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HomeMy WebLinkAboutResolution - 6076 - Contract - Lone Star Auctioneers Inc - Auctioneer Services - 10/22/1998Resolution No. 6076 Item No. 34 October 22, 1998 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a contract for Auctioneer Services by and between the City of Lubbock and Lone Star Auctioneers, Inc., of Fort Worth, Texas and all 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 Council. Passed by the City Council this 22nd day of October , 1998. WINDY S TT N, MAYOR ATTEST: 4"Ok Kaytliaparnell, City Secretary APPROVED AS TO CONTENT: &tiq Victor Kilmab, Purchasing Manager APPROVED AS TO FORM: William de Haas Competition and Contracts Manager/Attorney WdAk/Auctioneer Services.RES ccdocs/October 12, 1998 STATE OF TEXAS Resolution No. 6076 Item No. 34 October 22, 1998 COUNTY OF LUBBOCK § AUCTIONEER SERVICE CONTRACT This contract, (the "Contract"), effective as of November 1, 1998, (the "Effective Date"), is by and between the City of Lubbock, (the "City"), a municipal corporation, and Lone Star Auctioneers, Inc., (the "Contractor"). WITNESSETH WHEREAS, the City requires a contractor to provide auctioneer services for the City of Lubbock on an "as needed" basis; and WHEREAS, the Contractor is a qualified full-service auction firm; and WHEREAS, the City desires to contract with Contractor to furnish auctioneer services; and NOW THEREFORE, for and in consideration of the terms, covenants and conditions set forth in this Contract, the City and the Contractor hereby agree as follows: ARTICLE I TERM The term of this Contract commences on the Effective Date and continues without interruption for a term of eleven (11) months from and after the Effective Date. Upon mutual agreement between the City and the Contractor, the Contract may be extended annually for up to four (4) additional one (1) year terms beginning October 1, 1999, under the same terms and conditions otherwise herein stated. ARTICLE II COMPENSATION Contractor shall be paid in accordance with Exhibit A, attached hereto. ARTICLE III TERMINATION A. General. City may terminate this Contract, for any reason, upon thirty (30) days notice to Contractor in accordance with Article XII Auctioneer Service Contract, City of Lubbock & Lone Star Auctioneers, Inc. Page 1 of 9 of this Contract. B. Termination and Remedies. In the event the Contractor breaches any term and/or provision of this Contract the City shall be entitled to exercise any right or remedy available to it at law or equity, including without limitation, immediate termination of this Contract and assertion of action for damages and/or injunctive relief. The exercise of any right or remedy shall not preclude the concurrent or subsequent exercise of any other right or remedy and all other rights and remedies shall be cumulative. ARTICLE IV REPRESENTATIONS AND WARRANTIES A. Existence. Contractor is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas and is qualified to cavy on its business in the State of Texas. B. Corporate Power. Contractor has the corporate power to enter into and perform this Contract and all other activities contemplated hereby. C. Authorization. Execution, delivery, and performance of this Contract and the activities contemplated hereby have been duly and validly authorized by all the requisite corporate action on the part of the Contractor. This Contract constitutes legal, valid, and binding obligations of the Contractor and is enforceable in accordance with the terms thereof. D. Contractor. Contractor maintains a professional staff and employs, as needed, other qualified specialists experienced in auction services, and are familiar with all laws, rules, and regulations, both state and federal, including, without limitation the applicable laws, regarding the activities contemplated hereby. E. Performance. Contractor will and shall conduct all activities contemplated by this Contract in a good and workmanlike manner and comply with all laws, rules, and regulations, both state and federal, relating to auction services, as contemplated hereby. If any of the activities of the Contractor, or omissions of the activities required herein, shall cause, in whole or in part, liability or loss on the party of the City, it shall be deemed that the Contractor did not perform said activities (or omitted the performance of said activities) in a good and workmanlike manner. ARTICLE V SCOPE OF WORK Auctioneer Service Contract, City of Lubbock & Lone Star Auctioneers, Inc. Page 2 of 9 A. General. Contractor shall provide full-service auction services at public auctions for the City of Lubbock. B. Locations. Auctions will be conducted at a location designated by the City. C. Time. The time and date of auctions shall be mutually agreed upon by both parties. D. Any or all abandoned, stolen or recovered property, including motor vehicles, held in custody by the City of Lubbock Police Department and either unclaimed or not reclaimed for a period of sixty (60) or more days, and also any or all property or real property determined by the City's Purchasing Manager to be surplus property of the City, will be sold to the highest bidder. E. Buyers Guides supplied by the Contractor shall be placed on each vehicle as required by Federal Law. TNRCC required statements supplied by the Contractor shall be placed on each vehicle. F. Neither the Auction Company nor its employees may bid directly or indirectly on any item sold at the City's auction. G. The Contractor shall provide, at their own expense, sufficient staff to register bidders and qualify their methods of payment, to provide cashiers to take the money from bidders and reconcile funds at the conclusion of the auction, and advertising and marketing of the City's auctions. H. Response Item 4, Advertising and Marketing Program, Sections 2 and 3 (pages 5 through 10) of the Contractor's proposal, dated August 6, 1998, for RFP #98005, is incorporated by reference and made a part of this Contract. I. Response Item 5, Operating Procedures and Reports, of Contractor's proposal, dated August 6, 1998, for RFP #98005, is incorporated by reference and made a part of this Contract. ARTICLE VI INSURANCE A. General. Contractor shall procure and cant', at its sole cost and expense through the life of this Contract insurance protection hereinafter specified, in form and substance satisfactory to the City. City must approve all policies prior to the commencement of any activities whether performed by the Contractor, subcontractor, agents, or third parties. The insurance carrier must be an insurance company authorized to transact business in the State of Texas and have a Best's Financial rating of A:VII or better. A Certificate of Insurance specifying each and all coverage shall be submitted to City prior to the execution of this Contract. All Auctioneer Service Contract, City of Lubbock & Lone Star Auctioneers, Inc. Page 3 of 9 insurance shall be prepared and executed by the insurance company or it's authorized agents and shall contain an endorsement naming the City of Lubbock an additional insured. Written notice of cancellation or any material change will be provided ten (10) days in advance of cancellation or change. All insurance, other than Workers' Compensation, shall provide a waiver of subrogation for general liability to the extent the City of Lubbock is named as an additional insured and indemnified pursuant to this Agreement, and shall contain cross liability and severability coverage. B. Required Coverage. Contractor shall obtain and maintain policies of insurance throughout the Contract term in limits specified below. 1. Workers' Compensation. The Contractor shall maintain Workers' Compensation and Employer's Liability insurance coverage as required by statute or coverage approved by the City Risk Management Coordinator. 2. Commercial General Liability. The Contractor shall maintain Commercial General Liability coverage endorsed to include premises/operations, contractual liability, independent contractors' and completed operations. The policy shall have a minimum of Two Hundred Fifty Thousand and no/100 Dollars ($250,000) combined single limit in the aggregate and per occurrence. 3. Commercial Automobile Liability. The Contractor shall maintain Commercial Automobile Liability coverage with a minimum of One Hundred Thousand and no/100 Dollars ($100,000) combined single for Bodily Injury and Property Damage and shall include any auto or in the alternative, owned autos, non -owned autos and hired autos. C. Subcontractors. The Contractor shall require each subcontractor with whom it contracts to provide activities as contemplated by this Contract, to obtain proof of insurance coverage as set forth herein, and to provide to Contractor, prior to such person performing any such activities, a Certificate of Insurance establishing such coverage. ARTICLE VII INDEMNITY Contractor shall indemnify, defend, keep and save harmless the City, its agents, officials and employees, against all injuries, deaths, loss, damages, claims, patent claims, suits, liabilities, judgments, costs and expenses, which may in anywise arise or accrue against the City in consequence of the granting of this Contract or which may anywise result therefrom, whether or not it shall be alleged or determined that Auctioneer Service Contract, City of Lubbock & Lone Star Auctioneers, Inc. Page 4 of 9 the act was caused through negligence or omission of the Contractor or its employees, or of the subcontractor or assignee or its employees, if any, and the Contractor shall, at his own expense, appear, defend and pay all charges of attorneys and all costs and other expenses arising therefrom or incurred In connection therewith, and, if any judgment shall be rendered against the City in any such action, the Contractor shall, at its own expenses, satisfy discharge the same. Contractor expressly understands and agrees that any bond required by this Contract, or otherwise provided by Contractor, shall in no way limit the responsibility to indemnify, keep and save harmless and defend the City as herein provided. ARTICLE VIII INDEPENDENT CONTRACTOR STATUS Contractor and City agree that Contractor shall perform the duties under this Contract as an independent contractor. The Contractor has the sole discretion to determine the manner in which the services are to be performed. ARTICLE IX EMPLOYMENT OF AGENTS Contractor may employ or retain agents, consultants, contractors, or third parties, to perform certain duties of Contractor, under this Contract provided that Contractor is In no event relieved of any obligation under this Contract. Any such agents, contractors, or third parties retained and/or employed by Contractor shall be required to carry, for the protection and benefit of the City and Contractor and naming said third parties as additional insured, insurance as described in Article VI Insurance of this Contract. ARTICLE X COMPLIANCE WITH APPLICABLE LAWS Contractor shall comply with all applicable federal, state and local laws, statutes, ordinances, rules and regulations relating, in any way, manner or form, to the activities under this Contract, and any amendments thereto. ARTICLE XI CONFIDENTIALITY Contractor shall retain all information received from or concerning the City and the City's business in strictest confidence and shall not reveal such information to third parties without prior written consent of the City, unless otherwise required by law. Auctioneer Service Contract, City of Lubbock & Lone Star Auctioneers, Inc. Page 5 of 9 ARTICLE XII NOTICE A. General. Whenever notice from Contractor to City or City to Contractor is required or permitted by this Contract and no other method of notice is provided, such notice shall be given by (1) actual delivery of the written notice to the other party by hand, (2) facsimile, or other reasonable means (in which case such notice shall be effective upon delivery), or (3) by depositing the written notice in the United States mail, properly addressed to the other party at the address provided in this article, registered or certified mail, return receipt requested, in which case such notice shall be effective on the third business day after such notice is so deposited. B. Contractor's Address. Contractor's address and numbers for the purpose of notice are: Attn: Marilyn K. Burgess, C.E.O. Lone Star Auctioneers, Inc. Norwest Bank Building 2315 North Main, Suite 300 Fort Worth, TX 76106-8573 Telephone: (817)740-9400 Facsimile: (817)740-9777 C. City's Address. The City's address and numbers for the purposes of notice are: Attn: Victor Kilman, Purchasing Manager City of Lubbock P.O. Box 2000 Lubbock, TX 79457 Telephone: (806)775-2165 Facsimile: (806)775-2164 D. Change of Address. Either party may change its address or numbers for purposes of notice by giving written notice to the other party, referring specifically to this Contract, and setting forth such new address or numbers. The address or numbers shall become effective on the 15'h day after such notice is effective. Auctioneer Service Contract, City of Lubbock & Lone Star Auctioneers, Inc. Page 6 of 9 ARTICLE XIII MISCELLANEOUS A. Captions. The captions for the articles and sections in this Contract are inserted in this Contract strictly for the parties' convenience in identifying the provisions to this Contract and shall not be given any effect in construing this Contract. B. Audit. Contractor shall provide access to its corporate books and records to the City. The City may audit, at its expense and during normal business hours, Contractor's books and records with respect to this Contract between the Contractor and City. C. Records. Contractor shall maintain records that are necessary to substantiate the services provided by the Contractor. D. Assignability. This Agreement may not be assigned by either party without the written consent of the other party. E. Successor and Assigns. This Contract binds and inures to the benefit of the City, Contractor, and their respective successors, legal representatives, and assigns. F. Construction and Venue. THIS CONTRACT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS. THE PARTIES HERETO HEREBY IRREVOCABLY CONSENT TO THE EXCLUSIVE JURISDICTION AND VENUE OF THE COURTS OF THE STATE OF TEXAS, COUNTY OF LUBBOCK, FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS CONTRACT OR THE ACTIONS THAT ARE CONTEMPLATED HEREBY. G. Severability. If any provision of this Contract is ever held to be invalid or ineffective by any court of competent jurisdiction with respect to any person or circumstances, the remainder of this Contract and the application of such provision to persons and/or circumstances other than those with respect to which it is held invalid or ineffective shall not be affected thereby. H. Amendment. No amendment, modification, or alteration of the terms of this Contract shall be binding unless such amendment, modification, or alteration is In writing, dated subsequent to this Contract, and duly executed by the Contractor and City. I. Entire Agreement. This Contract, including Exhibit A hereto, contains the Entire Contract between the City and Contractor, and there are no other written or oral promises, conditions, warranties, or representations relating to or affecting the matters contemplated herein. Auctioneer Service Contract, City of Lubbock & Lone Star Auctioneers, Inc. Page 7 of 9 EXECUTED as of the Effective Date hereof. CITY OF WBBOCK VA rlrll-A AI W, ATTEST: APPROVED AS TO CONTENT: Victor KilmAn Purchasing Manager APPROVED AS TO FORM: "/P/,�- � _ '� / V, , William de Haas Competition and Contracts Manager CONTRACTOR By: Title: CkV Auctioneer Service Contract, City of Lubbock & Lone Star Auctioneers, Inc. Page 8 of 9 EXHIBIT A COMPENSATION A. Grazing Rights. Flat fee of One Thousand Two Hundred and no/100 Dollars ($1,200) per sale. The auctioneer shall be one of the officers of the Contractor, either Marilyn K. Burgess, Ed Lanford, Jr., or Bill Burgess. This flat fee shall include all transportation, meal and lodging costs, public address equipment as necessary, and any incidental supplies the Contractor may need. An advertising budget of $300 per auction shall be used for regional or special market advertisements. This budget amount shall be directly reimbursable to the Contractor and the Contractor shall provide tear sheets and invoices to substantiate the expenditures. B. Real Estate. Commission rate equivalent to Four -and One -Half Percent (4.5%) of gross sales. Ed Lanford, a licensed Real Estate Broker, shall conduct all real estate auctions on behalf of the City. This commission rate shall cover all transportation costs, meals and lodging, public address equipment as necessary, and any supplies the Contractor may need. The Contractor shall place supplemental advertising for the propserties as the nature and value of the real properties warrant. For appropriate properties, the Contractor shall host an on-site preview period prior to the auction and shall have information sheets available for interested parties at the preview. The commission shall include the costs of the Contractor's advertising and the preview periods. C. All Other Property. A sum equivalent to Four and One -Half Percent (4.5%) of all gross auction proceeds. D. Billing. No later than fifteen (15) days after the end of each auction, Contractor shall submit to City an invoice for amounts due. City shall pay the invoiced amount within thirty (30) days after the invoice date. Auctioneer Service Contract, City of Lubbock & Lone Star Auctioneers, Inc. Page 9 of 9 RESPONSE ITEM 4. ADVERTISING AND MARKETING PROGRAM G & NETWORKING a. Proven Ability to Attract Large Numbers of Buyers Lone Star Auctioneers, Inc.'s ability to attract large numbers of qualified buyers for v icles, equipment and other surplus/seized assets is aptly demonstrated by the average number of r istered bidders that attend so many of our auctions. It is also reflected in the significant n revenue increases which have been realized by our municipal, county and state clients for wDom we have sold surplus heavy equipment, vehicles, furniture, fixtures, equipment, seized ago confiscated property. We sell literally thousands of surplus government vehicles and pieces76,VY equipment at premium prices each year. We have increased average auction attendance under almost all contracts v h our governmental clients. • For example, at a recent auction of agency vehicles, e Equipment (FF&E) and surplus equipment and supplies, bidders for the State of Texas. We average 500 - 900 buyer • At an auction on behalf of the U.S. Marshals Service, we d (Police estimated that crowd to exceed 4000-5000 people. • Lone Star Auctioneers holds the all time record for auctions - 982 bidders registered for Lone Star Auctio eers quip t, Furniture, Fixtures & we cted over 670 registered XSXState of Texas Auctions. w over 1500 registered bidders. h attendance at City of Amarillo ' 1993 auction. • During March, 1998 we attracted 573 regis/biddto an auction for the City of Oklahoma City (a relatively small auction includingtwenty vehicles in poor condition, 180 bicycles and a moderate amount of recoveproperty). These increases can be verified by calling the Cinistrators who are listed as Contact in our auction experience detailed in Response Itn 3. In addition to our domestic buyers, Lone St Auctioneers maintains a current mailing list of active international buyers from Mexico, Canada uerto Rico, Central and South America. We have many active buyers of heavy equipment, front d loaders, dozers, scrapers, excavators, backhoes, heavy duty trucks and trailers, garbage truc 'Pickups and automobiles who attend our surplus sales for cities, counties and states on a re gu r and frequent basis. We have over 16,120 buyers fro around the U.S. on our computerized mailing list database. These buyers are identifi/adaily of assets in which they are interested and/or have purchased. Our system automatics ach buyer's attendance record and purchase history at all Lone Star auctions. We caly pull buyers out of the system for a brochure mailing by numerous criteria such as tys purchased, total purchase history, recent purchase history, purchases or attendance sinclar date, state or zip code range of business or residence, etc. We keep our system curreily basis and perform a system -wide interest and address correction mailing approximnually. Keeping up wi current technology is an important aspect of Lone Star's efforts in many areas of business. A e most innovative new form of the transfer of messages and information, Lone Star employs E ail to transmit information to our auctions. Our current list of Email addresses enables us to co act over 2,000 individuals whose addresses we have. This is a rapidly growing area of outrea for Lone Star. Our web page, www.lonestarauctioneers.com contributes to the high visib' ity and rapid growth of our list of Email contacts. of Lone Star's established buyers try to attend as many Lone Star auctions as possible. Often --- 0+- the larorest dollar amounts at an auction. These are City of Lubbock: RFP 698005/Auctioncer Scr%iccs 01 of 100 a. Advertising and Marketing Plan of Lone Star Auctioneers, Inc. professionally conducted auctions where ethics and fairness are assured. b. Experience With Trade Publications, btvo iilt:as# Me'di'a And Newspapers As a normal part of publicizing and auction, Lone Star issues Press Releases, PubA Pub'Service Announcements and Press Advisories. In addition to these efforts, Lone Star contacts embers of the media by phone, fax and Email. Newspaper, Radio, Television and Trade Publicton attention is generated as much as possible. Karen Plunk establishes a good rapport with edia contacts. Marilyn Burgess and Ed Lanford have conducted numerous interviews with rept entatives of TV and Radio stations as well as Newspapers. They both conduct themselves rofessionally and represent the clients for whom they sell with poise and dignity. The following is a list of trade publications, journals, radio and television 4fitions, national auction publications, international newspapers, and domestic newspapers in whicvLone Star has advertised and generated promotional coverage. Included with attachments, we su it copies of representative ads and Press Releases which publicized auctions of size and ty comparable to the City of Lubbock's auctions for five separate auctions within the past five ars: Television Stations Channel 6 Austin KXTX/ TV Dallas/Ft Worth Channel 36 Austin WFAA/TV Dallas/Ft Worth KCAL/TV Los Angeles Channel 9 Midland/Odessa KNBCfTV Los Angeles Cable 5 Ft Worth KCBS/TV Los Angeles KBMT/TV Beaumont Oklahoma Channel 4 KJAC/TV Port Arthur KDFW/TV Dallas/Ft Worth KAMC Lubbock KCBD Lubbock KJTV Lubbock KLBK Lubbock Kms' Lubbock And Abilene, Amarillo, Midland d Nashville stations. Radio Stations KRLD. 80 FM Ft WorftVallas KERA 90.1 FM Ft Worth/Dallas 89.3 FM Ft Worth/Dallas FM/AM Austin AM Austin FM/AM Austin CE FWAM Austin FM/AM Gonzales AM Hallettsville =K/ST/KF FM/AM Los Angeles BC FM/AM Los Angeles QI FM/AM Los Angeles BK FM/AM Sacramento TK FM/AM Sacramento AM Sacramento City of Lubbock: RFP #98005/Auctioneer Services 02 of 100 a. Advertising and Marketing Plan of Lone Star Auctioneers, Inc. Estate Jeweler (new publication) Coin World The Robb Report Antique Week . Contractor's Hotline Antique Trader Rock & Dirt ,Sports Collectors Digest Machinery Trader Meat & Poultry industrial Ma ketine Newsletter National Bus Trader Construction Bargaineer howtimes National Auction Bulletin Passenger Transport Federal Auction Register The Weekly Livestock Reporter Trade-A-Plane Tennessee Fane Bureau The Controller High Plains Journal Executive Controller Ratite Marketplace The Locator Ratite Trader Boats and Harbors Exotic News Auto Trader Old Cars Weekly Rapp port Diamond News Wings and Hooves National Jeweler American Emu Association Magazine Numismatic News Man at Arms World Coin News Linn's Stamp News Excelsior ( exico City, Mexico) El Norte Monterrey, Mexico) El Diario(Juarez, Mexico) El Manana (Nuevo Laredo, Mexico) City of Lubbock: RFP tl9 MS/Auctionccr Scrvmices 03 of 100 4. Advertising and Marketing Plan of Lone Star Auctioneers, Inc. Houston Post Denver Post Houston Chronicle San Diego Union San Antonio Light San Antonio Express ,Sacramento Bee Bay City Tribune Brenham Banner Press New Braunfels Herald Rosenberg Herald San Marcos Daily Record Seguin Gazette Victoria Advocate Amarillo Globe Borger News Hereford Brand Pampa News Plainview Herald Odessa American St_ Louis Post -Dispatch McAllen Monitor Tucson Citizen Daily Oklahoman Topeka Capital -Journal Tulsa World Tyler Courier -Times Austin -American Statesman Graham Leader Baton Rouge Advocate Breckenridge American Cedar Rapids Gazette Abilene porter News Lubbock Avalanche Journal Columbus Banner DFW Suburban Newspapers Eastland Telegram Des Moines Re ig ster Cisco Press Et Paso Times Herald Callahan County Star Honolulu Star -Advertiser Gorman Progress Kansas City Star Ranger Times Eastland (fivyfregional papers) City of Lubbock: RFP #98005/Auctioneer Services 04 of 100 4. Advertising and Marketing Pian of Lone Star Auctioneers, Inc. Hallettsville Tribune Lockhart Post Register Luling Newsboy & Signal New Ulm Enterprise Schulenhurn Sticker Sealy News Shiner Gazette Weimar Mercury Wharton Journal Yoakum Herald We have often advertised in hundreds of small and mid-size states, depending on the location of an auction. Lone Star h; around the state of Texas and the United States as well c. Lone Star Auctioneers' Web Site weekly newspapers in various ;ed in many other newspapers Our Internet web page (www.lonestarau neers.com) offers international exposure to all our auctions. On the website we post o urrent auction calendar plus information about all the upcoming auctions for which we h e brochures and specific information about items to be sold. In addition, we create a series o eb pages for each major auction. These pages include eight to twelve color photos of major ' ms in each sale, a listing of merchandise in each auction, time, place, terms and conditions, a , requently, a complete catalog when we have the inventory insufficient time. As the newest eans of generating publicity and the wide dissemination of information, the website gives buye access to current, accurate information twenty four hours each day, seven days a week. The in est in and increased attendance as a result of our website is growing daily. There were over 22 0 hits (visits) to our web site between March 18, 1998, and May 28, 1998! That is an amazing 2. ADVERTISING & MARKETING PLAN C� a. Objectives Lone Star's objectives in marketing and promoting each auction will be to inform the public that the auctions will be held , to provide the quantity and quality of information necessary to attract well t.7 informed and qualified buyers, to increase attendance and to maximize proceeds to the City of Lubbock. b. Marketing Plan During this campaign, Lone Star Auctioneers will: • Take photographs of major items of interest for the brochure approximately 5 - 6 weeks prior to the auction in accordance with specifications of the contract. • Prepare high quality 4 -color brochures with quality color photographs of selected sample items C7 being offered. These brochures will be of a minimum size of 5'/z" x 8'/z" (folded booklet style). These will be 11" x 17". Production of the brochure will include the photography, copy preparation, typesetting, layout and paste-up, printing and mailing. Please see sample brochures from previous Lone Star auctions with attachments. • The color direct mail brochure will include a list of items in the auction along with twelve to r•� twenty glossy photographs. It will contain other information which is crucial to the conduct of a successful auction, and/or as required by the City. City of Lubbock: RFP 098005/Auctioneer Services 05 of 100 4. Advertising and Marketing Plan of Lone Star Auctioneers. Inc. • Provide the City of Lubbock with a minimum of 1000 brochures at least two weeks prior to the auction. • Mail at least 4,000 brochures by First Class to previous buyers and bidders at City of Lubbock . auctions. 'Included in that number will be established buyers of the types of merchandise offered, potential buyers identified from our extensive mailing list and from commercial Yellow Page listings (identified by SIC code in the target market area) as merchandise dictates. These lists will include known and prospective buyers of surplus city vehicles, heavy equipment, FF&E, seized and forfeited vehicles, jewelry, guns, electronics, computers, home entertainment items, cameras, sporting goods, medical, food service or other specific assets. • Mail the brochure two weeks prior to the auction to reach bidders at least seven days prior to the auction. C .D C� 7 • Prepare a Buyer's Catalog for the auction to be made available to each bidder at least one hour prior to the auction. This catalog will include a complete listing of inventory in lot number sequence with quantity and description provided. Column space will be provided for buyer number and unit price notations. The catalog will also contain full terms and conditions of sale, and will comply with the terms of the contract. • Launch an advertising and promotion campaign which will be comparable in nature and scope to those which have helped us achieve outstanding attendance and increased earnings for our other clients with similar assets. • Develop, place, mail and distribute the advertising proposed in this section at a minimum. C� • Develop, place and pay for display ads of significant size (at least 2 columns x 4") in the Sunday Z 'T1 Auction Classifieds of the Lubbock Avalanche -Journal on each of the two Sundays preceding C= an auction. • Develop, place and pay for display ads of significant size (approximate size based upon auction items - 2 x 2" minimum, 2 x 4" average size) in Sunday Auction Classifieds of additional daily newspapers in the Lubbock area including the Big Spring Herald, Midland Reporter, Odessa Americam, Clovis News Journal, Hobbs News- , Amarillo Globe -Times, Tulsa World, Plainview Herald and the Fort Worth Star -Telegram or Dallas Moming�News. • Develop, place and pay for advertising in weekly publications such as the High Plains Journal, Weekly Livestock Reporter, Brownfield News, Levelland News Press, Littlefield Lamb Co. Leader News, Post Dispatch, Floydada Eloyd Co. Hesperian. as merchandise warrants. • Place national display advertising in Contractor's Hotline as merchandise warrants. • Place notifications in trade publications and on national auction calendars such as the National Auction Bulletin and Contractor's Hotline. These are national publications for buyers of heavy equipment and machinery, cars, boats, planes, seized and confiscated merchandise, etc. Many C-7 readers who attend auctions read these publications, and many of those contact Lone Star for G? additional information about our auctions. (Also, see Hyperlinks below) Z �..r i • In addition to the description and quantities of the inventories, advertising and promotion will s C include the date, time, place, directions, terms and conditions, required methods of payment, —_ viewing and removal times, contact names and numbers for further information, descriptions ---4 and quantities of items being offered and other such information as to stimulate the greatest yam. level of interest in the buying public. Please see sample advertising enclosed with attachments. City of Lubbock: RFP (!98005/Auctionccr Services 06 of 100 4. Advertising and Marketing Plan of Lone Star Auctioneers, Inc. • Include information regarding the City of, Lubbock auction in the memory of Lone Star's FAX machine, which is set up for twenty four hour a day, seven day a week polling -on -demand. When prompted the machine transmits information to all who inquire about any of our upcoming auctions. Hundreds of individuals poll our fax machine each month to obtain our schedule and information about our auctions. Polling instructions are printed in almost all our advertising . plus we instruct phone callers to poll our FAX machine and visit our website for information. —;—� Verification of the number of times the fax machine is polled will be provided with advertising tear sheets. r"t • Include City of Lubbock auctions in Lone Star Auctioneers' own printed and advertised auction -- calendar. This calendar appears on our FAX machine and on our Web page. It is also available' in printed format free of charge at all of Lone Star's auctions and at corporate headquarters. A current calendar is included with attachments. • Create a Web page for the Lubbock auction on Lone Star Auctioneers' Internet website (www.lonestarauctioneers.com). As descriptions of specific equipment in the auction become available, those descriptions will be added to the website as well as color photos of major equipment, vehicles and items of interest. • Create Hyperlinks from relevant websites to the Lone Star website so that interested people can fmd out about the auction through other sources. These Hyperlinks will include links with sites of specific publications where we advertise such as: Contractor's Hotline (www.contractorshotline.com). We will establish as many Hyperlinks as possible so individuals on the Internet can view Lone Star's website and information about the Lubbock C auction easily. • Promote the City of Lubbock auction at earlier Lone Star sales. We will announce Lubbock dates and provide brochures at our preceding auctions such as the State of Texas, Fort Worth Equipment Services, City of Dallas, Dallas and Fort Worth Police Auto Pound auctions, and any --�. others which take place prior to a City of Lubbock auction. • Make every attempt to generate TV and radio coverage throughout the area with Press Releases and Public Service Announcements issued to each of the major media outlets for each auction. Media contact will include newspapers, television stations and radio stations. Personal contact will also be made with feature writers and broadcasters in each market by phone. Free publicity on news programs is worth far more than purchased TV time in terms of attendance by the general public. Please see sample Press Releases and a videotape of prior pre and post auction television coverage with attachments. • Place auction signage at the auction site prior to the auction. This signage will take several forms including directional signage and sale site signage. All signage is professionally made in C D red and blue on white background. It is attractive, in good repair and enhances the public's perceived image of the upcoming auctions. • Post -auction, submit documentation verifying the number of brochures mailed along with tear sheets from newspaper advertising, press releases, postage receipts and other suPPorting materials to demonstrate that the advertising and marketing program complies with our proposal and with the contract. A typical postage verification (for a State of Texas auction) is included �. with attachments for your review. tom" Cityof Lubbock: RFP 1198005/Auctioneer Services 07 of 100 4. Advertising and Marketing Plan orLone Star Anctioneera. Inc. c. Advertising -Budget*_ Type of advertising Publication Name cost # runs Ad size Cost Daily Newspapers Lubbock Avalanche -Journal 353.92 2 2 columns x 4" $ 707.84 Tulsa World 2 columns x 4" $ 500.64 Amarillo Globe -Times 2 columns x 4" $ 301.00 Fort Worth Star -Telegram or 2 columns x 4" $ 756.00 Dallas Morning News. 2 columns x 4" Plainview Herald 2 columns x 4" $ 90.56 Midland Reporter 2 columns x 4" $ 142.72 Clovis News Journal 2 columns x 4" $ 69.60 Hobbs News -Sun 2 columns x 4" $ 69.60 Odessa American 2 columns x 4" $ 130.20 Big Spring Herald 2 columns x 4" $ 66.00 Weekly Newspapers Brownfield News 2 columns x 4" $ 32.00 Leveliand News Press 2 columns x 4" $ 38.00 Floydada - Floyd County Hesperian 2 columns x 4" $ 23.60 Littlefield - Lamb County Leader News 2 columns x 4" $ 31.20 Post Dispatch 2 columns x 4" $ 36.00 Trade Journals Contractor's Hotline 1/4 Page $ 215.22 Weekly Livestock Reporter 2 columns x 4" $ 88.00 High Plains Journal 2 columns x 4" $ 272.72 Brochure costs Printing 5000-11" x 17" $ 1,256.23 Postage 4000 1 .32 $ 1,280.00 Catalogs $ 300.00 Web Site $ 400.00 Total $ 6,807.13 * This is the budget for atypical $600,000 to $1,000.000 City of Lubbock auction. If the anticipated gross revenues were less or greater, the budget would be adjusting accordingly. 3. MARKETING & SALES STAFF a. Karen Plunk - Advertising and Promotion Specialist Karen Plunk is responsible for al 1 of Lone Star's advertising and promotion on a local, state, national and international level. In this full time position she: i. Develops, places and proof reads advertising in daily and weekly newspapers as well as trade publications; ii. Develops brochures and mailers for all Lone Star auctions, works with printers, photographers and other trades in the production and mailing of high quality printed materials; Cityof Lubbock: RFP #98DORAuctioneer Services 08 of 100 4. Advertising and Marketing Plan of Lone Star Auctioneers, Inc. I I iii. Writes Press Releases and Public Service Announcements and other promotional copy for a variety of media; iv. Contacts media personally to promote Lone Star auctions; V. Maintains Lone Star's auction calendar and distributes it to national auction publications, Lone Star's website and fax -on -demand facsimile machine and to all Lone Star auctions; vi. Maintains memory contents and monitors volume of calls of Lone Star's fax on demand facsimile machine; vii. Oversees and maintains our website (www.lonestarauctioneers.com); viii. Serves as small product videographer and photographer (jewelry, coins, etc). ix. Prepares the post -auction media package in which she submits tear sheets and documentation to clients as proof of advertising and promotion. Karen has over ten (10) years experience in newspaper and print advertising and in the printing industry. She has taken numerous college courses in the graphic arts. She is proficient in Pagemaker 6.5. She also serves as a cashier and registrar at many of our auctions. b. Support staff for advertising & marketing Several of Lone Star's corporate office staff members serve as support and back up during times when Karen needs additional assistance, or at times when she must be away from the office. Because of cross training and a cooperative, supportive and diligent staff, advertising and promotion always fall into capable hands. Support staff members include: i. Pam Kennedy - Fully trained in advertising and promotion, Pam is equal to the task of providing back up. Toward this effort she: (1) Serves as an able reinforcement when Karen must be out of the office; (2) Occasionally proofs ad copy from newspapers and trade publications; (3) Maintains Lone Star's computerized mail list files; (4) Searches the mail list database for established and potential buyers for each auction and generates mailing labels for brochures and publicity materials; (5) Ably manages phone contacts and generally supports and supplements marketing and promotional efforts. ii. Additional support is available from Paula Hooper, Elsa Edwards, Benji Espino, Anne Dalton and any other staff member who is called upon to provide it. All the corporate staff is cross - trained, able and enthusiastic about offering assistance and support where it is needed. c. Customer Service i. Corporate Headquarters - Office staff customer service activities include providing vital and helpful information to individuals who call our offices about our upcoming auctions. We may counsel callers on procedure for accessing the Lone Star Poll -on -demand Fax and our Internet website, (www.lonestarauctioneers.com). In addition, we process requests for brochures by mail, field questions, etc. Professionalism and courtesy are important aspects of customer service at this level. ii. Auction - Lone Star staff members strive to provide an orderly, efficient, considerate atmosphere at auction. (1) Employee Identifiability and Uniforms - All employees of the auction company will wear shirts monogrammed with the Lone Star Auctioneers logo, dark blue pants or skirts, new white caps with the Lone Star logo figured prominently on the crown and plastic pin -on name tags engraved with their names and the company name affixed to their breast pocket for ease of identification by City personnel, security and the general public. (2) Crowd control techniques including directional signage, stanchions with ropes, survey tape, a greeter and other methods Lone Star employs serve to direct bidders to appropriate areas, City of Lubbock: RFP #98005/Auctioneer Services 09 Of 100 4. Advertising and Marketing Plan of Lone Star Auctioneers, Inc- keep order, and facilitate helping everyone quickly and efficiently and working to prevent agitation. (3) Crew members strive to assist potential bidders at registration and buyers at checkout in the order they arrive at various stations. (4) Consideration, fairness and professional ethics are constant practices for Lone Star crew members. We treat all bidders and buyers courteously and with equanimity. One of the key elements to conducting a successful auction is getting the word to the buying is that we are selling. Whatever and wherever the auction, this is necessary. To accomplis Is goal, we routinely send Press Releases, News Advisories or Public Service Announcemen the news media acquainting them with the auction and providing them with pertinent info ion. We invite their inquiries, offer a contact person's name and often provide a specific t' during preview when an articulate, knowledgeable person will be available to answer quer ' s. We try to make the auction interesting and the contact personal with the creators of the ne stories. We always get approval for our Press Releases and print advertising from our client ' to publication. While the job of creating interest in an aucti;-i'magep iramount importance, we at Lone Star also realize that it is our job to maintain a positiv�Pub n behalf of the government clients for whom we conduct auctions. We strive to exhfessionalism at all times, whether it be with news media, buying public, or any individual. ch and every contact is important to Lone Star. We have enclosed a b ' video tape showing news clips of various Lone Star auctions. The tape illustrates some of media attention we have generated in the past and which we continue to generate for our auctio . The clips show coverage of several different types of auctions over a period spanning several s. The video is approximately seventeen minutes long, and should provide evidence of the typ coverage generated by our promotional efforts along with the resulting attendance produced by City of Lubbock: RFP #98005/Auctioneer Services 010 of 100 4. Advertising and Marketing Plan of Lone Star Auctioneers, Inc. RESPONSE ITEM 5. OPERATING PROCEDURES AND REPORTS Response Item 5 requires a detailed description of the proposer's operating procedures and reports. The following narrative details our general approach to the project requirements. Of course, each engagement will have its special characteristics, problems, occasionally peculiar inventories, and idiosyncrasies with which we will deal on an ad hoc basis to the best of our abilities and experience. These unforeseen and unpredictable events are the spice that keep the auction business perpetually interesting and challenging. 1. OPERATING PROCEDURES a. Site Inspection Upon notification by the City of Lubbock that assets subject to this contract are to be scheduled for auction, Lone Star Auctioneers' Project Manager (hereafter referred to as P.M.) will inspect and photograph said assets and their physical location within seventy-two (72) hours after notice, or at the earliest convenience of the City of Lubbock. The Project Manager who will be assigned to this contract will be Ed Lanford. Lanford has experience -as Project Manager with heavy emphasis in site preparation, photography, vehicle and FF&E setup and make ready, checkout and security. He will bear responsibility for going to each site, inspecting and evaluating inventories and physical facilities, and making recommendations and determinations as to the most efficacious approach to the disposition with the advice and consent of the City of Lubbock. He will then designate staff for the City of Lubbock project and assign specific tasks to Bill Burgess, Paula Hooper, Sim Burgess, Karen Plunk, Pam Kennedy and Hank Feighner. All but Plunk, Kennedy and Feighner are experienced and licensed auctioneers. After the initial inspection, determination and decision with approval of the City, the P.M. will: b. ON-SITE RESPONSIBILITIES (& TEAM MEMBERS ASSIGNED) Taking photographs of major items of interest, group shots of large sections of merchandise and other strategic photographs for use in the brochure and which are designed to kindle the interest of prospective buyers; (Ed Lanford) Prior to, during or after the physical inventory is completed (the exact timing will vary by situation), the P.M. and/or his team will; Prepare the merchandise for the on-site auction by; • Assigning at least one person to assist and advise city personnel in determining the strategic sale order and physical layout of auction; (Bill Burgess, Sim Burgess) • Providing input for arranging and detailing the assets in a clean, organized and attractive manner to appeal to the buying public, to facilitate coherent and orderly flow of the auction, and to maximize auction proceeds; (Bill Burgess, Sim Burgess) • Assigning sequential auction lot numbers; (Bill Burgess, Sim Burgess) • Prepare a written inventory (with other team member(s) as necessary) all subject assets, assigning and affixing sequential identification numbers, capturing accurate and complete descriptions including make, model, serial number, features, etc.; (Bill Burgess, Sim Burgess) c. INITIAL AUCTION RESPONSIBILITIES Lone Star Auctioneers with the advice and consent of the City of Lubbock will determine: The appropriate date(s) for the upcoming auction; (Marilyn K. Burgess) The scope of the advertising and promotion program to be developed; (Marilyn K. Burgess, Ed Lanford, Karen Plunk) The special interest or focused market items which will require special promotional efforts and targeted advertising; (Marilyn K. Burgess, Ed Lanford, Karen Plunk) cityor Lubbock: RFP #98005/Auctioneer Services 01 of 140 5. operating Procedures and Reports/Lone Star Auctioneers, Inc. The strategic marketing plan including print media, broadcast media, a direct mail program, telephonic networking, web site marketing and specific promotional efforts to heavy equipment and vehicle buyers and or interested parties; (Marilyn K. Burgess, Ed Lanford, Karen Plunk) One on one networking and promotion special and valuable assets; (Marilyn K. Burgess, Ed Lanford, Bill Burgess) and An approved advertising budget which is consistent with the types and quantities of assets to be offered, the market dispersion, cost-effective penetration of the market and the generation of maximum = proceeds. d. PROJECT MANAGEMENT AND CONTROL To accomplish the timely management and performance of each contract beginning from the date of the award, we must actually start the process with the evaluation and preparation of each bid response or proposal prior to our preparation of our response. In the analysis of an Invitation for Bid or Request for Proposal, our staff determines on a task by task basis all of the requirements and specifications for performance in the Statement of Work and other contract sections of the solicitation. Once the solicitation is thus detailed, a specific client project file is created in our special time -based project management program. Then, every task and requirement for that customer (project) is entered into the project program. Once this is done, an auction date can be established, the auction lead time can be determined, and the program will generate a time -phased schedule for each task, when it is to be accomplished, and by whom. This schedule can be generated in a number of ways the most useful of which for us are "by date, by department" and "by department, by date." The next step is to create the budget for each requirement in the solicitation in the project management program. Each cost element of each task is detailed in the budget by Chart of Account number and detailed description. Each budget line item is detailed by category and task description including staff member's name for labor costs, publication's name for advertising costs, and other details specific to that cost. After the budget is complete, we can then perform variable profit/loss evaluations for each auction or endeavor. Adjustments can be made to the auction plan based on these analyses. e. PROJECT STAFFING, PROJECT TEAMS, AND TEAM LEADERS Our staff has been trained and cross trained to perform a variety of duties so that we can provide backup to every employee of Lone Star Auctioneers. It is imperative for us to be able to flex with changing requirements and be able to continue to function a peak performance and capacity no matter what the circumstances. Each contract is assigned to a Project Team with a Team Leader (Project Administrator) whose responsibility it is to see that performance of each task under that contract is accomplished on or ahead of schedule and in full compliance with all requirements and specifications. Lone Star holds �__ - - _ -__ .sleekly staff meetings to review the status of each project, to deal with problems,to allocate or reallocate resources as necessary, and to discuss and plan upcoming projects. Each Team Leader reports on the status of each of his or her projects, addresses problems, solicits help, offers support or assistance, etc. as their particular workload and situation wan -ants. We are a close group and work as a team. Marilyn K. Burgess Contract Oversight, Financial Management, Personnel/Staffing, Marketing, Lead Auctioneer Ed Lanford, Jr Contract Oversight, Project Planning and Management, Proposal Preparation, Marketing, Auctioneer Bill Burgess Contract and Project Management, Staff Photographer, Setup Supervision, Marketing, Auctioneer Sim Burgess Project Management, Setup, Auctioneer Paula Hooper Project Management, Office Manager, Auctioneer City of Lubbock: RFP #98005/Auctioneer Scrvices 02 of 140 5. Operating Procedures and Reports/Lone Star Auctioneers, Inc. Pam Kennedy Accounting, Project Management, Assistant Office Manager Karen Plunk Advertising Manager Anne Dalton Special Projects, Jewelry Specialist Hank Feighner Equipment Manager, Moving/Hauling, Setup, Asset Maintenance Dave Dillingham Vehicle Preparation, Moving/Hauling, Setup, Security Elsa Edwards Project Management, Data Entry, Administration Benjamin Espino Data Entry, Computer Programmer JoAnn Whittenburg Cashier, Registrar, Bookkeeping We provide as references for each of the above employees the thirty -plus "Contacts" for each of the contracts and engagements listed in our experience. Each of the Contacts has worked closely (and most of them frequently) with Lone Star employees at all levels in performance of our contracts. They know best what our performance history, contract compliance, and actual auction capabilities have been for over 2,500 auctions in the past six years. The auction business is an unusual business, and prior experience in other industries bears little correlation to success at auction performance. The ability to evaluate, setup, market, and sell a wide variety of assets for market prices within a very short window of performance can not be measured against other industries. Additional references are available upon request. E COORDINATION WITH THE CITY Ultimate responsibility for coordination with the City will lie with the C.E.O. and the President of Lone Star Auctioneers. Ed Lanford, Jr., President, will be the Project Manager; however, day to day functional responsibility for such coordination and contract compliance will belong to the Contractor Administrator, Paula Hooper. The lists of vehicles and property from the City of Lubbock for each auction will come to her. She will receive the lists and assign work tasks to the appropriate Lone Star office staff. Any questions, changes or special needs of the City or Lone Star will be handled by Hooper with the appropriate City representative. She will also be responsible for resolving minor functional problems with the City with the advice, consent and participation of the officers of Lone Star. g. ADVERTISING & PROMOTION The advertising and promotion campaign will be accomplished in such a manner as to disseminate notice of the auction to allow bidders sufficient time to make schedule, inspection, payment and removal arrangements. The campaign will be conducted in accordance with the advertising plan proposed in Response Item 4, Advertising and Marketing Plan. Karen Plunk, Advertising Specialist, will forward all advertising and promotional copy to the City for approval prior to release. h. STAFFING For the typical $600,000 to $1,000,000 City of Lubbock auction, Lone Star Auctioneers will provide aminimumof twelve.(12)_regular_membersof our regular auction staff toaccomplishthe auction^ cA µ and all related functions on-site during the preview and performance of a typical City of Lubbock auction. For sales expected to be smaller of larger than the typical auction, we will increase or decrease staff accordingly. [Lone Star's staffing capability derives fi-on: a sizeable group of experienced, capable individuals. Personnel will be chosen to complete the tasks required under this contract from this roster. (Please see Response Item 3 for the complete Roster which includes the names of our permanent crew members including number of years auction experience and the duties they perform at our auctions.)] i. Licensed Full-time Auctioneers - Lone Star Auctioneers will provide a minimum of six (6) licensed professional auctioneers for each auction. (Marilyn K. Burgess, Ed Lanford, Bill Burgess, Sim Burgess. Jeff Oswalt, Paula Hooper) City o[ Lubbock: RFP #98005/Auctioneer Services 03 of 140 5. operating Procedures and Reports/Lone Star Auctioneers, Inc. ii. Lotting assistance -Lone Star .vill provide one overall setup manager who will assist and advise City personnel in determining lots and selling order. If it appears there is an unusually large volume of merchandise to be setup and lotted. Lone Star will provide additional personnel. (Sim Burgess, Hank Feighner or Jeff Oswalt) iii. Bid Spotters - Our auctioneers serve as bid spotters when they are not actually calling bids. We will provide additional bid spotters as the volume of merchandise and anticipated crowd may warrant. (Wayne Rhodes, Hank Feighner) iv. Ticket Clerks - Lone Star Auctioneers will provide two clerk/recorder/runners (one clerk at a time plus one backup) to rotate and move tickets from auction block to office v. Two computer operators (see F. below) (Paula Hooper, JoAnn Whittenburg) vi. Two (2) additional staff members sufficient for data processing, accounting and prompt recording of sales information and data (Karen Plunk, Pam Kennedy, Elsa Valenzuela Edwards, Jeanette Olsen, Willa Lister) vii. At least one of the staff members will be bilingual (Spanish/English) to assist buyers (Elsa Valenzuela Edwards or Benjamin Espino) J. AUCTION PROCEDURES The day of each auction, the following will occur: • The auction crew will arrive at the sale site by 7:00 a.m. the morning of the auction to establish cashiers' banks, connect and fire up the computers, printers and office machines, and prepare for registration which begins promptly at 8:00 a.m. Other crew members will set up the necessary auction platforms and public address systems to prepare for the auction; The computer operator will begin entering the bidder registration information into the computer as soon as city staff begin registering. If a person is on our mail list, that information is automatically registered into the computer without unnecessary and time-consuming data entry, therefore speeding the registration process. Lone Star has personnel who can communicate bilingually with our Spanish-speaking bidders and assist with information and questions; • Lone Star will begin each sale promptly at the advertised starting time (ordinarily 10:00 a.m.) with the opening remarks and terms and conditions of the sale. Then the fun begins with the three professional auctioneers (officers of the company) rotating the duties of auctioneer, announcer and ringperson until the last lot is sold to the highest bidder. The entire sale is tape recorded, and the announcer keeps a backup list for each transaction. A clerk/recorder will __ r_ .. _.._._ _______independently_xe�cozdeach_trartsac on�on clerk ickets to be sent sheet by to the computer operator for entry; Q • The computer operator enters each transaction into the computer as the clerk tickets arrive. When a sheet is completed, the operator verifies each entry for the sheet, adds the sheet total and double checks her total against the computer sheet total (a feature of our program) so that she remains in balance throughout the course of the auction; • Lone Star cashiers greet each buyer who is ready to check out, takes their bid number and prints an invoice. The invoices will be given in triplicate to City personnel as soon as each is printed. r- This process continues until the last buyer is accommodated; • The computer operator generates an "Unsold Lot Report" immediately after the last lot is sold to insure nothing was missed during the auction. Once it has been determined that everything City of Lubbock: RFP #98005/Auctioneer Services 04 of 140 5. Operating Procedures and Reports/Lone Star Auctioneer. Inc. has been sold and paid for, the reconciliation and report cycle begins. As cashiers reconcile receipts, computer reports are generated. All documentation is complete and is then available to the City of Lubbock; • Security personnel will begin to allow removal of purchases once the auction is complete. All removals will be verified by lot number and buyer against each buyer's invoice. Lone Star ._ personnel will be on site at announced times for the removal of merchandise within a reasonable --- period of time until the facility is cleared; and • Lone Star personnel will dismantle and pack the trailer with all PA equipment, portable auction stand, office and computer equipment, site signage and any other equipment or supplies remaining. When all else is complete, the auction company departs leaving the sale site in the same or better condition than they found it. J. MISCELLANEOUS FEATURES We will provide sufficient personnel to perform all of the tasks detailed above. The staff required will vary depending on the characteristics of the merchandise and facilities, anticipated crowd size, and the quantity of assets to be sold. Lone Star routinely provides an experienced staff of forty (40) permanent company employees at our larger sales. Our philosophy tends toward sufficiently staffing an auction rather than under- staffing one. We prefer to have sufficient personnel available to handle all contingencies rather than run the risk of being caught short-handed and unable to deal adequately with unexpectedly large crowds or emergency situations. We have had as many as 4000 to 5000 people attend individual auctions. It is not unusual for us to register 700 to 1000 bidders at our auctions (See enclosed videotape). 2. Computerized database management and reporting a. LONE STAR UTILIZES A STATE OF THE ART COMPUTER SOFTWARE IN THE CONDUCT OF ITS AUCTIONS. Computerization of Auction, Inventory and Mailing List Functions This section provides a basic description of the state-of-the-art multi-user auctioneering computer program which Lone Star Auctioneers utilizes in the performance of its business. Lone Star Auctioneers is on the forefront of companies in the United States networking and using the system in a multi-user environment at auction sites. We set up and network five separate computers at larger auctions and two at smaller auctions. This demonstrates the significant technological and professional development of our firm. (Lone Star Auctioneers can computerize five separate single - user auctions at one time with current hardware and software.) _..._._-..__.The multi-user syste m allows for speedier check-in at registration to get the buyers to the auction block sooner, faster processing of sales transactions to minimize the possibility error and accelerate the ability to print invoices to customers, serving all customers more promptly at check-out, reconciling all transactions and cashiers receipts at the conclusion and faster preparation of all post - sale documentation for our client. There are three separate modules in the computer system which can stand alone or be fully interactive one with the other. The modules are briefly described as follows: i. The INVENTORY Program is a comprehensive design to allow for the separate maintenance and management of owned and consigned inventory. It will track reserves on items, allow for the selection of individual items for particular auctions, allow for the selection of inventory by City of Lubbock: RFP #98005/Auctioneer Services 05 of 140 5. Operating Procedures and Reports/Lone Star Auctioneers, Inc. class of merchandise, case number, VIN, inspecting official, make, model, year, vehicle tag number, Government office ordering tow or virtually any other selection criteria. It is so interactive with the auction program that we can create an auction, set up the inventory file of unclaimed property as directed by our client, create the consignor number) file and print. the auction catalog without typing one entry into the Auction Module. After each auction, we can transfer unsold inventory back into the Inventory System for future sale, disposition or destruction, and transfer sold inventory into the History File portion of the program for future analysis or reference. This allows for complete tracking of "sold" and "unsold" vehicles. The program includes a Custom Report Writer which allows us to create virtually any report showing only the information our client might need any way you need it. ii. The MAIL and MARKETING System is designed for the intelligent and comprehensive mailing list management of previous buyers, bidders and interested parties. With this system we have the power to specify and select targeted individuals, businesses or groups by previous attendance or purchase history, Zip code, state, SIC code, interest category, and/or many other selection criteria. Purchase histories for each buyer are retained by the system. At our fingertips we have the auctions each buyer has attended in the past and how much they bought at each auction. At the time a bidder registers at one of our auctions, the system also allows Lone Star Auc- tioneers to identify customers who have been rejected as bidders by our client, who have been banned from attending or who have left an auction without paying for merchandise. At an auction .we can register anyone who is on our mail list with one simple keystroke without having to enter all the data on that person's registration card manually. This significantly speeds the process of bidder registration. iii. The AUCTION MANAGEMENT System is a thorough, fully integrated, real-time auction program. It significantly speeds the auction office process by allowing us to register buyers more quickly and accurately, process and verify sales transactions more efficiently, invoice and check buyers out more rapidly and reconcile the auction records quickly and immediately after the completion of the auction. iv. We have three ways to accelerate registration of bidders at our auctions. First, we have issued and maintain hundreds of permanent bidders who each have a unique permanent bidder number assigned to them. They remain in our system permanently and are automatically registered when they buy an item. _. n..._.__...,._.__ _The-second,acceleratingtechnique .,is -through_the.use of.bar..code.entry_..Many..of..our_buyers__..__..__ have a bar code encrypted on their registration cards in our bidder files. We scan their cards through a bar code reader to register them automatically. The third method we use is to pull them up from our mail list database by company name or last name. If they have purchased from us before, their complete name and address information is automatically brought up, and they can be registered with a few keystrokes and without having to re -key all their registration information into the system. v. Every registering bidder's name is run through our mail system as they are registered to determine if they have "walked" on any items at our auctions in the past and to identify any historical problem bidders. We ban such "no pays" from our auctions to protect our clients from having unsold merchandise at the end of an auction. City of Lubbock: RFP #98005/Auctioneer Services 06 of 140 5. Operating Procedures and Rq*rts/Lone Star Auctioneers, Inc. vi. Within thirty minutes after each auction «,e provide our clients with a complete set of accurate reports in duplicate or triplicate. These reports are a Buyer Register which lists each bidder by Bid Number or name and provide complete information for that person, an Invoice Summary which lists the purchases for each buyer by number and/or name, a Sales Journal which lists each lot in lot number sequence with the amount of sale and buyer number and Consignors Statements which list each lot by consignor (case number), how much each brought, the commission on each lot, Buyer Number, etc. There are many other reports available to provide virtually any information the client may require. The reports are thorough yet concise. vii. Power of inquiry is one of the strongest and most important features of this program. In all the modules, access to information is virtually limitless. viii. On-line 24 hour support is available to us seven days a week. Our personnel are thoroughly trained and have had no difficulty with the system and have had no problems at auction sites. ix. Automated Invoicing, Property Tracking and Reporting (1) Invoices will be generated by our comprehensive in-house accounting system. All invoices will be prepared and submitted on a timely basis in accordance with the terms of this RFP and the subsequent contract. (2) From the time each item or lot of property is inventoried and appraised, our system of inventory history, appraisal and management will allow us to track and report each lot item by the following: (a) Inventory number (=ID Number) (b) Lot Number (once an item is assigned to a particular auction) (c) Auction Number (d) Class Number (e) Seller (f) Vendor (g) Auction date (h) High and low appraisal values (i) Reserves or minimum bids 0) Quantity in, sold and on hand (k) All other information on the attachment "Inventory File Maintenance" (3) The custom selection and reporting feature allows us to select and sort by another combination of these identifiers. (4) An additional important capability is the buyer history which we can access by any criteria we choose. Historical records are kept in the buyer history file which tell us the dates of attendance of each buyer in our system and how much they spentat_each auction. We can access the inventory history file and determine who the buyers of particular types of property have been thus identifying the most likely and readily available market. For instance, if we have an diamond of exceptional quality and size, we can search our historical inventory database for the buyers of diamonds of particular grade, size and clarity anywhere in the U.S. who have purchased similar stones from us in the past. If we have personalized items such as our infamous "OMAR" bracelet, we can search our mailing list for buyers whose first name is Omar. (5) Our client will receive complete, reconciled computer-generated reports after each auction. Lone Star Auctioneers will, at a minimum prepare and deliver to the designated representative of our client immediately upon the conclusion (within two hours after the fall of the gavel on the last item of the day) of each separate auction, the following Auction Summary reports in triplicate: City of Lubbock: RFP #98005/Auctioneer Services 07 of 140 5. Operating Procedures and Repom Lone Star Auctioneers, Inc. (a) an inventory printout by lot number with descriptions of all lots sold; (b) the actual sale price of each lot sold; (c) the sales tax collected for each lot and; (d) an unsold lot report which gives the lot number and full description of any lots remaining unsold. In addition, we will provide, in triplicate, a registered bidder list in buyer number sequence with complete name, company name, address, phone numbers, driver's license numbers, resale numbers and complete and payment information for each person who registered to bid. Also provided will be a buyer register with buyer number, invoice number, amount purchased, sales tax collected and total payments. Numerous other reports are available to our client at their request. All reports are reconciled, concise, accurate and easy to read thereby providing a detailed and thorough paper trail for complete accountability. A new feature of our program is its ability to export pre and post auction data into a spreadsheet format or comma delimited ASCII format onto floppy disk. This data includes inventory information, purchase and sales information, buyer information, and a host of other information. b. SAMPLE REPORTS • The reports in this section are arranged according to the Report Categories in the left column. • Specific report names which comply with contract specifications are given in the center. Numerous other reports are available, but only relevant ones are listed below. • Required reports (as named in the Request for Proposal) are given on the right. Cityof Lubbock: RFP #980D5/Auctioneer Services 08 of 140 5. Operating Procedures and Reports/Lone Star Auctioneers, Inc. REPORT CATEGORY Buyer Reports REPORT NAME Accounts Receivable Report Buyer Invoice Summary Report CITY'S REPORT REQUIREMENT (7) Buyer's Sales Print (Unpaid) - Summary Isee Attachment 101 (3) Buyer's Sales Print (Summary) Isee Attachment 101 Auction Status Reports Auction Status During auction - as required in section 26F) Following auction - as required in section 2(k) Isee Attachment 101 Miscellaneous Reports Custom Reports Spreadsheet Reports Percentage Return Report (8) Priced Inventory Recap (By Owner, by Category) Additional Reports & Computer Generated Buyer As required in Addendum #2 Computer Generated Forms Guides j Invoices in triplicate as required in section 2(I) Numerous reports may be generated from the information gathered from and about registered bidders as well as about buyers. The reports Lone Star most commonly utilizes are listed below: I. Buyer Quick Status Summary - During the auction; Quick report of purchases & payments 2. Buyer Activity Summary - One Iine summary report with purchases, premiums, taxes, payment, etc. 3. Buyer Purchase Listing - Listing of all lots purchased in buyer number order 4. Accounts Receivable Report - Buyer activity summary report for buyers with balances (samples follow) This report provides the information required by the specifications of the City of Lubbock's (7) BUYER'S SALES PRINT (UNPAID) - SUMM4RY. including.- a. ncluding.a. Auction Date b. Report Date c. Buyer's Number d. Buyer's Name e. Total Purchases f. Sales Tax City of Lubbock: RFP #98005/Auctioneer Services 09 of 140 S. operating Procedures and Reports/Lone Star Auctioneer. Inc. (6) Buyer's Sales Print (Paid) - Summary Isee Attachment 101 Buyer Number Report (4) Full Registration Print a) Buyers i Isee Attachment 101 b) Other bidders (S) Registration Print - Buyers Isee Attachment 101 Consignor (Seller) Reports Consignor Statements (2) Summary by Owner (Department) Isee Attachment 101 Lot Sales Reports Full Sales Report with All (1) Priced Inventory Report by Sale Lot Options Number Isce Attachment 101 Catalog Reports Clerking sheets Isee Attachment 101 Auction Catalog (see Attachment 141 Auction Status Reports Auction Status During auction - as required in section 26F) Following auction - as required in section 2(k) Isee Attachment 101 Miscellaneous Reports Custom Reports Spreadsheet Reports Percentage Return Report (8) Priced Inventory Recap (By Owner, by Category) Additional Reports & Computer Generated Buyer As required in Addendum #2 Computer Generated Forms Guides j Invoices in triplicate as required in section 2(I) Numerous reports may be generated from the information gathered from and about registered bidders as well as about buyers. The reports Lone Star most commonly utilizes are listed below: I. Buyer Quick Status Summary - During the auction; Quick report of purchases & payments 2. Buyer Activity Summary - One Iine summary report with purchases, premiums, taxes, payment, etc. 3. Buyer Purchase Listing - Listing of all lots purchased in buyer number order 4. Accounts Receivable Report - Buyer activity summary report for buyers with balances (samples follow) This report provides the information required by the specifications of the City of Lubbock's (7) BUYER'S SALES PRINT (UNPAID) - SUMM4RY. including.- a. ncluding.a. Auction Date b. Report Date c. Buyer's Number d. Buyer's Name e. Total Purchases f. Sales Tax City of Lubbock: RFP #98005/Auctioneer Services 09 of 140 S. operating Procedures and Reports/Lone Star Auctioneer. Inc. g. Total Due h. Deposits Received i. Refund Due j. Balance Due k. Total of Above Columns 5. Buyer Payment Report - Listing of all payments in buyer number or payment type order 6. Buyer Invoice Detail Report - Report of all invoices with detailed listings of all items on each invoice 7. Buyer Invoice Summary Report - Invoice report with One Line per Invoice in Buyer or Invoice Number Order (samples follow) This report provides the information: required by the (3) BUYER SALES PRINT (SUMMARY). including. a. Auction Date b. Report Date c. Total Purchases d. Sales Tax Collected e. Paid Purchases f. Total Paid, w/Sales Tax g. Deposits Toward Unpaid h. Sales Tax Not Collected i. Unpaid Purchases j. Non -Taxable Purchases specifications of the City of Lubbock's This report provides the information required by the specifications (6) BUYERS SALES PRINT (PAID) - SUMMAR 1including: k. Auction Date 1. Report Date m. Buyer's Number n. Buyer's Name o. Total Purchases p. Sales Tax q. Total Due r. Deposits Received s. Refund Due t. Balance Due u. Total of Abbve Colunnns of the City of Lubbock's 8. Buyer Number Report - Listing of registered buyers (two different formats) (samples follow) This report (when tun in one format) provides the information required by the specifications of the City of Lubbock's (4) FULL REGISTRATION PRINT. inchnding: a. Auction Date b. Report Date c. Bidder's Number d. Bidder's Name/Firm e. Bidder's Address f. Bank Name/Officer g. Driver's License Number/Tax Exempt Ntmnber h. Telephone Number i. Letter of Credit Limit Field j. Total Registration Number City of Lubbock: RFP #98005/Auctionccr Scrviccs 010 of 140 5. Operating Proccdures and Repors/Lone Star Auctioneer, Inc. This report (when run in the format which specifies buyers) provides the information required by the specifications of the City of Lubbock's (5) REGISTRATION PRINT - BUYERS including: k. Auction Date 1. Report Date m. Buyer's Registration Number n. Buyer's Name/Firm o. Buyer's Address p. Bank Name/Officer q. Driver's License Number/Tas Exempt Number r. Telephone Number s. Note Field for Letter of Credit Information t. Total Number of Buyers 9. Buyer Geographic Distribution - Geographic analysis of registered bidders by city, state and zip 10. There are an additional 2 reports available in this category, plus the capacity to generate a custom report with almost any specifications. NOTE: Please see Attachment 10 for copies of these reports. CONSIGNOR (SELLER) REPORTS. Consignors require various types of information about their lots in an auction, thus there must be flexibility in the reports available. Nine different types of Consignor Reports may be generated using this system. Those report types follow: 1. Consignor statements - Seller's commission statements (various formats) (samples follow) This report provides the information required by the specifications of the City of Lubbock's (2) .SUMMARYBYOWNER ('DEPARTMENT). including.- a. ncluding:a. Auction Date b. Report Date c. Owner (City) d. Category (Department) e. Book Value f. Percent (%) Return g. Total Dollars per Department h. Grand Total 2. Consignor Unsold Lot Report - Seller's unsold lots (sample follows) 3. Consignor Lot Report - Seller's lot listing 4. Consignor Number Report -Seller numerical listing 5. Consignor Sale Survey - Consignor no -sale analysis report 6. Consignor Expense Allocations - Allocate expenses among sellers 7. There are an additional 3 reports available in this category, plus the capacity to generate a custom report with almost any specifications. NOTE: Please see Attachment 10 for copies of these reports. LOT SALES REPORTS Thirteen different types of reports may be generated readily within this system. These reports produce a wide variety of information about lots, depending upon set criteria. Broad flexibility and reporting ease are important characteristic of these reports. 1. Unbilled Activity (Sold, Not Invoiced) - Report of lots sold where invoices have not been printed 2. Unsold Lots, Lot Number Order - Report of lots not sold City of Lubbock: RFP #98005/Auctioneer Services 011 of 140 S. Operating Procedures and Reports/Lone Star Auctioneers, Inc. (sample follows) 3. Short Lot Sales Listing - Lot number, quantity, price & extension 4. Full Lot Sales Listing - Lot number, quantity, price, extension, buyer & invoice number 5. Full Sales Report with all Options - Complete sales report including all Buyer & Seller information as requested. (samples follow) This report provides the information required by the specifications of the City of Lubbock's (1) PRICED INVENTORY REPORT BY SALE LOT NUMBER including: a. Auction Date b. Report Date c. Lot Number d. Buyer Number e. Description of item (complete, including serial numbers, model number, department equipment numbers and fixed asset numbers). f. Quantity of Item g. Sale of Item h. Sale Unit Total i. Grand Total of Sale 6. Lot Price Listing - 3, 4, or 5 column report with lot number & price only 7. There are an additional 7 reports available in this category, plus the capacity to generate a custom report with almost any specifications. NOTE: Please see Attachment 10 for copies of these reports. CATALOG REPORTS The ability to generate quick, easy lot listings for many different types of uses is critically important to Lone Star and its clients. Whether the listings are needed as Clerking sheets to record buyer number and sale prices or whether they are needed as catalogs for buyers, this system produces what is needed. Several report types which we use most often are as follows: 1. Multi -Column Catalogs - Single column catalogs with options Please see copies of catalogs included with Attachment 14. 2. Text Catalogs - 2 or 3 column catalog with options 3. Appraisal Sheets - Catalog with seller name & description 4. Selling/Clerking Sheets - Lot report based on lot type/class field (sample follows) 5. There are an additional 8 types of reports available in this category, plus the capacity to generate a custom report with almost any specifications. NOTE: Please see copies of reports on the following pages: These reports offer a quick on screen status of the auction at any desired point, providing almost instant information to answer questions of practically any sort. Status can be viewed according to the following criteria: 1. Reported by Auction 2. Reported by Buyer 3. Reported by Lot City of Lubbock: RFP #98005/Auctioneer Services 012 of 140 5.Operating Procedures and Reports/Lone Star Auctioneers, Inc. MISCELLANEOUS REPORTS Six different miscellaneous reports are available within this system. The one of these which Lone Star most commonly uses is as follows: 1. Expense Report - Report of expenses for the current auction (expense type or code order) 2. There are an additional 5 types of reports available in this category, plus the capacity to generate a custom report with almost any specifications. The ultimate flexibility of the reporting capacity of this software is that in addition to the reports built into the system, we can design our own reports as well. This offers almost limitless reporting capability. Complex reporting requirements can be met by generating a report using one of the standard reports discussed above, then transferring it into a spreadsheet. This allows additional calculations to be performed, offering the ability to calculate percentages, counts, continuous and automatic updates of calculations, etc. Two spreadsheet reports are included with the sample reports. These are as follows: 1. Management Reports (samples follow) 2: Percentage Return Report (sample follows) This report provides the information required by the specifications of the City of Lubbock's (8)PRI CEDIN:'I'NTORYRECAP (BY OWNER. BYCATEGORD including: a. Auction Date b. Report Date c. Lot Number d. Buyer's Number e. Description f. Book Value g. Percentage (%) Return h. Quantity i. Purchase Unit Price j. Purchase Unit Price Total k Grand Total By Owner (Buyer) 1. Buyer's Name NOTE: Please see Attachment 10 for copies of these reports. Additional Reports Computer Generated Buyer Guides As required in Addendum #2 [Please see Attachment 101 i. Invoices in triplicate - As soon as a buyer indicates that he/she is ready to pay for purchases, invoices will be printed in triplicate, in the order received from buyers. Invoices will include all lot items purchased by an individual buyer at any one time, and will indicate purchase prices, sales taxes (or resale or exempt status). As soon as invoices are printed, these will be provided to City staff, who will keep one copy and give two copies to the buyer. City of Lubbock: RFP 098005JAuctioneer services 013 of 140 5. Operating Procedures and RepormAne Star Auctioneers. lac. ................................ .::::A:::..................... .:: ...{ : i.: .: ::;: .. '` "::::•El.'*.'.'*. :::.: '•:::}. '.. ;. .:;::. .. :.:::: : ';: < :. } ::< ; ; ':::'':::. `%: ;' -a .: :::::::::::::::::::::::::::::: DTE IDD .....:.:::;: ?'?;?i ::::; <:ii is :. :i;.L:'' ':'•i ?i: i':i;:.:.> ::(:{.}:.: ai : ::.>:..:}}: 2.i}}>: ;• :, •.. .:.. ::::.:.: x::. w::: v: vnw:::;• x.�.:� .......}}:::•}:: r:: rr:::::::::. �::::::.: • m::::u::::::::::.}•�::t:??:::::::.}:}Lt2•i!}.{•}::........}j;: 10 12/98 .. v: n:::::v}:w::::: }• :{.}}:•::::i:•: i':::: x:::::.•.•:::::.•.•:::.v:: m: rc. n.... ... x::::::: x::::::::.: .... PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OFINFORMATION L T BARYON INSURANCE AGENCY ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTENDOR ALTER THE COVERAGE AFFORDED BY THE POLICIESBELOW. P O BOX 9320 COMPANIES AFFORDING COVERAGE FT WORTH TX 76147 COMPANY A CENTRAL MUTUAL INS GP INSURED COMPANY LONE STAR AUCTIONEER B UNDERWRITERS AT LLOYDS OF LOND COMPANY 2315 NORTH MAIN SUITE #300 c ADMIRAL INSURANCE COMPANY FT WORTH TX 76106-8573 COMPANY D :»:z:>::»>::>::>:z:•:>::>::>::;::si:;{;:>{•:s::>•:s �}:-}:-}:s-}:;•};.i;•i:•;;:.i:.ii:.}}:.:t.}:?:•}••}:•>:{<.}:•}}:{{.::::::>::::::::::.;: �:•:;•>�•:<•;:.i:.;:.;::.}:{.;:.}:.}:.}:.:;•i:.;}:.;;:.::.};:.i::.};:.::.;:.;}i:;•i:.}:•}:•};: �:{•::.}:{:.;:.}:}: �:;•::•::•}:.};:•;:;:.;;}::.:::. � :::.::::::::: -.. ...:.i:.it:.i:{•ic;•:;•}::.i•.::.ii:.:: �:•}:•}:.i:.}:•} •....... .. ...................... r. r....::..::...::::::.:::::::: r. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE O MMD/YY) POLICY EXPIRATIONLIMITS DATE p MMI)/YY) GENERAL LIABILITY CLP 7 4 5 6 5 6 8 6/01/98 6 01 99 GENERAL AGGREGATE s2,000,000 X COMMERCIAL GENERAL LIABILITY PRODUCTS - COMP/OP AGG $1,000,000 CLAIMS MADE OCCUR PERSONAL R ADV INJURY $1,000,000 OWNER'S do CONTRACTOR'S PROT EACH OCCURRENCE $1,000,000 FIRE DAMAGE (Arty one fire) s 50,000 MED EXP (Arty one person) s 5,000 AUTOMOBILE LIABn.ITY BAP 7 7 8 0 5 2 6 06 O 1 9 8 0 6 O 1 9 9 750,000 X ANY AUTO COMBINED SINGLE WMR $ BODILY INJURY $ (Per person) ALL OWNED AUTOS SCHEDULED AUTOS X X HIRED AUTOS NON -OWNED AUTOS BODILY INJURY s O er seddent) PROPERTY DAMAGE $ GARAGE LIABILITY RG5 7 7 2 -1 02/24/98 02 24 99 ALTO ONLY . EA ACCIDENT S OTHER THAN AUTO ONLY: ANY AUTO X GKLL/ 100,000 EACH ACCIDENT S X GKLL/ 3 0, 0 0 0 AGGREGATE $ EXCESS LIABILITY CX 5 7 8 7 9 0 5 8 06/01/98 06 01 99 EACH OCCURRENCE $1,000,000 X UMBRELLA FORM AGGREGATE $1,000,000 S OTHER THAN UMBRELLA FORM WORKERS COMPENSATION AND W C 7 8 9 9 4 010 2 06/01/98 06 01 99 "1 TRY LIMIUIS ER _ EL EACH ACCIDENT S 500,000 EMPLOYERS' LIABILITY EL DISEASE -POLICY LIMIT S 500,000 THE PROPRIETOR/ INCL PARTNERSAUMCUTIVE OFFICERS ARE: EXCL EL DISEASE -EA EMPLOYEE S 500,000 oT>IER A98PLO2065 05/15/98 65/15799 1,000,000 1,000,000 PROF LIABILITY DESCRIPTION OF OPERATIONS/I.00ATIONS/YEEQCLES/SPECIAL ITEMS CERTIFICATE HOLDER IS CONSIDERED AN ADDITIONAL INSURED WITH REFERENCE TO GEN LIABILITY AND AUTOMOBILE LIABILITY. A WAIVER OF SUBROGATION IS PROVIDED WITH REGARDS TO AUTOMOBILE LIABILITY, GEN. LIABILITY AND EMPLOYERS LIABILITY p MR ::..:. r: xr. r. r.... rxr.•r:: x:::.vJ.•: x}.•:: •. x:::::::•x: rnr•:::;.•.v: r:. �::::.:. v�:::: xv: {......::.:...:.......... ............ :...:.....:..... .... .......... ........ v: • w: •nx...............:........... •}:w:�^:•}:v}:• SHOULD ANY OF TSE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE TSE CITY OF LUBBOCK- EXPIRATION DATE THEREOF, TSE ISSUING COMPANY WILL ENDEAVOR TOIAI. ATTN : VICTOR KI LMAN, PURCH MGR 10 DAYS WRITTEN NOTICE TO TSE CERTIFICATE HOLDER NAMED TO Tmm, P.O. BOX 2000 BUT FAILURE TO MAI. SUCH NOTICE SHALL IMPOSE NO OBLIGATION ORIABILIfY LUBBOCK, TX 79457 OF ANY UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. 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