The five-year agreement is with Tidewater Transit LLC and includes a related vehicle lease. Under a new brand, Ride OCT, the county will provide three services: ADA paratransit, rides for residents classified as “transportation disadvantaged,” and a public on-demand service for customers who schedule and pay for trips.
Airport Director Tracy Stage, whose department has overseen transit since the board realigned it Feb. 3, presented the contract.
He said the estimated fiscal 2027 operating budget is $4.54 million based on 40,000 revenue hours, with 84% going to contract costs and 16% to the county.
The budget is covered by $2.72 million in federal funding with another $1.82 million in state funding, Stage said, with no impact to the Okaloosa County general fund anticipated.
Stage said the new model will produce an estimated $1.1 million reduction in annual costs compared with the previous contract.
“The contractor operates the system, but the county sets the standards, monitors performance and protects the public’s best interest,” he said.
Stage added the contractor is responsible for daily operation, staffing, vehicle and facility maintenance, insurance, supplies, customer service and operational reporting. The county retains oversight, financial controls, grant administration and risk management.
Riders must apply and be approved before requesting trips. Applications are available online, by phone or in person, and are reviewed by an eligibility coordinator. Approved riders can request trips through a mobile app or customer service. Service runs Monday through Saturday from 6 a.m. to 6 p.m.
The change ends fixed-route service that the county has been winding down since the spring. Commissioner Trey Goodwin said the previous system was a waste of time and money.
“Nobody’s going to wait on a bus in Okaloosa County for two hours standing out there in August,” Goodwin said. “That’s why the buses were running around empty.”
Goodwin said the vote marked the first time during his tenure on the board that the county has reached zero general fund spending on transit. Previously, the county’s contribution climbed to $500,000, and the county was facing a renewal of the same contract.
Commissioner Sherri Cox moved to approve the contract, and Commissioner Drew Palmer seconded the motion.
The county’s previous operator, MV Transportation, was the subject of an inspector general audit that found oversights leading to the county overpaying the provider nearly $1 million.
That audit led to the board’s decision to move transit under the Airport Department and rebid the service.
