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April 22, 2004
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MTA To Take Over Private Brooklyn Bus Lines This Summer



Mayor Michael Bloomberg, Governor George Pataki and Metropolitan Transportation Authority (MTA) Chairman Peter Kalikow announced on Monday that the operation of seven private bus lines in Brooklyn, Queens and the Bronx will be transferred to the MTA by July 1.

The MTA will assume all responsibility for the operation of the private lines. New York City will subsidize the MTA by financing the costs of operating the service beyond the revenue generated by State subsidies, fares and advertising.

The transfer will ensure that the bus service is fully integrated with the transit service currently provided by the MTA and will result in a higher quality service and more efficient operations.

"The 390,000 residents of Co-op City, Canarsie, Middle Village, Rego Park and Forest Hills and the other neighborhoods that use these buses deserve improved service and greater reliability," said the mayor. "For years they have stoically tolerated antiquated buses, and substandard and unreliable service. Nearly a third of the bus fleet is 17 years or older and many are not accessible for people with disabilities. Although, the city will continue to fully subsidize the bus service, it will get a better bang for its buck.

"New Yorkers will benefit from the efficiencies generated by this consolidation including the elimination of management and incentives fees paid to the private operators, reduced maintenance costs, insurance savings and the consolidation of fuel purchases."

The city will lease all its bus-related assets to the MTA including approximately 450 new buses that are currently being purchased and the two bus depots that are owned by the City. At the City’s request, the MTA will propose an amendment to its 2000-2004 Capital Plan to set aside a $322.5 million reserve that will be funded from resources originally allocated to the LaGuardia Airport subway extension, but are no longer slated for that project. This reserve will be used for additional fleet replacement, facilities and other necessary capital improvements.

The MTA will assume all union employees and will honor existing collective bargaining agreements and collective bargaining obligations until new agreements are negotiated.

To ensure a seamless transition of service between the MTA and the private operators, the City will also begin immediate efforts to negotiate agreements that address owners concerns quickly and fairly.



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