Item No. 7
Town of Atherton
CITY COUNCIL STAFF REPORT – CONSENT AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: STEVEN D. MCCULLEY, POLICE CHIEF
DATE: JULY 16, 2025
SUBJECT: APPROVAL OF THE AGREEMENT BETWEEN JJ KANE
ASSOCIATES, INC. AND THE TOWN OF ATHERTON FOR
AUCTION SERVICES.
RECOMMENDATION
Approval of the agreement between JJ Kane Associates, Inc. and the Town of Atherton for auction services.
BACKGROUND
The Town periodically disposes of surplus vehicles, equipment, and other assets through public auctions. To streamline this process and take advantage of competitive pricing secured through a cooperative procurement process, staff recommends entering into an agreement with JJ Kane Associates, Inc. (“Contractor”) for auction services.
On April 19, 2022, JJ Kane Associates, Inc. was awarded a competitively procured contract for auction services by the National Cooperative Purchase Alliance (now OMNIA Partners). This master agreement allows public agencies to "piggyback" on competitively awarded contracts, in accordance with their own purchasing ordinances.
ANALYSIS
Atherton Municipal Code authorizes the use of cooperative purchasing agreements executed by other public agencies or cooperative procurement programs. The proposed Agreement between the Town and JJ Kane leverages the terms and pricing of the OMNIA Partners agreement, allowing the Town to obtain services without independently soliciting bids, saving time and resources.
The term of the Agreement is effective through June 30, 2026, with the option for two one-year extensions upon mutual written agreement. Services include the public auction of surplus assets and related transportation and administrative support, under the terms and pricing specified in the AGREEMENT BETWEEN JJ KANE ASSOCIATES, INC.
JULY 16, 2025
1 1
5 4
original cooperative contract. The Contractor's compensation is based on a commission model not to exceed 5% per item, plus allowable additional service charges.
The Agreement also includes customary terms regarding insurance, indemnification, wage compliance, and termination for convenience. The Contractor is responsible for compliance with all applicable federal, state, and local laws, including prevailing wage laws where applicable.
FISCAL IMPACT
The total amount payable under the Agreement, including commissions and service charges, shall not exceed $80,000. There is no upfront cost to the Town; Contractor’s fees are deducted from auction proceeds. The Agreement allows the Town to efficiently and cost-effectively dispose of surplus property, and the fiscal impact is expected to be offset by revenue generated from auction sales.
GOAL ALIGNMENT
This Report and its contents are in alignment with the following Council Policy Goals:
• Goal D - Be Forward Thinking
• Goal F - Build Community & Promote Civic Engagement
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders –to include, but be not limited to, media outlets, school districts, Menlo Park Fire Protection District, service provides (water, power, and sewer), and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item has not been before a Town Committee or Commission
ATTACHMENTS
1. Current contract
2. New contract