau's share of Credit Card Costs, the Owner's Net Proceeds; (ii) other dispositions of Property during the month; (iii) the Property, if any, inventoried by PropertyBureau at the end of the month. Page 2 of 4 6/12102 6. PropertyBureau's Obligations Concerning Property in Its Possession. With respect to Property in PropertyBureau's possession: (i) PropertyBureau will exercise due care in the handling and storage of any Property; (ii) PropertyBureau shall keep the Property free of liens, security interests, and encumbrances, and shall pay when due all fees and charges with respect to the Property; (iii) PropertyBureau shall sign and deliver to Owner any UCC -1 financing statements or other documents reasonably requested by Owner; (iv) PropertyBureau shall obtain and maintain insurance in an amount (determined by PropertyBureau) not less than the replacement value of Property in its possession. The insurance will cover the Property against fire, theft, and extended coverage risks ordinarily included in 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 costs to return the Property to Owner's nearest warehouse. PropertyBureau, at PropertyBureau's expense, shall insure Property during shipping in an amount not less than the replacement value of any item of Property returned to Owner. 7. Owner's Obligations. Owner will use its best efforts to provide to PropertyBureau such Property as becomes available for sale to the public, Owner will complete paperwork reasonably necessary to convey custodial possession of the item of property to PropertyBureau, including a written manifest or list that describes the item of Property in sufficient detail for identification. 8. Restrictions on Bidding. PropertyBureau and its employees and agents may not directly or indirectly bid for or purchase auctioned Property on the Property Bureau web site. 9. Representations and Warranties of Owner. Owner hereby represents, warrants and covenants as follows: (i) Property delivered to PropertyBureau is available for sale to the general public without any restrictions or conditions whatever; (ii) Owner will not knowingly deliver to PropertyBureau any Property of a counterfeit or illegal nature; and (iii) Owner has taken ail required actions under applicable law that are conditions precedent to Owner's right to transfer title to the Property to purchasers (the "Conditions Precedent "). 10. Books and Records. PropertyBureau will keep complete and accurate books of account, records, and other documents with respect to this Agreement (the "Books and Records ") for at least three years following expiration or termination of this Agreement. Upon reasonable notice, the Books and Records will be available for inspection by Owner, at Owner's expense, at the location where the Books and Records are regularly maintained, during normal business hours. 11. Term and Termination. Unless terminated earlier, the term of this Agreement will begin on the Start Date and terminate on the Termination Date. This Agreement may be terminated if there is a breach by either party of any obligation, representation or warranty contained in this Agreement, upon thirty days prior written notice to the other party unless the breach is cured within the thirty day period, provided, however, if the breach is not capable of being cured within thirty days, the breaching party will have a reasonable amount of time to cure the breach if it begins to cure during the thirty day period and proceeds diligently thereafter. The written notice will specify the precise nature of the breach. The rights of the parties to terminate this Agreement are not exclusive of any other rights and remedies available at law or in equity, and such rights will be cumulative. The exercise of any such right or remedy will not preclude the exercise of any other rights and remedies. Notwithstanding any termination by either party of this Agreement, PropertyBureau will continue to remit amounts due to Owner under this Agreement in connection with any sales made before the effective date of the termination. At the time of termination, any unsold inventory shall continue to be auctioned by Property Bureau or returned to Owner, at owner's election and cost. 12. Indemnification. Subject to the limitations specified in this Section 12, each party will indemnify, hold harmless and defend the other party and its agents and employees from and against any and all losses, claims, damages, liabilities, whether joint or several, expenses (including reasonable legal fees and expenses), judgments, fines and other amounts paid in settlement, incurred or suffered by any such person or entity arising out of or in connection with (i) the inaccuracy of any representation or warranty made by the party hereunder, (ii) any breach of this Agreement by the party, or (iii) any negligent act or omission by the party or its employees or agents in connection with the performance by the party or its employees or agents of obligations hereunder, provided the negligent act or omission was not done or omitted at the direction of the other party. 13. Limitations on Liability. UNDER NO CIRCUMSTANCES WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES (EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), ARISING FROM BREACH OF THE AGREEMENT, THE SALE OF PROPERTY, OR ARISING FROM ANY OTHER PROVISION OF THIS AGREEMENT, SUCH AS, BUT NOT LIMITED TO, LOSS OF REVENUE OR ANTICIPATED PROFITS OR LOST BUSINESS (COLLECTIVELY, "DISCLAIMED DAMAGES "); PROVIDED THAT EACH PARTY WILL REMAIN LIABLE TO THE OTHER PARTY TO THE EXTENT ANY DISCLAIMED DAMAGES ARE CLAIMED BY A THIRD PARTY AND ARE SUBJECT TO INDEMNIFICATION PURSUANT TO SECTION 12. LIABILITY ARISING UNDER THIS AGREEMENT WILL BE LIMITED TO DIRECT, OBJECTIVELY MEASURABLE DAMAGES. THE MAXIMUM LIABILITY OF ONE Rev 6112102 Page 3 of 4 PARTY TO THE OTHER PARTY FOR ANY CLAIMS ARISING IN CONNECTION WITH THIS AGREEMENT WILL NOT EXCEED THE AGGREGATE AMOUNT OF PAYMENT OBLIGATIONS OWED TO THE OTHER PARTY HEREUNDER IN THE YEAR IN WHICH LIABILITY ACCRUES; PROVIDED THAT EACH PARTY WILL REMAIN LIABLE FOR THE AGGREGATE AMOUNT OF ANY PAYMENT OBLIGATIONS OWED TO THE OTHER PARTY PURSUANT TO THE AGREEMENT. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, OWNER'S LIABILITY IS NOT LIMITED UNDER THIS AGREEMENT WITH RESPECT TO LIABILITY ARISING FROM OWNER'S FAILURE TO SATISFY TIMELY ALL CONDITIONS PRECEDENT. 14. Notices. Any notice under this Agreement must be in writing. Initially the addresses of the parties will be as follows: (i) If to PropertyBureau: PropertyBureau, Attn: Tom Lane, President, 3551 Camino Mira Costa, Suite C, San Clemente California 92672; and (ii) If to Owner: At the address stated below Owner's Signature block on the first page of this Agreement. The parties may, from time to time and at any time, change their respective addresses and each will have the right to specify as its address any other address by at least ten days' written notice to the other party. 15. Severability. Whenever possible, each provision of this Agreement will be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 16. Complete Agreement. This Agreement and any related documents delivered concurrently herewith, contain the complete agreement between the parties relating to the subject of this Agreement and supersede any prior understandings, agreements or representations by or between the parties, written or oral, which may be related to the subject matter hereof in any way. 17. Attorneys' Fees and Legal Expenses. If any proceeding or action is brought to recover any amount under this Agreement, or for or on account of any breach of, or to enforce or interpret any of the terms, covenants, or conditions of this Agreement, the prevailing party will be entitled to recover from the other party, as part of the prevailing party's costs, reasonable attorneys' fees, the amount of which will be fixed by the court, and will be made a part of any judgment rendered. 18. Further Assurances. PropertyBureau and Owner will each sign such other documents and take such actions as the other may reasonably request in order to effect the relationships, services and activities contemplated by this Agreement and to account for and document those activities. 19. Governing Law. The internal law, and not the law of conflicts, of the state in which the Owner is located will govern all questions concerning the construction, validity and interpretation of this Agreement and the performance of the obligations imposed by this Agreement. The proper venue for any proceeding at law or in equity will be the state and county in which the Owner is located, and the parties waive any right to object to the venue. 20. Relationship of the Parties. The relationship created hereunder between Owner and PropertyBureau will be solely that of independent contractors entering into an agreement. No representations or assertions will be made or actions taken by either party that could imply or establish any agency, joint venture, partnership, employment or trust relationship between the parties with respect to the subject matter of this Agreement. Except as expressly provided in this Agreement, neither party will have any authority or power whatsoever to enter into any agreement, contract or commitment on behalf of the other, or to create any liability or obligation whatsoever on behalf of the other, to any person or entity. Whenever PropertyBureau is given discretion in this Agreement, PropertyBureau may exercise that discretion solely in any manner PropertyBureau deems appropriate. 21. Force Majeure. Neither party will be liable for any failure of or delay in the performance of this Agreement for the period that, such failure or delay is due to acts of God, public enemy, war, strikes or labor disputes, or any other cause beyond the parties' reasonable control (each a "Force Majeure "), it being understood that lack of financial resources will not to be deemed a cause beyond a party's control. Each party will notify the other party promptly of the occurrence of any Force Majeure and carry out this Agreement as promptly as practicable after such Force Majeure is terminated. The existence of any Force Majeure will not extend the term of this Agreement. 22. Counterparts. This Agreement may be signed in any number of counterparts Rev 6/12/02 Page 4 of 4 Addendum to Property Disposition Services Agreement This addendum is attached to and made part of the City of South Miami Disposition Services Agreement dated September 19, 2002 The Agreement is modified as follows: Under TERM AND TERMINATION Item 11. The following phrase will be added. "Unless the material breach was caused by PropertyBureau, then PropertyBureau shall be responsible for the shipping costs associated with return of property to Owner. Under INDEMNIFICATION Item 12. Does not apply to this agreement and shall be considered deleted. Under LIMITATIONS ON LIABILITY Item 13. The following sentence shall be added. "In no event the is amount to exceed the amounts established in Section 768.79, FLA, STAT." Under ATTORNEY FEES and LEGAL EXPENSES Item 17. The following sentence shall be added. "Neither party may recover prejudgment interest." Date For "Owner" L � Date For Property Bureau -vroperty Bureau Page I of l I�'�Ii lno�� per�anrr�l �ha�ihip � To A�ns RAP I I W 0 U SM Today's law enforcement agencies have property rooms full of stolen or forfeited goods. The rightful owners are not easily identified, and once merchandise is no longer needed as evidence, it must be disposed of properly. Enter Property Bureau. Founded and managed by former police officers, Property Bureau harnesses the power of the Internet to quickly move items out of police property rooms, reduce personnel costs and generate revenue well beyond traditional police auction methods. And there is no cost to the participating police or sheriffs department. Property Bureau has taken full advantage of the Internet's potential by 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 with a huge array of products to choose from. As opposed to selling in lots, each item is merchandised individually with a photo and description, generating revenue much higher than traditional offline police auctions. Site traffic is driven by offline and online advertising and public relations campaigns. As a 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 for auditing purposes. Property Bureau is responsible for all 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 SteaiitBack.com, the nation's only privately owned national registry of stolen goods. Private citizens are invited to register on SteaiitBack.com any items with serial numbers they have lost or reported stolen to their local police department. SteaiitBack.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 it may be returned to its 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 Tom Fegan(o)PropertyBureau.com or feel free to call our corporate offices at (800)799 -2440 ext25. http:// www.propertybureau.com/how.html 11/11/2003 3551 Camino Mira Costa I Suite C I San Clemente, CA 92672 P14949-234-0204 1 800.799.2440 1 Fx 949. 234.0047 4�I WJ KEY MANAGEMENT AND ADVISORS Thomas P. Lane, one of the company's founders, has served as its Chairman and CEO since inception. A graduate of St. 3ohn'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 as a police officer and detective of the 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's first SWAT team. He was also the founder of DARE (Drug Abuse Resistance Education), an organization now active in all fifty states and several foreign countries. Mr. Gates' responsibilities with Property Bureau are business development with police and sheriff departments 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 sizes and industries. Following a successful career as a Partner in the 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, and as an advisor /investor, he assisted 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 combination of hands -on experience in operations and strategic investment give a particularly useful vantage point to a 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, transportation and logistics, having served in senior executive positions with the Target, Petco and Smart & Final chains. He has planned and successfully implemented seven new distribution centers and consolidated three distribution centers into one while reducing operating and inventory costs by over 30 %. Ba ck C�p k COM nor. '2t �. v k WOM Of � F 4 Auction Notice Notice of Sale of Various Surplus, Found or Seized Property The Fort Lauderdale Police Department is pleased to announce that we will sell miscellaneous items (small electronics, computer equipment, household items, cell phones, automobile accessories, and jewelry). The auction will be conducted on the Internet. Interested persons may view the items and submit their bids by logging onto www.propertyroom.com. Bidding will commence (05 /18/03) and will continue until the date indicated. All sales are subject to the bidder's responsibility for shipping and handling. All sales are final. For more information on how to participate in this auction, log onto one of the websites indicated above. The Fort Lauderdale Police Department makes no guarantee or warranty, expressed or implied, of any nature as to the condition of the goods offered for sale. AUCTION NOTICE FOR ADDITIONAL INFORMATION Call the City of Fort Lauderdale Auction Hotline 954- 828 -5960 for Recorded Information iY Auction Notice 1-fine I an--site Notice of Sale of Various Surplus, Found or Seized Property The Fort Lauderdale Police Department is pleased to announce that we will sell miscellaneous items (small electronics, computer equipment, household items, cell phones, automobile accessories, and jewelry). The auction will be conducted on the Internet. Interested persons may view the items and submit their bids b y Y logging onto 11awv ppe r._ oom com. Bidding will commence (05118103) and will continue until the date indicates!. All sales are subject to the bidder's responsibility for shipping and handling. All sales are final. For more information on how to participate in this auction, log onto one of the websites indicated above. The Fort Lauderdale Police Department makes no guarantee or warranty, expressed or implied, of any nature as to the condition of the goods offered for sale. AUCTION NOTICE FOR ADDITIONAL INFORMATION Call the City of Fort Lauderdale Auction Hotline 954- 828 -5960 for Recorded information r 3551 Camino Mira Costa I Suite C I San Clemente, CA 92672 F a PH 949.234.0204 1 800-799-2440 1 FX 949234.0047 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 no cost 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. Call us for your free CD at (800) 799 -2440 and judge for yourself. We look forward to hearing from you. Very truly yours, 40? S, ZI Thomas P. Lane Chairman Ii �.uapier isJ, section 7. rage 1 of 1 GENERAL LAWS OF MASSACHUSETTS PART I. ADMINISTRATION OF THE GOVERNMENT. TITLE XX. PUBLIC SAFETY AND GOOD ORDER. CHAP'T'ER 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 taken from a person under arrest comes into the possession of a member of the police department of a city by virtue of his office, he shall deliver the same to the officer or member of the department designated by the rules thereof, and shall thereupon be relieved from further responsibility therefor. The officer or member to whom such property is so delivered shall give notice as provided in section one of chapter one hundred and thirty -four. The word " "city" as used in this and the four following sections shall include town. Return to: ** Next Section ** Previous Section ** Chapter Table of Contents ** L egislgiye Home Page in.v.L - L.napter 1.3�), Section 8. Page l of 1 GENERAL LAWS OF MASSACHUSETTS PART I. ADMINISTRATION OF THE GOVERNMENT. TITLE X.X. PUBLIC SAFETY AND GOOD ORDER. CHAPTER 135. UNCLAINIED'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 a description of the property to be sold, first being given by publishing the same once in each of three successive weeks in a newspaper published in such city. Any violation of the provisions of this section shall be punished by a fine of not less than fifty nor more than one hundred dollars and by forfeiture of any such property obtained as a result of such violation. Return to: ** Next Section ** Previous Section ** Chapter Table of Contents ** Legislative Home Page 11/6/2002 htip: / /www.state.ma.us /legis /laws /mgl/135 -8.htm GENERAL LAWS OF MASSACHUSETTS kluge 1 PAICr I. ADNUNISTRATION OF THE GOVERNMENT. TITLE XX. PUBLIC SAFETY AND GOOD ORDER. CHAefElt 13S. UNCLAIMED AND ABANDONED PROPERTY. Chztpter 135: Section 10. Proceeds of sale. Section 10. The proceeds of such sale, or the balance of such unclaimed money, after deducting all reasonable charges and expenses incurred on such property, shall be paid into the city treasury. Zewrn to: •* Next Section ** Previous Scetion ** Chapter Table of Contents ** Legislative Home Page �www. stutC. ma.usllegis /laws/mgU135- 10.hirn 11/6/2002 POLICE DEPARTMENT 237 W. COMMONWEALTH AVE: - FULLERTON, CA 92832 -1881 - (714) 738 -6800 *FAX (714) 738 -0961 PATRICK E. McKINLEY CHIEFOFPOUCE September 17, 2002 To Whom It May Concern: This is a letter of recommendation for the Police Department's usage of "Property Bureau." The company is located at 3559 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 $5,000 in revenue from the Property Bureau. We have found them to be a very reputable company and have no unresolved issues or discrepancies with the company. The Fullerton Police Department highly recommends the use of the Property Bureau for disposal of excess property. With best regards, P TRICK E. McKINLEY Chief of Police PEM /rk SAN MAT1EO COUNTY SHERIFF'S OFFICE Support Services Bureau Captain Donald M. O'Keefe MEMORANDUM DATE: June 12, 2003 MEMO TO: County Purchasing Department FROM: Captain Donald M. O'Keefe Support Services Division SIUWECT.- SOLE SOURCE FOR ON LINE AUCTION I acct requesting to utilize PropertyBureau.com as a sole source provider to conduct an auction on- They are unique in that they auction only poliagovernment property and they will pick up all the itcuta at one time from oua iQ1ity.' PropwtyBureau.com s appraisers appnr K cortify, grade and value itcma obtained from law tar"c=cni surplus, insuring that value itetus, otherwise often said in lots are property valued and/or rocognizcd. The, appraised value of an item will be listed on the website along with a digital photo and technical description. Itcrns arc scold iadividuaily, and not in lots, generating incroased sales revenue. No long -term contract is required and no up front fees, or fixed' costs, to utilize this service. A reduction in manpower hrourx W costs would be seen by utilii4 this service. PropertyBurew.corn would also dispose of all uon -sold iterns helping to eiimicate storage problems for the San Mateo County Sha es Office. ComparinS to the current system of auctioning, the Internet provider and its related efficiencies offers an inwv4.wd body of "torncrs. Instrad of a fixed date, limited time auction, the internet auction offers a wold wide audience, the opportunity to bid on products 24 hours a day, 7 d$ys it WOOL Up to this point, 1 have not found another vendor capable of doing the above. I would like to use than as a pilot Prop= for at least one year to verify the cost savings to the agency. If ProperryBureau.com can provide the agency with the best results, then f would want to continue using this company. Your considoracion in this matter is greatly appreciated. if you require further, please give me a call at 363.4456. cc: Lee tazaro, Dcpury Director Spul�c�twunwut: crictr�c +io�p41rc11w1'rapatyCAYT'. Gac i' iLry fr r, f f w List of References Lt. Rich Meridith Sgt. Chuck Meadows Sacramento County Sheriffs Dept San Bernardino Sheriff's Dept. (916) 874 -8064 (909) 387 -2563 Lt. Tom Buckley San Francisco Police Department (415) 553 -1378 Lt. Tom Savage Gwinnett County Police -GA (770) 513 -5062 savaget@co.gwinnett.ga.us Capt. Tracy Tingey So. Salt Lake Police Department (801) 483 -6082 tingey@sslpd.state.ut.us Elaine Wesely City of Sunnyvale Purchasing Mgr, (408) 730 -7418 ewcse1y@ci.sunnyvale.ca.us Lt. Rick Hart Oakland Police Department (510) 238 -3380 Brent Brown Yndaanapolis Police Department (317) 327 -3459 0074@indygov.org Yolanda Vazquez Broward County Sheriffs Dept. (954) 765 -4352 Yolanda velazquez @sheriff.org Asst. Sheriff Doug Storm Orange County Sheriff's Dept. (714) 647 -1803 Ms. Kelley Donnelly Mercer Island Police Dept. 206 -236 -3500 x595 kelly.donnelly@ci.mercer-island.wa.us Ms. Joyce Billingsley Beaumont Police Dept. -TX (409) 880 -3808 Sgt. Sean Lynch Alameda Police Department (510) 748 -4508 Capt. Lou Griffith Framingham Police Dept. -MA (508) 872 -1212 0 rroperty Bureau Page 1 of 7 Property Bureau is the leading Internet Auction Services Company serving law enforcement in the United States. In addition to our auction site at www.pro _erroom.com, we maintain the only nationwide registry available to the general public for recovering lost or stolen goods. We record the serial number of each item that we receive and check these numbers against our national registry. If there is a match, we will contact the owner and return the item. To register your lost or stolen items, visit www.stealitback.com. Property Bureau is a member of the International Association of Chief of Police, 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 Arcata Police Department Benicia Brentwood Police Department Burlingame Police Department Butte County Sheriff's Department California State University Monterey Bay Campbell Contra Costa County Sheriffs 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 Fremont Police Department Gilroy Police Department Half Moon Bay Police Department Hercules Police Department Hollister Police Department Humboldt County Sheriff's Department Lakeport Lodi Police Department Los Gatos Police Department Manteca Marin County Sheriff's 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 Sheriff's Department Sonoma Police Department Sunnyvale Police Department Susanville Sutter County Public Administrator Sutter County Sheriff's Department Tehama County Sheriffs Office Trinity County Sheriffs Office Tuolumne County U.N.E.T Ukiah Police Department Vacaville Police Department Vallejo Police Department Watsonville Police Department Williams Woodland Police Department Yuba County Sheriffs Department Southern California Page 2 of 7 http:// www .propertybureau.com/list.html 11/11/2003 Property Bureau 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 Sheriff's 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 Sheriff's Department La Habra La Verne Police Department Los Angeles Police Department Los Angeles County Sheriff's 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 Sheriff's 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 Page 3 of 7 http:// www.propertybureau.com/list.htmi 11/11/2003 Property Bureau 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 Sheriff's Office Connecticut East Hartford Police Department Florida Bradenton Police Department Broward County Sheriffs Department Collier County Sheriffs Office Coral Sprigs 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 Page 4 of 7 11/11/2003 Property Bureau Honolulu Idaho Chubbuck Indiana Bloomington Police Department Indianapolis Police Department Louisiana St. Charles Parrish Sheriff's Office Maryland Ocean City Massachusetts Acton Brookline Police Department Framingham Police Department Medford Swampscott Police Department Town of Ashland Police Department Willamstown WellesleyPolice Department Missouri Springfield St.Louis Sheriff's Department Nebraska Sarpy County Sheriff's Office Nevada Reno Police Department New York New York Police Department Oklahoma Bartlesville Broken Arrow Muskogee http://www.propertybureau.com/list.html Page S of 7 11/11/2003 Property Bureau Norman Tulsa Police Department Oregon Baker City Central Point Washington County OR Pennsylvania Philadelphia Texas Utah Beaumont Texas Police Department Port Arthur Wichita Falls 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 Des Moines Police Department Seized Edmonds Police Department Federal Way Issaquah Police Department King County Sheriff's 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 Page 6 of 7 11/11/2003 Property Bureau Mill Creek Police Department Monroe Police Deparment Mountlake Terrace Newport Police Department Pacific Pierce County Sheriff's Office Port Angeles Police Department Port Townsend Renton Police Department Seattle Sequim Police Department Skagit County Tukwila Police Department Wapato Wenatchee Woodland Yakima County Yelm Page 7 of 7 How It Works I Police Alliances I Media Converaae I Company News I Key Personnel I Scholarship Fund Contact Us I Go To Auctions O Property Bureau, Inc. 2001 http:// www.propertybureau.com/list.html � �� £ 3� � � � � : !4�!! !�:<* Y: \ { \�� / :�f §{ �!«2f \/ rm\ Today's law enforcement agencies Property Bureau harnesses the have property rooms full of stolen or power of the Internet to quickly forfeited goods. Often, the rightful move items out of your property owners are not easily identified, and room, reduce personnel costs once merchandise is no longer needed and generate revenue well beyond as evidence, it must be disposed traditional police auction methods. of p 0 erly. _ - - A-nd`there is no cost to—yo ur En' ter Property Bureau. Founded and department whatsoever. managed by former police officers, we have developed and deployed a way to leverage these goods into addi- tional funding for our partnered law en%rcement agencies. , z We've taken full advantage of the Internet's potential by creating Steal It Back.com, an online auction site that gives property room items maximum exposure, 24 hours a day, 7 days a week. It's a dynamic marketplace that provides our customers with a huge array of products to choose from. As opposed to selling in lots, each item is merchandised individually with a photo and description, gen- erating revenue much higher than traditional offline police auctions. Site traffic will be driven by offline and online advertising and public relations campaigns. Bottom line, a partnership with Property Bureau and Steal It Back. com will yield dramatically increased auction revenues that law enforce- ment agencies -can use for such needs as additional personnel, new equipment and facilities. FairMarket Networks' a • local Global - Users Users r Police Partner L ' Sites Property- Bureau /Steal It Back Traditional Police Auctions 24/7 year -round online auction at Stead It Back.com Limited selling dates and bidding time of 4 to 6 hours bidding runs 7 to `10 days Unlimited worldwide buyer potential- initially up to Limited local buyer participation 50 million people per month; encourages high bid price All,forms of payment accepted, including credit card, Cash receipts must be handled EFT and bank instruments -- Property Bureau digitally photographs Police personnel time devoted to sorting items :q rid merchandises items individually into lots for auction` Complete audit trail back to case file number` No audit trail on auction items *Property Bureau handles packing, shipping, Buyers responsible for picking up items they customer service win at auction - -- = -- _ — Revenues wired to partner agencies on frequent basis; Revenues received sporadically at auction increase cash flow and,interest earnings ,. As items become'available, Property. Bureau Limited auction dates require item storage personneV place them Min face It Back.com auction `between auctions for quick disposal' Property Bureau uses a proprietary bar coding system to manage the merchandising of your property room items and their placement in our online auction. All items are tracked by case or control number, with. on- command reports available for auditing purposes. Upon.release, merchandise from your property room is`exposed o prices as high as the market will bear. Property Bureau is responsible for all fulfillment and customer service. Revenue generated from the sale of property room goods is shared by the police agency and Property Bureau, with a portion of Property Bureau's earnings donated to scholarships for children of police officers killed in the line of duty. Pr-)E, [ < f Ra ` BURE A U. 3551 Camino Mira Costa, Suite C San Clemente, California 92672 PH 949.234.0204 FX 949.234.0047 ,Steal�� Back ADDENDUM TO PROPERTYBUREAU, INC. PROPERTY DISPOSITION SERVICES AGREEMENT THIS ADDENDUM to the property disposition services agreement is made and entered into this day of February, 2004 by and between the City of South Miami Police Department, and the PropertyBureau, Inc., (auctioneer). WHEREAS, the parties agree to adhere to the basic terms and conditions set forth in the original property disposition services agreement (agreement), and WHEREAS, the purpose of this addendum to the property disposition services agreement is to amend and revise the terms of the original agreement. NOW THEREFORE, in consideration of the sum of $10.00, the mutual promises and covenants contained in this addendum, and for other good and valuable consideration, the receipt and legal sufficiency of which is acknowledged by both parties, the parties agree as follows: 1. WHEREAS CLAUSES 1.1 The above whereas clauses are incorporated and made a part of this addendum to the property disposition services agreement which agreement is attached as exhibit 1. 2. TERM AND TERMINATION 2.1 Item 11 to the agreement shall be amended, and the following phrase will be added: "Unless the material breach was caused by the City of South Miami Police Department, then PropertyBureau shall be responsible for the shipping costs associated with return of property to owner." 3. INDEMNIFICATION Item 12 to the agreement shall be deleted in its entirety and a new item 12 be added: "The city shall not be held liable or responsible for any claims which may result from acts, errors or omissions of auctioneer, subcontractors, suppliers or laborers. In reviewing, approving or rejecting any submissions or acts of auctioneer, the city in no way assumes responsibility or liability for the acts, errors or omissions of auctioneer or subcontractors." Page 1 of 4 Auctioneer shall not commence work under this agreement until she has obtained all insurance required by the city. Auctioneer shall defend, indemnify and hold the city harmless from any and all 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 and laborers incident to the performance of auctioneer's services under this agreement. Auctioneer shall pay all claims, losses, fines, penalties, costs and expenses of any nature whatsoever resulting from its intentional misconduct or negligence. Auctioneer shall maintain during the term of this agreement the following insurance: A. Comprehensive general liability insurance with broad form endorsement, completed operations and products liability, contractual liability, severability of interest with cross liability provision, and personal injury and property damage liability with at least a combined single limit of $100,000.00 per person and $200,000.00 per occurrence for bodily injury and property damage liability. The policy or policies shall name city as additional insured and shall reflect the hold harmless provision contained herein. B. Workers' Compensation Insurance in compliance with Chapter 440, Florida Statutes, as presently written or hereafter amended. C. The policies shall contain waiver of subrogation against the city where applicable and shall expressly provide that the policy or policies are primary over any other insurance that the city may have. The city reserves the right to request a copy of the required policies for review. All policies shall contain a "severability of interest" or "cross liability' clause without obligation for premium payment of the city. D. All insurance policies required must be written by a company or companies rated at least "A" as to management and at least "Class X" as to financial strength in the latest edition of the Best's Insurance Guide, published by Alfred M. Best Co., Inc., Fulton Street, New York, New York, and qualified to do business under the laws of the State of Florida. Page 2 of 4 E. The policy or policies of insurance required shall be written in a manner such that the policy or policies may not be canceled or materially changed without 60 days advance written notice to the city. Written notice shall be sent to 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. Auctioneer shall furnish certificates of insurance to the city prior to the commencement of operations. The certificates shall clearly indicate that auctioneer has obtained insurance in the type, amount, and classification as required for strict compliance with this paragraph. Compliance with the foregoing requirements shall not relieve auctioneer of its liability and obligations under this agreement. 4. LIMITATIONS ON LIABILITY 4.1 Item 13 to the agreement shall be amended and the following sentence shall be added at the end of the paragraph: "In no event the is the amount to exceed the amounts established in section 768.79, Fla. Stat." 5. ATTORNEY FEES AND LEGAL EXPENSES 5.1 Item 17 to the agreement shall be amended and the following sentence shall be added at the end of the paragraph: "Neither party may recover prejudgment interest." 6. COMPLIANCE WITH 705.103, FLA. STAT. 6.1 A new paragraph 23 shall be added to the agreement and shall state: "23. PropertyBureau shall comply with all notice provisions and general requirements of law as related to auctions and contained in section 705.103, Fla. Stat." Page 3 of 4 IN WITNESS WHEREOF, the parties to this addendum, acting through their duly authorized officers, have executed this addendum to the property disposition services agreement attached as exhibit 1 as of the date first written above. CITY OF SOUTH MIAMI, PROPERTYBUREAU, INC. 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: Earl G. Gallop, City Attorney By: Thomas Fegan, Contracting Officer JAMy Documents\Addendum to property bureau, inc -doc Page 4 of 4