Title
Consider and take action on a resolution authorizing an agreement with PropertyRoom.com, Inc. for auction services related to forfeited property being stored in the League City Police Department property room (Interim Chief of Police)
Background:
Approval of this item will authorize a resolution for an agreement with PropertyRoom.com, Inc. for auction services related to forfeited property being stored in the League City Police Department property room.
The League City Police Department (LCPD) property room serves as the central repository for all property collected by LCPD Officers and Detectives. Since opening the Public Safety Building in 2015, the main property room has been filled to approximately 75% capacity with a large portion of its contents being non-contraband items. Once cases reach disposition, non-contraband items that cannot be returned to an owner, or are otherwise legally abandoned, are awarded to the Department for forfeiture or destruction.
In 2017, there were approximately 475 non-contraband items destroyed by police personnel in accordance with court orders for destruction or forfeiture, and these items included such things as computers, cell phones, small electronics, clothing and sporting goods items. Currently, there are several hundred similarly forfeited items currently sitting on property room shelves pending sale or destruction. The Police Department seeks to utilize a specialized online auction service to dispose of these items. This service would reduce man hours spent disposing of property, increase our storage capacity for property and evidence, and provide funding for the property that is auctioned.
PropertyRoom.com is an online auction service that specializes in selling and disposing of forfeited property from law enforcement agencies around the country, to include Harris County Sheriff’s Office and the Galveston Police Department. In exchange for 50% of the final sales price up to $1,500 and 25% for anything more and a monthly fuel surcharge fee, PropertyRoom.com handles all aspects of the auction process from cleaning, appraising, and photographing the property to shipping and receiving payment from winning bidders.
All property released for auction is entered into a proprietary asset tracking system that is accessible on-demand, while maintaining full chain of custody and accountability as required by law. If any property does not sell, they will dispose of it free of charge.
In researching various organizations that specialize in police or government auctions, PropertyRoom.com was the only organization found that handles the entire auction process from start to finish. In reference to the fuel surcharge fee, due to our close proximity to neighboring agencies that are already utilizing this auction service, PropertyRoom.com has offered on-site pickup of property from LCPD at a discounted rate. Items sent directly to PropertyRoom.com’s warehouse may be shipped via FedEx at no initial cost to the Department, with the shipping fees being deducted from auction proceeds.
The use of the PropertyRoom.com auction service allows for the efficient disposal of forfeited property and management of property room storage levels, while providing funds from the sale of items legally awarded that would otherwise be destroyed.
The City has satisfied state procurement requirements by entering into this agreement through the National Joint Powers Alliance (NJPA) Cooperative Purchasing Program. Cooperative programs, such as the NJPA, save taxpayer dollars by leveraging the government's volume-buying power to drive down cost on hundreds of contracts through a streamlined cooperative purchasing program.
CONTRACT ORIGINATION: The contract has been reviewed and approved by the City Attorney’s office.
Attachments:
1. Data Sheet
2. Proposed Resolution
3. Exhibit A - Agreement with PropertyRoom.com
FUNDING
{ } NOT APPLICABLE
{ } Funds are available from Account #___________________________
{ } Requires Budget Amendment to transfer from Account #____________to Account # ___________________