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This article was published 16 year(s) and 6 month(s) ago

Peabody extends school bus contract one year

jamaral

January 15, 2009 by jamaral

PEABODY – The Peabody School Committee recently voted to maintain the bus transportation service of First Student for at least the next school year.The current three-year contract expires at the end of this school year, however, a clause in the agreement allows the city to extend that agreement for an additional two years with a maximum cost increase of 6 percent.The current cost per day, per bus is $290. Multiply that number by 180 school days, and the total comes to $52,200 per year, per bus. If First Student wishes to enact the 6 percent increase, it would bring the total transportation cost up to about $76,000, said School Business Manager Mike Musto.But, it could be worse, he said.”The conditions are not favorable,” he said, noting that other neighboring communities that have gone out to bid are receiving much higher numbers. “You’d assume you’d see prices come down, but there’s no longer any competition.”Musto said that if the School Committee decided to go against the contract extension and go out to bid, the lack of transportation companies in the area would give First Student free range to raise its prices.School Committee member Dave McGeney said he encourages other companies to come to Peabody and create competition.

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