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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
William Greene, Chief Financial Officer |
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PRESENTER(S): |
Monica Morton, Fares Director |
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Stacey Adamson, Sr. Sales Representative |
TITLE:
title
Fare Agreement: Eco Trip Rewards Custom Fare - Amendment 2 (Intermountain Health Care Services, Inc.)
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Authorize the Executive Director to execute Amendment 2 of the ECO Trip Rewards Trip Based Agreement with Intermountain Health Care Services Inc. (“IHC”).
BACKGROUND:
IHC has a long-standing relationship with UTA. The current contract between UTA and IHC was adopted by the Board of Trustees in 2019 and is an ECO Trip Rewards trip-based Agreement (custom agreement). This allows IHC to provide a transit pass option to as many of their 20,000 employees as possible. Employees can opt in or out to receive a UTA transit pass. IHC pays for each trip taken by authorized users on UTA transit services. Authorized users include all persons employed by or who volunteer for Intermountain.
All cardholders are required to “tap-on/off” the UTA system and a trip report is generated every time a cardholder pass is used to board a UTA vehicle in revenue service. Authorized services under this agreement can be found in Exhibit A of the original contract. Because of IHC’s commitment to implementing internal marketing initiatives to promote and increase pass usage, UTA has provided a discount of 17.5 percent to IHC on UTA’s Base One-Way Fare Schedule. This discount rate is consistent with similarly sized fare agreements.
IHC and UTA extended this contract through Amendment 1 adopted by the Board on December 16, 2020. The current contract amendment will expire on December 31, 2021.
DISCUSSION:
UTA and IHC wish to amend the term of the current contract, extending it for an additional year. The new contract term will be January 1, 2022 through December 31, 2022. All other terms of the contract, including the discount of 17.5 percent, will remain the same.
Pass programs are discounted and specially priced for partners to support them in sponsoring fares and encouraging use of public transportation. Institutions of the same size qualify for a similar incentive discount between 15-20 percent on UTA’s base one-way fare.
CONTRACT SUMMARY:
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Contractor Name: |
IHC Health Services, Inc. |
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Contract Number: |
19-F0002-A2 |
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Base Contract Effective Dates: |
January 1, 2020 through December 31, 2021 |
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Extended Contract Dates: |
January 1, 2022 through December 31, 2022 |
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Existing Contract Value: |
$528,100 |
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Amendment Amount: |
$331,200-$465,750 |
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New/Total Amount Contract Value: |
$859,300-$993,850 |
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Procurement Method: |
NA |
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Funding Sources: |
IHC Health Services, Inc. |
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ALTERNATIVES:
Not approve contract Amendment No. 2 and forgo revenue and ridership.
FISCAL IMPACT:
Revenue from IHC Health Services in 2022 is projected to be between $331,200 to $465,750, which is a 60-125 percent increase in pay-per-trip value as compared to 2021. This estimate includes the discount of 17.5 percent. Revenue received in 2021 is estimated to be $251,300. Note: Revenue may increase or decrease depending on the ongoing impacts of the COVID-19 pandemic:
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Increase compared to 2021 |
2022 Estimated Revenue |
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60% |
$ 331,200 |
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85% |
$ 383,500 |
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125% |
$ 465,750 |
Total revenue is estimated to be between $859,300-$993,850 for all contract years and is detailed in the table below:
|
Contract Year |
Value |
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2020 |
$ 276,800 |
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2021 |
$ 251,300 |
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2022 |
$ 331,200- 465,750 |
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Total |
$ 859,300 -$993,850 |
ATTACHMENTS:
1. Amendment 2