San Diego North County Transit District hires 450 bus workers in takeover

North County Transit District Completes Transition to In-House Operations, Hiring 450 Bus Workers

Transit agency ends 15-year outsourcing arrangement as part of cost-saving initiative; first time in 50 years all operations employees work directly for district

in the style of The Wall Street Journal
June 30, 2025

The North County Transit District completed a multiyear transition to bring its bus operations in-house on Sunday, directly hiring 450 previously contracted workers in what officials called the agency's most significant operational change in decades.

The move ends a 15-year arrangement with Dallas-based MV Transportation Inc., which had managed bus drivers, maintenance workers and related positions for the San Diego County agency since 2010. NCTD said the transition represents the first time in 50 years that all operations employees work directly for the district.

"Today, we celebrate the first time in 50 years that all of our operations employees are together as part of one world-class team," said NCTD Chief Executive Officer Shawn Donaghy in a statement Sunday.

Financial Pressures Drive Change

The transition stems from NCTD's efforts to control rising costs amid static revenue streams. The agency's board discussed potential fare increases at a recent meeting—the first such increases in approximately five years—as it seeks to address budget pressures.

NCTD originally outsourced bus operations in 2010 following a projected $80 million budget deficit over five years. At the time, the move helped avoid significant service cuts and layoffs, though employees received reduced wages and benefits under the contracted arrangement.

Chief Operating Officer Lilia Montoya said bringing operations in-house "allows us to deliver a more consistent, responsive and customer-focused experience" while creating efficiencies through direct management control.

The agency expects the change to be cost-neutral or potentially generate savings, though specific financial projections weren't disclosed. Officials said at a December 2022 board meeting that employees would receive higher wages under direct district management.

Broader Operational Strategy

The bus transition completes NCTD's broader strategy to gain direct control over all operations. The agency brought its COASTER commuter rail and SPRINTER hybrid rail services in-house between 2022 and 2023, ending contracts with Bombardier Transportation. Officials described that earlier transition as successful, with 100 Bombardier staff members transferring to NCTD employment.

The newly hired workers include bus drivers, traffic controllers and maintenance technicians operating NCTD's BREEZE bus system, which serves nearly 850,000 people across a 1,020-square-mile area in North San Diego County. The bus operations represent more than 60% of NCTD's total ridership and cover 5 million miles annually.

Service and Performance Implications

NCTD officials said the transition should improve customer service by eliminating coordination challenges between the district and contractors. The change comes as the agency has seen ridership rebound following pandemic-related declines.

BREEZE buses carried 4.9 million passengers in fiscal year 2023-24, an 8.3% increase from the previous year, according to the district's annual report. The system operates more than 30 routes covering areas from Camp Pendleton to La Jolla and inland to Fallbrook, Escondido and Ramona.

Zero-Emission Fleet Transition Adds Complexity

The transition comes as NCTD simultaneously undertakes a costly shift to zero-emission vehicles, creating additional operational and financial pressures. The agency is modernizing its fleet with hydrogen-electric and battery-electric buses planned to comprise 25% of the fleet by 2025, with a goal of complete transformation to zero-emissions by 2040.

The infrastructure costs are substantial. NCTD estimates total facility improvements and vehicle purchases will range from $194 million to $217 million for battery-powered buses, and $188 million to $226 million for hydrogen-fueled buses, according to agency documents. The district has secured $4 million in grants for a hydrogen fueling station at its Oceanside facility, with construction completed in 2025.

However, the zero-emission transition presents operational challenges that could impact service availability. While hydrogen buses can refuel in approximately 10 minutes with a 300-mile range comparable to diesel buses, they require specialized maintenance training and face parts supply difficulties. Battery-electric buses need significantly longer charging times—typically several hours for overnight charging or 15 minutes for fast-charging during route operations.

Industry data shows electric buses generally have lower maintenance requirements than diesel vehicles, potentially saving $185,000 in maintenance costs over a bus's lifetime. Yet the charging infrastructure introduces new operational constraints. Fast-charging during peak hours can increase electricity costs substantially, while overnight charging requires careful scheduling to avoid overloading depot electrical systems.

The transition also demands additional workforce training. NCTD staff must learn new maintenance procedures for fuel cell systems, battery management, and charging equipment. Studies from other transit agencies indicate that while electric buses have fewer moving parts, specialized technical knowledge is required for troubleshooting fuel cell balance-of-plant components and managing battery degradation.

Union representatives from Teamsters Local 542, which represents bus operators and maintenance workers, supported the transition, citing employee preferences for direct district employment and career development opportunities.

The 50-year-old transit district provides approximately 8.1 million passenger trips annually across its bus and rail services, making it a critical component of the San Diego regional transportation network.

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Sources:

1. Diehl, Phil. "North County bus drivers get layoff notices in advance of transition." The San Diego Union-Tribune, April 22, 2025. https://www.sandiegouniontribune.com/2025/04/22/north-county-bus-drivers-get-layoff-notices-in-advance-of-transition/
2. "North County Transit District hires 450 bus workers in management takeover." Times of San Diego, June 29, 2025. https://timesofsandiego.com/life/2025/06/29/north-county-transit-district-hires-bus-workers-management-takeover/
3. "NCTD assumes management of bus operations." KPBS Public Media, June 30, 2025. https://www.kpbs.org/news/economy/2025/06/30/nctd-assumes-management-of-bus-operations
4. Diehl, Phil. "NCTD advances plan to end outside management of bus drivers." The San Diego Union-Tribune, December 18, 2022. https://www.sandiegouniontribune.com/communities/north-county/oceanside/story/2022-12-18/nctd-advances-plan-to-end-outside-management-of-bus-drivers
5. "NCTD Showcases Hydrogen and Electric Buses at November Board Meeting." North County Transit District, November 19, 2019. https://gonctd.com/nctd-showcases-hydrogen-and-electric-buses/
6. "Fuel Cell Electric Buses in the USA." National Renewable Energy Laboratory, July 27, 2023. https://www.nrel.gov/state-local-tribal/blog/posts/fuel-cell-electric-buses-in-the-usa.html
7. "A Guide to the Electric Bus Charging Station." Pilot Energy Storage, June 25, 2022. https://www.pilotenergystorage.com/a-guide-to-the-electric-bus-charging-station/

North County Transit District hires 450 bus workers in takeover