District cuts ties with bus service

In the meantime, high school district employees will continue to have a job within the district through June, said Deputy Superintendent of Business Elizabeth McManus. They will try to be placed in other school agencies.

Trustees who spoke expressed difficulty in making the decision.

"The fact that we have a provider, not our current one, that is bidding to provide services at a fairly significant lower rate ... is fairly disappointing because change is always difficult and does pose some problems," said Trustee Jack Coyne. "On the other hand, we need to look at the financial impact of the district, care of the students and all the other aspects of it. ... It will be a very difficult decision to make that change. But I do think the financial side of it is fairly clear that the change is needed."

Elizabeth McManus, deputy superintendent of business for the San Mateo Union High School District, was disheartened by the decision.

"We're disappointed. At the end of the day, they needed to make a business decision," she said.

At the same time, McManus worried the numbers may be flawed because of the quick turnaround.

Trustee Mark Hudak agreed with Coyne saying a relationship with the high school district could not be continued if it means paying $500,000 annually that could be avoided.

"If the numbers were close, even if the high school district were slightly higher, I would've been more than willing to say the experience, the qualifications, the years of good service would tip the balance. ... Unfortunately the numbers are not close," he said.

Dan Dobbins, Executive Transportation Officer for the San Mateo Union High School District, urged the board to take a closer look. San Mateo Union currently uses seven of its own buses in providing services not including three special education routes, which First Student proposed to cover also. Dobbins believed the savings could be the cost of the extra buses necessary to complete the routes.

Chief Business Official Michaela Ochoa said such costs were included in the bid. The six-hour minimum increases the overall cost for San Mateo Union, she said.

The bids were different in scope. For example, the offer from the high school district provided everything but three special education routes. First Student, on the other hand, included those routes.

Over a five-year period, $2.5 million would be saved by using First Student rather than the high school district, said Ochoa.

Looking at hourly bus rates, the district estimated it would cost $1.6 million per year to have 20,428 hours through San Mateo Union compared to $1.36 million by First Student. San Mateo Union's proposal has a six-hour daily minimum meaning the daily per bus total is $477 compared to $391 for First Student, which does not have the same minimum requirement. Fuel fees are not included in either proposal as it is billed separately.

For Terrie Hillyer, special education dispatcher for the San Mateo Union High School District, the conversation was about more than numbers. It was about relationships employees have cultivated with local families.

"I'm a person. Parents daily are calling me, 'can I drop the student at another location?' My drivers know the area. [Parents] can drop them at a different location. I do that on a daily basis; drop a child at a different day care provider because a parent is battling cancer. Twenty years I've been in this profession," Hillyer said. "You have not heard from any of our parents with a lot of complaints. ... Our drivers are excellent,"

Board President Lory Lorimer Lawson stressed the problem was not a result of the service, which was excellent.

A need for a new contract came up when San Mateo-Foster City and the San Mateo Union High School District were at odds over the contract earlier this year.

Since 2003, the San Mateo-Foster City Elementary School District has contracted with the San Mateo Union High School District to provide bus services. The original contract was for one year, but was not revisited by either side. Rising costs without adjusting the agreement leaves the high school district essentially paying $670,000 to bus students not attending its schools. Covering those costs meant heard choices for San Mateo-Foster City.

Originally the problem was compounded since each district offered different financial estimates and proposed timelines potentially leaving a six month gap without bus services for San Mateo-Foster City.

The high school district proposed a 5 percent increase through December. In the meantime, San Mateo-Foster City could search for a new contract -- a process in which San Mateo Union always planned to participate. San Mateo Union suggested starting services in January -- which is the current plan.

In September, San Mateo-Foster City was instead in favor of starting a new contract in July and counter offered a 6 percent increase to cover services for the remaining school year.

The original agreement included using the San Mateo Union buses for 28,800 miles at $1.30 per mile, said McManus. Last year, 71,800 miles were put on the fleet. The contract also consists of housing and using 21 San Mateo-Foster City buses.

If the agreement continued through the current school year, McManus estimated the total expense for transportation -- including salaries, supplies, employee benefits, gas and mechanics -- will total $1.734 million. At 2003 rates, San Mateo-Foster City would pay $1.063 million -- a $671,000 shortage from the costs.

Both districts worked together to eliminate and combine bus routes as a cost savings. Those savings were minimal, however.

Heather Murtagh can be reached by e-mail: heather@smdailyjournal.com or by phone: (650) 344-5200 ext. 105.