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EXHIBIT 1 AGREEMENT WITH FACTORY MOTOR PARTS TO PROVIDE MISCELLANEOUS VEHICLE PARTS THIS AGREEMENT is made and entered into on this 4TH day of June, 2019 by and between Elliott Auto -Supply -Co., Inc: dba Factory Motor Parts, a Minnesota corporation ("Contractor"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. On March 29, 2019, the City issued Request for Proposal No. 19-017 ("RFP") by which it sought a contractor to establish a vendor -owned inventory (consignment) based model to provide miscellaneous fleet vehicle parts and accessories. B. Contractor submitted a responsive proposal that was selected by the City. Contractor represents that it is able and willing to provide such services to the City. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Contractor shall perform during the term of this Agreement, the tasks and obligations required to supply an on and off -site inventory of parts and shop supplies necessary to maintain, repair and operate the City's fleet of vehicles and equipment including but not limited to, a full line of light and heavy duty equipment parts, Original Equipment Manufacturer (OEM) parts, small engine parts, hydraulic hoses, fasteners, tires, steel, welding supplies, safety supplies, chemicals, equipment, and all fluids associated with automotive vehicles (i.e. lubricants, antifreeze, brake fluids, etc.) as described and set forth in Exhibit A, attached hereto and incorporated by reference. 2. COMPENSATION a. City agrees to pay, and Contractor agrees to accept as total payment for its services for City, the rates and charges provided by the Contractor's proposal and identified in Exhibit B, attached hereto, and the Contractor's full list for prices on the aforementioned parts and shop supplies which shall be incorporated by reference, as though fully set forth herein. The total amount to be expended during the term of this Agreement shall not exceed $1,700,000. This sum shall be comprised of a not -to - exceed annual amount of $340,000 during the term of this agreement and for any extension periods granted per Section 3, below. Page 1 of 8 25C-5