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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): |
Mary DeLoretto, Chief Service Development Officer |
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Daniel Hofer, Director Capital Assets and Project Controls |
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TITLE:
title
Draft Capital Budget Amendment #2 and Revision to 2023-2027 Capital Plan
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AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Informational item for discussion.
BACKGROUND:
On December 21, 2022 the Board of Trustees approved the 2023-27 Capital Plan and the 2023 Capital Budget. UTA staff are proposing the addition of two new projects to the 2023 Capital Budget, and to advance the 2024 budget of an existing project to the 2023 budget year to facilitate delivery of that project. This budget amendment will also require an amendment to the Capital Plan. This proposal would add budget authority in 2023 for the three projects described below.
Board of Trustee Policy Number 2.1, Financial Management, allows the Board of Trustees to amend or supplement the budget at any time after its adoption.
DISCUSSION:
The amendments being proposed to the 5-Year Capital Plan and 2023 Capital Budget include:
2023-2027 5-Year Capital Plan Amendment
This request 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 delivery team has been working hard to refine its project scope, schedule, and budget and is ready to execute on this initiative.
This 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, 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.
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 balances.
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.
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.
2023 Budget Amendment
The changes to the 5-year plan described above will require an additional $6,663,000 in 2023 Budget Authority. This includes:
• MSP205- Tiger Program of Projects
Proposed 2023 Budget $13,269,000 - net increase $2,809,000
$2,809,000 in planned 2024 funding accelerated from 2024 to 2023 to complete this project per grant agreements
• MSP240- Operator Restrooms throughout System
Proposed 2023 Budget $1,854,000 - net increase $1,000,000
$1,000,000 in grant funding. Remaining $854,00 in required budget authority will be realized by reducing the 2023 budget for project SGR409- System Restrooms Modification
• ICI230- Workforce/Enterprise Asset Management System
Proposed 2023 Budget $4,300,000, net increase $2,854,000
$2,854,000 in additional 2023 Budget Authority is required - this increase in required 2023 budget authority will be offset by reductions in 2024 projects. The remaining $1,446,000 in required budget authority will be realized by reducing the 2023 budget for project MSP269- Warm Springs Sewer Line Relocation.
ALTERNATIVES:
MSP240- Operator Restrooms throughout 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.
The request to amend the 2023 Capital Budget will advance $6.663 million to the 2023 Capital Budget to fund the projects presented.
These requests will not have a negative impact on UTA’s fund balance over the 5-Year Capital Plan.
ATTACHMENTS:
• 2023-2027 Capital Plan Amendment (for Budget Amendment 2)
• 2023 Capital Budget Amendment 2 - Exhibit A