1994-021j:\~pdocs\ord\auct2.o
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:
SEC ION~. 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 l~ day of ~ ,
1994. ~.T
YO
BOB'CASTLEB~~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
DEBRA A. DRAYOVITCH, CITY ATTORNEY
DATE: FEBRUARY 1, 1994
CITY COUNCIL REPORT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: ORDINANCE ALLOWING THE PURCHASING AGENT TO PURCHASE
PROPERTY AT A PUBLIC AUCTION IN THE AMOUNT EXCEEDING THE
$15,000 BID LIMITS AS PER STATE OF TEXAS PROCUREMENT LAW,
TEXAS LOCAL GOVT. CODE, CHAPTER 252
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 ll, 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
· ' ' t New cost of this equipment is
slgnlflcan upgrade in equipment selection.
$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.
PROGRAMS~ DEPARTMENTS OR GROUPS AFFECTED: Electric Distribution
Division, Motorpool Operations.
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:
City Manager
Approved:
Name: 'Tom 17. Shaw, C.P.M.
Title: Purchasing Agent
456.a~enda