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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, Mgr. Business Dev. and Sales |
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TITLE:
title
Fare Agreement: ECO Trip Rewards Trip Based Agreement Amendment No. 2 (Salt Lake City Corporation)
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Approve Amendment No. 2 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.), which was approved by the UTA board on June 3, 2020, allows SLC Corp. to provide a transit pass option to their employees. Employees can opt in or out to receive a UTA transit pass. SLC Corp. pays for each trip taken by their authorized users on UTA transit services. Authorized users include all persons employed by SLC Corp that hold a pass. 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 (2020-21) was about eighteen thousand (18,000) 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:
Both UTA and SLC Corp. desire to extend their current Trip Rewards Agreement one (1) additional year. The updated contract term will be July 1, 2020 through June 30, 2023.
Total annualized boardings July 2021 through June 2022 for SLC Corp. is estimated to be about twenty-eight thousand (28,000) 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:
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Contractor Name: |
Salt Lake City Corporation |
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Contract Number: |
20-F0051-2 |
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Base Contract Effective Dates: |
July 1, 2020 through June 30, 2022 |
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Extended Contract Dates: |
July 1, 2022 through June 30, 2023 |
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Existing Contract Value: |
$84,400 |
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Amendment Amount: |
$65,000-$75,000 (estimate) |
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New/Total Contract Value: |
$149,000 to $159,000 |
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Procurement Method: |
NA |
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Budget Authority: |
NA |
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ALTERNATIVES:
1. Not approve the modification and renegotiate a new contract price and term
2. Not approve the modification and forgo revenue
FISCAL IMPACT:
• Estimated revenue of $65,000 to $75,000 (2022-23)
• Total revenue over three (3) years is estimated to be $149,000 to $159,000:
|
Year |
Value |
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2020-21: Base Contract |
$27,000 |
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2021-22: Amendment 1 |
$58,000 |
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2022-23: Amendment 2 |
$65,000 to 75,000 |
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|
|
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Total |
$149,000 to $159,000 |
ATTACHMENTS:
Amendment 2