Sugar Land extends microtransit pilot, boosts grant funding and renews operator contract

The Sugar Land City Council unanimously approved two actions on the city's microtransit pilot on March 3: a change order to the Houston-Galveston Area Council (HGAC) intergovernmental agreement that extends the pilot term to Feb. 28, 2027 and increases grant funding by $1,427,760 (for a revised grant total of $2,920,480), and a one-year renewal of the turnkey service contract with River North Transit LLC in the amount of $1,742,771.

Transportation and Mobility Manager Melanie Beeman told the council the service began March 18 of the prior year and has carried more than 34,000 trips to date, with about 5,100 trips in February and roughly 40% of trips shared. Beeman said the federal CMAQ grant covers about 80% of project costs, Fort Bend County contributed $500,000, and year-one operations left a roughly $250,000 surplus the city can use for year two. She asked the council to approve both the HGAC change order and the River North contract renewal to maintain and expand service.

Council members pressed staff on operational issues raised during public comment and in district outreach, including long wait times and rider demographics. Councilmember Watley said residents with disabilities and seniors had reported long waits and asked whether the city could use the pilot's software and data to tailor service for vulnerable users. Beeman said the program does not currently collect demographic data beyond name and contact information but staff could deploy a rider survey; she also identified Clements High School as a high-demand pickup location and said the city could change pickup points or time restrictions to reduce vehicle bottlenecks.

Beeman said current met-demand is about 85% with a city target above 90% and recommended adding one vehicle (the second year budget covers adding vehicles) to help meet that standard. She provided unit-cost figures and operating-hour estimates to justify the renewal and added funding request.

Councilmember Watley moved to approve the HGAC change order; the motion was seconded and passed 7-0. The council then approved the River North Transit LLC one-year renewal (motion by Councilmember Miller, second by Councilmember Vonderhaar) by the same margin.

Next steps: staff will execute the HGAC change order, finalize the River North contract renewal and return to the council with any operational adjustments informed by the pilot data, including potential pickup-location changes or targeted outreach to vulnerable riders.