CVSD board approves 12‑year lease for electric school buses with Highland Electric
Summary
The Champlain Valley Unified School District board unanimously approved a 12‑year lease with Highland Electric Transportation to add electric route buses, with the partner covering capital costs, projected operating savings tied to a Green Mountain Power arrangement, and a $31,000–$33,000 annual per‑bus lease cost.
The Champlain Valley Unified School District board on the evening’s agenda approved a 12‑year lease with Highland Electric Transportation to add electric route buses to the district fleet.
Gary (finance lead) told the board the partner will cover all capital costs and take on tax‑credit and grant incentives, allowing the district to lease buses for about $31,000 per bus per year with a maximum 3 percent annual escalator. He said the company will handle most major maintenance and electricity costs and that an arrangement with Green Mountain Power could allow buses to provide grid support during peak demand, creating additional savings. “They take on all the capital risks,” he said.
Administration compared the lease to outright purchase and concluded the partnership reduces the district’s up‑front capital exposure and lowers the district’s effective cost of capital. The presentation cited a projected $126,000 operating savings over the contract term compared with pursuing buses independently and noted electric buses often require less frequent tire replacement and deliver quieter, lower‑emission service.
Board members asked whether federal or state incentives (including tax credits) factor into the economics. Administration said Highland incorporates those incentives into its proposal and assumes that risk, so the district’s payments remain stable even if incentives change.
The board moved and seconded the contract approval after discussion; the motion passed unanimously. No roll‑call of individual votes was recorded in the public record.
The lease includes an option at term to purchase buses at residual value. Administration said the district can continue to use the buses for route service and occasional trips within usage restrictions contained in the lease.
The board also noted the electric‑bus lease aligns with the district’s strategic goals and that the superintendent will sign the agreement.
The board’s approval was taken as a final action at the meeting; no further board action was recorded in the minutes that evening.
