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Home My WebLink About166-15 RESOLUTIONOF f AY.ETTF. m 4�KA N S:PS 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 166-15 File Number: 2015-0415 GOVDEALS, INC. OF MONTGOMERY, ALABAMA: A RESOLUTION TO AUTHORIZE A CONTRACT WITH GOVDEALS, INC. OF MONTGOMERY, ALABAMA, PURSUANT TO A NATIONAL JOINT POWERS ALLIANCE PURCHASING AGREEMENT, FOR THE PROVISION OF ONLINE AUCTION SERVICES FOR THE SALE OF SURPLUS OR OBSOLETE CITY PROPERTY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorized a contract with GovDeals, Inc. of Montgomery, Alabama, pursuant to a National Joint Powers Alliance purchasing agreement, for the provision of online auction services for the sale of surplus or obsolete City property. PASSED and APPROVED on 9/15/2015 Attest: FAYETTEVILLE o �al0s•.RKANS . ,�,,�� Sondra E. Smith, City Clerk Treasurer Page 1 Printed on 9117115 City of Fayetteville, Arkansas 1 F West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2015-0415 Agenda Date: 9/15/2015 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A. 11 GOVDEALS, INC. OF MONTGOMERY, ALABAMA: A RESOLUTION TO AUTHORIZE A CONTRACT WITH GOVDEALS, INC. OF MONTGOMERY, ALABAMA, PURSUANT TO A NATIONAL JOINT POWERS ALLIANCE PURCHASING AGREEMENT, FOR THE PROVISION OF ONLINE AUCTION SERVICES FOR THE SALE OF SURPLUS OR OBSOLETE CITY PROPERTY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorized a contract with GovDeals, Inc. of Montgomery, Alabama, pursuant to a National Joint Powers Alliance purchasing agreement, for the provision of online auction services for the sale of surplus or obsolete City property. City of Fayetteville, Arkansas Page 1 I Printed on 911812015 Peggv Vice Submitted By City of Fayetteville Staff Review Form 2015-0415 Legistar File ID 9/15/2615 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 8/28/2015 Purchasing / Finance & Internal Services Department Submitted Date Division / Department Action Recommendation: Approval to utilize the NJPA GovDeals, Inc. contract #042911-GDI for Auction Services for Internet Surplus Asset Liquidation. Miscellaneous Account Number N/A Project Number Budgeted Item? Budget Impact: Current Budget Funds Obligated Current Balance Does item have a cost? Item Cost Budget Adjustment Attached? Budget Adjustment Remaining Budget Miscellaneous Fund N/A Project Title 0 V20140710 Previous Ordinance or Resolution # Original Contract Number: Approval Date: Comments: Proceeds are deposited into Loss/Gain sale of assets in the fund that the asset belongs to. CITY COUNCIL AGENDA MEMO To: Mayor and City Council Thru: Paul Becker, Finance & Internal Services Director From: Peggy Vice, Purchasing Manger Date: August 28th 2015 Subj: Online Auction Services Recommendation Staff recommends approval to utilize the NJPA GovDeals, Inc. contract #042911-GDI for Auction Services for Internet Surplus Asset Liquidation Background The City has been under contract with GovDeals Inc. since 2010 to sell surplus equipment and vehicles. The City has realized exceptional payback with GovDeals. For instance: 1. 2011 wrecked Tahoe brought $15,501 or 62% of the original purchase price. 2. 2004 Compost Grinder brought $181,250 or 76% of the original purchase price. 3. Fertilizer Spreader brought $1,510 or 50% of the original purchase price. 4. 2007 Kawasaki Mule brought $5,225 or 53% of the original purchase price. 5. 2013 John Deere Dozer brought $180,200 or 78% of the original purchase price. 6. 1999 New Holland Ford Tractor brought $$26,125 or 56% of the original purchase price. 7. 2002 Ford F-350 brought $19,001 or 64% of the original purchase price. Note: All of the sales mentioned above are from sales in 2015. The current contract with GovDeals is due to expire. GovDeals was selected and contracted under RFP 10-09. Units sold in the last twelve months have been approximately 80 units with gross sales of $822,740.50 with a fee of $67,205.79. The City's current fee is 7.5% with the Buyer paying 5%. This is selling everything from vehicles, heavy equipment, copiers, gym equipment, etc. GovDeals has been in business for fifteen years. They have over 3,000 government clients. They provide training, advertising, collection of proceeds and remitting the proceeds to the City. The only equipment required of the City is a digital camera which most divisions already access to. GovDeals notifies the City when payment has been made by the Buyer and the Buyer makes arrangements with the City to pick up their item within ten days. GovDeals remits the proceeds to the City weekly and GovDeals has a $5,000,000 crime policy to protect the City from loss of proceeds. Discussion The NJPA contract allows the City to set its fee structure. Based on the City's experience with GovDeals, staff recommends changing the fee structure where the Buyer would pay the entire 12.5% fee. We don't feel the fee change will dissuade buyers from bidding on the City's surplus equipment and vehicles but after a month's trial period the fee could be adjusted if needed. Piggy Backing from the NJPA contract will save considerable staff time and money without having to go out with another request for proposal when it has already been completed through NJPA. Proposal Offering And Acceptance and Award RFP #442911 ORM D SURPLUS ASSET LIQUIDATION AND/OR AUCTION SERVICES WITH RELATED SOLUTIONS Proposal Offering (To be Completed Only by Proposer) In compliance with the Request for proposal (RFP) for SURPLUS ASSET LIQUIDATION AND/OR AUCTION SERVICES WITH RELATED SOLUTIONS, the undersigned warrants that I/we have examined the RFP and, being familiar with all the instructions, terms and conditions, general specifications, expectations, technical specifications, service expectations and any special terms, do hereby offer and agree to furnish the defined services/products in compliance with all terms, conditions of the RFP, any applicable amendments of RFP, and all Proposer's response documentation. Proposer further understands they arc the sole offeror herein and that the performance of any sub -contractors employed by the Proposer in fulfillment of this offer is thesole responsibility of the Proposer. Company Name: tpY f(y �,,t1 Ln Date: APR 1 L a� Gl o� o Company Address: 7 f1 7 l.aYTh[CLs Contact Authorized Signature (ink _ (Name printed or typed) Contract Acceptance and Award (To be completed only by NJPA) State: A}{- Zip: 3(p, f j % rntle: Cdi L. Cep Your proposal offering is hereby accepted and awarded. As the awarded Proposer, you are now bound to provide the defined goods and. services contained in your proposal offering according to all terms, conditions, and pricing set forth in the RFP, any amendments to the RFP, and the Proposer's Response. The effective date of this Contract shall be �iLir '. 2 ( 2 iJ and continue for four years AND which is subject to annual renewal at the option of both parties. National Joint Powers Alliance® (NJPA) NJPA Authorized signature: L,AA 1'n Lysce� (Name printed or typed) Title: ,L cfl.0 t.ru I.)f>ztrr.In Awarded this Z 1► NJPA Title: dayof_JI&VW1 1011 Executed this _ 2-l.-.- day of__________________ _y..► t~ Contract Number # 042911.. 6 (Name printed or typed) Contract Number # 04291144D<11 Page 37 of 42 GovDeals Flexible Pricing Options (FPO) The Client has the option to choose from the following alternative plans: B - Client Elects GovDeals Financial Settlement Services (FSS) allowing GovDeals to Collect Proceeds. Only one option below can be used and once this option is chosen, it cannot be changed for twelve (12) months. Option Bl: The Client pays a 7.5% fee, but not less than $5.00, and the winning bidder pays a 5% Buyers Premium. * Option B2: The Client pays a 5% fee, but not less than $5.00, and the winning bidder pays a 7.5% Buyers Premium. Option B3: The Client pays a 2.5% fee, but not less than $5.00, and the winning bidder pays a 10% Buyers Premium. Option B4: The Client pays a 0% fee and the winning bidder pays a 12.50% Buyers Premium. *If the Client chooses to pay the full 7.5% fee (Option B1), they will have access to the Tiered Fee Reduction Schedule. Tiered Fee Reduction Schedule (Only applies to Option B1) GovDeals' Tiered Fee Reduction Schedule below explains how the base auction fee of 7.5% is reduced for assets that sell in excess of $100,000 on www.govdeals.com. 1. When an asset sells for up to $100,000 in a winning bid, the GovDeals fee is seven and one-half percent (7.5%) of the winning bid, but not less than $5.00. 2. Where an asset sells for more than $100,000, but less than $500,000 the GovDeals fee is seven and one- half percent (7.5%) of the winning bid up to $100,000, plus five and one-half percent (5.5%) of the winning bid for auction proceeds in excess of $100,000 up to $500,000. 3. Where an asset sells for greater than $500,000 the GovDeals fee is seven and one-half percent (7.5%) of the first $100,000 of the winning bid, plus a fee of five and one-half percent (5.5%) of the next $400,000 of the winning bid, plus a fee of three and one-half percent (3.5%) of the bid amount in excess of $500,000. 4. Where an asset sells for greater than $1,000,000 the GovDeals fee is seven and one-half percent (7.5%) of the first $100,000 of the winning bid, plus a fee of five and one-half percent (5.5%) of the next $400,000 of the winning bid, plus a fee of three and one-half percent (3.5%) of the next $500,000 of the winning bid, plus a fee of two and one-half percent (2.5%) of the bid amount in excess of $1,000,000. GovDeals, Inc Revision 05.19.2014 Please choose one fee option your government would like to use from the Pricing Schedule. Option B: Client elects for GovDeals to collect all proceeds foam the buyer: �j (—i Option B 1 0 Option B2 0 Option B3 Option B4 Client Name: Contact Name: LoY rcIR,I Phone. Number: LL\14') 3& Email: IV ( f ' jDV GovDeals, Inc Revision 05.19.2014 2