ROCHESTER, N.Y. Rochester-Genesee Regional Transportation Authority, perhaps the most recalcitrant public transit agency in the U.S., has been told once again by the Federal Transit Administration to stop providing illegal school bus service.

For the second time in three months, the transit authority has been rebuffed by the FTA in its effort to win approval of a school transportation plan that would allow it to continue serving about 9,000 students in this upstate New York community.

In the latest ruling, the FTA said the newest school transportation plan cobbled together by Rochester-Genesee Regional Transportation Authority violates government rules that prohibit federally funded public transit agencies from competing for school bus services with the private sector.

"RGRTA is confusing public transportation with impermissible school bus service," FTA Regional Administrator Brigid Hynes-Cherin wrote in a sharply worded ruling.

She said RGRTAs plan to set up 240 school transportation routes for the Rochester City School District went well beyond the "minor modifications" that transit agencies are allowed to make to regular routes to serve students.

Instead, she stressed, the plan was designed to substitute for other school bus service in direct contravention of FTA requirements.

"The new routes proposed by RGRTA represent a continuation in RGRTAs apparent attempt to systematically take over school bus service for Rochester's school district to the detriment of the private school bus industry and its workers," she added.

While Hynes-Cherin said the FTA would be willing to meet with RGRTA officials to discuss possible school service that would meet federal regulations, she warned the transit agency would have to change its approach if such talks were to be successful.

"FTA expects RGRTA, once and for all, to accept its inability as a matter of law to start from the premise that it may design service exclusively for school students in competition with the private sector and then work from there to modify the service to meet FTA's requirements," she said in her ruling.

She said if the transit agency continues to design student-only service with technical modifications that give the appearance of complying with existing rules, then it "misses the point entirely."

Despite the harsh words delivered by the FTA, the transit agency and the school district have indicated they have not given up and will pursue new efforts to allow RGRTA to operate the school bus service.

The rejected plan was the second put together by RGRTA in two years, and the second to be turned down by the FTA.

The initial effort came last school year when RGRTA took over about 70 school routes that were being operated by Laidlaw Education Service. That led to complaints filed with the FTA by United Food & Commercial Workers Union Local One, which contented that the takeover cost the union about 70 driver jobs and cost Laidlaw about $6 million in revenue.

The union and Laidlaw also joined in a lawsuit against RGRTA, claiming that assertions by the transit agency that private companies were unable to perform the service were false.

In January, the FTA regional office in New York acted on the complaints and ruled that the RGRTA service was illegal because it violated federal regulations against competition with the private sector. The transit authority then sought a reconsideration of the ruling by FTA officials in Washington. In July, the FTA headquarters confirmed the decision by the regional office and ordered the RGRTA to cease and desist from operating the school bus service.

The school district, which has long supported RGRTA providing transportation for its students, then stepped in and took the issue to the U.S. District Court in Virginia, asking for a stay of the cease-and-desist order and a permanent injunction that would prevent enforcement of the order.

District Judge David Larimer denied the request in August, but issued a temporary restraining order until Oct. 1, giving RGRTA time to develop a new plan and Laidlaw time to gear up to operate the service. The injunction later was extended to Nov. 2 because the FTA had not yet ruled on the second plan submitted by the transit agency.

The FTA ruling won praise from the United Motorcoach Association, which said it was pleased that the FTA did not take a complicit role in what it called a "sham operation" by RGRTA.

"Perhaps this is yet another sign the old 'wink and a nod' that has so harmed the private bus and motorcoach operators in the past is over," said UMA Vice President Ken Presley. "It is refreshing to see the charter service rules enforced."

He added that he hopes the court considers the safety of Rochester public schools students and allows them to return to regular school bus service, as taxpayers have provided.

Presley also had some harsh words for the RGRTA.

"As for Rochester Genesee Regional Transportation Authority, I hope the citizens hold the director personally accountable. It appears to me that Rochester Genesee Regional Transportation Authority owes the federal taxpayer considerable amounts of money and may very well be over-staffed, as well as having too many buses in their inventory," he said.

RGRTA said it was puzzled by the latest FTA ruling, contending that the type of service it offered the school district has been endorsed by the federal agency for many years and is the same type of service offered by federally funded transportation systems throughout the country.

"The benefits of this partnership to the school district, community and students are significant," said Mark Aesch, CEO for RGRTA. "RTS (Regional Transit System) and RCSD provide service that both saves taxpayers money and improves attendance in city schools."

Although he would not say what the transit authority might do next, a spokeswoman for the agency said it is likely it would support a new effort to allow it to continue to operate the bus service until the end of the school year so students would have continuity with their transportation.

The school district, meanwhile, said it will be meeting with RGRTA and then head back to court to seek a further continuance of the temporary injunction so that it can continue to use RGRTA for the transportation of its students.

"We have a responsibility to our students and we need to provide service that works for them," said Rochester Interim Superintendent of Schools Dr. William C. Cala.

Laidlaw, which now operates school buses under the FirstStudent name, hailed the FTA decision and said its prepared to take over the Rochester school routes as soon as possible.

"Laidlaw continues to stand ready to assist the school district, RGRTA, and FTA in working through details of transportation requirements, so that children are transported to school safely and on time," said spokeswoman Elizabeth Valdes. "Laidlaw would like to continue providing that safe transportation for Rochester's students."