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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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Daniel Hofer, Director - Capital Programming and Support |
TITLE:
title
R2025-09-05 - Resolution Approving the First Amendment to the Authority’s 2025-2029 Five-Year Capital Plan
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Recommend approval by UTA Board of Trustees for Amendment 1 to the 2025-2029 Five-Year Capital Plan
BACKGROUND:
Board Policy 2.3 Budget allows the Board of Trustees to amend or supplement the Authority’s budget (including the first year of the five-year capital plan) at any time after its adoption. The Board may do this through a Technical Budget Adjustment (TBA) when the request does not increase budget authority, or through a Budget Amendment, after consultation with the Local Advisory Council, when an increase in the annual appropriation authority is requested.
UTA staff have brought this item to the Board of Trustees for discussion on July 23rd, 2025 and subsequently to the Local Advisory Council for consultation on August 27th, 2025.
DISCUSSION:
This proposed Amendment modifies the existing 2025-2029 Five-Year Capital Plan by adding $39,894,000 to the overall 2025 Five-Year Capital Plan.
This Amendment will affect two projects:
• SD100/SD160 Light Rail Vehicle Replacement
• Mt Ogden Admin Building Expansion
SD100/SD160 Light Rail Vehicle Replacement:
In 2023, UTA entered into a contract with Stadler to purchase 20 new Light Rail Vehicles with an option to purchase additional vehicles at UTA’s discretion. UTA has always planned to purchase at least 40 vehicles under this contract. Due to current market conditions, and with deadlines outlined in the purchase contract, UTA has determined it is in its best interest to accelerate the exercising of these options for the additional vehicles. To take advantage of the best/current pricing, these options need to be exercised in October 2025. To accomplish this, additional funding is needed in both the 2025 Capital Budget and 2025-2029 Five-Year Capital Plan.
Mt Ogden Admin Building Expansion:
UTA is about to complete design on this project. As UTA progressed through the design process, it was ultimately decided to change the physical location of this new building. It was moved from a location in the southwest corner of the lot to a location that is more closely adjacent to Wall Ave. This move required the demolition of an existing bus canopy and the installation of a new bus canopy that was not originally planned in the initial cost estimate for this project. This budget amendment will primarily address the addition of this new bus canopy as well as other minor adjustments to place the building in the new location.
While UTA does not anticipate construction to begin this year, by updating the five-year plan at this point, it will allow UTA to begin procuring a contractor for the construction of this building in 2026. This will allow for construction to start earlier in 2026 than originally planned.
ALTERNATIVES:
The following are options the Board could consider and the potential impacts of those decisions:
• The Board may reject the request to approve this amendment. The impact of this would be:
o Light Rail Vehicle Replacement- UTA would proceed with only 20 vehicles on order. It may choose at a later date to exercise the additional options. Exercising these options at a later date negates the current guaranteed vehicle pricing and UTA would likely end up spending more for the additional vehicles.
o Mt Ogden Admin Building Expansion- These additional funds will likely be brought in as part of the 2026-2030 Five-Year Capital Plan. UTA would lose the benefit of this early funding programming and only be able to utilize a smaller portion of the construction season in 2026 due to having to wait to procure a construction contractor.
FISCAL IMPACT:
This proposed Amendment will have the following impacts on UTA’s 2025-2029 Five-Year Capital Plan and the 2025 Capital Budget. Impacts are outlined below:
2025-2029 Five-Year Capital Plan:
The overall impact to the Five-Year Capital Plan will be an overall increase of $39,894,000, increasing the total five-year plan amount from $1,199,533,000 to $1,239,427,000. This increase in expense will be offset by an equal increase in bond funds.
There will be no impact on UTA’s Capital Contingency line. There is no impact on UTA’s Fund Balance, but this action will increase UTA’s Debt Service obligations by $195,785,178 over the life of the new bonds. .
ATTACHMENTS:
• R2025-09-05 Resolution Approving the First Amendment to the Authority’s 2025-2029 Five-Year Capital Plan, including Exhibit A