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HomeMy WebLinkAboutItem 06.hV If , September 4, 2014 Item No. APPROVE AGREEMENT WITH JMS AUCTIONS FOR CITY ASSET, BIKE, POLICE FORFEITURE AND HERITAGE DONATION ON-LINE AUCTION Proposed Action Staff recommends adoption of the following motion: Move to approve Agreement with JMS Auctions for the City Asset Bike Police Forfeiture and Heritage Donation On -Line Auction. Passage of this motion will result in contract approval with JMS Auctions, an independent auction company, who utilizes the K -Bid On -Line Auction Service, for the upcoming City Asset, Bike and Heritage Donation Auction. Overview Since 2009, the city has been conducting on-line auctions as a means in which to sell city assets. In 2010, we added a drop off day in which items could be donated to assist with the financing of the Heritage Center construction. Last year, we incorporated the Police Department's bike auction into the sale. On -Line auctions are an effective and efficient manner in which to sell items that have exceeded their useful life time, liquor store dealer loaders, bikes and police forfeited items. The return is much higher due to the volume of customers reached, and the labor is minimal compared to the other manners in which we used to sell items. Primary Issues to Consider • Were competitive bids sought for this service? • Why JMS Auction Services? • What items will be included in the sale? Supporting Information • JMS On -Line Auction Agreement Brenda Visnovec Liquor Operations Director Financial Impact: Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: STAFF ANALYSIS OF PRIMARY ISSUES • Were competitive bids sought for this service? On-line auctions have become very popular in the past decade with several sites conducting business within the State of Minnesota. We sought proposals from Auction Masters, JMS Auction Service and Bid 2 Buy. • Why JMS Auction Services? Bid 2 Buy did not provide a proposal. And while Auction Masters provided a lower bid by a 2% commission rate, we are confident that higher bids received with JMS Auction Services will offset, if not result in higher net revenue for the following reasons: o JMS utilizes K-Bid.com, the largest on-line auction site in the state. o The items will be set up as two auctions running simultaneously, with two different bid titles. Bikes, and city assets and donations. This will provide more views, targeting specific buyers. o This auction site has a much larger registered customer base. o They will photograph the majority of items in front of a drop cloth, providing better pictures of the items for sale. o The owner of the company is a Lakeville resident. • What items will be included in the sale? A resolution authorizing the sale of assets including an itemized list of city assets, bikes, police forfeited items and dealer loaders will be brought forward to the October 6th City Council Meeting for approval. JMS Auctions Consignment Agreement The person/company whose signature is on this consignment agreement (consignor) is verifying: e They are the legal owner of the assets listed in this agreement. o They have the right to sell these assets and that the assets were not used as collateral on any outstanding debt. • They have the right to receive all the proceeds from the sale of those assets. The consignor understands: Y This agreement is being made with JMS Auctions, an independent auction company, who utilizes K B1D.com as our venue for presenting auctions. K -BID Is not a party to this agreement. 0 They are prohibited from placing bids on their own assets. • They are selling their assets without reserve (unless noted in asset list) and will be sold to the highest bidder. 0 They will be charged a fee (as noted below) for assets resulting in a 'No Sale' due to their reserve not being met. • Assets not meeting the reserve cannot be relisted on a future auction unless the asset is posted without reserve, or the new reserve is below the last actual bid received on the asset. o Proceeds from the sale of the assets will be paid 2 weeks after the close of the auction. Any assets resulting in a 'No Sale' either due to a non -redeeming bidder or an unmet reserve remain the property of the consignor. Commission Rate: 15 % Additional Terms: Seller to assemble & organize items, Seller to supply 2 helpers for inspection period & 4 helpers for removal period Please Refer To Attached Auction Proposal Description Of Assets Reserve Amount Reserve Not Met Fee Various Collectibles from Liquor Store Operations NA NA Assorted Office Equipment From Various departments Approx. 65 _Bicycles Unknown Donated Items Computers and electronics Small tools auto partsand sho /maintenence a ui ment Consignor Name & Address: (please print) Company Name & Address: City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044ir,. V; Phone Numbers: Cell opt , OfficellSa '`SSS'^4c(©1 Home 1 understand and agree to all the terms and conditions. Consignors Signature Date JMS Auctions---�� 11235 Deuce Road - Elko, MN 55020 612.508.5012 JMS Auction Proposal Ms. Brenda Visnovec City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 We would charge 15 % commission on total sales. (No per lot fee) We would host a separate auction for the bicycles. (All dates would be the same) Auctions to be hosted by K-bid.com We will provide lotting, (each lot has its own tag & number), photographs, catalog & collections We post auctions for approx. 2 weeks. (2 full weekends) We host a public inspection day. We handle all collection issues. Settlement is completed 2 weeks after auction closes. All costs (commissions) are deducted from settlement, No upfront costs. Possible schedule of events: Week of 9/21/14 Drop Off Day, Organization, & Assembly by City of Lakeville Week of 9/27/14: Lotting, Photographs, & Catalog Week of 10/5/14 Post Auction 10/18/14 & 10/22/14: Public Inspection (2 helpers provided by city) 10/23/14 Auction Closes 10/25/14 Auction Removal (4 helpers provided by city) 11/6/14: Auction Settlement This schedule of events is flexible & is subject to change. We can lock in these dates when auction contract is signed. Thank You, Jim Maxa JMS Auctions 11236 Deuce Road Elko, MN 55020 612.508.5012