HomeMy WebLinkAbout25F - AGMT CONSIGNMENT INVENTORY PROGREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 3, 2019
TITLE:
APPROVE AN AMENDMENT TO THE
AGREEMENT WITH SINGLE POINT
ALLIANCE, INC., IN THE AMOUNT OF
$260,000 TO PROVIDE A CENTRAL
STORES CONSIGNMENT INVENTORY
PROGRAM
(SPECIFICATION NO. 11-059)
(STRATEGIC PLAN NO. 6, 1, C)
CITY�MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1s' Reading
❑ Ordinance on 2ntl Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the City Manager to amend the agreement with Single Point Alliance, Inc., for a
consignment inventory program in the amount of $250,000, for a new total annual amount not to
exceed $917,500, and extend the term by four months for a new agreement expiration date of
January 31, 2020, subject to non -substantive changes approved by the City Manager and City
Attorney.
DISCUSSION
Facility management recently transitioned from the Finance and Management Services Agency
to the Public Works Agency. Central Stores is part of facility management, and is responsible for
locating, purchasing and maintaining an inventory of parts and supplies used for City operations
under a consignment inventory program. Under this program, Single Point Alliance, 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 December 17, 2012, the City Council approved the execution of a two-year agreement with
Single Point Alliance, Inc. with two two-year renewal options to provide a consignment inventory
program for the Central Stores Division. The term of the agreement commenced on October 1,
2013, and will expire on September 30, 2019. To ensure the continued services, staff
recommends extending the current agreement terms for an additional four -month period to
terminate on January 31, 2020, to allow for a new Request for Proposals (RFP) to be issued.
Staff anticipates releasing an RFP for consignment services in the next thirty days.
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Agreement Amendment with Single Point Alliance, Inc.
September 3, 2019
Page 2
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities &
Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City
assets), Strategy C (invest resources and technology to extend the service life of existing
infrastructure to protect the City's investment and support a high quality of life standard).
FISCAL IMPACT
Funds for this agreement are available in various departmental accounting units (account 63001).
Fuad S. S
Executive
Public We
FSS/TC/GL
VJ
, PE, PLS
Agency
Exhibit: 1. Agreement Amendment
APPROVED AS TO FUNDS AND ACCOUNTS:
Kathryn Downs, CPA to
Executive Director
Finance and Management Services Agency
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THIS FIRST AMENDMENT to the above -referenced agreement is entered into on September 3,
2019, by and between Single Point Alliance, Inc. ("SPA"), and the City of Santa Ana, a charter
city and municipal corporation organized and existing under the Constitution and laws of the State
of California ('City').
RECITALS
A. The parties entered into Agreement No. A-2012-249, dated December 17, 2012, by which
SPA agreed to provide a consignment inventory of maintenance, repair, and operations
supplies and products for purchase by City at agreed -upon prices ("Agreement").
B. The Agreement remains in effect through September 30, 2019, and the parties now wish to
extend the term and increase the total amount to be expended under the Agreement
accordingly.
The Parties therefore agree:
1. Section 1, Term, is amended to extend the term of the Agreement through January 31, 2020.
2. Section 5, Compensation and Payment Terms, is amended to increase the sum to be
expended through the above term of the Agreement by $250,000.
3, Except as modified by this First Amendment, all terms and conditions of the Agreement shall
remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the
Agreement on the date and year first written above.
ATTEST CITY OF SANTA ANA
DAISY GOMEZ
Clerk of the Council
APPROVED AS TO FORM
SONIA R. CARVALHO, City Attorney
By: iav�
JOHN M. FUNK
Assistant City Attorney
KRISTINE RIDGE
City Manager
SINGLE POINT ALLIANCE, INC.
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