Valley View Eyes Costs of Contracting Out Bus Services

The wheels on the bus go round and round … and will cost more than $12 million this school year.

During a board of education meeting Monday, the district’s transportation director, Derrick Berlin, presented RFP (request for pricing) proposals from several private companies who could ultimately provide transportation services for the district.

Valley View currently employs more than 250 staff members in its transportation department, which Berlin has estimated will cost the school district $12,384,616 in 2012-2013. The figure includes $3,324,720 for vehicle expenses, $8,593,660 for labor expenses and $466,236 for operational expenses.

In his report, Berlin stated the district has experienced a $3.6 million drop in state funding, including “significant reductions in the reimbursement to school districts for pupil transportation services.”

“It is the responsibility of the school district to periodically evaluate these costs to ensure fiscal responsibility, yet provide appropriate transportation services to our students,” Berlin wrote in the report.

As part of the cost evaluation, the district submitted RFP proposals to six contract providers, who were asked to submit proposals for a three-year term beginning July 1, 2012.

Contract providers submitted the following proposals for transportation services to Valley View in 2012-13: First Student Corporation of Naperville, $11,742,363; Durham School Services of Warrenville, $12,228,456; Illinois Central School Bus of Channahon, $16,052,828; and Cook-Illinois Corporation of Chicago Ridge: $16,206,451.

Septran Incorporated and Student Transportation of America/Positive Connections declined Valley View’s request for proposals.

Projecting out three years and factoring in estimated reimbursement claims to the Illinois State Board of Education, the district’s financial summary estimates net savings of $611,219 by contracting with Durham and $858,101 by hiring First Student to provide transportation services for Valley View.                         

Where do we go from here?

As school officials continue to evaluate ways in which to cut Valley View’s expenses, the transportation department is just one part of the budget that is currently under scrutiny.

According to the district’s RFP Information Report regarding transportation, available in PowerPoint form by following this link, the district will:

• Meet with union representatives to negotiate the impact of the RFP;
• Continue to evaluate the contract providers’ proposals;
• Conduct contract provider interviews and reference evaluations; and
• Provide the school board with a final recommendation by Dec. 12.

Editor's Note: An earlier version of this story incorrectly stated the district could save $850,000 over three years; the $850,000 is actually the estimated annual savings. We apologize for the error.