Dane Gibson
Northern News Services

NNSL (Jun 30/99) - Cardinal Coach Lines has been given control of the city's transit system.

Yellowknife city councillors voted in favour of giving the Calgary-based bus company the contract to operate our public transit at a June 17 council meeting.

Councillor Blake Lyons was the only vote against the decision. He pointed out that the new contract will cost the city as much as $73,000 more a year, compared to previous years. The Cardinal contract is for five years, with a three-year extension option.

"The difference could be in excess of $500,000 (over the life of the contract). I can't support this," Lyons said.

Councillor Ben McDonald had reservations about the process leading up to the decision, especially the use of a transit consultant. The consultant fees were in excess of $30,000.

He added that the increase in transit costs won't be felt until next budget and that a gasoline tax, with GNWT support, may be possible to offset some of the increased cost.

Councillor Kevin O'Reilly said the new contract was necessary.

"I regret we have to make a change in couriers, and I regret some people will be put out of work due to this decision, but I think we're at a turning point. I think the step we're taking tonight reflects an evolution in our public transit system," O'Reilly said.

The Cardinal proposal includes both city and school bus service. The Yellowknife public school board voted June 22 to accept the Cardinal offer. It is estimated the new contract will cost the school district $200,000 less per year.

Arctic Carriers, who delivered transit services here for 10 years, may now have to close its doors and sell off its 18 buses.