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September 15, 2014

Following the release of a performance audit by the Utah Office of the Legislative Auditor General, I would like to provide
you with some clarification and additional information about UTAs response to the findings of the audit. Some of the key
points deserving attention are:
UTA has acted in a fiscally responsible manner and will continue to do so.
UTA is making substantive organizational changes to improve and better define roles and responsibilities. This
includes creating a new transit-oriented development department that reports directly to the President/CEO.
UTAs policies and procedures related to transit-oriented development have been refined and strengthened.
UTAs board is benchmarking total compensation for government, non-profits, and other transit agencies to ensure
that salaries at the agency are comparable.
UTA is revising its peak performance (incentive) program, including reducing performance incentives for executive
staff by 75 percent.
UTAs board has adopted rigorous transparency requirements. UTA is creating an Office of Ethics to ensure
compliance and the highest standards of transparency.
UTA is focused on its customers and is moving into an era of increased operational excellence.
UTA understands its role in the community, values the publics trust, and is committed to taking steps necessary to
increase that trust.
UTAs culture of continuous improvement values the feedback from the frequent audits it undergoes as part of this
commitment to excellence. The integrity of UTA is fundamental to our organization. It is important to note that the audit
found there were no instances of wrongdoing on UTAs part. The legislative performance audit included specific
recommendations designed to improve the organizations performance and oversight. UTA has implemented, or is in the
process of implementing, every recommendation in the audit.
Our Mission
UTAs mission is to strengthen and connect communities, enabling individuals to pursue a fuller life with greater ease and
convenience by leading through partnering, planning, and wise investment of physical, economic, and human resources. We
take this mission seriously. We are proud of the 2,300 men and women employed by UTA who are committed to providing
excellent service to our riders and the community every day.
Governance
UTA is governed by a diverse 16-member board. UTAs board is an unpaid, volunteer board responsible for defining policy
and governing the agency. Board members are appointed by elected officials at the municipal, county and state level to
represent specific areas in the transit district. The board is comprised of elected officials and private individuals with a variety
of professional and business backgrounds who apply their expertise in representing their appointing authorities interests.
Nearly half of the board has current or past experience serving in a publicly-elected capacity. Board members spend a great
deal of time and effort in ensuring the success of UTA. Our board is very goal-oriented and openly reviews performance
monthly.
Culture Driven by Performance and Results
UTA is managed on business-like principles. UTA operates on monies received from local option sales taxes, fares, and
federal funds and receives virtually no state monies. We are proud of the fact that by almost every measure, UTA is one of
the most cost-efficient operations in the United States, and we recognize the social responsibility we have toward those who
require our services.
UTA is financially conservative and fiscally responsible. We have weathered the great economic recession. In the last
decade, we have lived up to our commitment to deliver on voter-approved projects and programs. We have built 70 miles of
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rail two years ahead of schedule and $300 million under budget. Our management of this project has garnered national
recognition, with UTA receiving the American Public Transportation Associations 2014 Outstanding Public Transportation
System award. This is the fourth time UTA has received this honor.
With the new investment in our system, we have exceeded our ridership expectations. In fact, last year UTA had the highest
ridership in its history. Recently TRAX and FrontRunner single-day ridership peaked at a record 100,000. We have become a
multi-modal agency committed to delivering excellent service.
Transit-Oriented Development
While UTA was successfully managing a $2.8 billion infrastructure effort (perhaps the single biggest project in the state and
the country at the time), we initiated efforts to facilitate the new and innovative concept of transit-oriented development.
Transit-oriented development is a new area for UTA and is a critical part of our future in leveraging the bus and rail system
we have built to enhance ridership by working with our communities on creating effective land use and development around
transit. Transit-oriented development plays an important role in planning for future generations and setting communities on
sustainable paths for the future. As part of direction from local government through the Wasatch Choice for 2040 planning
initiative, state legislation was passed allowing UTA to engage in private-public partnerships, putting excess property (UTA
does not have powers of eminent domain) in joint development agreements to enhance the surrounding property values
around newly-built transit infrastructure. This type of planning improves the quality of life for residents of the Wasatch Front,
where the population will double in the next 30 years.
At the Draper FrontRunner Station, UTA assisted an economic development effort by investing $10 million to purchase land
and build a parking structure. Immediately after our investment, the project was delayed by the U.S. Army Corps of
Engineers for more than a year. Once this stay was lifted, the project immediately proceeded with UTA and the
landowner/developer pursuing a rigorous procurement of a contractor to build the parking structure. The parking structure
was built with a portion of the $10 million and is now open and in use. UTAs partnering with the City of Draper, Salt Lake
County, and State of Utah on this facility was a key component in bringing eBay to Utah.
UTA will receive in excess of $12.5 million in value for the original $10 million investment. The parking structure was built
for the lowest cost per stall of all the parking lots on the commuter rail project, and interest was earned on the original
investment. The developer owes UTA an outstanding balance of $1.7 million which is expected to be repaid by 2015. All
transactions related to the Draper project were well-collateralized and no taxpayer monies were at risk.
Although the outcomes were highly successful, UTA has applied lessons learned from this experience and improved its
transit-oriented development programs. We have improved our policies and processes and heightened transparency. UTA
employees and board members are prohibited by state law and UTA policy from having any direct or indirect interest in
UTAs transit-oriented developments.
Every one of UTAs procurements is held to the highest standards and follows federal and state laws, as well as all internal
policies. We are proud of what has been accomplished but always recognize our capacity to do better. Further improvements
in organizational structure, policies, procedures, and transparency will intensify UTAs efforts in being the catalyst and
change agent for future growth and development along the Wasatch Front.
Compensation
UTA is proud of the performance of its workforce. Our administrative overhead costs are among the lowest in the nation. Of
the 11 major rail capital projects completed in the past 14 years, each has been completed ahead of schedule and under
budget. We have successfully received federal competitive grants in excess of $1.7 billion.
UTAs efficient management benefits the community because more of every dollar we save or earn goes back into service on
the street. Over the last two years, UTA has increased its service miles by 25%. We have the lowest cost per mile in the
country and we are constantly striving to increase revenue from the fare box. Furthermore, we are fiscally conservative in
managing our resources and UTA can afford to operate its existing system with no additional local funding.
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Although the taxpayers are being well-served by UTAs practice of paying market-based compensation, we recognize the
need to be benchmarked while maintaining a high-performing, lean, and efficient agency. UTA is conducting market-based
surveys to include total compensation and be compared to other government, non-profit, and transit agencies.
As UTA has completed the FrontLines 2015 program and is transitioning to an operational focus, we are modifying the
performance incentive program, including reducing performance incentives for executives by 75 percent.
Transparency
The UTA board has recently adopted a 2020 Strategic Plan. Designed to serve as a blueprint for the next several years, it
highlights some major themes for UTA to focus on such as operational excellence, customer focus, environmental and
financial sustainability, transit-oriented development, and accountability.
In the last few years, we have greatly increased our transparency and accountability by opening subcommittee meetings,
posting information on our website, and engaging in intense outreach through social media. Further, our annual draft budget
is sent to all mayors, commissioners, and legislators for comment and is posted on our website. We are now creating an
Office of Ethics to assist in ensuring that UTA adheres to the highest standards of transparency and accountability.
Our Pledge
UTA has been in operation for over 40 years and has become a significant contributor to the regions successful growth and
development. Inherent in our culture of continuous improvement, we will implement these additional reforms on
transparency and accountability. We pledge to continue providing excellent and efficient transit service at the lowest possible
cost to benefit the greatest number of people in this community. We intend to do this with openness and honesty.
On behalf of myself and the UTA Board of Trustees, we understand the magnitude of community trust required of this
organization and are committed to the highest levels of integrity and excellence.




Michael A. Allegra
President/CEO