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Item 16 - Amend Agreement for Consignment Vehicle Parts and Accessories
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09/19/2023 Regular
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Item 16 - Amend Agreement for Consignment Vehicle Parts and Accessories
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10/24/2023 11:42:29 AM
Creation date
10/24/2023 11:34:06 AM
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City Clerk
Doc Type
Agenda Packet
Agency
Public Works
Item #
16
Date
9/19/2023
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FIRST AMENDMENT TO AGREEMENT WITH FACTORY MOTOR PARTS <br />TO PROVIDE MISCELLANEOUS VEHICLE PARTS <br />THIS FIRST AMENDMENT to the above-referenced agreement is entered into on September 19, <br />2023, by and between Elliott Auto Supply Co., Inc. dba Factory Motor Parts, a Minnesota <br />corporation (“Contractor”), and the City of Santa Ana, a charter city and municipal corporation <br />organized and existing under the Constitution and laws of the State of California (“City”). <br /> <br />RECITALS <br /> <br />A. On June 4, 2019, the City and the Contractor entered into Agreement No. A-2019-085 <br />(“Agreement), to establish a vendor-owned inventory (consignment) based model to <br />provide miscellaneous fleet vehicle parts and accessories to City. The term of the <br />Agreement was initially set for a three (3) year period with an option to extend the term for <br />two (2), one (1) year renewals. <br />B. The parties opted to exercise both extensions allowed under the Agreement. The first <br />extension for an additional one-year term on June 13, 2022. The second extension for the <br />remaining one-year term on June 13, 2023 through June 30, 2024. The Agreement is <br />current and in effect. <br />C. Due to the increasing cost of goods and services expected over the remainder of the term <br />of the Agreement, the parties wish to amend the Agreement to increase the overall annual <br />compensation amount to cover expenses to be incurred during the final extension of the <br />Agreement which runs through June 30, 2024. <br />The Parties therefore agree: <br /> <br />1. Section 2.a., Compensation, is amended to increase the annual amount established for the <br />final extension period to the Agreement by an additional $160,000.00. The annual amount <br />for this term from July 1, 2023 through June 30, 2024 shall not exceed $500,000.00. The <br />total amount to be expended during the term of this Agreement shall not exceed <br />$1,860,000.00. <br /> <br />2. Except as modified by this Amendment, all terms and conditions of the Agreement, as <br />amended, shall remain in full force and effect. <br /> <br /> <br /> <br /> <br />[signatures contained on following page] <br /> <br /> <br /> <br /> <br />
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