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Owatonna board OKs renewal with Owatonna Bus Company; rates to rise modestly
Summary
The board approved an extension of its contract with Owatonna Bus Company with negotiated increases of 2.69% (first year), 3% (second) and 4% (third), and created a transportation liaison post to capture fees and improve efficiencies.
The Owatonna Public School District board voted June 29 to approve a multi‑year extension of its transportation contract with Owatonna Bus Company, adopting negotiated rate increases of 2.69 percent in the first year (aligned to the district’s general education aid increase), 3 percent in the second year and 4 percent in the third.
Director Stotts described the background: the district had entered a three‑year contract with options to extend, experienced significant cost increases in the first year, and negotiated a compromise with the bus company after the carrier initially proposed 4 percent increases in each year. "Neither one got exactly what they wanted," Director Stotts said of the compromise.
Stotts explained the district will keep its longstanding regular home‑to‑school routes (approximately 30 routes) on an annualized payment schedule, and that the primary cost and scheduling challenges are extracurricular runs, athletics and field trips. To improve oversight and capture revenues from families who request transportation within mileage limits, the district has created a transportation liaison position; Jenna Ludwig began in the role last week, Stotts said.
The board approved the contract as presented. Staff said the liaison position will help the district collect fees for family‑requested transportation that previously went to the bus company and is expected to offset some costs.
