SUBJECT
title
Consideration to renew annual service contract FY21-076 with Cabello Recovery & Auction Services, Laredo, Texas for the auction of cars, light duty trucks, heavy-duty trucks, and surplus property for the Fleet Department. This contract establishes auctioneer services for the sale of city surplus vehicles and equipment.
Cabello's auctioneer (commission) fee will be the following percentage of the gross sales:
5.60% if the City opts to hold the auction on city property;
13.67% if the City opts to hold auction offsite at the vendor's location.
The City will have the option to hold its auction(s) onsite city property or offsite. The intent of this contract is to conduct turnkey public auctions, in accordance to Laws of the State of Texas (TX Department of License and Regulation), for disposal of surplus items on an as needed basis. The term of this contract shall be for a period of one year beginning as of the date of its execution and is contingent upon the availability of appropriated funds. There is a proposed price increase for this last extension period. The City will not incur any direct costs for this contract.
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PREVIOUS COUNCIL ACTION
Approved a one-year contract on 8/7/23.
BACKGROUND
This contract establishes auctioneer services for the sale of city surplus vehicles and equipment. If this contract renewal is approved, the Fleet and Purchasing Division will coordinate several auctions with Cabello Wrecker & Auction Service during the year. There is a proposed price increase for this last extension period.
Cabello's auctioneer (commission) fee will be the following percentage (%) of the gross sales:
5.60% if the City opts to hold the auction on city property;
13.67% if the City opts to hold auction offsite at the vendor's location.
The term of this contract shall be for a period of one year beginning as of the date of its execution. This the last extension period for this contract.
A complete bid tabulation and price increase documentation is attached.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended that this contract be renewed.
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Fiscal Impact
Fiscal Year: 2024.
Budgeted Y/N?: N/A.
Source of Funds: N/A.
Account #: N/A.
Change Order: Exceeds 25% Y/N: No.
FINANCIAL IMPACT:
All net revenues from these public sales will be realized in the respective departmental budgets.