Rutherford County School Board approves new bus contract, adds protections for contractors and advance insurance payment

The Rutherford County School Board on Thursday approved a new multi-year bus services contract that raises contractor pay by 17% in year one and 2.5% in years two through four, and adopted amendments intended to protect local bus contractors and ensure continuity of student transportation.

Board members said the contract change aims to address contractor costs and attract drivers while preserving locally run routes. The board accepted an amendment to add a 45-day notice and a right of first refusal for a contractor when a route approved for a smaller bus later requires a 90-passenger bus. The board also authorized an advance insurance payment to contractors and a contingency plan to purchase buses if more than 35 contracted routes remain unfilled by the May 29 contract-signing deadline.

The board’s action matters to families and schools because contractors provide daily school transportation, special education runs and activity trips. Board members described the provisions as a balance between protecting contractors and ensuring the district can supply buses if private contractors step away.

Transportation staff and board members described the main contract terms: a 17% increase in year one with 2.5% increases in years two, three and four; a $4,000 annual insurance fee per contracted bus to be paid in advance if contracts are signed by the district deadline; and an indexing mechanism that adjusts payments if fuel spikes above a baseline average. Staff said contractors must sign contracts by close of business May 29 to receive the advance payment targeted for disbursement by June 13; contracts signed after May 29 would not receive the advance but remain eligible for the annual payment once processed.

Board members debated protections for contractors who operate smaller buses (78- or 82-passenger) on rural routes. The adopted amendment to section 2.4(a) requires the transportation department to give a contractor 45 days’ notice if a route will be changed to require a larger bus and offers that contractor first right to provide the 90-passenger vehicle and retain the route. Board members and staff also agreed that if a contractor receives the $4,000 insurance advance and later does not provide service for the full academic year, the contractor must reimburse the district on a prorated basis.

The board approved language directing transportation staff to move the usual route-swap window (historically June 1–July 14) to May 16–May 28 for this year only so contractors can swap routes before signing contracts. Staff said the change reduces accounting complexity tied to the advance insurance payments and helps ensure checks are issued for the correct bus numbers.

Board members also authorized a contingency purchase of used 90-passenger buses from local dealers if more than 35 contracted routes are still unsigned or unfilled by the May 29 deadline. Staff reported local dealers had a limited number of buses available, with sample prices in the transcript ranging roughly from $166,000 to $179,286 per bus depending on model and vendor. The district said buy decisions would only proceed if the threshold of unfilled routes were met.

Implementation steps recorded at the meeting included: contracts to be signed by May 29 for contractors seeking the $4,000 advance; transportation staff notifying contractors of the temporary route-swap window; and procurement staff preparing to authorize bus purchases only if the district has more than 35 unfilled contracted routes at the May 29 cutoff.

Board members stressed the plan is contingent on contractors’ choices. Several board members urged contractors to sign and remain in the system, and staff said the district will work to keep routes geographically close to current drivers where feasible. "If they want to continue to haul kids, they can continue to haul kids," a board member said during the debate.

The motion to approve the contract as presented, amended by the 2.4(a) change (45-day notice and right of first refusal), passed on a roll call vote.