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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): |
Monica Morton, Fares Director |
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TITLE:
title
Fare Agreement: Ski Bus - Amendment 2 (Snowbird Ski Resort, LLC)
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Authorize UTA’s Executive Director to enter into Ski Bus Agreement - Amendment 2 to contract number 22-F0212 with Snowbird Ski Resort, LLC
BACKGROUND:
Utah Transit Authority (UTA) and Snowbird Ski Resort, LLC have a longstanding relationship to promote the sustainability and growth of the Ski Bus Service in the Cottonwood Canyons. For the past 20 plus years, Snowbird Ski Resort, LLC and UTA have contracted together to provide transit service to employees and ski pass holders.
The base agreement was approved by the Board of Trustees on September 8, 2021, and Amendment 1, extending the terms of the contract to provide service access to the Resort’s summer employees, was approved on August 10, 2022.
For the 2021-2022 Ski Season, UTA and Snowbird Ski Resort, LLC entered into a ski bus agreement that was billed in two ways based on the authorized user segment: Season Pass Holder or Employees.
A. Season Pass Holder
• UTA invoiced Snowbird Ski Resort, LLC for transit use by the resort’s season pass holders based on a daily rate of $8.
B. Employees
• UTA invoiced the resort based on a daily rate with a cap. Billing will be based on $8.00 per day and resorts will pay no more than $28 per week per employee.
The Ikon Ski Pass (Ikon) is a ski pass allowing the holder access to multiple ski resorts in Utah and across the nation, including access to Snowbird. Since the inception of Ikon, Solitude Ski Resort has paid all fares associated with use of the Ikon pass for Utah resorts, regardless of the pass holder’s destination.
For the upcoming Ski Season (2022-23), trips taken by Ikon pass holders will be allocated and billed to each resort based upon an agreed upon methodology as stated in Amendment no. 2. This will result in lower revenues from Solitude and increased Ikon related revenues from the other resorts, like Snowbird.
DISCUSSION:
Staff recommends that UTA enter into a Ski Bus Agreement- Amendment 2 with Snowbird Ski Resort, LLC for the 2022-23 Ski Season.
CONTRACT SUMMARY:
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Contractor Name: |
Snowbird Ski Resort, LLC |
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Contract Number: |
22-F0212-A2 |
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Base Contract Effective Dates: |
November 1, 2021 - November 30, 2022 |
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Extended Contract Dates: |
December 7, 2022 - November 30, 2023 |
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Existing Contract Value: |
$269,200 |
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Amendment Amount: |
$166,000-$220,000 |
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New/Total Contract Value: |
$435,200-$489,200 |
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Procurement Method: |
NA |
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Budget Authority: |
NA |
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ALTERNATIVES:
Do not enter an agreement with Snowbird Ski Resort, LLC and renegotiate the contract terms
FISCAL IMPACT:
Revenue, inclusive of Snowbird authorized users and Ikon Pass Usage to Snowbird Resort, is anticipated to be between $166,000 and $220,000. This is a decrease of $49,200-$103,200 as compared to the previous ski season. This is due to the anticipated effects of the December 2022 service changes to ski routes resulting from the current Bus Operator shortage.
ATTACHMENTS:
Amendment 2