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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Daniel Hofer, Director- Capital Programming and Support |
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Greg Andrews- Senior Capital Budget Analyst |
TITLE:
title
TBA2024-10-01 - Technical Budget Adjustment - 2024 Capital Program
end
AGENDA ITEM TYPE:
Other Approval
RECOMMENDATION:
Approve TBA2024-10-01 to authorize transfer of $6.011 million between various projects within the 2024 Capital Budget as presented.
BACKGROUND:
Board Policy 2.3 Budget allows the Board of Trustees to amend or supplement the Authority’s budget at any time after its adoption. The Board may do this through a Technical Budget Adjustment (TBA) when the request does not increase budget authority, or through a Budget Amendment, after consultation with the Local Advisory Council, when an increase in the annual appropriation authority is requested.
DISCUSSION:
This Technical Budget Adjustment will transfer a total of $6.011 million to various projects within UTA’s 2024 capital budget to aid in the delivery of projects this year. This request will affect the current budget total of 20 different projects within UTA’s capital program. Due to the length of the list, a supplemental document has been provided that details the current budgets for the affected projects, the requested amount, and the proposed new total, upon approval from the Board of Trustees.
The main benefits UTA anticipates resulting from the proposed Technical Budget Adjustment include:
• Aligning budgets with contract milestones or anticipated expenditure amounts for the projects thru the end of 2024.
The following are projects where the budgets will be increased:
• The Mid-Valley Connector project is a federally funded grant project that connects the Murray Central Station with the West Valley Central Station via Salt Lake Community College. This project received a Letter of No Prejudice (LONP) from the Federal Transit Administration in advance of the grant award which allows work on the project to progress in advance of formal issuance of the actual award. Work has been able to progress rapidly on this project and the Project team believes adding these additional funds will allow them to continue advancement of this construction thru 2024.
• The Program Management Support project is a general capital program support line that supports the execution of UTA’s capital program in a more programmatic way as opposed to being more project specific. This addition of funds will allow UTA to continue to add some additional scope to the HNTB program management support in the general administration of the capital program and accommodate some additional UTA salaries for employees who support the capital program in general. This additional work and employee salaries are in addition to the ones that were discussed in the July Technical Budget Adjustment request. The previous one was done before the final cash flow exercise was completed to determine a final forecast for the year.
• The Facility Rehab and Repair project is used to perform rehabilitation and replacement work related to UTA facilities and to systems that are integral to the functionality of these systems. This additional funding request will allow the project team to complete the fire suppression upgrade at Meadowbrook and the Timpanogos yard concrete and tank containment rehabilitation.
• The FrontRunner 2X project is done in conjunction with UDOT. This is for the double-tracking efforts related to UTA’s FrontRunner system. These additional funds will be used for program management services as it relates to the procurement of the new vehicles that will come as a part of this project.
• The Bus Stop Enhancements project is used to provide additional bus stops or improve existing ones in support of UTA’s five-year service plan. These additional funds will allow for work to continue through 2024 in strategic locations around downtown Salt Lake City.
• The Operator Restrooms throughout System project will be increased to address some change orders and provide contingency to this project. Due to the unique site conditions at each location as well as sometimes hidden conditions, these changes are often difficult to foresee.
The main reason for decreasing the funding levels of the other offsetting projects would be to align the project budget more closely with the anticipated total need required at the end of the year.
ALTERNATIVES:
The following are options the Board could consider and the potential impacts of those decisions:
• Projects could be cancelled.
• Projects could be delayed until next year.
• The board may request revisions to the proposed Technical Budget Adjustment.
FISCAL IMPACT:
The proposed TBA of $6.011 million will be funded by the approved 2024 Capital Budget. Funds will be redistributed among the projects as described in the presentation and supplemental material contained within this packet.
If TBA is approved, there will be a balance remaining in the Capital Contingency of $3,945,000 (unchanged by this TBA).
There is no increase in budget authority. There will be no impact on UTA’s Fund Balance with this TBA.
ATTACHMENTS:
• TBA2024-10-01 Technical Budget Adjustment - Capital
• TBA2024-10-01 Technical Budget Adjustment - Details