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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
TBA2022-08-01 - Technical Budget Adjustment - 2022 Capital Budget
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
It is recommended that the Board approve the Technical Budget Adjustment TBA2022-08-01 to transfer $4,014,000 of contingency and Partnership funds to the six projects as presented.
BACKGROUND:
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. This request is to supplement four (4) projects with funds from the capital contingency fund and two (2) projects from the Partnership Project fund. This proposed technical budget adjustment will transfer $4,014,000 to these projects to ensure delivery of the capital program, take advantage of two partnership opportunities, and correct technical budget errors.
This request also addresses an oversight in the Carryforward process whereby funding for an ongoing project was not included in the list reviewed and approved by the Board at their April 27, 2022, meeting. Staff is requesting addition of project MSP210- Update Bike Racks to the Carryforward list for 2022.
DISCUSSION:
SGR407- Bus Stop Enhancements
This project has a current budget of $1,000,000. This project was funded in 2022. UTA was approached with a partnering opportunity with Salt Lake City to participate in bus stop improvements on the 200 South rehabilitation project. Salt Lake City has requested UTA contribute $1,300,000 to this effort. This would be a financial contribution only. UTA is requesting to transfer $1,300,000 from its Partnership Projects fund to SGR407- Bus Stop Enhancements to participate in this effort. This would increase the overall SGR407 project budget from $1,000,000 to $2,300,000. This would reduce the 2022 Partnership Project budget authority from $9,700,000 to $8,400,000.
MSP205 - TIGER Program of Projects
UTA is seeking Board approval to execute a $3.5 million funding supplement to the Interlocal Cooperation Agreement with Provo City to complete Phase 2 of the Provo Pedestrian Bridge.
As part of the funding agreement, UTA has committed $1 million, to be transferred from MSP273 - Public Partnership Projects. This would increase the overall MSP205 2022 project budget from $8,506,000 to $9,506,000. This would further reduce the 2022 Partnership project budget authority from $8,400,000 to $7,400,000.
No additional 2022 budget authority would be needed for the TIGER Program of Projects related to this request.
REV211- Bus Replacement
UTA has been notified by its bus vendor, Gillig, that cost escalation on the current procurement contract will increase the price by $720,000. UTA project staff is working with Procurement and Gillig to execute a change order to the contract to address this escalation.
This request would transfer $720,000 from MSP999- Capital Contingency to REV211 and increase the overall REV211 project budget from $11,307,289 to $12,027289.
FMA645- Camera Sustainability
An unforeseen issue at American Fork FrontRunner station is affecting the performance of UTA’s security cameras in the parking lot. This is primarily due to the cable runs installed during the initial installation that went above and beyond industry standards in terms of typical cable lengths. This issue is impacting the performance of the cameras in the area.
To remedy the situation, UTA is requesting $50,000 from Contingency. This would raise the overall FMA645 project budget from $470,000 to $520,000 and work will be completed this year.
MSP122- Positive Train Control
This request transfers $800,000 from Contingency to the MSP122- Positive Train Control project. The request primarily stems from an administrative oversight, creating the need to cover the costs for an unpaid December, 2021 invoice. Carryover funds were not requested for this project due to the belief the invoice had been paid. This has created a funding gap in the project. This request is to cover the amount of that unpaid invoice and cover the remaining obligations through the end of 2022.
This request would raise the overall budget of MSP122 from $302,000 to $1,102,000
MSP210- Update Bike Racks on FrontRunner
Due to a programming error, this project with existing 2021 budget authority was not included in the 2022 budget or the 2022 Carryforward process. A total of $296,000 in 2021 expenditure authority was available to carryforward.
FRA recently approved UTA’s bike rack design and this project is now ready to proceed. It is funded by two previously awarded federal grants. The revised budget is $440,000 with $290,600 in grant funds and $149,400 in UTA money.
This request seeks to recognize the $296,000 in carryforward from 2021 and augment that funding with $144,000 from the Contingency project.
MSP273 - Public Partnership Projects
This funding initiative was created in the Capital program to fund transit improvements with local partners and stakeholders. Working with our partners and MPOs, projects are identified and prioritized for funding. The two projects in this request will support local transit investments in Salt Lake and Utah Counties.
Funding transfers to these two projects total $2.3 million. This will leave a balance of $7.4 million in the Public Partnership Project for 2022 available for transfer to other emerging projects.
MSP MSP999- Capital Contingency
The current budget amount for the Capital Contingency fund is $4,060,000. Based on the requests for this budget adjustment, the net result will be the transfer of approximately $1,714,000 to the four capital projects identified here. This will leave a balance of approximately $2,346,000 in the Capital Contingency fund.
ALTERNATIVES:
The Board may consider approving all or some of the proposed technical budget adjustments and make recommendations to staff accordingly.
FISCAL IMPACT:
These requests will be covered by existing budget authority. There is no fiscal impact to UTA’s capital budget as a result of these transfers. This request will not impact UTA’s 2022 Budget Authority or 5-year fund balances.
ATTACHMENTS:
TBA2022-08-01 - Technical Budget Adjustment - 2022 Capital Budget, Exhibit A