Capital Metro approves two contractors for bus service

The Capital Metro board approved two contracts with two different Texas-based companies to run bus service for part of its fixed-route and paratransit services in a deal that transit agency leaders say would save an estimated $35.5 million over the next seven years.

The first contract is a three-year, $408.7 million deal with Fort Worth–based McDonald Transit Associates and includes an option for four one-year extensions to run bus service.

The second contract goes to MV Transportation, which relocated its headquarters from California to Dallas, for MetroAccess services currently provided by StarTran. It is a $111.5 million deal for three years with an option for three one-year extensions.

The contractors will replace StarTran, a subsidiary of Capital Metro. They will start providing service Aug. 19 and are meeting with StarTran employees this week to introduce themselves and answer questions.

"I'm pleased with the outcome. We've done right by employees, we're complying with the law, and over the long haul, we're improving our financial bottom line," said Linda Watson, Capital Metro president and CEO, in a news release. "Further, I'm confident in the expertise and abilities of the two contractors to provide a great service to our customers. It will be seamless to the community."

Dottie Watkins, who oversees operations, said McDonald Transit's local management team made the company stand out above the others.

"Through our interviews with McDonald and through their written proposals, they regularly stress the importance of good communication with employees as a foundation for good services," she said during the April 20 board work session to discuss the recommended contractors. "Given what we are up against, we were impressed with their presentation."

Hiring the new contractors will satisfy Senate Bill 650, signed into law in June 2011, which requires Capital Metro to either bring all of its employees in-house or outsource employment to a third-party contractor. About 70 percent of Capital Metro's bus service employees work under StarTran, created by Capital Metro 1991 to manage its union workers. The other 30 percent are managed by third-party contractors First Transit and Veolia.

The bill was a result of the organization's review by the Texas Sunset Advisory Committee, which studies government agencies and identifies waste and inefficiencies.

Both McDonald Transit and MV Transportation will be required to offer existing StarTran employees a job with the same wages and benefits they earn now. The contractors will also have to offer a comparable pension plan and negotiation of wages, benefits and the pension with the union.

Jay Wyatt, president of the Amalgamated Transit Union Local 1091, said StarTran employees will fight to earn the same pension coverage as they have now and have had since the 1950s.

According to board documents, McDonald Transit has other contracts with union workers in Indiana, Massachusetts, Alabama and Colorado. MV Transportation employs several ex-union officials on its labor team.

The contracts also include various penalties and incentives based on performance measures, such as the number of complaints per 1,000 passengers and number of accidents per 100,000 miles.

The board's vote to select new contractors is another step forward in a nearly three-year process to make Capital Metro more efficient and financially stable as well as restructuring the organization of its labor force. The transit agency has a timeline of events posted on its website.

By Amy Denney

Amy has been reporting in community journalism since 2007. She worked in the Chicago suburbs for three years before migrating south and joined Community Impact Newspaper in September 2010. Amy has been editor of the Northwest Austin publication since August 2012 and she is also the transportation beat reporter for the Austin area.


The city of Austin authorized the purchase of a Rodeway Inn at 2711 S. I-35 on Nov. 14. (Olivia Aldridge/Community Impact Newspaper)
No timeline set on opening of Austin’s first conversion of motel to homeless shelter

Austin City Council approved the purchase of the Rodeway Inn in November. City staff does not expect to close on the property until mid-April.

District 4 City Council Member Greg Casar (Christopher Neely/Community Impact Newspaper)
Austin Council Member Greg Casar 'seriously considering' run for Kirk Watson’s state Senate seat

The 30-year-old Austin City Council member is serving the final year of his first full, four-year term.

Shoppe Leaf
Leaf Landscape Supply's NW Austin location to add boutique business

Leaf Landscape Supply announced it is launching a new garden boutique, Shoppe Leaf, at its Northwest Austin location.

District 14 Sen. Kirk Watson announced Feb. 18 he would be resigning his state Senate seat to work in higher education. (Jack Flagler/Community Impact Newspaper)
Kirk Watson resigns state Senate seat, takes post at University of Houston

The former Austin mayor will become the founding dean at the University of Houston Hobby School of Public Affairs.

Early voting begins Feb. 18 in the 2020 Texas primary. (Courtesy Adobe Stock)
Here are the candidates who are running for seats representing Northwest Austin

Voters in Northwest Austin can cast their ballots early from Feb. 18-28 for the March 3 primary

Pflugerville ISD adminstration building
Trustees to vote on Pflugerville ISD boundary changes this week

PfISD officials are set to vote later this week on enrollment boundary changes for the 2020-21 school year.

Three candidates are running in the Democratic primary for Texas' 10th congressional district. (Courtesy Adobe Stock)
Q&A: Democratic candidates for U.S. representative for District 10 discuss area concerns, immigration policy

Three candidates are running in the Democratic primary for Texas' 10th congressional district.

A sign guides voters in during the Nov. 6, 2019, election at Ben Hur Shrine Temple in north Central Austin. (Jack Flagler/Community Impact Newspaper)
MAP: Find where to vote early Feb. 18-28 in Northwest Austin

Voters can cast their ballots at any polling location in their respective county.

The Austin location is in the Trails at 620. (Courtesy Kale Me Crazy)
Superfood cafe serving juices, poke bowls now open in Trails at 620

Kale Me Crazy opened its first Austin-area location Feb. 15.

Austin City Council is poised to make a final vote on the land development code rewrite by early April. (CHRISTOPHER NEELY/COMMUNITY IMPACT NEWSPAPER)
Austin’s eight-year effort to rewrite land code advances to final vote with City Council's second-round approval

A majority of Austin City Council voted in favor of the land development code rewrite, setting the stage for a final vote on a project that has exhausted the community for roughly eight years.

James Avery Artisan Jewelry will open Feb. 26 in its new store near The Arboretum. (Courtesy James Avery)
James Avery relocating Anderson Lane store to near The Arboretum

The relocation will allow the Texas-based brand to offer more products and services.

Austin Urgent Care opened in the former space of First Choice Emergency Room. (Amy Denney/Community Impact Newspaper)
Locally owned urgent care facility opens on Jollyville Road in Northwest Austin

Austin Urgent Care can treat a variety of illnesses and ailments.

Back to top