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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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5/26/2021
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Final action:
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5/26/2021
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Title:
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Fare Contract: Hive Pass Purchase and Administration Agreement Amendment No. 2 (Salt Lake City Corporation)
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TO: Board of Trustees
THROUGH: Carolyn Gonot, Executive Director
FROM: William Greene, Chief Financial Officer
PRESENTER(S): Kensey Kunkel, Manager Business Development & Sales
TITLE:
title
Fare Contract: Hive Pass Purchase and Administration Agreement Amendment No. 2 (Salt Lake City Corporation)
end
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AGENDA ITEM TYPE: |
Service or Fare Approval |
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RECOMMENDATION: |
Approve Amendment No. 2 to the Hive Pass Purchase and Administration Agreement with Salt Lake City Corporation. |
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BACKGROUND: |
The Hive Cooperative Pass Purchase and Administration Agreement, approved June 17, 2020, is a transit pass program that gives Salt Lake City residents access to a discounted monthly standard adult local transit pass. Each pass is in the form of an electronic fare card and users are required to tap-on and tap-off the system when riding UTA services. This specific program has been in place since June 2015. On December 9, 2020, the board approved Amendment No. 1 to the Hive Cooperative Pass Purchase and Administration Agreement which amended the pass price to be the same as the updated UTA Fare Policy. The price of the local monthly Hive Pass is $68.00 per month which is a 20% discount off the retail monthly pass price ($85.00). Of that $68.00, Salt Lake City pays $26.00, and the resident pays $42.00. Passes can be purchased from the Salt Lake City County Building, Public Utilities Office, and the Sorenson Unity Center. Prior to selling a pass, Salt Lake City verifies that the resident seeking to purchase a pass lives within the boundaries of Salt Lake City proper. This verification process is outlined in Section 3 of the contract. |
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DISCUSSION: |
As both UTA, Salt Lake City Corporation, as well as the residents of Salt Lake City recover from the Pandemic and in the spirit of partnership, staff recommends that the Hive Cooperative Pass Purchase and Administration Agreement be extended for one additional year. The updated contract term will be July 1, 2020 through June 30, 2022. All other terms of the contract will remain the same. |
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CONTRACT SUMMARY: |
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Contractor Name: |
Salt Lake City Corporation |
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Contract Number: |
20-F00048-2 |
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Base Contract Effective Dates: |
July 1, 2020 through June 30, 2021 |
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Extended Contract Dates: |
July 1, 2021 through June 30, 2022 |
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Existing Contract Value: |
$408,000* April through June 30 was estimated using the average revenue from the previous nine months. |
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Amendment Amount: |
$408,000-$510,000* Revenue is estimated to be between $408,000-$510,000 for the 2021-22 contract year. This estimate is based on sales for contract year 2020-21 ($408,000) plus an increase in sales of up to 25% as transit utilization continues to increase. |
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New/Total Amount Contract Value: |
$816,000-$918,000 |
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Procurement Method: |
NA |
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Funding Sources: |
NA |
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ALTERNATIVES: |
1. Not approve the modification and renegotiate a new contract price and term 2. Not approve the modification and forgo revenue |
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FISCAL IMPACT: |
$408,000-$510,000 in revenue. This revenue was anticipated in the adopted 2021 budget. |
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ATTACHMENTS: |
1) Contract 2) Amendment No. 1 3) Amendment No. 2 |
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