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HomeMy WebLinkAboutResolution - 2012-R0060 - Contract - The Public Group - On Line Auction Services - 02/09/2012Resolution. No. 2012--80060 February 9, 2012 Item No. 5.3 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock, Contract No. 9908-1 for on line auction services, by and between the City of Lubbock and The Public Group, LLC of Provo, Utah, and related documents. Said Contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on February 9, 2012 TOM MARTIN, MAYOR ATTEST: Reb ,caGarza, City Secretary APPROVED AS TO CONTENT: Andy hurcham, Chief Financial Officer APPROVED AS TO FORM: ad Weaver, Assistant City Attorney vwxcdocs/RES.Contract-Public Group, LLC November 11, 2011 Resolution No. 2012-ROO60 CONTRACT 9908-1 City of Lubbock, TX SERVICE AGREEMENT On -Line Auction Services RFI' 11 -9908 -MA This Service Agreement (this "Agreement") is entered into as of the 9th of February 2012, ("Effective Date") by and between The Public Group (the Contractor), and the City of Lubbock (the "City"). RECITALS WHEREAS, the City has issued a Request for Proposals 11 -9908 -MA, On -Line Auction Services WHEREAS, the proposal submitted by the Contractor has been selected as the proposal which best meets the needs of the City for this service; and WHEREAS, Contractor desires to perform as an independent contractor to provide On -Line Auction Services upon terms and conditions maintained in this Agreement; and NOW THEREFORE, for and in consideration of the mutual promises contained herein, the City and Contractor agree as follows: City and Contractor acknowledge the Agreement consists of the following exhibits which are attached hereto and incorporated herein by reference, listed in their order of priority in the event of inconsistent or contradictory provisions: 1. This Agreement 2, Exhibit A — General Requirements 3. Exhibit B — Price Sheet 4. Exhibit C — Insurance S. Exhibit D — Proposal Scope of Work Contractor shall provide the services that are specified in Exhibit A. The Contractor shall comply with all the applicable requirements set forth in Exhibit B, C, and D attached hereto. Article 1 Services 1.1 Contractor agrees to perform services for the City that are specified under the General Requirements set forth in Exhibit A. The City agrees to pay for the amounts stated in Exhibit B, to Contractor for performing services. 1.2 Contractor shall use its commercially reasonable efforts to render Services under this Agreement in a professional and business -like manner and in accordance with the standards and practices recognized in the industry. Nonappropriation clause. All funds for payment by the City under this Agreement are subject to the availability of an annual appropriation for this purpose by the City. In the event of nonappropriation of funds by the City Council of the City of Lubbock for the goods or services provided under the Agreement, the City will terminate the Agreement, without termination charge or other liability, on the last day of the then -current fiscal year QTurchase/Bid Documents/11-9908-MA Contract covered by this Agreement is spent, whichever event occurs first. If at any time funds are not appropriated for the continuance of this Agreement, cancellation shall be accepted by the contractor on thirty (30) days prior written notice, but failure to give such notice shall be of no effect and the City shall not be obligated under this Agreement beyond the date of termination. Article 2 Miscellaneous: 2.1 This Agreement is made in the State of Texas and shall for all purposes be construed in accordance with the laws of said State, without reference to choice of law provisions. 2.2 This Agreement is performable in, and venue of any action related or pertaining to this Agreement shall lie in, Lubbock, Texas. 2.3 This Agreement and its Exhibits contains the entire agreement between the City and Contractor and supersedes any and all previous agreements, written or oral, between the parties relating to the subject matter hereof. No amendment or modification of the terms of this Agreement shall be binding upon the parties unless reduced to writing and signed by both parties. 2.4 This Agreement may be executed in counterparts, each of which shall be deemed an original. 2.5 In the event any provision of this Agreement is held illegal or invalid, the remaining provisions of this Agreement shall not be affected thereby. 2.6 The waiver of a breach of any provision of this Agreement by any parties or the failure of any parties otherwise to insist upon strict performance of any provision hereof shall not constitute a waiver of any subsequent breach or of any subsequent failure to perform. 2.7 This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, representatives and successors and may be assigned by Contractor or the City to any successor only on the written approval of the other party. 2.8 All claims, disputes, and other matters in question between the Parties arising out of or relating to this Agreement or the breach thereof, shall be formally discussed and negotiated between the Parties for resolution. In the event that the Parties are unable to resolve the claims, disputes, or other matters in question within thirty (30) days of written notification from the aggrieved Party to the other Party, the aggrieved Party shall be free to pursue all remedies available at law or in equity. 2.9 At any time during the term of the contract, or thereafter, the City, or a duly authorized audit representative of the City or the State of Texas, at its expense and at reasonable times, reserves the right to audit Contractor's records and books relevant to all services provided to the City under this Contract. In the event such an audit by the City reveals any errors or overpayments by the City, Contractor shall refund the City the full amount of such overpayments within thirty (30) days of such audit findings, or the City, at its option, reserves the right to deduct such amounts owing the City from any payments due Contractor. Q:Purchase/Bid Documents/1 1 -9908 -MA Contract IN WITNESS WHEREOF, this Agreement is executed as of the Effective Date. CITY OF LUBBOCK, TX Tom Martin, Mayor ATTEST Rebe a Garza, City Secretary APPROVED AS TO CONTENT: wm!la-� Andy B rcham, Chief Financial Officer APP V A TO FORM: Chad Weaver, Assistant City Attorney Q:PurchaseBid Documents/] 1 -9908 -MA Contract CONTRACTOR ignature Vice - President City of Lubbock, Texas On -Line Auction Services RFP 11 -9908 -MA I. GENERAL REQUIREMENTS 1. INTENT Resolution No. 2012—R0060 EXHIBIT A a) The City of Lubbock (hereinafter called "City") is seeking proposals from interested firms and individuals, (hereinafter called "Offeror") for Online Auctioneer Services. b) Offerors are invited to submit demonstrated competence and qualifications of their firm for providing these services. c) The information contained within this document is intended to provide interested firms with the requirements and criteria that will be used to make the selection. 2. PROJECT DESCRIPTION a) The City desires to contract with a licensed and experienced individuals or firms to provide online auctions for the disposition of obsolete equipment and/or materials, light duty vehicles and trucks. Past auction sales have included such items as vehicles, trucks, furniture, maintenance and heavy equipment and obsolete supplies and abandoned police seized property. The City also desires to contract with a licensed and experienced auctioneer to auction heavy duty vehicles, equipment and trucks. Services will be utilized on an as -needed basis. Equipment and materials will be offered in "as -is" condition. b) Offerors are invited to submit demonstrated competence and qualifications of their firm for providing these services. c) The information contained within this document is intended to provide interested firms with the requirements and criteria that will be used to make the selection. 3. SCOPE OF SERVICES a) This specification includes the furnishing of all labor, materials, software, equipment, location, auctioneer to performance of all operations required to furnish auction services. The intent of the specifications is to describe, services for best performance. b) Contracts shall be utilized on an as needed, if needed, basis and the City reserves the right to dispose of items by any method it deems necessary in accordance with applicable Local, State and Federal laws. c) The City also reserves the right to add additional vehicle types or other items to future auctions. d) The City also reserves the right to establish minimum bid, accept or reject any and all bids, and withdraw the property at any time prior to the announcement of the completion of the sale by the auctioneer. e) As a minimum, The City of Lubbock auctions will have the following Terms and Conditions posted on all auctions. Q.PurchaselBid Documents/11-9908-MA Contract 4. ONLINE AUCTIONEER SERVICES a) All materials, equipment and/or vehicles sold must be removed by appointment only within THIRITY calendar days after the date and time of the items being auctioned, Monday through Friday, from 9:00 AM to 3:00 PM. After the 10's calendar day, a $25 per day, per item storage fee will be charged to the buyer. b) The City DOES NOT provide transportation or loading services for buyers to remove their merchandise. Any and all methods of lifting, towing, and hauling, as well as all other methods or requirements for the removal and transport of the materials, equipment and/or vehicles, is the sole responsibility or the buyer. c) TAXES — All sales are subject to local sales tax laws. All sales are taxable unless buyer presents a valid sales tax exemption certificate prior to the scheduled auction or at the time of final payment. Any chartered nonprofit religious, charitable, scientific or educational institution, governmental agency or other nonprofit organization must provide a copy of their certificate of exemption, for the City's records, to be exempt from paying taxes. False numbers will be reported to the Comptroller of the State of Texas. d) DESPITE EFFORTS TO AVOID WITHDRAWAL OF ITEMS FROM THE SALE LIST AFTER THEY ARE ADVERTISED, IT MAY SOMETIMES BE NECESSARY FOR THE CITY OF LUBBOCK, TEXAS TO "PULL" OR REMOVE ITEMS FROM THE AUCTION. THE CITY OF LUBBOCK, TEXAS RESERVES THE RIGHT TO REMOVE ALL OR ANY PIECE OF EQUIPMENT FROM ANY SALE WHETHER LISTED ON THE ONLHNE AUCTION SITE, ADVERTISED IN OR ON ANY MEDIA [NEWSPAPERS, MAGAZINES, TELEVISION, INTERNET, ETC.] OR PICTURED IN A BROCHURE. e) Auction Firm will be responsible for including appropriate disclosures regarding each item; such as "AS IS, WHERE IS" and mileage not guaranteed or other statements. f) Proposed auctions must support a minimum of two photos of each vehicle, or item. g) Auctions are to be held in "real time," without delays. 5. DUTIES/BEHAVIOR a) The Auctioneer will be aware of not only the duties to be performed as outlined in this RFP, but that the firm, in effect, will be acting as a representative for the City of Lubbock. The Auctioneer will maintain a sprit of goodwill, diplomacy and tact. b) The City of Lubbock will be contracting for auctioneering services to be carried out by an auctioneer licensed by the State of Texas. Auctioneer must follow all State of Texas codes, laws and rules. 6. TEST SALES The City MAY, at its own discretion, post auction items with any of the Offerors as a test of their system, customer service, case of interaction between the Offeror and the City staff, marketing abilities, numbers of bidders and amounts of funds received. Information collected about the afore mentioned items, as well as sales amounts, both net and gross, will be compared to the five years of experience and historical data that the City has collected. This may be done prior to award of the contract and may be part of the evaluation/award process. 7. SOFTWARE The City of Lubbock does NOT intend to purchase auctioneering software at this time. 8. REFUNDS OF SALE(S) All merchandise is "AS IS WHERE IS." Under normal circumstances the City of Lubbock will not issue refunds. All transactions are between the bidder and the Auctioneer and will not involve the City of Lubbock or the City of Lubbock's Auction Coordinator. Q:Purchase/Bid DocumentsA 1 -4908 -MA Contract 9. COLLECTIONS Offeror shall perform collections services for the City of Lubbock. Proposal shall include all methods of payment currently accepted by the auctioneering company. Offeror shall have responsibility for handling item disputes involving payments, etc. 10. SUBCONTRACTORS a) Offeror must list any subcontractor to be utilized in performance of services herein. For each subcontractor, detail on respective qualifications must be included. b) Offeror shall remain liable for obligations performed by subcontractors to the same extent as if a Offeror's employee had performed such obligations, and for purposes of this agreement such work shall be deemed work performed by Offeror. c) Offeror will provide copies of agreements with all subcontractors within ten (10) days of any request for said agreements by City. 11. TERM OF CONTRACT a) The period of this contract shall be for one year contingent upon City Council approval. This contract may be renewed at the expiration of its term by agreement of both parties. Such renewal may be for (4) four additional one-year periods, if agreeable to all parties for a total contract length of five years. b) Notice of Intent to renew will be given to the Offeror in writing by the City Director of Purchasing and Contract Management, normally 30 days before the expiration date of the current contract. (This notice will not be deemed to commit the City to a contract renewal.) c) This contract shall remain in effect until the expiration date, performance of services ordered, or termination of either party with a thirty (30) day written notice by either party prior to any cancellation. Such written notice must state the reason for cancellation. 12. PAYMENTIFEES Public Surplus will collect all payments from the buyers on The City's listings. Public Surplus will charge the buyers 10% on sold items listed and will deduct the fee from the proceeds collected. Public Surplus will pay The City net proceeds within 30 days after payment has been received and cleared from the buyer Public Surplus will provide The City with free bid deposits for all listings that exceed $500.00. QTurchasefBid Documents/1 i -9908 -MA Contract City of Lubbock RFP 11 -9908 -MA Auctioneer Services Auctioneer Services City of Lubbock, Texas RFP 11 -9908 -MA Auctioneering Services Fee Schedule Resolution No. 2012—R0060 EXHIBIT B Commission Fee Schedule -- The OlTeror shall attach its commission fee schedule that details the percentage commission fee that will be charged after each completed sale on the sale ,price. 10% Buyer's Premium Auctioneer or Contractor Name: The Public Group LLC Signature of Authorized Auclioneer or Contractor Official: 3 2of3 Resolution No. 2012—R0060 EXHIBIT C INSURANCE SECTION A. Prior to the approval of this contract by the City, the Contractor shall furnish a completed Insurance Certificate to the City, which shall be completed by an agent authorized to bind the named underwriter(s) to the coverages, limits, and termination provisions shown thereon, and which shall furnish and contain all required information referenced or indicated thereon. THE CITY SHALL HAVE NO DUTY TO PAY OR PERFORM UNDER THIS CONTRACT UNTIL SUCH CERTIFICATE SHALL HAVE BEEN DELIVERED TO THE CITY. INSURANCE COVERAGE REQUIRED ,SECTION B. The City reserves the right to review the insurance requirements of this section during the effective period of the contract and to require adjustment of insurance coverages and their limits when deemed necessary and prudent by the City based upon changes in statutory law, court decisions, or the claims history of the industry as well as the Contractor. SECTION C. Subject to the Contractor's right to maintain reasonable deductibles in such amounts as are approved by the City, the Contractor shall obtain and maintain in full force and effect for the duration of this contract, and any extension hereof, at Contractor's sole expense, insurance coverage written by companies approved by the State of Texas and acceptable to the City, in the following type(s) and amount(s): Tyne Amount Commercial General Liability per Occurrence Combined single limit for bodily Endorsements injury and property damage of - General Aggregate $300,000 per occurrence or its - Products/Op AGG equivalent. - Personal & Adv. Injury - Contractual Liability ADDITIONAL POLICY ENDORSEMENTS The City shall be entitled, upon request, and without expense, to receive copies of the policies and all endorsements thereto and may make any reasonable request for deletion, revision, or modification of particular policy terms, conditions, limitations, or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any of such policies). Upon such request by the City, the Contractor shall exercise reasonable efforts to accomplish such changes in policy coverages, and shall pay the cost thereof. REQUIRED PROVISIONS The Contractor agrees that with respect to the above required insurance, all insurance contracts and certificate(s) of insurance will contain and state, in writing, on the certificate or its attachment, the following required provisions: a. Name the City of Lubbock and its officers, employees, and elected representatives as additional insureds, (as the interest of each insured may appear) as to all applicable coverage; b. Provide for 30 days notice to the City for cancellation, nonrenewal, or material change; c. Provide for notice to the City at the address shown below by registered mail; d. Provide that all provisions of this contract concerning liability, duty, and standard of care together with the indemnification provision, shall be underwritten by contractual liability coverage sufficient to include such obligations within applicable policies. c. All copies of the Certificates of insurance shall reference the project name or proposal number for which the insurance is being supplied. Q:Purchase/Bid Documents/l1-9408-MA Contract NOTICES The Contractor shall notify the City in the event of any change in coverage and shall give such notices not Less than 30 days prior the change, which notice must be accompanied by a replacement CERTIFICATE OF INSURANCE. All notices shall be given to the City at the following address: Marta Alvarez, Director of Purchasing & Contract Management City of Lubbock 1625 13`h Street, Room 204 Lubbock, Texas 79401 SECTION D. Approval, disapproval, or failure to act by the City regarding any insurance supplied by the Contractor shall not relieve the Contractor of full responsibility or liability for damages and accidents as set forth in the contract documents. Neither shall the bankruptcy, insolvency, or denial of liability by the insurance company exonerate the Contractor from liability. Q:Purchasel8id Documents/1 1 -9908 -MA Contract C C C Resolution No. 2012-R0060 "1e Pu blic I Group Cost Proposal City of Lubbock RFP 11 -9908 -MA Auctioneer Services April 26, 2011 Eric Heaps Chief Operating Officer Post Office Box 50676 Provo, Utah, 84605 (800) 591-5546 x151 erich@thepublicgroup.com C City of Lubbock April 20, 2011 RFP 11 -9908 -MA Auctioneer Services Discuss and itemize, all fees (percentages, buyer premiums, etc.) and any, and ALL, costs related to the program (including collections, training, implementation, postage, advertising, etc.) that will be charged to or withheld from the seller (City) and/or buyer, other agencies and vendors and how the fees will be collected. RESPONSE: The Public Group's standard fees are based solely on sold assets. There are no advertising fees, marketing fees, set-up fees, training fees, or upgrade fees. Sales Commission on Sold Assets Buyer's Premium Charged to Buyers 10% Commission Charged to the City of Lubbock 0% Under this pricing strategy, the City of Lubbock will incur NO COST to utilize Public Surplus. Collection of Fees TPG will collect payment on behalf of the City of Lubbock, and will retain the 10% buyer's premium collected as compensation. The auction proceeds will then be remitted to the City of Lubbock. Price Match Guarantee TPG's online model is especially designed to maximize sales for government agencies while reducing operating costs for both the agency and TPG. Our agency clients benefit immediately by receiving what we believe to be the most aggressive pricing in the market. To reinforce our belief that our model and savings for government agencies is the best available, we offer a Price Match Guarantee: We will NOT be beat on price for similar services. In short, if the City finds similar services at a lower cost than the TPG quote, we will not only MATCH the lower price, we will beat it by .125%. C. City of Lubbock RFP 11 -9908 -MA Auctioneer Services Value Added Services April 20, 2011 The Public Group is a software development company that provides government access to various online solutions. The following is a brief summary describing TPG's other services. e -Procurement Services: Public Purchase This web -based application enables public agencies to post, manage and award solicitations including RFPs, RFQ's, RFI's, Reverse Auctions, Quick Quotes, Line Item Quotes and agency - defined solicitations. Services include bid notification, line item upload, automatic bid tabulation, award publishing, document and form libraries, plan holders lists, contractors lists and bid bonds, to name a few. Public Vendor This web -based application enables public agencies to manage information and tasks related to their vendors. Services include vendor self -registration, robust search capabilities, task management, internal notes, and document and form management, to name a few. This service is integrated with Public Purchase. Both Public Purchase and Public Vendor are provided free of charge. For more information visit httg://www.publicpurchase.co_m and contact us to schedule a 30 -minute online demonstration. Contract Management Service: Public Contract This web -based application enables public agencies to electronically manage information and tasks related to contracts. Services include expenditure tracking, automated task notification, automatic renewal or re -bid notification, internal notes, public access links, and document and form management, to name a few. For more information about Public Contract and pricing, visit htto://www.publiccontract.com and contact us to schedule a 30 -minute online demonstration. I' r 3of3 Resolution No. 2012-80060 ''1e public I Group: Attachments �r City of Lubbock RFP #11-1 0172 -DW Professional Auctioneering Services of Surplus Property Eric Heaps Chief Operating Officer Post Office Box 50676 Provo, Utah, 84605 (800) 591-5546 x151 April 26, 2011 City of Lubbock RFP 11 -9908 -MA Auctioneer Services Table of Contents Attachment 1 - Marketing Samples C c April 26, 2011 C City of Lubbock RFP 11 -9908 -MA Auctioneer Services Attachment 1 - Marketing Samples Attachment 1 - Marketing Samples 1 of 3 Aprit 26, 2011 ra. City of Lubbock RFP 11 -994$ -MA Auctioneer Services April 26, 2011 TPG coordinates with agency clients to create and release informational press releases. Below is an example. }:ll(Surplus, prciml'�171... r.�urr1�br h ie. d nAr wrnr rrcrn,r.• sn�rr. lira ale •.rr h PRESS RELEASE October lb, 2004 HOUSTON, TEXAS — The City of Houston's Asset Disposition Warehouse officials have saved taxpayers over $168,000 by selling used Aircraft Rescue Fire Fighting (ARFF) trucks on the Internet at www, ftuhiic.stimius, .elle. The City chose Public Surplus as the online provider for the City's auction because of the past success that the City has had with listings on Public Surplus. "Our experience with Public Surplus has been very successfid over the years, but these auction results on rhe ARFF equipment have exceeded all ql' our expectations" says Scott Erdo, the City's Manager of Asset Disposition, The City created a brief video demonstration of the ARFF equipment, and Public Surplus posted the videos to Youtube.com and embedded the videos in the respective auction listings. Bert Buri. President of Public Surplus states: "The embedded videos along with Public Surplus' large national buyer base and direct marketing !ry our Buyer Contact Department, have once again delivered exceptional rates of return to our clients." Carman Vanmeter, the Asset Disposition Representative in charge of the sale from start to finish looks forward to selling more of the City's heavy equipment and specialty vehicles online. "I love working ivith our customers and providing them with fi st class cusinmer service from answering their questions to coordinating the delivery. " Houston has seen the sales price of used city vehicles increase by over 223% since they began selling surplus vehicles on line. "We are able to achieve such outstanding results on these auctions due to the combined efforts of the City and Public Surplus. The ongoing partnership and collaborative marketing strategies enabled us to exceed sales projections even in this tough econom}?' said Alfred Moran, Director of Administration and Regulatory Affairs. Public Surplus, an online product of The Public Group is headquartered in Provo, Utah. it is one of the top 'surplus' search results on www.google.com. Public Surplus is currently used by several hundred government agencies across the nation including, the Cities of Tucson, Chicago, Houston, the Chicago Transit Authority, Houston Metropolitan Transit Authority, and the States of California, Indiana, Iowa. Louisiana, Montana and Washington. I i di GI'oltp, www.publicsamiu, coo ll 3 :d; G o ip Attachment 1 - Marketing Samples 2of3 Online Government Surplus Auctions Public Surplus.,,,,, www.publicsurplus.cam buyersupport@publicsurpius.com 801.932.7000 W V 1P ?Y 1 Heavy Equipment and Vehicles listed daily from THOUSANDS of GOVERNMENT AGENCIES across the nation such as, Public Works Commission of Fayetteville, Fairfax County, City of Little Rock, City of Garland, City of Duncanville, State of Washington Surplus, City of Redding, City of Tucson and City of Chicago just to name a few.