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Committee adopts new method for charter (special service) billing; sets example rate of $123.11 per hour
Summary
The MAT Bus Coordinating Committee approved a resolution adopting a new methodology to calculate charter/special-service hourly rates, replacing prior Transdev-based billing. MAPA staff will use a formula dividing total budgeted fixed-route expenses by budgeted fixed-route revenue hours; the 2026 example rate was $123.11/hour.
The MAT Bus Coordinating Committee voted May 20 to adopt a new methodology for calculating charter or special-service billing rates, approving staff recommendation that MAPA use a systemwide cost-per-hour formula.
Cole, a MAPA transit staff member who presented the item, said the change was necessary because the system no longer uses Transdev contract billings. "Since we no longer contract our charter services through Transdev, we needed to find a new way to calculate special service billings," he said, and showed an example using the 2026 budget that produced an hourly rate of $123.11.
The methodology divides total budgeted fixed-route expenses by total budgeted fixed-route revenue hours to produce an hourly charter rate. Cole said the calculation incorporates fixed-route operating costs and fuel usage as appropriate and that staff had consulted Fargo finance during development.
Why it matters: Committee members said a clear, consistent formula will help agencies and third-party charter customers budget and compare costs across jurisdictions. Some members sought assurances the example was illustrative; Cole said the $123.11 number was based on the 2026 budget and that staff would circulate a missing explanatory slide and supporting memo after the meeting.
Discussion and vote: Members discussed whether the example reflected each jurisdiction's full city budget or fixed-route-only figures; staff clarified the example used fixed-route amounts for the jurisdiction cited. After discussion a motion to adopt the proposed methodology was made and carried in a roll-call vote with multiple yes votes recorded and no objections in the meeting transcript.
Next steps: MAPA staff are authorized to apply the new methodology to future special-service bills; staff said they would circulate the supporting calculations and any supplemental guidance to member entities.
