Lawrence schools, Independent Coach diverge on bus contract

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A 79-year-old relationship between the Independent Coach Corporation and the Lawrence School District appears to have been severed because of a financial dispute as the Inwood-based bus company declined to renew its yearly contract with the school district.

“ICC informed the school district that we would not be renewing our contract which is a year to year contract,” company President Nicholas Fabrizio wrote in a letter sent to nonpublic school leaders in response to a letter Lawrence schools sent to the same people. “This contract can be renewed every year if agreeable to both parties at the consumer price index which is published by the State Education Department. The last bid ICC had with the Lawrence School District was in 1986 and we have since mutually agreed with the district to extend the contract at CPI for the last 34 years.” The bus company and district have had a relationship since 1941, Fabrizio noted. CPI stands for the consumer price index, which is a measure of the average change over time in prices for goods and service.  

Fabrizio said that the contract between Independent and the district “contains many antiquated pricing terms that are below market value and too low to support our increased operational costs.” He also noted that the district is “currently paying approximately 40 to 50 percent below the current market prices and probably among the lowest on Long Island,” because of the no bid situation.

Lawrence schools spends roughly a little more than $10 million on transportation and transports nearly 6,000 students to roughly 180 schools with 700 bus routes between its public school and nonpublic students.
Contract payments are made on monthly installments. When schools across the state were closed, school districts opted out of the contracts and bus companies and the districts negotiated settlements.

Assistant Superintendent for Business and Operations Jeremy Feder said it is not fair to characterize Fabrizio’s assertions as accurate. “We believe this claim is surprising as the contract has been inflated by at least the consumer price index every year,” Feder said, adding that “based on my knowledge of the marketplace and the industry I don’t believe that to be the case,” in reference to the below market rate claim.

Michael Sperber, the risks manager at Independent Coach, said that the contracts go out to bid every year. However, because of the what he said is a “extremely community-minded” company and the longtime relationship between Independent Coach and Lawrence that rates were not increased as much as they could have been to cover the company’s expanding costs going back to 9-11, Hurricane Sandy and through the current coronavirus pandemic.

Sperber said that the company’s mechanics deemed essential workers have worked through the pandemic to maintain buses that have not been used since mid-March and help ensure that the fleet remains state certified and prepared when the buses need to roll again for school. Buses are now being used for summer programs.
Independent has contracts with several other school districts, including Hewlett-Woodmere, which has seen its transportation costs rise in consecutive budgets to more than $8 million for the coming school year. The district transports roughly 2,800 nonpublic and public school students, along with transportation to competition, district events, field strip and sports.

“We have had a long-standing relationship with this company which has served the district well,” said Interim Assistant Superintendent for Business Marie Donnelly. “We do periodically review transportation costs with other districts to ensure that the rates we are paying are consistent with what is being paid in the market. 

As for the current contract talks for a new agreement with Lawrence, Sperber said: “We were in discussion with the district. The district took a hard stand.”

Feder said that looking for a new transportation is not different from procuring any other goods or services. “We will follow the normal protocols in place,” he said. “We fully anticipate having transportation services in place by the time school resumes in the fall.”

Fabrizio, who has run the family-owned business for 36 years, said not renewing the Lawrence contract was a “ necessary business decision.” “ICC will continue to review and analyze all future bids for transportation as they become available,” he stated in the letter. “We plan to stay in business and transport students safely and efficiently for years to come.”