Explanation
BACKGROUND: For the option to purchase On-Line Surplus Auction Services for use by the City of Columbus. The term of the proposed option contract would be through March 31, 2009.
Columbus City Code Chapter 329, Section 329.30 provides for the sale of city-owned personal property. Based on this Section, the City Finance & Management Director may choose to sell surplus property via on-line auction. The Purchasing Office conducted research regarding on-line auctions and has determined that the use of this type of sale is in the best interests of the City. This replaces a similar contract authorized by Ordinance #0356-2004 which produced positive results and expired.
The Purchasing Office recommends a contract be established based on a State of Ohio Cooperative contract (GDC042Z) currently in place for on-line auction services. The Office of State Purchasing advertised a competitive bid for on-line auction services. They reviewed and evaluated resulting proposals and awarded the contract to Asset Auctions, LLC for the term beginning May 18, 2007 and ending March 31, 2009.
The Purchasing Office has conducted negotiations with Asset Auctions LLC in order to establish an agreement for similar services on behalf of the City of Columbus. The agreement term corresponds with the State of Ohio contract. The contract with Asset Auctions LLC is not exclusive. Therefore, the City is not precluded from requesting auction services from other providers on a given sale.
The Purchasing Office is recommending award of an option contract for on-line auction services to:
Asset Auctions LLC - CC# 260057879 Expires October 21, 2010
Estimated Annual Expenditure: Asset Auctions LLC will charge the bidder a buyer's premium of 5.7%, a revenue share fee for the State of Ohio DAS of .75% and may charge the City a fee of $250.00 for on site assistance if such assistance is needed and requested.
The company is not debarred according to the Excluded Party Listing System of the Federal Government. This ordinance is being submitted as an emergency because, without emergency action, no less than 37 days will be added to this procurement cycle and the efficient delivery of valuable public services will be slowed.
FISCAL IMPACT: Funding to establish this option contract is budgeted in the Purchasing Contract Account. The City agency that successfully sells an item at auction will be required to fund the auction services from the proceeds of the sale. In the event the fee exceeds $100,000 on a given auction, the City agency will be required to obtain approval to expend from their own appropriations for their estimated expenditure.
Title
To authorize and direct the Finance & Management Director to enter into a contract for an option to purchase On-Line Auction Services with Asset Auctions LLC, to authorize the expenditure of one dollar to establish the contract from the Purchasing/Contract Operation Fund, and to declare an emergency. ($1.00)
Body
WHEREAS, the City Finance & Management Director is authorized to sell city-owned surplus property to the highest bidder; and
WHEREAS, City Ordinance #582-1987 authorizes and directs the Purchasing Office to participate in State Of Ohio Cooperative Purchasing contracts; and
WHEREAS, the State of Ohio established a Cooperative Purchasing contract with Asset Auctions, LLC for on-line auction services. and
WHEREAS, this ordinance addresses the Purchasing Office objective of maximizing the use of City resources by selling surplus at the highest prices; and
WHEREAS, the City has an immediate need to sell surplus City owned personal-property, enhance revenue and fee space required for City use; and
WHEREAS, an emergency exists in the usual daily operation of the Purchasing Office in that it is immediately necessary to enter into a contract for an option to purchase On-Line Auction Services, thereby preserving the public health, peace, property, safety, and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance & Management Director be and is hereby authorized and directed to enter into a contract for an option to purchase on-line auction services with Asset Auctions LLC
SECTION 2. That the appropriation and expenditure of $1.00 is hereby authorized from Purchasing UTC Account, Organization Level 1: 45-01, Fund: 05-517, Object Level 3: 2270, OCA: 451130, to pay the cost thereof.
SECTION 3. That for the reason stated in the preamble here to, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.