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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 17, 2014 <br />TITLE: <br />AGREEMENT WITH WARREN <br />DISTRIBUTING, INC. FOR A <br />VENDOR -OWNED INVENTORY <br />PROGRAM FOR FLEET VEHICLE <br />PARTS <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2 n Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute an agreement with Warren <br />Distributing, Inc. for a vendor -owned inventory program for fleet vehicle parts for a three year <br />period, in an annual amount of $450,000, with provisions for two one -year term extensions <br />exercisable by the City Manager, subject to non - substantive changes approved by the City <br />Manager and the City Attorney. <br />DISCUSSION <br />The Finance and Management Services Fleet Maintenance Division maintains over 650 active <br />fleet vehicles covering sedans, small trucks and large equipment at the Corporate Yard. Fleet <br />maintains a stock room of fast moving parts as well as special ordered Original Equipment <br />Manufacturer (OEM) parts to provide the needed vehicle parts for maintenance including <br />preventative maintenance, complex mechanical repairs and tire replacements. Vehicles serviced <br />include Police patrol sedans, as well as all light trucks and heavy equipment including sewer and <br />dump trucks. <br />On December 19, 2011, City Council awarded an agreement for an integrated business solution <br />for auto parts. This program has produced several operation efficiencies such as a reduction of <br />obsolete parts and shrinkage costs, eliminate the need for maintaining an inventory of parts as <br />well as streamlined Purchasing and Accounts Payable processes by reducing the number of <br />contracts for auto parts, purchase orders and invoices. As such, staff recommends continuing to <br />operate under this innovative business model in order to achieve efficiencies. <br />On May 15, 2014 a request for proposals was advertised on the City's online bid management <br />and publication system. A total of 36 potential vendors were notified and eleven (11) downloaded <br />the solicitation documents. A pre - proposal conference meeting and job walk followed May 21, <br />2014. Five potential suppliers attended the meeting. <br />25H -1 <br />