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Home My WebLink About2004 06 28 Consent 201 COMMISSION AGENDA ITEM 201 Consent X Informational Public Hearing Regular June 28. 2004 Regular Meeting f- Mgr. 1 Authorization 9i2 Dept. REQUEST: Information Services requests the Commission approve staff recommendation of GovDeals for disposal of surplus assets and authorize City Manager to enter into a contract with GovDeals on behalf of the City. PURPOSE: The purpose of this item is to provide the commission with information and options relative to surplus assets disposal and online auctions; and to obtain commission authorization to proceed with staff recommendation for future handling of surplus asset disposal as well as obtain authorization for City Manager to enter into a contract with GovDeals on behalf of the City. CONSIDERATIONS: Live auctions vs. online auctions. Many cities and counties throughout the country are moving to online auctions. Online auctions bring in more money, have more exposure, and less time and effort is spent on items we want to get rid of. The exposure is much greater than live auction and more convenient for the buyer. Currently, our surplus assets are disposed of in one of the following ways: . Destroy - taken to dump or disposal company for destruction/disposal. . Auction - we use Gideon live auctions. S:\Information _ Services\Admin _ Docs\Agenda Items\FY 2004\2004 June\062804 _ COMM _ Consent_ 201_ Surplus_Assets _auction _ options2.doc CITY OF WINTER SPRINGS CITY COMMISSION June 28, 2004 INFORMA TIONAL XXX PAGE20F2 Online auctions are a convenience for the buyer as well as the seller; buyers view items online; no need to physically travel to an auction site; weather is not an issue. Live auctions such as the George Gideon auction require buyers to travel to the auction site; weather can affect auction; customers get to touch and feel the items. In researching this issue, we looked at several options, comparing certain criteria for each. Options reviewed: . GovDeals (online) - GovDeals is an online auction service specializing in the auction of government surplus assets. They have global exposure on the internet. Buyers to this site expect that the items up for auction are more than likely used, not brand new. . Ebay (Online) - Ebay is an online auction service for any type of equipment both new and used. It has global exposure on the internet. They have many fees for their servIces. . Sequiam Online Auction Product (Online) - This is a software application that the City can purchase for its own use. . George Gideon Auction (Live) - City must collect and transport assets to auction location in Zellwood, FL. Buyers must travel to the auction site as well. Buyers to this site expect that the items up for auction are more than likely used, not brand new. Criteria considered: . Cost o online auction fees vary; there are insertion fees, option reserve price fees, picture service fees, final value fees, transaction fees, listing upgrade fees, and in the case of Sequiam Online Auction Product, there is a cost to purchase the software o live auction fees ~ George Gideon Auction charges the City 10% of sale price for each item. Remaining proceeds are returned to the City. . Payment Options - varies, Pay Pal, check, cash, credit card o online auction payment options vary but include Pay Pal, check, cash, credit card, cashiers or certified check o live auction payment options are entirely handled by the auction company, George Gideon Auctions. They collect payment from bid winner and mail a proceeds check to the City . Listing Duration - varies, some 10 -14 days, some unlimited · Exposure of item listing to potential buyer - varies, local or global . Storage of item until sold - o online auction items must be stored by the department owning the asset until sold. CITY OF WINTER SPRINGS CITY COMMISSION June 28, 2004 INFORMATIONAL XXX PAGE 3 OF 3 o live auction items must be stored by the department owning the asset until items are taken to auction on a monthly basis. · Transportation & Shipping o online auction items - buyer arranges and pays for A fair amount of time and manpower is currently spent getting items ready for the George Gideon auction and dump each month. Paperwork must be processed regardless of which process is used. Approvals go from department personnel to department head to City Manager to Commission; Information Services manages this process to ensure proper approvals are received at each level. Approvals are then compiled; surplus asset delivery is coordinated by Information Services with Public Works personnel. Information Services ensures delivery of surplus assets from City to the Auction site, dump, or disposal company. This is being done on a monthly basis to keep storage requirements and number of surplus assets low. Findings: GovDeals was found to be a better fit for the City for the following reasons: · Simple fee structure; also, nothing owed if item doesn't sell · City can take photos and post its own items immediately · Assistance is provided for valuing/pricing item (determining market value of item) · Advertising is free · Up to 6 pictures per item can be posted (50k file size per photo) · Training included · Monthly detailed invoice provided · Buyer must make arrangements for picking up the item · Many government clients happy with this service and state that they are actually getting more for their items than through previous disposal methods. FUNDING: None if staff recommendation is approved. RECOMMENDATIONS: Staff is recommending that: · Commission authorize GovDeals online auction service for disposal of City surplus assets · Commission authorize City Manager to enter into a contract with GovDeals on behalf of the City · Items be posted for maximum of 30 days · Items not sold within 30 days be taken to George Gideon Auctions for the next available auction date ATTACHMENTS: None COMMISSION ACTION: