Committee reviews proposed transit contract with Via (Port City Transit LLC); employee transfers, contract term and funding remain under negotiation

Mobile — The Mobile Public Services Committee on Thursday discussed a proposed contract that would replace current operator Transdev with Port City Transit LLC (operating with Via Transportation) to run the city’s public-bus system, covering a proposed not-to-exceed annual payment of $12,100,000 and a planned nine-month review of routes and service design. The committee did not take a formal vote and several terms remain under negotiation.

The contract on the agenda would set the city’s maximum annual obligation at $12.1 million, Scott Collins, a city staff presenter, said. Collins said about $4.1 million of that total was expected to be supported by federal awards that Via would pursue and manage, and that the city would effectively pay approximately $8 million if those awards are obtained.

Committee members said the term length, employee-transition language and near-term operational protections were the highest priorities. Councilman Corey Penn said, “I’m not voting on anything today,” and pressed for contract language that would change the renewal structure to require City Council approval before any multi-year renewals. Collins said Via had proposed alternative renewal options during negotiations but that Via had provided a verbal agreement at the meeting to accept a 3-year initial term followed by two 1-year renewal options (a “3-1-1” structure), subject to written amendment.

Why it matters: The current contract with Transdev expires on Sept. 30; staff extended it previously for 90 days to complete a competitive procurement. If no replacement is in place by Oct. 1, Collins said the city would need either another extension with Transdev or an interim arrangement, and that Transdev might or might not continue service without a new contract.

Discussion highlights: Committee members and staff described a planned nine-month window for public outreach and federally required public involvement hearings to redesign routes, consider microtransit and paratransit options, and determine capital needs. Ria Shaw, identified as a regional vice president at Via, described Via’s experience operating microtransit and paratransit programs in other communities and said Via has run the Mogo microtransit pilot in Mobile in partnership with the Mobile Chamber of Commerce.

Staff and council members discussed operational and contract details the committee wants clarified before a final vote: whether accrued vacation or other leave balances will be carried forward or paid out for Transdev employees, how employee offers and background checks will be handled, the city’s inventory and ownership of tangible assets (buses, buildings, stops), whether capital improvements to shelters or stops would be the city’s responsibility, and how monthly invoices would be calculated.

On employee transitions, Collins said Via representatives were already meeting with staff and offering employment pending required background and drug screens, and he said Transdev has indicated it is prepared to pay out accrued vacation balances on final payroll unless the city chooses otherwise.

Funding and risk: Committee members sought clarity on whether the $4.1 million federal award portion was guaranteed. Collins and Via staff said Via would be responsible for seeking federal awards and had expressed confidence in obtaining them; Collins added that the contract’s flat-rate structure would make Via responsible for any shortfall if federal awards were not secured. The committee also discussed a capital allocation staff presented — $1,300,000 per year over four years — which Collins said is strictly for fleet and not an assumption of stop infrastructure improvements.

Operational metrics and billing: The contract ties payment to “billable hours” (discussed as active versus static/sitting hours) and includes caps on monthly and annual invoicing. Collins described those metrics as tools to monitor system performance; committee members asked for monthly reporting details and suggested adding contract language to create stronger incentives to reduce net city transit costs over time.

Next steps: Staff said they could draft the agreed changes — including the 3-1-1 term language and clarified employee-transfer language — and return the revised contract text to the council. No formal motion or vote occurred during the committee session. Collins and other staff warned that the closer the process gets to Sept. 30, the more difficult employee transitions and start-up activities will become if the contract is delayed.

The committee also discussed immediate, localized improvements that could be made while the nine-month review proceeds, including adding shelters at stops and adjusting routes where neighborhoods currently lack adequate service; Councilman Joel Daves specifically urged study of the Cody Road corridor between Overlook and Old Shell.

No formal action was recorded at the committee meeting; the item remains on the City Council agenda pending finalized contract language and a council vote.