Published January 23, 2020
By JILLIAN STRING
NORTH READING — The School Committee voted unanimously to extend the school district busing contract with North Reading Transportation (NRT) for the fifth and final year at its January 13 meeting.
Assistant Superintendent of Finance and Operations Michael Connelly reminded the committee that the three-year contract with NRT expired on June 30, 2019, and that original contract had an optional provision for the district to extend it for an additional two years.
The School Committee extended the contract for the 2019-2020 school year, and after researching other transportation companies and looking at recent transportation bids for surrounding towns, Connelly advised the committee to consider extending the contract with NRT for the fifth year.
“We have an option to renew (the contract with NRT) for the fifth and final year of that existing agreement, which would extend their contract through fiscal year 2021,” Connelly said.
According to Connelly, the market research he conducted in December 2018 has not changed significantly.
“There really hasn’t been any significant change in the market conditions a year later that I think would warrant a change in what was recommended a year ago,” Connelly said. “The bus transportation market in Massachusetts continues to experience an increase, again, there are a variety of factors at play.”
Connelly cited factors such as healthcare costs, sick leave laws, and a shortage of qualified bus drivers as reasons for increases in transportation costs.
Daily rate increases by $5 per bus
An updated daily rate table, completed by Connelly, reported that the average bid for districts similar to North Reading will be $373 per bus per day for Fiscal Year 2021 (FY21).
“(With) the current market conditions, I feel if we were to go out to bid and not renew, we would see a higher daily rate,” Connelly said.
Under the NRT contract, the district will pay a daily rate of $355 for FY21, representing a $5 per day increase over FY20.
“I think things have gone very smoothly this year with NRT. I know we had some issues in the past, but we’ve certainly worked through them with some of the bus drivers,” Connelly said. “They have certainly improved over these last couple school years, so I think it’s the prudent decision to recommend (that we) extend the option for their fifth and final year.”
School Committee member Chris Pappavaselio asked Connelly if he thought there would be a sizable increase in cost for FY22, since the district will have to go out to bid on a new contract.
“Right now, it’s a yes,” Connelly said. “I hope things change a year from now when we’re putting out that bid…I’ve seen area communities go out to bid and it’s in the $400 range, so that’s where the market is trending.”
Committee Vice Chairman Janene Imbriano noted that five years ago the district had to increase bus fees in order to support the increase in the daily rate. She asked Connelly if he foresaw another increase.
Connelly stated that the district is required by the state to bus students who live more than two miles away from the school. Only busing these students would require the district to operate five buses, however, the district currently operates 10 buses due to the number of students who pay to ride.
Traditionally, the fees collected have been used to help support the increase in transportation costs, but Connelly noted that those decisions will be made when considering a new contract.
