Ozark Regional Transit Faces Noncompete Clause

Authority’s Board Approves 2014 Budget

SPRINGDALE — Ozark Regional Transit’s board hit a roadblock Thursday when officials learned their executive director has a noncompete clause that could prevent him from moving from organization's management firm.

Board members voted in November to hire Joel Gardner as their executive director with a start date of Jan. 1. He currently works for First Transit, the company contracted with Ozark Regional Transit to manage its business and services. The transit authority will no longer contract with First Transit after the new year, but will manage itself internally.

At A Glance

Money Committed By Cities, Counties

• Washington County: $122,970

• Benton County: $15,000

• Carroll County: $7,500

• Madison County: $0

• Fayetteville: $300,000

• Springdale: $248,646

• Rogers: $199,367

• Bentonville: $125,757

Source: Ozark Regional Transit

Gardner signed the contact with the noncompete clause in 2008, before he started working with Ozark Regional Transit. A contract between Ozark Regional Transit and First Transit states any noncompete clauses involving First Transit employees working with the authority aren't valid.

The next step for the authority is to send a letter and a copy of the second contract to First Transit, said Tom Kieklak, attorney for Ozark Regional Transit. He said his goal is to avoid litigation if possible, because it’s usually expensive.

A message left for Rick Dunning, First Transit regional vice president and Gardner’s direct supervisor, wasn't returned Thursday.

The board also approved the 2014 calendar year budget. Officials at the authority recently changed their budget schedule from a fiscal year to a calendar year.

Officials only considered money already committed to the authority by counties and cities, Gardner said. He said he may have to present a modified budget if more cities decide to commit money.

“The budget was based off of what we know,” he said.

Officials also budgeted conservatively on fuel costs, Gardner said. They calculated costs as 35 to 40 cents above the current price of fuel in case prices go up during 2014.

Don Marr, a board member representing Fayetteville, said he likes the budget was created in a conservative way. Being conservative allows the authority to have a cushion when it comes to money. He said it also helps him feel less anxious about the budget.

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