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Board awards type‑3 transportation contract to Palmer Bus; First Alts named as supplemental provider
Summary
Trustees approved a two‑year contract for type‑3 (van/small‑bus) student transportation with Palmer Bus starting July 1, 2025, with First Alts available as a supplemental broker if needed. Staff said the proposal is expected to be slightly less than current costs in year one.
The Shakopee Public School District board on May 12 awarded the district’s type‑3 transportation primary contract to Palmer Bus Service for a two‑year term starting July 1, 2025, and authorized a supplemental contract with First Alts (a broker model) to provide service if Palmer cannot fill a specific route.
Bill Benazzi, identified in the meeting as the district’s director of finance and operations, told trustees the district received nine responses to its request for quotations and evaluated two principal models: a broker model (where the provider subcontracts routes to smaller van services) and a traditional model (where the provider owns and operates its own fleet and drivers). Benazzi said the district currently spends about $1.92 million per year on type‑3 transportation based on current usage.
“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 during the presentation. He added that Palmer’s proposal came in slightly lower for year one: $1,870,000 for FY26 and $1,926,000 for FY27 based on projected usage.
Why it matters: type‑3 transportation serves students with specialized or nonstandard routing needs; staff said about 90–95 students currently use type‑3 routes. Consistent service and vendor capacity are critical because routes can be geographically dispersed and sometimes require rapid adjustments.
Board discussion and rationale
Staff recommended Palmer because the district judged the traditional model more likely to deliver consistent daily service and more predictable staffing. Benazzi said the special education team reviewed the recommendation and supported awarding the contract to Palmer. The board discussed whether the district should build its own fleet; staff said putting together a district‑run type‑3 operation would be a significant undertaking and that Palmer has demonstrated capacity and local experience.
Board action
Trustee Aldrich moved to approve the type‑3 transportation contract with Palmer Bus, and Trustee Rolfi seconded. The board voted unanimously to approve the contracts that authorize Palmer as the primary provider and First Alts as a supplemental broker if needed.
Contract details
- Current annualized cost (based on present usage): about $1,920,000. - Palmer quote (FY26): about $1,870,000; FY27: about $1,926,000. - Contract term: two years, commencing July 1, 2025; supplemental services from First Alts to be used only if Palmer cannot provide a particular route.
Next steps
District staff will finalize contracting documents and manage the transition with the new provider ahead of the 2025–26 school year.
