SUBJECT
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Consideration to renew annual supply/service contract FY22-079 with Laredo Air Compressor Parts & Service, Laredo, Texas in amount of $62,500.00 to provide small engine repair services for the Utilities Department. This contract establishes an hourly service rate and a discount percentage for parts. 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. This contract can be extended one additional one-year period, upon mutual agreement of the parties. There was no price increase during the last extension period. All services will be purchased on an as needed basis and funding will be secured from the Utilities - Sewer System Fund.
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PREVIOUS COUNCIL ACTION
Approved a one-year contract on July 31, 2023.
BACKGROUND
This contract establishes an hourly and discount percentage rate on parts supplied by the contractor for small engine repair services for the Utilities Department. There was no price increase during the last extension period. This is the second of three extension periods. All services will be purchased on an as needed basis. The term of this contract shall be for a period of one (1) year beginning as of the date of its execution. This contract shall be the responsibility of and administered by the vendor and the City of Laredo Utilities Department.
Current Pricing:
Small Engine Repairs Hourly Labor Rate
Honda, Kohler, Onan, & Yamaha $ 60.00
Discount Rate 0%
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
Approve the motion.
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Fiscal Impact
Fiscal Year: 2024.
Budgeted Y/N?: Yes
Source of Funds: Utilities Sewer Fund.
Account #: 559-4220-533-2030.
Change Order: Exceeds 25% Y/N: No
FINANCIAL IMPACT:
The purpose of this contract is to establish prices for the commodities or services needed should the City need to purchase these commodities or services. The City's obligation for performance of an annual supply contract beyond the current fiscal year is contingent upon the availability of appropriated funds from which payments for the contract purchases can be made. If no funds are appropriated and budgeted during the next fiscal year, this contract becomes null and void.