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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): |
Viola Miller, Chief Financial Officer |
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Todd Mills, Director of Supply Chain |
TITLE:
title
R2025-03-03 - Resolution Ratifying 2024 Expenditure and Disbursement Authority for Light Rail Vehicle Parts Purchases and Approving an Increase in 2025 Bus Vehicle Parts Expenditure and Disbursement Authority
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AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2025-03-03 ratifying an increase in the 2024 authorized disbursement amount for light rail vehicle inventory parts and increasing the 2025 authorized disbursement amount for bus vehicle inventory parts 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 expense with a value of $200,000 or more.
Board Policy 2.2 (III)(D)(3) allows the Board to preapprove disbursements to vendors by resolution.
The Board has historically, by resolution, preapproved disbursements for 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 annual cumulative obligations. This resolution will revise prior authorizations by the Board of Trustees to accomplish two things:
1) Ratify an additional $543,455 in 2024 disbursements that exceeded the Board’s prior authorization in R2024-02-01 for light rail parts (resulting in a total 2024 authorization of $10,543,455); and
2) Increase the 2025 authorization for bus vehicle parts previously authorized in R2024-12-08 to $9,850,000 (previously authorized at $7,000,000).
Following the approval of the increase for Bus vehicle parts, total 2025 parts purchase and disbursement authority for each transit mode will be as follows:
• 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
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 customers.
At the end of every quarter the Director of Supply Chain will provide a list of actual purchase totals for each transit mode by 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.
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 2024 and 2025 Operating and Capital Budgets.
ATTACHMENTS:
R2025-03-03