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HomeMy WebLinkAboutReso 119-14 Auction and Disposal Services RESOLUTION NO. 119 - 14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * AUTHORIZING THE CITY MANAGER TO EXECUTE A ONE-YEAR SERVICE AGREEMENT WITH PROPERTYROOM.COM FOR AUCTION AND DISPOSAL SERVICES WHEREAS, the City of Dublin designates seized and forfeited property it desires to auction, and WHEREAS, Property Room.com will pick-up, store and list property for sale by internet auction to the public on one or more domain names selected by them; WHEREAS, once a month Property Room.com will remit to the City of Dublin payment of proceeds (less any fees) arising from completed sales during the prior month. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby adopt a resolution authorizing the City Manager to execute a one-year service agreement with PropertyRoom.com (Exhibit A) for property auction and disposal services. PASSED, APPROVED AND ADOPTED this 15th day of July, 2014, by the following vote: AYES: Councilmembers Biddle, Gupta, Hart, Haubert, and Mayor Sbranti NOES: None ABSENT: None ABSTAIN: None Atinj: Mayor ATTEST: cr City Clerk Reso No. 119-14,Adopted 7-15-14, Item 4.10 Page 1 of 1 PROPERTY 5257 Buckeyiboam Pike,Suite 476 Frederick,MD 21704 VOMEOM Tst:240.230.0229 Fax 240.230.0229 . Federal Tax 8):86-0962102 Property Agreement • Disposition Service A pY p g Version date:2012-May Owner Name: NJPA Agreement: Yes No0 Mailing Address: NJPA Member 8: City,State,Zip Signature Date: Telephone: Automatic Renewal: Yes Cl No 0 Fax: Expiration Date:(if not automatic renewal) Primary Contact Name: Primary Contact Email: Primary Contact Phone: • This agreement("Agreement")documents the terms and conditions under which PropertyRoom.com, Inc.,a Delaware corporation("Contractor"),will provide storage,auction and disposition services ("Services')on behalf of owner named above("Owner"). At request of Owner,Contractor agrees to establish separate accounts under the terms of this Agreement for any other departments or agencies related to Owner for purposes of complying with Owner's financial accounting requirements.Contractor also recognizes the common practice in many jurisdictions to permit related agencies the opportunity to use the services M this Agreement(to"Piggyback")according to the terms and pricing contained herein. Contractor further stipulates that any municipal,county,or state governmental agency located in the same state as Owner may also Piggyback this Agreement.Owner acknowledges Contractor has advised Owner about Contractor's nationally awarded contract vendor status from the National Joint Powers Alliance("NJPA")for Services described in this Agreement,and Owner can obtain complete details of the related RFP process at www.NJPAcoop.org. This Agreement comprises the entire agreement between Contractor and Owner relating to the storage, auction and disposition of property and supersedes any prior understandings,agreements,or representations by or between the parties,be they written or oral. www.PropertyRoom.com Page Ii of 7 . r'! PropertyRoom.com Property Disposition Service Agreement d. Platinum Service.The Platinum Service apples to the auctioning of municipal fleet vehicles and surplus equipment,i.e.,Property.At Owner's request,Contractor will tow the Property to,or take delivery at Yards.Contractor will,on Owner's behalf as its representative,tow,verify drivability, clean,photograph,store and list Property for sale by Internet auction to the public.Contractor offers Platinum Services in conjunction with Subcontractor.Typical Property sold under this service include municipal fleet vehicles such as automobiles end light trucks as well as specialty . equipment such as fire trucks,ambulances,trash collection trucks,and other large public works equipment. 4. Term and Termination. • nature Dale')and,as a. The Agreement will become effective upon signature by the parties(the'Signature I indicated in the top section of this Agreement,will continue for either. (1) An initial term of 1-year from the Signature Date and thereafter will automatically renew for consecutive 1-year terms unless written notice of non-renewal Is provided by either party to f the other at least 60 days prior to the expiration of the then current term;or ' (2) An Initial term specified by the Owner of at least 4-year,after which a renewal e9reement will be required by the Owner.If Owner selects this option,Contractor will send Owner a Notice of Renewal 60 days prior to Agreement expiration. b. The Agreement may be terminated by either party upon 30 days prior written notice to the other • c. The rights of the parties to terminate the Agreement are not exclusive of any other rights and remedies available at law or in equity,and such rights will be cumulative.The exercise of any such right or remedy will not preclude the exercise of any other rights and remedies. d. Notwithstanding any termination by either party of the Agreement,Contractor will continue to remit Proceeds arising under the Agreement(net of amounts owed by Owner to Contractor and to third parties pursuant to the Agreement)in connection with any sales made before the effective date of the termination.At the time of termination,any unsold inventory shall continue to be auctioned by Contractor or disposed on behalf of Owner or returned to Owner,at Owner's election and cost. 5. Allocation of Sales Proceeds. • For all Services,"Winning Bid"means the highest amount committed and paid by any auction participant("Buyer")for a Property Item sold.For the sake of clarity,Winning Bid does not include g. shipping,buyer or other fees,nor does Winning Bid mean or include an amount that a Buyer commits il to pay but later falls to pay. a. Portable Service (1) Sales Price.Total Proceeds paid by Buyer shall be called"Sales Price.'Sales Price shall P include the Winning Bid plus fees(the'Fees'),such as shipping and handling,taxes,and • insurance costs associated with the transaction and paid by Buyer. (2) Transaction Costs.Contractor shall utilize Fees,and not the Winning Bid,to pay or remit costs for shipping and handling,taxes,and insurance. (3) Contractor Commission.For each item of Property,Owner will pay to Contractor a fee(the 'Contractor Commission')equal to 50%of the first$1,000 of the Winning Bid and 25%of the Winning deduction Bid portion,ifyent�of thexceeds Con $tractorr Commission will bye called'OOw Bid ner'Gross after deduction and payment Proceeds'. (4) Processing Costs.Credit card processing costs("Credit Card Cost')and affiliate processing fees(the"Affiliate Fees;which Include commissions and processing costs paid to third 1. parties If such a third party sent the winning bidder to the website),will be borne by Owner and Contractor in proportion to the ratio of Owner's Gross Proceeds to Contractor Commission. Owner's portion of Credit Card Cost and Affiliate Fees(collectively,the "Processing Costs')will be paid by Contractor to applicable third parties on Owner's behalf. (5) Net Proceeds.'Owners Net Proceeds`shall mean the amount of the Winning Bid paid o Owner after deduction and payment of Contractor Commission and Processing Costs. www.PropertyRoom.oan Page 13 of 7 ti !l PropertyRoom.com Property Disposition Service Agreement the first 30 free nautical miles.For over-sized vehicle tows(e.g.,cranes,buses,backhoes, etc.)Contractor will seek competitive bids from several haulers and Owner may choose which company to use.in addition,fees for acquiring titles on behalf of Owner,if any,will be borne entirely by Owner. (3) Buyer Fees.Subcontractor will charge fees to Buyers for additional services,such as lot access,vehicle loading assistance,shipping and transportation,and other services. (4) Storage Fees. For Owner vehicles sold at auction,daily storage fees("Owner Storage Fees) equal$5.00 per vehicle per day.For Release Vehicles,daily storage fees("Citizen Storage • Fees")equal$10.00 per vehicle per day.Owner has the right to charge citizens higher storage fees for Release Vehicles and Contractor will collect such fees along with other • citizen fees set by Owner,such as tow charges,administrative charges,court processing fees,etc.("Citizen Payments"). (5) Net Proceed. "Owner's Net Proceeds"shaft mean the amount of the Winning Bid plus Citizen Payments(If any)paid to Owner after deduction and payment of Contractor Commission,Tow Fees(if any),Owner Storage Fees,Citizen Storage Fees,and any other fees for ancillary services requested by Owner,such as title fees,decal removal,etc. d. Platinum Service.Owner will pay Contractor a"Contractor Commission"and"Tow Fees"as described below.Note:There are no storage fees for Platinum accounts. (1) Contractor Commission. Same as 5c(1). (2) Tow Fees.Same as 5c(2). (3) Buyer Fees. Same as 5c(3). (4) Net Proceeds.Same as 5c(5) 8. Payment Terms.Once a month,Contractor will remit to Owner the Owner's Net Proceeds arising from completed sales and Services rendered during the prior month.Sales are deemed completed when all items comprising a line item on the original manifest or other list of Property are sold.With each payment of Owner's Net Proceeds,Contractor will make available to Owner,online,a report setting forth the following information for the immediately preceding month: a. Completed sales during the prior month,including the total amount of related Proceeds collected, Citizen Remittances(If any),Contractor Commissions,the Owner and Contractor share of Processing Costs,Tow Fees(if any),Owner and Citizen Storage fees(if any),any applicable Title Fees and/or Fuel Surcharges,and Owner's Net Proceeds; b. Other dispositions of Property during the month;and c. The Property,if any,Inventoried by Contractor at end of month. 7. Contractor Obligations.With respect to Contractor's delivery of Services: a. Contractor will exercise due care in the handling and storage of Property; b. Contractor shall keep Property free of liens,security interests,and encumbrances,and shall pay when due all fees and charges with respect to the Property; c. Contractor shall sign and deliver to Owner any UCC-1 financing statements or other documents reasonably requested by Owner, d. Contractor shall obtain and maintain insurance in an amount(determined by Contractor)not less than the replacement value of Property in its possession.The Insurance will cover the Property against fire,theft,and extended coverage risks ordinarily included in similar policies.Contractor shall give Owner a certificate or a copy of each of the above upon Owner's request. e. Contractor agrees,in order to help Owner comply with local public notification statutes,if any,as well as to help Owner achieve higher Winning Bids,to allow Owner to place one or more dickable • links(the"Links")from one or more Owner websftes to www.PropertyRoom.com or other websites Contractor uses for sale of Owner items. Contractor agrees to supply technical requirements for Links to Owner. • 8. Owner Obligations.While this Agreement is not exclusive and has no minimum requirements, Owner will use reasonable efforts to provide Contractor such Property as becomes available for sale. Owner will complete paperwork reasonably necessary to convey custodial possession of Property • www.PropertyRoom.00m . Page i 5 of 7 • PropertyRoom.com Property Disposition Service Agreement of such prohibition or invalidity,without Invalidating the remainder of such provision or the remaining provisions of the Agreement.The Agreement headings are inserted for convenience of reference only and shall not constitute a part hereof. 15. Governing Law.The internal law,and not the law of conflicts,of the state in which Owner is located will govern all questions concerning construction,validity and Interpretation of the Agreement and the performance of the obligations imposed by the Agreement.The proper venue for any proceeding at law or in equity wit be the state and county in which the Owner is located,and the parties waive any right to object to the venue. 18. Further Assurances.Contractor and Owner will each sign such other documents and take such actions as the other may reasonably request in order to effect the relationships,Services and activities contemplated by the Agreement and to account for and document those activities. 17. Relationship of the Parties.No representations or assertions will be made or actions taken by either party that could imply or establish any joint venture,partnership,employment or trust relationship between the parties with respect to the subject matter of the Agreement.Except as expressly provided in the Agreement,neither party will have any authority or power whatsoever to enter into any agreement,contract or commitment on behalf of the other,or to create any liability or obligation whatsoever on behalf of the other,to any person or entity.Whenever Contractor is given discretion in the Agreement,Contractor may exerdse that discretion solely in any manner Contractor deems appropriate.Contractor shall not be liable to Owner for any Losses incurred by reason of any act or omission performed or omitted by Contractor In good faith on behalf of the Owner and in a manner reasonably believed to be within the scope of authority conferred on Contractor by the Agreement, except that Contractor shall be liable for any such Losses incurred by reason of Contractor's fraud, gross negligence or willful misconduct. 18. Force Majeure.Neither party will be liable for any failure of or delay in performance of the Agreement for the period that such failure or delay is due to acts of God,public enemy,war,strikes or labor disputes,or any other cause beyond the parties'reasonable control(each a°Force Majeure"),it being understood that lack of financial resources will not to be deemed a cause beyond a party's control. • Each party will notify the other party promptly of any Force Majeure occurrence and carry out the Agreement as promptly as practicable after such Force Majeure is terminated.The existence of any Force Majeure will not extend the term of the Agreement. This Agreement,including all of the terms and conditions set forth above as well as the data sheet attachments for the four Contractor service offerings and any addendum prepared by the Owner(indicate inclusion of Owner Addendum by checking here: )comprises the entire Agreement between the Parties.This Agreement cannot be modified except in writing by the duly authorized representatives of both parties. OWNER CONTRACTOR Signor Name: Signor Title: Signature: • Date: • • www.PropeityRoom.00rn Page 17 of 7 -`3 ,t�