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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
William Greene, Chief Financial Officer |
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PRESENTER(S): |
Kensey Kunkel, Manager Business Development & Sales |
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TITLE:
title
Fare Agreement: Education Pass (Charter School Consortium)
end
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Authorize the Executive Director to enter into an Education Pass Agreement with the Charter School Consortium
BACKGROUND:
In 2021, the Board of the Authority requested a review of all higher education transit pass agreements. The Fares team performed an in-depth review of all higher education pass contracts including the review of terms and conditions, ridership, and pass utilization, as well as revenue received compared to actual use (“pay per trip value”). The Fares team used the review findings to formulate a plan and set goals to inform the negotiations of all future Education Pass Contracts.
This July, UTA’s Education Pass Agreement with the Charter School Consortium (Charter Schools) will expire. Charter Schools and UTA wish to renew a contract to provide transit passes to the Charter’s students, faculty, and staff. The previous three-year Education Pass Agreement was implemented in 2018 and provided, on average, three thousand and five hundred (3,500) authorized users with a premium transit pass. This agreement was extended for one additional school year (2021-22) in light of the COVID-19 pandemic.
UTA has a long-standing relationship with the schools participating in the Charter School Consortium. For over ten years, the schools and UTA have partnered together to provide transit passes to K-12 students allowing students to commute to and from school and travel to school related activities such as field trips. In addition, the schools encourage students to utilize their transit pass outside of school related activities. Nine schools across UTA’s service district currently participate in the Charter School Consortium, however the number of participating schools may vary per school year.
In order to participate in the Charter School Consortium, each Charter School must purchase a transit pass for 100 percent of their student population. The price of the pass in the current contract is $137 per authorized user and is valid on all UTA services except for Paratransit, Park City, and Ski Services. City Academy reports the number of authorized users to UTA on or before October 1st of each contract year.
DISCUSSION:
In the spirit of partnership, Charter Schools and UTA will sign a three-year Ed Pass Agreement. This agreement will give all students, faculty, and staff access to a premium transit. The price of the pass will be $109 and Charter Schools will report the number of Authorized users to UTA at the beginning of each school year. This pass price is in line with similar education pass partner costs and UTA’s goal of achieving consistency in its Education Pass program.
CONTRACT SUMMARY:
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Contractor Name: |
Charter School Consortium |
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Contract Number: |
22-F0284 |
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Base Contract Effective Dates: |
August 1, 2022 through July 31, 2025 |
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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: |
$1,308,000 |
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Procurement Method: |
NA |
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Budget Authority: |
NA |
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ALTERNATIVES:
1. Not approve the contract and renegotiate the contract price and term
2. Not approve the contract and forgo revenue
FISCAL IMPACT:
$1,308,000 in revenue over 3 years ($436,000 per year). To calculate this amount, the total pass price ($109) is multiplied against the estimated number of authorized users (4,000). This number may vary based upon total authorized users for each school year.
The annual estimated revenue ($436,000/year) represents a three percent or $13,000 increase in revenue to UTA compared to the 2022 contract amendment value ($422,645). This could vary based on the actual number of passes purchased.
ATTACHMENTS:
1. Contract