Spokane Public Schools hires new bus company

For the first time in decades, Spokane Public Schools is hiring a new bus company.

Laidlaw, which was purchased by First Student last year, will make way for Durham School Services for the 2008-2009 school year.

“Their price was $1 million less than First Student’s over five years,” said Mark Anderson, associate superintendent for school support services. The district has been paying fuel prices that came in higher than the contracted amount, so saving money is crucial. In addition, Durham will provide new school buses for every route, an incentive the district couldn’t ignore.

The district, which buses about 6,500 students per day on 160 routes, was not unhappy with the service provided by Laidlaw or First Student, Anderson said. “But when you’re in budget problems like we’ve got and you’re looking at $1 million and a company that has great recommendations,” you have to take it, he said. “We’re getting just as good a company, if not better.”

The companies that have held the bus contract are intertwined because many bought each other over the years, said First Student contract manager Verna Landy. She has been with various providers since 1979, when the provider was Associated Bus, and it switched to Dorsey Bus the following year. The year after that it went to ARA, which had purchased Associated Bus. In turn, ARA was purchased by Laidlaw in 1983. In 1993, the provider switched to Mayflower, which had absorbed Dorsey Bus. Mayflower was purchased by Laidlaw in 1995.

“That’s how this whole thing grew,” Landy said. “All these that we’re talking about ended up being purchased by Laidlaw.”

The reason Laidlaw had a lock on the contract for so many years lies in the bus facility at 1720 E. Fairview Ave. Every time Laidlaw’s contract was up for renewal, which requires an open bidding process, the company would lock up the lease on the bus barn past the contract end date. Any company wanting to bid on the contract had to factor in creating a new bus facility in a different location, which would raise their bid price.

“They were able to renew their lease and always have their lease extend out farther than our five-year contract,” said Jason Conley, director of transportation. “Some would say that was unfair; some would say that was good business practice.”

The difference this time lies in an anti-trust lawsuit filed when First Student proposed buying Laidlaw. Eleven states, including Washington, joined the suit. As part of the settlement, a clause required First Student to open its bus barn lease in Spokane to other bidders. “For the first time, we got competition,” said Anderson. “That was a key for this time.”

The new contract will cost the district $7.4 million per year for five years. Durham is expected to hire most of the drivers currently employed by First Student. Durham has already held a hiring event, and more are planned.

“We have a lot of good, well-trained, dedicated people,” Landy said. “They’ll be lucky to get them.”