LASD bus contract has gas clause
Lehighton Area School District’s board of directors approved a one-year contract Monday night with its bus company, George’s Transportation, which calls for a slight increase in single and double bus runs, and a fuel escalator clause.
According to the contract, which passed 8-1, Lehighton’s base amount for transportation in 2022-23 will be $323 per day per bus for a double run and $256.05 per day for a single run. That is up from $313.59 and $248.59 respectively in 2021-22.
Also included in the contract is a fuel escalation clause that states if the price of diesel fuel is above $3.809 per gallon, then George’s will charge Lehighton the difference between the actual cost and $3.809 per gallon. By the same token, if the price of diesel fuel falls below $2.809 per gallon, the district would get a credit.
“Have we tried to negotiate the $3.809 cap given the current price of diesel?” director Brian Shaner, who cast the lone dissenting vote, asked Lehighton’s administration. “I understand George’s has worked with us in the past and been generous throughout the pandemic, but it’s my job to at least try and negotiate in the community’s best interest when it comes to our tax dollars.”
LASD Business Administrator Ed Rarick said Monday there was no discussion about altering the rate for fuel.
“When COVID-19 hit, there were a lot of things Leon (George) didn’t charge us for,” director Barbara Bowes said. “I can tell he cares about this community and its kids just by giving everything he did give when he knew we were in financial trouble. I would have liked to see the rate for fuel and see if it could have been changed. Unfortunately, we didn’t discuss this sooner and maybe we could have instructed administration to see what it could do.”
Bowes said the district has enough money budgeted to cover the contract, which as a major concern for her.
“I don’t know where the price of fuel is going,” she said. “I can only hope it’s coming down.”
Fellow board member Nathan Foeller said he was also in favor of the contract, noting that if the top end of the fuel escalator was higher, George’s would likely have to raise the amounts in the rest of the deal.
“If I have to guess the price of materials when I’m doing a contract, the more risk I put off, the more competitive and generous I can be on that contract so I think that’s where Leon is coming from here,” Foeller said.
Lehighton also agreed to pay George’s $100,000 in August for start-up fees. On each of 10 monthly bills, George’s will then deduct $10,000 until the district recoups the $100,000.
Normally, Rarick said, George’s begins the year with a month of bus runs before they send a bill to the district.
“They incur the cost of paying for drivers and fuel before we pay them, so it’s common in other districts for this type of pre-payment that then gets credited back to us in future bills. George’s has the same type of arrangement in Palmerton and asked if we could do that as well.”
Field trip and athletic event bus rates will be increased by 3%, up to a maximum of $14, in 2022-23.
For example, an athletic team’s trip to Blue Mountain High School would have cost $232 in 2021-22. That same trip will cost $238 in 2022-23.