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Nassau Hands Veolia a NICE Deal and Bus Riders a Raw Deal

Transit advocates and LI Bus riders have been demanding for months to see the final service contract between Nassau County and Veolia Transportation, the private bus operator selected by the county to begin providing service next year. The county refused until last night, releasing the contract two days after Election Day and the day before Veterans Day, when county offices are closed. A first vote on the contract is scheduled for Monday in the County Legislature’s Rules Committee. You can’t make this stuff up.

The county also announced that LI Bus would be ironically rebranded the “NICE” (Nassau Inter-County Express) bus system. The county will name a five-person Transit Advisory Committee that must approve fare hikes, service cuts, and the annual bus budget, but as outlined below this committee appears to have very limited powers.

The contract (available here) has several troubling pieces:

  • Veolia can cut six routes in the first 6 months and has the ability to reduce service as it sees fit without approval by the Transit Advisory Committee, as long as changes do not amount to more than a 25% service cut on any route;
  • There is no guarantee of free transfers to NYC buses and subways, or MetroCard use.  Losing free transfers would be a de facto fare increase for the 30,000 riders that link into the NYC system;
  • Fare hikes are not planned for 2012, but Veolia can propose fare increases next year if revenue projections are not coming in as anticipated;
  • If the Advisory Committee does not approve fare hikes, service cuts, or county funding increases requested by Veolia, the company appears to be able to terminate its contract. While an Annual Plan and Budget will be approved, it appears that it can be amended quarterly, putting the County on the hook for increases in “Variable Fees” (scheduled to go up by about $21 million by the ninth year of the contract alone);
  • Reasons which Veolia can demand a fee increase quarterly include: an increase in fuel costs, operating costs, or “any other circumstance reasonably requiring that [rates] be adjusted … in order to maintain for Veolia the opportunity to earn a reasonable margin for overhead and profit for Veolia.”
  • All Transit Advisory Committee members must be county residents, but do not need to be bus riders. There is no designated seat to represent riders or workers.
  • There are no clear provisions for public access to Transit Advisory Committee meetings, except those required by state law.

There is one shred of good news, which is that Able-Ride service coverage will not change for two years. But with fares and service uncertainty in the months ahead, will it remain affordable? Federal law allows paratransit systems like Able-Ride to charge fares up to double that of the regular transit fare.

The county will hold a public hearing on the new contract at the Nassau County Executive and Legislative Building at 1550 Franklin Street in Mineola at a date and time to be determined.

Image: Via Nassau County.

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Ron Z.
Ron Z.
12 years ago

Let’s see if I got this right. The deal is bad for the riding public as it WILL cut service at some point, raise fares at some point, and not guarantee transfers to subways and NYC buses.

The deal is bad for tax payers in that while it will keep County subsidies down in the first three months, they could spiral out of control because the new company can ask for a raise every three months, and if they don’t get it, can pull out and leave.

NICE!

What buffoon thought of this?

Gail
Gail
12 years ago

Come on, who do you think thought of this. That would be your County Executive, Mr.Mangano. He thinks he is going to run the county bus service without any county funds, and Veolia will take a profit. This is the biggest joke. Well hold on to your pants after 2012 when Veolia asks for a subsidy much more that the MTA wanted to run the service in the first place. He claims he is saving the taxpayers 26 million dollars. How would that be when he never paid that to start out with. Anyone who believes anything he says, is being fooled. No route cuts, no fare increases, but there will be service changes, well that is the big changes. When your bus comes every 2 hours instead of every 15 minutes or half hour. People, please don’t believe anything this man tells you. Mangano is doing this for one of his buddies.

fedup
fedup
12 years ago

Sad that we find our selves in this situation,no matter who runs it ,it will never be what it once was or should have been

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[…] LI Bus Privatization Deal Slashes Funding, Allows Huge Service Cuts (Transpo Nation, MTR) […]

louie
louie
12 years ago

mangano should be ashamed at what he is doing to nassau county residents he should step down he is causing hard workers more and more pain

louie
louie
12 years ago

mangano a person who has never wrode on a bus has some nerve going into contract with veola without letting nassau county know i think the whole deal stinks and i think mangano should be impeached for what he has done i hope lomg islanders stick together and fight mangano and make the legistlature know to vote hell no

Ron Z.
Ron Z.
12 years ago

Gale makes a good point. The County was only paying $9 Million of the $28 Million that they where supposed to. So how can you save anymore then $9. On top of that, the way the contract is constructed, NICE can ask for a NICE raise every three months. How long before they are getting paid more then $9 Million? And on top of that, they can ask for fare raises and service cuts every 3 months. If the County says no, they can pack up there carpet bags and leave. What a sham.

Ted L
Ted L
12 years ago

Looks like someone is either being paid off or will wind up with a high six figure job after leaving office.

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[…] LI Bus Privatization Deal Slashes Funding, Allows Huge Service Cuts (Transpo Nation, MTR) […]

michelle
michelle
12 years ago

how do I get a good copy of the contract that is beeing sent to the legislator for vote. Looking for a digital copy

lucille
lucille
12 years ago

anyone who believed that there would not be a substantial fare increase is an idiot. Veolia is in this for a profit. one of the pleasure of living in a mock democracy is the ability to vote, do not reelect the crooks and when they get booted to the curb if they end up working for veolia look for legal options. but soon everyone will forget this, not vote and the cycle will continue with the poor being unfairly burdened because they have no rich socialist with a guilt complex looking out for their interest. while the wealthy keep moaning that the roads must be paved perfectlyy as not to mess with the shocks of their luxury autos.

The only light is that the bus drivers will soon understanding that they no longer have a Job for life,that we are nor there to serve them, but the opposite. some may even learn that air condition in winter is a no-no. The customer service dept may start to do customer servicing. It is not enough to ease the bite of the fare increase(s) but at least we will not be the only person suffering through the changes to come.

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[…] which would prohibit the County from making any improvements to the contract or answer any of the numerous questions that have been raised about the contract. And there’s no need to rush, as the MTA recently […]

Sue
Sue
12 years ago

This is all a slap in the face to the riders. Homeowners pay a ridiculous amount in property taxes and get no rewards in the county, the only reapers of reward and gain are the politicians. They have the luxuries of driving to work and do not have to deal with the third world country bus service we have to endure daily.

Almeda
10 years ago

Short term disability insurance will help to track down an NHS dentist is tough.

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increasing car insurance premiums will go down.
There are even policies that include an appropriate mix
of newer, inland homes balanced out against insurance vs reinsurance older homes that are
further from the Florida coast. Price of the car was in flames.
Simply put, with a home owner insurance quotes for cars or vans.
A part of the hospital insurance.

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[…] things weren’t even worse for Long Island Bus riders. As dismal as things look now for bus riders and taxpayers in Nassau County,  they could have been even […]

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