MTM Transit Took Over Scottsdale Trolley Operations
A long-time operator has sued the city following the selection of a new contractor for the transit program.
Updated on Sept. 19, 2026 in Law
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MTM Transit began operating the Scottsdale weekday trolley program on September 14, 2026, after being awarded a two-year service contract by the city. The transition follows a contentious bidding process that saw the city reject a lower bid from a longtime incumbent provider.
Why it matters
The change in operators is the subject of a legal challenge in Maricopa County Superior Court, where the former operator claims the city violated its own purchasing policies. The city maintains the decision was based on a reasoned evaluation of competitive proposals.
The city awarded a two-year contract to MTM Transit for a program valued at approximately $15.7 million over five years. Dunn Transit, which previously managed the trolley routes for over 30 years, had submitted a bid $1.4 million lower than the winner.
The players
MTM Transit
This private transportation company was selected by the city to take over the management of the local trolley program.
Dunn Transit
This company previously managed the trolley program for over 30 years before being displaced by the current contract award.
Frank Moskowitz
He is the judge presiding over the lawsuit in Maricopa County Superior Court who denied requests to halt the new transit deal.
The details
An evaluation committee ranked MTM Transit first and Dunn Transit third based on criteria including price, local knowledge, staff qualifications, and operation plans. While Judge Frank Moskowitz refused to halt the deal or grant a temporary contract extension, the lawsuit brought by Dunn Transit remains active.
Timeline
Dunn Transit began managing the city's trolley operations in 1991.
The city invited transit operators to compete for the new service contract in February 2026.
The city officially awarded the new service contract to MTM Transit in May 2026.
Dunn Transit filed a formal lawsuit against the city in July 2026.
MTM Transit officially began running the trolley program on September 14, 2026.
Political Context
The current lawsuit follows a pattern of legal challenges set by similar procurement disputes in the region. This case follows the established precedents for how the Maricopa County Superior Court civil procurement litigation standards are applied to municipal contract disputes.
Residents should expect the trolley program to continue under MTM Transit while the legal proceedings move through the court system. The city's decision to shift contractors does not change the existing service routes, but the ongoing litigation could potentially impact future service procurement.
The takeaway
Municipal contract awards often involve a complex balance between cost savings and non-monetary evaluation criteria. Residents often rely on these long-term services, making the legal stability of these transit programs a significant point of local public interest.
Further reading
For additional context on local municipal proceedings, visit the Law section.
Source note: This article includes information reported by AZ Central.
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