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TO: |
Local Advisory Council |
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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): |
Mary DeLoretto, Chief Capital Services Officer |
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Daniel Hofer, Director of Capital Assets and Project Controls |
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TITLE:
title
AR2023-05-02 - Resolution Approving the Proposed Second Amendment to the 2023-2027 Capital Plan and Recommending Approval by the Authority’s Board of Trustees
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution AR2023-05-02 to approve the second amendment to the 2023-2027 UTA Capital Plan and recommend adoption by the Authority’s Board of Trustees.
BACKGROUND:
On December 21, 2022 the Board of Trustees approved the 2023-27 Capital Plan and the 2023 Capital Budget. A first amendment to the Capital Plan was presented to the Local Advisory Council in February and adopted by the Board of Trustees on March 8, 2023. UTA staff are now proposing a second amendment that will add two new projects to the 2023 Capital Plan and advance an existing 2024 project to the 2023 budget year. This proposal would amend the 2023-27 Capital Plan, allowing the three projects described below to be considered for a 2023 Capital Budget amendment to support this plan.
Board of Trustee Policy Number 2.1, Financial Management, allows the Board of Trustees, after consultation with the Local Advisory Council, to amend the budget.
DISCUSSION:
The amendments being proposed to the 5-Year Capital Plan and 2023 Capital Budget include:
2023-2027 5-Year Capital Plan Amendment
The proposed amendment adds two projects to the approved 2023-2027 Capital Plan and accelerates existing funding for a third project from 2024 to 2023.
1) ICI230- Workforce/Enterprise Asset Management System - 5-Year Cost is $13,446,000
This is a new project that UTA feels is in alignment with our overall strategy. The project will upgrade and provide a replacement for a comprehensive Operations System. This is a critical operational and technology infrastructure to support and deploy UTA’s daily service delivery needs in both Operations and Maintenance. The software UTA are procuring will have two primary focus areas:
1- Workforce Management System: A system that allows for the effective management of the entire bid to pay process for operators, train hosts, maintenance, and other UTA team members across all modes while adhering to all regulatory requirements.
2- Enterprise Asset Management System: A single, transit specific, asset management and maintenance system allowing for deep native integration with UTA data ecosystems.
Multiple Application Systems at UTA have exceeded or will reach the end of their useful life over the next couple years. An example of this is the OWATS (Operations Work Assignment and Tracking System) system that operators use to bid on routes, assign daily schedules, and track and measure key records. This system has several challenges with its infrastructure and is no longer supportable. There are currently over 21 separate one-off application systems used that require critical enhancements or full replacements. This project will be for a comprehensive Operating System for all Operations/Maintenance groups at UTA, which will improve reporting, improve operational efficiencies, and expand functionality with scalability and additional security measures.
The project delivery team has been working hard to refine this project’s scope, schedule, and budget and is ready to execute on this initiative.
2) MSP240- Operator Restrooms throughout System - 5-Year Cost is $1,854,000
This is a project that had previously existed in UTA’s 5-year Capital Plan as recently as 2021. The project had stalled but is ready to be reintroduced into the capital program. The project delivery team has been working hard on its scope, schedule, and budget reviews and has a delivery plan that will allow for up to four restrooms to be installed throughout UTA’s system this year. This project does have a federal grant associated with it and will also be transferring $854,000 from an existing SGR409- System Restroom project to complete funding for his project.
3) MSP205- Tiger Program of Projects - 5-Year Cost is $13,269,000
This is a project that UTA has been working on since 2018 and is nearing completion. This project is part of a federal grant which has a completion date set for this year in Q4. To better align the budget with the delivery requirements of this grant, UTA is seeking to move the 2024 approved plan of $2,805,000 into the 2023 current budget year.
These three projects have a 5-year total estimated cost of $28.6 million, with a total net addition to the 5-year plan of $1 million (which is revenue backed through grant funding). There is no impact to UTA’s fund balance.
ICI230 & MSP240 projects have progressed to a point where they are ready to move forward and start the procurement process pending the addition of the projects to the capital plan and budget.
The majority of the funds for the additional project budget modifications will come from adjusting the budgets of other projects in the adopted 5-Year Capital Plan to better align with their overall delivery potential for the year based on the current anticipated need. UTA will add $1 million in grant funds to the MSP240 project in 2023.
ALTERNATIVES:
MSP240- Operator Restrooms throughout the system & ICI230- Workforce/Enterprise Asset Management System projects could wait to be added to the 2024-2028 Capital Plan, but UTA would lose 6 months in procurement and construction time which would cause delays to these projects. UTA would also be at risk of losing the grant funds if they are not executed this year.
MSP205- Tiger Program of Projects could run a risk of having insufficient budget authority this year to complete the project in accordance with the terms of their grant agreement.
FISCAL IMPACT:
The request to amend the Five-Year Capital Plan can be addressed by incorporating a secured federal grant and reassigning existing capital budget funds from other projects in the approved 5-Year Capital Plan to make up the balances of these projects.
These requests will not have a negative impact on UTA’s fund balance over the 5-Year Capital Plan.
ATTACHMENTS:
• Resolution AR2023-05-02
• Second Amendment to 2023-2027 Capital Plan (as an exhibit to the resolution)