City staff recommends keeping ETHRA as Oak Ridge transit operator; council to consider in May

The Oak Ridge evaluation committee recommended continuing the city's on-demand transit contract with East Tennessee Human Resources Agency (ETHRA) and will send that recommendation to the May City Council meeting for final approval.

The recommendation followed a restricted request for proposals issued in February and closed in April. Kendall Moore, a city staff member overseeing the procurement, told the council the evaluation panel considered experience, operational approach, maintenance and facilities, safety and compliance, and cost. Two firms responded: ETHRA, the incumbent nonprofit operator; and LAZ Parking LLC, a private parking and shuttle operator. Moore said the committee concluded ETHRA "demonstrated superior alignment with the operational requirements and fiscal constraints." The committee will ask council to authorize contract negotiations if council approves the selection.

Why it matters: Oak Ridge Transit is funded in part by a Tennessee Department of Transportation grant with a 20% local general fund match. The contract operator controls day-to-day service delivery for riders who rely on door-to-door, on-call transportation, including older adults and people with disabilities.

Key details: Moore said ETHRA's proposed cost was about $230,000 per year. LAZ's proposal listed roughly $450,000 per year but Moore warned the LAZ figure did not appear to include fuel, maintenance, cleaning or possibly required software. The city has not yet received its TDOT allocation letter for the next fiscal year; the current 10-year arrangement with ETHRA expires in June. Moore and staff said they expect to begin contract negotiations after council approval and aim for a July 1 contract start to maintain seamless service.

Council concerns and contract conditions: Council members pressed staff to use negotiations to secure operational improvements. Council member Charlie Hensley urged the city to consider a service model that requires less advance notice, saying riders often "plan my day about 1 hour ahead of time." Councilwoman Ellen Smith, who served on the evaluation committee, said LAZ appeared to misunderstand the city's door-to-door service model and proposed mainly fixed-route service; she called LAZ's cost assumptions unclear. Several council members and staff noted ETHRA is developing software/app capabilities and said the city should try to require tracking, better pickup windows, a call center for app-nonusers, and potential expansion of hours including Sunday service as conditions in negotiations.

Contract length: A staff presentation noted the city is proposing a contract structure of one year plus nine one-year renewal options, for up to 10 years, with annual review points and quarterly stakeholder meetings to monitor performance. Staff emphasized the council would retain the option not to renew.

Next steps: The evaluation committee's recommendation will be placed on the May City Council meeting agenda for second consideration and a formal vote. If council approves the selection, staff will begin contract negotiations with ETHRA and bring negotiated terms back to council for final authorization where required.