Title
Award Contract for Auction Services of Surplus Goods to Weeks Auction Company, LLC. (B)
Staff recommends establishing a contract with Weeks Auction Company for auction services of surplus goods to dispose of surplus property as needed.
Explanation
Yearly there are approximately 250 surplus vehicles and equipment stored at the Fleet Garage located at 6317 NW 16th St. These surplus items consist of construction and yard equipment, vehicles and miscellaneous items. The City has reduced storage costs and increased revenues by using an auctioneer service monthly, bi-monthly or quarterly to dispose of surplus property items. All surplus property items are transported to the auctioneer’s site in Ocala or other City approved locations. This process has increased the cash flow as well as reducing storage and personnel costs.
On March 16, 2018, the General Government Purchasing Division solicited Invitation to Bid (ITB) for auction services of surplus goods. Purchasing received two responses and staff recommends awarding a contract to Weeks Auction Company, LLC the lowest, responsive and responsible bidder.
The contract covers a three (3) year period and provides for two (2) additional one-year extensions. The vendor is required to conduct monthly, bi-monthly or quarterly auctions at their site or other City approved locations.
Fiscal Note
The City expects to generate revenues in excess of $250,000 annually as a result of monthly, bi-monthly or quarterly auctions. At the $250,000 level, the cost to the City would be $12,500 based on the 5% bid rate.
Recommendation
The City Commission: 1) award the contract for auction services of surplus goods to Weeks Auction Company, LLC. at the commission rate of 5% of gross auction proceeds: and 2) authorize the City Manager or his 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.