NIFA OKs Veolia bus contract

Nassau County's plan to privatize its bus system cleared a final hurdle Thursday when the independent board overseeing county finances approved the contract with Veolia Transportation.

The Nassau Interim Finance Authority voted 5-0 in favor of the $106-million contract hiring Veolia, of Lombard, Ill., to take over the county bus system, which has been operated by the Metropolitan Transportation Authority since 1973.

NIFA member George Marlin said that, with the MTA set to stop running buses on Jan. 1, the board had little choice but to approve the deal, even if it did so reluctantly.

"My prediction is that a year from now, we're going to look back and say this contract was a disaster," said Marlin, who questioned Veolia's ability to run the system with just a $2.6-million subsidy from Nassau and without resorting to big fare hikes and deep service cuts.

"We held our nose and approved this contract because it's the last minute and we cannot permit there to be no bus service on January 1st."

County Executive Edward Mangano has said he believes a private company can, at a lower cost, do a better job running the system, which will be renamed the Nassau Inter-County Express, or NICE.

Brian Nevin, a spokesman for Mangano, dismissed Marlin's remarks as "outlandish."

Incoming NICE bus chief executive Michael Setzer said the contract between Veolia and Nassau "creates a strong framework for managing the county's bus system in a way that is efficient and fiscally responsible, yet meets the vital transportation needs of riders."

Now that the county legislature and NIFA have approved the deal, Veolia is clear to begin running buses in eight days -- although it remains up in the air who will be driving the vehicles.

Veolia resumed negotiations Thursday with Transport Workers Union Local 252 -- the labor organization that represents about 800 LI Bus drivers and mechanics, most of whom are expected to be hired by Veolia.

TWU officials have said that, without a contract, they cannot guarantee that union workers will be available Jan. 1.

One other major milestone in the transition from MTA to Veolia is expected to be reached Friday when the last of the county buses undergo safety inspections by the state Department of Transportation.

MTA spokesman Kevin Ortiz said that as of Thursday, 293 of the county's 296 buses had passed inspections, which are required for the privatization.