PRESENTER: Presenter
Garry Ford, Transportation and Construction Services Director
Julie Sitton, Transit Manager
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SUBJECT: Title
Approval of a contract modification with River North Transit LLC, a wholly owned subsidiary of Via Transportation, Inc., for transit services to the New Braunfels Urban Transit District.
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DEPARTMENT: Transportation and Construction Services
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
The City of New Braunfels is responsible for providing public transportation in the federally designated New Braunfels small urbanized area. The New Braunfels Urban Transit District was established by the State of Texas, recognized by the Federal Transit Administration (FTA), and receives direct federal and state funds to provide transit operations for the community.
The City entered into a contract for transit services with River North Transit LLC, a subsidiary of Via Transportation, Inc., in October 2025. River North Transit LLC was selected to provide turnkey microtransit service through a competitive process meeting FTA procurement and contract requirements. The contract covers all operating and ongoing technology costs required to deliver transit service to the community. Additionally, the transit service is approved in the Alamo Area Metropolitan Planning Organization 2025-2028 Transportation Improvement Program and the Texas Department of Transportation’s 2025-2028 Statewide Transportation Improvement Program.
The contract with River North Transit LLC was approved based on vehicle hours, with an estimated annual budget of $1,146,000 for year 1 (Fiscal Year 2026), increasing incrementally in years 2 and 3, for a total contract value of $3,680,000 for the 3-year base term.
The contract with River North Transit LLC has been modified twice. The first contract modification took effect on January 22, 2026, and clarified the contract execution date and fiscal terms. The second contract modification took effect on May 14, 2026, and increased the vehicle supply in Year 1 for a not-to-exceed cost of $28,449.
The service started with eight vehicles, operating from 7:00 AM to 8:00 PM. Ridership has exceeded expectations, requiring two additional vehicles, which were added in June 2026. This third contract modification will increase the vehicle hours budget due to the addition of two vehicles needed to support the increased ridership demand. Additionally, in Fiscal Year 2027 (October 2027), we plan to change the service start time to 6:00 AM to better support riders requesting rides to employment and possibly expand the microtransit zone within the designated New Braunfels urbanized area. This modification increases the annual contracting cost by $263,358.
ISSUE:
N/A
STRATEGIC PLAN REFERENCE:
N/A Economic Mobility YES Enhanced Connectivity N/A Community Identity
N/A Organizational Excellence YES Community Well-Being
FISCAL IMPACT:
The contract is currently funded by the American Rescue Plan Act (ARPA) and grants from the Federal Transit Administration (FTA) and the Texas Department of Transportation (TxDOT), which reimburse the City. The proposed contract modification cost is provided in the table below. Funding is included in the FY27 Budget for Transit; therefore, sufficient funds are available to support this contract.
|
Description |
Year 1 |
Year 2 |
Year 3 |
|
Start Date |
10/14/2025 |
10/1/2026 |
10/1/2027 |
|
End Date |
9/30/2026 |
9/30/2027 |
9/30/2028 |
|
Initial Contract Service Cost |
$1,146,000 |
$1,180,000 |
$1,216,000 |
|
One-time Implementation Cost |
$138,000 |
- |
- |
|
Contract Modification #1 Contract clarification |
- |
- |
- |
|
Contract Modification #2 Up to three new vehicles Increase Service Cost One-time Cost |
+19,449 +9,000 |
- |
- |
|
Contract Modification #3 New vehicles and 6 AM start Increase Service Cost |
- |
+$263,358 |
- |
|
Future Contract Modifications Based on future vehicle and service needs |
- |
TBD |
TBD |
|
Total Not-to-exceed cost |
$1,717,821 |
$1,443,358 |
$1,216,000 |
|
Current Funding |
TxDOT & ARPA |
FTA & TxDOT |
FTA & TxDOT |
Recommendation
RECOMMENDATION:
Staff recommends the approval of the contract modification with River North Transit, LLC for transit services to the New Braunfels Urban Transit District.