FW: Consignment Agreement

From: Jennifer Cline

Sent: Fri Mar 06 12:27:25 2015

To: Dan Huff; Sadie Cramer

Subject: FW: Consignment Agreement

Importance: Normal

Attachments: image001.png; C6562 City of Molalla Term Services Contract 2015.pdf;

FYI

Jennifer Cline, P.E.

City of Molalla

Public Works Director

O: 503.759.0218

F: 503.829.3676

"file:///C:

From: Lonny Papp [mailto:lpapp@barnoneauction.com]

Sent: Friday, March 06, 2015 9:35 AM

To: 'Jennifer Cline'

Subject: RE: Consignment Agreement

Hello Jen,

I agree with the concerns you listed. The agreement I sent is really geared toward our private sector clients who only consign with us on occasion. Therefore I have attached a different agreement with the fees removed. This one does say its for a term of a year, but do not be concerned as the City is not bound to only using Bar None. You can just use it on an as needed basis. Please take a look and let me know if you think this one suits the City’s needs. I am very excited that we may be working together and I am looking forward to a long lasting business relationship.

Lonny Papp

Auctioneer/Appraiser

2440 Gold River Road, Suite 200

Rancho Cordova, CA 95670

p: 916-246-2287| f: 916-638-8961 | c: 916-300-3074

barnoneauction.com

From: Jennifer Cline [mailto:jcline@cityofmolalla.com]

Sent: Friday, March 6, 2015 8:35 AM

To: Lonny Papp

Cc: Sadie Cramer; Dan Huff

Subject: RE: Consignment Agreement

Hi Lonny

I have a few concerns with the agreement. The agreement is a bit excessive with all the fees and liability clauses. Here are the items that make me very nervous that our return on sale will be severely diminished. We are a small City with limited funds.

7.) Seller will provide each vehicle with at least 3 gallons of fuel and a charged

battery. Seller herein authorizes Bar None to deduct costs for fuel, tire,

and/or battery replacement as necessary from the seller’s proceeds. A

minimum $20.00 will be charged whenever any fuel must be added by

Bar None. We will sell this with ¼ tank of gas at least, but tires and batteries are as is.

8.) Once an item is consigned to Bar None the item shall not be removed from

the auction without mutual consent from the Seller and Bar None. In the

event that an item is pulled and cannot be sold the Seller agrees to pay sale

Bar None commissions on that item. Cannot agree to this term. In addition you do not identify the reasons to “pull” a vehicle, especially if we deliver.

10.) Seller further agrees to pay Bar None a minimum consignment fee of

$500.00 on any advertised item pulled from the auction, and $250.00

on any non-advertised item pulled from the auction. We cannot risk this.

11.) Seller assumes responsibility for any personal injury or property damage

caused by the seller or his agents, and further agrees to hold Bar None

Auction harmless for any personal injury to himself or his agents, and

any property damage incurred on the sale premises. Bar None Auction

is not responsible for any stolen or damaged property. I don’t understand why your liability insurance does not cover the auctioneers? If someone falls off a piece of equipment, ect the City cannot risk being held liable for others actions. The city cannot agree to this.

Thank You,