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HomeMy WebLinkAbout1994-021j:\updocs\ord\auct2.o ORDINANCE NO. 2Q02 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO PURCHASE A TRACK -TYPE EXCAVATOR AT A PUBLIC AUCTION; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the City Manager, or his designate, is hereby authorized to bid on and purchase a track -type excavator at an auction administered by a state licensed auctioneer. The excavator is approved in the current budget of the City and the proposed bid will not exceed the funds allocated in the 1993-1994 budget. SECTION II. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 1H_ day of 1994. ATTEST: JENNIFER WALTERS, CITY SECRETARY m APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY .,:yvNiM�r,�1r . DATE: FEBRUARY 1, 1994 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: ORDINANCE TO PURCHASE AGENT PROPERTY AT A PUBLIC AUCTION IN THE AMOUNTEXCEEDING THE $15,000 BID LIMITS AS PER STATE OF TEXAS PROCUREMENT LAW, TEXAS LOCAL GOVT. CODE RECOMMENDATION: We recommend this ordinance allowing acquisition of property from public auction be approved. SUMMARY: Chapter 252, section 022 12 (A) of the Texas Local Govt Code allows for the exemption from the bid process "personal property sold at an auction by a state licensed auctioneer." We are requesting Council authorization for the expenditure of more than $15,000.00 at public auction without specific dollar amounts requiring prior approval by Council. It is our intent to (1) acquire approval by Council prior to attending a public auction for purchase of personal property estimated in excess of $15,000.00 (2) limit any bid to available budget funds (3) notify Council of the type of property acquired and the price paid. A large number of municipalities and other local government agencies are participating in public auction for purchase of heavy equipment trucks, administrative type sedans, Police Criminal Investigation vehicles etc. In many cases the acquisition of equipment through the auction process has proven to be advantageous to the entities involved. In this particular instance our interest is in acquiring a track type excavator currently listed by Miller and Miller Auctioneers Inc. for sale February 11, 1994. A budget package was approved in the amount of $38,500.00 to replace a similar piece of equipment in the Electric Distribution Department. The track machine is a significant upgrade in equipment selection. New cost of this equipment is $53,000.00. We estimate our cost at auction to be near $30,000.00 but not to exceed the $38,500.00 available. We intend to have this piece of equipment inspected by our Fleet Service Department as well as the Electric Distribution Department prior to making any commitment. Electric Distribution FISCAL IMPACT: Funds for the purchase of this specified equipment will come from 1993-94 budget funds for vehicle/equipment replacement. Budget package amount is $38,500.00. CITY COUNCIL REPORT FEBRUARY 1, 1994 PAGE 2 OF 2 Respectfully submitted: loyd V . Harrell City Manager Approved: Name:'Tom D. Shaw, C.P.M. Title: Purchasing Agent 456.aganda