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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Dave Hancock, Chief Service Development Officer |
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PRESENTER(S): |
David Hancock, Chief Capital Services Officer |
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Daniel Hofer, Director- Capital Assets and Project Controls |
TITLE:
title
R2023-12-02 - Resolution Adopting the Authority’s 2024-2028 Capital Plan
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2023-12-02 adopting the 2024-2028 Five Year Capital Plan.
BACKGROUND:
UTA’s 5-year Capital Plan is required to be updated every year, per the UTA Board of Trustees Policy 2.1 Financial Management. The 5-year Capital Plan includes all construction, capital improvements, major equipment purchases, and other special projects requiring expenditures over $25,000. This includes projects that are funded partially or fully by outside funding sources, such as grants or local partners.
The plan is required to be financially constrained and maintain assets at a state of good repair, to protect UTA’s capital investments, and minimize future maintenance and replacement costs. Five-year forecasts help mitigate the challenges of applying a one-year budget to multi-year projects and support long-range financial planning and prudent management of the Agency.
Utah’s Public Transit District Act and Board Policy 2.1 requires the 5-Year Capital Plan to be approved by the Local Advisory Council prior to being presented to the Board for adoption.
DISCUSSION:
The proposed 2024-2028 Capital Plan being presented to the Board for adoption was developed with five primary goals in mind:
• Maintain a safe system that operates in a state of good repair.
• Provide a plan consistent with the constraints of the projected capital budget.
• Include service expansion projects with the regional long-range transit plans.
• Leverage UTA funds with federal grants and partner funds.
• Align the Capital Plan with the agency’s strategic goals and objectives.
The five-year plan that will be presented to the Board includes an $815 million investment in state of good repair efforts, over $276 million for expansion projects, and nearly $180.5 million that support strategic initiatives and other programs.
Some of the major capital project initiatives included in the five-year plan are:
• Light Rail Vehicle Replacement Project - includes nearly $240 million to replace the SD100 and SD160 vehicles.
• Light Rail Vehicle Rehab - includes $47.5 million to rehab existing vehicles.
• Mid-Valley Bus Rapid Transit (BRT) - new BRT route from Murray Central Station to West Valley Central Station will begin construction in 2024 and has $100.7 million planned between 2024 and 2026.
• Replacement Buses - includes $120 million.
• Train Control Rehab & Replacement - includes $46.7 million.
• Westside Express (5600 West) - includes $43.1 million.
• FrontRunner Forward - a project, in partnership with the Utah Department of Transportation (UDOT), that will add 9 double track segments, 15-minute peak service, and 30-minute all-day service when completed.
The proposed plan was presented at the October 25th Board meeting for feedback and was subsequently presented to the Local Advisory Council on November 29th where they approved the plan in resolution AR2023-11-02 and recommend adoption to the Board of Trustees.
ALTERNATIVES:
The Board of Trustees could recommend changes to the plan. Revisions to the plan would require review and approval with the Local Advisory Council before the Board’s adoption. This would delay adoption of the updated plan until March 2024.
FISCAL IMPACT:
The 2024-2028 Capital Plan includes a total planned expense of $1,271,898,000. Funding sources for this plan include:
• Grants- $330,107,000
• State and Local Partners- $135,327,000
• Financing- $380,838,000
• UTA Funds- $425,626,000
The 2024 year of the Capital Plan, which represents $230,433,000, will be incorporated into UTA’s Final 2024 Capital Budget being presented to the Board on December 20th for adoption. Funding sources for 2024 include $58,020,000 from grants, $331,596,000 from state/local partners and $107,253,000 from UTA funds.
ATTACHMENTS:
• R2023-12-02, including the 2024-2028 Capital Plan as Exhibit A
• Board Presentation