Politics, juice and the local bus contract

Less than a month ago, the RTC board awarded the valley’s bus service contract to First Transit, rejecting longtime Citizens Area Transit operator Veolia. It was a highly politicized decision that provided income to some of Las Vegas’ biggest lobbyists and former elected officials, who pitched both companies hard.

But the 4-3 vote was grounded in hard data. First Transit’s bid came in about $7 million per year less than Veolia’s, with promises of new efficiencies and more user-friendly operations. First Transit is no fly-by-night business; the firm runs bus routes in some 50 other comparable U.S. markets. It already operates the valley’s para-transit service. The RTC built First Transit’s contract into the agency’s budget.

Yet the contract is back before the RTC board today, when commissioners will take up a belated protest from Veolia over the bid terms. Commissioners could even decide to nullify their approval of the contract and throw out both companies’ bids, which would extend Veolia’s current deal into the new fiscal year, almost certainly leading to service cuts should Veolia try to operate the system at the approved lower price bid by First Transit.

This is happening because RTC board member Lois Tarkanian, a Las Vegas city councilwoman, missed the May 19 vote on the contract. Veolia’s lawyers, lobbyists and loyalists are arguing that the board can’t approve the contract with only four votes — that even with just one of the of the eight commission members missing, they still needed five. And Veolia proponents are trying to sway a contract reconsideration their way by continuing to assert that First Transit simply can’t run CAT bus service at the costs they’re promising.

Independent analyses by local number-crunchers Guy Hobbs and Jeremy Aguero indicate otherwise. The bus service contract has fixed route requirements. First Transit won’t be able to cut service or demand more money if it fails to run a profitable system. And it has promised pay raises to unionized drivers and mechanics, not the pay cuts that current Veolia workers have been told to fear. First Transit is assuming the risk here, not the RTC, and not taxpayers.

This morning’s RTC meeting is a testament to the closed-door cultures that have allowed so many to cash in on local government connections at taxpayer expense. It sends a signal that outside competition isn’t welcome.

If the RTC board dumps First Transit and its low bid this morning, it won’t pass the smell test, and it could expose Southern Nevada taxpayers to potentially costly litigation. Clark County government doesn’t need another expensive, image-tainting scandal.