HomeMy WebLinkAboutItem 16 - Amend Agreement for Consignment Vehicle Parts and Accessories Public Works Agency
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Item # 16
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 19, 2023
TOPIC: Amend Agreement for Consignment Vehicle Parts and Accessories
AGENDA TITLE
Amend the Agreement with Elliott Auto Supply Co., Inc. dba Factory Motor Parts by
Increasing the Existing Agreement by an Annual Amount Not to Exceed $500,000 for
the Remainder of the Contract Term (Specification No. 19-085) (Non-General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute the first amendment to the agreement with Elliott
Auto Supply Co., Inc. dba Factory Motor Parts for consignment vehicle parts and
accessories by increasing the annual amount by $160,000, for a revised annual amount
not to exceed $500,000, for the remainder of the current one-year term expiring June
30, 2024, subject to non-substantive changes approved by the City Manager and City
Attorney.
DISCUSSION
The Public Works Agency’s Parks, Fleet, and Facilities Division is responsible for the
acquisition, maintenance, repair, and replacement of vehicles, trucks, and maintenance
equipment. The Fleet Services section maintains a stock room of fast moving parts as
well as special ordered Original Equipment Manufacturer (OEM) parts to provide the
needed vehicle parts for maintenance, preventative maintenance, complex mechanical
repairs, and tire replacements of over 700 City vehicles and equipment.
On June 4, 2019, at the conclusion of a competitive bidding process, the City Council
approved an agreement with Elliott Auto Supply Co., Inc. dba Factory Motor Parts for a
three-year period beginning July 1, 2019 to June 30, 2022, with provisions for two one-
year renewal options, not to exceed $340,000 annually. Due to the increasing cost of
goods and services as a result of normal, as well as historical, inflation, Staff
recommends increasing the agreement for consignment vehicle parts and accessories
by an aggregate amount of $160,000, for a revised annual amount not to exceed
$500,000 for the remainder of the agreement term expiring June 30, 2024.
Amend Agreement for Consignment Vehicle Parts and Accessories
September 19, 2023
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FISCAL IMPACT
The following table summarizes the funds budgeted and available in current FY 2023-24.
Fiscal
Year
Accounting
Unit-Account #
Fund Description Accounting Unit,
Account Description
Amount
FY
2023-24 07517100-63202 Fleet Maintenance
Equip Maint-Garage
Operation, Operating
Materials & Supplies
Equipment
$500,000
TOTAL $500,000
EXHIBIT(S)
1. Amendment Agreement with Elliott Auto Supply Co., Inc. dba Factory Motor
Parts
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency
Approved By: Kristine Ridge, City Manager
FIRST AMENDMENT TO AGREEMENT WITH FACTORY MOTOR PARTS
TO PROVIDE MISCELLANEOUS VEHICLE PARTS
THIS FIRST AMENDMENT to the above-referenced agreement is entered into on September 19,
2023, by and between Elliott Auto Supply Co., Inc. dba Factory Motor Parts, a Minnesota
corporation (“Contractor”), 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. On June 4, 2019, the City and the Contractor entered into Agreement No. A-2019-085
(“Agreement), to establish a vendor-owned inventory (consignment) based model to
provide miscellaneous fleet vehicle parts and accessories to City. The term of the
Agreement was initially set for a three (3) year period with an option to extend the term for
two (2), one (1) year renewals.
B. The parties opted to exercise both extensions allowed under the Agreement. The first
extension for an additional one-year term on June 13, 2022. The second extension for the
remaining one-year term on June 13, 2023 through June 30, 2024. The Agreement is
current and in effect.
C. Due to the increasing cost of goods and services expected over the remainder of the term
of the Agreement, the parties wish to amend the Agreement to increase the overall annual
compensation amount to cover expenses to be incurred during the final extension of the
Agreement which runs through June 30, 2024.
The Parties therefore agree:
1. Section 2.a., Compensation, is amended to increase the annual amount established for the
final extension period to the Agreement by an additional $160,000.00. The annual amount
for this term from July 1, 2023 through June 30, 2024 shall not exceed $500,000.00. The
total amount to be expended during the term of this Agreement shall not exceed
$1,860,000.00.
2. Except as modified by this Amendment, all terms and conditions of the Agreement, as
amended, shall remain in full force and effect.
[signatures contained on following page]
SIGNATURE PAGE FOR FIRST AMENDMENT TO AGREEMENT WITH FACTORY
MOTOR PARTS TO PROVIDE MISCELLANEOUS VEHICLE PARTS
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
Jennifer L. Hall Kristine Ridge
City Clerk City Manager
APPROVED AS TO FORM ELLIOTT AUTO SUPPLY CO., INC.
SONIA R. CARVALHO, City Attorney DBA FACTORY MOTOR PARTS
By:____________________________ _______________________________
Jonathan T. Martinez Dana Carney
Assistant City Attorney Fleet Sales and Operations Manager
RECOMMENDED FOR APPROVAL
______________________________
Nabil Saba, PE
Executive Director,
Public Works Agency
Dana Carney Digitally signed by Dana Carney
DN: cn=Dana Carney, o=Factory Motor Parts,
ou, email=d.carney@fmpco.com, c=US
Date: 2023.08.22 14:13:04 -05'00'