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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): |
Bill Greene, Chief Financial Officer |
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Daniel Hofer, Manager Capital Assets and Project Controls |
TITLE:
title
Amendment 1 to the Authority’s 2022 Capital Budget
end
AGENDA ITEM TYPE:
Discussion
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. A resolution is required for a budget amendment. A proposed amendment to the Authority’s 2022 Budget is being presented today for discussion.
A resolution for the amendment will be presented at a future Board meeting after consultation with the Local Advisory Council (LAC) at their June 1, 2022 meeting.
BACKGROUND:
Budget Amendment
This proposed $4,223,000 amendment to the 2022 Capital Budget recognizes new CMAQ funding awarded for the Utah County Bus Stop Improvements Project, adds three (3) new projects to the capital program, and seeks to restore the Capital Contingency reserve to its original authorized level of $5,000,000.
At the June 1, 2022 LAC meeting, staff will also be providing an update on 2021 program delivery and discussing the carryforward of 2021 budget authority presented to the Board of Trustees at their April 27, 2022 meeting.
DISCUSSION:
MSP224- UTA ADA Bus Stop Improvements- Utah County
This project is an existing 2021 project that was not funded in 2022. Subsequently, UTA was awarded CMAQ funding and would like to recognize new budget authority for construction activities in 2022. This request would restore this project to the 2022 Capital Budget and recognize the CMAQ funding that has been programmed for this project and the necessary match. CMAQ Funding amount is $268,500 and UTA’s match is $19,500 for a total of $288,000.
MSPXX1- Station Area Planning
In an effort to catalyze real estate development around UTA stations, the Utah Legislature recently passed a bill (HB462) requiring every municipality with a fixed guideway transit station to complete a Station Area Plan (SAP) by 2026. UTA has assured the Legislature, the Metropolitan Planning Organizations (MPOs), and our city partners that the agency will meet this increased demand with additional technical assistance and expertise.
This budget request covers the cost of initiating UTA’s effort in 2022, either through consultants, contractors, additional UTA staff, or a combination. The Transit Oriented Development (TOD) group, in close coordination with UTA’s Strategic Planning team and the MPOs, will determine how best to meet the legislative requirements to create development-focused plans that are responsive to the market realities surrounding transit stations.
The 2022 amount being requested for this new project is $120,000.
SGRXX1- Fiber Rehab and Replacement Project
UTA has an opportunity to realize economies of scale and accelerate fiber technology throughout the system by advancing material purchases to this year. These fiber purchases will support substation rehabilitation and other fiber installation projects throughout the system next year. By advancing this purchase, installation and project completion will be expedited on projects sharing the fiber network.
This request will cover design and material costs with anticipated fiber delivery this year. The installation and construction costs are anticipated to occur next year. This construction acceleration will be addressed in the 2023-2027 5-year Capital Plan update later this year.
Materials currently have a six-month lead time. This request is for $750,000
MSP999- Capital Contingency
During 2022, the contingency has been depleted from $5 million to $1.947 million to address funding gaps on several projects year to date. This request is to restore the Capital Contingency to the original authorized level of $5 million dollars to address emerging needs, potential cost overruns and allow UTA to take advantage of unanticipated opportunities to improve the system.
ALTERNATIVES:
N/A
FISCAL IMPACT:
These requests would ultimately impact UTA’s overall budget by adding $4,211,000 to UTA’s capital budget. This is comprised of $268,500 CMAQ funding and $3,942,500 from UTA’s fund balance.
ATTACHMENTS:
Capital Program Budget Amendment #1 - Exhibit A