Consideration of and action on authorization of a Contract with River North Transit LLC, in the amount of $1,527,969.00, for a Microtransit Service Pilot Program; approval of an exception to Resolution 10-29 to allow for limited usage of the City logo for this project to include vehicle wraps, the service app, and marketing of the service (online and in print format); authorization of the City Manager to sign on behalf of the City for the purpose of publishing Sugar Land On-Demand to the Google Play Store for the service app; and authorization of a Budget Amendment in the amount of $5,082,528.00 to revenues and expenditures.

The City was awarded $3.5M in federal CMAQ grant to conduct a 3-year Microtransit Pilot. The grant covers 80% of the cost and requires a 20% local match. Fort Bend County's 2023 Mobility Bond will also support the project with $1.5M, which will be used for the local match.

The Microtransit Pilot project will offer a wealth of benefits to our community. Passengers will enjoy affordable fares of $2 per trip. As a shared ride option, it boasts a more sustainable footprint compared to personal vehicles, contributing to improved air quality and reduced traffic congestion. Microtransit will supplement the current commuter Park & Ride and Demand Response services provided by the county (Fort Bend Transit) by providing a day-of service with first-mile/last-mile connections to the two commuter park-and-ride lots in Sugar Land. Technology allows trips to be requested in real-time when a passenger is ready to go, with wait times of approximately 12-15 minutes.

The Engineering Department published a formal Request for Proposals (RFP) to select a turnkey service provider for the Microtransit Pilot project, utilizing the OpenGov procurement platform. The RFP was open from September 11 through October 4, 2024. We received proposals from five different companies. The review committee selected River North Transit, which is a wholly owned subsidiary of Via Transportation Inc. Via is a global Microtransit provider with over a decade of direct experience in Texas, currently working with over 30 partners across the state. They will provide a fully turnkey service that includes software technology, world-class transit operations, and end-to-end support. The fleet will include 5 fully electric and 3 hybrid wheelchair accessible vehicles that roam in a small, 18-square-mile zone within the heart of the City that includes most commercial centers, area hospitals, the Sugar Land Regional Airport, the University of Houston at Sugar Land campus, and more.

The initial contract term is one year with option to renew for two additional years upon mutual agreement with River North Transit. The contract amount for the first year is $1,527,969 with $1,194,176 being covered by the CMAQ grant and $298,544 will come from the FBC Mobility Bond. In addition, $35,249 will come from fares collected. 

 
An interlocal agreement was executed with FBC on November 26, 2024 to accept the $1.5M bond money. Resolution No. 24-42 was approved by City Council on August 6, 2024 to accept the 3-year $3,582,528 federal CMAQ grant through H-GAC. The total funding amount is $5,082,528 from both the CMAQ grant and the FBC Mobility Bond. This amount is requested in the accompanying budget amendment. 
 
The Engineering Department is requesting that the City Council approve the execution of a one-year, turnkey Microtransit service contract with River North Transit, LLC, in the amount of $1,527,969.00; make an exception to Resolution 10-29 to allow for usage of the City logo for this project only for vehicle wraps, the service app, and marketing of the service, but prohibiting any other use; authorize the City Manager to sign on behalf of the City for the purpose of publishing Sugar Land On-Demand to the Google Play Store for the service app; and authorize a budget amendment in the amount of $5,082,528.00 to expenditure and revenue.