Even though Centre Wellington has denied an emergency grant to keep a community-based bus line on the road, councillors made it clear they are more than willing work with the group to develop a sustainable business plan.
On Dec. 16, Centre Wellington Social Justice Group chair Paul Holyoke made the pitch for a $5,000 emergency grant from the municipality.
That pitch, however, followed a report from Centre Wellington’s managing director of corporate services which recommended council decline the grant request of $5,000.
The community bus line, which began its journey on June 19, hit a road block because of financial pressures and the service was suspended in mid-December.
Holyoke contended the request falls under the emergency provision of article 6.0 “Requests for Emergency & Disaster Relief Funding” of the Township’s Grant Application Policy.
However, Snarr’s report suggested that based on information provided by Holyoke, “the service has failed due to low ridership and revenues raised being only a small portion of the cost to operate the service.”
The township can provide emergency funding for organizations which are experiencing extensive financial hardship as a result of an unforeseen short-term increase in expenditures or decrease in revenues.
“It is staff’s opinion that this is not a short-term issue, and therefore this organization does not quality for funding,” said Snarr.
Mayor Joanne Ross-Zuj was clear in her message that council and the community recognized the good work done by the Social Justice Group.
Township CAO Andy Goldie said that the recommendation was made based on current township policies. He noted the estimated service cost (to Elliott Coach Lines) is $35,000 per year to run three trips per day, three days per week.
The operation only ran from mid-June to mid-December.
Goldie said his understanding is that amount covers the cost of the driver and the gas.
Fares are $2 per trip and there were 38 stops on the route, he said.
“While the volunteers are to be congratulated for undertaking such an ambitious challenge, even in large urban centres transit are a large tax burden upon those municipalities,” Goldie said. He noted it was the staff understanding that volunteers believed fundraising, sponsorship and ticket revenues could support the operation of a community bus service.
He added Elliott Coach Lines, a private business, was willing to help support the community initiative – but had expected more of the operating costs to be recovered.
Goldie noted township staff did provide planning assistance to the group in setting up appropriate bus stop locations and installing signs – at township cost.
Now, after six months of operation, the debt to Elliott Coach Lines is $16,000.
While the bus line is to be commended for taking part to this point, “it is our understanding that they are not willing to go further into debt to provide this service,” Goldie told council.
He said in the first six months, ridership has been very low – approximately 623 rides since June 19. The revenues generated amounted to just under $900.
And according the group’s records, although it claimed to have had $250 in ticket sales, that money had yet to be transferred to Elliott Coach Lines.
“Elliott Coach Lines has borne the cost of operation since the start, and to date, they’ve received $1,200 in revenue from ticket sales.”
Goldie noted the group has indicated three not-for-profit groups had purchased a number of advance tickets.
“A community bus service is very costly to provide, which is why many small rural and urban communities of our size can not afford to provide such a service.” He understood the group was now working on a larger fundraising campaign.
However, based on information from the group, Goldie said “we have received no long-term business model to keep this service sustainable in the long term.”
As for the accessibility of the bus service, Goldie said that while the service is provided at a low cost, it is a school bus and not accessible to those with disabilities.
“And to our understanding, the service is still limited to the urban areas of Centre Wellington.”
Goldie stressed that both council and staff are aware of the need for such a service in Centre Wellington and Wellington County. He noted council receives many requests for support by non-profit groups and agencies who also wish to address needs in the community.
“Staff, at this stage, cannot recommend this funding request.”
Community need remains
Holyoke spoke to council about the group in general, and the urgent need for funds at this time. He agreed there are already groups which serve various needs of the community.
Holyoke said members decided to take the approach to alleviate situations which make living in poverty worse. One of those situations was transportation – “which is a significant issue for those living in poverty.”
It prevents people from being able to take part in the community as a whole, he said, adding bus routes were designed to meet the needs of the potential users in the community.
Holyoke stressed, “At no point was the plan to have the service operate on collected fares only.” He said such systems typically operate with government subsidies and sponsorships.
As early as March 2013, the group was made aware it was unlikely the township would provide an ongoing subsidy because of priorities of bridges and roads.
That meant the group focussed on sponsorships from local businesses.
“We thought this was a viable option since two businesses indicated that they would like stops near their places of business.”
However, he acknowledged the growth of ridership was slower than anticipated. He added there had been pledges for $6,000 as a result of a recent fundraising campaign.
“In early December, we heard from Elliott’s,” Holyoke said.
At that point the company had looked at the financial cost of drivers and fuel – and the costs incurred was about $15,000 more than they had received in fares.
“They decided they could not bear additional costs, and the last day of service would be Dec. 14.”
He said halfway through the community outreach campaign, this was unwelcome News, “though we totally understand Elliott’s perspective.”
Holyoke said the group’s hope is with the $6,000 in pledges, plus a township grant of $5,000 and a commitment to continue outreach, the provider could be convinced to continue the service.
“If the bus service does not continue, we will lose the momentum we’ve built,” Holyoke said, adding he believed it could be difficult to re-start the service. He stressed the fundraising efforts are focussed on the future – not the past.
Councillor Steven VanLeeuwen noted the group’s fundraising is focussed on the future, “but what happens to the past debt.”
Holyoke answered “we’ll work that out with Elliott’s.”
Councillor Mary Lloyd said, “the community of Centre Wellington is growing in population … and varies from the haves, to the have-nots.” She said for the older population, transportation is not always readily available.
Lloyd said the current service does not run Thursday, Friday or Saturday. While taxis are available, the cost per trip can be more than $12 each way (from Fergus to Elora).
“Living on a fixed income makes going to appointments or participating in activities a very expensive activity.” Lloyd added, “Poverty is very real in Centre Wellington.”
She believed the group needs financial support from both the community and emergency funding from the municipality to continue the service.
Ross-Zuj doubted anyone at the council table disagreed on the need for the service.
“But the issue being discussed by council is whether this falls within our grant policy. As council, we are responsible to be accountable for tax dollars,” the mayor said.
Councillor Kirk McElwain wanted to see a motion directing staff to explain to the Social Justice Group as what needs to be done to get a grant from the township.
He had no issue allowing the group to come back to council at a future date to provide a business plan.
“I think this (issue) came at us too quickly and I hate to say no,” said McElwain.
Councillor Kelly Linton said he was very excited when the service first came on line. But now, he said, “We need to go back to the drawing board because there are a lot of empty buses being driven around.”
Linton said he was more than willing to work with the group, but felt the current timing of the request was “off.”
Councillor Fred Morris found this a very awkward position.
“You run the risk of appearing hard-hearted and without compassion,” but that is not the case, Morris said.
“We do care, but we care about more than (one issue). We care about all of the township and all the people who live here.
“At the risk of being branded … an Ebenezer Scrooge by accepting this report and voting with it … I realize to say no to what is an obvious human need … is almost the equivalent saying ‘I hate my mother and I don’t like apple pie’.”
In his research on public transit, Morris said it is easy to start a project, but much harder to sustain it.
“We need a concrete plan of action, not just to start the project, but to keep it going. That is the missing piece of the puzzle which is not here tonight,” said Morris.
Councillor Walt Visser added “my concern is the project.”
He said years ago, the concept of public transportation was considered in the Fergus, Elora and Arthur area.
“There was no taste for it at the time because of the costs,” Visser said, noting public transportation is very expensive.
“I don’t deny the need, but in a rural setting, it is very difficult to maintain.”
He, too, believed there needs to be a better financial plan.
While council declined the funding request, it later agreed to work with the group to develop a sustainable business plan.
