NEW YORK CITY - The seven private bus companies that provide daily commuter service to the distant corners of New York City were hit by a 60-foot artic late last month.
The blow, though not totally unexpected, came when it was announced that the New York City Metropolitan Transportation Authority is taking over management of the services delivered by the seven companies.
Executives from several of the companies complained to news outlets that they had been given no notice of the takeover and indicated the road leading to the transfer on July 1, may be littered with potholes and roadblocks.
The city has been trying for nearly 20 years to sever its relationship with the private bus operators that provide service to 400,000 riders daily in Queens, Brooklyn and the Bronx.
During most of the past year, the city has been trying to convince the MTA to takeover the operation but the MTA balked over the issue of money and other factors.
The administration of Mayor Michael Bloomberg wanted the MTA to assume the service at no cost to the city. That would have saved the city almost $150 million in annual subsidies. The MTA rejected that idea.
Under the deal announced by Bloomberg and New York Gov. George Pataki, the city will pay the MTA $150 million to keep the buses operating.
The seven companies impacted by the deal are: Command Bus Co., Green Bus Lines, Jamaica Buses, Queens Surface Corp., Liberty Lines Express, New York Bus Service and Triboro Coach.
The relationship between the companies and the city is complex and difficult. The city owns the 1,300 buses operated by the companies and two of the depots from which buses operate. The companies operate the buses under franchise agreements with the city and own the other depots used to store and maintain the buses.
Under the deal between the MTA and the city, MTA will lease the buses and the city-owned depots from the city. In addition, the MTA will spend $322.5 million to replace old buses and make other capital improvements.
Some of the private operators reportedly will try to stymie the takeover by refusing to sell their depots to the MTA, which needs them to operate the buses. "They are not for sale and they are not for lease," Jerry Cooper, chairman of a coalition of four of the seven bus companies, was quoted as saying.
A major factor driving the city to get out of the bus business has been the political turmoil created when drivers at the seven companies occasionally strike. Two years ago, Queens' drivers went on strike for a week, affecting more than 110,000 riders each day.
As one official pointed out: For $150 million, the same amount the city currently is spending for bus subsidies, the Bloomberg Administration gets rid of the bus contracts and a major political headache.
By coming under MTA jurisdiction, the bus drivers will be subject to state laws that prohibit them from striking.
It is unclear what will become of the 400 nonunion employees of the seven companies. They reportedly will not find automatic employment with the MTA once it takes over the service.
The takeover deal also includes a fare increase for riders. The fare goes to $2 from $1.50, but riders will be able to transfer free to other buses or subways. Currently, they pay a 50-cent transfer fee. Other MTA riders pay a basic $2 fare.