Title
Bid No. 2021-005 - Annual Contract for Internet Auctioning Services.
(Staff recommends award to Rene’ Bates Auctioneers, Inc., through BuyBoard Contract No. 620-20, sponsored by the Texas Association of School Boards, for a commission of 7.5 percent of gross sales. The term of this contract is for one year, with two additional one-year renewal options. The City Manager is authorized to exercise the renewal options, subject to annual appropriation of sufficient funds.)
Body
Name of Department
Finance
Project/Budgeted Amount
Varies
Sum of Bid/Bid Amount
Varies
State law does not regulate how cities dispose of property that has outlived its useful life, and with very few exceptions, the donation of City property is not permitted by the Texas Constitution. The disposition of property is outlined in the City’s Purchasing Manual and surplus property, confiscated property and abandoned vehicles are sold either online or at competitive auctions open to the public.
The City began using Rene’ Bates Auctioneers, Inc. in 2003. Through the online auction process, Rene’ Bates Auctioneers, Inc., will charge the City a commission rate of 7.5 percent for online auction services. The online auctions have been successful and have provided the City with more exposure for the disposal of surplus and confiscated property. In Fiscal Year 2019, the City had gross sales of $218,213.28 and a commission to Rene’ Bates Auctioneers of $16,366.00.
Financial Implications
Funding will be received from gross sales at a commission rate of 7.5 percent for online auctions disposing surplus and confiscated property.
Recommended/Desired Action
Staff recommends award to Rene’ Bates Auctioneers, Inc.
Drafter
Ryan Williams
Head of Department
Cindy Smith