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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 4, 2019 <br />TITLE: <br />APPROVE AGREEMENT WITH ELLIOTT <br />AUTO SUPPLY CO., INC, DBA FACTORY <br />MOTOR PARTS, FOR A VENDOR -OWNED <br />INVENTORY PROGRAM FOR FLEET <br />VEHICLE PARTS, FOR UP TO FIVE <br />YEARS, IN AN AMOUNT NOT TO EXCEED <br />$1,700,000 <br />(STRATEGIC PLAN NO. 6, 1C) <br />R _ G <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />r_W40i1T <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 151 Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute an agreement with Elliott Auto <br />Supply Co., Inc., dba Factory Motor Parts, for a vendor -owned inventory program for fleet vehicle <br />parts, for a three-year period beginning July 1, 2019, and expiring on June 30, 2022, with a <br />provision for two one-year renewal options exercisable by the City Manager and City Attorney, in <br />an amount not to exceed $340,000 annually, for a total agreement amount not to exceed <br />$1,700,000, including the renewal options, subject to non -substantive changes approved by the <br />City Manager and City Attorney. <br />DISCUSSION <br />The Public Works Agency Fleet Maintenance Division maintains a fleet of over 650 active vehicles <br />covering sedans, small trucks, and large equipment at the Corporate Yard. Fleet maintains a <br />stock room of fast moving parts as well as special ordered Original Equipment Manufacturer <br />(OEM) parts to provide the needed vehicle parts for maintenance, including preventative <br />maintenance, complex mechanical repairs, and tire replacements. Vehicles serviced include <br />Police patrol sedans, City agency vehicles and carpool vehicles, as well as all light trucks and <br />heavy equipment, including sewer and dump trucks. <br />On June 17, 2014, City Council awarded an agreement to Warren Distributing, Inc., for an <br />integrated business solution for auto parts. This program continues to produce several <br />operational efficiencies, such as a reduction of obsolete parts and shrinkage costs, elimination of <br />the need for maintaining an inventory of parts, as well as streamlined Purchasing and Accounts <br />Payable processes by reducing the number of contracts for auto parts, purchase orders and <br />invoices. The agreement with Warren Distributing, Inc., is scheduled to expire on June 30, 2019. <br />25C-1 <br />