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RFD- 3194 Business Items   Item #   10. b.    
Regular Council Meeting Agenda
Meeting Date: 12/11/2017  
Title:    2018 Transit Service Agreement- Levasseur
Department: Planning & Infrastructure  
Strategic Vision Element: Where People Choose to Live - A dynamic city with an exceptional quality of life Related Goal: Spruce Grove is an easy and convenient City to get around in, with a high degree of ease of mobility for transportation, walkability and connectivity.

Request for Decision Summary
The 2018 Transit Service Agreement between the City of Edmonton – Edmonton Transit System, Parkland County and The City of Spruce Grove is presented for approval. The Service Agreements covers two parts – The contracted service including buses from ETS and the contracted services for Spruce Grove buses.
Both aspects of the contract provision of service – driver, maintenance, fuel storage, Insurance and administrative support. The ETS provided buses include an all-included price including depreciation for their buses. The Spruce Grove buses are direct billed for each aspect of the service, such as driver, storage, maintenance, etc. Parkland County is a signatory to this agreement because of the service provided into Acheson. Parkland County and the City of Spruce Grove have a separate agreement for the length of the pilot program which is currently scheduled to end in April of 2018.
Financial charges for service for 2018 have increased approximately 7% and are reflective of their collective agreements, estimated cost of fuel, and carbon tax. Total estimated cost for transit service contract based upon services levels as of December 31 for 2018 is $1,586,734.

Proposed Motion
That the City of Spruce Grove enters into an agreement with the City of Edmonton and Parkland County to supply commuter service, transit bus maintenance services and storage for buses owned by the City of Spruce Grove for the period January 1, 2018 to December 31, 2018.
The City of Spruce Grove has contracted transit service from the City of Edmonton Transit System (ETS) for over 10 years. In most of that period, the service was fully inclusive – provision of buses, drivers, maintenance, fuel, insurance, registration and administrative support. In late 2015 and early 2016 the City of Spruce Grove acquired six (6) commuter class transit buses. This was due to the fact that ETS had indicated that any future growth of bus service would need to be funded by buses purchased by the City of Spruce Grove.

In 2014 in anticipation of capacity issues for the City of Spruce Grove Transit, a comprehensive business plan was developed as part of the Provincial Green Trip Grant application. The plan included the following:
  • 2016/2017 Purchase of six (6) Commuter Class Transit Buses
  • 2016 Park and Ride Study
  • 2018 Design – Park & Ride and Local Bus storage building
  • 2019/2020 Construction of Park & Ride Facility
  • 2019/2020 Construction of a Bus Storage Building (Local Service Buses)
  • 2019 Purchase of three buses for local service*
  • 2020 Purchase of two buses for local service
*An additional bus was added for 2019 with Federal PTIF Funding.
Spruce Grove was awarded $7.3 million in grant funding based upon an initial
66.6% provincial funding agreement.
A part of the same plan, previous transit plans and subsequent transit surveys, a number of service delivery changes were planned for the same period. The first was the introduction of route 562 with service to West Edmonton Mall and South Campus LRT station. This service started in February 2017 and featured the new Spruce Grove Buses. In fall 2017, due to significant increase transit ridership, three additional trips were added to route 560.
Current plans are to increase daytime service with 90 minute service
for route 562 (West Edmonton Mall and South Campus) starting in September
2018, evening service in September 2019, and weekend service for 2020. Local service is proposed to start in 2019 and be expanded in 2020.
Under the agreement with Edmonton Transit we have an agreement that has a total per day cost. This covers the ETS buses. The single cost includes, the driver, maintenance, depreciation, fuel, insurance, registration, and administration. Under a separate provision, that covers use of Spruce Grove buses, the coverage is the same except for depreciation and that we are direct charged for the actual fuel consumed, the maintenance and inspections performed, supplies and repairs, insurance, registration, bus cleaning and storage, the bus driver for the hours assigned for driving on behalf of Spruce Grove, and administration for support.
Bus storage of the Spruce Grove buses and ETS buses supporting Spruce Grove is out of the ETS Mitchell Garage and routine servicing will be performed at that location. Major maintenance will be conducted at the City of Edmonton Fleet Services – Ellerslie Facility which is dedicated to major bus repairs and body work. At 500,000 kilometers or about 8 to 10 years this facility will do a mid-life refurbish of the drive-train and body work. This major maintenance has been included in the long-term budget.
 Bus cleaning follows the same service standards that has been established for Edmonton’s transit fleet. Spruce Grove will have access to bus advertising revenue and will set up a contract next summer that will include bus advertising. The intent for the first two years is to keep the outside of the buses free of transit advertising. This will expire at the end of 2018.
The contract also stipulates a number of conditions that we must support related to changes of service, alterations of routes, requests for ETS buses, establishing new bus stops and terminating services with ETS. Most relate to the amount of advance notice required for each of the provisions. Although ETS has been very gracious in meeting our needs, they will be more firm on changes that require additional drivers to be in their sign up dates (which is about 5 times per year) and up to 6 months on route changes.
Transit boardings
In 2016 there were 90,371 boardings on Spruce Grove Transit. For 2017 at the end of October total boardings for all routes were 86,409. For each month in 2017 the transit system growth has been from 6% in July to 41% in both September and October over 2016. This increase can be attributed to the Spruce Grove joining the Upass program. Student use in October was 42% of total ridership.
Two alternatives are possible for the City of Spruce Grove to continue to offer transit services to the public. Contract service delivery and equipment maintenance to a private transit contractor or take over operations and maintenance within the City of Spruce Grove's operation. Both options would not be possible for the start of service in January 2018. The current relationship and services provided by ETS are very satisfactory when considering the full range of requirements for transit. In addition by continuing this relationship we maintain our support of the broader regional transit model that is being considered by the Edmonton Metropolitan Region Board.
The transit contract is negotiated between the City of Spruce Grove and Parkland County through an on-going dialogue. Service changes and changes to service are based upon plans and surveys that engage with both on-board riders and residents of the City of Spruce Grove and the Region. 
There is no requirement for specific communication related to renewal of this contract. Specific changes, such as route changes, fare changes and schedule changes are communicated as required.
The transit contract affects residents within the City of Spruce Grove and business owners in the Acheson Industrial area of Parkland County. As of the end of October ridership was up 17%.

Fiscal Impact
Financial Implications:
Based upon the new 2018 contract the driver and support costs for ETS services have increased on average 4.2%. The maintenance portion of the contract reflects about a 7% increase over the 2017 with significant increases in insurance costs and about 4 to 5% cost increases in maintenance personnel. Fuel costs are not factored into the contract price but the carbon levy is set to increase by 2.68 cents per litre on January 1.
Based upon the current level of service, the total cost for 2018 will be $1,586,734 under this contract. Additional service changes planned within the Corporate plan are not included in this cost estimate. Bus maintenance costs, fuel, repairs, tires, electronic systems maintenance, storage, insurance and registration costs are direct charged from ETS monthly. Since the introduction of service our total Maintenance costs have averaged about $35,000 per month for the 6 buses we own.
Although there is no way to predict if maintenance costs will change significantly as accidents may happen, and mechanical issues may arise – however we do know that fuel costs will increase. ETS mechanics costs will increase based upon union negotiated contracts. For 2018 we estimated these costs will increase about 4.5% and are included in the overall total estimate.
Based upon the corporate plan an additional 25 hours of service for 90 minute mid-day service is planned for Route 562. Many factors may influence implementation of additional service hours in 2018. We are planning to examine the viability of a summer schedule with reduced service in the June to August Period. We also may want to consider mid-day service for route 560 instead of route 562 or in addition to 562. The regional transit plan and the work of the Inter Municipal Collaboration Committee may also influence our future service changes.
No file(s) attached.

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