HomeMy WebLinkAboutIR 7675 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7675
January 26, 1993
To the Mayor and Members of the City Council
Subject:
SURPLUS EQUIPMENT AUCTION NOVEMBER 14, 1992
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The following information is provided regarding the auction of surplus city
equipment conducted by Miller & Miller/Rene Bates Joint Venture on November
14, 1992. As you are aware, this was the first auction conducted by this
group. Previous auctions have been conducted by Lone Star Auctioneers.
Total revenue received from the November 14, 1992 auction was $136,902. A
summary comparing this auction with previous auctions conducted over the last
three years is as follows:
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November 1992
184 lots* including 72 rolling stock, 25 dead-lined stock and 87 pallets of
obsolete parts and junk. TOTAL REVENUE: $136,902
Auctioneer: Miller & Miller/Bates
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June 1991
251 lots including 143 rolling stock, 37 off-road and dead-lined stock and 71
pallets of obsolete parts and junk. TOTAL REVENUE: $428,157
Auctioneer: Lone Star
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September 1990
129 lots including 101 rolling stock, 4 dead-lined stock and 24 pallets of
obsolete parts and junk. TOTAL REVENUE: $217,735
Auctioneer: Lone star
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May 1990
210 lots including 178 rolling stock, 27 dead-lined stock and 1 pallet of
obsolete parts and junk. TOTAL REVENUE: $570,840
Auctioneer: Lone Star
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*A lot is one item, a number of units of an article offered as one item, or
a group of articles offered as one item in an auction sale.
Note that this information is somewhat different than the information
provided to the city council on January 12 by Lone Star Auctioneers which
compared proceeds on an annual basis with no consideration given to the
number of auctions held during a particular year, the number of pieces of
equipment for sale, or the kind of equipment or the condition of the
equipment. The following attempts to clarify the information provided by
Lone Star Auctioneers. Auction proceeds actually realized by the city may be
different from that indicated by Lone Star Auctioneers because other entities
such as the Fort Worth Transportation Authority may have participated with
the city in the auction.
1992: Lone Star Auctioneers correctly indicated that auction
proceeds totalled $136,902. Miller & Miller/Rene Bates Joint
Venture conducted one auction and 184 lots were sold.
1991: Lone Star Auctioneers indicated that auction proceeds
totalled $441,962. Proceeds to the city actually totalled
$428,157. Lone star Auctioneers conducted one au l .
lots were sold. T I ff O-RD
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ISSUED BY THE CITY MANAGER A T "11TU
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7675
CyJJUE NO January 26, 1993
To the Mayor and Members of the City Council Page 2 of 2
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Subject: SURPLUS EQUIPMENT AUCTION - NOVEMBER 14, 1992
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1990: Lone Star Auctioneers correctly indicated that auction
proceeds totalled $788,575. Lone star Auctioneers conducted two
auctions and 339 lots were sold.
1989: Lone Star Auctioneers indicated that auction proceeds
totalled $490,545. Proceeds to the city actually totalled
$429,120. Lone star Auctioneers conducted two auctions and 312
lots were sold.
1988: Lone star Auctioneers correctly indicated that auction
proceeds totalled $727,237. Lone star Auctioneers conducted two
auctions and 367 lots were sold.
1987: Lone star Auctioneers indicated that auction proceeds
totalled $447,407. Proceeds to the city actually totalled
$429,457. Lone star Auctioneers conducted one auction and 164
lots were sold.
1986: Auction proceeds to the city totalled $383,560. Rene
Bates conducted one auction and 231 lots were sold.
Generally, staff believes that the November 1992 auction was not well
attended by buyers who are usually interested in the vehicles and equipment
the city has for sale. Bids for refuse trucks and dump trucks were
particularly disappointing in that they were not higher and there were not
more bidders and more competition. surplus refuse trucks were not as old as
they have been in the past and brought about $1,700 in the November 1992
auction compared to $5,000 in 1991 and $7,750 in 1990. surplus dump trucks
were approximately the same age as they have been in the past but brought
about $1,700 in the November 1992 auction compared to $3,775 in 1991 and
$4,150 in 1990.
These concerns have been expressed to the joint venture contractor. However,
just how much of the lower than projected proceeds can be attributed to the
efforts of the contractor and how much can be attributed to such factors as
the economy and the age of the equipment is questionable. The next auction
is scheduled for June 1993. staff is currently studying the idea of
soliciting sealed bids an some equipment during this auction.
Additional information can be provided upon request.
eb� Terrell �
city manager
OFFICIAL RECORD
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Cffy SECRETARY
WORTH, TEX.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS