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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Mary DeLoretto, Chief Capital Services Officer |
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PRESENTER(S): |
Viola Miller, Chief Financial Officer |
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Daniel Hofer, Director of Capital Assets and Project Controls |
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Greg Andrews, Senior Financial Analyst |
TITLE:
title
TBA2023-09-01 - Technical Budget Adjustment for Capital Budget Transfers
end
AGENDA ITEM TYPE:
Other Approval
RECOMMENDATION:
In accordance with Board of Trustee Policy Number 2.1, Financial Management, the Board of Trustees may amend or supplement the budget at any time after its adoption. This request is to supplement several projects in UTA’s 2023 Capital Program with funds transferred from other projects or the Capital contingency to complete projects this year.
It is recommended that the Board accept the recommendations and approve the transfer of funds for these projects.
BACKGROUND:
Proposed Budget Adjustment
This proposed transfer of $3.043 million in Technical Budget Adjustments to the 2023 Capital Budget will transfer funds to five projects to aid in their delivery.
DISCUSSION:
MSP227- Meadowbrook Expansion
Project has a current budget of $10,000. Project is complete but UTA received a late invoice for work completed in 2022 that was previously not billed for. The request is to add $15,000 to this budget from Contingency to cover this invoice. This will bring the total project budget to $25,000 for 2023.
MSP266- 3500 South Upgrade
Project has a current budget of $9,000. The request is to add $148,000 to aid in the delivery of the 3300/3500 South bus stop and signalization upgrades. Project works in conjunction with MSP207 & MSP270 to deliver these upgrades. There are plans to install upgraded equipment on 43 buses at Meadowbrook this fall. $148,000 would be needed for the installation of these new components. This would bring the 2023 project budget to $157,000. Funds would be transferred from Contingency.
FMA652- Equipment Managed Reserve
Project has a current budget of $943,000. This request is to provide funding for a new forklift and order picker for the Depot District. The request is to add $80,000 from the MSP999 Capital Contingency fund to this project to complete the work planned for this year. This will bring the total project budget to $1,023,000.
FMA679- Building Remodel/Reconfiguration
Project has a current budget of $1.17 million in 2023. This project is used to perform minor facility upgrades throughout UTA’s facilities such as adding offices or conference rooms, or other minor projects of similar nature. This project is requesting $800,000 to allow it to accommodate additional planned work for this year and to advance work related to the Facility Master Plan development and start design work on upgrades needed at Timpanogos, Riverside, and Meadowbrook Building 7. The request would raise the 2023 project budget to $1,970,000. Funds would be transferred from SGR390- Jordan River Building 2 Remodel and MSP999- Contingency.
SGR390- Jordan River Building 2 Remodel
Project currently has a budget of $1.965 million in 2023. Due to some budget adjustments earlier in the year this project has stalled until the 2024-2028 Capital Plan is approved to move forward with construction. The request is to take $500,000 from this budget and move it to FMA679- Building Remodel/Reconfiguration to help address budget needs there.
MSP999- Capital Contingency
The Contingency budget has $3,496,000 in it for 2023. The above-mentioned requests would reduce the contingency budget by a total of $543,000, leaving it with a balance of $2,953,000 for the year.
SGR397- Traction Power Rehab/Replace
This project has a 2023 budget of $15,446,000. This project is a multi-year contract which will upgrade 19 of UTA’s aging substations along its Blue and Red TRAX lines. This contract is slated to currently go through 2025. To minimize potential delays, material orders were accelerated to help mitigate risks related to supply chain constraints for 2024 and 2025 planned work activities. Materials are starting to arrive. Project is seeking to add $2,000,000 to its 2023 budget to accommodate these material orders. The budget for this request would be coming from SGR398- OCS Rehab/Replace. This project is closely aligned with the SGR397 project and efforts would help right-size both budgets with anticipated 2023 planned work. The $2,000,000 sum being transferred would be made up of $1,000,000 in formula funds and $1,000,000 in UTA Local funds.
SGR398- OCS Rehab/Replace
Project has a 2023 budget of $3,224,000. This project works in close conjunction with the SGR397 project mentioned above. To better accommodate the budget needs for these two projects and to best align the budgets with the planned work efforts as they currently stand, transferring $2,000,000 from this project to SGR397 will align the budgets with those activities. This will leave SGR398 with a 2023 budget of $1,224,000.
ALTERNATIVES:
Projects not receiving the requested funding would result in work being delayed or cancelled.
FISCAL IMPACT:
These requests can be addressed using funds currently existing in UTA’s 2023-2027 Capital Plan. This will not affect UTA’s fund balance outside of what is already included in our current Capital Plan.
ATTACHMENTS:
- TBA2023-09-01 Exhibit A-1 - Capital Budget Transfers