agreement shifted from a commission structure based on a percentage of total ticket sales to a flat fee structure. The new agreement established a $90,000 payment annually, set up to be paid in bi-monthly instalments of $3,750 plus applicable HST. The Greyhound amendment to change from the commission based structure to annual set instalments totalling $90,000 was approved at the October 21, 2015, meeting of the Environment, Transportation and Public Safety Standing Committee and adopted by City Council at the November 16, 2015 meeting through resolution M472-2015.
Discussion:
Transit Windsor and Greyhound have maintained an excellent working relationship through the partnership with Transit Windsor staff providing customer service and ticket sales for Greyhound travel. The COVID-19 pandemic has had a negative impact on transportation providers globally. In March 2020, Transit Windsor ceased operations and closed the Windsor International Transit Terminal. At the same time, Greyhound operations in Canada were dramatically reduced to only a couple of trips per day, with no ticket sales issued by Transit Windsor. On May 13, 2020, Greyhound ceased all operations in Canada due to the pandemic. At the time this report was written, Greyhound services had not resumed and no date had been communicated for a potential re-start of their service.
During the time Transit Windsor suspended operations due to the pandemic, Greyhound informed administration they would cease the flat fee bi-monthly payment since the agreed Greyhound service provided by Transit employees was not available during this time. When transit service was reinstated, Greyhound was in the midst of their suspension of services and therefore would continue to cease the flat fee monthly commission payments until the service was resumed.
Administration is now seeking formal approval for the payment relief of the flat fee commission revenue from Greyhound for the bi-monthly payments of $3,750 from April to December 2020.
Greyhound traditionally made payments on the 1st and 15th of each month. Effective April 1st, Greyhound’s intention was to make no further payments to date. Due to an oversight, Greyhound continued to make the 15th of the month payment through electronic fund transfer and therefore only one bi-monthly payment of $3,750 plus applicable HST each month is required to be approved for payment relief from April to December 2020.
It is unknown when Greyhound services will be re-instated. Administration has included the continued lost revenue in a 2021 COVID-19 Operating Budget issue in order to recognize this revenue impact.
Risk Analysis:
This Administration report details lost revenue from a contractual agreement.
There is no financial risk associated with approving this report since the lost revenue has been offset by the Safe Restart Transit Stream fund. Lost advertising revenue is an