SUBJECT
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Consideration to award a two-year service contract FY25-025 to 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:
a). 16.0% if the City opts to hold the auction on city property;
b). 25.0% if the City opts to hold auction online either on city property/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 two (2) years beginning as of the date of its execution and is contingent upon the availability of appropriated funds. This contract can be renewed three (3) additional one (1) year extension periods, upon mutual agreement of the parties. The City will not incur any direct costs for this contract.
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PREVIOUS COUNCIL ACTION
None.
BACKGROUND
The City received three (3) bids through Cit-E-Bid for auctioneer services for the sale of city surplus vehicles and equipment. If this contract is awarded, the Fleet Department will coordinate several auctions with Cabello Wrecker & Auction Service during the year. Based on previous auction sales, the estimated gross revenue will be between $300,000.00 to $450,000.00.
Cabello's auctioneer (commission) fee will be the following percentage (%) of the gross sales: 16.0% if the City opts to hold the auction on city property;
25.0% if the City opts to hold auction online either on city property/vendor's location.
The term of this contract shall be for a period of two (2) years beginning as of the date...
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