Commission awards transit operations contract to MV Transportation amid debate over microtransit and contract term

The commission approved the recommendation to award RFP 25125 for transit operations and maintenance to MV Transportation for an initial three-year term with two one-year renewal options.

Director of Transit (Director Daughtry) told the commission that the base RFP covered fixed-route, rural and ADA paratransit services and that adding microtransit would be an additional cost beyond the baseline contract. MV Transportation representatives told commissioners their proposal included a professional services component to study route optimization and that MV operates microtransit elsewhere.

Commissioners questioned whether the city should in-source transit operations. MV's senior operations vice president cited public examples where in-sourcing proved significantly more expensive. Legal staff and the administrator asked for confirmation that the contract language preserves the city's ability to require route optimization and to amend terms if needed; commissioners requested staff and legal confirm the final contract language. After discussion, the commission voted to approve the award; staff and the contractor will finalize the executed contract following legal review.

Next steps: Staff will finalize contract language with legal counsel to ensure route-optimization and modification clauses are included and manage the transition for the January 1 start date; the transit director will continue discussions with FTA for planning funds.