FY 2425 2526 Recommended Operating Budget

Parks and Recreation Division

Innovative Transit

010.2170

Division Description The Innovative Transit program is a service funded through the Valley Transportation Authority ’ s (VTA) Measure B Innovative Transit grant program. The two - year funding provides an on - demand rideshare service for City residents and visitors. MoGo Morgan Hill Quickride (MoGo) is provided by a transportation partner, Rideco, Inc., and overseen by staff in the Public Services Department. MoGo provides rides to and from virtual stops within a short walk for all residents in the City, allowing passengers to connect to other transportation such as Caltrain and regional bus service. MoGo also provides residents with transportation for various other travel needs within the City, including to schools, shopping centers, Downtown, and employers. The two - year grant program began September 2022 and is expected to sunset in late 2024. Based on the success of the model in Morgan Hill, the City is working with VTA to identify a means to sustain the program. FY 2022 - 23 and 2023 - 24 Accomplishments • Launched on - demand rideshare service MoGo for the Morgan Hill Community in September 2022. • Served 6,647 passengers from September 2022 through June 2023, averaging 55 passengers per weekday as of June 2023. • Served 14,500 passengers from July 2023 through March 2024, averaging 87 passengers per weekday as of March 2024, with 38% of rides being shared. • Achieved 97% on - time drop off and average ride rating of 4.8 out of 5. FY 2024 - 25 and 2025 - 26 Activity Goals • Serve an average of 100 passengers per weekday during FY 2024 - 25, achieving 95% on - time passenger drop - off and average ride rating of 4.5 or higher out of 5. • Secure transitional and long - term funding to support the service and achieve sustainability. Financial Comments VTA grant funding totals $1,372,400 for the two - year program and the program is anticipated to generate $40,000 in fares over the two - year period. The City ’ s out - of pocket matching costs after this revenue is anticipated to be approximately $113,000 for the two - year period and is funded by the General Fund. Without additional funding the program is expected to sunset in late 2024.

220 PUBLIC SERVICES