The city of Fountain entered an agreement Tuesday night to create a new transit system at Fort Carson with regional transfer options.

“This is something that has been years in the making,” said Fountain Mayor Sharon Thompson at the meeting.

The agreement is the fourth made so far between Fountain and Fort Carson. The city already provides pest and animal control on the Army base, as well as general facility construction services.

The newest agreement tasks Fountain with maintaining on-demand and circulator transit on the base for a period of 10 years starting in 2026. Assistant City Manager John Trylch said the contract would meet city goals for increasing mobility.

“Many of the soldiers and family members on post are very limited in their transportation options,” he said. “This can often be a struggle for them.”

The city’s Transit Department will look to hire up to 23 people over a phased implementation plan. Positions will include drivers, dispatchers and administration.

The routes on base will connect with regional transit via two off-base connections. The first is at the South Academy Highlands shopping center, and the second is a transfer at Pikes Peak State College. Trylch said riders will be able to access both Fountain Municipal Transit and the Mountain Metro Transit system that covers the Colorado Springs metro area.

Fountain’s budget for intergovernmental service agreements (IGSA) with the military has grown significantly this year in expectation of the newest contract. In July, City Council approved a budget increase to $10 million.

Under an IGSA, a local government is reimbursed for services provided. Fountain makes a profit on IGSAs, previously estimated by city staff to be around 10% of contract amounts.

The transit system is expected to launch in early 2026, according to agreement documents.