From
Donna Brennan
Title
Price agreement contract for on-site fleet parts distributor with National Automotive Parts Association (NAPA) (up to $940,000 annually) through a master interlocal agreement with National Joint Powers Alliance (NJPA) for one year with the option to renew for four (4) additional, one-year periods totaling $4,700,000 if all extensions are exercised
Presenter
Robert Myers, Interim Purchasing Manager
Recommend Action
Approve
Analysis
Staff has identified that NAPA currently has a contract on the master interlocal agreement with National Joint Powers Authority (NJPA), which can be utilized by the City for services from NAPA.
State purchasing laws, Government Code, Chapter 791 authorize local governments to enter into joint contacts and cooperative agreements for the performance of governmental functions normally associated with the operation of government such as purchasing necessary materials and supplies.
The City approved a master interlocal agreement with NJPA whereby the City could make use of all of that entities agreement(s). Council is requested to authorize an annual contract with NAPA for on-site fleet parts distribution for the initial twelve (12) month term and any/all of the four (4) optional one-year renewals as executed by NJPA. The estimated annual expenditure will be $940,000.
Authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal terms.
Financial Consideration
Funds are available in FY 2014/2015 budget 225510-60410 for Fleet Services SC-COGS Parts Inventory and will be charged accordingly on orders through the end of the current fiscal year. Any overages will be covered by savings in other account lines. Funding for future years will be paid from that year's approved budgets.