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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
R2024-12-08 - Resolution Granting Expenditure and Disbursement Authority for 2024 and 2025 Vehicle Parts Inventory Purchases
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AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2024-12-08 authorizing the purchase and related disbursements to vehicle parts inventory vendors for 2024 and 2025 as presented.
BACKGROUND:
Utah’s Public Transit District Act, and Board Policy 2.2 Contract Authority, Procurement and Grants require the Board of Trustees to approve any contract or disbursement with a value of $200,000 or more.
Board Policy 2.2 (III)(D)(3) allows the Board to preapprove purchases to vendors by resolution.
The Board has historically, by resolution, preapproved inventory purchases from non-contracted vendors related to vehicle maintenance and repair inventory whose annual cumulative purchase amount by vendor is expected to exceed $200,000.
DISCUSSION:
UTA’s inventory purchases from non-contracted vendors related to vehicle maintenance and repair is expected to have some vendors that will exceed $200,000 in cumulative obligations.
The proposed resolution would authorize the agency’s 2025 expenditure and disbursement for the following vehicle parts inventory:
• Bus Vehicles Parts - up to $9,850,000
• Light Rail Vehicle Parts - up to $11,000,000
• Commuter Rail Vehicle Parts - up to $5,000,000
Purchases from vendors who supply these parts will likely exceed cumulative Purchase Orders per vendor of $200,000, and therefore require approval by the Board of Trustees.
This resolution only applies to revenue fleet vehicle parts purchases that are procured as the result of an automatic JD Edwards generated requisition due to on-hand quantities falling below the reorder point, or from an out-of-stock requisition created by a UTA Parts clerk. Procurement staff will solicit bids from industry parts suppliers through open and fair competition, and will make purchase awards based on price, quality, and lead-time criteria.
This resolution provides 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.
At the end of every quarter the Director of Supply Chain will provide a list of actual purchase totals for each vendor to the Board of Trustees in a public meeting and will review and compare actual Purchase Order amounts with the amounts listed in the resolution. Any Transit mode parts Purchase Order amounts that will likely exceed the forecasted amount will be brought back to the Board of Trustees for further review and approval before procuring those parts.
In addition, the 2024 Bus Inventory Parts purchases are forecasted to exceed the $7,000,000 previously authorized in Resolution R2024-02-01 due to a combination of higher parts usage and higher costs than expected. This resolution will authorize additional purchases and disbursements up to $8,550,000.
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 adopted2024 and 2025 Operating and Capital Budgets.
ATTACHMENTS:
R2024-12-08