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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 2, 2020 <br />TITLE: <br />APPROVE AN AGREEMENT <br />WITH SHAMROCK SUPPLY COMPANY, <br />INC. TO PROVIDE A CENTRAL STORES <br />CONSIGNMENT INVENTORY PROGRAM <br />FOR A FIVE YEAR TERM IN AN ANNUAL <br />AMOUNT OF $750,000, WITH PROVISIONS <br />FOR TWO ONE-YEAR EXTENSIONS, FOR <br />A TOTAL AGREEMENT AMOUNT OF <br />$5,250,000 (INCLUDING THE TWO ONE- <br />YEAR EXTENSIONS) <br />(SPECIFICATION NO. 20-019) <br />(NON -GENERAL FUND) <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ <br />As Recommended <br />❑ <br />As Amended <br />❑ <br />Ordinance on 11' Reading <br />❑ <br />Ordinance on 2n° Reading <br />❑ <br />Implementing Resolution <br />❑ <br />Set Public Hearing For_ <br />CONTINUED TO <br />/s/ Kristine Ridge FILE NUMBER <br />CITY MANAGER <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute an agreement with Shamrock Supply Company Inc. to <br />provide a consignment inventory program for a five-year period beginning July 1, 2020 and expiring <br />on June 30, 2025, with provisions for two one-year extensions exercisable by the City Manager <br />and the City Attorney, in an annual amount of $750,000, for a total agreement amount not to exceed <br />$5,250,000, including renewal options, subject to non -substantive changes approved by the City <br />Manager and City Attorney. <br />DISCUSSION <br />City facilities management recently transitioned from the Finance and Management Services <br />Agency to the Public Works Agency. Central Stores is part of this operation. Central Stores <br />operates under a consignment inventory program. Under this program, the selected vendor stocks <br />the warehouse with inventory that remains their property until the inventory items are issued to <br />end -users. A consignment inventory program for the Central Stores operation has provided several <br />benefits, including reduced inventory costs, discounted pricing, and other soft cost savings. <br />On February 24, 2020, the Public Works Agency issued a Request for Proposal (RFP) for qualified <br />firms to provide maintenance, repair and operations (MRO) supplies on a consignment basis. <br />Proposers were asked to submit proposals that would provide for stocking the Central Stores <br />warehouse on a consignment basis. The RPF was advertised on the City's online bid management <br />and publication system, with the bids due on March 18, 2020. Twenty-three vendors downloaded <br />the project documents. One proposal was received and evaluated by a selection committee based <br />25D-1 <br />