26-06 Resolution
RECORD OF RESOLUTIONS
Dayt{)n_L_~_g_,,!!_Blank, Inc., Form f\J():}OQ45
26 -06
Resolution No. Passed .20_
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO DISPOSE OF CERTAIN PROPERTY DECLARED AS
SURPLUS THROUGH INTERNET AUCTION.
WHEREAS, the City of Dublin from time to time has certain property, fleet and
equipment assets that have reached the limit of useful life; and
WHEREAS, it has been determined that the City has certain property, fleet and
equipment assets that are not needed for municipal purposes and/or are obsolete or unfit
for the use for which it was acquired; and
WHEREAS, disposal of these assets through auction maximizes the City's return on
investment in such personal property, fleet and equipment assets; and
WHEREAS, it has been determined that internet auction is a method through which the
City may wish to dispose of these assets; and
WHEREAS, the City has chosen GovDeals as the vendor to implement an internet
auction;
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, State,
of Ohio, 1] of the elected members concurring that:
Section 1. The City Manager is hereby authorized to dispose of personal property, fleet
and equipment assets that have been declared as surplus through the use of internet
auction. Notice of said auction to the highest bidder will be published at least twice in a
newspaper of general circulation, including description as to how the auction(s) will be
conducted, the general terms and conditions of the sale, and the specific number of days
for bidding on the property, which shall be no less than fifteen (15) calendar days,
including Saturdays, Sundays and legal holidays.
Section 2. This auction will be conducted using a third-party contractor, namely:
GovDeals
Robert DeBardelaben, President
5913 Carmichael Place
Montgomery, Alabama 36117
Telephone No.: (334) 277 0372
The contract outlining the specifics of the terms and conditions under which this
contractor will carry out this service to the City can be made available upon request in the
Department of Finance.
Section 3. This Resolution shall take effect and be in force upon passage in accordance
with Section 4.04(a) of the Revised Charter.
Passed this ;:( otf., day of 7J1 a.rc..J.. ,2006
~
Mayor - Presiding Officer
ATTEST:
~~~
Clerk of Council I hereby certify that copIes of this
Ordinance/Resolution were posted in the
City of Dublin in accordance with Section
731.25 of the Ohio Revised Code.
Office of the City Manager
5200 Emerald Parkway. Dublin, OH 43017
CITY OF DUBLIN. Phone: 614-410-4400 · Fax: 614-410-4490
Memo
To: Members of Dublin City Council
From: Jane S. Brautigam, City Manager \, )c'- \-'----''S '(!2,cc~Jv,- ~
Date: March 16, 2006
Initiated By: Marsha I. Grigsby, Director of Finance
Steve Sova. Director of Accounting and Auditing
Re: Resolution 26-06, Authorizing the City Manager to Dispose of Certain Property Declared as
Surplus through Internet Auction,
SUMMARY:
Resolution 26-06 authorizes the City Manager to use an internet auction as the method to dispose of surplus
property. In past years, the City has disposed of surplus property through a traditional live one-day auction. This
process has served the purpose of disposing of property as well as generating some residual revenue to the City.
However, the costs associated with a traditional auction, including staff time and the services of the auctioneer
along with the limited field of prospective buyers generated by the traditional format resulted in discussion of
other alternatives, including the internet auction. As outlined in our memo of February 1, 2006, analysis of the
internet alternative indicates that the costs will compare favorably with the traditional auction.
The Ohio Revised Code (ORC) Section 721.15 (D) requires annual authorization by the legislative authority for
use of this method and prescnbes the required elements of that authorization, including the terms and conditions
of the auction, the length of time and approximate dates the items will be available for bid The ORC also
requires that the resolution identify details of the contract, including contact information for the vendor, if any,
selected to provide the service.
Several vendors currently provide this service. We have entered into a non-exclusive agreement with GovDeals,
the vendor that has been used successfully by the City of Columbus and Franklin and Montgomery counties.
Under the terms of this agreement, the City will pay a commission to GovDeals of 7.5% of sale proceeds;
however, the City will incur no cost unless the items are sold The GovDeals site is well-known among public
entities, and ideally will provide a much broader pool of prospective buyers for City surplus items.
The TITSt group of items will include retired City vehicles and replaced recreation equipment from the Dublin
Connnunity Recreation Center. A resolution identifying all items valued in excess of $1,000 will be brought
before City Council for approval in April with the expectation that the items will be available for bidding on the
internet site in late April c,r early May.
As indicated in oUT earlier memo, a link will be installed on the City's website to take customers directly to the
auction website at www"GovDeals"com A promotional campaign will also be conducted in conjunction with
GovDeals to help generate public awareness and interest in the concept.
RECOMMENDATION:
Staff is recommending passage of resolution 26-06.
Attachments
Anderson's OnLine Documentation Page 1 of2
~ 721.15, Disposition of unneeded, obsolete or unfit personal property.
(A) Personal property not needed for municipal purposes, the estimated value of which is less than one
thousand dollars, may be sold by the board or officer having supervision or management of that
property. If the estimated value of that property is one thousand dollars or more, it shall be sold only
when authorized by an ordinance of the legislative authority of the municipal corporation and approved
by the board, officer, or director having supervision or management of that property. When so
authorized, the board, officer, or director shall make a written contract with the highest and best bidder
after advertisement for not less than two or more than four consecutive weeks in a newspaper of general
circulation within the municipal corporation, or with a board of county commissioners upon such lawful
terms as are agreed upon, as provided by division (B)(1) of section 721 .27 ofthe Revised Code.
(B) When the legislative authority finds, by resolution, that the municipal corporation has vehicles,
equipment, or machinery which is obsolete, or is not needed or is unfit for public use, that the municipal
corporation has need of other vehicles, equipment, or machinery of the same type, and that it will be in
the best interest of the municipal corporation that the sale of obsolete, unneeded, or unfit vehicles,
equipment, or machinery be made simultaneously with the purchase of the new vehicles, equipment, or
machinery of the same type, the legislative authority may offer to sell, or authorize a board, officer, or
director of the municipal corporation having supervision or management of the property to offer to sell,
those vehicles, equipment, or machinery and to have the selling price credited against the purchase price
of other vehicles, equipment, or machinery and to consummate the sale and purchase by a single
contract with the lowest and best bidder to be determined by subtracting from the selling price of the
vehicles, equipment, or machinery to be purchased by the municipal corporation the purchase price
offered for the municipally-owned vehicles, equipment, or machinery. When the legislative authority or
the authorized board, officer, or director of a municipal corporation advertises for bids for the sale of
new vehicles, equipment, or machinery to the municipal corporation, they may include in the same
advertisement a notice of willingness to accept bids for the purchase of municipally-owned vehicles,
equipment, or machinery which is obsolete, or is not needed or is unfit for public use, and to have the
amount of those bids subtracted from the selling price as a means of determining the lowest and best
bidder.
(C) If the legislative authority of the municipal corporation determines that municipal personal property
is not needed for public use, or is obsolete or unfit for the use for which it was acquired, and that the
property has no value, the legislative authority may discard or salvage that property.
(D) Notwithstanding anything to the contrary in division (A) or (B) of this section and regardless of the
property's value, the legislative authority of a municipal corporation may sell personal property,
including motor vehicles acquired for the use of municipal officers and departments, and road
machinery, equipment, tools, or supplies, which is not needed for public use, or is obsolete or unfit for
the use for which it was acquired, by internet auction. The legislative authority shall adopt, during each
calendar year, a resolution expressing its intent to sell that property by internet auction. The resolution
shall include a description of how the auctions will be conducted and shall specify the number of days
for bidding on the property, which shall be no less than fifteen days, including Saturdays, Sundays, and
legal holidays, The resolution shall indicate whether the municipal corporation will conduct the auction
or the legislative authority will contract with a representative to conduct the auction and shall establish
the general terms and conditions of sale. If a representative is known when the resolution is adopted, the
resolution shall provide contact information such as the representative's name, address, and telephone
number.
http://onlinedocs.andersonpublishing.com!oh/lpExt.dll/PO RCI 5b92/64 b 1 164c51 64 fa ?f=tem... 3/15/2006
Anderson's OnLine Documentation Page 2 of2
After adoption of the resolution, the legislative authority shall publish, in a newspaper of general
circulation in the municipal corporation, notice of its intent to sell unneeded, obsolete, or unfit municipal
personal property by internet auction. The notice shall include a summary of the information provided in
the resolution and shall be published at least twice. The second and any subsequent notice shall be
published not less than ten nor more than twenty days after the previous notice. A similar notice also
shall be posted continually throughout the calendar year in a conspicuous place in the offices of the
village clerk or city auditor, and the legislative authority, and, if the municipal corporation maintains a
website on the internet, the notice shall be posted continually throughout the calendar year at that
web site.
When the property is to be sold by internet auction, the legislative authority or its representative may
establish a minimum price that will be accepted for specific items and may establish any other terms and
conditions for the particular sale, including requirements for pick-up or delivery, method of payment,
and sales tax. This type of information shall be provided on the internet at the time of the auction and
may be provided before that time upon request after the terms and conditions have been determined by
the legislative authority or its representative.
HISTORY: RS Bates ~ 1536-118; 96 v 30, ~ 25; GC ~ 3703; 124 v 215; Bureau of Code Revision,
10-1-53; 128 v 1070 (Eff 10-12-59); 149 v H 226. Eff 1-25-2002; 150 v H 204, ~ 1, eff. 11-5-04; 150 v
S 222, ~ 1, eff. 4-27-05.
http://onlinedocs.andersonpublishing.com! oh/lpExt.dll/PORC/ 5b92/64b I /64c5/64 fa ?f=tem... 3/15/2006
Division of Accounting & Auditing
5200 Emerald Parkway Dublin, Ohio 43017-1006
CITY OF DUBLIN Phone: 614-410-4400 Fax: 614-410-4490 Memo
To: Jane S. Brautigam, City Manager
From: Marsha L Grigsby, Deputy City Manager/Director of Finance
Stephen A. Sova, Director of Accounting & Auditing
Date: February 1, 2006
Subject: Online Auction of Surplus City Assets
In December 2005 the City of Dublin entered into an agreement with GovDeals, Inc. to gain
access to their Internet-based auction application. Using this website, surplus City assets being
disposed of can be listed for sale, and potential online buyers may bid to purchase them, in a
manner similar to that pioneered by "E-Bay." GovDeals is unique in that it specializes in
listing only government-entity sellers, primarily from the midwest and south. In Ohio, the
GovDeals online auction service is currently being used by, among others, Lucas,
Montgomery, and Richland Counties, and the municipalities of Lebanon and Middletown.
Staffs investigation suggests several advantages of conducting online auctions as opposed to
holding once-a-year onsite public auctions. First, the potential bidding audience is nationwide,
and a ready customer base exists at the auction site - more buyers usually means prices are bid
up higher. Second, individual items being auctioned can have the bidding kept open for longer
periods of time, several weeks if necessary, in order to allow the greatest possible number of
bidders to participate. Third, items may be auctioned continuously throughout the year,
allowing the City to dispose of assets when needed. This eliminates the need to store surplus
assets and waiting to accumulate enough to hold a viable onsite public auction. GovDeals will
be paid on commission, based on 7.5% of the final selling price of individual items. This
compares favorably with commissions and expenses, ranging from 8% to 11 % oftotal gross
receipts, that the City has paid to auctioneers for previous years' onsite auctions. Standard
terms and conditions apply to all online sales. The City must receive payment from the
successful bidder, in cash or certified check, within five days ofthe close ofthe auction period
for that item. Additionally, the successful bidder is responsible for picking up the item within
ten days after the sale.
Ohio Revised Code Section 721.15 permits Ohio government entities to dispose of surplus
assets by Internet auction, and specifies that the entities' legislative authority must adopt a
resolution once a year declaring its intent to do so. The statute also imposes certain other
requirements that must also be approved by City Council. These include a description as to
how the online auction will be conducted, where to access the auction, and when the auction
Memo to Jane S. Brautigam
February 1, 2006
Page 2 of2
site will be available. Additionally, the familiar Code requirements that items expected to
have a value in excess of one thousand dollars or more need Council's approval to dispose,
and that proper public notice be published, remain in effect. Staff will bring these actions to
Council in the near future once the specifics of the auction process, and a listing assets to
dispose in this manner, have been finalized. Staff from Finance, Public Service, and
Administrative Services are currently working with GovDeals to work out the details.
The auction website can be accessed directly at www.GovDeals.com. A link will also be
installed on the City's web site that will take customers to the auction site. It is expected that a
promotion campaign will also be conducted, in conjunction with GovDeals, to help generate
public awareness and interest in the concept. City staff will be permitted to bid on any item, as
long they do not do so while on duty.
Staff plans to initially auction off a small group of surplus Recreation Center equipment, and
retired City vehicles. These are common items found on the GovDeals auction website, there
seems to be a widespread market for them, and continued storage by the City is becoming a
problem. Ifthis initial online auction proves successful, staff intends to expand the effort into
an ongoing process encompassing all surplus City assets that otherwise would be disposed of
at a public auction.
c: Ron Bums, Acting Director of Streets & Utilities
Matt Earman, Director of Recreation Services