WASHINGTON -- In two disputes involving public transit agencies providing charter bus service, the Federal Transit Administration has ruled in favor of the private bus operators who filed complaints.

In one of the rulings, the FTA said the private operator suffered financial losses when the transit authority tried to circumvent the federal charter rule that went into effect April 30.

The FTA issued "cease-and-desist" orders for Louisville, Ky., and Clemson, S.C., requiring the transit authorities there to halt charter services.

In both cases, the local transit authorities took on contracts that should have been negotiated with private operators. In one case, the operator had to take pictures of a transit authority bus in action to refute claims by the transit authority that it wasnt running an illegal charter operation.

"We are delighted we were able to acquire the necessary evidence, and with the help of (the United Motorcoach Association), bring the illegal operations of Clemson Area Transit to light," said Jean Cauley, president of Jean's Bus Service of Greenville, S.C.

"We are pleased the FTA has ruled that the service is in violation of the charter service rule and CAT can no longer provide it. It is important for charter operators to be alert and not let these types of services by transits slide."

Jeans Bus Service requested an advisory opinion from the FTA when it lost a parking lot shuttle contract with Foothills YMCA to Clemson Area Transit.

After entering into the contract in mid-August, the YMCA backed out a week later and told Jeans it was going to use Clemson Area Transit.

Jeans estimates it lost more than $13,000.

The transit authority denied having a contract with Foothills, and claimed that people could board the buses even if they werent at the parking lot.

Shuttles from the remote parking lot were being operated for football fans going to and from Clemson University stadium. The transit authority told the FTA it did not have any contact with the YMCA and was providing the service under a "subscription agreement" with Clemson University.

Labeling the agreement "subscription service" was a way to try to get around the charter rule; it meant the university paid a bulk sum in exchange for shuttle service, although that is not the FTAs definition of subscription service.

The FTAs take was that subscription service can be an extension of a regular route, but regular fares must be charged and anyone should be able to board. This was not the case for the YMCA shuttle. While the transit authority denied having a contract with Foothills, there was clear evidence that there was shuttle service from the YMCA parking lot.

Jeans Bus Service provided a photo that clearly showed a Clemson Area Transit bus with a message board reading "YMCA Shuttle."

The FTA ruled that the transit authoritys definition of "subscription service" appeared to be just another name for charter service. The FTA wrote: "It is also clear that Jeans Bus Service suffered an economic loss as a result of this service."

In Louisville, John Miller, president of Miller Transportation, told the FTA he stood to lose approximately $500,000 in business because of a $445,000 contract between the University of Louisville and the Transit Authority of River City.

In the Louisville situation, the university established the routes and schedule. The service was not interconnected with the larger transit authority route system.

Said the FTA in its ruling: "It is charter service because the shuttle is provided at the request of a third party for the exclusive use of a bus or van at a negotiated price." The ruling said it was "appropriate to issue a cease-and-desist order in this case.

"Miller demonstrated by a preponderance of the evidence that it is more likely than not that TARC is providing unauthorized charter service to the U of L campus," the FTA said.

"In both of these instances the private operator used a new tool available under the revised charter service rule," says Ken Presley, UMA vice president of industry relations.

"The rule provides for the FTA to issue an advisory opinion/cease and desist order which is less formal than an actual complaint and is intended to be a little quicker. We are proud of these operators for demonstrating courage and taking the initiative to halt the intrusion of transits into charter service. Every favorable decision is a win for our industry," said Presley.