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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 Service Development Officer |
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PRESENTER(S): |
Brad Armstrong, Sr. Manager Budget and Financial Analysis |
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Dan Hofer, Manager Capital Assets and Project Controls |
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Paul Drake, Director of Real Estate and TOD |
TITLE:
title
Technical Budget Adjustment - 2022 Capital Budget and Full Time Employee Adjustments
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Approve a technical budget adjustment for the 2022 Capital Budget to (1) move $950,00 from the Capital Contingency, (2) add $3,710,000 of 2021 carryforward budget authority, (3) adjust four existing capital projects as presented, and (4) approve one additional Full Time Employee (FTE) in the Real Estate & Transit Oriented Development (TOD) Department, funded within the existing TOD capital projects
BACKGROUND:
After the formal approval of the 2022 Capital Budget, four projects have emerged that need technical budget adjustments to address budget authority shortfalls for 2022. This will be accomplished through use of the Capital Contingency and identified underruns in 2021 and the associated carryforward of 2021 budget authority to complete these projects in 2022.
There was an oversight and omission of $400,000 in grant funding and match for the Optical Detection Next Steps project. This request seeks to recognize that revenue in the five-year financial plan.
There is a need to bring on an additional Project Manager in the TOD Department to assist with the development of the new Headquarters (HQ) Building.
DISCUSSION:
The following projects are requesting funding to be moved from the current Capital Contingency Fund (MSP999, current budget $5M) and recognition of 2021 carryforward budget authority.
MSP268- Optical Detection Next Steps project is a new project in the Adopted 2022 Budget. During budget preparation, grant funding and local partner funding amounts were omitted in error. This request will move contingency funds of $400,000 to this project. Appropriation authority is needed to reflect funding so an agreement can be executed as soon as possible.
Grant funding for this project in the amount of $310,000 and local partner match (contributions from the University of Utah and a private firm, Autofill) of $90,000 total $400,000. This new revenue will be recognized in the financial plan.
MSP257- Gap Filler on Front Runner Stations is an existing project with 2022 budget authority of $750,000.
UTA will be carrying forward $1,000,000 of unspent budget authority from 2021. The resulting 2022 budget authority will be $1,750,000.
MSP227- Meadowbrook Expansion is an existing project with combined 2021-2022 budget authority of $3,964,000. During project development, additional construction costs have emerged, namely the rerouting of a power line utility that is interfering with the new bus bays. This project is requesting an additional $200,000 from Capital Contingency to address these needs. Combined with the addition of 2021 carryforward budget authority of $1,366,000, this will bring the total 2022 budget authority to $1,816,000.
MSP081- Tooele Bus Facility is an existing project with 2021 budget authority of $1,368,000. Due to a late start on the construction effort only $24,000 was spent in 2021.
Project development has identified scope and cost increases including a full roof replacement and updates to the electrical system. This project is requesting an additional $350,000 to address these needs. Combined with the addition of 2021 carryforward budget authority of $1,344,000, this will bring the total 2022 budget authority to $1,694,000.
The following project is requesting approval for an additional FTE:
New TOD Project Manager Position
The TOD Department is requesting authorization to add an additional TOD Project Manager. This position was originally contemplated for addition in 2023, but due to the additional workload of developing the new HQ building in-house, the need has been accelerated.
The new TOD Project Manager will assist with the Station Area Plans (9 are anticipated for 2022), active TOD projects (such as Ogden, Clearfield, Salt Lake Central, Midvale Center Station), and prepare other projects for development (such as Roy Station, 1300 South Ballpark Station, West Jordan City Center, Fort Union Station, American Fork Station, Orem Central, and Provo Central).
This position will be funded from existing capital project budgets and will not require additional budget authority.
ALTERNATIVES:
Reject or revise the proposed technical budget adjustments
FISCAL IMPACT:
If approved, the overall budget impact will be $3,710,000 in recognition of carryforward authority from the 2021 Adopted Budget. All other changes to the Capital Program will be funded by utilizing offsets from the Capital Contingency fund ($950,000).
This request also recognizes $400,000 in new revenues from grant and local match that will be used on MSP268 - Optical Detection Next Steps project.
The FTE requested will have no fiscal impact as it will be billed to existing capital projects.
See Attachment A for a detailed reconciliation.
ATTACHMENTS:
Technical Budget Adjustment, February 23, 2022 - Attachment A