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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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6/23/2021
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Final action:
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6/23/2021
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Title:
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Sponsored Fare Agreement: Trip Reduction Program/Free-Fare Days (Division of Air Quality)
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TO: Board of Trustees
THROUGH: Carolyn Gonot, Executive Director
FROM: William Greene, Chief Finance Officer
PRESENTER(S): Monica Morton, Fares Director Kensey Kunkel, Manger Business Development & Sales
TITLE:
title
Sponsored Fare Agreement: Trip Reduction Program/Free-Fare Days (Division of Air Quality)
end
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AGENDA ITEM TYPE: |
Service or Fare Approval |
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RECOMMENDATION: |
Approve and authorize the Executive Director to execute a contract with the Division of Air Quality (“the Division”) in the amount of $492,000. |
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BACKGROUND: |
In January 2020, House Bill 353, Reduction of Single Occupancy Vehicle Trips Pilot Program, was approved by the Utah Legislature. The bill created a pilot program by offering free fares for public transit during select bad air days. With the Board of Trustee’s approval, UTA partnered with the Division to fund free-fare days with funds appropriated in HB353. Per contract 19-F0078 between UTA and the Division, the maximum amount of funding available for reimbursement from the Division to UTA is $492,000. On January 13, 2021, the UTA Board of Trustees approved Amendment 1 (20-F0179) to the agreement with the Division of Air Quality which lowered the amount billable per day to be $25,000 and removed UTA Ski Service from available services under this agreement. UTA has not implemented any free fare days under this agreement to date. Both UTA and the Division desire to rescind the previous agreement and amendment. The parties will enter into a single contract for Free-Fare Days, replacing the previous agreement and amendment, with a revised contract as described below. |
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DISCUSSION: |
Upon approval of this contract, UTA will work with the Division and provide free-fare days to specified riders on designated bad air days. The program will cover an 8-month period from July 1, 2021 through February 28, 2022. Previously, the contract only allowed free fare days to take place on weekdays in January and February. The updated contract will allow free-fare days to take place any day of the year during the contract term, if it is feasible for UTA to implement them. Additionally, the amount billable per day will be increased from $25,000 to $82,000 with a maximum allowable total reimbursement of $492,000 from the Division to UTA. Funding received will only be used to cover forgone fare revenue. Any administrative or operating costs incurred by this program will be absorbed by UTA. Services The UTA services offered will include FrontRunner, TRAX, local bus, Express bus, streetcar, Park City Connect Service, Ski and paratransit. Communication and Promotion UTA will work with the Division and other partners to communicate free-fare rides through promotional announcements and social media postings. Data UTA will administer a rider survey on free-fare days to identify how riders arrived at their first destination. UTA will work with the Division and provide ridership data so the Division can assess the air quality impacts of the free-fare ride program. |
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CONTRACT SUMMARY: |
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Contractor Name: |
Division of Air Quality |
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Contract Number: |
21-F0199 |
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Base Contract Effective Dates: |
July 1, 2021 through February 28, 2022 |
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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 Amount Contract Value: |
$492,000 |
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Procurement Method: |
NA |
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Funding Sources: |
NA |
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ALTERNATIVES: |
Not providing Free Fare Days could result in higher motor vehicle emissions’ contributing to inversion and in not being compliant with House Bill 353. |
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FISCAL IMPACT: |
$492,000.00 in revenue reimbursement. |
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ATTACHMENTS: |
1) Contract |
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