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West Bend approves five‑year taxi service agreement; staff warned local levy share could rise to about $362,000 in 2026
Summary
The Common Council approved continuation of the municipal shared‑ride taxi service and related lease agreements for 2026 after staff reported rising contract costs, an expected hourly rate increase and shrinking grant and ridership revenue that could raise the city's local levy share to an estimated $362,000 next year.
The Common Council on Sept. 22 approved continuation of West Bend’s municipal shared‑ride taxi service and related lease agreements for 2026 and authorized moving forward with a five‑year service agreement process.
Doug (transportation staff) summarized the service and the results of a recent RFP process, saying the city currently dispatches roughly 60,000 to 80,000 rides a year using a fleet of 14 vehicles (seven ADA‑compliant cars and seven vans) that the city owns and leases to the service operator. “We currently have 14 taxis, 7 of which are ADA compliant and 7 of which are vans,” Doug said. He told council the service operates seven days a week and that grant funding has historically covered about 53% of operating costs.
Doug said he expected an increased local share in 2026 because contracts and ridership have changed. “Based on our calculation for the 2026 taxi service, we expect a local share or levy cost to be around 362,000,” he told the council. He said the city’s current hourly contract rate was roughly $35.15 and that one proposal put the rate at $39.73 per hour; staff had initially budgeted $45/hour and received multiple proposals through the FTA‑required RFP process.
Council discussion covered drivers of the rising local share (reduced ridership after COVID and changes in grant funding), whether county or other shared arrangements could reduce costs, and operational questions such as whether the incumbent operator’s employees would be available to a new provider and whether facilities would be located in an appropriate zoning district. Doug said the county’s shared‑ride service operates under different rules and that state and federal grant regulations limit duplicative service.
Staff recommended awarding the next five‑year agreement to Running Incorporated after an evaluation process that first scored proposals on technical merit and then opened cost proposals. Council voted to approve agenda items 9 and 10 — the service and lease agreements and the shared‑ride operation for 2026 — by voice vote.
Council members and the city administrator said the estimated 2026 local share will be included in the 2026 budget discussion and that longer‑term policy choices about the level of service, alternatives and funding are pending. “This will be, though, considering the trends, a future policy discussion for the council to have with regards to this particular taxi program and how we would look to fund it,” City Administrator Jesse said. The council’s approval authorized staff to proceed under the terms presented and to finalize the contract consistent with the RFP results.
Direct quotes in this article are from Doug and Jesse as recorded in the meeting transcript.
