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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Cherryl Beveridge, Chief Operating Officer |
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PRESENTER(S): |
Cherryl Beveridge, Chief Operating Officer |
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Ryan Taylor, Special Services GM |
TITLE:
title
Fare Agreement: Transportation Services Contract (State of Utah Department of Health and Human Services / Division of Services for People with Disabilities)
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Approve and authorize the Executive Director to execute agreement with the State of Utah Department of Health and Human Services/Division of Services for People with Disabilities for transportation services trip reimbursement.
BACKGROUND:
UTA has a long-standing agreement with the Division of Services for People with Disabilities under the State of Utah Dept of Health and Human Services to provide paratransit trips for eligible DSPD riders with eligible trip purposes. These trips are reimbursed to UTA at a negotiated rate with federal Medicaid funding. UTA pays the local “seed” amount (equivalent to local matching funds). No state funds are included in this agreement. This is a five-year agreement.
There is no change to the reimbursement rates from the increased rates in the 2023 contract extensions.
It is anticipated to have 10% rate increases per year following historical patterns.
UTA staff will continue to negotiate for a larger base increase amount above 10% which triggers approvals from CMS (Center for Medicare and Medicaid) to reach our strategic goal of reimbursement closer to our actual trip cost.
A key provision of previous agreements and continued with this agreement is to not leave DSPD riders unattended in the vehicle without line of sight of the driver. A new requirement was added for UTA to report to DHHS if Persons were left unattended in case of an emergency. This accommodates a request by the ATU and UTA labor for situations in which a driver must immediately leave the vehicle in an emergency, leaving DSPD riders unattended, such as a medical situation or sickness.
DISCUSSION:
This contract allows continued service for DSPD riders on UTA’s Paratransit service.
CONTRACT SUMMARY:
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Contractor Name: |
State of Utah Department of Health and Human Services/Division of Services for People with Disabilities (DSPD) |
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Contract Number: |
24-P00329 (DHS contract #A04189) |
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Base Contract Effective Dates: |
2/1/2024 - 1/31/2029 |
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Extended Contract Dates: |
NA |
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Existing Contract Value: |
NA |
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Amendment Amount: |
NA |
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New/Total Contract Value: |
Estimated $14,179,533 |
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Procurement Method: |
N/A |
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Budget Authority: |
2024 Operational Revenue Budget |
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ALTERNATIVES:
Not execute the agreement. This would have a severe negative impact on the community including those who have disabilities, caregivers and support programs. Individually they would pay the Paratransit fare out of pocket and UTA would receive far less revenue. Not recommended.
FISCAL IMPACT:
Continued revenue with anticipated 10% increases per year unless successfully negotiated above this rate with CMS in future years (years 2-5)
ATTACHMENTS:
Utah Department of Health & Human Services - UTA SPD 2024 Agreement
DSPD billing and revenue estimates