HomeMy WebLinkAboutDMCC Resolution No. 156-2024 (Approving Criteria for use of Link Bus Rapid Transit Contingency Funding)DESTINATION MEDICAL CENTER CORPORATION
RESOLUTION NO. 156-2024
A RESOLUTION APPROVING CRITERIA FOR USE OF LINK BUS RAPID TRANSIT
CONTINGENCY FUNDING
The following Resolution was offered by R.T. Rybak, seconded by Kim Norton.
BACKGROUND RECITALS
A. In the 2025 Five Year Capital Improvement Plan (the “2025 CIP”) approved by
the Destination Medical Center Corporation (“DMCC”) on September 26, 2024 per Resolution
No. 154-2024, the DMCC approved $13,740,000 in general contingency funding (the
“Contingency Funding”) for the Link Bus Rapid Transit (“BRT”). The approved Contingency
Funding augments existing contingency budgets provided for various portions of the BRT project.
As a result of the increase in the Contingency Funding, the DMCC imposed a condition in
connection with its approval requiring that “[t]he additional contingency funds of $13,740,000 will
be expended based on criteria developed at the direction of the DMCC board and following
approval by the DMCC and City staff made prior to use.”
B. Staff of the City of Rochester (“City”) and the Destination Medical Center
Economic Development Agency (“EDA”) have developed criteria for the preservation and use,
approval, and reporting of the Contingency Funds, including anticipated expenditures, which are
attached as Exhibit A (the “BRT Contingency Criteria”).
C. Staff of the City and the EDA now request that the DMCC approve the BRT
Contingency Criteria.
RESOLUTION
NOW, THEREFORE, BE IT RESOLVED, by the DMCC Board of Directors that the
DMCC approves the BRT Contingency Criteria; provided, that:
1. The scope of approval for the BRT Contingency Criteria is set forth in the attached
Exhibit A.
2. Any modification to the BRT Contingency Criteria will be subject to subsequent
approval by the DMCC.
BE IT FURTHER RESOLVED, that the Chair and Treasurer are hereby authorized and
directed to transmit this Resolution to the City and to take such actions as are necessary or
convenient to effectuate this approval and finalization of the BRT Contingency Criteria.
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The question was on the adoption of the Resolution and there were YEAS and
NAYS,as follows:---
BOARD OF DIRECTORS
Destination Medical Center Corporation
YEA
Douglas M.Baker,Jr.
Brooke Carlson
Kim Norton
R.T.Rybak
Mark Thein
Pamela Wheelock
Paul D.Williams
RESOLUTION DOPTED on December 5,2024.
amela Wheelock,Chair
Destination Medical Center Corporation
NAY OTHER
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0
X
X
X
X
X
X
X
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EXHIBIT A
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Destination Medical Center
To: DMCC Board of Directors
From: DMC EDA
Date: November 26, 2024
RE: Proposed Criteria for the Use of Link Bus Rapid Transit Contingency Funding
The 2025 DMC Capital Improvement Program (CIP) includes $13,740,000 in general
contingency funding for the Link Bus Rapid Transit (BRT) project sourced from DMC transit aid.
This stand-alone contingency budget augments existing contingency budgets that are assigned
to various elements of the BRT project. Because of this increase in the project budget, the
DMCC required that “(t)he additional contingency funds of $13,740,000 will be expended based
on criteria developed at the direction of the DMCC board and following approval by DMC and
City staff made prior to use.”
This memorandum describes proposed criteria for the preservation and use, approval,
anticipated expenditures, and reporting of contingency funds.
1.Preservation and use of contingency funds. Contingency funding allocated to various
elements of the BRT project should serve as the first source of funding for immediate project
needs, with stand-alone contingency funding as a “replenishment” source if needed.
Additionally, staff understand that it is the preference of the DMCC board of directors to
complete the BRT project without expending stand-alone contingency funds if possible.
Careful management of the project budget may permit these DMC transit funds to be
reallocated to other transit initiatives following the close-out of this project.
2.Contingency use approval. Prior to the expenditure of the stand-alone contingency
funding, the BRT project team should report to the DMCC board of directors on the status of
the project budget, including the use of other contingency budgets, and the necessity to use
stand-alone contingency funding. If the use of contingency funding is approved by the
DMCC, City staff may proceed to negotiate individual project change orders.
3.Anticipated expenditures. If the use of stand-alone contingency funds is recommended,
staff anticipate that expenditures will generally be related to: 1) project elements that are
deemed necessary for the project to continue, 2) are intended to provide for project
optimization, 3) or serve to mitigate the impact of construction through “Business Forward”
strategies:
i.Necessary: Necessary change orders will detail scopes of work that are required to
complete the project’s stated purpose as approved by the DMCC. Such change orders
typically involve work needed to address time-sensitive and unforeseen field conditions,
or adjustments with adjacent public infrastructure or private property to ensure a fully
functional, resilient, and high-quality project. For necessary change orders, staff would
propose a per-order expenditure limit of $350,000.
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Destination Medical Center
ii. Optimization: Optimization change orders will detail scopes of work that are intended to
improve the project and long-term public experience beyond what was described in the
as-awarded project scope of work. Such change orders typically involve work that is
intended to improve the user experience, decrease long-term operating and
maintenance costs, or leverage construction activity to make other timely and prudent
infrastructure improvements. For optimization change orders, staff would propose a per-
order expenditure limit of $150,000, with the aggregate total of optimization change
orders not to exceed $2,000,000.
iii. Business Forward: Business Forward change orders will detail scopes of work that are
intended to reduce the impact of construction on individuals and properties in proximity
to project construction activities through improved project phasing, communications,
and programming/activation. For Business Forward change orders staff would propose
an aggregate total not to exceed $750,000.
4. Reporting. Whether stand-alone contingency funding is approved for use or not, City project
management staff shall provide a written BRT project update at each regular DMCC board
of directors meeting. The update will detail:
i. Any factors that may impact the on-time completion of the project, such as construction
or procurement delays
ii. Upcoming project milestones
iii. Any factors that may impact the on-budget completion of the project
iv. A summary of all project change orders to include, at minimum, the approval date, scope
of work, and amount of the change order
v. The status of project funding, to include any use of the contingency funding allocated to
specific project elements, including:
1. Guideway and Track Elements
2. Stations, Stops, Terminals, Intermodal
3. Support Facilities: Yards, Shops, Admin. Buildings
4. Sitework & Special Conditions
5. Systems
6. Right-of-Way, Land, Acquisition Costs
7. Business Forward engagement and construction mitigation
8. Professional Services
vi. Additional foreseeable uses of contingency funding
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