BIRMINGHAM, Ala. Although the federal charter service rule has been in place for going on four years, there remain people who apparently havent gotten the word.

Among them are members of the Birmingham City Council and an area resident who complained publicly -- in a letter published in the Birmingham News -- about the city hiring private bus operators to provide no-fare transportation for a college football game here at the end of October.

The letter suggested the shuttle service for the annual Magic City Classic was a financial loser for Birmingham, and city officials should have used the areas public transit agency instead.

The letter writers assertions touched a nerve with motorcoach operators in the state and drew a rapid rebuttal from the Alabama Motorcoach Association.

"Birmingham taxpayers did not subsidize the transportation to the event," AMA Executive Director Linda Morris responded in a letter the News also published.

She noted that while the shuttle service was free to riders, the city picked up much more revenue from other sources, including increased retail sales and taxes that produced millions of dollars for the community.

"Special events, such as the Magic City Classic, are venues that generate (tax and spending) revenue from restaurants, hotels and many local retailers," she emphasized. "Alabamas bus and motorcoach companies and their employees were proud to participate in the event, particularly in these recessionary times."

The exchange of letters came after the city council decided to provide the non-fare shuttle service for the game, and hired International Trailways of Birmingham to manage the operation.

The idea did not sit well with Birmingham resident Fred Braswell, who dashed off a letter to the newspaper questioning the city actions.

"Whey didnt the city contact with our own Metro Area Express to provide this service? Im quite sure MAX could use the money," he wrote. "I ponder how much money the city will lose from shuttle ticket sales."

Morris, in her response, pointed out that the federal charter service rule prohibits buses purchased with federal funds transit buses most notably from being used for charter service in competition with private operators.

The rule was adopted in 2008 by the Federal Transit Administration as a means of limiting taxpayer-supported public transit agencies from taking away charter work from private carriers.

While Alan Thrasher, chief operating officer of International Trailways and co-owner of Thrasher Brothers Trailways, said he could understand why someone outside of the industry like Brashwell might not understand the charter rule, he was surprised and concerned to find that some members of the Birmingham City Council didnt have a clue about it either.

"It made us really have to work much harder for the contract," he said.

Thrasher said he sold the city council on a three-year, shuttle-service contract for the football game by providing details of the charter rule that showed MAX was prohibited from handling the transportation.

He said although private carriers have been handling the shuttle service for the football game for three years, opposition arose on the council this year because he was asking for a three-year contract worth $366,000.

"That got them talking about having public transit do the shuttles instead of private companies," he said.

The council eventually approved the contract, which allowed him to bring together 14 private carriers that used 75 motorcoaches to transport more than 12,000 people to and from Legion Field where Alabama A&M squeaked past Alabama State 20-19.

Thrasher thinks operators across the U.S. should take steps to determine if their city officials are aware of the charter rule so they can avoid the problems he encountered during his negotiations with the council.

"They should get out and attend city council meetings and see if they understand the charter rule because they are the ones that control the money," he stressed.

Ken Presley, vice president and chief operating officer of the United Motorcoach Association, recommends that operators and state motorcoach associations be alert for opportunities to emphasize the rule to the public and government officials and the important role private bus operators play in their communities.

"When the situation of transit presents itself, it is a wonderful opportunity to inform the public and local community leaders that we are part of the business landscape, that we have employees and families, and we want to work and prosper just like the hotels, restaurants, retailers and other businesses," he said.

"Often, since most carriers are one-dimensional and only offer charter service, our immediate communities may not always recognize us as part of the local infrastructure."

To help operators with the task, he said UMA Motorcoach Expo 2012 in Long Beach, Calif., in early February, will include a session on operators working in and with their communities.