Daniel Boone School Board ousts longtime bus service providers

The district OKs contract with western Pa.-based Krise Transportation Inc. starting in July

The Daniel Boone School Board has voted 6-3 to oust local student bus service providers Klein Transportation and New Rhoads Transportation in favor of a sevenyear contract with Krise Transportation Inc. of western Pennsylvania.

Klein and New Rhoads, both of Amity Township, have handled student transport since around the time of the district’s founding in the 1950s, officials said.

Board members Asheli Godfrey, Kevin Stroble, Bucky Scott, Tanya Bell, Russell Jirik and President Julia Olafson voted yes. Beverly Albright, Jennifer Leone and Christen Thompson voted no.

The decision came down to cost, Olafson said in comments to the Reading Eagle after the meeting.

“Daniel Boone was not unhappy with our service from New Rhoads and Klein, but we simply went with the least expensive bid,” Olafson said.

Superintendent Brett Cooper said the decision was based on cost estimates, since the exact cost of the contract with Krise, based in Jefferson County, is unclear and will vary based on factors like mileage traveled, fuel costs and number of buses needed.

Officials said a rough estimate of the total amount saved over seven years could be around $1 million.

In comments following the meeting, Albright said she believes any cost savings promised by Krise could be overshadowed by a myriad of potential problems.

“I’m most concerned about the ability of Krise to obtain buses and drivers, where buses and fuel will be stored and how reliable they will be getting our children to and from school on time,” Albright said. “I have a lot of questions and doubts as to how this will be accomplished in such a short time.”

Leone said that when factoring in multiple pricing options and the local tax revenue from Klein and New Rhoads, it wasn’t apparent that the contract with Krise would save the district any money.

“Krise is not local and we will not get any tax revenue from them,” Leone said.

Tim Krise, founder and president of Krise Transportation, on Thursday said the company’s procedure is never to make promises to any district regarding the exact number of bus drivers the company can hire.

“In this day and age, there’s driver shortages everywhere. Every day that’s a challenge. What we tell the school district is we give it our best foot forward,” Krise said. “To guarantee that every certain bus will be covered on the first day, we never do that.”

Krise said the company hires drivers from within the district, and is looking to rent or purchase a lot for bus storage within the district.

He said Krise has always set up locally in the 13 districts it currently serves, not only to save on fuel, but for the sake of convenience, and in case of an emergency evacuation.

“(Hiring local drivers) is very important to us. It’s not advantageous for them to drive an hour or 30 minutes to get their bus,” Krise said.

Krise noted that the company does also employ traveling bus drivers, some of whom are from Jefferson County, to fill in during driver shortages or emergencies.

Krise, founded in 2016, employs a fleet of about 1,000 buses and vans and offers service in locations from Philadelphia to Erie, the company president said.

The vote took place at a special meeting May 12. It was originally scheduled for May 9 but was postponed to allow more time for advertising the vote.

Support for local companies

About 15 district residents, including representatives and employees of Klein and New Rhoads, spoke at the meeting in favor of maintaining the current bus service.

Some residents agreed with Leone’s assessment that it was unclear whether the contract with Krise would actually produce significant savings.

“I’m a graduate from (Daniel Boone), we love Rhoads and Klein’s,” said resident Christine Flaherty. “We trust Rhoads and Klein’s. My kids love them, they’re reliable, they’re easygoing, they get to you no issue.”

Flaherty and others were tearful when voicing support for the two local bus companies and their comments were met with applause from residents.

Steve Rhoads, owner of New Rhoads Transportation, expressed disappointment in a press release a day after the meeting.

“We are sad to see this legacy end … We live in the community, pay taxes in the community and are glad to have been able to have served the community for so many years,” Rhoads said.

Some residents at the meeting wondered whether a company not local to the district would feel obliged to offer the same quality of service.

Others at the meeting also questioned where Krise, as an out-of-county company, will store their buses and whether Krise would be able to hire and train enough drivers to service the district.

At the meeting, district board members didn’t seem to know what Krise would later in the week tell the Reading Eagle.

“These are unknowns that (the district) as a prospective client needs to be concerned about,” Olafson said at the meeting. “But (Krise) has assured the district that they can deliver.”

‘Only time will tell’

Olafson said the caveat to Krise’s assurance was that the first 2 ½ months of the contract would be considered a startup period, where Krise would not be in breach of contract for being short on drivers.

The uncertainties surrounding the contract with Krise are outweighed by the financial risk of another contract with Klein and New Rhoads, Olafson said.

She said the contracts presented by New Rhoads and Klein included annual price increases pegged to the consumer price index and not fixed, as well as other expenses missing in the Krise contract.

In contrast, Olafson said Krise’s contract includes a flat annual increase of 3.5% that wouldn’t take effect until the agreement’s third year.

Thompson said that although she voted against the proposal in support of local businesses, she does feel the board made the right decision.

“I was concerned that local people would lose jobs. At the same token, the savings with Krise are substantial,” Thompson said in comments to the Eagle after the meeting. “Hopefully, we made the right decision, but only time will tell.”

The contract with Krise starts July 1 and runs through June 30, 2029.

Budgetary matters

In other business, the board approved a $66 million 2022-23 preliminary budget that includes the possibility of a tax increase up to the state maximum of 4.5%.

Cooper said the final budget will not necessarily include a maximum tax increase, or any tax increase.

“We haven’t had a max tax increase since before my time as superintendent,” Cooper said. “It’s been quite a significant number of years since we’ve voted to go to the max.”

Cooper noted the board’s standard operating procedure has always been to approve the possibility of a maximum increase with the preliminary budget.

As to whether a maximum increase or any tax increase is likely in the final budget, Cooper provided no comment, other than to say any statement on the matter would be preliminary.

A state maximum tax rate increase of 1.46 mills — for a total millage of 33.84 — would increase real estate bills by $146 per $100,000 pf property value.

The board approved a tax increase of 2.5% last year, which brought the millage up 0.8 mills — an increase of $80 for a $100,000 property — to the current rate of 32.38.

A meeting to approve the final budget is scheduled for June 13 at 7:30 p.m.