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Meeting Date:
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Category:
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Type:
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Subject:
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Approval of Transportation Contract Extension with Illinois Central School Bus, LLC |
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Vision 2026:
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Operational Excellence Strategies 2 Maintain strong fiscal health of the organization.
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Background:
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The Board of Education awarded a three-year contract for student transportation services to Illinois Central School Bus, LLC in March 2019, and subsequently a two-year extension (First Amendment) of the term in April 2022, which is set to expire on June 30, 2024. A new provision in the law allows for additional extensions to the original term contract, and after consulting with district legal counsel the district began negotiating with Illinois Central for multiple-year extensions. |
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File Attachment:
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Summary:
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Illinois Central has presented a proposal for extending the contract for three (3) additional one (1) year periods for the 2024-2025, 2025-2026, and 2026-2027 school years; with a 14% increase in the first year, a 4.75% increase in the second year, and a 3.75% increase in the third year. The three-year extension allows the District to build in cost certainty for the next three years while lowering the rates that were proposed to CUSD 200 in years one and two. The estimated cost increase of the contract for the first year of the renewal at 14% is $1,000,000. In addition, the fuel escalator clause that is currently in the contract will be removed as the district has worked out an arrangement with Illinois Central to take over the purchasing of the fuel that is used in all buses that are transporting CUSD 200 students. The district also plans to enter into an agreement with Keeneyville School District #20 to purchase fuel for their transportation services, as they are serviced at the same Illinois Central location as our district. By taking over the purchase of fuel for Illinois Central, both school districts will save on certain Illinois diesel fuel taxes, be able to hedge a major portion of future anticipated use, and get full control over a current expense (fuel surcharge) that our existing contract does not allow for. Finally, a change in insurance coverage requirements has been proposed and reviewed by our insurance provider. All other terms and conditions of the Agreement shall remain in effect. Attached is the proposed Second Amendment for the three-year extension, which has been reviewed by district legal counsel. Also attached is the presentation that was reviewed and discussed with the Finance Committee. |
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Funding:
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Estimated Cost: $9,200,000 Funding Source: FY25 Transportation Fund |
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Board Policy: |
4:60 Purchases and Contracts
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Recommendation
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RECOMMENDATION: It is recommended that the Board of Education approve the three-year transportation contract extension with Illinois Central School Bus, LLC as presented. |
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Approvals:
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Recommended By: |
Signed By: |
![](/images/signature.gif) |
Lisa Maher - Dir of Business Services |
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Signed By: |
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Brian O'Keeffe - Asst Superintendent Business Services |
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Signed By: |
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Jeff Schuler - Superintendent |
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Vote Results:
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Original Motion | Member Erik Hjerpe Moved, Member Dave Long seconded to approve the Original motion 'RECOMMENDATION: It is recommended that the Board of Education approve the three-year transportation contract extension with Illinois Central School Bus, LLC as presented.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 7 Nay: 0. | The motion Carried 7 - 0 | | | Brad Paulsen | Yes | Rob Hanlon | Yes | Dave Long | Yes | Angela Blatner | Yes | Julie Kulovits | Yes | Erik Hjerpe | Yes | John Rutledge | Yes | |
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