Scranton school board directors approve lowering bus liability insurance

SCRANTON — A divided Scranton School Board agreed to lower the insurance of its bus vendor.

Directors voted 6-3 Monday on a motion lowering the umbrella liability insurance for Pete's Garage, the district's busing vendor, from $10 million to $5 million. The vendor will also provide shuttle service for students from West Scranton, Northeast and South Scranton intermediate schools.

Vice President Tara Yanni and Directors Catherine Fox and Katie Gilmartin voted no while Board President Ty Holmes and Directors Danielle Chesek, Tom Borthwick, Marie Merkel, Sean McAndrew and Bob Casey voted in favor of the changes.

Officials said there is no financial impact to the district.

Directors approved the change a month after the initial motion failed to pass. Several directors asked about the cost difference with lowering the liability amount.

Yanni said at Monday's meeting she appreciated that the Dunmore-based bus provider discussed the change and its financial impact with officials, adding Pete's Garage would save around $20,000 yearly.

"I'm thankful we have that information," she said.

McAndrew pointed out the maximum amount the district would be able to insure is up to $500,000 if it had its own buses.

Under the new amount, Pete's Garage's insurance carrier would be liable for up to $6 million in coverage, with no additional liability on the district.

Before voting against lowering the amount, Fox said she wanted to see the savings the shuttle service and lowering the liability amount would have to the district, adding she wished they were discussed more. Yanni agreed, stating officials should have gotten more time to talk about lowering the amount.

Gilmartin said she was concerned that there was no correspondence between the solicitor and the vendor regarding the cost.

Chesek said she was voting in favor of the motions to ensure student safety and help Pete's Garage stay afloat.