The company that has driven Scottsdale's free trolleys for three decades is suing the city over who gets to keep the job. Margaret Dunn, president of Dunn Transit, filed a lawsuit in Maricopa County Superior Court arguing that the city's process for awarding its new trolley contract to a St. Louis-based competitor was not conducted fairly.
A Lower Bid, a Lower Score
According to ABC15 Arizona, the City of Scottsdale awarded its new trolley contract to MTM Transit, which scored higher than Dunn Transit during the competitive bid process, including in categories measuring local and industry knowledge. Dunn has said the rules of procurement were not followed fairly and consistently with all the bidders, and her lawsuit alleges the bid award was arbitrary and capricious.
The financial gap between the two companies makes the outcome sting. Per the Daily Independent, Scottsdale's evaluation committee scored MTM Transit first with 84.27 points, WeDriveU second with 77.27 points, and Dunn Transit third with 76.75 points — even though Dunn's $14.1 million bid undercut both rivals, with MTM coming in at $15.6 million and WeDriveU at $16.4 million. ABC15 reports the new contract costs roughly $1.4 million more than Dunn Transit's bid.
City and Company Exhausted Other Options First
Dunn did not go straight to court. The Daily Independent's reporting notes she first appealed the decision through Scottsdale's internal administrative protest process, and the city rejected that protest before she filed suit. “I feel so strongly about it that we decided to go ahead and file suit,” Dunn told ABC15.
MTM Transit has pushed back hard, telling ABC15 the lawsuit amounts to a litany of baseless attacks, and the company has filed to intervene directly in the civil case. Court filings indicate MTM Transit is seeking to protect its contract and its business reputation. MTM Transit has declined to comment further on the litigation, and the City of Scottsdale has also declined to comment on the pending case, ABC15 reports.
Not the First Fight Between These Two
This isn't the first time Dunn Transit has taken Scottsdale to court over a trolley contract. In April 2017, the Scottsdale City Council approved an $85,000 settlement with Dunn Transit resolving a Superior Court lawsuit stemming from a 2014 procurement dispute over trolley vehicle warranties and replacement timelines, according to the Daily Independent's earlier coverage.
Dunn Transit's relationship with the city stretches back much further than that fight. Scottsdale's trolley system began in 1980 as “Molly the Trolley” before shutting down in 1990; the city revived the service in 1991 using private contractors, and Dunn Transit has held the contract continuously ever since except for a four-year gap between 2017 and 2020, per the Daily Independent.
What Riders Can Expect Next Week
The trolley itself remains a fixture of daily life in Scottsdale. ABC15 reports the fare-free service runs on fixed routes every 20 minutes, Monday through Friday, carrying seniors, students, shoppers, and commuters around the city. MTM Transit's own materials describe a network of three fixed routes served by 17 city-owned diesel and compressed natural gas buses.
MTM Transit was set to begin its initial 22-month contract on September 13, with three option terms that could extend the arrangement through June 30, 2037, according to information published by MTM Transit. The company has already been advertising locally for drivers, offering $21.50 an hour for those holding a Class A or B commercial license with a passenger endorsement, per a Monster job listing. MTM Transit also already operates Valley Metro Paratransit service in parts of the Phoenix metro area outside Phoenix, Glendale, and Peoria, according to Wikipedia.
Whether that September 13 start date holds is now up to a judge. ABC15 reports that court arguments are expected next Tuesday, when a judge will rule on whether the new contract should be paused until Dunn's legal challenge is resolved.
