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Type:
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Service or Fare Approval
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Status:
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Passed
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On agenda:
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5/12/2021
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Final action:
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5/12/2021
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Title:
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Fare Agreement: Pass Purchase and Administration Agreement Amendment 2 (Church of Jesus Christ of Latter-day Saints)
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TO: Board of Trustees
THROUGH: Carolyn Gonot, Executive Director
FROM: William Greene, Chief Financial Officer
PRESENTER(S): Monica Morton, Fares Director
TITLE:
title
Fare Agreement: Pass Purchase and Administration Agreement Amendment 2 (Church of Jesus Christ of Latter-day Saints)
end
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AGENDA ITEM TYPE: |
Service or Fare Approval |
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RECOMMENDATION: |
Approve Amendment 2 to the Custom Pass Purchase and Administration Agreement with The Church of Jesus Christ of Latter-day Saints and authorize Executive Director to execute agreement |
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BACKGROUND: |
On September 23, 2020 the UTA Board of Trustees authorized UTA to enter a 14-month, Custom Pass Purchase and Administration Agreement with The Church of Jesus Christ of Latter-day Saints (“Church”). The original contract term was October 1, 2020 through December 31, 2021. However, on October 28, 2020 the Start date was amended to be November 1, 2020 (see Amendment No. 1 of the contract) per mutual agreement with the Church and UTA. The total authorized users under this agreement are 7,950 with a contract value of $2,127,506 due in 2 installments: 1. 4th Quarter of 2020: $46,427 2. January-December 2021: $2,081,079 The Church paid the first installment of $46,427 in November 2020. UTA and the Church agreed that no additional payments would be made for installment 2 of the contract until Amendment No. 2 was negotiated. |
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DISCUSSION: |
Due to the continued impact of the COVID-19 pandemic, most of the Church employees have not returned to the office and are not utilizing their transit pass. Subsequently, the Church has requested and staff recommends that the payment terms for installment 2 of their contract be based on actual use of the UTA system, instead of a negotiated bulk pass rate. On or before June 30, the Church and UTA will evaluate the need to continue the pay per trip billing or to re-activate the Church’s fixed contract. UTA and the Church will continue to evaluate the contract on a quarterly basis or as needed throughout the remainder of 2021. As one of UTA’s largest customers, and in the spirit of discounted fares to retain and encourage use by employees, it is recommended that the Church receive a 17.5% discount off their final fare that will be invoiced each month. This discount is in line with other organizations participating in a pay per use program that are similar in size and ridership to the Church. Total transit use by the Church January through March 2021 was $56,000, which includes a 17.5% discount. If the Church were to remain on a pay-per-use contract for the remainder of 2021, it is estimated that total revenue January-December 31 will be $223,000. |
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CONTRACT SUMMARY: |
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Contractor Name: |
The Church of Jesus Christ of Latter-day Saints |
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Contract Number: |
20-F0140 |
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Base Contract Effective Dates: |
November 1, 2020- December 31, 2021 |
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Extended Contract Dates: |
NA |
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Existing Contract Value: |
$2,127,506 |
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Amendment Amount: |
$223,000 estimated value for January-December 2021 replaces fixed amount of $2,081,079 |
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New/Total Amount Contract Value: |
$269,427 estimated value ($46,427 for 4th Quarter 2020 and $223,000 estimated value for 2021) |
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Procurement Method: |
NA |
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Funding Sources: |
NA |
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ALTERNATIVES: |
Not approve contract Amendment No. 2 and proceed with Amendment No. 1 approved by the board on October 28, 2020. |
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FISCAL IMPACT: |
If the Church remains on the pay per trip agreement through the end of 2021, and ridership stays at levels experienced in the first quarter of 2021, the total estimated impact to revenue would be a loss of $1,858,079. This was calculated by taking the difference between the original contract amount for January - December 2021 value of $2,081,079 and the amended estimated contract value of $223,000. |
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ATTACHMENTS: |
1. Contract Amendment No. 2 |
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