Council green-lights study of rental space for expanding transit fleet; staff to seek lease and resolution

Casey Kanner, the city transportation director, told the Sydney City Council on Jan. 28 that the city's transit program is expanding and requested permission to pursue leasing additional indoor space to park and service new buses.

Kanner said three new buses are arriving (one already in hand, two expected soon) and that growth in ridership has increased vehicle and driver needs. He summarized ridership growth to the council: about 12,000 boardings in one earlier year, rising to roughly 16,000, and near 26,000 in the most recent reporting year. He also said the city's operating cost per revenue hour is below state and national averages and that the transit program expects further increases with school service and Saturday operations.

Kanner presented two local buildings that could meet fleet needs and said the incremental rental cost would be largely reimbursed by state and federal funds at a 90% rate for rental. He said one option quoted $0.63 per square foot; after the 90% reimbursement the city's net would be about 6.3 cents per square foot. Kanner said staff will return with a lease resolution once the state/Federal Transit Administration (FTA) steps are complete.

Councilmember Kirkman moved to consider pursuing the rental; the motion was seconded and passed on roll call. The council recorded that a resolution and lease agreement would be brought back later for formal approval. Kanner said FTA funding for a permanent facility would be at a lower reimbursement rate (80% for building purchase/expansion under future planning) and that the city is preparing a 5-year transit development plan that may include a long-term facility site.

The action at this meeting was authorization for staff to pursue and report back: no lease was executed at this session.