Peabody schools renew bus contract

PEABODY-The cost to transport Peabody children to and from school will increase by 3 percent for the 2009-2010 school calendar.The department currently pays $290 per bus per day. With 23 buses and 180 school days, the total cost comes to $1,200,600. Those totals will jump by approximately $8.70 per bus, creating a total increase of $36,018.The increase comes with the department?s one-year contract renewal with First Student Transportation Co., which School Committee members voted for in January. School Business Manager Mike Musto recommended the contract extension as the most cost-effective option given ever-changing fuel prices.The current 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. When Musto first presented the information before the Committee, it was not yet known just how First Student would implement the increase.Musto negotiated with representatives in February and settled on a 3 percent increase. Should the department wish to renew their contract again for a fifth year, the maximum increase could be no more than the remaining 3 percent allowed.?This is a great price,” said Musto. “No one else is getting less than this.”