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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, 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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TITLE:
title
Fare Agreement: Ski Bus - Amendment 1 (Alta Ski Resort Company)
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Authorize UTA to enter into Ski Bus Agreement - Amendment 1 to contract number 21-F0211 with Alta Ski Resort Company
BACKGROUND:
Utah Transit Authority (UTA) and Alta Ski Resort Company (Alta) have a longstanding relationship to promote the sustainability and growth of the Ski Bus Service in the Cottonwood Canyons. For the past 20 plus years, Alta and UTA have contracted together to provide transit service to employees and ski pass holders.
For the 2021-2022 Ski Season, UTA and Alta entered a ski bus agreement that was billed in two ways based on the authorized user segment: Season Pass Holder or Employees. The base agreement was approved by the Board of Trustees on September 8, 2021.
A. Season Pass Holder
• UTA invoiced Alta for transit use by the resort’s season pass holders based on a daily rate of $8.
B. Employees
• UTA invoiced Alta based on a daily rate with a cap. Billing will be based on $8.00 per day and resorts will pay no more than $28 per week.
The Ikon Ski Pass (Ikon) is a ski pass allowing the holder access to multiple ski resorts in Utah and across the nation, including access to Alta. Since the inception of Ikon, Solitude Ski Resort has paid all fares associated with use of the Ikon pass, regardless of the pass holder’s destination.
For the upcoming Ski Season (2022-23), trips taken by Ikon pass holders will be allocated and billed to each resort based upon an agreed upon methodology as stated in Amendment no. 1. This will result in lower revenues from Solitude and increased Ikon related revenues from the other resorts, like Alta.
DISCUSSION:
Staff recommends that UTA enter into a Ski Bus Agreement- Amendment 1 with Alta Ski Resorts Company for the 2022-23 Ski Season.
CONTRACT SUMMARY:
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Contractor Name: |
Alta Ski Resorts Company |
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Contract Number: |
22-F0211-A1 |
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Base Contract Effective Dates: |
November 1, 2021 - April 30, 2022 |
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Extended Contract Dates: |
December 7, 2022 - November 30, 2023 |
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Existing Contract Value: |
$70,000 |
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Amendment Amount: |
$50,000 - $70,000 |
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New/Total Contract Value: |
$120,000 - $140,000 |
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Procurement Method: |
NA |
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Budget Authority: |
NA |
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ALTERNATIVES:
Do not enter an agreement with Alta Ski Resorts Company and renegotiate the contract terms
FISCAL IMPACT:
Revenue, inclusive of Alta Ski Resorts authorized users and Ikon Pass Usage to Alta Resort, is anticipated to be between $50,000 and $70,000 for the 2022-23 Ski Season. This is a decrease of about $20,000 as compared to the previous Ski Season revenue. This is due to the anticipated effects of service changes to ski routes resulting from the current Bus Operator shortage.
ATTACHMENTS:
Amendment 1