AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 4/5/2017
TO: Honorable Mayor and City Council Members
FROM: Administrative Services Department
SUBJECT:
Title
City Council Consideration to approve the Fifth Amendment to increase the Citywide Services Agreement with Fastenal Company in the amount of $100,000 for a total contract amount of $275,000 within Fiscal Year 2016 - 2017.
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RECOMMENDED ACTION:
Recommended action
That the City Council :
1. Approve the Fifth Amendment to the Maintenance Agreement in the amount of $100,000 with Fastenal Company, (Fastenal), to provide Citywide Warehouse Supply and Inventory Control/Vending Machine services for a total contract amount of $275,000 .
2. Authorize the City Manager or his designee to execute the Fifth Amendment to the Maintenance Services Agreement with Fastenal and to approve necessary change orders or amendments up to the amount provided by Corona Municipal Code Section 3.08.060(j).
3. Authorize the Purchasing Manager to issue a change order to the purchase order with Fastenal in the amount of $100,000.
4. Authorize the City Manager or his designee to negotiate and execute any extensions and/or amendments which are either non-substantive or are otherwise in compliance with the City Council’s actions hereunder.
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ANALYSIS:
The Maintenance Services Department issued an agreement to Fastenal, for warehouse supply and inventory control/vending machine program services in 2013. Fastenal owns and maintains the vending machines and inventory, the City pays for items after they are selected from the machines. Vending is controlled through employee identification badges. Fastenal has been providing facility maintenance, lighting products, safety Items, industrial supplies and tools with the pricing provided by the NASPO ValuePoint Cooperative Purchasing Organization (WSCA-NASPO), as well as office supplies. The Fastenal vending machine program has been utilized by all City departments. A benefit of the Fastenal agreement is the improvement of staff efficiency by allowing purchasing through a competitive purchasing program from a single vendor and the reduction of time spent seeking quotes from multiple vendors. The Maintenance Services Department has recorded a decrease in expenditures for facility maintenance, lighting products, safety items, industrial supplies and tools by consolidating their purchases utilizing the Fastenal Purchase Order versus using purchase orders from various vendors who provide same/similar items.
COMMITTEE ACTION:
Not applicable.
STRATEGIC PLAN:
Not applicable.
FISCAL IMPACT:
Funding is available in the Fiscal Year 2016-17 operations budgets as approved by the City Council.
ENVIRONMENTAL ANALYSIS:
No environmental review is required because the proposed action is not a project governed by the California Environmental Quality Act.
PREPARED BY: CITA LONGSWORTH, PURCHASING MANAGER
REVIEWED BY: KERRY D. EDEN, ASSISTANT CITY MANAGER/ADMINISTRATIVE SERVICES DIRECTOR
SUBMITTED BY: DARRELL TALBERT, CITY MANAGER