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HomeMy WebLinkAboutPR 24962 CONTRACT WITH RENE BATER AUCTIONEERS F ort rthu r T Tcsas INTEROFFICE MEMORANDUM Office of the Finance Department Date: July 26,2026 To: The Honorable Mayor and City Council Through: Ronald Burton, CPM, City Manager From: Clifton Williams, Purchasing Manager RE: PR 24962 Authorization for City Manager to enter into a Contract with Rene Bates, Auctioneers,to conduct online auctions. Nature of the request: The Purchasing Division requests City Council approval to authorize the City Manager to execute a contract with Rene Bates Auctioneers, Inc., of McKinney, Texas, through BuyBoard Cooperative Contract No.708-23,to provide online auction services on an as-needed basis for the sale of surplus City property. The City periodically accumulates personal property, including office furniture, computers, office equipment, vehicles, equipment, and heavy equipment, that has become surplus, obsolete, non- functional, or no longer necessary for municipal operations. Utilizing an online auction platform provides the City with an efficient and transparent method of disposing of surplus property while maximizing public exposure and competitive bidding opportunities. Online auctions are accessible twenty-four (24) hours per day, seven (7) days per week, and allow prospective bidders to preview available property for an extended period prior to the auction closing, thereby increasing the likelihood of obtaining fair market value for the property. Rene Bates Auctioneers, Inc. will conduct online auctions at the City's request in accordance with the terms and conditions of BuyBoard Cooperative Contract No. 708-23. As outlined in Exhibit "A" to the contract, the auctioneer will market the surplus property, conduct the online auction, collect payment from successful bidders, and remit the appropriate proceeds to the City's designated representative after deducting only those fees authorized under the contract. Approval of this contract does not authorize the sale of any specific City property. Pursuant to the City Charter and applicable law, all City-owned property proposed for disposition must first be declared surplus and approved by the City Council through the adoption of an ordinance before being offered for sale through the online auction process. Recommendation: The City has previously authorized participation in the BuyBoard Cooperative Purchasing Program through Resolution No. 02-341. Utilizing this cooperative purchasing contract satisfies applicable procurement requirements and provides the City with a competitively procured auction services provider. Budget Consideration: The agreement provides these services at no direct cost to the City,with compensation derived from the auction transactions as provided in the contract. - — -- P.R. NO.24962 07/26/2026 CEW-TNR RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH RENE BATES AUCTIONEERS, INC. OF MCKINNEY, TEXAS, THROUGH BUYBOARD CONTRACT 708-23 TO PROVIDE ONLINE AUCTION SERVICES ON AN AS- NEEDED BASIS FOR THE SALE OF SURPLUS CITY PROPERTY, INCLUDING FURNITURE, MINOR EQUIPMENT, VEHICLES, EQUIPMENT, AND HEAVY EQUIPMENT,AT NO DIRECT COST TO THE CITY WHEREAS, the City of Port Arthur periodically identifies personal property, including furniture, office equipment, computers, vehicles, equipment, and heavy equipment, that has become surplus, obsolete,worn, or no longer needed for municipal purposes; and WHEREAS,the Purchasing Division has recommended that the City utilize the services of Rene Bates Auctioneers, Inc., of McKinney, Texas, through BuyBoard Cooperative Contract No. 708-23, to conduct online auctions on an as-needed basis for the sale of surplus City property; and WHEREAS, pursuant to the City Charter, surplus City-owned property proposed for sale shall first be presented to the City Council and authorized for disposition by ordinance prior to being offered for sale at auction; and WHEREAS, conducting online auctions provides the City with access to a significantly larger pool of prospective purchasers, allows property to be marketed continuously twenty-four(24)hours per day, seven (7) days per week, and maximizes competition by permitting bidders to preview available property for up to two (2)weeks before the auction closes; and WHEREAS,the City Council previously authorized participation in the BuyBoard Cooperative Purchasing Program by adopting Resolution No. 02-341, thereby permitting the City to procure goods and services through competitively awarded cooperative purchasing contracts; and WHEREAS, pursuant to the proposed contract and as further described in Exhibit "A," Rene Bates Auctioneers,Inc.will conduct online auctions at the request of the City,collect purchase proceeds from successful bidders, deduct only those fees authorized by the contract, and remit the remaining proceeds to the City's designated representative; and WHEREAS, the Purchasing Division recommends approval of the contract, and the City Council finds that utilizing Rene Bates Auctioneers,Inc.is in the best interest of the City of Port Arthur. P.R.NO. 24962 07/26/2026 CEW-TNR NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. The City Council hereby authorizes the City Manager to execute a contract with Rene Bates Auctioneers, Inc., of McKinney, Texas, through BuyBoard Cooperative Contract No. 708- 23, to provide online auction services on an as-needed basis for the sale of surplus City property, including furniture,minor equipment,vehicles,equipment,and heavy equipment,at no direct cost to the City, in substantially the form attached hereto. Section 3. Nothing in this Resolution authorizes the sale of any specific item of City property. Each item proposed for disposition shall be declared surplus and approved for sale by the City Council in accordance with the requirements of the City Charter prior to being offered at auction. Section 4. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ,ADOPTED,AND APPROVED,this day of August 2026,A.D., at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following Vote: AYES: Mayor: Councilmembers: NOES: Charlotte M. Moses,Mayor P.R.NO 24962 07/26/2026 CEW PAGE 3OF3 ATTEST: Christe Whitley Ned, City Secretary APPROVE Roxann Pais Cotroneo, City Attorney APPROVED F ADMINISTRATION: Ronald B , P ity Manager Cliff n Williams, Purchasing Manager APPROVED AS TO AVAILABILITY OF FUNDS: Lynda Bo e jDirector of Finance . - _. .... _. "EXHIBIT A" a s PENt filliES ffllCTIONEions senotiffRame 1650 W.Virginia St.,Suite 104,McKinney,TX 75069 (972)548-9636 • www.renebates.com r 7 Rene Bates Auctioneers, Inc. (hereinafter referred to as RBAI) proposes to conduct Online Auctions for the City of Port Arthur,Texas on an as needed basis under the following terms and conditions: Rene Bates Auctioneers, Inc:s Responsibilities: 1. Conduct online auctions for the City of Port Arthur,Texas at their request. 2. Set starting prices for each online auction item or coordinate with your designee to set starting prices for each online auction item, if so desired. 3. Post all online auction information on www.renebates.com. 4. Conduct and monitor auction items for approximately two weeks prior to the closing date of each online auction conducted. 5. Generate and send a minimum of two email blast notices to our entire email database when your auction has been posted. 6. Invoice all successful bidders once your auction has closed. 7. Collect all auction proceeds including any applicable sales tax from the successful bidder(s). 8. Generate paid receipts to the buyer with a copy to your approved distribution list. 9. Balance all auction payments received with actual sales results. 10. Remit all monies, less commission and sales tax,to your designee. 11. Remit all sales tax collected to the State of Texas Comptroller under our Texas Sales and Use Tax Permit#17517183822 on a monthly basis. 12. Maintain all documentation for exemptions, resale certificates, and export certifications for sales tax for the State of Texas. 13. Maintain records of all your auctions for three years. City of Port Arthur,Texas Responsibilities: ,.- 1. Provide a list of all items to be sold and gather information on all auction items and take digital photographs of each auction and send to RBAI. 2. Have auction contact person (Fleet Manager or designee) complete Vehicle Information Sheets on all vehicles and heavy equipment and forward to RBAI. 3. Conduct onsite viewing of all auction items before the closing of each online auction in order for bidders to physically inspect auction items. 4. Prepare and submit all legal advertising as required by the City of Port Arthur, Texas. Provide a link on your website to www.renebates.com to direct potential buyers to your auction, if so desired. 5. Transfer all titles to successful buyers after the City of Port Arthur,Texas has received an electronic paid receipt from RBAI. 6. Oversee removal and checkout of all paid auction items. Rene Bates Auctioneers, Inc. proposes to conduct Online Auctions for the City of Port Arthur, Texas for a 10% Buyer's Premium to be charged to the Buyer at NO cost to the client. The Buyer's Premium will be retained by RBAI for the services provided. These auctions will be conducted on an as needed basis for the City of Port Arthur, Texas. This contract is being conducted under Buyboard Contract for Auctioneer Services#708-23. Date:4/9/2026 Sheryl Bates, President Rene Bates Auctioneers, Inc. Date: City of Port Arthur,Texas Authorized Signer* *Any items submitted for public auction via this contract have been declared surplus through the appropriate channels of the selling entity. Sheryl Bates Texas Auctioneer License#15025 Michelle Bates Texas Auctioneer License#12100 All auctioneers are licensed and regulated by the Texas Department of Licensing and Regulation and are covered by a Recovery Fund administered by the Department. Licensure with the Department does not imply approval or endorsement by the State of Texas. If you have an unresolved complaint it should be directed to:Texas Department of Licensing and Regulation, P.O. Box 12157,Austin,Texas 78711, (512)463-2906,www.tdlr.texas.gov.