Agenda Item
H.01. Transportation Strategy to Purchase, Lease or Lease/Purchase School Buses (Board Governance Policy: OE-5)
Meeting:08/04/2009
Category:H. DISTRICT OPERATIONS MONITORING
Agenda Type:ActionPreferred Date:08/04/2009
Fiscal Impact:YesAbsolute Date:08/04/2009
Dollar Amount:$0.00Budgeted:Yes
Budget Source:Copley Funds
Agenda Item Content
RECOMMENDATION: Approve the transportation strategy to bring the remainder of the contracted bus service in-house and purchase or lease/purchase 65 school buses of various capacities to meet projected SY 2010-11 need.

FISCAL IMPACT: Depending on the decision, the district has three options to procure the buses: purchase, five-year lease/purchase, and seven-year lease purchase. Funding Source: Copley funds for initial bus procurement are a viable option.

Purchase: Based on an average cost of $115,000 per bus, total cost procurement is estimated at $7,475,000.

Five-Year Lease Purchase: Based on an average cost of $115,000 and an estimated interest rate of 3.90 percent, will result in the annual payments of $1,647,917 for 5 years totaling $8,239,586. Cost of financing will total $764,586.

Seven-Year Lease Purchase: Based on an average cost of $115,000 and an estimated interest rate of 4.13 percent, will result in the annual payments of $1,231,467 for 7 years totaling $8,620,268. Cost of financing will total $1,145,268.

Under any of the procurement scenarios identified above, there will be corresponding increases in operational expenses including additional drivers, fuel and repair parts. These operational costs are estimated to impact the 2010-11 transportation services budget, with an initial approximate cost of $1.2 million for additional staff and approximately $815K for parts, supplies and fuel. These costs will be offset by $2.7 million in contract savings. The operational costs will continue annually with step/column and routine fuel/maintenance increases.

BACKGROUND: The Portolan Group recently completed an analysis of the Transportation Department with one of the goals of the analysis being “the creation of a plan to significantly reduce or eliminate the need for the First Student and/or subsequent bus contracts”. The analysis recommended procuring 65 buses to meet the projected need for SY 2010-11. Considering the lead time of nine to ten months for delivery of a new bus, bidding the buses in the September/October timeframe will insure the buses are received and ready for the start of the 2010-11 school year. The timeline does not allow for procuring buses in time to impact the 2009-10 school year. (The board recently approved contract bus services for the 2009-10 school year.) A breakdown of the buses to procure is provided below:
Type of Bus
No. of Buses
8 + 4 wheel chair passenger
4
24 + 3 wheel chair passenger
6
21 passenger
7
48 passenger
18
84 passenger
30
Total
65

[Originator/Contact: Drew Rowlands, Executive Director, Auxiliary Services, Office of the Chief Financial Officer, 858.627.7122, drowlands@sandi.net]


Transportation Strategyfinal draft revisedTCW.pptTransportation Strategyfinal draft revisedTCW.pdftransportation analysis june 09 v 12prs61209.pdf

Created on 07/29/2009 at 07:17 PM by Sandy LaManna. Last update on 07/30/2009 by Josefina Viorato.