HomeMy WebLinkAbout040416_ca12Department of Central Services
O Consent Agenda
Page 1 of 1
Jefferson County
Board of Commissioners
Agenda Request
To: Board of Commissioners
Philip Morley, County Administrator
From: Matt Stewart, Manager, Fleet Services Division
Agenda Date: April 4, 2016
Subject: Auctioneering Services, Contract Award
Statement of Issue:
Award of contract for the administration of an onsite auction of surplus county property,
including EREtR Fund assets and other property to be declared surplus by any county
department for sales resulting in up to $25,000 in commission and fees.
Analysis/Strategic Goals/Pros It Cons:
The vendor -list procedure was used to obtain quotes from the two listed auctioneers. The
state contract for auction services was considered; if offers lower costs but for online
auctions only. Potential drawbacks of online -only sales include lower sales, difficulty of
selling smaller/less-valuable surplus, year-round workload of dealing with buyers and less
community involvement in the sales. For these reasons, on-site auctions seem most
beneficial at this time.
Fiscal Impact/Cost Benefit Analysis:
James G. Murphy, Inc., proposed flat commission of 5% of gross sales for County -hosted
auctions and 10% of gross sales (plus a $10 title -transfer fee) for sales they host. This,
combined with their proposed buyer's fees, was the lowest quote received. The contract
structure gives the auctioneer a strong incentive to maximize sales, the remainder of the
proceeds of which will be remitted to the county.
Recommendation:
Execute the attached contract.
Department Contact:
Matt Stewart, Manager, Fleet Services Division, 344-9713
Reviewed By:
4morlclipCounty Adminis for
Date
PROFESSIONAL SERVICES AGREEMENT FOR
AUCTIONEER SERVICES
THIS AGREEMENT is entered into between the COUNTY OF JEFFERSON, a municipal corporation, hereinafter
referred to as "the County", and JAMES G. MURPHY, INC., of Kenmore, Washington, hereinafter referred to as "the
Auctioneer", in consideration of the mutual benefits, terms, and conditions hereinafter specified.
1. PROJECT DESIGNATION. The Auctioneer is retained by the County to provide auctioneering services, defined
as everything necessary to administer and hold a sale by auction of vehicles, motorized and non -motorized equipment and
various other surplus property at the County's Hadlock Shop facility, located at 371 Chimacum Road in Port Hadlock,
Washington, except those services described in Exhibit "A" attached hereto as being provided by the County, and
everything necessary for the sale by auction of similar surplus property at the Auctioneer's facility at its regularly
scheduled public auctions.
2. SCOPE OF SERVICES. Auctioneer agrees to perform the services, identified on Exhibit "A" attached hereto,
including the provision of all labor.
3. CONTRACT TERM. The Contract Term for this Contract will be twenty-four months, beginning the date of its
execution by the County, unless terminated earlier pursuant to the Termination or other provisions.
3. COUNTY'S TITLE TO GOODS. County warrants that County has full authority to sell all goods furnished to
the Auctioneer for sale and, further, that County make all necessary documents of title available a minimum of seven
working days prior to the scheduled date of the auction. County warrants that its title to the goods is free and clear of
liens.
4. NO PRIOR TRANSFER OF PROPERTY. County agrees not to sell or in any manner dispose of any of property
represented by the County to the Auctioneer as being planned to be furnished to the Auctioneer for sale at any time
between the date of this agreement and thirty days after the scheduled date of the auction, except that the County may
choose to withdraw property from the auction for any reason, including later sale.
5. RETURN OF UNSOLD GOODS. If the Auctioneer is unable to sell any goods, the County will withdraw the
goods from the auction and will dispose of the goods as it chooses.
6. AGENCY OF AUCTIONEER. Auctioneer is hereby engaged by the County as the agent of the County for
purposes related to the subject sales by auction. The Auctioneer shall have authority to execute bills of sale to buyers at
the auction and to receive, demand and collection auction sale proceeds.
7. RISK OF LOSS. County assumes all risk of loss of goods until risk of loss passes to the buyer at the time of
execution of bill of sale. Auctioneer will not be held responsible for fire, theft, vandalism or other losses to the goods.
8. GOODS SOLD AS -IS, WHERE -IS. County makes no warrantee as to the safety, suitability or fitness of any
auction goods for any purpose and furnishes the auction goods to the Auctioneer for sale as -is, where -is. Auctioneer
agrees to sell all items as -is, where -is, and not to makes claims regarding the safety, suitability or fitness of any auction
goods for any purpose.
9. HAZARDOUS MATERIALS. County assumes and shall indemnify Auctioneer from all risk and all liability
(including costs, expenses, fines, liabilities and clean-up obligations) that may arise from the failure of any of the items
sold or to be sold at auction to comply with federal, state or local law, statute or regulatory agency regulations and
requirements, including but not limited to requirements related to environmental pollutants. The County shall pay all
direct and indirect costs for the cleanup and removal of such goods and any other cost that may be incurred due to the
existence of environmental pollutants either on or in the items sold or on the premises of the County -hosted auction.
2016 AUCTIONEER SERVICES, PAGE 1 OF 8
10. TIME FOR PERFORMANCE. Work under this contract shall commence upon the giving of written notice by
the County to the Auctioneer to proceed and shall be completed according to a schedule agreed upon by the County and
the Auctioneer for each sale.
11. PAYMENT. The Auctioneer shall be paid by the County for completed work and for services rendered under this
agreement as follows:
a. Payment for the work provided by Auctioneer shall be made as provided on Exhibit "B" attached hereto, provided
that the total amount of payment to Auctioneer shall not exceed $25,000.
b. The Auctioneer must submit a single invoice to the County following the conclusion of each sale at the time of
the Auctioneer's payment of auction proceeds to the County. The amount invoiced by the Auctioneer to the
County must be deducted by the Auctioneer from its payment of the auction proceeds to the County.
c. Payment as provided in this section shall be full compensation for work performed, services rendered and for all
materials, supplies, equipment and incidentals necessary to complete the work.
d. The Auctioneer's records and accounts pertaining to this agreement are to be kept available for inspection by
representatives of the County and state for a period of three (3) years after final payments. Copies shall be made
available upon request.
12. OWNERSHIP AND USE OF DOCUMENTS. All documents, drawings, specifications and other materials
produced by the Auctioneer in connection with the services rendered under this agreement shall be the property of the
County whether the project for which they are made is executed or not. The Auctioneer shall be permitted to retain
copies, including reproducible copies, of drawings and specifications for information, reference and use in connection
with Auctioneer's endeavors.
13. COMPLIANCE WITH LAWS. Auctioneer shall, in performing the services contemplated by this agreement,
faithfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the services
to be rendered under this agreement.
14. HOLD HARMLESS AND INDEMNIFICATION. The Auctioneer shall comply with all Federal, State, and local
laws and ordinances applicable to the work to be done under this Agreement. This Agreement shall be interpreted and
construed in accord with the laws of the State of Washington and venue shall be in Jefferson County, WA.
The Auctioneer shall indemnify and hold the County, and its officers, employees, and agents harmless from and shall
process and defend at its own expense, including all costs, attorney fees and expenses relating thereto, all claims,
demands, or suits at law or equity arising in whole or in part, directly or indirectly, from the Auctioneer's negligence or
breach of any of its obligations under this Agreement; provided that nothing herein shall require a Auctioneer to
indemnify the County against and hold harmless the County from claims, demands or suits based solely upon the conduct
of the County, its officers, employees and agents, and; provided further that if the claims or suits are caused by or result
from the concurrent negligence o£ (a) the Auctioneer's agents or employees; and, (b) the County, its officers, employees
and agents, this indemnity provision with respect to claims or suits based upon such negligence, and/or the costs to the
County of defending such claims and suits, etc., shall be valid and enforceable only to the extent of the Auctioneer's
negligence, or the negligence of the Auctioneer's agents or employees.
Claims against the County shall include, but not be limited to assertions that the use and transfer of any software, book,
document, report, film, tape, or sound reproduction of material of any kind, delivered hereunder, constitutes an
infringement of any copyright, patent, trademark, trade name, or otherwise results in an unfair trade practice or an
unlawful restraint of competition.
The Auctioneer specifically assumes potential liability for actions brought against the County by Auctioneer's employees,
including all other persons engaged in the performance of any work or service required of the Auctioneer under this
Agreement and, solely for the purpose of this indemnification and defense, the Auctioneer specifically waives any
2016 AUCTIONEER SERVICES, PAGE 2 OF 8
immunity under the state industrial insurance law, Title 51 R.C.W. The Auctioneer recognizes that this waiver was
specifically entered into pursuant to provisions of R.C.W. 4.24.115 and was subject of mutual negotiation.
15. INSURANCE. Prior to commencing work, the Contractor shall obtain at its own cost and expense the following
insurance from companies licensed in the State with a Best's rating of no less than A:VII. The Contractor shall provide to
the County Risk Manager certificates of insurance with original endorsements affecting insurance required by this clause
prior to the commencement of work to be performed.
The insurance policies required shall provide that thirty (30) days prior to cancellation, suspension, reduction or material
change in the policy, notice of same shall be given to the County Risk Manager by registered mail, return receipt
requested, for all of the following stated insurance policies.
If any of the insurance requirements are not complied with at the renewal date of the insurance policy, payments to the
Contractor shall be withheld until all such requirements have been met, or at the option of the County, the County may
pay the renewal premium and withhold such payments from the moneys due the Contractor.
All notices shall name the Contractor and identify the agreement by contract number or some other form of identification
necessary to inform the County of the particular contract affected.
The Contractor shall procure and maintain for the life of the contract, Workers Compensation Insurance,
including Employers Liability Coverage, in accordance with the laws of the State of Washington.
The Contractor shall procure and maintain for the life of the contract General Commercial Liability
Insurance with a minimum limit per occurrence of one million dollars ($1,000,000) and an aggregate of
not less than two million dollars ($2,000,000) for bodily injury, death and property damage unless
otherwise specified in the contract specifications. The County shall be named as an additional insured
party under this policy. This insurance coverage shall contain no limitations on the scope of the protection
provided and indicate on the certificate of insurance the following coverage:
a. Broad Form Property Damage with no employee exclusion;
b. Personal Injury Liability, including extended bodily injury;
c. Broad Form Contractual/Commercial Liability including completed operations (contractors only);
d. Premises - Operations Liability (M&C);
e. Independent Contractors and Subcontractors; and
f. Blanket Contractual Liability.
The Contractor shall procure and maintain for the life of the contract Commercial Automobile Liability
Insurance with a minimum limit per occurrence of $1,000,000 for bodily injury, death and property
damage unless otherwise specified in the contract specifications. The County shall be named as an
additional insured party under this policy. This insurance shall indicate on the certificate of insurance the
following coverage:
a. Owned automobiles;
b. Hired automobiles; and,
c. Non -owned automobiles.
Any deductibles or self-insured retention shall be declared to and approved by the County prior to the approval of the
contract by the County. At the option of the County, the insurer shall reduce or eliminate deductibles or self-insured
retention or The Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
The Contractor shall include all subcontractors as insured under its insurance policies or shall furnish separate certificates
and endorsements for each subcontractor. All insurance provisions for subcontractors shall be subject to all of the
requirements stated herein.
2016 AUCTIONEER SERVICES, PAGE 3 OF 8
Failure of The Contractor to take out and/or maintain any required insurance shall not relieve The Contractor from any
liability under the Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the
obligations concerning indemnification.
It is agreed by the parties that insurers shall have no right of recovery or subrogation against the County (including its
employees and other agents and agencies), it being the intention of the parties that the insurance policies so affected shall
protect both parties and be primary coverage for any and all losses covered by the above described insurance. It is further
agreed by the parties that insurance companies issuing the policy or policies shall have no recourse against the County
(including its employees and other agents and agencies) for payment of any premiums or for assessments under any form
of policy. It is further agreed by the parties that any and all deductibles in the above described insurance policies shall be
assumed by and be at the sole risk of the Contractor.
It is agreed by the parties that judgments for which the County may be liable, in excess of insured amounts provided
herein, or any portion thereof, may be withheld from payment due, or to become due, to The Contractor until such time as
the Contractor shall furnish additional security covering such judgment as may be determined by the County.
The County reserves the right to request additional insurance on an individual basis for extra hazardous contracts and
specific service agreements.
Any coverage for third party liability claims provided to the County by a "Risk Pool" created pursuant to Ch. 48.62 RCW
shall be non-contributory with respect to any policy of insurance the Contractor must provide in order to comply with this
Agreement.
If the proof of insurance or certificate indicating the County is an "additional insured" to a policy obtained by the
Contractor refers to an endorsement (by number or name) but does not provide the full text of that endorsement, then it
shall be the obligation of the Contractor to obtain the full text of that endorsement and forward that full text to the County.
The County may, upon the Contractor's failure to comply with all provisions of this contract relating to insurance,
withhold payment or compensation that would otherwise be due to the Contractor
16. INDEPENDENT CONTRACTOR. The Auctioneer's relation to the County shall be at all times as an
independent contractor, and nothing herein contained shall be construed to create a relationship of employer-employee or
master -servant, and any and all employees of the Auctioneer or other persons engaged in the performance of any work or
service required of the Auctioneer under this Agreement shall be considered employees of the Auctioneer only and any
claims that may arise on behalf of or against said employees shall be the sole obligation and responsibility of the
Auctioneer.
17. ASSIGNMENT. The Auctioneer shall not sublet or assign any of the services covered by this contract without the
express written consent of the County or its authorized representative. Assignment does not include printing or other
customary reimbursable expenses that may be provided in an agreement.
18. COVENANT AGAINST CONTINGENT FEES. The Auctioneer warrants that he has not employed or retained
any company or person, other than a bonafide employee working solely for the Auctioneer, to solicit or secure this
contract, and that he has not paid or agreed to pay any company or person, other than a bonafide employee working solely
for the Auctioneer, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or
resulting from the award or making of this contract. For breach or violation of this warranty, the County shall have the
right to annul this contract without liability or, in its discretion to deduct from the contract price or consideration, or
otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee.
19. DISCRIMINATION PROHIBITED. The Auctioneer, with regard to the work performed by it under this
agreement, will not discriminate on the grounds of race, color, national origin, religion, creed, age, sex or the presence of
any physical or sensory handicap in the selection and retention of employees or procurement of materials or supplies.
2016 AUCTIONEER SERVICES, PAGE 4 OF 8
20. NON WAIVER. Waiver by the County of any provision of this agreement or any time limitation provided for in
this agreement shall not constitute a waiver of any other provision.
21. TERMINATION.
a. The County reserves the right to terminate this agreement at any time by giving ten (10) days written notice to the
Auctioneer.
b. In the event of the death of a member, partner or officer of the Auctioneer, or any of its supervisory personnel
assigned to the project, the surviving members of the Auctioneer hereby agree to complete the work under the
terms of this agreement, if requested to do so by the County. This section shall not be a bar to renegotiations of
this agreement between surviving members of the Auctioneer and the County, if the County so chooses.
22. NOTICES. Notices to the County of Jefferson shall be sent to the following address:
Fleet Services Division
Department of Central Services
Jefferson County
PO Box 1200 / 371 Chimacum Rd
Port Hadlock, WA 98339
Notices to Auctioneer shall be sent to the following address:
James G. Murphy, Inc.
PO Box 82160 / 18226 68th Ave NE
Kenmore, WA 98028
23. INTEGRATED AGREEMENT. This Agreement together with attachments or addenda, represents the entire and
integrated agreement between the County and the Auctioneer and supersedes all prior negotiations, representations, or
agreements written or oral. This agreement may be amended only by written instrument signed by both County and
Auctioneer.
DATED this day of
JAMES G. MURPHY, CO., INC.
Auctioneer's Representative (Please print)
(Signature)
Title
Date
P
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
Kathleen Kler, Chair
Phil Johnson, Member
David W. Sullivan, Member
Approved as to form only:
David Alvarez
Deputy Prosecuting Attorney
2016 AUCTIONEER SERVICES, PAGE 5 OF 8
Date
ATTACHMENT "A"
SCOPE OF WORK
Auctioneer Responsibilities
1. Sell the County's surplus property, process payment from buyers.
2. Preparation, advertising, determination of lots, conduct of the sale including all terms of sale, determination of
qualification of bidders and completion of all matters related to the auction, all of which shall be solely within the
discretion and control of the Auctioneer.
3. Process transfer of title and other required documentation of sale.
4. Furnish by corporate check to the County the full amount of gross auction proceeds less the payments by the
County to the Auction as specified by this contract, which must be furnished to the County within ten business
days of the conclusion of the auction.
5. Sell the auctioned good with no minimum or reserve prices and without guaranteeing the County any selling price
6. Collect sales tax from buyers as required under state law and remit such sales tax to the state.
7. Accept multiple forms of payment from buyers, including but not limited to cash; personal and corporate checks
of limited amount from residents of and businesses located within Jefferson County; personal and corporate
checks of any amount when accompanied by a letter of bank guarantee; and credit cards from at least two major
providers (VISA, MasterCard, Discover or American Express).
8. Restrict buyers to a time period of one hour following the final sale to make all payments in full; and a further
time period of one hour during which all sold items must be removed from County property by their respective
buyers.
9. Ensure that the Auctioneer and the individual auctioneers workings for the Auctioneer are licensed and bonded as
required by the laws of the State of Washington for providing such services.
10. Use the County's inventory of auction items to advertise the auction and to ready its auction -management
computer system.
11. Within the several days preceding the auction, furnish the County a sketch of its preferred layout of the auction
items and support equipment on an overhead photo or drawing of the County's facility.
12. Report to the County the auction results in sufficient detail to permit the County's allocation of costs and proceeds
among the disparate County agencies and departments furnished items for auction based on actual sales amounts
allocated to each of those entities.
County responsibilities for County -hosted auction event
1. Preliminary and final inventories of auction items, including all known information (description, year, make,
model, serial number and condition, where applicable);
2. Digital pictures of all auction items;
3. County shop facility with small parking area (additional parking to be on roads) and a defined area for auction
event that is closed to normal county business beginning the morning of the day preceding the auction;
4. An overhead photo or drawing of the County's facility with County's suggested overall event layout;
5. Signage in front of the County shop facility on a heavily trafficked road advertising the date of the auction;
6. Legal advertisements required by law for disposal of County surplus property (but not general advertisements of
the auction event);
7. Sweeping of the auction area prior to setup;
8. Cleaning of auction items, particularly interior and exterior cleaning of vehicles;
9. For display with each applicable item, printed copies of maintenance/repair history of all vehicles and equipment
for which such history is available;
10. Set up of facility with lots arranged according to Contractor's directions;
11. Portable bathroom facilities onsite for the duration of the auction day and their cleaning/collection;
2016 AUCTIONEER SERVICES, PAGE 6 OF 8
12. Garbage cans and the collection and disposal of collected refuse;
13. Closure/security of the remainder of the county facility during the event;
14. 110 -volt power for use by the Contractor for the duration of the auction day;
15. A single phone line for use by the Contractor with payment -processing equipment;
16. County -owned and -operated forklift for the duration of the auction day;
17. Mechanical staff for the duration of the auction day to aid in keeping vehicles/equipment running and to operate
the forklift to load sold items; and
18. Sheriff's deputy for the duration of the auction day to provide general event security.
Note that the County's failure to provide any of the above items, particularly those that could directly or indirectly impact
the amount of sales, will not be cause for the Contractor to file any claim against the County. However, the interests of the
County and the Contractor align in seeking higher sales amounts, and the County hopes to accommodate any reasonable
requests or suggestions by the Contractor for improvement in the provision of any of the above items.
County responsibilities for participation in auctioneer's regular auction events
1. Preliminary and final inventories of auction items, including all known information (description, year, make,
model and condition, where applicable);
2. Digital pictures of all auction items;
3. Legal advertisements required by law for disposal of County surplus property (but not general advertisements of
the auction event);
4. Cleaning of auction items, particularly interior and exterior cleaning of vehicles;
5. Delivery of lots to the auctioneer's facility in accordance with the Contractor's directions; and
6. For display with each applicable item, printed copies of maintenance/repair history of all vehicles and equipment
for which such history is available.
Note that the County's failure to provide any of the above items, particularly those that could directly or indirectly impact
the amount of sales, will not be cause for the Contractor to file any claim against the County. However, the interests of the
County and the Contractor align in seeking higher sales amounts, and the County hopes to accommodate any reasonable
requests or suggestions by the Contractor for improvement in the provision of any of the above items.
2016 AUCTIONEER SERVICES, PAGE 7 OF 8
ATTACHMENT `B"
COMPENSATION
The Contractor will charge no fees, charges or costs other than those proposed here to the County nor to any
buyer. Only fees indicated in the Contractor's proposal to the County, which is attached and made a part hereof, may be
charged to the County or to any Buyer. No fee, surcharge or other cost not listed in the Contractor's proposal will be
charged.
While the total fees, charges and costs charged by the Contractor to the County will be calculated by application of the
amounts proposed below to the final auction sales amounts, the sum total of all such fees, charges and costs to the County
is subject to a strict limitation. The sum total of Fees to be Charged to the County... (Subsections A and B of the quote
worksheet) when calculated on the final auction results must not exceed $25,000; if the auction sales results in a
calculated total charge to the County in excess of $25,000, the County's entire obligation to the Contractor and, therefore,
the Contractor's cumulative deduction from the proceeds of all sales under the resultant contract will be limited to
$25,000. This cap on the Contractor's deduction from the auction proceeds will apply to the entire auction proceeds even
when those proceeds are accrued separately to various county departments and agencies including the cumulative
proceeds from multiple sales whether hosted by the County or the Contractor.
A. FEES TO BE CHARGED TO THE COUNTY BY DEDUCTION FROM THE AUCTION PROCEEDS FROM
COUNTY -HOSTED EVENT (CAPPED TOGETHER WITH SUBSECTION B AT $25,000 FOR ALL SALES UNDER
THE RESULTANT CONTRACT)
1. Commission percentage charged to County for non -titled heavy equipment 5%
2. Commission percentage charged to County for titled vehicles and trailers
3. Commission percentage charged to County for all other items
5%
5%
B. FEES TO BE CHARGED TO THE COUNTY BY DEDUCTION FROM THE AUCTION PROCEEDS FROM SALE
AT CONTRACTOR'S REGULAR AUCTION EVENT (CAPPED TOGETHER WITH SUBSECTION A AT $25,000
FOR ALL SALES UNDER THE RESULTANT CONTRACT)
1. Commission percentage charged to County for non -titled heavy equipment 10%
2. Commission percentage charged to County for titled vehicles and trailers 10%
3. Commission percentage charged to County for all other items 10%
4. Flat fee charged to County for titled vehicles and trailers $10.00
C. FEES TO BE CHARGED TO BUYERS
1. Commission percentage charged to buyer for non -titled heavy equipment 10%
2. Commission percentage charged to buyer for titled vehicles and trailers 10%
3. Commission percentage charged to buyer for all other items 10%
4. Additional percentage fee charged to buyer for online purchases 3%
2016 AUCTIONEER SERVICES, PAGE 8 OF 8