The Authority as Executive Entity
Form, legal basis and functions
On the assumption that the operator is selected after a tendering process, the authority must have the power to enter into binding agreements on behalf of the city government and ideally should have the authority to receive and disburse funds.

If the areas tendered involve more than one jurisdiction then the make up of the authority should reflect this fact — especially if the bus service is to be subsidized and if funds are sought from different jurisdictions.

The authority can be part of one department of the city government, a standing committee drawn from several departments or a formal authority with representation from a number of neighboring jurisdictions if appropriate.

Since the operator is a private company it’s naturally quite separate from the authority. The responsibilities of the operator and the authority will also be separate and will vary from city to city. But these responsibilities should be clearly set out in writing as an integral part of the contract between the two parties.

See also
Institutional requirements
Staffing and expertise