TITLE
Recommendation to adopt Specifications No. RFP FS21-094 and award contracts to J. J. Kane Associates, Inc., dba Ken Porter Auction Co., of Jurupa, CA, and Armando Camarena, dba U.S. Auctions, of Upland, CA, for auction services for City of Long Beach retired vehicles and equipment, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and, authorize City Manager, or designee, to execute all documents necessary to enter into contracts including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with J. J. Kane Associates, Inc., dba Ken Porter Auction Co. (Ken Porter Auction Co.), and Armando Camarena, dba U.S. Auctions (U.S. Auctions), for auction services for City of Long Beach (City) retired vehicles and equipment.
The City’s fleet has approximately 2,200 units and about 200 of these are replaced annually. When retired, they are stripped of City-owned equipment and markings and are ready for auction. These two auction service companies will pick up the retired vehicles and perform all related auction services, including advertising for sale (online and other media), preparation for sale, actual auction, and DMV documentation. Proceeds from the sale of retired units are returned to the user department replacement collections in the Fleet Services Fund Group to offset the cost of future unit purchases. FY 21 revenue from vehicle and equipment auctions was $954,171, which is higher than normal due to an unusually large number of vehicles retired. Annual revenue is expected to track closer to $750,000 under the proposed contract term.
The Request for Proposals (RFP) was advertised in the Long Beach Press-Telegram on September 17, 2021, and ten potential proposers specializing in auction services were notified of the RFP opportunity. Of those proposers, seven downloaded the RFP via the City’s electronic bid system. The RFP doc...
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