The audit findings on transportation services dominated the discussions, revealing serious compliance breaches by vendors contracted to transport special needs students. The audit showed an increase in students being transported—from 64 in fiscal year 2021 to 473 in 2024—without corresponding improvements in vendor compliance. Notably, 12 employees from two vendors, Everdriven and Med Aid, had not undergone required background screenings. One driver, in particular, was found with an active felony record. Additionally, it was discovered that many employees lacked the necessary identification badges, and nearly 30% were not in the required uniform.

The audit also raised financial concerns, as the cost of transportation services had escalated significantly, from $4.5 million for 120 students in FY22 to $13.7 million for 473 students in FY24. The board highlighted the issue of no-show or canceled trip fees, which amounted to $180,106 over three months in 2024, with some vendors charging exorbitant fees for these instances. The discrepancies in billing practices among vendors were noted.

Board discussions emphasized the necessity of enforcing compliance with contract terms, particularly in ensuring the safety of vulnerable students. Concerns about the presence of drivers without adequate background checks were noted, with a collective agreement on the urgency of improving oversight mechanisms. The board considered legal counsel to explore options for enforcing compliance and holding vendors accountable for contract violations.

The meeting also underscored the operational challenges faced by the district in managing contracts with transportation vendors. The ongoing national shortage of bus drivers has led to increased reliance on subcontracting, complicating efforts to ensure compliance and safety. The board recognized the need to maximize the use of district buses for student transportation to regain control over logistics and reduce dependency on external vendors.

In addition to transportation issues, the board scrutinized construction management practices, focusing on the compliance of contractors with insurance requirements and financial transparency. An audit revealed overbilling by a construction manager, Mos Associates, amounting to $177,000. Concerns were raised about the legitimacy of insurance providers and the practice of captive insurance, where companies create their own insurance entities. The board recommended enhancing verification processes and ensuring all insurance providers meet contractual requirements.

Discussions also touched on construction policy changes. The facilities department has been working with finance and legal counsel to align practices with new statutory requirements, particularly regarding the change order process. The board acknowledged the challenges in meeting the statutory 35-day requirement for reviewing and paying change orders, noting ongoing efforts to adjust policies accordingly.