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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 17, 2019 <br />TITLE <br />AMEND AGREEMENT WITH SINGLE POINT <br />ALLIANCE, INC., INCREASING THE <br />COMPENSATION BY $350,000, TO PROVIDE <br />THE CENTRAL STORES CONSIGNMENT <br />INVENTORY PROGRAM FOR AN ADDITIONAL <br />5 MONTHS <br />(SPECIFICATION NO. 11-059) <br />{STRATEGIC PLAN NO. 6, 1C} <br />/s/Kristine <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 111 Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />Authorize the City Manager to amend the agreement with Single Point Alliance, Inc., for the <br />Central Stores Consignment Inventory Program, increasing the compensation by $350,000, for a <br />new total annual amount not to exceed $1,267,500, and extending the term by five months for a <br />new agreement expiration date of June 30, 2020, subject to non -substantive changes approved <br />by the City Manager and City Attorney. <br />DISCUSSION <br />Facility management recently transitioned from the Finance and Management Services Agency <br />to the Public Works Agency. City Central Stores is part of facility management and is responsible <br />for locating, purchasing, and maintaining an inventory of parts and supplies used for City <br />operations. Central Stores has been operating under a consignment inventory program provided <br />by Single Point Alliance, Inc. Through this program, Single Point Alliance, Inc. stocks the <br />warehouse with inventory that remains their property until the inventory items are issued to end - <br />users. This inventory management program has provided several benefits for the Central Stores <br />operation, including reduced inventory costs, discounted pricing, and other soft cost savings. <br />The agreement with Single Point Alliance, Inc., for the consignment inventory program was <br />approved by City Council on December 17, 2012, and commenced on October 1, 2013. The <br />agreement was for a two-year period with two two-year renewal options. The second renewal <br />option was due to expire on September 30, 2019. On September 3, 2019, the City Council <br />approved a four -month extension to ensure the continued services as staff evaluated the <br />operations and prepared a Request for Proposals (RFP). At this time, staff recommends <br />extending the current agreement terms for an additional five -month period to terminate at the end <br />of the fiscal year on June 30, 2020 (Exhibit 1). Staff anticipates releasing a new RFP for <br />consignment services in early 2020. <br />251-1 <br />