Cliff Buchan
News Editor

Use of a private contractor for bus service in ISD 831 is not likely to result in lower transportation costs.

So said a private consultant last Thursday in a report to the school board. The board hired Thomas N. Watson of The Watson Consulting Group earlier this year for a review and cost analysis of how the district transports students to and from school.

In his report last week, Watson concluded it does not appear that use of a private carrier would provide busing services a lesser cost than the district is now expending on a per day basis.

ìItís just not in the cards,î Watson said in his report during the boardís monthly business meeting June 2.

The transportation review resulted from a request by board member Keith Dunham as part of the district budget review process. With the district engaged in a $2 million budget adjustment program, Dunham said a review of private versus a school-owned bus system was needed to see if costs could be saved.

In his report, Watson said there were some areas where system improvements could be made.

His review, however, found the district was doing a good job in keeping ride times at reasonable rates and attracting a solid percentage of ridership from the total student body. Based on comparable districts, ridership in ISD 831 is ìslightly higherî than might be expected, he said.

Total ridership here is near 60 percent each day, Watson said.

ìThatís a good number in my opinion,î Watson said. Ridership is higher than expected at secondary levels and normal for elementary schools, Watson said.

Watson said students in the morning average 41 minutes on the bus and spend 42 minutes on the bus in the afternoon.

Conclusions

Watson presented the following conclusions and recommendations last week, adding that his study will continue for possible system changes yet this fall and for the 2006-2007 school year.

ïThe number of bus routes is generous based on the number of students riding school buses, but does account for the favorable seat times.

ïThe district incurs a cost of about $28,700 per route per year (2003-2004) or about $165 per day which amount does not include any bus depreciation or replacement allowance.

ïWith a bus replacement cost allowance, the district cost per bus route is about $35,000, which amounts to about $201 a day. (For the same year, Watson said private carriers were providing the service to districts in the north and east metro for a daily cost ranging from $206 to $243 a day.)

In its efforts to improve finances in public transportation, Watson suggested he following:

ïThe cost of bus routes could be reduced to the minimum labor cost per day, based on the 2002-2004 contract, by reducing the deadhead time on the average route.

ïThe district could consider triple run routes in Forest Lake while maintaining two pass/run routes in the outer elementary areas as a way of increasing bus utilization and reducing the number of total routes per day. Such a plan will likely require a small change in school bell times.

ïThe district could reassess student eligibility by reducing secondary student eligibility by increasing their walking distance to schools.

Watson is also recommending the district establish a funded bus replacement designated account to finance a regular replacement program. With 114 total bus units, Watson said the turnover should be structured in 10 to 12 years, but the district needs to be diligent is establishing a structured replacement schedule.

Other points

Larry Martini, director of business affairs, agreed with many of Watsonís points and said the district would proceed with the ongoing system review and possibly take some steps for this fall.

ìThey take some time to implement,î Martini said of the broad-scale changes suggested by Watson. But Martini said four to six bus are under review for elimination this fall as a cost saving step.

A change in contract with bus drivers to reduce the basic route five hour minimum is a matter for collective bargaining, Martini said.

Board member Rob Rapheal said some in the public may get a negative perception when see buses on their streets that donít stop to pick up students. ìIt just doesnít look good,î he said.

Watson said that can happen when a residential area has mostly secondary students who find other ways to get to school.

Watson was retained by the district for a consulting fee not to exceed $14,250, Martini said. To date, the administrator said $7500 has been spent for Watsonís review.

The study updates a 10-year-old transportation review.

With a strong need to communicate to parents and open dialogue with drivers, Watson said it would be wide to hold off major changes until the fall of 2006.

The ISD 831 transportation system operates on an annual budget of just under $4 million with $2 million earmarked to employee salaries and fringe benefits.

On a statewide basis, Watson says about half of the districts operate school-owned bus fleets.

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