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Transmittal - 5/23/2024ERIN MENDENHALL DEPARTMENT of COMMUNITY Mayor and NEIGHBORHOODS Blake Thomas Director SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 404 WWW.SLC.GOV P.O. BOX 145486, SALT LAKE CITY, UTAH 84114-5486 TEL 801.535.6230 FAX 801.535.6005 CITY COUNCIL TRANSMITTAL ________________________ Date Received: _________________ Jill Love, Chief Administrative Officer Date sent to Council: _________________ ______________________________________________________________________________ TO:Salt Lake City Council DATE: 05/23/2024 Victoria Petro, Chair FROM: Blake Thomas, Director, Department of Community & Neighborhoods __________________________ SUBJECT:Transit Master Plan Implementation Interlocal Agreement (ILA) with the Utah Transit Authority (UTA), Addendum No. 8 – Continuation of FTN Routes 1, 2, 9, and 21 STAFF CONTACT:Julianne Sabula, Deputy Director of Transportation, julianne.sabula@slcogov.com, 801-535-6678 DOCUMENT TYPE: Resolution RECOMMENDATION: That City Council approve a resolution (Exhibit 1) authorizing the Mayor to enter into the proposed Addendum 8 (Exhibit 3) to the Interlocal Agreement with UTA (Exhibit 2) to implement 2024-25 Frequent Transit Network (FTN) service. BUDGET IMPACT:The budget impact of Addendum No. 8 is $6,310,853.09 for the FTN service to be provided during FY 24-25 along Routes 1, 2, 9, and 21, which is currently funded to run until August Change Day 2024. The funds associated with this addendum are included in the Mayor’s Recommended Budget, and cost details appear in Exhibit 4. BACKGROUND/DISCUSSION: The Transit Master Plan Implementation ILA with UTA is a twenty-year agreement that has a goal of full implementation of the FTN as described in Salt Lake City’s Transit Master Plan. Council adopted the Plan in 2017 with the intent that six corridors would be included in Phase One of implementation. These corridors are 200 South, 900 South, 2100 South, 1000 North, 600 North, and 400 South. Council has since approved Addendum No. 1, along with a corresponding budget appropriation, to mobilize (referring to the recruitment, hiring, and training of operators, mechanics, and Jill Love (May 23, 2024 16:33 MDT) Jill Love 05/23/2024 05/23/2024 supervisors, as well as the initial vehicle lease payments for training and testing along the new routes) for service on Routes 2, 9, and 21, which began operations in August 2019. Addendum No. 2 and the corresponding budget sponsored continuation of the increased frequency and hours of operation (span) on these routes. UTA conducts periodic “true-ups” to determine whether actual costs came in at, above, or below projections, for instance, due to fuel costs. This yielded an amendment to Addendum No. 2, which was approved in January 2021 and resulted in a credit to Salt Lake City. Addenda Nos. 3 and 4 have continued operation of additional span and frequency on these routes for the 2020-21 and 2021-22 service years until Council approved and funded Addendum 5 to mobilize for Route 1. Addendum No. 6 was approved in 2022 for the launch of service on Route 1, in addition to continued service on the 2, 9, and 21. Council also approved an amendment to Addendum No. 3 in 2022 for a credit to the City as a result of Covid- related service reductions. Addendum No. 7 was approved in 2023 for the continuation of service on Routes 1, 2, 9, and 21. This Addendum No. 8 mimics Addendum No. 7 for continuation of the sponsored routes, with adjustments made according to the terms of the main agreement. These include inflation, fuel costs, and UTA’s “baseline” which refers to the level of service UTA would provide absent City sponsorship based on the service guidelines articulated in the Five-Year Service Plan. It should be noted that the City and UTA decided to use an annual inflation rate of 2.2% in the cost calculator with the idea that over the course of the 20-year agreement, fluctuations year-to-year would balance. Variations in fuel have not been significant enough to warrant a true-up, as actual costs must deviate at least 30% from projected costs to do so. Additionally, ridership on Routes 1, 2, and 21 now meets UTA’s Service Design Standards for Tier 1 Service on weekdays and Sunday, which are now included in the baseline at no additional cost to Salt Lake City. Implementation of the FTN has been a highly collaborative effort between the City and UTA over the past six years. Many of the corridors in the Transit Master Plan are included and budgeted for in UTA’s Five-Year Service Plan. Some have already been implemented at UTA’s expense, such as the 900 East and Avenues corridors (Route 209), State Street (Route 200), 600 North (extension of Route 205, proposed for restoration of frequent service as labor supply rebounds), and Redwood Road (Route 217). PUBLIC PROCESS: The Transit Master Plan public process was very robust and included 16 stakeholder interviews, 18 mobile events, and over 2000 unique online comments. The Transportation Advisory Board and Bicycle Advisory Committee provided guidance on both the Master Plan and the guiding principles for the ILA. Specific to the ILA, addenda, and corresponding City budget appropriations, the process included City-hosted public hearings on the ILA and prior addenda. This year’s budget process, including public hearings, will provide for additional public comment on the transit service line item. In addition, UTA conducts public hearing processes for the Five-Year Service Plan, as well as for each Change Day. EXHIBITS AND ATTACHMENTS: 1)Resolution 2)Salt Lake City Corporation and Utah Transit Authority Transit Master Plan Implementation Interlocal Agreement 3)Addendum No. 8 a)Description of the 2024-25 FTN Routes b)2024-25 Baseline Services c)2022 National Transit Database (NTD) Profile d)Cost Per Mile e) Paratransit Costs f)Cost Worksheet for the Total Annual Cost for City-sponsored 2024-2025 FTN Routes