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June 02, 2009

Contracts Awarded for Eldon, Fulton and Lee's Summit License Offices

Management contracts for three more local motor vehicle/license offices were awarded today by the Missouri Department of Revenue.  The granting of the offices came as a result of a comprehensive bidding process that has been championed by Gov. Jay Nixon.

The three offices awarded today are in Eldon, Fulton and Lee’s Summit.  This brings to 19 the total number of offices granted under the new system.

The Lake of the Ozarks Marine Dealers Association has been awarded the contract to operate the Eldon License Office.  The office has been closed since March 20, 2009, when the former agent left.  The office will re-open at the office’s former location of 401 W. Fourth St.

The license office in Fulton has been awarded to Koester & Koester.  The partnership is run by David Koester Sr. and David Koester Jr. of Bowling Green.  The office will remain at its current location of 204 E. Fifth St., Suite B.

The Lee’s Summit License Office has been awarded to Lee’s Summit LLC (James Montee).  The license office will stay at its current location at 196-A Northwest Oldham Parkway in the Summit Shopping Center.

Details about days of operation and transitional changes in the operating hours of the offices, if any, will be announced by the agents.

The three offices awarded today are the latest to have their management chosen using a bidding process that was implemented when Gov. Nixon took office on Jan. 12.  The process calls for people or groups to submit detailed bids to obtain the management contracts to operate the offices.  The Eldon office received three bids, the Fulton office received one bid and the Lee’s Summit office received four bids.

Karen King Mitchell, director of the Missouri Department of Revenue, said she was pleased with the overall process.

“I’m gratified that three more offices have gone through the competitive bid process and have been awarded to those who presented the best plans of operation,” Mitchell said.  “I’m especially pleased that the Eldon office will re-open to serve the citizens in the Eldon/Lake of the Ozarks area.”

Some winning bidders have chosen to return part of their estimated office revenues to the state.  Lee’s Summit LLC will return 8 percent ($42,424) of its first year revenues, Koester & Koester will return 2 percent ($2,973) and the Lake of the Ozarks Marine Dealers Association did not bid to return any revenues.  The cumulative amount of estimated funds that will be returned to the state in the first contract year from the 19 license offices that have been awarded so far is $116,408.

“The willingness of agents to return some of their profits is a great cost-efficiency measure for the state, and the amount returned to the state will undoubtedly grow as more bids are awarded,” Mitchell said.

For a list of winning bidders for license offices, please go to http://oa.mo.gov/purch/awardedfeeoffices.pdf.

All 183 local license offices provide services that are overseen by the Missouri Department of Revenue, but each office is operated by an independent contractor.  Transactions that are conducted at these offices include the issuance and renewal of driver licenses, applying for titles for motor vehicles, and the issuance and renewal of registration for motor vehicles, boats and outboard motors.

Additional information on the bids will be posted by the Missouri Office of Administration within the next few days.