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Board approves five-year First Student extension to stabilize transportation rates
Summary
To avoid a large one-year rate spike, the district approved a five-year extension with First Student that stages annual increases rather than a single large jump; board members pressed staff on service reliability and contract terms.
At its Feb. 19 meeting, the Addison SD 4 Board of Education voted to approve a five‑year extension of the district’s regular-education transportation contract with First Student.
Mrs. Morgasey, who presented the recommendation, told the board that annual rates would be substantially higher if the district renewed only year‑to‑year and that a multi‑year extension would smooth increases. She said the five‑year schedule in the packet would include a roughly 12% increase in the second year followed by smaller increases in later years (presentation language: 5% in year three, then 4%, then approximately 4.5% in subsequent years).
Board members questioned whether First Student effectively holds the local market and whether alternative vendors could provide more reliable service or lower rates. Staff responded that other companies sometimes decline to bid and that First Student maintains a large local presence; staff also described occasional vehicle breakdowns but said First Student typically supplies a replacement from its pool.
Several board members asked about contractual protections and cancellation language; staff said the full contract text had not yet been provided and that they could return with details, including any termination or remedy clauses. The board voted to approve the extension to avoid an immediate one‑year surge in rates.
Action on the extension was moved by Jeremiah and seconded by Zach; the motion passed on a roll call vote.
