HomeMy WebLinkAboutItem 11 - Central Stores Consignment Inventory Program Public Works Agency
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Item # 11
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
February 16, 2021
TOPIC: Central Stores Consignment Inventory Program
AGENDA TITLE:
Approve the first amendment to the agreement with Shamrock Supply Company, Inc. to
modify the scope of services to provide Central Stores non-inventory items under the
existing terms of the agreement and allocate the annual amount of $50,000 of the total
annual agreement amount of $750,000 for that purpose
RECOMMENDED ACTION
Authorize the City Manager to execute the first amendment to the agreement with
Shamrock Supply Company, Inc. to modify the agreement to allow for the purchase of
non-inventory items and allocate the annual amount of $50,000 of the total annual
agreement amount of $750,000 for that purpose, subject to non-substantive changes
approved by the City Manager and City Attorney.
DISCUSSION
City facilities management recently transitioned from the Finance and Management
Services Agency to the Public Works Agency. Central Stores is part of the facilities
management operation, which encompasses the services to ensure the functionality,
comfort, safety and efficiency of City facilities. Central Stores itself is a warehouse-type
facility that, among other functions, makes available facilities maintenance-related
consumable materials, which operates under a consignment inventory program. Under
this program, Shamrock Supply Company, 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 June 2, 2020, the City Council approved a five-year agreement with Shamrock Supply
Company, Inc. to provide a consignment inventory program for a five-year period
beginning July 1, 2020 and expiring on June 30, 2025. The majority of the items
purchased from Shamrock Supply Company, Inc. are inventory items, but at times
departments require non-inventory items. Non-inventory items include maintenance,
repair, and operations supplies that are unique and are not requested for purchase or
used regularly. This differs from inventory items, which include tools, building supplies,
and more.
Central Stores Consignment Inventory Program
February 16, 2021
Page 2
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Given that under the current agreement Shamrock Supply, Company Inc. can only supply
inventory items, staff recommends amending the agreement to include non-inventory
items as well. This action does not change the existing contract amount or term and
enables Central Stores to provide expedient customer service to City departments.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
There is no fiscal impact as the total contract amount of $750,000 is not changed with this
action.
EXHIBIT(S)
1. First Amendment to Agreement with Shamrock Supply Company, Inc.
Submitted By: Nabil Saba, Executive Director, Public Works
Approved By: Kristine Ridge, City Manager
Page 1 of 2
FIRST AMENDMENT TO AGREEMENT WITH SHAMROCK SUPPLY COMPANY
THIS FIRST AMENDMENT to the above-referenced agreement is entered into on February 16,
2021, by and between Shamrock Supply Company, Inc. (“Consultant”), 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-2020-115, dated June 2, 2020, by which
Consultant agreed to provide an on-site inventory of maintenance, repair, and operations
supplies on a consignment basis for use and purchase by the Central Stores Division of the
Public Works Agency (“Agreement”).
B. The Agreement remains in effect through June 1, 2025, with provision for extension.
C. The parties now wish to allocate certain funds under the Agreement for the purchase of supplies
from Consultant not already described in the Agreement.
The Parties therefore agree:
1. Section 1, Scope of Services, is amended to include the provision of maintenance, repair, and
operations supplies in addition to those described in the Agreement (“non-inventory supplies”).
Consultant shall first provide a quotation and full description for each non-inventory supply
that is requested by City for purchase.
2. Section 2, Compensation, is amended to allocate the annual sum of $50,000, from the total
annual sum of $750,000 to be expended under the Agreement (including any extension
periods), for the purchase of non-inventory supplies.
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 Kristine Ridge
Clerk of the Council City Manager
[signatures continue on next page]
Page 2 of 2
APPROVED AS TO FORM CONSULTANT
Sonia R. Carvalho
City Attorney
By:___________________________ _______________________________
John M. Funk By:
Senior Assistant City Attorney Title:
RECOMMENDED FOR APPROVAL
________________________________
Nabil Saba
Executive Director
Public Works Agency