Loading...
HomeMy WebLinkAboutContract 38742CITY SECRETARY CONTRACT No Proposal From: For: Auction Services for Property Room Items www.LoneStarAuctioneers.com www.LoneStarOnline.com PHONE (817) 740-9400 FAX (817) 740-9777 06-23-09 A09:37 IN 2417 ONLINE PROPOSAL Lone Star Auctioneers, Inc. for City of Fort Worth We are pleased UOUubmit this proposal for online auctioneering services to the City of Fort Worth. The five primary project team members who will conduct, supervise, monitor and close the online auctions for this engagement are: 1. Paula Hooper Project Manager for Online Auctions 2. Kathi Clark Web site Administrator 3. Jayne Sullivan Auction Administrator for Online Auctions 4. Ella Robertson Accounting Supervisor 5. Chanse Awtrey Warehouse Supervisor These same individuals will provide all phases of implementation and training for the City for any participation you may care to involve yourselves with. Their workload is such that they can fulfill all duties and responsibilities associated with accepting the City as a new client. 24/7 Online Auctions To complete our implementation of the City's online auctions, our Web site Administrator will create an account, a user category, unique user name and password, email contacts and seller profile for the City. Once Lone Star is given the order to proceed, there are a few simple implementation tasks for the City to accomplish: For implementation, the City will need to: 1. Designate an Auction Administrator who will be our contact to coordinate and direct the implementation of auctions; 2. Assign duties and responsibilities for designating items that you wish to sell; 3. Identify the tracking, accounting and reporting requirements on a General Fund, Departmental, or other accounting basis with which we are to comply; 4. Proof and approve auction links for items before we post them to the public. Lone Star personnel will be available to assist the City in any of the aforementioned tasks, as needed. The above will be easy, straightforward and based on existing Police Department policies and procedures. Our job will be to help you meld your existing operation into Lone Star's 24/7 online auctions as easily and seamlessly as possible. In the past twenty five years, we have conducted thousands upon thousands of auctions for city, county, state, federal and non-profit entities selling vehicles, heavy equipment, seized and abandoned property and other surplus property. This experience will work to the benefit of the City. The only other implementation to be done is for Lone Star to activate,the City as a seller on our Web site; a task that takes about fifteen minutes. Procedures ❖ The Property Room Administrator shall call Lone Star's Warehouse Supervisor to make arrangements for a mutually agreeable time and date for pickup of auction items; ❖ We will maintain an adequate "chain of custody" throughout the auction process in accordance with Lone Star Auctioneers' written chain of custody procedures on file in company headquarters; ❖ We will pick up the property room items you have designated for auction and bring them to our secure --wareho.use;.. ❖ We will _assi n the items into lots based on our 25 years of experience, subject to your approval; MY SECRETARY Ta WORTH9 F We will have a professional appraiser authenticate and provide a fair market value for any "High Value" items such as Rolex watches, loose Gemstones and Jewelry that may be of significant value or any items of possible significant value; We will take digital photos of the items; We will provide descriptions based on what is evident and on any information you may provide us; We will provide the excel spreadsheet as needed for uploading onto our software; We will send the City links to each auction item for your approval; We will list the items on our proprietary Web site, www.LoneStarOnline.com, with a featured "logo link" on our main Web site: www.LoneStarAuctioneers.com; We will coordinate auction dates, preview dates and removal dates with your auction administrator; We will advertise as appropriate and mutually agreed between the City and the Auctioneer; We will send out e-mail notifications as appropriate; We will collect payments; We will collect applicable taxes and submit them to the Comptroller of Public Accounts on a timely basis; o We will attempt to contact the backup bidder in the event an item is not paid for; We will re -list any unsold or unpaid for items at no extra cost to the City; We will provide a full accounting of the auction items and proceeds and provide this information to the City; We will track buyer history, i.e. any buyer who does not pay will be banned from ever bidding again at any Lone Star auction; We will dispose of any items that have been listed twice and received no bids and provide this "Junk Disposal List" to the City. Any proceeds from this disposal method will be shared on the commission basis provided in this proposal. Support Services • Lone Star Auctioneers will provide unlimited customer and technical support to the City throughout the duration of this contract; • We will provide unlimited customer service to buyers, bidders and the general public for the City online auctions through our toll -free number; • We will provide cellular numbers for the Project Manager and officers of Lone Star Auctioneers for emergency contact; We will continue to provide a state-of-the-art, user friendly, eBay emulation software with advanced user features; • We will provide 24/7 technical support for the server by the program specialists; • We will provide free periodic seamless software and hardware upgrades for the duration of this contract without interruption of service; • Lone Star will assist the City in developing reserve bids on specific items of value and will determine starting prices for City surplus based on our extensive experience; We will advertise in local newspapers and weekly publications to increase our market for miscellaneous surplus; • We will collect all funds within three business days of the closing of the online auctions; • This pilot contract shall be for a period of four (4) months. Either party may terminate this agreement with thirty (30) days notice. • Lone Star Auctioneers will specify in its terms and conditions that City of Fort Worth employees are prohibited from bidding on any items belonging to the City of Fort Worth. No Cost Items Lone Star Auctioneers will perform all of the services above for the proposed commission rates detailed in the Pricing paragraph of this agreement. The follo�r�ing is a list of additional services and features, �^�hich �::e ;^.ill provide at no cost under this contract: ✓ Advertising. Lone Star Auctioneers will bear all costs of any advertising we do; ✓ Full-time, business hours telephone customer and technical support for the City and the general public via our local, metro and toll -free numbers; ✓ City -specific local advertising and promotion to increase awareness of the online auction program; ✓ Benefits of frequent national advertising campaigns for other clients with seized and forfeited property; ✓ Interactive Web sites that receive 30 to 40 million hits per month; ----- — ✓ National geographic distribution of 45,000 plus registered buyers; Up ✓ Up to four irnages per lot to display multiple aspects of each lot on the internet; ✓ 24/7 technical support for hardware and software; SARY F5'. WOWNf'Y 2 ✓ Ability to block banned or sanctioned bidders. A no pay, no return policy works especially well for Lone Star clients; ✓ Unlimited access to the inquiry and search features for partial service auctions; and ✓ Generate revenues exceeding historical results. Hardware and Software Configurations of LoneStarOnline.com The following hardware and software are completely owned by Lone Star Auctioneers, Inc. The first server is a new dedicated server and the second server was our operating server. The two servers work in tandem, one controlling the operating software and the other the SQL database. • Dell PowerEdge 2950 Rackmount Server • Dual Intel Xeon 2.33GHz / 8MB / 1333MHz FSB Quad Core Processors • 16GB 667MHz ECC Fully Buffered Memory • 2 x 3.5❑inch 73G6 10K SAS Hard Drives • 4 x 3.5❑inch 300GB 15K SAS Hard Drives • Dell Perc5i Dual Channel Raid Controller • Dual On❑Board 10/100/1000 NIC's • DVD ROM • Redundant Power Supplies • (2) Extra Hard Drives for Failover • Microsoft Windows Server 2003 Standard Edition R2 64❑Bit OEM with 5/Gals ❑Installed with Media • Dell PowerEdge 2950 Rapid/Versa Rails • Coldfusion 8 Enterprise Edition This unit will mirror to our: • Dell PowerEdge 2800 Rackmount Server • Dual Intel Xeon 2.8GHz / 8MB / 1333MHz FSB Quad Core Processors • 2GB 400MHz Memory • 6 73GB 10K SCSI Hard Drives • Dell Perc5i Dual Channel Raid Controller • Dual On -Board 10/100/1000 NIC's • DVD ROM • Redundant Power Supplies • (2) Extra Hard Drives for Failover • Microsoft Windows Server 2003 Standard Edition R2 64 Bit OEM with 5/Gals Installed with Media • Coldfusion 8 Enterprise Edition • 320 GB 7200 rpm Dual -option Backup Combo External Hard Drive Each server has redundant Dual Xeon processors, power supplies, and the Raid 5 configuration will allow a hard drive failure without interrupting the auction process or losing data. Should one server go down completely, the other will be able to continue the operation of the online auctions. All hardware and software are housed in astate-of-the-art data center which is served by a backup generator capable of powering the entire data center in the event of a complete power outage. There are three separate independent internet trunks serving the data center from three different major U.S. cities. These are tied directly into the Internet source and are not served by ISP resellers. We have the following bandwidth and support available at all times: • 400 GB of Bandwidth per month with no cap throughput ; - __s • 4U of space in our data center cabinet �� ®��iCiAL�EC®F2D� • Managing of server updates ������X , • Managing of software updates • Daily backup of files �o�®,� We believe Lone Star Auctioneers is uniquely qualified to provide the City the best value and highest net return on investment through Internet sales based on: 3 • Our existing contracts and experience with the City of Fort Worth and other local entities; • Large local base of buyers for Fort Worth, Dallas, Irving, Lewisville and other police property room merchandise developed over the last 25 years; • Lone Star's high Web site traffic (currently averaging thirty to forty million hits per month); • The high prices we achieve for our clients on a regular basis for surplus vehicles, heavy equipment, FF&E and unclaimed/recovered property; • The quality of our 24/7 online auction clients, which include the United States Marshals Service, the State of Texas, and numerous cities, counties, schools and universities draws traffic to our site through links from their respective sites; • The volume of goods we post for our regular online clients on our site; • The dedication Lone Star makes to state of the art technology in hardware and software; • The quality and availability of the client, customer and technical support we provide; and • The size of our full-time staff who are dedicated to training, supporting and running our online auctions including a Project Manager for Online auctions, a Web site Administrator, an Online Auction Administrator and an Accounting Administrator of Online auctions and a warehouse property supervisor. Pricing The commission rate for this plan will be a flat 50% of collected sales. We will not charge a Buyer's Premium. Commissions and appraisal fees will be deducted* from the gross sales collected from the buyers. The commission stated above will apply to all items regardless of size or value. For special items such as Rolex or Audemars watches et al., loose diamonds or jewelry (excluding obvious costume jewelry) and other "High Value Assets" Lone Star Auctioneers will, at the request of the City, secure the services of a professional appraiser to authenticate the item and provide a liquidation value. Lone Star will request pre -approval for any and all appraisals of merchandise under this contract prior to making arrangements with any appraiser. The pre -approved appraisal fees will be deducted from the auction proceeds. Net proceeds to the City (Gross Sales less commission and appraisal fees) will be sent via Company Check or Wire Transfer to the City of Fort Worth along with a set of reconciled computer -generated reports no later than five (5) business days after the deadline for collection of payments from bidders. *There will be no other costs to the City other than those listed above. There will be no cost for advertising, no hosting fees, no fuel surcharge, no credit card transactions, no banking fees, processing, or any other hidden fee. Unpaid items will be re -listed, and bidders who do not pay will be banned from future bidding. Thank you for this opportunity to offer our services to the City. We commit that Lone Star Auctioneers and our staff will provide easy, state-of-the-art online auction services with unparalleled service and results. Lone Star will perform all of the services described in the above proposal at the stated commission rates with our best effort and good faith. We will maintain statutory Workman's Comprehensive Coverage, a $500,000 Comprehensive Crime Policy (Forms A and C), $300,000 Professional Liability/Errors and Omissions coverage and General and Automobile liability in high limits with a $5,000,000 Umbrella Policy. PROHIBITED FROM PURCHASING: All City of Fort Worth employees are prohibited from participating from purchasing any property posted for sale under this agreement. �' `� � � `i a Q Following are the General Terms for a Lone Star Auctioneers' 24/7 Online Auction: GENERAL TERMS: All persons desiring to bid must be registered prior to the auction and must have obtained a Bidder's Number. Lone Star Auctioneers, Inc., herein after referred to as the Auctioneer, reserves the right to add to or withdraw from the auction any items listed or not listed, to group individual lots into larger lots for sale, to subdivide lots into smaller lots forsake, or to sell all lots in bulk when it is in the best interest of the Seller. Changes to or additional terms and conditions, additions or deletions may be announced by the Auctioneer before ordering the course of the auction. Lone Star Auctioneers, Inc. neither conducts an appraisal nor has any association with the appraiser for our auctions. The Auctioneer has no control over the appraisal contract, and cannot warrant, stand behind or guarantee information contained in the appraisal. All items are sold AS IS, WHERE IS with no warranty, expressed or implied. The Auctioneer shall not be responsible for the correct description, authenticity, genuineness, or defect in any lot and makes no warranty in connection therewith. No allowance, refund or set aside will be made on account of any incorrectness, error in cataloging, imperfection, defect or damage. Any descriptions or representations are for identification purposes only and are not to be construed as a warranty of any type. It is the responsibility of the Buyer to have inspected thoroughly the merchandise and to have satisfied himself or herself as to its condition and value and to bid based upon that judgment solely. Settlement must be made in full immediately upon the completion of the auction by cash, Cashier's Check or check accompanied by a current original Bank Letter of Guarantee (to be presented upon registration). Seller shall retain full security interest in all merchandise until full and complete payment is made to Seller or Lone Star Auctioneers, Inc. Shipping, handling, insurance, storage and security charges will be calculated and paid at the time of payment at the auction. Credit cards and Checks without a Bank Letter will have a 2.5% ��non-compliance" fee added to the total sales price. Merchandise not paid for and removed within the specified time period may be resold without notice. All descriptions of items for sale contained herein or provided orally or in writing at the time of the auction are believed to be correct, but the Auctioneer makes no representation or warranty, express or implied, as to the accuracy of any such description, and hereby specifically disclaims any such warranty. Likewise, the description of an article as a diamond or other gem or the description of an article as being of a particular brand does not constitute any representation or warranty that the article is as described. The Buyer hereby agrees to rely solely on his/her own expertise to determine the value of any item purchased rather than the description of any article contained in the catalog or announced by the Auctioneer. The Buyer agrees that the act of submitting a bid shall constitute acceptance of each and every term and condition contained herein and of any additional terms and conditions which may be posted at the auction or which may be announced by the Auctioneer. The Buyer agrees that in any dispute between the Seller and the Buyer or between competing bidders arising in connection with any sale at the auction, the Auctioneer shall have the right but not the obligation to settle such dispute, and the Buyer shall abide by the decision of the Auctioneer, whose decision shall be final with respect to such matter. The Buyer further agrees to indemnify the Auctioneer for all liabilities, damages, costs, and expenses including attorneys fees incurred in connection with any such dispute or in connection with any claim, litigation, controversy, dispute or proceeding arising from any purchase of an article by the Buyer or from any subsequent sale of such article to any third party. The Buyer agrees that any and all disputes arising from this auction will be resol,vec� p�e�.y� binding arbitration in Tarrant County, Texas. i v����Vl,��t-�l���ii ��'�9(§ECRETARY �°f'. �RTH, � S CONTRACT FOR SERVICES This Agreement for Auction Services is hereby made on this 6th day of July, 2009 by and between: Citv of Fort Worth, hereinafter referred to as SELLER and LONE STAR AUCTIONEERS, INC., hereinafter referred to as AUCTIONEER. This Agreement along with any attachments that may be executed such as lists of property to be sold, lien information etc, constitutes the entire agreement between the parties. This agreement and the rights hereunder may not be assigned to third parties without mutual consent between the two parties that originated this agreement. SELLER hereby grants to the AUCTIONEER the authority to sell and to execute bills of sale and other documents of conveyance for the property which is to be sold online at www.LoneStarOnline.com located at: 2334 Franklin St., Fort Worth, TX 76106 (warehouse adjacent to Lone Star Headouarters. Said property includes but is not limited to: Abandoned, seized and forfeited personal property. SELLER agrees to sell without minimum and without reserve* all property covered under this AGREEMENT that receives a bid at the starting price determined by the AUCTIONEER. "All items will be sold to the highest bidder. AUCTIONEER will email auction notifications to buyers on its email list as needed and will advertise the auction in the appropriate newspapers as needed and will list the items on its dedicated 24/7 auction site: www.LoneStarOnline.com. AUCTIONEER will bear all costs of advertising. There will be no hidden expenses charged to the SELLER. All property is being sold "As, is —Where is" in its present condition and location without warranty or guarantee, written or implied, and without refunds and according to the Terms and Conditions set forth by the AUCTIONEER. The auction will be scheduled to begin at a time mutually agreeable to both parties and will run online for a period of time determined by mutual agreement. AUCTIONEER will use its experience to make recommendations for the starting date and length of auction. Auctioneer will pick up items and transport them at Auctioneer's expense and as mutual schedules allow. All items are to remain in the Auctioneer's possession during the online bidding. Removal of items sold is to be completed by or on a dates) mutually agreed upon by both parties. All dates are subject to change by mutual agreement between SELLER and AUCTIONEER. Transportation of items will be provided by AUCTIONEER. Digital photos of items to be sold along with a spreadsheet will be provided by the: AUCTIONEER. Preview date(s), if any, will be scheduled by mutual agreement and staffed by the: AUCTIONEER. Checkout and Removal will be staffed by the: AUCTIONEER. Upon execution of this agreement a trial period of four months shall exist. Standard Payment terms for the auction will be: Cash, Cashier's Check, Money Orders, Traveler's Checks, and Checks accompanied by an irrevocable BANK LETTER OF GUARANTEE addressed to the AUCTIONEER. Checks accepted become the responsibility of the AUCTIONEER. Alternative payment methods such as Credit Cards and Wire Transfer may be accepted at AUCTIONEER'S discretion. All items will remain the property of and in possession of the AUCTIONEER until the purchaser has made full -and -complete payment. Any and all items for which payment has not been received will remain the property of the SELLER and may or may not, by mutual consent, be re -listed at a future date. (Commission is based on "Collected" receipts.) Items which do not receive bids will be disposed of and a list of those items provided to the City. Bidders who do not pay for their bids will be banned from future bidding at all auctions, whether live, webcast or online. SELLER agrees the AUCTIONEER will deduct a commission of 50 %and any pre -approved appraisal costs from the Gross "Collected" Sales Receipts realized from the sale of the property. AUCTIONEER agrees to remit fully and timely all sales tax due the Texas State Comptroller's Office from the sale of taxable items. AUCTIONEER agrees to remit to the SELLER the net proceeds of the auction sale (Gross Receipts less Commission, approved appraisal fees, and Applicable Taxes), via certified funds no later than five (5) banking days following the completion of payment by the buyers. AUCTIONEER will mail all reconciled, computer -generated reports to the SELLER, detailing the sale and accounting for all Gross Receipts, Commissions and Taxes as applicable. By signing this Agreement, the SELLER covenants and agrees that they have good title to and/or have the right to sell all items covered by this agreement and that all said goods are free from any and all encumbrances unless otherwise noted by attachment. Any dispute arising from any aspect of performance under this agreement will be submitted for resolution in Tarrant County, Texas in accordance with the laws of the State of Texas. [THE REMAINDER OF THIS PAGE LEFT BLANK] M�` 1 CITY OF FORT WORTH c%%'� . Tom Higgins Assistant City Manager LONE STAR AUCTINEERS, INC. Marilyn K. �'urgess President/C.E.O. Date: ���9��9 Date: �� �� S ATTEST: r v v � City Secretary APPROVED AS TO FORM AND LEGALITY Monica Wofford Date: � � � , 2z�� � iVO h�6&f: �tv�UIR1VD M&C i m Contract Number ��FICI�L RECORD C611f SECRETi�aY �T. VI90RTH, TX