Title
Surplus Property Sale (B)
Staff recommends establishing a contract with Weeks Auction Company for monthly or bi-monthly auction services and declaring items at the Surplus Lot to be surplus.
Explanation
Yearly, there are approximately 2,500 surplus property items stored at the City's Surplus Lot located at the Public Works Compound on 39th Avenue. These surplus items consist of scrap materials, office equipment and furniture, construction equipment, vehicles, abandoned and unclaimed property and miscellaneous items. In the past, the City has held an annual auction to dispose of these items. In an attempt to reduce storage costs and increase revenues staff has recently implemented changes to the auction process. The surplus property auctions are now being held monthly or bi-monthly at the auctioneer's site. This process has increased the cash flow for the surplus process as well as reduced storage and personnel costs.
On July 27, 2007, the General Government Purchasing Division solicited Request for Proposal (RFP) on Demand Star for off-site auction services. Purchasing received one response. Finance Department, Regional Transit and General Services Department staff reviewed the RFP and recommend awarding a contract to Weeks Auction Company, Inc.
The contract covers a three (3) year period and provides for two (2) additional one-year extensions. The vendor is required to conduct a monthly or bi-monthly auction at their site.
Fiscal Note
The City expects to generate revenues in excess of $250,000 annually as a result of monthly or bi-monthly auctions. At the $250,000 level the cost to the City would be $20,000 based on the 8% bid rate.
Recommendation
The City Commission: 1) declares all materials, equipment and vehicles stored at the Surplus Lot as surplus property and authorize the sale of such property for the time period covering FY07 & FY08; 2) award the contract for auctioneer services to Weeks Auction Company, Inc. at the commission rate of 8% of gross auction proceeds; and 3) authorize the City Manager or designee to negotiate and execute a three-year contract with two one-year extensions, subject to the approval of the City Attorney as to form and legality.