Outside vendor to take over operations at Dial-A-Ride in 2026

BERRIEN COUNTY, Ind. -- Dial-A-Ride in Benton Harbor is on track to outsource a new vendor to take over operations in 2026.

The public busing company is in a deficit as they face rising insurance costs, lack of funding, and hurdles to expand their routes.

"We really want to try to be in a position to provide the residents of Berrien County and urbanized areas of residents in Berrien County the best transportation possible," says Todd Shurn, Interim Executive Director of the Twin Cities Area Transportation Authority.

A new service provider will have the keys to the Dial-A-Ride base in Benton Harbor in 2026 and fully take over operations; they're also looking to form a new authority to help secure stable funding in the future.

"They'll be a company that comes in and they take over operations," explains Shurn. "So, they'll take over maintenance, they'll take over managing the drivers, they'll take over routing assignments, everything."

The new vendor will also take over insurance, which is where Dial-A-Ride is drowning in costs.

Shurn says they pay over $300,000 a year for insurance; they used to pay only $75,000.

That skyrocketed rate is the result of a series of accidents even if another driver was technically at fault.

That was the case of an accident involving a Dial-A-Ride bus back in February of this year, when a truck slammed into the bus as it was going through a green light.

"Because Michigan is 'No Fault', when situations like that occur where a vehicle is damaged by another driver who fails to yield to a traffic signal and damages the vehicle and injures passengers on the vehicle, we have no insurance recourse," Shurn says.

Another funding shortfall is the lack of a formed authority that includes neighboring municipalities who also use the service.

Right now, Benton Harbor is the only municipality that contributes to Dial-A-Ride's funding through a millage.

Having a reformed authority, Shurn says, could help expand their reach in routes.

New Buffalo is one town they are looking to expand their coverage to.

"It is a part of the urbanized area in which we are responsible to serve, but because of our current level of funding we are not able to offer service at this point in time," says Shurn.

Among the onslaught of improvements they're looking forward to with a new vendor, rider experience is at the top.

That includes updated payment methods and an easier way to track buses, like through an app.

"On January 2nd, it should be kind of a celebration because they're getting a higher level of service than they've had at this point," Shurn assures.

In October, the board will have a good idea of what company will be stepping in to take over in January.

As far as the authority, that'll include having millage proposals on the election ballots of neighboring municipalities.

Shurn says their millage expires in 2027.