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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): |
Kensey Kunkel, Manager Business Dev. And Sales |
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TITLE:
title
Sponsored Fare Agreement: Trip Reduction Program/Free-Fare Days - Amendment Two (Division of Air Quality)
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Approve and authorize the Executive Director to execute Amendment Two (2) with the Division of Air Quality (the Division) extending the existing agreement for one year.
BACKGROUND:
In January 2020, House Bill 353, Reduction of Single Occupancy Vehicle Trips Pilot Program, was approved by the Utah Legislature. The bill created a pilot program offering free fares for public transit during select bad air days. With the Board of Trustee’s approval, UTA partnered with the Division to fund free-fare days with funds appropriated in HB353.
On June 23, 2021, the UTA Board of Trustees approved and authorized the Executive Director to execute a contract a(21-F0199) with the Division in the amount of $492,000 to provide free-fare days on UTA Services on designated bad air quality days. On June 22, 2022, the board approved and authorized the Executive Director to execute Amendment One (1) (21-F0199-2), which extended the agreement for one more year through June 30, 2023. The amount billable per day is $82,000 with a maximum allowable total reimbursement of $492,000 from the Division to UTA. Funding received is used to cover forgone fare revenue. Any administrative or operating costs that are incurred with this program are absorbed by UTA. To date, UTA has utilized four (4) free fare days and the Division support for Free Fare February in 2022 for a total of $367,314 in revenue reimbursement. Both UTA and the Division desire to extend the current agreement for one additional year through June 30, 2024 to utilize the remaining funds ($124,686).
DISCUSSION:
This agreement amendment will extend the current agreement through June 30, 2024. All other terms of the contract will remain the same.
For clarification purposes, the Division considered contract 21-F0199 as Amendment One (1) and any subsequent amendments will be considered Amendment Two (2) and Amendment Three (3) for the Division. UTA considered contract 21-F0199 as a new contract, and any subsequent amendments will be considered Amendment One (1) and Amendment (2) for UTA.
CONTRACT SUMMARY:
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Contractor Name: |
Department of Air Quality |
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Contract Number: |
21-F0199-2 |
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Base Contract Effective Dates: |
July 1, 2021 through June 30, 2023 |
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Extended Contract Dates: |
July 1, 2023 through June 30, 2024 |
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Existing Contract Value: |
$492,000 |
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Amendment Amount: |
NA |
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New/Total Contract Value: |
$492,000 See Notes in Fiscal Impact |
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Procurement Method: |
NA |
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Budget Authority: |
NA |
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ALTERNATIVES:
Not providing Free Fare Days could result in higher motor vehicle emissions contributing to inversion and in not being compliant with House Bill 353
FISCAL IMPACT:
Up to $124,686 in revenue reimbursement for the remainder of the contract term. A total of $367,314 of the total contract value of $492,000 has been spent to sponsor four (4) free fare days since the contract’s inception.
ATTACHMENTS:
Amendment 2