HomeMy WebLinkAboutPR 11720: CITY AUCTION Memorandum
Ci(y of Port Arthur, Texas
Finance Department
From:
Date:
Subject:
Steve Fitzgibbons, Ci~a~a~
Rebecca Underhill, Dil[eyJ~'~ff Fin~ce
April 4, 2002 r- -
Proposed Resolution 17720
RECOMMENDATION
I recommend that the City Council approve proposed resolution No. 11720, which
authorizes the third year of a five year contract with Rene' Bates Auctioneers, Inc. to
conduct the sale of surplus property.
BACKGROUND
The City conducts an auction of surplus property annually. The property that is
auctioned is primarily vehicles and other rolling stock that are retired during the year. In
1999, the City submitted a Request for Proposal (RFP) for auctioneering services. On
September 21, 1999, the City. Council adopted resolution 99-202 which awarded the
contract to Rene' Bates Auctioneers, Inc. The contract provided that the services be
performed for compensation of 5.799% of the gross sales. The contract period is for five
years, and this is the third year of the contract.
P.R. No. 11720
03/27/02 CEWJ
Page 1
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE THIRD YEAR OF A FIVE
YEAR CONTRACT WITH RENE' BATES AUCTIONEERS, INC.
FOR THE SALE OF SURPLUS PROPERTY.
WHEREAS, the City Council approved a contract with Rene' Bates Auctioneers, Inc. on
September 21, 1999; and,
WHEREAS, the contract provided for annual renewal each year up to five years at the
City's option; and,
WHEREAS, the City Council desires to renew the contract for an additional year; and,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
THAT, the City Council of the City of Port Arthur hereby approves the renewal of the
existing contract between the City'of Port Arthur and Rene' Bates Auctioneers, Inc. as provided
in the tenns of the current contract, copy of which is attached hereto as Exhibit "A", for
Auctioneer Services in the amount of five point seven nine nine percent (5.799%) of the gross
sales of all vehicles, heavy equipment and general merchandise less sales tax collected; and,
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
A.D., 2002 at a
Meeting of the City Council of the City of Port Arthur, Texas, by the
following vote:
P.R. No. 11720
03/27/02 CEWJ
Page 2
AYES: Mayor
Councilmembers:
NOES:
Mayor
ATTEST:
Jan Stroder, Acting City Secretaxy
P.R. No. 11720
03/2702 CEW.J
Page 3
APPROVED AS TO FORM AND LEGALITY:
Mark Sokolow, City Attomey
APPROVED FOR ADMINISTRATION:
Steve Fitzgibbons, City Manager
~ROVED AS.-T~ A~VAILABIL1 ~T~ OF FUNDS:
Rebecca Underhill, CPA, Finance Director
AG~W~NT
TH~$ A~ZR~M~-'NT, mad~ ~his 27 day of September
between a[n) Rene' Bates Auctioneers, Inc.
individual, fizm~artnership or corporation herein acting by and through
hereinafter called "Auctioneer", and the City of Port A=th~r, a -~,~icipai
corporation orgamized under the laws of the State of Texas, hereinafter called
the "O~r~er" or "City."
WITb-ESS~TH~ That for and in consideration of the pa~ts, terms, conditions
~nd ag-~e~ments set forth herein, Owner and Auctioneer agu~ee as follows:
i. ~he Auctioneer shall provic~ ~ro£essioual auction services to dispose
surplus property at a sale ~rovided by the City o£ Port A.rthu=, Texas for
Five point seven,iht nine peroe~t(5.799%) of gross sales of all vehicles,
2. The Auctioneer shall furnish audio am~li£ication equipment and ta~e
recorders to record the proceedings to assure accurate bidding and provid~
cassette tabes for the city at the end of the auction.
3. The Auctioneer shall conduct the auction with experienced auctioneers and
other personnel a~d coordinate the auction ~rc~axation a~d set up.
4. ~he Auctioneer shall coum~nce advertising the auction four wee~ ~rior to
the sale.
5. The Auctioneer shall prepare, print and r a ail a minimum of a of 2,000
auction brochures at least twenty (20) days prior to each auction. Brochures
to include a list and pictures of the item~ to be offered for sale as well as
any other information the City requires.
6. Ail advertising of the a~ction must be pre-approved by the City prier to
publication.
7. The Auutioneer shall m~intain a mailing list of prospective buyers, adding
a copy of
8. The Auctioneer shall list the City of Port A~thur auctions on auctioneer's
printed and advertised calendar.
9. The Auctioneer shall advertise in specialized national and/or state trade
publications targeting buyers of specialized merchandise when the City offers
such iteras as aircraft, boats and heavy road machinery or equipment.
10. The Auctioneer shall provide City of Port Arthur 300 auction brochures and
verbally announce City of Port ~thur auctions at all other auctions conducted
by the contracted auutioneer.
11. The Auctioneer shall personally contact %hose prospective buyers known to
have interest in the t~lDeS of merchandise the City is offering for sale.
12. The auctioneer shall provide buyer identification tags, sales invoices,
receipts and all equipment needed to conduct a professional and orderly
auction. Auctioneer shall also review merchandise being offered, catalogue,
and assign lot nurabers to all iter~ for sale prior to the auction day.
13. The auctioneer shall provide forr~s for the registration of prospective
buyers on the day of the auction. The City staff will assist the registration
of buyers, if needed.
14. The auctioneer shall catalogue sales receipts using the City's unit/tag
numbers assigned to all equipment and item~ to be sold.
15. The auctioneer shall conduct auctions with experienced, qualified and
licensed auctioneers and ring~n who specialize in this t~rpe of auction.
16. The auctioneer shall keep and provide to City an accurate itemized list
of buyers and records of the auctions and shall provide invoices in triplicate
for each lot nun%bet or buyer.
17. The auctioneer shall be responsible for recording all sales at the
auction.
18. Within two (2) hours after the final lot is sold, the auctioneer shall
provide the City with at least two (2) legible copies of a report (in unit/tag
number sequence) of all sales showing unit/tag nu~er, description of
equipment, vehicle identification number/serial number, amount sold for, sales
tax, buyers I.D. n%unbe~, buyer's na~ne, address and telephone n%unber for each.
transaction. In addition, a separate list by department showing unit/tag
nun%bet, description of ec/uipra~nt, vehicle identification nun~er/serial, nu~er,
amount sold for, ~ales tax, buyers I.D. number, buyer's name, adc~re~s and
CAPU~CII,%-~AU~71ONAG~E.$A~
telephone number for each transactio,,. A separate list of all registered
bidders will be provided reflecting the buyer's number, full name, address
and telephone number. A USASCiI format data file on, 2 each., 3 1/2" floppy
diakettes will be provided for transfer to an IBM-compatible computer. Each
data file must include all of the information in the printed transaction
reports using cor~m.a separated values (fields) and terminate each record using
a carriage-return/line feed.
19. The auctioneer shall record the entire auction and provide cassette tapes
and or video tapes for the City at the end of the auction.
20. Payment shall be r~ade to the auctioneer based on a percentage of gross
sales, less sales tax, as stipulated on the Bid Sheet. Pa~anent will include
the total sales actually remitted to the City. No commission will be paid for
equipment and/or merchandise not sold or due to the buyers failure to pay for
the goods on the day of the auction.
21. Auctioneer mhall inventor, categorize a.nd number each itam for t3ac sale.
Taxable it~m~ should be noted for collection of sales tax.
22. Auctioneer shall provide invoices on t~ree-part paper. One copy of t~
invoice is retained by the cashier; two copies are given to the buyer, one
retained as his Bill of Sale and the other ~s given to the check-out personnel
when leaving the sale site.
23. Auctioneer shall provide t~rn/~.orary ~aper) dealer tags, valid for
twenty days, to buyers who need them.
24. Auctioneer shall provide personnel ~nd fo~, for the registration of
prospective buyers on th~ day of the auction.
25. Auctioneer shall ~rovi~e the City an accurate it-m~zed list of buyers.
it-m~ not paid for by the buyers.
27. No Buyer's Pr,mium~ili be allowed or accepted by the City of Port
Arthur.
28. INSURANCE: The Auctioneer shall furnish certificates of insurance to the
City's Purchasing~-~ager prior to co~,-ucing work, n~=ting the below listed
insurance requiremmnts for any sub-contractors or independent workn~=n used by
the Contractors in the ~erfo~n~ce of the work specified herein showing
evidence that the Auctioneer has obtained Workm~'s Compensation, General
Liability and Auto--bile Liability Insurance which is required by the City for
perfo~ce of the work specified herein. ~inimum ~nunts of such
insurance to be obtained by the Auctioneer are as follows:
Statutory Texas Wor~mn~'s Co~ensation Insurance; (With
Waiver of Subrogation in favor or the City of Port Arthur its
officer, agents and cn~loyees.)
Co-----rcial General Liability:
(1) Bodily injury $500,000 single i~m~t per oc=urrenoe or
$500,000 eaoh person/S500, 000 per ocourrence.
(2) Property D=m~ge $100,000 per occu=rence.
(3) Mim~m aggregate policy year l~{t $1,000,000.
Co.~roial Automobile Liability Insurance (including owned,
(1) ~m~,m co~ined single l~m~ t $500,000 per occ~=enc~
for bo~ly inj~ ~d property
(2) If in~vidual ~ts are ~rovided, ~n~ l~m~ ts are
$300,000 per ~rson, $500,000 per occ~rence for
inj~ ~d $100,000 per occ=r=nce for property ~m~ge.
d. Contractual Liability Insrarance covering the in~ity
provision of this contract in the s~- ammunt and coverage as
provided for Co-~,~rcial General Liability Policy, specifically
referring to tBis Contract by date and location.
29. This Auctioneer agre-m~ut is for a period of (5) five years, co~-nclng
July 15, 2000. It should be noted that ~s contract may be continued each
fiscal year only after funding appropriations and progr=~- approval have been
granted by the Council of the City of Port A~thu~r. In the event that the
necessar!/ fLu~ding is not a~roved, then the affected contract becomes null and
void, effective October I of the fiscal year for which suc~ al~mroval has been
denied. All contract obliga, tions will prevail for at least 90 days after the
effective date of the contract. For the protection of both parties, this
contract may be canceled thereafter by either party giving 30 days prior
notice in w=iting to the other party.
30. The contract between the parties also includes the following:
1. Request for Proposals
31. This a~e-m~nt can be terminated by Any ~arty with ten raonths notice
32. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be
executed by their duly authorized officials, this Agreemeut in (2 copies)
each of which shall be de~d an original on the date first above written.
Signed on the .day
OWNER:
CITY OF PORT ARTHUR, TE30~
.-'*~: Stephen F:i-tzl~ibbons
ZlTLE: City Manager
ATTEST:
of
.1999~