Conroe City Council approved a new five-year contract with First Class Transportation to operate city bus services during its Feb. 27 meeting. The service plans to connect The Woodlands Express and Conroe Connection services to downtown Houston, according to the agenda.

The details

The agreement, valued at $2.1 million, includes an option to extend for an additional five years, according to the presentation.

By year four, a 70% reduction in commuter bus costs is expected, which is due to grant funding that will help the city purchase the buses, according to the presentation.

The buses will be compressed natural gas vehicles, which are expected to lower fuel costs and work toward the city’s sustainability goals, Deputy City Administrator Nancy Mikeska said during a Feb. 26 workshop meeting.

Diving in deeper

The contract is designed to reduce the city’s expenses over time, according to the agenda. In the first year, Conroe will cover about $142,275 in costs, but by year five, that amount is expected to drop to $41,255, according to the presentation.

According to meeting materials, the savings come from:

• Fare revenue, with bus riders contributing around $122,797 per year
• Federal grant funding
• Lower maintenance and fuel costs

Also of note

The city of Conroe’s contract will go into effect starting April 1, according to the agenda. The Woodlands Township approved its contract with First Class Transportation last September, Community Impact previously reported.