TCATA seeking management firm to take over Dial A Ride

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The Twin Cities Area Transportation Authority, or TCATA, is planning to issue a request for proposals on August 4 for a firm to take over management of Dial a Ride.

TCATA Deputy Director Tressa Greschak tells us the goal is to review bids in September and then to hire a firm for Dial A Ride in October. She says there could be several benefits of having a management firm run the bus service.

“To create some stability for TCATA,” Greschak said. “That’s something that really hasn’t been present over the last decade. We’re also hoping that they can bring in some new technology, hopefully that will improve service for passengers.”

For example, Greschak says a management company could have an app that customers could use to arrange for rides and methods of keeping better statistics on ridership so the service can be run more efficiently. She adds hiring a management firm could lead to lower insurance costs for Dial A Ride.

We are hoping that the management company could bring in their own insurance. There are some ways where we could potentially lease our vehicles to them, and then they would insure the vehicles. Lots of details there that we don’t quite know, but we’re hopeful that could help cut our insurance costs.”

Insurance for Dial A Ride used to be as low as $70,000 per year, and now it’s around $300,000 due to lawsuits and crashes.

Greschak says a new management firm for the service should be in place next year.

Meanwhile, TCATA Interim Director Todd Shurn has proposed forming a new authority to oversee the entire operation, one that would serve areas outside of the Twin Cities so it has more revenue potential. Any changes made at the service would have to be guided and approved by the Twin Cities Area Transportation Authority Board.