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Public Works Agency https://www.santa-ana.org/pw Item # 11 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report February 16, 2021 TOPIC: Central Stores Consignment Inventory Program AGENDA TITLE: Approve the first amendment to the agreement with Shamrock Supply Company, Inc. to modify the scope of services to provide Central Stores non-inventory items under the existing terms of the agreement and allocate the annual amount of $50,000 of the total annual agreement amount of $750,000 for that purpose RECOMMENDED ACTION Authorize the City Manager to execute the first amendment to the agreement with Shamrock Supply Company, Inc. to modify the agreement to allow for the purchase of non-inventory items and allocate the annual amount of $50,000 of the total annual agreement amount of $750,000 for that purpose, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION City facilities management recently transitioned from the Finance and Management Services Agency to the Public Works Agency. Central Stores is part of the facilities management operation, which encompasses the services to ensure the functionality, comfort, safety and efficiency of City facilities. Central Stores itself is a warehouse-type facility that, among other functions, makes available facilities maintenance-related consumable materials, which operates under a consignment inventory program. Under this program, Shamrock Supply Company, Inc. stocks the warehouse with inventory that remains their property until the inventory items are issued to end-users. A consignment inventory program for the Central Stores operation has provided several benefits, including reduced inventory costs, discounted pricing, and other soft cost savings. On June 2, 2020, the City Council approved a five-year agreement with Shamrock Supply Company, Inc. to provide a consignment inventory program for a five-year period beginning July 1, 2020 and expiring on June 30, 2025. The majority of the items purchased from Shamrock Supply Company, Inc. are inventory items, but at times departments require non-inventory items. Non-inventory items include maintenance, repair, and operations supplies that are unique and are not requested for purchase or used regularly. This differs from inventory items, which include tools, building supplies, and more.