TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Amendments to Board Policy 465
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider approving amendments to Board Policy 465 - Procurement Policy in order to maintain compliance with Federal Transit Administration regulations and external auditing requirements.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The proposed amendments to Board Policy 465 will help maintain compliance with FTA and State regulations.
BUDGETARY/FISCAL IMPACT:
Outside of staff time, no additional costs are required to improve and implement procurement policies.
BACKGROUND/RATIONALE:
Minor changes to the procurement policy are needed to remain compliant with auditing, signature authority/solicitation requirements, and to maintain consistency with respect to authority for lease agreements. There are no changes to the General Manager’s authorities.
In addition, staff recommends that the policy be amended to allow staff time to resolve concerns raised by a vendor following notice of intent to award a contract, requiring that staff delay the presentation of the contract to the Board for final award by at least one Board meeting.
ADVANTAGES/DISADVANTAGES:
Advantages include being compliance with FTA and State Audit requirements, as well as allowing staff additional time to resolve potential conflicts before requesting Board approval of a contract award. There are no disadvantages to updating the policy.
ALTERNATIVES ANALYSIS:
Staff found no practical alternatives to the course of action recommended in this report.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Board Policy 465, October 23, 2019 version.
ATTACHMENTS:
1. Board Policy 465 - Procurement Policy
2. Board Policy 465 - Appendix A
Prepared by:
Gene Clark, Director of Procurement and Materials
In Collaboration with:
Fred Walls, Assistant Director of Procurement and Materials
Cheryl Sudduth, Contract Services Manager
Approved/Reviewed by:
Claudia L. Allen, Chief Financial Officer
Jill A. Sprague, General Counsel