City Council Agenda Report
October 7, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: James C. Parker, Executive Director of Regional Transportation Theresa Clark, Transit Administration Officer
Derek Donnell, Manager of Transit Operations
Miguel Garcia, Fleet Maintenance Manager
SUBJECT: RESOLUTION NO. 25-45 - BUDGET AMENDMENT FOR MICROTRANSIT/ON-
DEMAND PILOT TRANSIT SERVICES
Background:
The Norwalk Transit System (NTS) currently operates six Fixed Routes serving the City of Norwalk and surrounding communities of Artesia, Bellflower, Cerritos, El Monte, La Mirada, La Habra, Santa Fe Springs, South El Monte, Whittier and portions of unincorporated Los Angeles County (See Exhibit I Route 1, 2, 3, 4, 5 & 7).
Fixed-Route Service Productivity:
In Fiscal Year 2024/25, NTS Fixed-Route system transported approximately 1.3 million passengers. The highest performing most productive service includes the following Fixed- Routes:
Route 1 operates north and southbound with a southbound terminus in the City of Bellflower and northbound terminus at Rio Hondo College; and Route 2 operates circulator service between the Los Cerritos Mall and C Line Ligh Rail Station in the City of Norwalk; and
Route 4 operates eastbound and westbound between the City of La Habra and C Line Light Rail Station via Imperial Hwy.; and
Route 7 operates north and southbound with a southbound terminus at the C Line Light Rail Station and northbound terminus at the El Monte Bus Station.
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These four Fixed-Routes had an average daily ridership of 15 passengers per hour at an average cost of $12.00 per passenger hour.
The lowest performing service that operated on a subpar productivity basis include the following Fixed-Routes:
Route 3 operates as a local circulator with a southern terminus at 166 Street & Norwalk Blvd and northern terminus at the Santa Fe Springs Gateway Plaza; and Route 5 operates eastbound and westbound between the City of La Mirada and C Line Light Rail Station via Rosecrans Blvd.
These two Fixed-Routes had an average daily ridership of 8.9 passengers per hour at an average cost of approximately $19.81 per passenger per hour.
Route 3 and Route 5 present several key productivity challenges as it relates to operating on corridors that are located in low density areas with pockets of high-density housing. Also, these routes provide limited access to major transit hubs with a few exceptions and have high headways of 45-60 minutes with no weekend service.
To address the challenges associated with Routes 3 and 5 while preserving fixed-route service in low-income and disadvantaged neighborhoods NTS proposes a one-year pilot of a Microtransit/On-Demand service along the corridors currently served by these routes.
NTS will collaborate and contract with Nomad Transit, LLC, a wholly owned subsidiary of Via Transportation, Inc. (“Via”) for the initiation of a Microtransit/On-Demand Pilot project with a 12- month duration following a launch date in January 2026. Via’s experience includes providing Microtransit/On-Demand services to LA Metro, Los Angeles Department of Transportation and Torrance Transit.
Microtransit/On-Demand Service Parameters:
Microtransit/On-Demand services allow patrons to schedule trips via a mobile app or landline.
Within a designated geographic zone, riders can request the following types of trips:
1. Door-to-door service;
2. Door-to-transfer service, connecting to a fixed-route public transit system, including NTS;
3. Door-to-terminus service, with drop-off at either the Norwalk/Santa Fe Springs Metrolink Station or the I-105/I-605 Norwalk C Line Light Rail Station This model relies on dynamic routing that leverages a mobile app to provide efficient transportation that adapts to passenger needs and solves first-mile, last-mile requirements.
Although fixed-route services remain a vital option particularly in moderately dense areas with centralized destinations, the introduction of Microtransit/On-Demand services through a contract with Via offers significant benefits that can enhance overall system productivity. These benefits include greater flexibility, shorter wait times, and more inclusive service options. While rideshare City Council October 7, 2025
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partnerships such as Uber and Lyft offer a high level of user convenience, they can be cost- prohibitive and may present accessibility challenges for individuals with disabilities if proper accommodations are not in place.
Via will provide access to an app platform service through which patrons will be able to book and pay for rides on a shared and on-demand basis using dedicated vehicles. Via will provide access to booking trips by means of a dedicated phone line for patrons who do not have access to a smartphone.
Geographic Coverage Zone:
NTS has identified corridors to better connect residents and transit users to various destinations within a geographic zone by means of Microtransit/On-Demand service. The geographic zone replicates corridors currently served by NTS Route 3 and NTS Route 5 Fixed-Route service.
Approximately 13.4 square miles coverage zone.
Service Days/Hours:
Monday through Friday 6:00am to 7:00pm
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Fare Policy:
The Microtransit/On-Demand fare policy will be the same as NTS Fixed-Route service adult base fare of $1.25 for duration of the Pilot Program. NTS shall collect and retain all revenue from Microtransit/On-Demand fares, net of service fees, starting upon launch of the Pilot.
Driver Workforce & Supply Management:
Via drivers (Driver Partners) will provide transportation services to patrons through the app Platform. Via will engage in a good faith effort to register Norwalk, CA residents as Driver Partners.
Via will ensure that Driver Partners have appropriate licenses, permits, and insurance required for the type of vehicles being operated. As part of Driver Partner registration for access to the Platform, all Driver Partners will be introduced to Via regarding the following areas:
Familiarization with the Pilot service area;
Hours of service; Customer’s expectations;
Use of the Driver App; and
Reporting incidents and delays in service.
Via will be responsible for ensuring that there is adequate driver supply for the geographic service zone within designated hours to meet demand with optimal quality of service.
Vehicle Fleet:
Via will provide a fleet of up to 15 branded, licensed, and insured vehicles, including 5 Wheelchair Accessible Vehicles (WAVs), available for passenger use. If the branded fleet is insufficient to meet service demand for any reason, Via has the flexibility to:
Supplement the fleet with a temporary mix of other makes and models, and/or Deploy Driver Partners using their personal vehicles for short-term periods as needed to increase vehicle availability. These vehicles may be unbranded but will be identified with magnetic signage.
Via will also ensure that all necessary registrations and licensing are completed to operate the service in compliance with applicable regulations.
Promotion & Marketing:
NTS shall provide Via with a detailed marketing plan for the portions of marketing that the Customer is leading at least 4 weeks before the launch of the service. Via and NTS will work collaboratively to refine the plan as needed. For clarity, Via may also choose to implement similar marketing initiatives on behalf of NTS at its own expense. In such cases, Via will coordinate with NTS in advance to ensure alignment and consistency.
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Fiscal Impact:
The table below outlines the payment structure, in which NTS would be charged an upfront fee and ongoing monthly fees based on vehicle hours. All regulatory fees related to the service will be charged as a pass-through cost. The total contract value shall not exceed $2,440,370 for the 12-month contract term.
Norwalk Transit: Via Total Not-to-Exceed Contract Value
Price per Vehicle
Hour Total Price
Fixed (Upfront) Costs N/A $150,400
Total Upfront Cost $150,400
Project Management & Other Operations* $23.04 $810,708
Driver Pay (Incl. WAV) $40.04 $1,408,887
Customer Service $2.00 $70,374
Total Cost per Vehicle Hour $65.08 $2,289,970
Total Not-to-Exceed Cost to Norwalk Transit $2,440,370
Note: Pricing excludes all taxes and assumes service hours of 4:30am-7pm M-F. Pricing assumes launch within 4 months of contract signing.
* Includes IT hosting, technology access, operations support, and other miscellaneous costs.
Vehicle Hours Summary:
Total Implied Vehicle Hours 35,187
Total Implied Vehicle Hours (Weekly) 677 Total Implied Service Hours 3,770 Total Implied Service Hours (Weekly) 73 All necessary budgetary adjustments for Fiscal Year 2025/26 are addressed in Resolution No. 25-45 for the first six months of the program; the remaining balance of $1,220,185 will be placed in the Fiscal Year 2026/27 Transportation budget. There is no impact to the general fund.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
N/A
Recommended Action:
Staff recommends City Council:
a. approve the Microtransit/On-Demand Pilot Program for one year, in the amount of $2,440,370; and authorize the City Manager to execute the contract and any amendments City Council October 7, 2025
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or extensions provided there is funding in the budget, on behalf of the City, in a form approved by the City Attorney; and
b. adopt Resolution No. 25-45, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK AUTHORIZING AMENDMENTS TO THE FISCAL YEAR 2025/26
TRANSPORTATION BUDGET TO SUPPORT SERVICES FOR THE
MICROTRANSIT/ON-DEMAND PILOT PROGRAM, in the amount of $1,220,185 for the first six months.
Attachments:
1. Resolution No. 25-45
2. Exhibit I - Routes 1, 2, 3, 4, 5 & 7