ATLANTA The southeast regional administrator for the Federal Transit Agency has told a private Pensacola, Fla., bus operator, Beach Boy Trolley, that its charter rules complaint against the Pensacola transit agency has merit.

Thomas E. McKean, president of Beach Boy Trolley, filed the complaint against Escambia County Area Transit in August, alleging about a half-dozen major charter rules violations by the transit agency.

In an interview in May, McKean told how his business was being damaged by the transit agency and how he was trying to scrape up enough money to hire an attorney to file a formal complaint with the FTA. (See May 15 issue of Bus & Motorcoach News.)

In his complaint to the FTA, McKean exposes a sham bus operator that Escambia Transit, known locally as ECAT, set up to do charter work for the county administrator's office and the Pensacola Downtown Improvement Board.

Exhibits attached to the complaint show that the "sham operator" is not legally engaged in the transportation business and apparently accommodates several business friends by charting ECAT trolley buses at cut-rate prices.

The complaint makes a compelling case.

Dr. Yvette G. Taylor, region four administrator for the FTA, took a look at the complaint and quickly fired off a letter to McKean, saying it contains grounds on which relief may be granted, and under FTA procedures she advised McKean to try to conciliate the issue with ECAT.

That may be problematic because, as McKean's complaint makes clear, the transit agency has ignored evidence "of illegal certification statements" made by the sham operator, and failed to do even rudimentary checking of the sham operator.

McKean estimates his business has lost more than $60,000 worth of charter work because of the cozy relationship between ECAT and the sham operator.

In his complaint, McKean asked Taylor to impose the maximum penalties and fines that can be levied against ECAT, and it demands a full accounting of all charters performed by the sham operator since October of last year and all upcoming charters for future dates.

McKean also made clear in the documents filed with Taylor's office that the episode with the sham operator is not the only charter rules violations by ECAT.

In May, McKean told Bus & Motorcoach News that ECAT also set up temporary routes for annual events, and supplied charter service to nonprofit and government organizations.

In the past, McKean, who has been in the charter business for about 20 years, and ECAT have in some cases been able to work out their differences, but during the past year there has been an increase in incidents that have gone unresolved and have cost him charter business.