RTC leans on federal aid to continue operations amid pandemic
Already facing financial strain before the coronavirus pandemic, the Regional Transportation Commission of Southern Nevada has been hit particularly hard by the statewide shutdown of nonessential businesses.
The RTC is set to lose around $5 million per month in revenue after enacting rear-door boarding to protect drivers, which required the agency to stop enforcing fare collection.
The agency was allocated $112 million through the CARES Act, which allows it to be reimbursed for operating expenses that used to maintain transit services during this pandemic.
The RTC’s operating expenses primarily consist of services provided by third-party contractors and fuel, but the lost revenue due to rear-door boarding is not reimbursable through the federal law. Third-party contractors, such as MV Transportation and Keolis, provide bus service, Americans with Disabilities Act-required paratransit service, security service and bus stop cleaning services.
MJ Maynard, the agency’s CEO, said it is spending about $10.1 million more each month to maintain service during the pandemic. “That amount includes the cost to provide personal protective equipment, additional service to encourage social distancing, premium pay and the loss in fare revenue for rear-door boarding.”
He said the RTC will request reimbursement of operating expenses on a monthly basis from the Federal Transit Administration until all funds have been utilized.
“The CARES Act funding will allow us to maintain our operations through fiscal year 2021,” Maynard said. “However, we were already facing significant financial constraints prior to the pandemic, which only intensified the strain on RTC’s transit fund. Without CARES Act funding, we would need to make more severe cuts to our transit service.”
Though ridership is at about 50 percent of usual levels, he said, the RTC is operating at 90 percent of its traditional service levels while allowing for more social distancing on vehicles.
“As a result, approximately 1,800 contracted drivers, mechanics and support staff have remained gainfully employed to provide transportation to the tens of thousands of individuals who need the essential service to get where they need to go,” Maynard said.
Ridership in the resort corridor has dropped 88 percent since Gov. Steve Sisolak closed Nevada casinos and nonessential businesses in mid-March. Residential ridership has decreased 53 percent, and paratransit demand has decreased 70 percent.
At the request of MV and Keolis, the RTC is providing 5 percent premium pay for operators during Sisolak’s stay-at-home order. That equates to an additional $150,000 per month in contracted costs that will be submitted to the FTA for reimbursement.
The RTC is also reimbursing both contractors forpersonal protective equipment such as face shields, masks and gloves, along with products used in the rigorous cleaning procedures meant to protect drivers’ safety.
The agency has spent about $90,000 on the protective equipment, and that number is expected to increase significantly as the contractors submit invoices for reimbursement. Those costs in turn are being submitted to the FTA for reimbursement.
“We hope that the PPE will help keep our drivers safe, in addition to existing driver safety enclosures on the buses,” Maynard said.
Despite the safety measures, four employees of RTC contractors — three from Keolis and one from MV — have tested positive for the virus. An RTC employee who works at one of its bus yards also has tested positive.
The RTC was notified about the bus yard employee’s test on April 21.
The employee worked within the bus maintenance facility and did not interact with the public. Though the employee did not show symptoms while at work, the RTC identified others who had close contact with the individual over the previous 14 days and asked them to quarantine for 14 days from the last day the infected employee worked.
Contact Mick Akers at makers@reviewjournal.com or 702-387-2920. Follow @mickakers on Twitter.
