CM-06-01-011Request for City Council/City Manager Action
City Council It d City Manager
Submit completed form for all City Manager and City Council approvals.
Department Name: Finance
Contact Person: NoeIle Jones/Cheryl Delaney
Project
Manager/Resource: Howard Baker
Project Coordinator:
Assigned Attorney: Steve Sheets
Council or
City Manager
Agenda Date: City Manager January 2006
Blue Sheet Wording
Project Name: Auctioneer Services
ContractorNendor:
Funding Source:
Amount:
For Administration Use ONLY
Tag # -cite
Documents
Received:
Return to:
DI-(�(1
Return date:
CC: Lynn Olsen
Gaston Sheehan Auctioneers, Inc
General and Utility Operating Funds
approx $7000 per year
Consider a resolution authorizing the City Manager to execute an agreement with Gaston Sheehan Auctioneers, Inc. for
auctioning services.
Finance Information
Is Funding Required?
0
Cl
Finance Approval
El Finance
Finance
D Purchasing
EJBudget
Yes
No
Initial Construction Contract
Construction Contract Amendment
Change Order
Change in Quantity
Unforeseen Circumstances
Initial Professional Services Agreement
Supplemental Professional Svcs. Agr. #
Purchasing/Service Agreement
Purchase Order
Item(s) to be purchased:
Amount
Other (Please clearly identify action on lines below)
5- year Agreement with Gaston Sheehan
with two 12 -month extensions
n/a L. Olsen
Howard Baker
Date
Date
Date
Date
1/18/2006
1/18/2006
For Submission to City Manager Only
Project Mgr. Signature:
Dept. Director Signature:
City Attorney Signature*:
City Manager Signature:
Date: f-26-lam'LP
Le •al Ap roval is required for all items requesting City Manager's approval.
BLUE SHEET FORMAT
DATE: January 17, 2006
SUBJECT: City Manager Meeting - January 20, 2006
ITEM:
Consider a resolution authorizing the City Manager to execute an agreement with
Gaston Sheehan Auctioneers, Inc. for auctioning services.
Department: Finance
Staff Person: Cindy Demers, Director of Finance
Justification:
The City solicited for auction services for the City's surplus, salvaged, seized and
abandoned property. In previous years, the City has had at least two auctions per year.
The revenue received and the auctioning services cost vary depending on the items
available for auction. The agreement is a five-year agreement with two 12 -month
extension options.
Funding:
Cost: approximately $7000 per year
Source of funds: General and Utility Operating Budgets
Outside Resources: N/A
Background Information: Gaston Sheehan has provided auction services for
the City for the last 5 years. The vendor is a local
professional with 150 combined years experience.
The vendor provides competitive pricing and has a
facility to accommodate the City's needs.
Public Comment:
Blue Sheet Format
Updated 01/20/04
VENDOR VENDOR
DELIVERY: DELIVERY:
TOTAL: $0.00 TOTAL: $n nn
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**Fee applies to only item #1
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VENDOR
DELIVERY:
TOTAL: $0.00
Extended
0
VENDOR
DELIVERY:
TOTAL: $0.00
Extended
VENDOR
GASTON & SHEEHAN
DELIVERY:
TOTAL: $0.00
Extended
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BID TAB
BID NUMBER: 05-037
BID OPENING: 9.20.05 3:PM
AUCTION SERVICES
CI
N
E
0
AUCTION SRVC FEE FOR
SURPLUS ETC.
VEH & HW EQUIP > $1K
VEH & HVY EQUIP $1K -
2.5K
VEH & EQUIP 2,501 - $5K
VEH & EQUIP OVER $5K
FEES TO MOVE/HAUL TO
SALES FACILIT7Y
E
v
CITY OF ROUND ROCK AGREEMENT
FOR AUCTIONEERING SERVICES
WITH GASTON & SHEEHAN AUCTIONEERS, INC.
This Agreement (hereinafter referred to as the "Agreement") is made by and between the
CITY OF ROUND ROCK, a Texas home -rule municipal corporation, whose offices are located
at 221 East Main Street, Round Rock, Texas 78664-5299 (hereinafter referred to as the "City")
and GASTON & SHEEHAN AUCTIONEERS, INC., a Texas corporation, whose offices are
located at 1420 Highway 685, Post Office Box 856, Pflugerville, Texas 78691 (hereinafter
referred to as the "Vendor"). This Agreement supersedes and replaces any previous agreement
between the named parties, whether oral or written, and whether or not established by custom
and practice.
RECITALS:
WHEREAS, City has determined that there is a need for auctioneering services for
surplus, salvaged, seized, and abandoned property, and heavy equipment and vehicles; and
WHEREAS, City has issued its "Invitation to Bid" for the provision of such services, and
City has selected the bid submitted by Vendor; and
WHEREAS, the parties desire to enter into this Agreement to set forth in writing their
respective rights, duties, and obligations;
NOW, THEREFORE, WITNESSETH:
That for and in consideration of the mutual promises contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
mutually agree as follows:
1.01 DEFINITIONS
A. Agreement means the binding legal contract between City and Vendor whereby
City is obligated to buy specified goods and/or services and Vendor is obligated to sell specified
goods and/or services. The Agreement includes the following: (a) City's Invitation for Bid
designated as IFB 05-037, Specification Number 99-962-06-01 revised August 2005; (b)
Vendor's Response to IFB; (c) the contract award; and (d) any exhibits, addenda, and/or
amendments. Any inconsistencies or conflicts in the contract documents shall be resolved by
giving preference in the following order:
(1) This Agreement;
(2) Purchaser's Response to IFB;
(3) City's Invitation for Bids, exhibits, and attachments.
00093036/jkg
-�' -OI • oIt
B. City means the City of Round Rock, Williamson and Travis Counties, Texas.
C. Effective Date means the date upon which the binding signatures of both parties
to this Agreement are affixed.
D. Force Majeure means acts of God, strikes, lockouts, or other industrial
disturbances, acts of the public enemy, orders of any kind from the government of the United
States or the State of Texas or any civil or military authority, insurrections, riots, epidemics,
landslides, lightning, earthquakes, fires, hurricanes, storms, floods, restraint of the government
and the people, civil disturbances, explosions, or other causes not reasonably within the control
of the party claiming such inability.
E. Goods mean the specified supplies, materials, commodities, or equipment.
F. Services means work performed to meet a demand; and the furnishing of labor,
time, or effort by the Vendor involving delivery of any specified end product or service.
G. Vendor means Gaston & Sheehan Auctioneers, Inc., or any successors or assigns.
2.01 EFFECTIVE DATE, INITIAL TERM, AND ALLOWABLE RENEWALS
A. This Agreement shall be effective on the date it has been signed by both parties
hereto, and shall remain in full force and effect unless and until it expires by operation of the
term stated herein, or until terminated or extended as provided herein.
B. The term of this Agreement shall be for five (5) consecutive twelve (12) month
periods from the effective date hereof. Prices shall be firm for the duration of the agreement,
except as provided for herein. This Agreement may be renewed for two (2) additional periods
not to exceed twelve (12) months for each renewal, only upon the express written agreement of
both parties and only provided Vendor has performed each and every contractual obligation
specified in this Agreement.
C. City reserves the right to review Vendor's performance at any time during the
initial agreement or any renewal period, and may elect to terminate this Agreement with or
without cause or may elect to continue.
3.01 CONTRACT DOCUMENTS AND EXHIBITS
City selected Vendor as the integrator of choice to supply the goods as outlined in IFB
05-037, Specification Number 99-962-06-01 revised August 2005, and Response to IFB
submitted by Vendor, all as specified in Exhibit "A" attached hereto and made a part hereof for
all purposes. The intent of these documents is to formulate an Agreement listing the
responsibilities of both parties as outlined in the IFB and as offered by Vendor in its Response to
the IFB.
2
The goods and services which are the subject matter of this Agreement are described in
Exhibit "A" and, together with this Agreement, comprise the total Agreement and they are as
fully a part of this Agreement as if repeated herein in full.
4.01 ITEMS AWARDED
All bid items on Exhibit "A" are awarded to Vendor.
5.01 COSTS
Bid costs listed on Exhibit "A" shall be the basis of any charges collected by Vendor.
6.01 INVOICES
All invoices shall include, at a minimum, the following information:
A. Name and address of Vendor;
B. Purchase Order Number;
C. Description and quantity of items received; and
D. Delivery dates.
7.01 NON -APPROPRIATION AND FISCAL FUNDING
This Agreement is a commitment of City's current revenues only. It is understood and
agreed that City shall have the right to terminate this Agreement at the end of any City fiscal year
if the governing body of City does not appropriate funds sufficient to purchase the services as
determined by City's budget for the fiscal year in question. City may effect such termination by
giving Vendor a written notice of termination at the end of its then -current fiscal year.
8.01 PROMPT PAYMENT POLICY
In accordance with Chapter 2251, V.T.C.A., Texas Government Code, payment to
Vendor will be made within thirty (30) days of the day on which City receives the performance,
supplies, materials, equipment, and/or deliverables, or within thirty (30) days of the day on
which the performance of services was complete, or within thirty (30) days of the day on which
City receives a correct invoice for the performance and/or deliverables or services, whichever is
later. Vendor may charge a late fee of one percent (1%) for payments not made in accordance
with this Prompt Payment Policy; however, this Policy does not apply to payments made by City
in the event:
A. There is a bona fide dispute between City and Vendor concerning the supplies,
materials, or equipment delivered or the services performed which causes the
3
payment to be late; or
B. The terms of a federal contract, grant, regulation, or statute prevent City from
making a timely payment with federal funds; or
C. There is a bona fide dispute between any of the parties and subcontractors or
between a subcontractor and its suppliers concerning supplies, materials, or
equipment delivered or the services performed which causes the payment to be
late; or
D. Invoices are not mailed to City in strict accordance with instructions, if any, on
the purchase order or the Agreement or other such contractual agreement.
9.01 GRATUITIES AND BRIBES
City may, by written notice to Vendor, cancel this Agreement without liability to Vendor
if it is determined by City that gratuities or bribes in the form of entertainment, gifts, or
otherwise were offered or given by Vendor or its agents or representatives to any City officer,
employee or elected representative with respect to the performance of this Agreement. In
addition, Vendor may be subject to penalties stated in Title 8 of the Texas Penal Code.
10.01 TAXES
City is exempt from Federal Excise and State Sales Tax; therefore, tax shall not be
included in Vendor's charges.
11.01 ORDERS PLACED WITH ALTERNATE VENDORS
If Vendor cannot provide the goods as specified, City reserves the right and option to
obtain the products from other suppliers or sources.
12.01 INSURANCE
Vendor shall meet all requirements as stated in the attached IFB 05-037 and in Vendor's
Response to the IFB.
13.01 CITY'S REPRESENTATIVE
City hereby designates the following representatives authorized to act in its behalf with
regard to this Agreement:
Carolyn Brooks, CPPB
City of Round Rock Purchasing Department
Round Rock, Texas 78664
512-218-5457
4
14.01 RIGHT TO ASSURANCE
Whenever either party to this Agreement, in good faith, has reason to question the other
party's intent to perform hereunder, then demand may be made to the other party for written
assurance of the intent to perform. In the event that no written assurance is given within the
reasonable time specified when demand is made, then and in that event the demanding party may
treat such failure as an anticipatory repudiation of this Agreement.
15.01 DEFAULT
If Vendor abandons or defaults under this Agreement and is a cause of City purchasing
the specified goods elsewhere, Vendor agrees that it may be charged the difference in cost, if
any, and that it will not be considered in the re -advertisement of the service and that it may not
be considered in future bids for the same type of work unless the scope of work is significantly
changed.
Vendor shall be declared in default of this Agreement if it does any of the following:
A. Fails to make any payment in full when due;
B. Fails to fully, timely and faithfully perform any of its material obligations under
this Agreement;
C. Fails to provide adequate assurance of performance under the "Right to
Assurance" section herein; or
D. Becomes insolvent or seeks relief under the bankruptcy laws of the United States.
16.01 TERMINATION AND SUSPENSION
A. City has the right to terminate this Agreement, in whole or in part, for
convenience and without cause, at any time upon thirty (30) days' written notice to Vendor.
B. In the event of any default by Vendor, City has the right to terminate this
Agreement for cause, upon ten (10) days' written notice to Vendor.
C. Vendor has the right to terminate this Agreement for cause, that being in the event
of a material and substantial breach by City, by providing City with one hundred twenty (120)
days' written notice prior to termination of the Agreement; and in the event of such written
notice of termination, Vendor shall continue services for a period of time not to exceed one
hundred twenty (120) days after written notification. Termination under this subsection (C) of
Section 16.01 shall not relieve Vendor of any obligation or liability that has occurred prior to
cancellation.
5
D. In the event City terminates under subsections (A) or (B) of this section, the
following shall apply: Upon City's delivery of the referenced notice to Vendor, Vendor shall
discontinue all services in connection with the performance of this Agreement and shall proceed
to cancel promptly all existing orders and contracts insofar as such orders and contracts are
chargeable to this Agreement. Within thirty (30) days after such notice of termination, Vendor
shall submit a statement showing in detail the goods and/or services satisfactorily performed
under this Agreement to the date of termination. City shall then pay Vendor that portion of the
charges, if undisputed. The parties agree that Vendor is not entitled to compensation for services
it would have performed under the remaining term of the Agreement except as provided herein.
17.01 INDEMNIFICATION
Vendor shall defend (at the option of City), indemnify, and hold City, its successors,
assigns, officers, employees and elected officials harmless from and against all suits, actions,
legal proceedings, claims, demands, damages, costs, expenses, attorney's fees, and any and all
other costs or fees arising out of, or incident to, concerning or resulting from the fault of Vendor,
or Vendor's agents, employees or subcontractors, in the performance of Vendor's obligations
under this Agreement, no matter how, or to whom, such loss may occur. Nothing herein shall be
deemed to limit the rights of City or Vendor (including, but not limited to the right to seek
contribution) against any third party who may be liable for an indemnified claim.
18.01 COMPLIANCE WITH LAWS, CHARTER AND ORDINANCES
Vendor, its agents, employees and subcontractors shall use best efforts to comply with all
applicable federal and state laws, the Charter and Ordinances of the City of Round Rock, as
amended, and with all applicable rules and regulations promulgated by local, state and national
boards, bureaus and agencies.
19.01 ASSIGNMENT AND DELEGATION
The parties each hereby bind themselves, their successors, assigns and legal
representatives to each other with respect to the terms of this Agreement. Neither party shall
assign, sublet or transfer any interest in this Agreement without prior written authorization of the
other party.
20.01 NOTICES
All notices and other communications in connection with this Agreement shall be in
writing and shall be considered given as follows:
1. When delivered personally to the recipient's address as stated in this Agreement;
or
2. Three (3) days after being deposited in the United States mail, with postage
prepaid to the recipient's address as stated in this Agreement.
6
Notice to Vendor:
Robert J. Sheehan
Gaston & Sheehan Auctioneers, Inc.
Post Office Box 856
Pflugerville, TX 78691
Notice to City:
Assistant City Manager
221 East Main Street
Round Rock, TX 78664
Stephen L. Sheets, City Attorney
AND TO: 309 East Main Street
Round Rock, TX 78664
Nothing contained herein shall be construed to restrict the transmission of routine
communications between representatives of City and Vendor.
21.01 APPLICABLE LAW; ENFORCEMENT AND VENUE
This Agreement shall be enforceable in Round Rock, Texas, and if legal action is
necessary by either party with respect to the enforcement of any or all of the terms or conditions
herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall be
governed by and construed in accordance with the laws and court decisions of the State of Texas.
22.01 EXCLUSIVE AGREEMENT
This document, and all appended documents, constitutes the entire Agreement between
Vendor and City. This Agreement may only be amended or supplemented by mutual agreement
of the parties hereto in writing.
23.01 DISPUTE RESOLUTION
If a dispute or claim arises under this Agreement, the parties agree to first try to resolve
the dispute or claim by appropriate internal means, including referral to each party's senior
management. If the parties cannot reach a mutually satisfactory resolution, then and in that event
any such dispute or claim will be sought to be resolved with the help of a mutually selected
mediator. If the parties cannot agree on a mediator, City and Vendor shall each select a mediator
and the two mediators shall agree upon a third mediator. Any costs and fees, other than attorney
fees, associated with the mediation shall be shared equally by the parties.
City and Vendor hereby expressly agree that no claims or disputes between the parties
arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration
proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9
USC Section 1-14) or any applicable state arbitration statute.
7
24.01 SEVERABILITY
The invalidity, illegality, or unenforceability of any provision of this Agreement or the
occurrence of any event rendering any portion or provision of this Agreement void shall in no
way affect the validity or enforceability of any other portion or provision of this Agreement. Any
void provision shall be deemed severed from this Agreement, and the balance of this Agreement
shall be construed and enforced as if this Agreement did not contain the particular portion or
provision held to be void. The parties further agree to amend this Agreement to replace any
stricken provision with a valid provision that comes as close as possible to the intent of the
stricken provision. The provisions of this section shall not prevent this entire Agreement from
being void should a provision which is of the essence of this Agreement be determined void.
25.01 MISCELLANEOUS PROVISIONS
Standard of Care. Vendor represents that it employs trained, experienced and
competent persons to perform all of the services, responsibilities and duties specified herein and
that such services, responsibilities and duties shall be performed in a manner according to
generally accepted industry practices.
Time is of the Essence. Vendor understands and agrees that time is of the essence and
that any failure of Vendor to fulfill obligations for each portion of this Agreement within the
agreed timeframes will constitute a material breach of this Agreement. Vendor shall be fully
responsible for its delays or for failures to use best efforts in accordance with the terms of this
Agreement. Where damage is caused to City due to Vendor's failure to perform in these
circumstances, City may pursue any remedy available without waiver of any of City's additional
legal rights or remedies.
Force Majeure. Neither City nor Vendor shall be deemed in violation of this Agreement
if it is prevented from performing any of its obligations hereunder by reasons for which it is not
responsible as defined herein. However, notice of such impediment or delay in performance must
be timely given, and all reasonable efforts undertaken to mitigate its effects.
Multiple Counterparts. This Agreement may be executed in multiple counterparts, any
one of which shall be considered an original of this document; and all of which, when taken
together, shall constitute one and the same instrument.
IN WITNESS WHEREOF, City and Vendor have executed this Agreement on the dates
indicated.
City of Round Rock, Texas
By:
Gaston & Sheehan A ion e s, In
By.
Kyle` axwell, Mayor Title:
to ` igned: ) -AD- Gc Date Signed:
8
By:
Christine R. Martinez, City Secretary
For City, s roved as to Farm:
: e
By: L.
Stephan . Sheets, City Attorney
9
1
INVITATION FOR BID (IFB) gg
CITY OF ROUND ROCK PURCHASING OFFICE D
221 E. Main Street
Round Rock, Texas 78664-5299
BIDS ARE DUE TO THE PURCHASING OFFICE
AT THE ABOVE ADDRESS BEFORE BID
OPENING TIME.
INVOICE TO:
City of Round Rock
Accounts Payable
221 East Main Street
Round Rock, Texas 78664-5299
BID F.O.B. DESTINATION, FREIGHT PREPAID AND
ALLOWED UNLESS OTHERWISE SPECIFIED BELOW
DESTINATION :
FACSIMILE RESPONSES
SHALL NOT BE ACCEPTED
SHOW BID OPENING DATE S.
BID NUMBER IN LOWER LEFT
HAND CORNER OF SEALED BIO
ENVELOPE & SHOW RETURN
ADDRESS OF BIDDING FIRM.
EXHIBIT
IAn
BIDDING INFORMATION:
L
AUCTION SERVICES
BID NUMBER 05-037
OPENING DATE: 9/20/2005 at 3:00 P.M.
BID LOCATION:
221 E. Main Street, Council
Chambers, Round Rock, TX 778664
RETURN SIGNED ORIGINAL AND ONE COPY OF BID
BIDDER SHALL SIGN BELOW
Failure to sign bid will
uthorized Signature e R Li/ Date
Michelle T. ShPPhan
0/05
See 1.7 of Bidding Instructions on page 3
TAX IDNo.: 75-2221529
LEGAL BUSINESS NAME: Gaston & Sheehan Auctioneers, Inc
ADDRESS: P.O. Box 856, Pflugerville, TX 78691
ADDRESS: 1420 Hwy 685, Pflugerville, TX 78660
CONTACT: Robert J . Sheehan
TELEPHONE NO.: (512) 251-2780 or 251-3002
BUSINESS ENTITY TYPE: Auction / Real Estate / Storage
"By the signature hereon affixed, the bidder hereby certifies that neither the bidder nor the entity represented by the bidder, or anyone acting for such entity has
violated the antitrust laws of this State, codified in Section 15.01 et seq., Texas Business and Commerce Code, or the Federal antitrust laws, nor communicated
directly or indirectly, the bid made to any competitor or any other person engaged in such line of business."
Bidder agrees to comply with all conditions set forth below in this IFB.
This is for a five year agreement with two 12 -month renewal options for Auctioning Services in accordance
962-06-01, revised 8-2005 (12 pgs)
with Spec
Auctioneer's fee shall be stated in terms of percentage of gross sales.
ITEM #
CLASS & ITEM DESCRIPTION
962-09
%
UNIT
UNIT
PRICE
1
Auctioneer service fee for surplus, slavaged, siezed, abandoned
property auctioned at Auctioneer's site.
25%.
Auctioneer service fee for vehicles and heavy equipment
auctioned at Auctioneer's site per unit sold:
2
Vehicles & heavy equipment under $1,000.
12%
3
Vehicles & heavy equipment $1,000. - $2,500.
10.5%
4
Vehicles & heavy equipment $2,501. - $5,000.
9 . 75%
5
Vehicles & heavy equipment over $5,000.
9. 5%
**6
Fee for move/haul to sales facility. % of gross sales
10%
For evaluation purposes, please provide the following:
Auctioneer Name: Robert J.. "Sheehan
Address P.O.
Box 856, Pflugerville, TX
Auctioneer License No.: TX 6497
Telephone
Number: (512) 750-0305 or 251-2780
Location of Storage Facilities:
1701 Pfenniq, Pflugerville, TX
Facilities shall accommodate 5 0 0 people/buyers
Square footage of secured storage area:3 acres & 6, 0(10 sq
Et
Outside inside
**Fee
GRAND TOTAL
applies to only item #1, DELIVERY IN
moving vehicles.
1 of 3
ification No. 99 -
EXTENSION
AYS
REFERENCE SHEET
Please Complete and Return This Form with the Solicitation Response
SOLICITATION NUMBER: IFB 05-037 - AUCTION SERVICES
BIDDER'S NAME: Gaston & Sheehan AuctiorDATE: 9/20/05
Provide the name, address, telephone number and point of contract of at least three firms that have
utilized similar service for at least 2 year. References may be checked prior to award. Any negative
responses received may result in disqualification of bid.
1. Company's Name
Name of Contact
Title of Contact
Present Address
City, State, Zip Code
Telephone Number
2. Company's Name
Name of Contact
Title of Contact
Present Address
City, State, Zip Code
Telephone Number
3. Company's Name
Name of Contact
Title of Contact
Present Address
City, State, Zip Code
Telephone Number
4. Company's Name
Name of Contact
Title of Contact
Present Address
City, State, Zip Code
Telephone Number
5. Company's Name
Name of Contact
Title of Contact
Present Address
City, State, Zip Code
Telephone Number
Travis County
Ron Dube
Purchasing Agent
314 W. llth Street, Room #400
Austin, TX 78701
( 512) 854-6458
City of Austin
Fax Number (512 ) 854-9185
Sam Dominguez
Material Control Manager
P.O. Box 1088
Austin, TX 78767
(512 ) 974-1721
Williamson County
Fax Number (512 ) 974-1719
Patti Collins
Fleet Manager
3151 SE Inner Loop
Georgetown, TX 78626
(512 ) 943-3373 Fax Number ( 512 ) 930-0280
City of Austin
Tami Bircher
Senior Administrative Assistant
220 Ralph Ablanedo
Austin, TX 78745
(512 ) 280-0075
Fax Number (512) 291-9746
Pflugerville Police Department
Chief of Police
Chuck Hooker
P.O. Box 679
Pflugerville, TX 78691
(512) 251-4004
Fax Number ( 512 ) 251-0883
FAILURE TO PROVIDE THE REQUIRED INFORMATION WITH THE SOLICITATION RESPONSE MAY
AUTOMATICALLY DISQUALIFY THE RESPONSE FROM CONSERATION FROM AWARD.
Reference Sheet
Page 3 of 3 Dated: 05//2005
CITY OF ROUND ROCK PURCHASING OFFICE
221 EAST MAIN STREET
ROUND ROCK, TX 78664-5299
INVITATION FOR BID (IFB)
AUCTION SERVICES — SURPLUS, SALVAGED, SEIZED AND
ABANDONED PROPERTY, HEAVY EQUIPMENT AND VEHICLES
IFB # 05-037
SUBMITTED
SEPTEMBER 20, 2005
BY
MR. ROBERT J. SHEEHAN
GASTON & SHEEHAN AUCTIONEERS, INC.
P.O. BOX 856
PFLUGERVILLE, TEXAS 78691-0856
(512) 251-2780 * FAX (512) 990-2900
E-MAIL: auction@txauction.com
WEBSITE: www.txauction.com
FEDERAL I.D.: 75-2221529
MICHELLE T. SHEEHA , C.E.O.
AUCTIONEERS
September 19, 2005
APPRAISERS
944tot & S edapt,
P.O. Box 856
Pflugerville, TX 78691-0856
(512) 251-2780 * Fax (512) 990-2900
E-mail: auction@txauction.com
Ms. Carolyn Brooks
City of Round Rock Purchasing Office
221 East Main Street
Round Rock, TX 78664-5299
Dear Ms. Brooks:
LIQUIDATORS
Gaston & Sheehan Auctioneers, Inc. would like to take this opportunity to submit a proposal to provide
auctioneer services to include surplus, salvage, seized and abandoned property, heavy equipment and vehicles.
This service will be provided on an as needed basis at our Pflugerville sale facility.
Our firm fully understands the scope of services required and has vast experience with contracts of this nature.
We will provide auctioning services to the City of Round Rock in a manner far beyond the basic bid
requirements as set forth in the IFB. It is our intention to include city property, vehicles and equipment in our
regularly scheduled police, city and county auction in order to optimize prices realized. These sales are
conducted on a Saturday and consistently draw large crowds. Gaston & Sheehan Auctioneers, Inc. is the
largest multi purpose auction firm in the Central Texas area. The firm conducts over 150 auctions each year
with gross sales of approximately $5,000,000 per year. The staff is highly trained in the auction method and
represents over 150 years of auction experience. We know the product we sell, the market value of that
product and the potential buyers. We consistently increase our client's recovery value. If our competitor
charges a commission fee of eight percent and sells an item for one thousand dollars and Gaston & Sheehan
charges ten percent and sells an item for one thousand dollars, as a seller, which firm would you prefer? We
have the experience and knowledge to perform this contract in a manner second to none.
We appreciate the opportunity to submit a proposal and look forward to a rewarding business relationship.
Sincerely,
Michelle T. Sheehan
GASTON & SHEEHAN AUCTIONEERS, INC.
PROPOSAL
Gaston & Sheehan Auctioneers, Inc. propose to conduct auctions for the City of Round Rock on an as needed
basis, at the Gaston & Sheehan Auction Facility, 1420 Hwy 685, Pflugerville, Texas. These sales will be
conducted to liquidate city surplus, salvaged, seized and abandoned property, equipment and vehicles. These
items will sell in conjunction with our regularly scheduled Saturday auctions or on an agreed upon date.
The Gaston & Sheehan auction methodology is a well-planned schedule of chronological events designed to
assure large attendance and to maximize prices realized. The schedule for the City of Round Rock auctions
will be as follows:
1. Gaston & Sheehan Auctioneers, Inc. will inventory and pick-up property from the city offices upon
notification from the Purchasing Agent. Items will be transported to Pflugerville location, placed in
secured storage until released for auction. Gaston & Sheehan transports will be utilized to relocate the city
vehicles. Southside Wrecker Service will be subcontracted to move any heavy equipment. Vehicle
identification numbers, years and mileage will be checked and verified.
2. Upon release for auction, items will be lotted, tagged and physically arranged in such a manner as to
expedite the sale and optimize the competitive psychology inherent in a properly promoted auction
environment. Vehicles will be cleaned and made ready for sale. Gaston & Sheehan will make every effort
to insure that vehicles are in running condition prior to sale.
3. Qualified auction personnel will be available to assist in the preview of items on the day prior and day of
the auction. Gaston & Sheehan employees will start vehicles at the previews. Catalogs will be published
and distributed as a courtesy of the Auctioneers.
4. Auction brochures will be published, mailed and emailed not later than ten days before the sale date. The
brochures will be sent to prospective bidders on the Auctioneers mail list as well as anyone requested by
city. It is anticipated that approximately 4,500 brochures will be mailed.
5. Newspaper advertising will commence two weeks before the sale date. Advertising will be placed in the
Austin American Statesman and San Antonio Express News. Auction notice and pictures will also be
posted on the Gaston & Sheehan website at www.txauction.com and e-mailed out to prospective bidders
on the Auctioneers e-mail list. All advertising will include "Terms and Conditions of Sale"
6. Buyer registration will commence at the previews and all day, sale day. Each buyer will be required to
show proper identification in order to register and get a "Bidders" number. Terms will be Cash, Cashier's
Check, Personal or Company Check with a Bank Letter of Guarantee. Cash buyers will be required to
make a refundable cash deposit at the time of registration. If the buyer is tax exempt the proper Tax -
Exempt or Tax Resale numbers will be required.
7. Gaston & Sheehan Auctioneers will provide all sound equipment and personnel, including professional
Licensed Auctioneers, Clerk, Ringmen, Registration and Cashier personnel and Checkout staff.
8. Each auction will be digitally recorded to handle any issues and the recordings will be stored at Gaston &
Sheehan's offices.
9. Gaston & Sheehan Auctioneers will supply the City of Round Rock with three copies of a written
statement indicating all revenue, (total amount of sales collected), sales tax due and grand total
plus all proceeds due for entire auction. A list, in lot number order showing the buyer, description of
the items sold, quantity of each lot, amount paid for each item and amount paid for each lot will also be
provided.
COMPANY BACKGROUND
Gaston and Sheehan Auctioneers were founded in April of 1988 through a merging of the partners' operating
businesses and years of experience. The company was formed to be a leading multi -facet auction company
capable of responding to the growing demand for auction services throughout the State of Texas. Since the
inception of our company, our goal has been to provide businesses and consumers of the Southwest with an
auction service second to none. Gaston & Sheehan Auctioneers, Inc. is a family-owned business committed to
providing the U.S. Marshals Service, Travis County, Internal Revenue Service, City of Austin, Federal
Deposit Insurance Corporation, U.S. Bankruptcy Court, and our other customers with the experience and
dedication required by this solicitation.
Our Austin facility is located at 1420 Hwy 685, Pflugerville, Texas. This location is in Travis County
approximately five miles East of IH -35. This facility offers a 6,000 sq ft building, has five acres of fenced
storage and eight full time employees. The outside storage area has security lighting to cover the fenced area.
The entire area is surrounded with chain link fence topped with barbed wire. We feel this location offers our
clients the finest auction facility in the Central Texas area. It provides ample in -door and out -door storage
space, security, auction area and sufficient customer parking. Clients such as the Internal Revenue Service and
U.S. Customs Service currently store vehicles at this facility. This location has functioned as an on going
auction business since 1982. Major auctions are conducted at this facility every 30 days.
Gaston and Sheehan's leadership team brings experience and expertise unequalled in the auction profession.
We are a Woman — Owned, Small Business Concern.
Michelle Sheehan, President, CEO and majority shareholder of Gaston & Sheehan is licensed by the State of
Texas as an Auctioneer -and Real Estate Broker. In 1982 she entered the auction business with her husband,
Bob Sheehan, also a licensed auctioneer. Since this time she has contributed to all operational activities of the
business. Her responsibilities have ranged from computer operations to modeling full-length mink coats in
100 -degree heat at a U.S. Marshals auction in Floresville, Texas. Ms. Sheehan has 18 years of experience in
government and commercial auction sales of vehicles, equipment, jewelry, real estate, fine art and general
merchandise. She is familiar with every aspect of the auction business from setup and advertising to final sale
settlement.
Bob Sheehan, Secretary Treasurer, has been a licensed auctioneer since 1982 and holds a BS degree from the
University of Massachusetts and a Masters Degree in Management from Frostburg State College, Frostburg,
Maryland. Mr. Sheehan is a Vietnam Era veteran, who served in the United States Army for six years. While
in the military, he served as a Company Commander, Management Analyst, and Comptroller of a medical
research facility. Upon his departure from the military, Mr. Sheehan had attained the Rank of Captain in the
Medical Service Corps.
Mr. Sheehan has operated a very successful auction business in the Central Texas area providing auction
services since 1985. He has established a reputation beyond reproach with the U.S. Marshals Service, Federal
Deposit Insurance Corporation, Internal Revenue Service and other local lending institutions throughout
Texas.
The principals have leveraged their integrity, management experience and auction "savvy" to build one of the
most successful auction firms in Texas. Since Gaston & Sheehan's inception, it has diversified into functional
areas that compliment and support its core auction business.
Gaston & Sheehan currently conducts sales throughout the state of Texas. While auctions are our primary
sales method, the company also provides appraisals, property management and brokering merchandise. For
this reason, the company "knows" the value of merchandise, a sometimes forgotten ingredient in any
successful auction. It is in this area that our firm excels.
Selling thousands of merchandise lots since 1988, we have acquired a reputation for getting "top -dollar" for
merchandise. In addition to fleet vehicles, we have also been involved in the auctioning of late model, high
performance and exotic vehicles. We believe our best advertisement has been our satisfied customers (both
buyers and sellers) who consistently utilize our auction service.
Our firm is capable of handling any size sale from a single piece of real estate to a multi day auction with
1,000 to 1,500 lots per day with two auction rings working simultaneously. In addition to traditional live
auction sales, walk through video, slide presentation and interne auctions have all been planned and
conducted.
Gaston & Sheehan Auctioneer's management team possesses over 150 years of business acumen with over
150 years of involvement in the auction arena. We feel our staff is second to none in experience and sale
management. It has planned, organized, and conducted over 100 varied auctions each year; each producing
customer satisfaction and maximum dollar recovery. We enjoy a fine reputation in the crucial areas of
integrity, reliability, and competence. Our financial base is extremely sound, with funds available for major
construction and/or expansion of facilities. Our credit rating is superior and funds are available for any type of
auction endeavor. Our business experience permits our firm to furnish a broad base service, enabling us to
liquidate at auction a single piece of real estate or an entire hotel/restaurant complex covering three city
blocks.
Our firm presently carries $1,000,000 in liability insurance for on site sales. These limits can easily be
increased to comply with contract specifications. In addition, we have Worker's Compensation and Garage
Keepers Liability Policy that insures all store or consigned vehicles while in our possession.
The following individuals will be directly responsible for providing services as outlined in this proposal:
Michelle Sheehan / 20 Years Experience
Robert J. Sheehan / 20 Years Experience
Ryan Sheehan / 10 Years Experience
Lisa Rzepniewski / 10 Years Experience
License 12508
License 6497
License 10571
License 10124
CITY OF ROUND ROCK
SPECIFICATION NO.
99-962-06-01
REVISED: AUG. 2005
AUCTIONING SERVICES
PART I
GENERAL
1. PURPOSE: The City seeks to establish a multiple year Agreement with a responsible bidder that
has the means and ability to provide auctioning services for the disposal of surplus, seized and
abandoned property throughout the Agreement year and any extensions.
2. DEFINITIONS: The following definitions will be used for identified terms throughout the
specification and bid document:
2.1. Agreement — A mutually binding legal document obligating the Vendor to furnish the
goods, equipment or services, and obligating the City to pay for it.
2.2. Bidder — Identified in Part II, paragraph 12 shall describe persons and entities that have
registered to attend the auction for the purpose of purchasing property.
2.3. Bidder identified throughout this specification shall describe persons and entities that
consider themselves qualified to provide the goods, equipment or services.
2.4. Buyer — Identifies a registered person or entities that has purchased item(s) at an auction.
2.5. City — Identifies the City of Round Rock, Travis and Williamson Counties, Texas.
2.6. Goods represent materials, supplies, commodities and equipment.
2.7. Purchase Order - is an order placed by the Purchasing Office for the purchase of Goods
or Services written on the City's standard Purchase Order form and which, when
accepted by the Bidder, becomes an Agreement. The Purchase Order is the Bidder's
authority to deliver and invoice the City for Goods or Services specified, and the City's
commitment to accept the Goods or Services for an agreed upon price.
2.8. Services - work performed to meet a demand. The furnishing of labor, time, or effort by
the vendor and their ability to comply with promised delivery dates, specification and
technical assistance specified.
2.9. Subcontractor - Any person or business enterprise providing goods, labor, and/or services
to a Vendor if such goods, equipment, labor, and/or services are procured or used in
fulfillment of the Vendor's obligations arising from a Agreement with the City.
2.10. Vendor — (Sometimes referred to as Contractor) A person or business enterprise providing
goods, equipment, labor and/or services to the City as fulfillment of obligations arising
from a contract or purchase order.
3. CLARIFICATION: For clarification of specifications, bidders may contact:
Carolyn Brooks
Purchaser
City of Round Rock
Telephone: 512-218-5457
The individual listed above may be contacted by telephone or visited for clarification of the
specifications only. No authority is intended or implied that specifications may be amended or
alterations accepted prior to bid opening without written approval of the City of Round Rock through
the Purchasing Division.
Page 1 of 12
SPECIFICATION NO.
99-962-06-01
REVISED: AUG. 2005
PART 1I
GENERAL TERMS AND CONDITIONS
1. BID EVALUATION: All bids received shall be evaluated based on the best value for the City. Best
value will be determined by considering all or part of the criteria listed, as well as any relevant
criteria specifically listed in the solicitation.
1.1. Bid price
1.2. Reputation of the bidder and of bidder's goods and services.
1.3. The quality of the bidder's goods or services.
1.4. The extent to which the goods or services meet the City's needs
1.5. Bidder's past relationship with the City. All vendors will be evaluated on their past
performance and prior dealings with the City to include, but not limited to, failure to meet
specifications, poor quality, poor workmanship, late delivery.
1.6. The total Tong -term cost to the Municipality to acquire the bidder's goods or services. The
Vendor shall provide the facility(ies), labor and equipment necessary to perform the
service.
2. EX PARTE COMMUNICATION: Please note that to insure the proper and fair evaluation of a bid,
the City of Round Rock prohibits ex parte communication (e.g., unsolicited) initiated by the Bidder
to the City Official or Employee evaluating or considering the bids prior to the time a bid decision
has been made. Communication between Bidder and the City will be initiated by the appropriate
City Official or Employee in order to obtain information or clarification needed to develop a proper
and accurate evaluation of the bid. Ex parte communication may be grounds for disqualifying the
offending Bidder from consideration or award of the bid then in evaluation, or any future bid.
3. CONFIDENTIALITY OF CONTENT: Bids received are subject to release as public information
unless the bid or specific parts of the bid can be shown to be exempt from the Texas Public
Information Act. Bidders are advised to consult with their legal counsel regarding disclosure
issues and take the appropriate precautions to safeguard trade secrets or any other proprietary
information. The City assumes no obligation or responsibility for asserting legal arguments on
behalf of potential Bidders.
3.1. If a Bidder believes that a bid or parts of a bid are confidential, then the Bidder shall so
specify. The Bidder shall stamp in bold red letters the term "CONFIDENTIAL" on that part
of the solicitation, which the Bidder believes to be confidential. Vague and general claims
as to confidentiality shall not be accepted. All bids and parts of bids that are not marked
as confidential will be automatically considered public information after the Agreement is
awarded.
4. AGREEMENT: The term of the Agreement resulting from the solicitation may be for five
consecutive 12 month periods of time from the effective date and shall remain in full force and
effect unless and until it expires by operation of the term stated or until terminated or extended as
provided herein. The City reserves the right to:
4.1. Renew Agreement for two (2) additional periods of time not to exceed twelve (12) months
for each renewal provided both parties agree.
4.2. Review the following at the end of each twelve-month review period or renewal:
4.2.1. Vendor performance
4.2.2. Price
4.2.3. Continuing need
4.2.4. Advancements in technologies and or service
4.3. The City may terminate the Agreement with or without cause or may continue through the
next twelve-month review or renewal period.
Page 2 of 12
SPECIFICATION NO.
99-962-06-01
REVISED: AUG. 2005
5. PRICE: The contract price percentage bid for Auctioneer Services shall be firm for the duration of
the contract or extension periods. No separate line item charges shall be permitted for either
bidding or invoice purposes, which shall include equipment rental, demurrage, cost associated
with obtaining permits or any other extraneous charges.
6. LABOR: The Vendor shall provide all labor and goods necessary to perform the project. The
Vendor shall employee all personnel for work in accordance with the requirements set forth by the
United States Department of Labor.
7. DAMAGE: The Vendor shall be responsible for damage to the City's equipment and/or property,
the workplace and its contents by its work, negligence in work, its personnel and equipment. The
Vendor shall be responsible and liable for the safety; injury and health of its working personnel
while its employees are performing service work.
8. WORKPLACE: The City is committed to maintaining an alcohol and drug free workplace.
Possession, use, or being under the influence of alcohol or controlled substances by Vendor,
Vendor's employees, subcontractor(s) or subcontractor (s') employees while in the performance
of the service is prohibited. Violation of this requirement shall constitute grounds for termination
of the service.
9. NON -APPROPRIATION: The resulting Agreement is a commitment of the City's current revenues
only. It is understood and agreed the City shall have the right to terminate the Agreement at the
end of any City fiscal year if the governing body of the City does not appropriate funds sufficient to
purchase the estimated yearly quantities, as determined by the City's budget for the fiscal year in
question. The City may effect such termination by giving Vendor a written notice of termination at
the end of its then current fiscal year.
10. CANCELLATION: The City reserves the right to cancel the Agreement without penalty by
providing 30 days prior written notice to the other party. Vendor shall provide the City with 90 days
written notice prior to cancellation of the Agreement and shall continue services for a period of
time not to exceed 120 days after written notification. Termination under this paragraph shall not
relieve the Vendor of any obligation or liability that has occurred prior to cancellation. NOTE: This
Agreement is subject to cancellation, without penalty, at any time the City deems the
vendor to be non-compliant with contractual obligations.
11. AGREEMENT ADMINISTRATOR: All work performed under this Agreement will be supervised
and verified by the City representative(s) noted below.
Carolyn Brooks at 512-218-5457
- 12. COMPLIANCE WITH LAWS: The successful bidder shall comply with all federal, state, and local
laws, statutes, ordinances, rules and regulations, and the orders and decrees of any court or
administrative bodies or tribunals in any matter affecting the performance of the contract,
including without limitation, workers' compensation laws, minimum and maximum salary and wage
statutes and regulations, and licensing laws and regulations. When requested, the Vendor shall
furnish the City with satisfactory proof of its compliance.
13. ABANDONMENT OR DEFAULT: A Vendor who abandons or defaults the work on the Agreement
and causes the City to purchase the services elsewhere may be charged the difference in service
if any and shall not be considered in the re -advertisement of the service and may not be
considered in future bids for the same type of work unless the scope of work is significantly
changed.
14. CODES, PERMITS AND LICENSES: The successful bidder shall comply with all National, State
and Local standards, codes and ordinances and the terms and conditions of the services of other
authorities that have jurisdiction pertaining to equipment and materials used and their application.
None of the terms or provisions of the specification shall be construed as waiving any rules,
regulations or requirements of these authorities. The successful bidder shall be responsible for
Page 3 of 12
SPECIFICATION NO.
99-962-06-01
REVISED: AUG. 2005
obtaining all necessary permits, certificates and/or licenses to fulfill contractual obligations (City of
Round Rock fees and costs will be waived).
15. RIGHT TO AUDIT: The City has the right to audit the Vendor's books and records pertaining to
the service during the hours of the normal workday.
16. INDEMNITY: Vendor shall indemnify, save harmless and defend the City, its officers, agents,
servants, and employees from and against any and all suits, actions, legal proceedings, claims,
demands, damages, costs, expenses, attorney's fees and any and all other costs or fees incident
to the performance of the resulting agreement and arising out of a willful or negligent act or
omission of the Vendor, its officers, agents, servants and employees.
17. INSURANCE: The Vendor shall procure and maintain at its sole cost and expense for the duration
of the Agreement or purchase order resulting from a response to this bid/Specification insurance
against claims for injuries to persons or damages to property which may arise from or in connection
with the performance of the work as a result of this bid by the successful bidder, its agents,
representatives, volunteers, employees or subcontractors.
17.1. Certificates of Insurance and endorsements shall be furnished to the City and approved by
the City before work commences.
17.2. The following standard insurance policies shall be required:
17.2.1. General Liability Policy
17.2.2. Automobile Liability Policy
17.2.3. Worker's Compensation Policy
17.3. The following general requirements are applicable to all policies:
17.3.1. Only insurance companies licensed and admitted to do business in the State of
Texas shall be accepted.
17.3.2. Deductibles shall be listed on the Certificate of Insurance and are acceptable only
on a per occurrence basis for property damage only.
17.3.3. Claims made policies shall not be accepted, except for Professional Liability
Insurance.
17.3.4. Upon request, certified copies of all insurance policies shall be furnished to the City
17.3.5. Policies shall include, but not be limited to, the following minimum limits:
17.3.5.1. Minimum Bodily Injury Limits of $300,000.00 per occurrence.
17.3.5.1.1. Property Damage Insurance with minimum limits of
$50,000.00 for each occurrence.
17.3.5.1.2. Automobile Liability Insurance for all owned, non -owned,
and hired vehicles with minimum limits for Bodily Injury of
$100,000.00 each person, and $300,000.00 for each
occurrence, and Property Damage Minimum limits of
$50,000.00 for each occurrence.
17.3.5.1.3. Statutory Worker's Compensation Insurance and
minimum $100,000.00 Employers Liability Insurance.
17.3.6. Coverage shall be maintained for two years minimum after the termination of the
Agreement.
17.4. The City shall be entitled, upon request, and without expense to receive copies of
insurance policies and all endorsements thereto and may make reasonable request for
deletion, revision, or modification of particular policy terms, conditions, limitations, or
Page 4 of 12
SPECIFICATION NO.
99-962-06-01
REVISED: AUG. 2005
exclusions (except where policy provisions are established by law or regulation binding
either of the parties hereto or the underwriter of any of such policies). Upon such request
by the City, the Vendor shall exercise reasonable efforts to accomplish such changes in
policy coverage and shall pay the cost thereof. All insurance and bonds shall meet the
requirements of the bid specification and the insurance endorsements stated below.
17.5. Vendor agrees that with respect to the required insurance, all insurance Agreements and
certificate(s) of insurance will contain and state, in writing, on the certificate or its
attachment, the following provisions:
17.5.1. Provide for an additional insurance endorsement clause declaring the Vendor's
insurance as primary.
17.5.2. Name the City and its officers, employees, and elected officials as additional
insured's, (as the interest of each insured may appear) as to all applicable
coverage.
17.5.3. Provide thirty days notice to the City of cancellation, non -renewal, or material
changes
17.5.4. Remove all language on the certificate of insurance indicating:
17.5.4.1. That the insurance company or agent/broker shall endeavor to notify
the City; and,
17.5.4.2. Failure to do so shall impose no obligation of liability of any kind upon
the company, its agents, or representatives.
17.5.5. Provide for notice to the City at the addresses listed below by registered mail:
17.5.5.1. Vendor agrees to waive subrogation against the City, its officers,
employees, and elected officials for injuries, including death, property
damage, or any other loss to the extent same may be covered by the
proceeds of insurance.
17.5.6. Provide that all provisions of this Agreement concerning liability, duty, and
standard of care together with the indemnification provision, shall be underwritten
by contractual liability coverage sufficient to include such obligations within
applicable policies.
17.5.7. All copies of the Certificate of Insurance shall reference the project name, bid
number or purchase order number for which the insurance is being supplied.
17.5.8. Vendor shall notify the City in the event of any change in coverage and shall give
such notices not less than thirty days prior notice to the change, which notice
shall be accomplished by a replacement Certificate of Insurance.
17.5.9. All notices shall be mailed to the City at the following addresses:
Assistant City Manager City Attorney
City of Round Rock City of Round Rock
221 East Main Street 309 East Main Street
Round Rock, TX 78664-5299 Round Rock, TX 78664
17.6. Approval, disapproval, or failure to act by the City regarding any insurance supplied by the
Vendor shall not relieve the Vendor of full responsibility or liability for damages and
accidents as set forth in the these requirements. Neither shall bankruptcy, insolvency, or
denial of liability by the insurance company relieve the Vendor from liability.
17.7. If the Vendor employs, contracts with or otherwise permits any other individual or entity to
perform any of the obligations of the Vendor, then any and all of these individual or entities
shall be bound by the same insurance requirements as the successful bidder.
18. WORKERS COMPENSATION INSURANCE: Texas Labor Code, Section 406.098 requires workers'
compensation insurance coverage for all persons providing services on building or construction
projects for a governmental entity.
Page 5 of 12
SPECIFICATION NO.
99-962-06-01
REVISED: AUG. 2005
18.1. Certificate of coverage ("certificate") - A copy of a certificate of insurance, a certificate of
authority to self -insure issued by the Texas Workers' Compensation Commission, or a
coverage agreement (TWCC-81, TWCC-82, TWCC-83, or TWCC-84), showing statutory
workers' compensation insurance coverage for the person's or entity's employees providing
services on a project, for the duration of the project.
18.2. Duration of the project - includes the time from the beginning of the work on the project until
the CONTRACTOR'S /person's work on the project has been completed and accepted by
the OWNER.
18.3. Persons providing services on the project ("subcontractor") in Section 406.096 - includes all
persons or entities performing all or part of the services the CONTRACTOR has undertaken
to perform on the project, regardless of whether that person contracted directly with the
CONTRACTOR and regardless of whether that person has employees. This includes,
without limitation, independent contractors, subcontractors, leasing companies, motor
carriers, owner -operators, employees of any such entity, or employees of any entity, which
furnishes persons to provide services on the project. "Services" include, without limitation,
providing, hauling, or delivering equipment or materials, or providing labor, transportation, or
other service related to a project. "Services" does not include activities unrelated to the
project, such as food/beverage vendors, office supply deliveries, and delivery of portable
toilets.
18.4. The CONTRACTOR shall provide coverage, based on proper reporting of classification
codes and payroll amounts and filing of any coverage agreements, that meets the statutory
requirements of Texas Labor Code, Section 401.011(44) for all employees of the
CONTRACTOR providing services on the project, for the duration of the project.
18.5. The CONTRACTOR must provide a certificate of coverage to the OWNER prior to being
awarded the contract.
18.6. If the coverage period shown on the CONTRACTOR'S current certificate of coverage ends
during the duration of the project, the CONTRACTOR must, prior to the end of the coverage
period, file a new certificate of coverage with the OWNER showing that coverage has been
extended.
18.7. The CONTRACTOR shall obtain from each person providing services on a project, and
provide to the OWNER:
18.7.1. a certificate of coverage, prior to that person beginning work on the project, so the
OWNER will have on file certificates of coverage showing coverage for all persons
providing services on the project; and
18.7.2. no later than seven calendar days after receipt by the CONTRACTOR, a new
certificate of coverage showing extension of coverage, if the coverage period shown
on the current certificate of coverage ends during the duration of the project.
18.8. The CONTRACTOR shall retain all required certificates of coverage for the duration of the
project and for one year thereafter.
18.9. The CONTRACTOR shall notify the OWNER in writing by certified mail or personal delivery,
within 10 calendar days after the CONTRACTOR knew or should have known, or any
change that materially affects the provision of coverage of any person providing services on
the project.
18.10. The CONTRACTOR shall post on each project site a notice, in the text, form and manner
prescribed by the Texas Workers' Compensation Commission, informing all persons
providing services on the project that they are required to be covered, and stating how a
person may verify coverage and report Zack of coverage.
18.11. The CONTRACTOR shall contractually require each person with whom it contracts to
provide services on a project, to:
Page 6 of 12
SPECIFICATION NO.
99-962-06-01
REVISED: AUG. 2005
18.11.1. and filing of any coverage agreements, that meets the statutory provide
coverage, based on proper reporting of classification codes and payroll amounts
requirements of Texas Labor Code, Section 401.011(44) for all its employees
providing services on the project, for the duration of the project;
18.11.2. provide to the CONTRACTOR, prior to that person beginning work on the
project, a certificate of coverage showing that coverage is being provided for all
employees of the person providing services on a project, for the duration of the
project;
18.11.3. provide the CONTRACTOR, prior to the end of the coverage period, a new
certificate of coverage showing extension of coverage, if the coverage period
shown on the current certificate of coverage ends during the duration of the
project;
18.11.4. obtain from each other person with whom it contracts, and provide to the
CONTRACTOR:
18.11.4.1. a certificate of coverage, prior to the other person beginning work on
the project; and
18.11.4.2. a new certificate of coverage showing extension of coverage, prior to
the end of the coverage period, if the coverage period shown on the
current certificate of coverage ends during the duration of the project
18.12. retain all required certificates of coverage on file for the duration of the project and for one
year thereafter;
18.12.1. notify the OWNER in writing by certified mail or personal delivery, within 10
calendar days after the person knew or should have known, of any change that
materially affects the provision of coverage of any person providing services on
the project; and
18.12.2. contractually require each person with whom it contracts, to perform as
required by paragraphs (A thru G), with the certificates of coverage to be
provided to the person for whom they are providing services.
18.12.3. By signing the solicitation associated with this specification, or providing, or
causing to be provided a certificate of coverage, the Contractor is representing
to the Owner that all employees of the Contractor who will provide services on
the project will be covered by workers' compensation coverage for the duration
of the project, that the coverage will be based on proper reporting of
classification codes and payroll amounts, and that all coverage agreements will
be filed with the appropriate insurance carrier or, in the case of a self-insured,
with the Commission's Division of Self -Insurance Regulation. Providing false or
misleading information may subject the Contractor to administrative penalties,
criminal penalties, civil penalties, or other civil actions.
18.12.4. THE CONTRACTOR'S FAILURE TO COMPLY WITH ANY OF THESE
PROVISIONS IS A BREACH OF CONTRACT BY THE CONTRACTOR
THAT ENTITLES THE OWNER TO DECLARE THE CONTRACT VOID IF
THE CONTRACTOR DOES NOT REMEDY THE BREACH WITHIN TEN
CALENDAR DAYS AFTER RECEIPT OF NOTICE OF BREACH FROM THE
OWNER.
19. LIENS: Vendor agrees to and shall indemnify and save harmless the City against any and all liens
and encumbrances for all labor, good and services which may be provided under the City's
request by Vendor or subcontractors and if the City requests, a proper release of all liens or
satisfactory evidence of freedom from liens shall be delivered to the City.
20. VENUE: Both the City and the Vendor agree that venue for any litigation arising from a resulting
contract shall lie in Williamson County.
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21. INDEPENDENT VENDOR: It is understood and agreed that the Vendor shall not be considered
an employee of the City. The Vendor shall not be within protection or coverage of the City's
Worker' Compensation insurance, Health Insurance, Liability Insurance or any other insurance
that the City from time to time may have in force and effect.
PART II
SPECIFICATIONS
1. SCOPE: This specification describes auctioning services to dispose of surplus, seized and
abandoned property. Services shall include, but not limited to picking up, holding, securing and
auctioning off such property to the general public within a specified time period. The successful
bidder shall be a licensed Auctioneer in the business of providing the auctioning services identified
herein.
2. STATEMENT OF INTENT: It is the intent of the City to establish a multiple year contract with a
responsible bidder to provide auctioning services as specified. The initial contract shall be for a
twelve-month period with four consecutive twelve-month extension periods, as mutually agreed
upon.
3. BIDDER QUALIFICATIONS: The opening of a bid will not be construed as the City's acceptance
of such bidder as qualified and responsible. The City reserves the right to determine the best
value for the City from information submitted with the bid. All bidders shall:
3.1. Be recognized as a "local experience" Auctioneer. Local "following" or clientele is of
utmost importance in promoting active bidding and high sales return; therefore, the term
"local experience" shall be defined as including the State Of Texas.
3.2. Auctioneer License: Bidder shall provide proof of current license certified by the State of
Texas for Auction Services.
3.3. References: Provide the name, address, telephone number and point of contract of at
least three completed commercial auction references. References shall be for completed
projects that are similar in scope of service (Government preferred) to that being required
in this specification. Any negative responses received may result in disqualification of bid.
3.4. Identify any subcontractors to be used for this service. Experience, qualifications and
references of the subcontractors shall be submitted. The City shall approve all
subcontractors prior to any work being performed.
4. SITE VISITS: The City and/or their representatives will have the right to visit and inspect the
bidders facility any reasonable time prior to award and/or to conduct unannounced visits during
the performance of the service.
5. FACILITIES: The Vendor shall provide a properly zoned, fenced, graveled or hard surfaced,
secured sales and storage building(s) and/or lot(s) located within a 50 -mile radius of the City of
Round Rock, TX.
6. PROPERTY PICK-UP: The Vendor shall pick-up property from designated locations as specified
by the City's representative.
NOTE: CITY OWNED EQUIPMENT SHALL NOT BE USED FOR ANY REASON WHILE BEING
STORED WAITING SALE.
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7. ADVERTISING AUCTION: The Vendor shall, without cost to the City, arrange publication of
auction advertisements. Vendor shall publicize the auction in the Round Rock Leader and the
Austin American Statesman a minimum of once per sale. The public notice shall be advertised a
minimum of 5 days prior to the date of each sale and shall include "Terms and Conditions of
Sales" as specified in Paragraph 13, Part II. Auction brochures shall be mailed to prospective
bidders on the Auctioneers mailing list.
8. PROPERTY TURNOVER: Property shall be auctioned not later than 120 days after it as been
received by the Vendor for disposal.
9. PROPERTY SALES: Property provided to the Vendor for auction shall be auctioned "As Is
Condition" without warranty. _
10. VEHICLES AND EQUIPMENT: Only qualified Vendor personnel shall operate Vehicles and
equipment at the time of pick-up from City locations and on the day of sale for the purpose of
driving them through the auction line.
11. CITY PREVIEW OF RESPONSIBILITY:
11.1. The City will furnish the Vendor with an itemized list of all property for auction.
11.2. The City may, at its option, withdraw and retrieve any item prior to date of sale.
11.3. The City retains the right to set a minimum bid amount on select equipment and items.
11.4. The City reserves the right to sell, on its own, dispose of, or transfer to other
governmental agencies any item it chooses not to be sold by the auctioneer.
12. VENDOR (AUCTIONEER) RESPONSIBLITIES: The Vendor shall:
12.1. Coordinate auctions with the City at least 30 days before an auction is held.
12.2. Register prospective buyers and provide any handouts necessary for the efficient conduct
of each auction including, but not limited to buyer's identification tag.
12.3. Include the contents of "Terms and Conditions of Sale" referenced in paragraph 13, Part
II in all advertisements.
12.4. Provide a full time licensed professional auctioneer to conduct all auctions.
12.5. Provide a minimum of two persons to register all interested buyers at all auctions.
12.6. Provide a clerk to log prices and buyers during the auctions.
12.7. Provide sufficient staff at each auction to monitor buyers and to maintain adequate
records.
12.8. Comply with all applicable legal requirements for conducting auction sales in the State of
Texas.
12.9. Vendor shall be responsible for ensuring safe business practices are utilized to ensure the
safety of the general public. Equipment shall be started only. Units shall not be moved,
driven by prospective buyers or non-qualified personnel.
13. DOCUMENTATION REQUIRED: The Vendor shall provide the City, within three working days
following a sale, copies of the following:
13.1. Three copies of statement indicating all revenue (the total amount of sales collected),
sales tax due and grand total plus all of the proceeds due for each complete auction.
13.2. Itemize list of total amounts purchased by each buyer and total due per each buyer plus a
grand total of sales, sales tax and total due.
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13.3. A list of all buyers that registered for each auction by buyer number order. This list shall
include name and mailing address for each buyer.
13.4. A list in lot number order showing buyer, a description of all items sold, the quantity of
each lot, the amount paid for each item, and the amount paid for each lot.
14. SALES, BUSINESS RECORDS AND AUDITS:
14.1. Vendor shall promptly record each sale in writing an in accordance with generally
accepted principles for operation of auction houses showing the minimum bid, the amount
of the successful bid, the name, address and telephone number of the buyer, and the
date of the sale.
14.2. During the term of the contract, the Vendor shall maintain the City's auction records for
each day; thereof, in accordance with generally accepted accounting principles, a full,
complete and accurate permanent record, an account of all sales and of all sums of
money paid or payable for or on account or arising out of business transactions
conducted on behalf of the City. Such records shall include, but not be limited to sales
slips, customer credit records, cash register tapes, invoices, bank account records and
other documents of business, herein after referred to as "business records". Vendor shall
be responsible for any returned checks used for the purchase of City property.
14.3. Vendor shall preserve such business records and supporting documents for a 36 month
period after the expiration of each 12 month period.
14.4. Upon request by the City, Vendor shall deliver within 72 hours such business record to the
City or its designated agent or representative for the purpose of having Vendor's business
audited. Vendor specifically authorized for the City, its employees, agents and designated
representatives to conduct an audit of the business and agrees to fully assist the City
wherever possible.
14.5. The City reserves the right as part of its audit, to -duplicate and retain copies of Vendors
business records.
15. REPORTS: The Vendor shall provide a statement that list all property sold, the sales price of each
item, the names and addresses of the buyers and the total of all costs to the City with respect to
the auction.
16. TERMS AND CONDITION OF SALE:
16.1. All bidders are required to register prior to the auction. The auctioneer shall have the right
to reject the bid from anyone who is not registered
16.2. The City reserves the right to refuse any bid considered unreasonable.
16.3. Registered bidders with tax exempt status shall include the tax exempt number on the
registration form. NOTE: THE SALES TAX CANNOT BE REIMBURSED ONCE THE
SALE IS COMPLETE.
16.4. Unless otherwise advertised and stated prior to the auction, all purchases shall be paid in
full at close of sale by cash, cashier's check, or personal/company check accompanied by
Bank's "Letter of Guarantee". Bidders shall present letters of guarantee at time of
registration.
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16.5. Buyer tags shall be issued the day of the auction to all registered bidders.
16.6. At the time of the sale, the buyer's number and the price of item sold is announced by the
auctioneer. The auctioneer is the only authorized person to make changes in price or
quantity and at this time only.
16.7. The City reserves the right to withdraw items from the sale even after they are advertised.
16.8. Announcements made by the auctioneer on the day of the sale take precedence over any
printed matter pertaining to the auction.
16.9. Each lot/item shall be sold "As Is, Where Is", with all faults and defects. No warranties as
to condition, fitness of use, or merchantability are intended or implied. Bidders shall be
responsible for closely checking each item and buyers should understand that they are
buying the property entirely upon their own examination or opinion, not withstanding
comments, verbal or written, to the contrary.
16.10. Each lot/item purchased immediately becomes the responsibility of the buyer at the time
the auctioneer deems the lot/item sold.
16.11. The buyer is responsible for removal of equipment from the auction yard, building or
storage area. The City will not provide towing, lifting or loading services.
16.12. City employees and their immediate family members shall be permitted to bid.
PART IV
INVOICE AND PAYMENT
1. INVOICING AND PAYMENTS: Payment shall be based on the percentage quoted for Auctioneer
Services and the total gross sales for property sold at Auction. The Vendor shall collect the
proceeds for the sale and submit proceeds with sales receipts and invoice to the address listed
below. If no action sales are completed during any month a negative sales report shall be
provided to the City.
City of Round Rock
Accounts Payable
221 East Main Street
Round Rock, TX78664-5299
2. PROMPT PAYMENT POLICY: Payments will be made within thirty days after the city receives the
supplies, materials, equipment, or the day on which the performance of services was completed
or the day on which the City receives a correct invoice for the supplies, materials, equipment or
services, whichever is later. The Vendor may charge a late fee (fee shall not be greater than that
which is permitted by Texas law) for payments not made in accordance with this prompt payment
policy; however, this policy does not apply to payments made by the City in the event:
2.1. There is a bona fide dispute between the City and Vendor concerning the supplies,
materials, or equipment delivered or the services performed that causes the payment to
be late; or
2.2. The terms of a federal contract, grant, regulation, or statute prevent the City from making
a timely payment with Federal Funds; or
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2.3. There is a bona fide dispute between the Vendor and a subcontractor or between a
subcontractor and its suppliers concerning supplies, material, or equipment delivered or
the services performed which caused the payment to be late; or
2.4. The invoice is not mailed to the City in strict accordance with instructions, if any, on the
purchase order or contract or other such contractual agreement.
3. OVERCHARGES: Vendor hereby assigns to purchaser any and all claims for overcharges
associated with this agreement which arise under the antitrust laws of the Untied States, 15 USGA
Section 1 et seq., and which arise under the antitrust laws of the State of Texas, Bus. and Com.
Code, Section 15.01, et set.
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