TITLE
Recommendation to adopt Specifications No. PA-01306 and award a contract to Ken Porter Auctions, for auctioneering services for the period of one year, with the option of renewing for four additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
Council approval is being requested to enter into a Citywide contract for auctioneering
services. Per City policies and procedures, the City is authorized to dispose of surplus City
assets by public auction. The Public Works, Water and Harbor departments regularly
dispose of surplus vehicles and equipment by this method. City-owned vehicles and
equipment may be identified as surplus when they have reached or exceeded their useful
life expectancy, or if they are no longer needed to provide City services. Vehicle
retirements are evaluated through the City's multi-year vehicle replacement plan.
Under this auctioneering contract, bidders pay a 10 percent buyer's fee directly to the
auctioneer, who then rebates a percentage of the revenue to the City, in addition to the bid
price. The percentage rebate, which ranges from I to 4 percent, is based on a sliding
scale, and varies with the amount of the individual sale.
On May 8, 2006, eight potential bidders specializing in auctioneering services were notified;
none are Women-owned Business Enterprises (WBEs), one is a Minority-owned Business
Enterprise (MBE), none are Long Beach businesses. The bid was advertised on May IO,
2006. The bid document was made available from the Purchasing Division located on the
announcement was also included in the Purchasing Division's weekly update on Open Bid
Opportunities, which is sent to 32 local, minority and women's business groups. Bids were
opened on May 25, 2006. Ken Porter Auctions of North Hollywood, CA, is the highest
revenue bidder.
This matter was reviewed by Senior Deputy City Attorney Donna F. Gwin on May 4, 2006
and Budget Management Officer David Wodynski on June 12, 2006.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. PA-01306 and award the contract
concurrently is requested on June 20, 2006 to ensure that the needs of the City are met in
a timely manner.
FISCAL IMPACT
It is anticipated that approximately $325,000 in annual revenue will be realized to the Fleet
Fund (IS 386) in the Department of Public Works (PW), Harbor Fund (HR 430) and Water
Fund (ES 310
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL A. KILLEBREW
DIRECTOR OF FINANCIAL MANAGEMENT
CHRISTINE F. ANDERSEN |
APPROVED: |
DIRECTOR OF PUBLIC WORKS |
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GERALD R. MILLER |
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CITY MANAGER |