City To Ask 'dial-a-ride' State Aid

Ann Arbor's Transportation Authority was authorized by City Council last night to apply for state funding for a "dial-aride" experiment here. Council acceptance of the application included its willingness to particípate financially in the project. The proposal would cost the city $16,700 over a threeyear period. Capital costs for the project are estimated at $67,000 while the operating costs are broken down into three phases of operation. There would be an operating cost of $51,100 for the first phase, $73,750 for the second and $193,000 for the third. Total cost of the experiment would be $401,850, including contractual services. Service would be expanded through the second and third phases to cover more and more of the city with door-step service on a demand basis. In another Authority matter last night, the council was presented a first quarter report of revenues and expenses of the bus operations. Authority Chairman George Becalis, responding to council questions, said whether or not the authority can live within the $205,000 budget provided by council depends somewhat on whether or not an insurance problem on charter bus service can be worked out. He noted the state requires liability insurance for charter service and said the cost of this insurance may run higher than revenues from the service. Bacalis said the authority would either drop char: ter service or pay for the insurance, whichiver is most financially feasible. "It looks like we might make it within the budget," Bacalis said, noting revenues are running five per cent higher than anticipated and that operating costs are 10 per cent below projections. Revenues for the first quarter, Bacalis reported, were higher than expected for the school bus service but below expectations on the regular line buses. He noted, however, that revenues for the first 20 days of October were up 50 per cent over the first 20 days of September. (Much of this was due to revenue for charter service).