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NRTA transitions to Keolis North America; advisory board approves FY27 budget and $1.3M RAN
Summary
NRTA administrator Gary Roberts told the advisory board Keolis North America began operating NRTA March 1, with most ETS of Mass employees retained. The board approved the FY27 budget and a $1.3 million revenue anticipation note to bridge state funding delays, both by unanimous votes.
Gary Roberts, NRTA administrator, told the NRTA advisory board on May 13 that the regional transit authority completed a contract transition to Keolis North America as the operating company, and that service changes were seamless for riders.
Roberts said Keolis staff came to the island in February to begin the transition and that the new general manager "arrived shortly thereafter" to work with local staff. "Every single employee of ETSs of Mass, the previous operator, was offered employment," he said, and Roberts reported most accepted the positions; a small number of supervisory and office staff did not transfer. Roberts said new employee files, background checks and drug tests were completed and that training and safety initiatives were launched ahead of Keolis’ March 1 start.
In a follow-up on fleet modernization, Roberts said NRTA now operates 13 battery-electric vehicles in revenue service, with three additional gas-powered vans purchased via a $650,000 grant and six battery-electric buses (a $2.5 million grant) delayed by state approvals until September. He added the authority has ordered heavier hybrid buses (approx. $4.5 million) that will arrive over the next 12 months.
Roberts presented the FY27 operating budget to the board, noting it was built on level state contract assistance pending final state action and an annual 2.5% local assessment increase. Grant revenues will offset costs: Roberts said the authority expects $1,489,000 in grant funding in FY27. He described purchase-transportation costs rising roughly $375,000 largely because the new operator contract includes employee health benefits the previous contractor had not offered.
The advisory board moved to approve the FY27 budget as presented; the roll-call vote was unanimous, 5–0.
Roberts also reviewed the authority’s annual revenue anticipation note (RAN) application to bridge operating cashflow until state contract assistance arrives. Based on a six-month cash-flow projection, NRTA applied for a $1.3 million RAN. Roberts said the board solicited competitive bids; Piper Sandler offered the lowest net interest cost at 3.23%, estimating interest of about $46,000 on the $1.3 million note.
The advisory board voted to approve the RAN application at $1.3 million; that motion also passed unanimously, 5–0.
What’s next: Roberts said he will continue to update the board on the Keolis transition and fleet deliveries as vehicles are accepted and training continues. The authority expects additional electric and hybrid buses in the coming year.
