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July 12, 2001

Pitt, Port Authority renegotiating contract

Port Authority of Allegheny County and Pitt officials met this month to renegotiate the contract for free rides for Pittsburgh campus I.D.-holders.

But some details need to be worked out before the current contract expires July 31, both sides said.

In a February letter, the Port Authority told University officials that it expected "an increase of 20 percent in our compensation rate from the University of Pittsburgh for the next scheduled contract year" beginning Aug. 1.

Pitt and the Port Authority signed a 5-year deal in July 1999, with the proviso that either side could ask for renegotiation of the annual fee at the end of a contract year by giving 120 days' notice.

This year the University is paying $1.9 million in exchange for year-round, county-wide free rides on Port Authority buses and light-rail vehicles for students and employees with valid Pittsburgh campus I.D. cards. Regional campus I.D.-holders are not eligible for the service, which is subsidized in part by the $55 per term safety and transportation fee that Pittsburgh campus students pay. The University pays the balance.

Under the current contract, Pitt's fees were set at $2.1 million for each of the next three years, until July 31, 2004.

A 20 percent increase would hike Pitt's cost by $420,000, from $2.1 million to $2,520,000.

The Port Authority said the fee increase request was in line with its across-the-board fare hike, which went into effect April 1. Port Authority spokesperson Bob Grove said the rising cost of fuel and a smaller-than-hoped-for state subsidy forced the transit company to raise its fares. The rate increase is the Port Authority's first in 10 years.

Both sides declined to discuss details of the current negotiations.

But Grove said the July 2 meeting between the two sides was constructive. "The meeting went very well and was cordial and amicable. No other meeting is scheduled, but all we may need at this point is a phone call from Pitt to come to an agreement."

He added that the Port Authority was confident a deal would be worked out in time for the transit company's board meeting on July 20. The board must approve any contract changes, Grove said.

Pitt spokesperson Robert Hill said, "We are still very optimistic that negotiations will be successfully concluded and that we will do so on time."

Pitt accounts for roughly 460,000 passengers a month, Grove said, for an annual total of about 5.7 million rides. The transit company's total ridership was 76.6 million in 2000.

–Peter Hart


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