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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Mary DeLoretto, Chief Capital Services Officer |
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PRESENTER(S): |
Lorin Simpson, Special Project Manager |
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Hal Johnson, Acting Director of Innovative Mobility Solutions |
TITLE:
title
Contract: Memorandum of Agreement Regarding Joint Participation in Transit Service and Facilities (Park City Municipal Corporation and High Valley Transit)
end
AGENDA ITEM TYPE:
Non-Procurement Agreement
RECOMMENDATION:
Approve and authorize the Executive Director to execute a Memorandum of Agreement and associated disbursements to Park City Municipal Corporation (PC) in the amount of $942,989 and to High Valley Transit (HVT) in the amount of $524,130 as well as the required receipt of disbursement from Park City Municipal Corporation in the amount of $835,607 and from High Valley Transit in the amount of $131,795.24 to UTA.
BACKGROUND:
In August 2011, UTA entered into an Interlocal Agreement with Summit County and Park City regarding joint participation in the funding and operation of transit service between Salt Lake City and Park City (Park City Connect or PCC). The 2011 ILA noted that Park City and Summit County would contribute funding toward a vehicle replacement account and operating costs.
In September 2020, UTA and Park City entered a second Interlocal Agreement regarding collaboration in the procurement and operation of battery electric buses, charging equipment and charging stations to be used for the PCC. UTA and PC were awarded a FTA No/Low grant for two electric buses. As part of the grant, UTA secured a commitment from Rocky Mountain Power to provide $500,000 in funding for a local match. Park City was also awarded six electric buses with federal section 5311 grant funds.
In July 2021, Park City and High Valley Transit entered into an Interlocal Agreement which transferred responsibility for operating a public transit system in unincorporated Summit County, including to and from Kimball Junction to Salt Lake City (PCC), from Park City to High Valley Transit.
In September 2021, Park City and Summit County issued a notice of the intent to terminate the 2011 ILA.
In December 2021, UTA entered into a Memorandum of Agreement with High Valley Transit to recognize HVT as the successor in interest to PC and Summit County under the 2011 ILA and provided for continuation of services under the 2011 agreement.
In December 2022, UTA entered into a Memorandum of Understanding, which granted HVT permission to operate transit service between Kimball Junction and Salt Lake Central Station at its own cost until at least January 1, 2024, and furthermore recognized that all obligations under the 2011 ILA were extinguished, except for the amounts owed by UTA for bus replacement costs, the amounts owed to UTA for Operational Costs and the completion of current responsibilities under corresponding grants.
The parties recognize the need to delineate the remaining rights and obligations of each party under the 2011 and 2020 ILA’s and corresponding grants received.
DISCUSSION:
The rights and obligations of each Party under the 2011 and 2020 ILA’s have been overcome by events due to a multi-phased change of responsibility for Park City Connect from UTA, PC and Summit County to HVT. Therefore, this Memorandum of Understanding is necessary.
It provides clarity regarding the remaining amounts owed between the Parties for any and all previous ILA’s, MOA’s, and MOU’s as we transition full ownership and responsibility for the service to HVT. It also includes clarity about responsibility for the current procurement of PCC replacement vehicles, construction of respective charging equipment and coordination of corresponding grants received by the parties.
CONTRACT SUMMARY:
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Contractor Name: |
High Valley Transit, Park City Municipal Corp |
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Contract Number: |
23-P00288 |
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Base Contract Effective Dates: |
August 24, 2011 |
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Extended Contract Dates: |
July 21, 2026 |
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Existing Contract Value: |
$942,989 to Park City Municipal Corp, $524,130 to High Valley Transit, $835,607 from Park City Municipal Corp, $131,795.24 from High Valley Transit |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
$942,989 to Park City Municipal Corp, $524,130 to High Valley Transit, $835,607 from Park City Municipal Corp, $131,795.24 from High Valley Transit |
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Procurement Method: |
N/A |
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Budget Authority: |
2023-2027 Capital Plan and liability accounts |
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ALTERNATIVES:
The primary obligations entered into in this Memorandum of Agreement would remain for UTA with or without this MOA because of the multiple previous ILA’s and agreements. Yet without this MOA, confusion amongst the parties would likely occur given the overlap and evolution of multiple agreements, parties involved and ownership of the service.
FISCAL IMPACT:
Amounts in the agreement that have been recorded as previous year impacts to UTA’s financial position:
• $131,795.24 has been previously recognized as local support, so this will allow UTA to receive the cash.
• $524,130 to both High Valley Transit and Park City was previously netted out of local support revenues and placed in a hold account awaiting this agreement to disburse funds.
• $442,989 was previously netted out of local support revenues and placed in a hold account awaiting this agreement to disburse funds.
• $500,000 from Rocky Mountain Power was recognized as project revenues and will be removed with this agreement.
Amounts in the agreement that have budget in the 2023-2027 Capital Plan:
• $835,607 from Park city will be recognized as project revenues in the 2023-2027 Capital Plan
This agreement will allow cash to transfer from the entities involved and the net effect to UTA’s cash will be a loss of $1,023,846.76.
ATTACHMENTS:
Memorandum of Understanding with Park City Municipal Corporation, High Valley Transit and UTA (UTA Contract 23-P00288)