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1i Public Surplus Auction Web Services Joint Powers Agreement ! ' ii CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 1591 Park Road Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us 1-i MEMORANDUM TO: Todd Gerhardt, City Manager FROM: Richard Rice, Information Systems Coordinator DATE: February 8, 2006 D~. SUBJ: Approval of Joint Powers Agreement, City of St. Paul- Public Surplus Auction Web Services BACKGROUND The City has been relying on the use of public auctions staffed by city employees to dispose of all accumulated, surplus equipment. This practice has proven to be labor intensive and has yielded limited returns. In an effort to maximize the revenue generated through the sale of surplus items and simplify the disposal process, staff is requesting the use of a web hosted service. An agreement has been established by the City of St. Paul with Public Surplus for surplus auctioning services. This agreement has been made available to other municipalities at a reduced rate. There are no costs associated for posting items to the site. The vender extracts a fee of7.5% for any item sold. The city currently uses an auction service to dispose of excess vehicles, which charges 15% for items that sell for under $1,000 and 10% for items that sell for over $1,000. The City Attorney has reviewed'this agreement, and is satisfied with the form and intent. RECCOMENDATION Staff recommends that the Chanhassen City Council approve the attached "Joint Powers Agreement between the City of Saint Paul and the City of Chanhassen." Approval of this item requires a simple majority vote of the city council. ATTACHMENT 1. Joint Powers Agreement The City of Chanhassen . A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play. JOINT POWERS AGREEMENT Between the City of Saint Paul and the City of Chanhassen THIS AGREEMENT, is made and entered into this _ day of February, 2006 by and between the City of Saint Paul (Ramsey County, Minnesota) hereinafter referred to as "the City" and the City of Chanhassen (Carver County, Minnesota), whose address is 7700 market Blvd., PO Box 147, Chanhassen, MN 55317. WHEREAS, the City of Saint Paul and Chanhassen, pursuant to the provisions of Minnesota Statute 471.59 are authorized to enter into an agreement to exercise jointly the governmental powers and functions each has individually; and WHEREAS, the City's Division of Contract and Analysis Services is authorized to provide purchasing, contracting, surplus disposal, and other services to other local governments to achieve operating efficiencies and to secure more favorable prices and conditions; and, WHEREAS, Chanhassen wishes to take advantage of these benefits and services; NOW, THEREFORE IT IS HEREBY AGREED, by and between the parties hereto as follows: 1. The City of Saint Paul, through its Division of Contract And Analysis Services, pursuant to procedures set forth in the Saint Paul city Charter and applicable State Statutes, shall provide purchasing, contracting, and other services offered by the Division to Chanhassen as requested by Chanhassen in accordance with applicable Statutes and policies. 2. As agreed upon with Chanhassen, the Division of Contract and Analysis Services may make purchases or establish other contracts jointly with Chanhassen or make purchases for Chanhassen alone in the performance of the requested services. Regardless of the method selected, the City and Chanhassen shall each make payment directly to any vendors or contractors according to established procedures and shall enter into its own contract or agreement with the vendor. 1 3. Neither party shall assume any responsibility for the accountability of funds expended by the other or the issuance of a purchase order or contract by the other party. 4. Indemnification. Nothing in this Agreement shall constitute a waiver of the rights, privileges and benefits that each party is entitled to under Minnesota Statutes. Each party agrees that it will be responsible for its own acts and/or omissions and those of its officials, employees, representatives, and agents in carrying out the terms of this Agreement and the results thereof to the extent authorized by law and shall not be responsible for the acts and/or omissions of the other party and the results thereof. The liability and monetary limits of the parties, their officials, employees, representatives and agents shall be governed by the provision of the Minnesota Torts Claims Act, Minnesota Statutes Chapter 466, et seq. and other applicable laws. 5. As mutually agreed upon, Chanhassen will compensate the City for actual costs incurred in the provision of th~ services described hereto. 6. Either party to this Agreement may terminate the Agreement with or without cause upon thirty (30) days prior written notice to the other party. 7. Neither party to this Agreement shall assign, delegate or transfer any rights or obligations under this Agreement without prior written consent from the other party. 8. Any amendment or modification to this Agreement shall be in writing and shall not be effective until executed by all parties to this Agreement. 9. This Agreement contains the entire Agreement between the parties with regards to the matters set forth herein. 2 IN WITNESS WHEREOF, the City of Saint Paul and the City ofChanhassen have executed this agreement, the day and year first above-written. CITY OF SAINT PAUL CITY OF CHANHASSEN Christopher B. Coleman, Mayor Director, Office of Financial Services Approved as to form: Assistant City Attorney 3 Council File # Green Sheet # RESOLUTION CITY OF SAINT PAUL, MINNESOTA Presented By Referred To Committee: Date RESOLVED, that pursuant to Minnesota Statutes 471.59, commonly referred to as the "Joint Powers Act," the proper City of Saint Paul officials are hereby authorized and directed to execute the attached joint powers agreement and subsequent renewals, with the City of Chanhassen, said agreement authorizing the City's Division of Contract and Analysis Services to provide purchasing, contracting, surplus disposal, and other services offered by Contract and Analysis Services to Chanhassen as requested, copies of said agreements to be kept on file and/or record in the Office of Financial Services. Yeas Navs Absent 13enanav Hostrom Harr~s HeJ..g~n Lan ry .. lVJ.on tqomery II 'l'nune Requested by Office of Financial Services: By: Matt Smith, Director Adopted by Council: Date Contract & Analysis Services Adoption Certified by Council Secretary Form Approved by City Attorney By: By: Approved by Mayor: Date By: Approved by Mayor for Submission to Council By: Rice, Richard From: Sent: To: Subject: Roger Knutson [RKnutson@ck-law.com] Tuesday, February 07,20062:57 PM Rice, Richard RE: 51. Paul - Joint Powers Aggreement Looks good. Just place it on the city council agenda for council approval. -----Original Message----- From: Rice, Richard [mailto:rrice@ci.chanhassen.mn.us] Sent: Tuesday, February 07, 2006 12:45 PM To: Roger Knutson Cc: Miller, Justin; Gerhardt, Todd Subject: St. Paul - Joint Powers Aggreement I am forwarding these aggreements for your review and approval. They are in regards to utilizing an aggreement that is already in place between the City of St. Paul and Public Surplus, a vendor chosen by St. Paul for hosting a web based public surplus auction site. The service is free for municipalities to post surplus equipment and other items for sale to a targeted market. The vendor normally extracts a fee of 8% of an items sale price for the use of the service. By using the St. Paul contract, the fee is reduced to 7.5%. The City of St. Paul does have several other municipalities on their aggreement already. Please review this documents and let me know what steps are necessary to establish this service. If you are interested, here is the link to the vendors site. www.publicsurplus.com -----Original Message----- From: Linda Camp [mailto:Linda.Camp@ci.stpaul.mn.us] Sent: Tuesday, February 07, 2006 10:30 AM To: Rice, Richard Subject: Re: Public Surplus Aggreements There is no "paperwork" for the Public Surplus contract, per se. I, would however, like to have a joint powers agreement in place that authorizes Chanhassen to use Saint Paul's contracts. I don't have a problem if you start working out arrangements to get set up with Public Surplus while the JP is being processed. I'm attaching the JP documents again. (Note---the resolution is the one I am using to process this JP on my end. You can modify for your Council. I have also attached the proposed JP agreement that we will sign once both Councils have authorized the agreement. Linda J. Camp, Manager Contract & Analysis Services (651) 266-8900 >>> "Rice, Richard" <rrice@ci.chanhassen.mn.us> 2/7/2006 8:46 AM >>> Our directors have viewed a web demo of the services provided by Public Surplus and have given me the go ahead to establish the service for the city. I would like to "piggy-back" on the the aggreement that you established with them. Could you send me the application forms or other 1 ublic Surplus Help I Login Categories Building Clothing Collectibles Computers Electronics Food Supply Furniture Heavy Equipment Industrial Equipment Jewelry Motor Pool Music and Arts Office Equipment Outdoor Equipment Real Estate School Supplies Sporting Goods tip:/ /www.publicsurplus.com/ I Surplus@ Register to become part of Public Surplus Looking for a specific item? Click on the button below to become a buyer Let us help you find what you are looking for. All This is a trusted site, you know who you are buying from Public Surplus gives a guarantee to all of its buyers - you can trust who you are buying from. Only selected, public institutions can sell their items on this site, therefore you always know the auctions come from a trusted source. Page 1 of Home I Browse I Search Browse auctions within area Select Region Select Agency Please select region first . . 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