HomeMy WebLinkAbout25I - SINGLE POINT ALLIANCE INC AGREEMENTREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
DECEMBER 17, 2019
TITLE
AMEND AGREEMENT WITH SINGLE POINT
ALLIANCE, INC., INCREASING THE
COMPENSATION BY $350,000, TO PROVIDE
THE CENTRAL STORES CONSIGNMENT
INVENTORY PROGRAM FOR AN ADDITIONAL
5 MONTHS
(SPECIFICATION NO. 11-059)
{STRATEGIC PLAN NO. 6, 1C}
/s/Kristine
CITY MANAGER
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 111 Reading
❑ Ordinance on 2ntl Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Authorize the City Manager to amend the agreement with Single Point Alliance, Inc., for the
Central Stores Consignment Inventory Program, increasing the compensation by $350,000, for a
new total annual amount not to exceed $1,267,500, and extending the term by five months for a
new agreement expiration date of June 30, 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. City 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. Central Stores has been operating under a consignment inventory program provided
by Single Point Alliance, Inc. Through this program, Single Point Alliance, Inc. stocks the
warehouse with inventory that remains their property until the inventory items are issued to end -
users. This inventory management program has provided several benefits for the Central Stores
operation, including reduced inventory costs, discounted pricing, and other soft cost savings.
The agreement with Single Point Alliance, Inc., for the consignment inventory program was
approved by City Council on December 17, 2012, and commenced on October 1, 2013. The
agreement was for a two-year period with two two-year renewal options. The second renewal
option was due to expire on September 30, 2019. On September 3, 2019, the City Council
approved a four -month extension to ensure the continued services as staff evaluated the
operations and prepared a Request for Proposals (RFP). At this time, staff recommends
extending the current agreement terms for an additional five -month period to terminate at the end
of the fiscal year on June 30, 2020 (Exhibit 1). Staff anticipates releasing a new RFP for
consignment services in early 2020.
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Agreement Amendment with Single Point Alliance, Inc.
December 17, 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, under
Miscellaneous Operating Expense account number, 63001.
Fuad S. Sweiss, PE, PLS
Executive Director
Public Works Agency
FSS/TC/GL
Exhibit 1: Agreement Amendment
/9>>061•AO.LFOrU211►I9by_1►LLTKK.111►11691
Kathryn Downs, CPA
Executive Director
Finance and Management Services Agency
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EXHIBIT 1
SECOND AMENDMENT TO AGREEMENT FOR PROVISION OF MAINTENANCE.
REPAIR. AND OPERATIONS SUPPLIES ON CONSIGNMENT BASIS
THIS SECOND AMENDMENT to the above -referenced agreement is entered into on December
17, 2019, by and between Single Point Alliance, hie. ("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. On September 3, 2019, the parties entered into First Amendment No. A-2019-155, by which
the Agreement was amended to extend the term through January 31, 2020, and increase the
total amount to be expended under the Agreement.
C. The Agreement remains in effect, and the parties now wish to further amend the Agreement to
further 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 June 30, 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 $350,000.
3. Except as modified by this Second Amendment, and all prior amendments, all terms and
conditions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the
Agreement on the date and year first written above.
ATTEST CITY OF SANTA ANA
DAISY GOMEZ KRISTINE RIDGE
Clerk of the Council City Manager
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APPROVED AS TO FORM SINGLE POINT ALLIANCE, INC.
SONIA R. CARVALHO, City Attorney
By
KUNAFUNK —Dame:
Assistant City Attorney Title:
RECOMMENDED FOR APPROVAL
NAB IL SABA
Acting Executive Director
Public Works Agency
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