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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: August 4, 2020 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract with Rene’ Bates Auctioneers, Inc., for the management of auction services to the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (IFB 7334 - awarded to Rene’ Bates Auctioneers, Inc., for a five (5) year term). INFORMATION/BACKGROUND This item is for auction services to facilitate the sale of City-owned salvage and equipment for all City of Denton departments. Auction services provide the ability to generate revenue on items that are no longer being used by the departments within the City of Denton. All auction services are operated and ran through the City of Denton Distribution Center. Before proceeding with an auction, pictures are taken and sent out to all departments citywide of all the items being considered for auction and communication is established to ensure no other department can use the items. The items are then documented by Distribution Center staff to ensure all processes have been followed according to the Procurement Policy Manual. The items are typically sold in lots of ‘like items’ to ensure the bidder has everything needed and the City receives the best value. The auction is advertised in the Denton Record Chronicle and posted online for a minimum of 14 days. The Auctioneer oversees facilitating the bidding portion, verifying accurate bids, and collecting payment from the bidder. After the auction is complete, the Auctioneer provides the City a check for the auction less the auctioneer fee. The auction sales offset the Materials Management allocation. Invitation for Bids was sent to 413 prospective suppliers of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Five (5) bids meeting specifications were received. The lowest bid was received by Rene’ Bates Auctioneers, Inc. NIGP Code Used for Solicitation: 208 – Computer Software Notifications sent for Solicitation sent in IonWave: 413 Number of Suppliers that viewed Solicitation in IonWave: 12 HUB-Historically Underutilized Business Invitations sent out: 32 SBE-Small Business Enterprise Invitations sent out: 130 Responses from Solicitation: 5 Rene’ Bates Auctioneers, Inc., is a well-established business and has provided quality work for the City of Denton on previous occasions. They have provided continuity in the service delivery without any City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com complaints from the City of Denton. Staff has been very pleased with timeliness of work and attention to detail. RECOMMENDATION Award a contract with Rene’ Bates Auctioneers, Inc. for the management of auction services to the City of Denton, in a five (5) year term. PRINCIPAL PLACE OF BUSINESS Rene’ Bates Auctioneers, Inc. McKinney, TX ESTIMATED SCHEDULE OF PROJECT This is a five (5) year contract. FISCAL INFORMATION The contracted auction service will be funded through sale proceeds. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Bid Tabulation Exhibit 3: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Dustin Rolfe, 940-349-9438. Legal point of contact: Mack Reinwand at 940-349-8333.