A private company has started managing North Hempstead's inventory of vehicle parts, a move that officials expect to save the town $123,000 annually.
The town had managed the inventory for its fleet of about 300 vehicles, mostly used by the Highway Department. Atlanta-based Genuine Parts Co. will manage a fleet parts room in New Hyde Park, officials said.
The move means town officials will no longer need to buy, store, and supply equipment. Under the contract, the town is to pay the company a $176,000 annual fee plus 10 percent of the company's expenses -- about $17,000 -- town officials said.
Officials said switching to the private company reduces costs for the town, which had been buying, managing, and storing auto parts. The town was spending about $300,000 a year to manage parts inventory, spokeswoman Carole Trottere said.
Town Supervisor Judi Bosworth said in a statement that using a private company will not only save money but also provide "a more effective and efficient method of handling our fleet inventory."
The town board had authorized the change in August 2014 and officials signed the agreement earlier this month.
Genuine Auto Parts Co. started work at the town's stockroom on Denton Avenue in New Hyde Park earlier this month. The company supplies the town with parts, tires, bulk fluids, tools and hydraulics, and manages the equipment, officials said. Two people work at the supply room. Additionally, the company arranges deliveries and coordinates pickups, all tasks previously handled by town employees.