TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve and Authorize the City Manager to Execute the First Amendment to Contract No. 2021-03, Onsite Fleet Parts and Inventory, By and Between the City of North Port, Florida, and TPH Holdings LLC, d/b/a The Parts House, for Management of Onsite Fleet Parts with the Inventory Program at Negotiated Monthly Prices and Inventory at Unit Prices Submitted.
Recommended Action
Option 1: Approve and authorize the City Manager to execute the First Amendment to Contract No. 2021-03, Onsite Fleet Parts and Inventory, by and between the City of North Port, Florida, and TPH Holdings LLC, d/b/a The Parts House, for management of onsite fleet parts with the inventory program at negotiated monthly prices and inventory at unit prices submitted.
City Commission Options
Option 1: Approve and authorize the City Manager to execute the First Amendment to Contract No. 2021-03, Onsite Fleet Parts and Inventory, by and between the City of North Port, Florida, and TPH Holdings LLC, d/b/a The Parts House, for management of onsite fleet parts with the inventory program at negotiated monthly prices and inventory at unit prices submitted.
• Pros: Allows the City to continue utilizing the existing competitively procured contract for an additional five years, reducing procurement time and administrative burden while enabling faster access to parts and services needed to maintain equipment and sustain fleet service levels, without initiating a full competitive bidding process.
• Cons: Increases the City's costs through a proposed 25% increase in the monthly administrative services fee and an increase in the annual Consumer Price Index (CPI) adjustment cap from 2% to 3%.
Option 2: Deny the First Amendment to Contract No. 2021-03, Onsite Fleet Parts and Inventory, by and between the City of North Port, Florida and TPH Holdings LLC, d/b/a The Parts House.
• Pros: Allows the City to pursue a new competitive solicitation tailored to current needs and evaluate alternative pricing and service terms.
• Cons: Requires additional time and administrative effort to complete a new procurement and solicitation process. This could delay access to parts needed for vehicle and equipment repairs and potentially affect response times for urgent fleet maintenance needs.
Background Information
The Fleet Management Division of the Department of Public Works uses a contractor to manage and supply parts for City vehicles and equipment. Onsite inventory support provides access to parts and supplies needed for maintenance and repairs, supporting the continued availability of vehicles and equipment used by City departments.
Request for Proposal (RFP) No. 2021-03 was advertised and issued on November 20, 2020. Four competitive proposals were evaluated and ranked on January 22, 2021. Negotiations subsequently resulted in an agreement with TPH Holdings, LLC, doing business as The Parts House. At the April 27, 2021, City Commission Regular Meeting, the City Commission approved Contract No. 2021-03 on consent under Item No. 21-0251.
The original contract established an initial five-year term and an option for one additional five-year period by mutual agreement, subject to budget limitations.
The original first-year monthly administrative fee was $19,000. Subsequent adjustments to the base monthly fee were tied to United States Bureau of Labor Statistics Employment Cost Index increases and decreases for Tampa-St. Petersburg-Clearwater, capped at 2% annually.
The proposed First Amendment would exercise the optional five-year extension, with commencement and ending dates as specified in the amendment. It would increase the current monthly administrative fee from $20,162.95 to $25,203.69, a 25% increase rounded to the nearest cent. It would also increase the annual adjustment cap from 2% to 3%, an increase of one percentage point. Future administrative fee adjustments would be governed by the amendment’s contractual adjustment provisions.
Parts would continue to be purchased separately under contract unit pricing. City departments would continue to pay for parts, materials, supplies, tools, tires, and fluids as invoiced; those purchases are not included in the monthly administrative fee.
The First Amendment to Contract No. 2021-03 has been reviewed by the City Attorney’s Office and is legally correct as to form.
The First Amendment to Contract No. 2021-03 was submitted to the City Clerk’s Office on October 19, 2026, for signature, subject to City Commission approval.
Strategic Plan Pillar
Good Government
Financial Impact
Funding for the First Amendment to the Onsite Fleet Parts and Inventory Contract No. 2021-03 by and between the City of North Port, Florida and TPH Holdings LLC, d/b/a The Parts House is allocated in the Fleet Management Budget as follows:
• The onetime payment in the amount of $35,285.18 retroactive to May 1, 2026 shall be charged to the fiscal year 2026 budget account string 520-3035-519.34-00.
• The base monthly administrative fee in the amount of $25,203.69 shall be charged to the fiscal year 2027 budget account string 520-3035-519.34-00.
The total fiscal impact of this amendment’s onetime payment and 25% monthly rate increase totals $95,774.06 between fiscal year 2026 and 2027.
Procurement
The First Amendment to Onsite Fleet Parts and Inventory Contract No. 2021-03 by and between the City of North Port, Florida and TPH Holdings LLC, d/b/a The Parts House was procured in accordance with Article VIII, Procurement, Section 2-405, Competitive Sealed Request for Proposal Process of the Code of the City of North Port, Florida.
Attachments:
1. First Amendment
2. Contract
Prepared by: Kenneth Rappuhn, Fleet Manager
Department Director: Chuck Speake, Public Works Director