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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, Director, Capital Assets and Project Controls |
TITLE:
title
TBA2023-02-01 - Technical Budget Adjustment for 2023 Capital Budget
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AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Approve Technical Budget Adjustment TBA2023-02-01 to reallocate resources to 2023 capital 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 several projects in UTA’s 2023 Capital Program with additional funds to complete projects this year.
Budget Adjustment:
This proposed transfer of $9.504 M in technical budget adjustments in the 2023 Capital Budget will transfer funds to five projects to aid in their delivery and meet partner commitments.
DISCUSSION:
FMA543- Police Vehicle Replacement
Project has a current budget of $51,000. The previous annual budgets for police vehicle replacements averaged about $350,000 per year, or enough to purchase and outfit approximately seven police vehicles. There was a miscommunication during budget preparation which created a budget discrepancy. This request is to transfer $349,000 from contingency to get the budget to a total of $400,000 that will fund replacement of eight vehicles this year.
FMA658- Bus Camera Overhaul/Replacement
Project has a current 2023 budget of $2,145,000. During the 2023 budget development process, the software costs were not included in the project budget. This request would add $325,000 to acquire the necessary software. $325,000 will be transferred to this project from the MSP999 Capital Contingency fund. This will bring the total 2023 budget authority for this project to $2,470,000.
MSP156- Prop 1- Davis County
Project has a current budget of $113,000. This project is to construct or improve bus amenities in Davis County. This project has stalled for a time but is now ready to be advanced. The request is to add $830,000 from the MSP999 Capital Contingency fund to this project to complete the Davis County work planned for this year. This will bring the total 2023 project budget to $943,000.
MSP259- S-Line Extension
In 2021 the State of Utah appropriated $12 million for UTA to extend the S-Line . During the project planning process, it was determined that the estimated cost to complete this project is approximately $18 million. This request fully funds the estimated cost to complete the project, allowing UTA to continue planning and design while working with its partners on a final funding strategy that may include local funding contributions.
This request would transfer $6 million from the Partnership Funds budget to the 2023 budget for the S-Line Extension project. This will reduce the 2023 Partnership Project budget from $10 million to $4 million and will raise the 2023 S-Line Extension budget currently at $1.9 million, to $7.9 million and fills the $6 million gap to complete the project in 2024.
SGR393- Grade Crossing Rehab/Replacement
This request is due to some partnering efforts UTA is doing within the Daybreak area. Daybreak is looking to install some new roads this year and there are some improvements being requested at five crossings in the Daybreak area on UTA’s Red line to better accommodate these new road installations.
There is some cost sharing being worked out between Daybreak and UTA. This request came after the budget preparation cycle was completed. This request is to transfer $2 million from the MSP273 Partnership Funds line to the SGR393- Grade Crossing Rehab/Replacement project. These crossings would be the first ones accomplished in 2023 starting in either March or April of 2023.
This would further reduce the MSP273 Partnership Project line to $2 million and will raise the SGR393 Grade Crossing Rehab/Replacement project budget to $4.75 million in 2023. Work should be accomplished this year and will not delay the other planned replacements UTA was scheduled to accomplish this year.
MSP273- Partnership Funds
The MSP273 Partnership Funds project has a total of $10 million in 2023. The sum of the two requests to move Partnership funds would reduce the overall budget by $8 million in 2023 leaving a balance of $2 million in budget authority in 2023.
MSP999- Capital Contingency
The current budget amount for the Capital Contingency fund is $5 million. The sum of the three requests funded from the Contingency is $1.504 million. With the approval of this request, the new Capital Contingency fund amount will be $3.496 million.
ALTERNATIVES:
If these projects did not receive the requested funding it would result in work being delayed or cancelled. The MSP259 S-Line Extension project could address this shortfall during the 2024-2028 Five Year Capital program preparation cycle later this year.
FISCAL IMPACT:
These requests can be addressed using funds currently existing in UTA’s 2023 Capital budget. This will not affect UTA’s fund balances or total 2023 Capital appropriation.
ATTACHMENTS:
Technical Budget Adjustment - Exhibit A