WASHINGTON D.C. A California charter operator has won its fight with a public transit system that tried to get it removed from the federal list of private carriers that must be notified when a transit agency is interested in performing charter work.

The ruling by the Federal Transit Administration, however, came too late for Silverado Stages Inc. of San Luis Obispo to handle the lucrative charter job that triggered the dispute.

Foothill Transit of Covina complained to the FTA that Silverado should be removed from the list of carriers registered with the agency because it acted in bad faith during negotiations for shuttle work for the Rose Bowl football game Jan. 1.

The ruling that cleared Silverado of any wrong doing was issued four days after the game, allowing the transit agency to provide the service.

"We lost a substantial amount of money by not being able to do the shuttle," said Jim Galusha, president of Silverado.

The dispute centered on the buses and support staff that the Pasadena Tournament of Roses Association said it needed for the shuttle. The association said it wanted 50 two-door transit-type buses that could accommodate seated and standing passengers, were wheelchair and disability accessible, and were "clean air" operated. In addition, it said at least five supervisors would be needed to manage the shuttle operation.

Galusha, who was the only private operator to respond to the notification of the charter issued by Foothill, said he could provide enough buses for the work, but he could not guarantee they would be two-door transit buses, that all them would have wheelchair or disability access, and they all would be "clean air" buses.

The association, after exchanging a series of e-mails about the request and the cost for the shuttle operation, eventually said the price proposed by Galusha was out of line with other bus companies and it would not hire the carrier.

Galusha asked for the rates that were being used to compare his price and how much the association wanted to pay for the buses, but never heard from the association again.

Foothill, in its complaint to the FTA, accused Silverado of bad-faith negotiations because it could not meet the conditions requested by the association and that it offered a rate that was not commercially reasonable. Silverado denied the claims, maintaining that the FTA regulations do not require a private motorcoach operator to meet all of the requests of a potential customer and that its rates were reasonable.

In its ruling, the FTA said Silverados actions did not constitute bad faith under the federal charter service rule and that transit agencies are not allowed to perform a charter job based strictly on the fact that a carrier could not provide all of the specialized equipment requested by the customer.

The FTA has consistently ruled that a bus, is a bus, is a bus. And that transit agencies cannot issue charter notices that specify the type of bus or buses that will be needed.

Galusha said he was pleased by the ruling and hopes it will help other carriers in similar disputes with transit agencies attempting to take away charter work from the private sector.

"Hopefully my commitment to spend the money to defend mine and other private motorcoach operator rights will help deter transit agencies from pursuing this complaint tactic in the future," he said. "But if this ruling carries any weight it is that Foothill will not be doing the job again next year."

Galusha said Silverado remains interested in the shuttle job and likely will try to get it when it comes up again.