Palm Tran operator may layoff 150 employees

One of two companies that runs Palm Tran's paratransit vans may cease operations and layoff more than 150 employees on Sept. 23.

Fairfield, Calif.-based MV Transportation has been negotiating with the county on a fee hike and filed the notice as a precaution in case an agreement can't be reached, company spokeswoman Nikki Freeney said.

"We want to work with the county, but it's not good business for us to stay there and continue to take losses," Freeney said.

MV Transportation received a seven-year, $84 million contract from the county in December 2004.

Palm Tran is working on a contingency plan to cover MV Transportation's trips in the event the company shuts down, Executive Director Chuck Cohen said.

"I don't know how it will play out," Cohen said. "We're still working with them. We're still talking with them."