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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Jordan Eves, Manager of Fare Strategy |
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|
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TITLE:
title
Fare Agreement: Medicaid Transit Pass Agreement - Amendment Two (Utah Department of Health)
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Authorize the Executive Director to execute Transit Pass Agreement- Amendment Two (2) with the Utah Department of Health
BACKGROUND:
The Utah Department of Health (the Department) and the Utah Transit Authority (UTA) have historically partnered together to provide eligible Medicaid members with transit access. The purpose of the transit access is to help each member travel to and from medical appointments.
Current Contract
UTA entered a five (5) year Transit Pass Agreement with the Department on July 1, 2022. The payment terms of this agreement were as follows:
|
Year 1-2 |
July 1, 2022 - June 30, 2024 |
$2,420,000 |
|
Year 3-5 |
July 1, 2024 - June 30, 2027 |
TBD |
|
Contract Total |
$2,420,000 |
UTA and the Department agreed to obtain data, monitor ridership, and renegotiate the payment terms of the contract for Year 3-5.
In February 2023, UTA agreed to reduce the amount of the contract by ($33,150), through Amendment 1, in consideration of the ten (10) zero fare days for the NBA Allstar’s celebration. The amount paid to UTA by the department for Year 1-2 was updated as follows:
|
Contract |
$2,420,000 |
|
Amendment 1 |
($33,150) |
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|
|
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Updated Total |
$2,386,850 |
Note: as the amount represented less than 10% of the total contract value, UTA Counsel did not recommend board approval of Amendment 1.
Year three (3) of the agreement will commence on July 1, 2024, and the parties have come to an agreement on the payment terms for the remaining three (3) years of the contract.
DISCUSSION:
In the spirit of partnership, the Department and UTA have agreed to payment terms for the remaining three (3) years of the Transit Pass Agreement: the department shall pay to UTA the amount of $3,630,000 ($1,210,000 annually). Medicaid members shall receive access to an electronic transit pass valid on UTA Bus, TRAX, Streetcar, and Microtransit Services.
The updated contract value is as follows:
|
Year 1-2 |
July 1, 2022 - June 30, 2024 |
$2,386,850 |
|
Year 3-5 |
July 1, 2024 - June 30, 2027 |
$3,630,000 |
|
Contract Total |
$6,016,850 |
CONTRACT SUMMARY:
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Contractor Name: |
Utah Department of Health |
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Contract Number: |
24-F0281-2 |
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Base Contract Effective Dates: |
July 1, 2022 through June 30, 2027 |
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Extended Contract Dates: |
NA |
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Existing Contract Value: |
$2,386,850 |
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Amendment Amount: |
$3,630,000 |
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New/Total Contract Value: |
$6,016,850 |
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Procurement Method: |
NA |
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Budget Authority: |
NA |
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ALTERNATIVES:
Do not enter into an agreement with the Department of Health requiring Medicaid Members to find alternative transit options and forego the associated revenue.
FISCAL IMPACT:
Contract revenue of $1,210,000 July 1 through June 30 of each contract year. Total revenue through June 30, 2027 is $6,016,850.
ATTACHMENTS:
Contract