AGENDA MEMORANDUM

 

 

Meeting Date:           January 22, 2007

 

From:                          Mike Thornton, Purchasing Manager

 

Subject:                      Resolution authorizing  an agreement with GovDeals, Inc. to provide a means by which the City of Leesburg can conduct on-line Internet auction sales of surplus property.

 

 

Staff Recommendation:

Staff recommends adoption of the resolution authorizing the execution of the agreement with GovDeals, Inc.

 

Analysis:

The purpose of this agreement is to contract with GovDeals, Inc. to provide a means for the City to conduct on-line Internet auction sales of surplus property.

 

Currently, the City sends all surplus property to be sold to an auction service in Orange County.  The City transports the items to the auction facility, which   requires valuable staff time and equipment.

 

GovDeals, Inc. provides a means for sellers to list items for sale and for potential buyers to bid upon these items via an Internet-based auction system.  GovDeals will provide training and may provide software and applications to the City to make the listing of items easier.  GovDeals is not a party to the actual sale and has no control over the listed information or the ability of the buyer and seller to complete the transaction.  The City is responsible for completing the transaction and insuring appropriate payment is made.

 

In 2002, GovDeals, Inc. formed a strategic partnership with the Florida League of Cities. More than 60 Florida municipalities and government agencies use Gov Deals for surplus property sales, in addition to hundreds of agencies across the United States.

 

The on-line auction service will benefit the City by:

 

The fee schedule for this service is applied to the individual item sale price as follows:

 

Single Item Sale Price          Fee Calculation

Under $100,000                       7.5%

$100,000 to $500,000                         7.5% up to $100K + 5.5% of amount over $100K

Over $500,000                                    7.5% up to $100K + 5.5% of $400K + 3.5% over $500K

 

The City currently pays a fee of 7.5% on the full sale price for all vehicles.  A 10% fee is charged for the sale of miscellaneous items.

 

Options:

1.  Approve the attached resolution authorizing execution of the agreement with GovDeals, Inc., or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

There will be no direct fiscal impact, as the fee charged will be offset by a portion of the sale price.  The overall fiscal impact is estimated to be positive in that the sale prices of surplus property should be higher with the larger market.  In addition, the fee on miscellaneous items is lower with the on-line service.

 

Submission Date and Time:    1/18/2007 10:06 AM____

 

Department: _ FINANCE____________

Prepared by:  _MIKE THORNTON____                     

Attachments:         Yes_X__   No ______

Advertised:   ____Not Required __X___                     

Dates:   __________________________                     

Attorney Review :       Yes_X_  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager _____RS______________

 

Account No. ___NA____________

 

Project No. ____NA____________

 

WF No. _______NA____________

 

Budget  _______­NA____________

 

Available ______NA____________


 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH GOVDEALS, INC. TO PROVIDE A MEANS BY WHICH THE CITY OF LEESBURG CAN CONDUCT ON-LINE INTERNET AUCTION SALES OF SURPLUS PROPERTY; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute an agreement  with GOVDEALS, INC. whose address is 5913 CARMICHAEL PLACE, MONTGOMERY, ALABAMA, 36117; to provide a means for on-line auction services to the City of Leesburg.

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _22nd__ day of __January_______ 2007.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk