Yolobus switches operators with new $48.6M deal, including plan for more jobs
The Yolo County Transit District will transition to a new operator when its current contract expires at the end of July. The new service provider will retain the 84 employees currently operating Yolobus for at least 90 days and is expected to keep them on permanently.
The district’s current service provider, Transdev Services, filed a Worker Adjustment and Retraining Notification notice with the Employment Development Department on May 26, indicating it will cease operations on July 31.
“We will cooperate with the new operator and facilitate employment opportunities to the extent we can,” Transdev General Manager Julie Holmes wrote in the WARN notice letter to state labor officials.
MV Transportation Inc., a Dallas-based transportation company, signed a three-year agreement with the district to operate Yolobus for about $48.6 million. The contract includes options that could extend the deal to seven years and increase its value to $123.6 million. The district board approved the contract at its April meeting.
MV Transportation agreed to rehire the district’s 84 employees for 90 days, according to a YoloTD staff report. Transdev reported it believes MV Transportation will “retain most if not all of our staff in the same or similar roles,” Holmes wrote to the state.
MV Transportation also agreed to increase entry-level salaries by 10% and plans to hire 15 additional employees to support customer service, fleet maintenance and other operations.
The new contract costs about 17% more than the district currently pays. The increase does not include approximately $1 million in startup costs, including about $390,000 due by the end of June, according to a staff report.
MV Transportation also operates Roseville Transit.
