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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Nichol Bourdeaux, Chief Planning and Engagement Officer |
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PRESENTER(S): |
Hal Johnson, Innovative Mobility Solutions Director |
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Shaina Quinn, IMS Program Manager |
TITLE:
title
Revenue Change Order: Fourth Amendment to the Microtransit Cooperative Agreement (Salt Lake City Corporation)
end
AGENDA ITEM TYPE:
Non-Procurement Agreement
RECOMMENDATION:
Approve the 4th Amendment to the Agreement and authorize the Executive Director to execute the agreement with Salt Lake City for renewal of the UTA On-Demand service in the Salt Lake City Westside zone for $3,364,315.
BACKGROUND:
Microtransit, branded as UTA On Demand, has emerged as a cost-effective coverage solution that complements fixed route bus and train service. The Salt Lake City Westside microtransit zone includes the neighborhoods of Rose Park, Fairpark, Glendale, and Poplar Grove.
The original contract #21-P00119 was approved by UTA’s board on October 13, 2021. The original agreement term was for 12 months, effective through December 31, 2022, with four 1-year extension options. The original agreement has been extended three times as follows:
• 1st amendment: The parties exercised the 1st option to extend the contract for another year until December 31, 2023.
• 2nd amendment: The parties exercised the 2nd option to extend the contract for another year until December 31, 2024.
• 3rd amendment: The parties exercised the 3rd option to extend the contract for another year until December 31, 2025.
This proposed 4th amendment would exercise the 4th option to extend the contract for another year until December 31, 2026.
DISCUSSION:
This proposed amendment continues to fund UTA On Demand service in the Salt Lake City Westside zone for one additional year in 2026. It provides ongoing microtransit service per the Five-Year Service Plan.
The new contract requested for the Salt Lake City Westside microtransit service is $3,364,615, a 2% ($64,615) increase from last year. This full amount is sponsored by Salt Lake City and is allocated in their approved 2026 fiscal year budget, which the City Council approved, including Amendment 4 to the Microtransit Cooperative Agreement, on June 10, 2025.
The new/total contract value would be $13,464,615 over the entire life of the contract. This contract is a revenue agreement, not a procurement agreement.
CONTRACT SUMMARY:
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Contractor Name: |
Salt Lake City Corporation |
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Contract Number: |
21-P00119-4 |
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Base Contract Effective Dates: |
January 1, 2025 - December 31, 2025 |
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Extended Contract Dates: |
January 1, 2026 - December 31, 2026 |
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Existing Contract Value: |
$10,100,000 |
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Amendment Amount: |
$3,364,615 |
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New/Total Contract Value: |
$13,464,615 |
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Procurement Method: |
N/A |
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Budget Authority: |
Innovative Mobility Solutions 2026 Operating Budget |
ALTERNATIVES:
If UTA were to determine not to support microtransit service in the future, UTA will develop a transition plan and updates to the Five-Year Service Plan to support any associated changes.
FISCAL IMPACT:
The UTA 2026 service plan includes continuation of the Salt Lake City Westside On Demand zone. This service is fully funded through a partnership with Salt Lake City. UTA contracts with VIA to operate the service. UTA pays Via directly, and Salt Lake City reimburses UTA each month for the actual service costs, fuel, and a UTA operations support fee. Salt Lake City has agreed to increase funding in 2026 by $64,615. The total contract for 2026 will be: $3,364,615. To date Salt Lake City has invested $10,100,000 in micro transit services. If this Amendment is approved, the new total not to exceed amount will be $13,464,615.
All expenses for the service will be paid from the Innovative Mobility Solutions operating expense line item for contracted services in the Planning & Engagement yearly budget, 6550.050353. UTA separately contracts with Via to provide the service. UTA pays Via directly, and Salt Lake City reimburses UTA each month for the actual service costs, fuel, and a UTA operations support fee.
Planned spending in 2026 to be fully reimbursed by Salt Lake City: $3,364,615
ATTACHMENTS:
• UTA-SLC Amendment 4 #21-P00119-4