City must hire the nonprofit bus management contractor

(a) The department shall: (1) Retain the private, nonprofit corporation that was formed at the request of the department pursuant to ordinance, and which served as the bus management services contractor since January 1, 1993; and (2) Enter into a transit management services contract with such private, nonprofit corporation. To fulfill the city’s requirements, the department shall expand the obligations and responsibilities of the private, nonprofit corporation in accordance with this section. (b) As a condition of the transit management services contract, the private, nonprofit corporation shall provide in its articles of incorporation that: (1) The purpose of the corporation is to manage, operate, and maintain the city bus system. The purpose of the corporation may include management, operation, and maintenance of the special transit service and other transit-related services on behalf of and for the city; (2) The election of directors of the corporation will be subject to the approval of the department, which approval will not be unreasonably withheld; (3) The department may remove any director of the corporation when the department determines that the removal is required to fulfill the best interests of the city bus system or special transit service; and (4) The corporation shall conform with applicable ordinances. (c) From April 1, 1997, the private, nonprofit corporation is the transit management services contractor, and may be deemed the special transit service contractor for the purposes of this chapter. (d) This section is not to be construed as precluding the department from contracting with others to provide bus and special transit services to supplement the city bus and special transit systems.