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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Nichol Bourdeaux, Chief Planning and Engagement Officer |
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PRESENTER(S): |
Shaina Quinn, IMS Program Manager Hal Johnson, IMS Director |
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TITLE:
title
Change Order: On Demand Technologies Master Service Agreement Cost Estimate Increase Request AND Approval of Service Order No. 5, Amendment No. 1 - Fuel Service for South Davis County and South Salt Lake County Zones (River North Transit, LLC / Via)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
1) Approve the increase in the total estimated Master Service Order Agreement not-to-exceed value to $54,000,000 AND 2) approve Amendment 1 to Service Order 5 and authorize the Executive Director to execute the amendment, and associated disbursements, with River North Transit, LLC (“Via”) for fuel on a pass-through basis for the UTA On-Demand service. The not-to exceed value for Service Order 5, Amendment 1 is $936,000.
BACKGROUND:
UTA has contracted with River North Transit, LLC (Via) through a Master Services Agreement (MSA) which was approved by the Board on September 25, 2021 to expand microtransit services and programs (UTA Contract 20-03399). Microtransit, branded as UTA On Demand, has emerged as a cost-effective coverage solution.
As approved by the Board on December 20, 2023, Via and UTA initiated Service Order No. 5 to renew microtransit service in the South Davis County and Southern Salt Lake County zones.
This amendment no. 1 provides pass-through billing for gasoline using Via-managed fuel cards.
With this amendment, staff also requests to increase the total estimated Not-to-Exceed (NTE) value of the Master Service Order Agreement from $44.5 million to $54.0 million to accommodate this amendment and other planned and budgeted service enhancements through the end of 2024.
DISCUSSION:
This amendment authorizes replacement of UTA On Demand’s use of the US Bank Voyager fuel card program for all Via-operated microtransit vehicles. This change is necessary to operate microtransit more efficiently. As UTA On Demand continues to scale, streamlining fuel cards makes better use of service budgets and driver hours.
Via will manage fuel for approximately 50 vans in the three Via-operated microtransit service areas: the Southern Salt Lake County zone, the South Davis County zone, and the Salt Lake City Westside zone. Salt Lake City fuel service will be included in a separate, future service order approval. Via will invoice UTA for fuel on a pass-through basis monthly. UTA will apply to the state for sales tax reimbursement annually. Costs are expected to remain the same while operating efficiency increases. Please see the attached amendment for details.
CONTRACT SUMMARY:
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Contractor Name: |
River North Transit, LLC (Via) |
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Contract Number: |
#20-03399-5-1 |
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Base Contract Effective Dates: |
January 1, 2024 - December 31, 2026 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
$44,290,099 (total value of approved Service Orders to date) |
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Amendment Amount: |
$936,000 |
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New/Total Contract Value: |
$45,226,099 |
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Procurement Method: |
Change order to RFP procured contract |
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Budget Authority: |
Approved 2024 Operating Budget |
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ALTERNATIVES:
If UTA were to determine not to support this change, UTA On Demand would continue to use the US Bank fuel card program.
FISCAL IMPACT:
Approved 2024 Innovative Mobility Solutions Operating Budget includes amounts to cover the first-year fuel cost estimate of $312,000 in the Innovative Mobility Solutions program budget. Estimated fuel costs of $312,000 in 2025 and $312,000 in 2026 are included in UTA’s base operating financial plan and will be included in 2025 and 2026 budget requests.
The estimated value is $26,000 per month, with a term of 36 months, resulting in a total cost of $936,000.
While there is contingency included in this fuel cost estimate, it's important to note that gasoline prices can be volatile. The project team plans to return to the board if necessary to increase the fuel related Not-to-Exceed (NTE) amount. Fuel is budgeted on an annual basis based on usage trends, UTA’s price projections, and UTA’s Five Year Service Plan.
ATTACHMENTS:
• Service Order 5, Amendment 1
• On-Demand Technologies and Innovative Mobility Services Contract (MSA) - Amendment 2 outlining general terms for fuel pass-through ($0 amendment provided for reference)