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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Jared Scarbrough, Director of Capital Design & Construction |
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PRESENTER(S): |
Jared Scarbrough, Director of Capital Design & Construction |
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Janelle Robertson, Project Manager III |
TITLE:
title
Contract: HB322 (2022) Fund Transfers and Work Designation Agreement (UDOT)
end
AGENDA ITEM TYPE:
Non-Procurement Agreement
RECOMMENDATION:
Approve and authorize Executive Director to execute the HB 322 fund transfers and work designation agreement, and associated disbursements, with the Utah Department of Transportation (UDOT).
BACKGROUND:
House Bill 433 (HB433) enacted by the Utah State Legislature in 2021 and subsequently modified by House Bill 1008 in 2021 allocated the following funds, for UDOT’s administration, from the General Fund:
• $68,000,000 to double track strategic sections of FrontRunner commuter rail system (“FrontRunner Project”)
• $12,000,000 for construction and improvements to the S-line streetcar facilities in Salt Lake City
• $11,000,000 for bus rapid transit in the Salt Lake Midvalley area
• $5,000,000 for an environmental study at the point of the mountain area
• $4,000,000 for a UTA and Sharp-Tintic railroad consolidation project
• $1,600,000 for a rail station in Vineyard City
• Total of $101,600,000
UDOT and UTA agreed to transfer these funds to UTA pursuant to a Pass-Through Funds Agreement entered into as of November 18, 2021.
After the Parties entered the 2021 UTA Pass-Through Agreement, UDOT distributed funds to UTA until the 2022 General Session of the Utah State Legislature enacted HB322 which gave UDOT oversight and supervisory responsibility for fixed guideway capital development projects that include state funding.
After HB322’s enactment UDOT and UTA entered an HB322 Implementation Agreement. In the 2022 Implementation Agreement, the Parties acknowledged that the passage of HB322 had impacted the 2021 UTA Pass-Through Agreement because HB322 gave UDOT responsibility for the projects that it funded. The Parties agreed that UDOT would cease further transfers of funds to UTA under the 2021 UTA PassThrough Agreement and that UTA would return certain funds to UDOT once the Parties had determined how to make that transfer.
In 2022 HB3, the Utah State Legislature also appropriated an additional $75,000,000 to UDOT to double track strategic sections of the FrontRunner commuter rail system, and the legislature expressed an intent that UDOT use up to $5,000,000 of that appropriation for planning and environmental analysis to extend FrontRunner to Payson, including station area planning as appropriate.
To provide for needed work, UDOT now wants to designate UTA as a party that will perform work for the projects listed in the 2021 UTA Pass-Through Agreement and for the Payson environmental analysis that was funded by the 2022 Utah State Legislature.
DISCUSSION:
The parties want to provide for UTA to return to UDOT some of the funds that UDOT transferred to UTA pursuant to the 2021 UTA Pass-Through Agreement (in the amounts stated herein) so UDOT can administer those funds for the projects identified herein (which the Parties acknowledge will include UDOT using some of such funds to pay for approved reimbursement requests submitted by UTA).
The table below shows transfer of funds by UTA to UDOT
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Amount that UDOT transferred to UTA that UTA will transfer back to UDOT: |
Applicable project: |
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$51,000,000 |
This amount was transferred to UTA pursuant to the 2021 UTA Pass-Through Agreement to be used to double track strategic sections of the FrontRunner commuter rail system. |
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$3,000,000 |
This amount was transferred to UTA pursuant to the 2021 UTA Pass-Through Agreement to be used for the Sharp-Tintic railroad consolidation project. |
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TOTAL TRANSFER AMOUNT |
$54,000,000 |
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The table below shows completion of remaining pass-through transfers from UDOT to UTA:
|
Project |
Amount Appropriated |
Amount Transferred Already from UDOT to UTA |
Amount Remaining to transfer from UDOT to UTA |
|
Point of the Mountain |
$5,000,000 |
$3,750,000.00 |
$1,250,000 |
|
S-Line Streetcar |
$12,000,000 |
$9,000,000.00 |
$3,000,000 |
|
Mid Valley-Bus Rapid Transit |
$11,000,000 |
$8,250,000.00 |
$2,750,000 |
|
Vineyard |
$1,600,000 |
$1,600,000.00 |
$0 |
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|
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Total Appropriated: |
$29,600,000 |
Remaining Total Transfer Amount: |
$7,000,000 |
The purpose of this Agreement is to establish the transfer of funds between UDOT and UTA that have been legislated by the State of Utah and true up the allocated funding.
ALTERNATIVES:
HB 322 gave UDOT responsibility for the projects the legislature funded and UDOT and UTA agreed that further transfer of funds would cease. This agreement is necessary to true up UDOT and UTA funds, there is no viable alternative.
FISCAL IMPACT:
The fiscal impacts to UTA are neutral. UTA receives funds they are entitled while returning the necessary funds to UDOT to make them whole.
ATTACHMENTS:
Agreement (UTA Contract #:24-P00350)