SCOTTSDALE, Ariz. (KNXV) — A Scottsdale business owner who has operated the city's trolley service for three decades is suing the city after it awarded a new contract to an out-of-state competitor.
Margaret Dunn, president of Dunn Transit, lost the contract to MTM Transit, a company based in St. Louis. City records show MTM scored higher than Dunn Transit during a competitive bid process earlier this year. The new contract costs $1.4 million more than Dunn's bid.
Dunn argues the process was not conducted fairly.
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"I feel so strongly about it that we decided to go ahead and file suit," she told ABC15.
Her lawsuit, filed in Maricopa County Superior Court, alleges the bid award was "arbitrary and capricious."
She points to what she believes is one specific scoring discrepancy as an example of what she sees as an unfair process: City records show MTM scored higher than Dunn Transit in a category called "local and industry knowledge," despite Dunn having worked in Scottsdale for decades.
"We don't feel that the rules of procurement were followed fairly and consistently with all the bidders," she said.
The city of Scottsdale and MTM Transit both declined to comment on the lawsuit.
MTM has filed to intervene in the civil lawsuit, stating in a court filing that it seeks to protect its contract and its business reputation. The company in its court filing called the lawsuit "a litany of baseless attacks."
A judge is being asked to rule on whether the new contract should be paused until the legal challenge is resolved. Arguments are expected in court next Tuesday.
Scottsdale runs a free trolley service Monday through Friday every 20 minutes with fixed routes around the city.
The service is used by seniors, students, shoppers, and commuters.
