TO: Board of Trustees
THROUGH: Carolyn Gonot, Executive Director
FROM: William Greene, Chief Financial Officer
PRESENTER(S): Kensey Kunkel, Manager Business Development & Sales
TITLE:
title
Fare Contract: ECO Trip Rewards Trip Based Agreement Amendment No. 1 (Salt Lake City Corporation)
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Approve Amendment No. 1 to the ECO Trip Rewards Trip Based Agreement with Salt Lake City Corporation
BACKGROUND:
The current contract between UTA and Salt Lake City Corporation (“SLC Corp.”) allows them to provide a transit pass option to as many of their employees as possible. Employees can opt in or out to receive a UTA transit pass. SLC Corp. pays for each trip taken by authorized users on UTA transit services. Authorized users include all persons employed by SLC Corp. All pass holders are required to “tap-on/off” the UTA system. A trip report is generated each month summarizing the tap activity. Total boardings for SLC Corp. last year were about 68,000 which qualified them for a discount of 5% to be applied to their invoice. This discount is based on the number of trips taken as part of a trip rewards program set up by UTA over 5 years ago. The current contract will expire on June 30th of this year.
DISCUSSION:
As both UTA and SLC Corp. recover from the Pandemic and in the spirit of partnership, staff recommends that the SLC Corp. contract be extended for 1 additional year. The updated contract term will be July 1, 2020 through June 30, 2022. Total annualized boardings for SLC Corp. is estimated to be 18,450 which qualifies for a discount of 5% to be applied to the monthly invoice. All other terms of the contract will remain the same.
CONTRACT SUMMARY:
Contractor Name:
Salt Lake City Corporation
Contract Number:
20-F0051-2
Base Contract Effective Dates:
July 1, 2020 through June 30, 2021
Extended Contract Dates:
July 1, 2021 through June 30, 2022
Existing Contract Value:
$30,500
Amendment Amount:
$36,000
New/Total Amount Contract Value:
Total Amount Contract Value: $66,500 The value for the 2021-22 contract is estimated using SLC Corporation’s average monthly pay per trip value January through April of 2021, then multiplied by 12 to determine the annual contract value
Procurement Method:
NA
Funding Sources:
ALTERNATIVES:
1. Not approve the modification and renegotiate a new contract price and term 2. Not approve the modification and forgo revenue
FISCAL IMPACT:
$36,000 in estimated revenue This revenue was anticipated in the adopted 2021 budget.
ATTACHMENTS:
1. Amendment No. 1 2. Contract