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