AATA Approves 5-Year UM Deal

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At its Sept. 16, 2010 meeting, the Ann Arbor Transportation Authority board approved another five-year MRide agreement with the University of Michigan to provide transportation for UM faculty, students and staff.

Under the agreement, which runs from 2010-2015, UM affiliates will continue to board without paying a fare, with UM paying the AATA $1 per boarding. Early in the negotiations, the possibility of charging some cost back to riders – using the swipeable card technology of the new AATA fare boxes – was eliminated from further discussion.

When added to the per-boarding payment, $800,000-$900,000 of federal funds – received by UM and included as a part of the MRide deal – will result in an estimated $2,370,000 payment by UM to the AATA in FY 2011, the first year of the new agreement. In FY 2010, UM riders accounted for 41% of all rides for AATA. On its side, UM must still give final approval to the deal.

This brief was filed from the board meeting. A complete report on the meeting will follow: [link]