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.
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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
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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
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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.
AUTH REPRESENTAT�
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