TAXI COUPON CUSTOMERS MAY SEE FEWER RIDES

Lack of competition in the taxi coupon bidding process may mean fewer rides for coupon customers.

Kelley Transportation has been the only bidder since the taxi coupon program began in the early 1980s. If Kelley's most recent bid is accepted, the city will have to pay $3.25 per coupon, a 75-cent-per-coupon increase.

The city's current program allows the elderly and handicapped to purchase up to 16 tickets a month at $1 each. The general public may purchase the same amount for $2 each.

Current net program cost is $165,740 annually. Ticket revenue, a 50 percent match in state funds and money from the Community Counseling Center for extra tickets reduces the city's cost to $80,620.

That cost will go to $115,000 under Kelley's new price increase, and the city may not be able to absorb it into the upcoming fiscal year's budget.

Two options officials are considering are reducing taxi service by 25 to 35 percent or getting a larger grant from the state.

The first would mean someone getting 16 tickets now may be allowed only 12 under the new program.

Still, City Manager Michael G. Miller encouraged councilmen to pass a resolution requesting state funding for this year. The council will discuss its options at its May 20 meeting.