School board to take up busing contract

The next meeting of the School District of Rhinelander’s board of education is expected to include discussion/action on a new five-year rolling contract with Bowen’s Bus Service for transportation of students to and from school.

After two separate discussions regarding the contract, the district’s operations and strategic planning committee voted Monday to recommend the board accept Bowen’s proposal of a 20 percent increase in 2024-2025, 10 percent in 2025-2026 and the greater of CPI (Consumer Price Index) or 4 percent thereafter.

The committee first discussed the contract on April 8. Bowen’s proposal at that time was for a 32 percent increase. However, it was noted that the net increase would be 26 percent as, back in August 2022, the school board voted to pay an additional $10 per route so that Bowen’s could increase wages to retain and attract drivers during the COVID era.

The district’s business director, Bob Thom, explained that a request for bus bids was sent out in January to Lamers, Bowen’s, Schilleman, Tomahawk Bus, First Student and Lakeland Bus but Bowen’s was the only company to respond with a submission.

After the committee expressed concern about the size of the increase, district administration agreed to pursue additional negotiations with Bowen’s.

On May 6, the administration outlined an updated proposal. 

“After some discussions with Bowen’s, they are willing to accept a 20 percent increase for 2024-25 along with 10 percent the next year and 8 percent in year three,” superintendent Eric Burke explained in a memo to the committee. “They then propose that we tie their increase to CPI with a guarantee that it be no lower than 4 % percent per year. This will increase our cost by approximately $276,000 in 2024-24.”

In addition, the bus company has asked the district to guarantee pay for 170 days of transportation and roll the contract to a new five years at the end of each year, according to the memo.

“The number of days has become an issue due to the number of virtual days and snow days we have used,” the memo states. “They base their budget on being paid to transport all 170 days.”

During the April committee meeting, it was explained that the bus company is concerned the district could reduce in-person learning in favor of additional virtual days, a move that would have a negative impact on the company’s bottom line.

Burke responded by clarifying that the district has no plans to increase virtual days.

It was also noted that the rolling contract will allow the bus company to attain more favorable financing for new buses.

“Lenders want to see that they have a long-term contract and a guaranteed revenue stream,” the memo states.

“The challenging part for us, as well for them, is they’re our only option right now for busing,” Burke told the panel. “We don’t own our own bus company and right now we don’t have any other vendors.”

Bus company owners Jeff and Wendy Bowen were present for the discussion.

“I’ve lost money for the last two years,” Jeff Bowen told the panel. 

“If we didn’t have other business right now we’d have been out of business two years ago,” Wendy Bowen added.

“I’d be out of business, that’s the truth,” Jeff concurred,

Despite some misgivings, and a suggestion from board member Ron Lueneburg that the contract be forwarded to the board for discussion/consideration without a recommendation, the committee ultimately voted unanimously recommended the district accept Bowen’s newest proposal.

The school board is scheduled to meet at 6 p.m. Monday, May 20 in the Superior Diesel Advanced Learning Center.

Heather Schaefer may be reached at [email protected].