New 5-year bus contract approved

City commissioners on Tuesday unanimously approved a five-year contract with the company that operates the city’s public transit system.

Commissioners authorized the city manager to sign a contract with MV Transportation that will keep the California-based company operating the T and the city’s paratransit system.

The cost to the city is expected to be $15.8 million for the five year period. The city expects to use federal and state grants that it currently receives to pay for about $9 million to 10 million of the contract.

The new contract — unlike the current contract — does not include the cost of fuel. The city will have to pay for fuel costs for the buses separately.

The city believes those costs could run about $700,000 per year, depending on fuel prices.

The new arrangement also means a majority of the transit buses will begin fueling at a city operated fueling station at 11th Street and Haskell Avenue.

The new contract begins Jan. 1.