LI Bus moving toward new mode of operating

Change is coming for the 100,000 average daily riders of Long Island Bus, with Nassau officials' announcement last week that they have chosen a private operator to take over the county-owned bus system.

Details of the contract are to be worked out over 45 days, officials said Friday. The county legislature and the Nassau Interim Finance Authority must approve the deal before County Executive Edward Mangano gives it the go-ahead.

Here are answers to some key questions surrounding the bus system's evolution.

Why won't the Metropolitan Transportation Authority continue to run LI Bus?

The MTA, which has operated LI Bus under contract for Nassau since 1973, said it needed $26 million more annually than the county was contributing in order to keep existing service levels. Mangano, saying he believed he could get a better deal from a private operator, put the bus contract up for bid.

Who is the new operator?

Veolia Transportation Inc., a company based in Lombard, Ill., just outside Chicago, that operates more than 200 transit systems in the United States and Canada. Veolia runs bus systems in cities including Phoenix and Toronto.

When does the new operator take over?

The MTA's existing contract with Nassau County ends on Dec. 31. Veolia takes over the next day -- Jan. 1, 2012.

Will I notice a difference?

Eventually. County officials have said they intend to re-brand their bus system with a new name and a new look for its fleet. They also say they plan to offer better service than the MTA and have suggested they will target cleanliness, punctuality and driver friendliness.

What happens to fares?

Veolia has committed to keeping the existing bus fare of $2.25 through 2012. Officials said any terms beyond that are subject to ongoing contract negotiations. The MTA, which raised fares in 2008, 2009 and 2010, plans to raise fares again by 7.5 percent in 2013. In 2009, fares on Veolia's bus system in Las Vegas climbed 40 percent, from $1.25 to $1.75.

Will routes stay the same?

Veolia says it will keep existing routes and service levels through 2012. After that, service cuts will only be considered as a "last resort" and will require public hearings, county officials said.

Will I still be able to use the MetroCard and get free transfers to/from MTA buses and subways?

Maybe. The terms have not been finalized, but county officials said it is possible they will reach a deal with the MTA to continue using the MetroCard and provide free transfers. Westchester's Bee-Line bus system, which is privately operated, has such an arrangement with the MTA.

What happens to LI Bus employees?

With MTA Long Island Bus ceasing to exist, all of its employees will have to find new jobs. The MTA "will consider some of the displaced employees for other job openings within the authority." Veolia officials said the company expects to hire many of its drivers and mechanics from the pool of former LI Bus employees, although under different terms and wages.

How will the system be funded?

County and Veolia officials say the proposed $106-million budget could be achieved through fare revenue and state and federal aid. Nassau plans to contribute between $2.5 million and $4 million. Veolia says it is confident it will be able to attract new riders, bringing in more fare revenue.

What are the potential benefits of a public-private partnership?

Officials with the county and Veolia say they expect to find significant savings, in part because many of LI Bus' existing administrative functions -- such as having its own payroll department -- will be handled in Veolia's central office.

What are the potential disadvantages?

Opponents believe that because the county does not intend to put much money toward the system, Veolia may have to significantly increase fares and/or cut service in future years in order to make a profit.