Anchorage asked to raise bus tire contract authority by $500,000

Anchorage's transit department is asking the Assembly for up to $500,000 more in spending authority on its bus tire contract, citing rising tire-leasing and labor rates. The People Mover fleet leases its tires rather than buying them — a common arrangement for transit agencies — for the 63 buses that run the city's fixed routes.

The added money would cover higher rates from mid-2026 through mid-2028. It's a small slice of the department's roughly $33.8 million operating budget, and it wouldn't come from the general fund; the money is set to come from transit capital bond proceeds and grants.

The contract, with Goodyear, started in 2023 and has grown as costs climbed — labor rates rose about 4% and leasing rates 3% in the last renewal, with another 4% bump expected at each future extension. If the city exercises all its renewal options, the contract's total ceiling reaches about $2.2 million.

Mayor Suzanne LaFrance submitted the request, and the administration recommends approval.