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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 (Solitude Mountain Resort)
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Authorize the Executive Director to enter Ski Bus Agreement-Amendment 1 to contract number 21-F0213 with Solitude Mountain Resort.
BACKGROUND:
Utah Transit Authority (UTA) and Solitude Mountain Resort (Solitude) 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, Solitude Mountain Resort and UTA have contracted together to provide transit service to employees and ski pass holders.
For the 2021-2022 Ski Season, UTA and Solitude Mountain Resort entered a ski bus agreement to provide transit access to all employees and season pass holders. UTA invoiced the resort based on a daily rate with a cap. Billing was $8.00 per day and the resort paid no more than $28 per authorized user. The agreement was approved by the Board of Trustees on September 8, 2021.
The Ikon Ski Pass (Ikon) is a ski pass allowing the holder access to multiple ski resorts in Utah and across the nation, including unlimited access to Solitude. The only Season Pass offered by Solitude is the Ikon Pass. Since the inception of Ikon, Solitude has paid for all ski trips in Utah associated with the Ikon pass, regardless of the destination - including other Cottonwood Canyon Resorts.
For the upcoming Ski Season (2022-23), the trips taken by Ikon pass holders will be allocated and billed by resort based upon an agreed upon method as stated in Amendment no. 1. This will result in lower revenues from Solitude with anticipated offsets in revenue from the other resorts that are destinations for Ikon pass holders.
DISCUSSION:
Staff recommends that UTA extend the Ski Bus Agreement with Solitude Mountain Resort through Amendment 1.
CONTRACT SUMMARY:
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Contractor Name: |
Solitude Mountain Resort |
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Contract Number: |
21-F0213-A1 |
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Base Contract Effective Dates: |
November 30, 2021 through April 30, 2022 |
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Extended Contract Dates: |
December 7, 2022 through November 30, 2023 |
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Existing Contract Value: |
$417,000 |
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Amendment Amount: |
$240,000-$300,000 |
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New/Total Contract Value: |
$657,000-$717,000 |
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Procurement Method: |
NA |
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Budget Authority: |
NA |
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ALTERNATIVES:
Do not approve the agreement and forgo revenue and ridership
FISCAL IMPACT:
Revenue specific to Solitude is anticipated to be between $240,000 and $300,000 for the 2022-23 Ski Season. This is a decrease of $117,000-$177,000 as compared to the previous ski season. This is due in part to the distribution of payment for Ikon Pass Trips to other Cottonwood Resorts. Additionally, revenue may decrease due to the anticipated effects of service changes to ski routes resulting from the current Bus Operator shortage.
ATTACHMENTS:
Amendment 1