Subject: 20296/Purchases at Auction
Date: Thu, 4 May 1989 09:49:48 -0500


                               RESOLUTION NO. 20296
                  
                  
                  
                   A RESOLUTION ESTABLISHING PROCEDURES FOR
                   PURCHASES AT AUCTION.
                  
                  
                           ___________________________
                  
                  
                  
       	    	 WHEREAS, T.C.A.A7 12-3-1006 provides that a municipality
       may purchase at any publicly advertised auction's new or
       secondhand articles or equipment or other materials, supplies,
       commodities, and equipment without public advertisement and
       competitive bidding; subject to the governing body establishing
       written procedures governing purchases at publicly advertised
       auctions.
                                     	  NOW, THEREFORE
       	    	 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
       CHATTANOOGA, TENNESSEE, That the following procedures for
       purchases at auction by the City of Chattanooga are adopted:
       	    1.	 The auction shall have been publicly advertised with
       sufficient time and exposure to attract other bidders;
       	    2.	 The items to be purchased must have been available for
       inspection by a responsible agent of the City prior to the bid;
       	    3.	 The department head shall, prior to the auction,
       determine a reasonable market value for any items that are to be
       bid upon and to the extent practical that value shall be
       established by an appraisal, reference to "blue books" or other
       guides to market value, market quotations, or other reliable
       evidence of value;
       	    4.	 That the agent or employee placing the bid for the City
       shall have received instructions from the department head as to
       the maximum price which may be bid for any item(s), which shall 
in
       no event be more than a reasonable market value;
       	    5.	 That the agent or employee who bids on behalf of the
       City may be authorized to make deposits or immediate payment for
       the goods being sold if required by the terms of the auction
       subject to such procedures as may be established by the Finance
       Officer; otherwise, payment shall be made by voucher in the 
normal
       manner; and
       	    6.	 That upon purchasing any materials, supplies,
       commodities or equipment at a publicly advertised auction, the
       purchasing official shall report the following information to the 

       City Council:
       	    	 (a)  The description of the materials, supplies,
                      commodities or equipment that were purchased;
       	   
       	    	 (b)  The auction where such items were purchased;
       	   
       	    	 (c)  The purchase price of such items; and
       	   
       	    	 (d)  The vendor of such materials, supplies, commodities
                      or equipment.
      
      
       ADOPTED:	 July 26, 1994
      
       MAM:meb