Saturday, September 02, 2017

Parts Budget Up $200,000, Contract Renewal Nears

San Angelo's City Council will take up a $200,000 increase in repair parts when they return from the Labor Day holiday.  This is significant as the City contracted out its parts department three years ago.  At the time it promised City Council a financial impact analysis.  That never came and when asked the city could not produce one.  It simply referred to vendor's pricing structure and a contract that had the City of Odessa as an example.

The parts department contract is up for renewal as it expires on 9-26-17.  Now would be the time for this City Council to hear the financial impact of contracting out the parts department for the last three years.   They learned of the arrangement August 8th in a Budget Workshop meeting.

This City Council has no members that approved the concept in May 2014.  There has been 100% turnover in elected leadership.  A financial impact presentation would ensure an informed renewal and that council remains complaint with purchasing ordinances.  It may not be required within the letter of the law, but ethically, the spirit requires it.

Update 9-5-17:  There were no deliberations on this item as it was on the consent agenda and no member of City Council pulled it for discussion.  In their August 15th meeting no member of City Council wanted to know why the cost for repair parts increased $200,000 for the current fiscal year.  That held for September 5th.  

Update 9-15-17:  City Council will not take up contract renewal for vehicle parts department operation in their 9-19 meeting.  The city produced no additional financial information.  I wrote my City Council representative with my concerns but am yet to receive a response.

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