MEMORANDUM
FINANCE DEPARTMENT
TO: John Phillips, City Manager Number: 014 – 08
SUBJECT: Ebay Auction Solved Services Date: 7 – 19 - 07
Attached is a contract with Auction Solved for eBay auction services. The contract is identical to their contract with the City of Moline.
Auction Solved will sell thirteen vehicles from the City’s Public Works Fleet Services division through eBay as a test of the eBay process. Auction Solved has been selling for the City of Moline for two years and has been very successful. The anticipated sale price of each vehicle is $5,000. Auction Solved will receive up to a $315 commission per vehicle for their services.
Benefits to outsourcing through Auction Solved:
• 3700+ successful auctions listed on Ebay to-date.
• Gain worldwide exposure to your auction.
• Reduce overhead by avoiding hiring on additional staff or tying up current employees.
• Avoid the tedious auction process (listing, pictures, shipping, questions, disputes, etc).
• Quickly and efficiently liquidate surplus/inventory.
• Company Power-Seller status with 99% positive feed-back gives buyers much more confidence when buying.
Recommendation:
Council authorize the City Manager to contract with Auction Solved for E-Bay auction services.
Submitted by: Tim Banks, Auditor
Bill Scott, Finance Director Approved: John Phillips, City Manager
CONSIGNMENT AGREEMENT BETWEEN THE CITY OF THE CITY OF ROCK ISLAND AND AUCTION SOLVED
This Agreement for the provision of the sales and marketing of surplus items belonging to the City of City of Rock Island, made on or about this ____ day of ________________, 2007, is hereby entered into by and between the City of Rock Island, an Illinois municipal corporation (hereinafter referred to as “City of Rock Island”), and Auction Solved, an Illinois based, for-profit corporation (hereinafter referred to as “Auction Solved” or the “Contractor”). The City of Rock Island's office is located at 1528 3rd Avenue, Rock Island, IL 61201. The Auction Solved business office is located at 3637 Avenue of the Cities, Moline, Illinois, 61265.
WITNESSETH:
WHEREAS, the City of Rock Island desires to have certain marketing, sales, project management, advertising and internet brokering services and/or tasks performed, as hereinafter set forth, requiring specialized skills and other supportive capabilities; and WHEREAS, Auction Solved is qualified and possesses sufficient skills and the necessary capabilities, including technical and professional expertise, to provide the personnel, equipment and materials, and to perform the services and/or tasks set forth in this Agreement.
NOW, THEREFORE, in consideration of the terms, conditions, covenants, and performance standards contained or referenced herein, the City of Rock Island and Auction Solved agree as follows:
Contract Scope and Terms
The City of Rock Island and Auction Solved do hereby agree to the following terms and conditions for this Services Agreement:
1. Consignments
Auction Solved shall perform such work and accomplish such tasks, as necessary to provide the sales, advertising, and internet marketing services of consignments as described and shall be designated as Auction Solved’ responsibilities. Consigned items will be available to Auction Solved before the item(s) will be posted for internet sale. Auction Solved will have the final approval of listing all items for consignment.
2. Acknowledgement
The City of Rock Island gives Auction Solved the right to auction, or otherwise market and sell surplus items during the time of listing and until the auction close. The City of Rock Island warrants that the City of Rock Island is the sole legal owner of all items consigned or has the right to sell the item(s) consigned. The City of Rock Island agrees not to sell listed items through any other means during the time item is listed with Auction Solved. The City of Rock Island agrees to
work through Auction Solved for all customer inquiries and issues and agrees not to contact customers directly unless authorized by Auction Solved.
3. Prices, Starting Bids, Postings
The City of Rock Island acknowledges that Auction Solved cannot accurately predict a final sale price. All Auction Solved postings for the City of Rock Island’s surplus/seized items must have the City of Rock Island’s Terms and Conditions listed in the auction (Exhibit A) or the Terms and Conditions must be signed by buyer, collected by Auction Solved and a copy forwarded to the City of Rock Island with payment. The City of Rock Island preauthorizes Auction Solved to list auctions for items up to two times.
4. Payment and Compensation
Both parties agree that Auction Solved’s compensation and the City of Rock Island’s payments under this Agreement shall be based solely on the revenue generated from the sale of property. Payment shall be made to the City of Rock Island after payment is received from the buyer, but no later than 45 days after the auction officially closes. Auction Solved shall remit to the City of Rock Island the sale price of item(s). The City of Rock Island will remit to Auction Solved the commission and fees from the sale of item(s). Auction Solved and the City of Rock Island agree to the commissions outlined in Exhibit B.
5. Unsold and Withdrawn Items
Any items not sold after the two preauthorized listings will be returned by Auction Solved to the City of Rock Island. Withdrawal of an item by the City of Rock Island while it is on a current live auction will require the City of Rock Island to be responsible for any and all fees and commissions payable to Auction Solved for that listing.
6. Misrepresentation and Disputes
If the City of Rock Island knowingly represents an item inaccurately to Auction Solved for listing, the City of Rock Island will accept responsibility for the commissions, fees and expenses for any refused or returned item. If Auction Solved knowingly represents an item inaccurately for listing, Auction Solved is responsible for all commissions, fees and expenses as a result of a returned or refused item. Both parties agree that disputes concerning a question of fact arising under the terms of this Agreement shall be resolved by mutual agreement whenever possible.
7. Termination
Either party may terminate this Agreement, in whole or in part, at any time, by the provision of a written notice of termination to the other party, with notice of a ninety (90) day termination for convenience. The notice of termination must state the reason(s) for termination. The determination of outstanding fees and termination costs shall be negotiated between both parties, prior to actual
CONSIGNMENT AGREEMENT BETWEEN THE CITY OF THE CITY OF ROCK ISLAND AND AUCTION SOLVED
termination of the Agreement; provided that a party may not unreasonably negotiate said fees and costs to avoid or otherwise delay said termination. The financial obligations and responsibilities of the parties incurred hereunder prior to termination shall survive termination. All other causes for termination shall be handled in accordance with the procedures noted under the Terms and Conditions clauses for termination of the contract.
_________________________, Date________ _______________________, Date_________
City of Rock Island Auction Solved
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