KENORA – At the next regular council meeting, city councillors will be presented with a report that advises the council to extend the contract with First Student and Transit Canada to continue their operation of the conventional transit system.
According to Heather Pihulak, Director of Corporate Services, “we must bring our legally binding contracts to Council in an open meeting, and that simply is the reason for the report.”
The report states the one-year contract extension will allow time for a transit feasibility study to determine the best way to utilize the transit system after years of declining ridership.
The feasibility study will explore ride-sharing, on-demand services, and mobility as service options, as well as, determine a service plan, estimated capital, and operating costs.
However, the feasibility study will not be conducted until 2023 with a report available for council with recommendations and a decision made for the service in 2024.
With the city’s contract with First Student/Transit Canada set to expire on Dec 31, council will need to set a by-law to extend the contract.
In 2017, the city entered into a five-year agreement with First Student/Transit Canada to operate the transit service. Under this agreement, the contractor provides all maintenance, storage facilities, equipment, and staff including bus drivers, dispatchers, mechanics, supervision, clerical staff, and management required to carry out the service.
Pihulak said that over the past year, interruption of service has been caused by a worker shortage and the lack of Class CZ drivers available to operate the service.
The city collects receives all revenues collected from passenger revenue, advertising, contract services, and coin boxes relating to the operation of the transit service.
The city’s 2022 budget for the operation of the transit is $341,000 with budgeted revenue at $82,000 with current revenues at $48,000. The report states that the 2023 extension agreement includes a 6.5 per cent increase for the operation.
The report also states that there is minimal risk to the city if council decides to extend the transit contract one more year while the feasibility study is being conducted.
However, the report notes that the risk involved if council doesn’t decide to renew the contract there will be a gap in transportation service available until a new solution is found.
