1. Struggles and Successes of Private Transit in America
(RCL logo)

2. Early Days of RCL
Rochester had been without bus service for several months
Chamber of Commerce was looking for new operator to step in
Businessman George Holter inquired and was encouraged to start service
Service began August 1, 1966

3. Rochester City Lines founder George Holter,
with one of his 1956 General Motors transit buses

5. Timeline of Events 1975: Small subsidy for seniors & disabled
1976: Transportation Improvement Plan
Recommends “continued private ownership and operation of transit system”
1977: subsidy expanded to all riders
1981: UMTA capital grant buys 11 buses
RCL contributes local match

6. George Holter at the General Motors factory with the 1981 buses

7. Timeline of Events
1986: Dan Holter recognized as MPTA transit professional of the year
2003: RCL recognized as MPTA Transit System of the Year
2010: FTA Triennial Review

8. 2010 FTA Triennial Review
FTA officials question City staff why transit funds in Rochester had been going to one operator (RCL) with no competitive bidding.

9. The City Responds
Option A (path not chosen)
“RCL owns the transit system. We have a pass-through subsidy agreement, not a contract for purchase of services. Why should we put out for bid what we don’t own?”
Option B (path chosen)
City begins RFP process to attract bidders to take over the system RCL built from nothing.

10. RCL files suit against City
Began court action in January 2012
Sought injunction to stop RFP bid process (this motion was denied)
City seeks bidders to operate RCL’s routes and schedules, and raid RCL of employees recruited, hired and trained by the company.

15. U.S.C. 5323(a)
(1) Financial assistance provided under this chapter to a State or a local governmental authority may be used...
to operate a public transportation facility or equipment in competition with, or in addition to, transportation service provided by an existing public transportation company, only if—
(C) just compensation under State or local law will be paid to the company for its franchise or property.

16. RCL Legal Update Case is currently before the MN Supreme Court
“Friend of the Court” briefs filed by:
United Motorcoach Association
American Bus Association
Minnesota Association of General Contractors

17. ...Struggles
and successes…

18. System map of RCL commuter service area.
Each red “Flying R” represents a stop along a route

19. Commuter Division Serves 40 communities in 10 counties
Peak hour service
100%+ farebox recovery rate
Routes operate based on profit and loss
True partnership with Mayo Clinic

20. Charter Division Clients Include:
Mayo Clinic
IBM
Amtrak
Rochester School District (ISD 535)
University of Minnesota
Rochester Community & Technical College
Churches
Civic Groups and more

21. Member Company

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