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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 Officer |
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PRESENTER(S): |
Bill Greene, Chief Financial Officer |
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David Hancock, Acting Capital Development Director |
TITLE:
title
Contract: House Bill 322 Implementation and Pass-Through Funds Agreement (UDOT)
end
AGENDA ITEM TYPE:
Non-Procurement Agreement
RECOMMENDATION:
Approve the HB 322 Implementation and Pass-Through Funds Agreement and authorize the executive director to execute the agreement and associated disbursements.
BACKGROUND:
Pursuant to House Bill 322 (HB 322) enacted by the Utah State Legislature during the 2022 General Session, UDOT and UTA are required to enter into an agreement whereby UTA will pay $5,000,000 per year to UDOT for 15 years “to facilitate the purchase of zero emissions or low emissions rail engines and trainsets for regional public transit rail systems”. The minimum payment of $5,000,000 is paid to UDOT each calendar year by December 31st for 15 years or until the total amount of $75,000,000 has been paid, whichever occurs first. The first payment is due by December 31, 2022.
DISCUSSION:
This Implementation Agreement provides for the $5,000,000 per year payment from UTA to UDOT and also cancels UDOT’s scheduled June 2022 remaining payment of $25,400,000 due to be paid to UTA under the 2021 Pass Through Agreement. Other HB 322 implementation matters are not addressed at this time but are intended to be addressed in subsequent addendums to this current Agreement as the need arises. Subsequent addendums will be brought to the Board in accordance with the established Board approval thresholds.
CONTRACT SUMMARY:
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Contractor Name: |
Utah Department of Transportation (UDOT) |
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Contract Number: |
22-P00169 |
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Base Contract Effective Dates: |
06/08/2022 - 12/31/2037 |
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Extended Contract Dates: |
NA |
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Existing Contract Value: |
NA |
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Amendment Amount: |
NA |
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New/Total Contract Value: |
$75,000,000 over 15 years |
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Procurement Method: |
NA |
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Budget Authority: |
State Statute |
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ALTERNATIVES:
No known alternatives
FISCAL IMPACT:
Once the UTA Board approves the House Bill 322 Implementation Agreement, UTA is obligated to issue payment to UDOT in the amount of $5,000,000 due the 31st of December each year for 15 years.
The agreement provides UTA discretion to pay all or part of the $75 million total from a fund source of UTA’s choosing as long as the payments comply with the underlying House Bill.
Over the coming months, UTA and UDOT will develop a proposed payment plan including fund source and annual payment amounts (minimum annual payment of $5 million).
UTA staff will return to the Board to request 2022 appropriation authority to cover the agreed to payment at that time.
ATTACHMENTS:
HB 322 Implementation Agreement