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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
William Greene, Chief Financial Officer |
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PRESENTER(S): |
Monica Morton, Fares Director |
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Stacey Adamson, Sr. Sales Representative |
TITLE:
title
Fare Agreement: Eco Trip Rewards Custom Fare - Amendment 2 (SelectHealth)
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Authorize the Executive Director to execute Amendment 2 of the ECO Trip Rewards Trip Based Agreement with SelectHealth
BACKGROUND:
SelectHealth has a long-standing relationship with UTA. In 2019, the Board of Trustees approved the original contract between UTA and SelectHealth. This contract is an ECO Trip Rewards trip-based Agreement (custom agreement). This contract allows SelectHealth to provide a transit pass option to as many of their employees as possible. Employees can opt in or out to receive a UTA transit pass. SelectHealth pays for each trip taken by authorized users on UTA transit services. Authorized users include all persons employed by or who volunteer for SelectHealth.
All cardholders are required to “tap-on/off” the UTA system and a trip report is generated every time a cardholder pass is used to board a UTA vehicle in revenue service. Authorized services under this agreement can be found in Exhibit A of the contract. Because of SelectHealth’s commitment to implementing internal marketing initiatives to promote and increase pass usage, UTA has provided a discount of 17.5 percent on UTA’s Base One-Way Fare Schedule. This is consistent with other similarly sized pass agreements.
On December 16, 2020 the Board of Trustees approved Amendment 1 extending this contract through December 31, 2021.
DISCUSSION:
UTA and SelectHealth wish to amend the term of the current contract, extending it for an additional year. The new contract term will be from January 1, 2022 through December 31, 2022. All other terms of the contract, including the discount of 17.5 percent, will remain in force.
Pass programs are discounted and specially priced for partners to support them in sponsoring fares and encouraging use of public transportation. Institutions of the same size qualify for a similar incentive discount between 15-20 percent on UTA’s base one-way fare
CONTRACT SUMMARY:
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Contractor Name: |
SelectHealth |
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Contract Number: |
19-F00015-A2 |
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Base Contract Effective Dates: |
January 1, 2020 through December 31, 2021 |
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Extended Contract Dates: |
January 1, 2022 through December 31, 2022 |
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Existing Contract Value: |
$9,120 (Revenue estimated for November and December) |
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Amendment Amount: |
$6,430 - $12,880 |
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New/Total Amount Contract Value: |
$15,550 - $22,000 |
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Procurement Method: |
NA |
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Funding Sources: |
SelectHealth |
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ALTERNATIVES:
Not approve contract Amendment No. 2 and forgo revenue and ridership.
FISCAL IMPACT:
Revenue for SelectHealth in 2022 is projected to be between $6,400 - $12,800, which is a 100-300 percent increase in pay per trip value as compared to 2021. This estimate includes the discount of 17.5 percent. Revenue received in 2021 is estimated to be $3,220. Note: Revenue may increase or decrease depending on the ongoing impacts of the COVID-19 pandemic:
|
Increase compared to 2021 |
Revenue |
|
100% |
$ 6,430 |
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200% |
$ 9,660 |
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300% |
$ 12,880 |
Total revenue is estimated to be between $15,550 - $22,000 for all contract years and is detailed in the table below:
|
Contract Year |
Value |
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2020 |
$ 5,900 |
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2021 |
$ 3,220 |
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2022 |
$ 6,430 - $12,880 |
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Total |
$ 15,550 - $22,000 |
*Revenue for November and December 2021 is estimated using October 2021 revenue.
ATTACHMENTS:
1. Amendment 2