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Board hears update on First Student transportation proposal; negotiations continue
Summary
District staff briefed the board on ongoing negotiations with First Student for bus services. The company's latest pricing showed a per-route rate increase; staff highlighted fuel escalators, volume adjustments, activity buses and workforce constraints as central negotiation points.
Winona Area Public School District staff updated trustees on ongoing negotiations with First Student for a multi-year bus services contract. The district received a revised pricing page from First Student and has continued discussions; no final contract was approved at the meeting.
Staff described the current proposal as a five-year pricing schedule with year-two through year-five increases shown at 8%, 5%, 3% and 3%. The transcript records a quoted two-tier route price of about $467.11 per bus per day (the two-tier model is one set of morning/afternoon routes run by the same bus). District staff said that, at 38 routes running at that price and a typical 173 student days, the per-bus annual cost equates to roughly $80,000, a figure used for planning.
Briefing items and negotiation topics included: - Two-tier versus single-tier routing: staff said single-tier would require many more buses and driver staffing and that workforce availability makes single-tier impractical now. - Fuel escalator and volume adjustment language: staff asked for clearer, annual-flexible language because the district may face route-count changes over the contract term; First Student's documents include a fuel escalator and a reduced volume-adjustment range keyed to route counts. - Activity buses and fleet adjustments: staff reported that three activity-style buses (with cargo storage) had previously been billed separately; First Student proposed to bake those costs into the per-route pricing in the new offer, which affects comparability to the current contract.
Staff and board members emphasized driver recruitment and retention pressures and noted that staffing shortages are a key driver of higher proposed rates. Trustees asked for routing scenarios that quantify the difference in route counts and total costs for single-tier vs. two-tier operations, and staff said that would require a full routing exercise and more time.
Staff recommended continued negotiation and asked trustees to submit any additional questions within three days so district negotiators can consider board input before the next meeting. No final award or motion to approve a contract occurred during this session.
Ending: District staff will continue negotiations with First Student, model route scenarios if requested by trustees and return with revised language on volume adjustments and fuel-escalator terms for the board to consider.
