|
TO: |
Board of Trustees |
|
THROUGH: |
Jay Fox, Executive Director |
|
FROM: |
Viola Miller, Chief Financial Officer David Hancock, Chief Capital Services Officer |
|
PRESENTER(S): |
Viola Miller, Chief Financial Officer |
|
|
Daniel Hofer, Director Capital Assets and Project Controls |
|
|
Greg Andrews, Senior Financial Analyst |
TITLE:
title
R2023-10-06 - Resolution Approving the Third Amendment to the 2023-2027 Capital Plan
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2023-10-06 to adopt the third amendment to the 2023-2027 UTA Capital Plan which will add MSP-300 New TRAX Station in Daybreak to the 2023 Capital Plan.
BACKGROUND:
Board Policy 2.1 Financial Management requires the Authority to develop a Five-Year Capital Plan that is approved by the Board of Trustees (“Board”) after review and approval by the Local Advisory Council (“Council”).
On December 21, 2022, the Board approved the 2023-27 Capital Plan and the 2023 Capital Budget. A second version of the Capital Plan was presented to the Council in June 2023 as a Second Amendment* and adopted by the Board on June 14, 2023.
UTA staff are now proposing a third amendment that will add one new capital project to the 2023 year.
*Note - the amendment approved on June 14th was the first amendment to the plan, however, the amendment was titled “Second Amendment” in error (a scrivener’s error).
DISCUSSION:
UTA and Kennecott Land entered an Interlocal Agreement (ILA) on May 13, 2008. This agreement facilitated the construction of the Mid-Jordan Light Rail Line. The agreement granted UTA an easement to build and operate the Mid-Jordan Light Rail Line through Kennecott Land at Daybreak. The ILA contemplated a future third station in Daybreak at approximately 11000 South without assigning responsibility to either Party for the design or construction of the station.
The Larry H. Miller Group (LHMRE, LLC) recently engaged UTA in discussions about adding a TRAX station in the Daybreak development, close to the new baseball stadium they are building. The station would be located on the Redline in Daybreak between the intersection of Split Rock Road and Mellow Way, providing a third station in Daybreak. Before the Capital Development group can move forward with the proposed station, a new capital project (Daybreak Station) must be included in the 5-YearCapital Plan.
LHMRE has committed to assume the financial responsibility and will reimburse UTA for the costs to design the station (a Memorandum of Agreement will be presented to the Board for approval at this same meeting).
The resolution presented requests approval to add the following project to the 2023 year of the current Capital Plan:
MSP300- New TRAX Station in Daybreak
The addition of this new capital project, and a corresponding 2023 Capital Budget Amendment, will allow UTA and its partners to proceed with the design steps necessary to build this new station. This project will add $500,000 in 2023 for design services. UTA’s updated 2024-2028 Capital Plan is currently being developed and we anticipate adding $4.5 million, and $1.5 million in 2024 & 2025 respectively to complete construction, assuming partner or grant funds can be identified. The estimated total cost will be $6.5 million over the three years, with all funds expected to be from external sources resulting in no impact on UTA’s cash balance.
As required by statute, UTA consulted with the Local Advisory Council on September 27th, 2023 where they approved and recommended adoption of the Capital Plan amendment for the full 2023-2025 project period (approved by Resolution AR2023-09-01). Because partner funds for the project have only been secured through the 2023 design phase, our proposal to the Board is to amend only the 2023 phase of this amendment at this time.
ALTERNATIVES:
Project is currently slated to be included in the forthcoming 2024-2028 Five Year Capital Plan and 2024 Budget, pending necessary approvals. Project could wait until those approvals occur. The risk is the anticipated construction schedule is aggressive and waiting that long could potentially put us in a position where UTA could miss a significant portion of the construction season. The result would be this station could not be open by the time the stadium is completed.
FISCAL IMPACT:
All funds for the 2023 Capital Plan amendment are from external partners. There is no impact on UTA fund balance.
ATTACHMENTS:
Resolution R2023-10-06, including Exhibit A - Proposed Capital Plan Amendment - 2023-2027 Program Summary