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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Todd Mills, Director of Supply Chain |
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TITLE:
title
R2023-12-05 - Resolution Granting Expenditure and Disbursement Authority for 2023 Parts Inventory Purchases and Ratifying Certain 2023 Parts Inventory Purchases and Disbursements
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AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2023-12-05 authorizing 2023 purchases and related disbursements to inventory vendors up to the amounts listed in Attachment A, and ratifying the 2023 disbursements that exceeded forecasted amounts in R2023-07-08 as shown in Attachment A.
BACKGROUND:
Board Policy 2.2 (III)(D)(3) allows the Board to preapprove purchases to vendors by resolution.
Annually the Board, by resolution, preapproves inventory purchases from non-contracted vendors related to vehicle maintenance and repair inventory whose annual cumulative purchase amount is expected to exceed $200,000.
In July the Board approved Resolution R2023-07-08. Due to unforeseen demands on certain parts, we are returning to the board to supplement approval to that resolution for increased expenditure and disbursement authority.
DISCUSSION:
The list of 2023 vendors and their respective estimated annual purchase amounts are in Attachment A of this resolution to receive Board approval. These vendors were identified because 2023 Purchase Orders have, or will likely, exceed the previously forecasted/board-approved purchase amounts or will likely exceed cumulative Purchase Orders of $200,000.
This resolution provides sufficient purchasing authority and transparency and allows the Authority to purchase from these vendors on a timely basis to maintain revenue fleet readiness for our riders.
Going forward, the Board authorized amounts in Attachment A will be entered into JD Edwards for each vendor with an automatic notification alert sent to the Director of Supply Chain if the cumulative non-contracted amount approaches within 25% of the approved amount. When this notification is received the Director of Supply Chain will return to the Board of Trustees with any vendors and expected amounts that will exceed the forecasted amount in Attachment A.
ALTERNATIVES:
UTA procurement could hold any purchases to vendors with annual purchase amounts over $200,000 to a subsequent Board meeting for an approval, thus delaying timely purchases from vendors and potential impact to operations service.
FISCAL IMPACT:
All authorized disbursements are accounted for in UTA’s adopted Operating and Capital Budgets.
ATTACHMENTS:
R2023-12-05