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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 |
TITLE:
title
Revenue Contract: Ratification of Master Transit Agreement and Service Order 1 Between Utah Transit Authority and Utah County for Operation of Enhanced Transit Service in Utah County
end
AGENDA ITEM TYPE:
Non-Procurement Agreement
RECOMMENDATION:
Ratify the Master Transit Agreement No. 26-P00545 and Service Order 1 with Utah County to provide enhanced transit services in Utah County.
BACKGROUND:
Currently, Utah County faces rising transportation demands due to rapid growth in population and employment. To address this, both parties are focused on creating better transit options that connect to the existing regional network, provide an alternative to driving, and support the area's economic growth. Utah County desire to sponsor additional transit services using available funding from county option sales and use tax.
Utah County and UTA are working together to improve local transit. On March 11, 2026, UTA Board of Trustees authorized the resolution amending the 2026 Operating Budget (R2026-03-04). This amendment added sufficient funding and spending authority to the Operating Budget for expanded microtransit service in Utah County in 2026, as outlined in the Cooperative Agreement.
UDOT may also contribute funding to support microtransit in northern Utah County, but details are still being worked out.
DISCUSSION:
Utah County and UTA are establishing this twenty-year master agreement and five-year service order to define their shared goals and provide UTA On Demand service in Eagle Mountain, Saratoga Springs, Lehi, and American Fork in northern Utah County. Service Order 1 (included as Attachment 1 to the master agreement) secures the 2026 funding structure needed to launch these new transit services for the community in August of this year. The service order also outlines projected costs and reimbursement amounts for future years of service through 2030. This non-procurement agreement is fully executed and now requires ratification by the UTA Board.
CONTRACT SUMMARY:
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Contractor Name: |
Utah County |
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Contract Number: |
26-P00545 |
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Base Contract Effective Dates: |
April 8, 2026 - December 31, 2030 (Service Order 1) |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
$16,177,766.82 (estimated revenue over 5 years) |
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Procurement Method: |
N/A |
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Budget Authority: |
2026 Approved Operating Budget |
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ALTERNATIVES:
Without the agreement, these service expansions will be delayed until they can be absorbed into the regular operating budget or alternative funding becomes available.
FISCAL IMPACT:
Revenue funds for 2026 have been included in the 2026 Operating Budget. This five-year sponsored service agreement has a total contract value of approximately $16.2 million. Utah County will reimburse UTA on a monthly basis for their zone’s service expenses and support fees, while UTA will pay the contracted service provider directly through the Planning & Engagement budget (6550.050353).
• 2026 Tentative Operating Budget and Utah County contribution: $1,443,129.19
• 2027 Financial Plan: $3,174,884.21
• 2028 Financial Plan: $3,492,372.63
• 2029 Financial Plan: $3,841,609.90
• 2030 Financial Plan: $4,225,770.899
Total 5-Year Contract Value: $16,177,766.82 (estimated revenue)
ATTACHMENTS:
• Revenue Contract: Ratification of Master Transit Agreement and Service Order 1 Between Utah Transit Authority and Utah County for Operation of Enhanced Transit Service in Utah County