The Cape Girardeau County Commission is steering toward appointing a county transit authority to coordinate transportation services for the public.

Kelley Transportation Co., which operates the local taxi service, wants to bow out of the federally subsidized taxi coupon program in Cape Girardeau. The company has withdrawn its bid for the $374,800 contract to provide the taxi service for coupon users.

Gerald Jones, presiding county commissioner, said Kelley's departure from the program raises the opportunity for other transportation arrangements centered around a transit authority.

Jones said any new transportation system could involve Kelley.

Jones said he isn't proposing setting up a county government-operated transit service. "I have always found that private enterprise can do a better job than government," he said.

But Terrence Kelley, president of the taxi company, said efforts are being made to start a not-for-profit transportation system that would compete with his business.

"It is very disheartening to me as a tax-paying business in the city of Cape Girardeau that all the efforts are being put into starting a non-for-profit transportation system that would not help subsidize the city in any tax-paying form," Kelley said in a May 4 letter to the City Council.

He said such a move could put his taxi service out of business.

He pointed out that he entered into a five-year contract with Southeast Missouri State University in 1993 to run a shuttle bus service on campus. The university ended up securing its own grant-funded buses and a bus terminal.

"At the end of my five years, there was no new contract up for bids. The university learned what they needed to know from me and they started their own campus shuttle with government funding," Kelley wrote.

He said the taxi coupon program also appears headed in a similar direction.

A March report to the County Commission from an ad hoc transportation committee recommends creation of a transit authority.

The committee proposed a three-year plan that includes the possibility of establishing a fixed-route transportation system that would be run by the authority.

Glenda Hoffmeister, who chaired the transportation committee, said a transit authority could contract for services or directly operate a transit system.

Under the plan, a transit administrator would be hired, funding would be identified and a budget developed.

A central dispatching system would be set up.

The ad hoc committee said a central dispatching system is needed with its own telephone number so people will know how to request transportation services and report any problems with services.

A number of agencies fund transportation services in the county, said a study done last year by the Southeast Missouri Regional Planning and Economic Development Commission.

Jones said the study and the work of the county transportation committee has concluded that there is a need to coordinate the services and resources currently available.

About $1 million a year currently goes to various businesses and agencies for transportation services, Jones said.

The possible end to the taxi coupon program shows the need for establishing a transit authority, he said. "This just might kick it in gear."

Jones is awaiting recommendations from the mayors of Cape Girardeau and Jackson before moving ahead with naming a transit authority.

The five-member board would have one representative from Jackson and two each from Cape Girardeau and the county.

A survey conducted by the transportation committee found county residents were divided over the need for publicly funded transportation services. Of 718 people surveyed, only 224 said they needed publicly funded transportation services.

Outside of Kelley Transportation, Hoffmeister said she doesn't see any current agency or business in a position to provide local, subsidized taxi transportation.

Hoffmeister suggested Cape Girardeau city and county officials and representatives of the transportation committee should meet to consider their options.