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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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TITLE:
title
Fare Agreement: Pass Purchase and Administration (Salt Lake City Corporation)
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Authorize the Executive Director to enter a one-year Pass Purchase and Administration Agreement with Salt Lake City Corporation with options to extend for two additional one-year periods.
BACKGROUND:
UTA and Salt Lake City Corporation (SLC Corp.) are longstanding partners dedicated to mitigating traffic and air pollution. In the spirit of that partnership, the two parties collaborate to provide SLC Corp. employees with a transit pass benefit through a Pass Purchase and Administration Agreement. Employees can opt in or out to receive a UTA transit pass and SLC Corp. pays for each trip taken by their authorized users on UTA transit services. SLC Corp. receives a discount of five percent (5%) that is applied to their monthly invoice, and the discount is calculated based on the number of trips taken in the prior contract year. This discount is based on a tiered matrix found in the historical ECO Trip Rewards Program. Because of the longstanding partnership with the Corporation, UTA has continued to allow SLC. Corp to participate in this program. The program and discount are in line with similar entities of the same type and population.
The current contract expired on June 30, 2024.
DISCUSSION:
Both UTA and SLC Corp. desire to continue to partner to offer employees transit pass access through a Pass Purchase and Administration Agreement. Total annualized boardings July 2023 through June 2024 for SLC Corp. is estimated to be about forty-six thousand (46,000) which qualifies for a discount of 5% to be applied to the monthly invoice for the new contract period. Revenue for this contract is estimated because SLC Corp. is billed monthly based on actual trips taken during the contract period. Revenue estimates are made using ridership projections based on historical trends.
CONTRACT SUMMARY:
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Contractor Name: |
Salt Lake City Corporation |
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Contract Number: |
24-F28214 |
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Base Contract Effective Dates: |
July 1, 2024 through June 30, 2024 (base contract), plus 2 option years through June 30, 2026 |
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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 Contract Value: |
$90,000 to $100,000 annually |
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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 SLC Corp. and require the authorized users to purchase fare using other methods.
FISCAL IMPACT:
Revenue is estimated to be between $90,000 to $100,000 which represents an increase of up to $10,000 as compared to the previous contract (2023-24)
ATTACHMENTS:
Contract