District staff recommends continued contract talks with Cottage Hill amid rising special-education transportation costs

District staff told the DuPage HSD 88 Board on Feb. 3 that the contract for regular and special-education transportation services with vendor Cottage Hill will expire at the end of the school year and that staff are negotiating renewal terms.

The presenter said Cottage Hill has provided transportation services to the district for more than 35 years and has offered competitive pricing but that costs have risen substantially in recent years. The presenter said the local rate for drivers is currently $24 per hour, “up about 71% since the 2014–15 school year,” and that recent annual contract increases were 14.5%, 10.6% and 9.9% over the past three years.

Staff attributed increases to a tight labor market for drivers, rising vehicle replacement costs (5% annual increases on special-education buses since the pandemic) and new statutory requirements such as the Illinois Paid Leave for All Workers Act. To improve planning and lower year-to-year volatility, staff recommended negotiating a five-year contract (the School Code limit for non‑electric fleets), which staff said reduces the average annual increase to about 5.65% over five years. Other contract terms would remain, including a $57,000 vehicle-maintenance bank that the vendor draws against for repairs; staff reported the bank currently stands at just under $40,000.

Staff said performance-based provisions remain in place to prorate bills for late, combined or split routes. The presenter said final contract terms will be negotiated with Cottage Hill and returned to the board at a future meeting for approval.