City of Augusta says transit savings did not materialize | The Augusta Chronicle

Augusta’s first experiment in outsourcing public transit did not create the cost savings promised two years ago by Mobility Transit Services, city officials said Tuesday.

Never a money-maker, the city bus and Richmond Transit services cost the city about $5 million a year, and 2012 was no exception, city financial analyst Susan Kain told Augusta Commission members Tuesday.

The city paid $3.96 million to Mobility during the year, but related transit expenses, such as diesel, brought the city’s cost much higher.

Kain said total transit expenses for 2012 ran about $5.03 million.

Mobility could not be reached for comment. An e-mail to its operations manager and interim general manager, David Jones, was returned, marked undeliverable.

According to city officials, Mobility disputes the city’s figures.

“We’ve asked how they arrived at their numbers,” Deputy Finance Director Tim Schroer said. “What they told us was it was the difference between their bid and the amount they billed us. In my opinion, it was not the true savings amount.”

via City of Augusta says transit savings did not materialize | The Augusta Chronicle.