District staff recommend Palmer Bus for type-3 (van/small-bus) routes; board discussion centers on capacity and backup service

Shakopee Public School District staff recommended the board award the two-year type-3 transportation contract (vans/small buses often used for special education and other specialized routes) to Palmer Bus and to use First Alts as a supplemental provider if Palmer cannot meet a specific need.

Director of Finance and Operations Bill Benazzi told trustees the district received nine quotes after a request for qualifications and that, based on current usage, the district pays about $1.92 million per year for type-3 service. He said Palmer—s quote was roughly $1.87 million for year one and about $1.93 million for year two under the proposed contract. "Based off our current usage, we're paying in the neighborhood of 1,920,000.00, per year for our type 3 transportation," Benazzi said.

Staff described two operational models: a broker model (where a prime contractor subcontracts to local van services) and a traditional operations model. The recommendation to select Palmer reflected staff confidence in a traditional operations approach and Palmer's capacity to provide consistent service. The district also proposed a supplemental agreement with First Alts to provide per-trip retainer service when needed; staff said supplemental invoices would be based on utilization rather than a standing retainer.

Board members and administrators discussed statewide service challenges in type-3 transportation, vendor capacity and whether the district could someday bring the service in-house. Trustees praised the procurement process and the depth of review, and special education staff reviewed and supported the recommendation.

The transcript records staff recommendation and discussion but does not show a recorded board vote on this item in the provided excerpt; minutes and formal contract documents will reflect whether and when the board takes final action.