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Board set to consider a seven‑year First Student contract after negotiation; company to provide scholarships and project donations
Summary
Staff recommended a seven‑year contract with First Student (July 1, 2026–June 30, 2033) after negotiations; the deal includes a 6% increase year 1, 6.75% years 2–7, a 45% daily rate reimbursement for virtual/remote days and philanthropic donations and scholarships from the vendor.
District staff told the Pleasant Valley Board on March 11 that First Student emerged from months of negotiations as the recommended transportation vendor and that the final form of the contract will be placed on the March 26 voting agenda.
Staff said the district rejected an initial RFP response and negotiated with multiple transportation providers and that an in‑house transportation model was estimated at roughly $13 million. The negotiated First Student proposal, if approved, would run seven years from July 1, 2026, through June 30, 2033, and includes a 6% rate increase the first year and 6.75% increases in years two through seven.
The contract contains several district‑facing concessions: First Student would sponsor 10 $1,500 scholarships for graduating seniors each year for the life of the contract, donate $50,000 to district projects or needs in 2026–27 and $25,000 in 2027–28, and the district would reimburse First Student 45% of the daily route rate for any virtual or district‑declared remote instructional days. Staff said the 45% reimbursement equates to about $23,500 per day at current run counts.
District staff said the contract language had been agreed by the vendor and the district solicitor and will appear on the March 26 agenda; trustees were asked to consider how to use the vendor’s donations, with one trustee suggesting athletics uniforms.
Next steps: final contract language placed on March 26 agenda for board vote and staff to present recommended allocation of donated funds if the contract is approved.
