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Resolution to Ratify Purchase of Inventory
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DESCRIPTION: Pursuant to the August 2019 RTA/Transdev Operations and Maintenance Agreement and the Memorandum of Understanding between the two parties, ratify the purchase of $841,419.21 non-obsolete revenue and non-revenue vehicle parts. |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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Authorize the Chief Executive Officer to purchase $841,419.21 non-obsolete revenue and non-revenue inventory parts pursuant to the August 2019 RTA/Transdev Operating & Maintenance Contract and Memorandum of Understanding between the two parties.
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ISSUE/BACKGROUND:
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On August 29, 2019 RTA/Transdev entered into an Operations and Maintenance Agreement (the “O&M Agreement”) which resulted from a competitive procurement process to select a contractor to operate and maintain transit service by means of fixed route transit bus services, streetcar transit service, complementary paratransit service provided in accordance with the requirements of the Americans with Disabilities Act of 1990 (ADA), and special services operating out of facilities owned and provided by the RTA.
The O&M Agreement required Transdev to take the following actions regarding revenue and non-revenue inventory parts. At its sole expense, Transdev shall provide, and maintain stores of, spare parts, supplies, and lubricants necessary for the orderly and timely maintenance and operation of Revenue Vehicles and Non-Revenue Vehicles and for other Equipment and systems used to provide the service, at all times during the Contract Term, including the Option Years. Transdev shall properly store and dispose of all materials, without limitation, required in the operation of the services under this Agreement. At the termination of this Agreement, for whatever reason, Transdev shall offer to sell the spare parts and supplies to RTA for their fair market value or for such other price as may be negotiated by the parties.
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DISCUSSION:
The purchase of the non-obsolete revenue and non-revenue vehicle parts allowed for an efficient transfer of maintenance efforts on December 20, 2020. All terms and conditions of the O&M Agreement and subsequent MOU were adhered to in this transaction.
After review by the independent third-party audit and roll-forward as of December 19, 2020, RTA agreed to purchase inventory at $841,419.21.
FINANCIAL IMPACT:
The purchase of the non-obsolete revenue and non-revenue inventory parts costs RTA $841,419.21, which is determined to be fair and reasonable. Additionally, the quantity of parts on hand as of December 20, 2020 was determined by an independent third party retained by RTA.
NEXT STEPS:
After the adoption of the resolution ratifying the purchase of the $841,419.21 non-obsolete revenue and non-revenue inventory parts, no additional steps are required.
ATTACHMENTS:
Resolution and executed MOU
Prepared By: Dacia Johnson
Title: Administrative Analyst
Reviewed By: Mark Major
Title: Deputy Chief Executive Officer
Reviewed By: Gizelle Johnson-Banks
Title: Chief Financial Officer
4/6/2021
Alex Wiggins Date
Chief Executive Officer