The transportation committee met again last week to look at all options for our transportation. The committee did not feel that it was financially beneficial to lease a bus for one year, based on the options available. After further discussing with Central States we came up with the following plan:
*Lease two for three years.
*Purchase the third bus by borrowing money from the working cash fund.  This scenario is more beneficial than leasing all three.  We will discuss the finances further at the meeting.  Central States has a used 2018 bus with approximately 6000 miles on it.  The one year warrant will expire this fall.  We have the option of purchasing an extended warranty for two additional years at a cost of $900.  The cost of the bus is $84,000.  Our representative has agreed to a price of $83,000 or $84,000 with the extended two year warranty.  This bus is also a 77 passenger. 

Which leads to a third discussion.  Currently, one bus is over on miles (all of them will be close).  The current bus is over by 2500 miles.  Our representative has agreed to wave this charge, if we send the bus back early and purchase the other bus.  The overage cost per bus is .35 per mile.  If we go over additional miles we will be charged beyond the 2500. 

I would recommend leasing two for three years and purchasing the used bus at a cost of $83,000.  I would recommend we purchase the bus immediately and return the current bus we have leased.  The lease payments would be 14,355.21.  Please see attached sheets for further information.