Waukesha City Transit Commission approves multi-year county agreements, Payrock processing and service contracts

The Waukesha City Transit Commission on Dec. 5 unanimously approved a slate of agreements that staff said would keep county transit services operating and update payment systems at the city's transit center. The actions included a five-year intergovernmental agreement (IGA) to provide transit administrative services for Waukesha County, a merchant-processing contract for new ticket vending machines, a 2025 operating contract to run Route 1 in Milwaukee, a one-year extension of paratransit service for a grandfathered rider, and the formal assignment of commuter contracts to a new operator following a bankruptcy sale.

City staff described the five-year IGA with Waukesha County as a continuation of work the city has provided since 2003 — contractor oversight, grant and finance management, route planning and service decisions — and said the revenue to the city in the first year is just under $146,000. Staff told commissioners the county typically uses indexes such as the Employment Cost Index to guide annual increases (roughly 3 percent in years two through five). Chair Steve Cassens presided over the discussion and asked procedural questions; staff answered that federal dollars are not held by the city for the county but that WisDOT payments may be received and tracked by the city’s finance director.

On the new ticket vending machines at the transit center, staff said the proposed merchant-processing agreement with Payrock/World Access LLC covers credit- and debit-card transactions for purchases at the machines. Staff characterized the fees as standard, noting an example structure of a small fixed cent fee plus approximately 0.25 percent of a transaction’s value. Commissioners asked whether other city systems use Payrock; staff said the vendor for the vending machines integrates Payrock as a back-end partner and that broader bundling with other city payment services could be revisited in a year.

The Commission also approved a 2025 operating agreement with Milwaukee Transport Services to operate Route 1. Staff said MTS will pay $115.78 per hour and the city will provide an 80-cent-per-ride fair-revenue credit; the hourly charge represents an increase of just under 4 percent. Staff estimated total anticipated revenue tied to the Milwaukee service at about $1,100,000. The route will continue to run through turnarounds noted in staff remarks and staff said the terms cover costs while preserving service.

A county business item on paratransit was presented next: staff said Waukesha County will fund one more year of service for a grandfathered Route 901 paratransit rider. Staff reported the fare for that service is $12.50 while the actual operating cost of a one-way trip is roughly $115; staff said the rider uses the service about three times a week and that county budget language covers the cost so no city funds are used.

Finally, staff asked the Commission to approve assignment of commuter-service contracts to Wisconsin Transit Lines LLC after Wisconsin Coach Lines (part of Coach USA) was sold following a bankruptcy proceeding. The city attorney will prepare assignment documents; staff said the change is strictly a legal assignment of the contract to a new entity and does not change the contract terms.

All motions on the agenda passed on unanimous recorded voice votes. Staff also announced a public hearing at the Commission’s next meeting on Jan. 9 to review proposed financial-management changes and potential route consolidations that would take effect the following June. The meeting adjourned after the announcements.