Board approves transportation contract amendment lowering umbrella coverage and adding shuttle despite objections

The Scranton School District board on Nov. 4 approved an amendment to its student transportation contract with Pete's Garage that lowers the vendor's excess umbrella liability from $10 million to $5 million and adds a one‑way shuttle to Memorial Stadium for South, West and Northeast Intermediate Schools.

Board members debated whether the insurance change limits families' recoverable damages in a catastrophic crash and whether the district gains a meaningful cost benefit. Director Yani and others said the vendor provided independent quotes that suggested an approximate annual savings of $20,000 for the contractor; opponents said the district should not reduce coverage that could affect families' recoveries.

Solicitor Freund and board staff clarified that the change affects excess umbrella coverage above primary limits and that approving the amendment places no new liability on the district; any exposure beyond the carrier limits would fall to the vendor's assets, not the district.

The motion, which included an amendment to explicitly include Northeast Intermediate School on the shuttle, passed on roll call 6‑3. Directors in favor cited added services for students and the benefit of preserving a local contractor; those opposed raised concerns about limiting potential insurance recovery in rare, large claims.

Next steps: District staff will obtain an updated certificate of insurance and clarify combined single limits and aggregate wording for the record.