Oak Ridge staff outline ETHERA contract changes including fare waiver, app and new reporting; council to review in August

City staff presented proposed changes to the Oak Ridge Transit operating contract with ETHERA at the July work session, including a plan to waive rider fares, require software-generated monthly reports, expand Saturday service and set a four-bag carry-on limit. Council members were told the contract will come before the city in August, with the current agreement expiring in September.

Kendall, a city staff member who led the presentation, said the system recorded 9,885 rides in fiscal 2025 and served “over 500 unique riders.” Kendall told council that funding for the service ran out in May and that ETHERA operated part of May and all of June without being paid while staff pursues additional state funding.

The proposed contract changes aim to increase transparency and accessibility. “We would get everything that they get,” Kendall said of a rider feedback form ETHERA has created; the city would receive the unfiltered submissions as well as the operator. Staff also asked that invoicing be paired with software-generated monthly reports so the city can independently verify ridership and on-time performance. Kendall said ETHERA uses Ecoline Software and that the system can produce on-time performance metrics and route-optimization data.

Kendall described a recently rolled-out ETHERA smartphone app that allows riders to schedule and cancel trips, pay in-app, see a driver’s position on a map and receive push notifications. Kendall said people involved in testing included the DAB chair, Linnae Nicholas, and Marion Wild Gruber, who tested screen-reader accessibility.

On service rules and accessibility, Kendall said, “All of ETHERA’s buses are wheelchair accessible with lifts.” She defined the service as curb-to-curb, explaining drivers stop at the curb and do not enter homes or carry bags to front doors for ambulatory riders; assistance for non-ambulatory riders will be offered “per ADA requirements,” Kendall said.

One of the more contested items in talks with the operator was the number of allowable grocery bags. The service previously allowed three bags; staff pushed for five and ETHERA cited seat and safety concerns. “So they’re compromised to to waives the fares permanently across the board,” Kendall said, summarizing the operator’s proposal to limit carry-on items to four grocery-size bags and to eliminate fares. Kendall described the current fare structure as "$2 per one-way trip plus $1 for an additional ride." She said waiving fares would reduce fare revenue by roughly $1,000–$2,000 per month and that the last fiscal year’s fare revenue totaled about $19,000; staff estimated waiving fares would cost about $20,000 annually.

Kendall told council that quarterly performance-evaluation meetings between city staff and ETHERA and an annual review before contract renewal are planned. She also said staff discussed performance incentives during negotiations but that “that is not something that ATHRA is allowed to do,” while noting legal counsel and ETHERA’s lawyers were still finalizing liability and other contract language.

Council members asked for a written memo and for the item to be circulated to council before formal consideration. The city manager and staff indicated they will finalize contract details and return with a recommended contract amendment; the item is scheduled for council action in August but staff said it could be pushed to September if needed.

No formal vote or contract approval occurred at the work session; staff will continue negotiations and provide council with a summary memo and draft contract language ahead of the August meeting.